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HomeMy WebLinkAbout2013/05/28 Item 05CITY COUNCIL AGENDA STATEMENT ,,,~.'-~ clTr of _~ CHUTAVISTA 5/28/13, Item ~ ITEM TITLE: SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REDUCING THE STL306 BUDGET BY $60,995, THE STL342 BUDGET BY $16,031, THE STL350 BUDGET BY $51,009 AND THE STL380 BUDGET BY $21,706 AND APPRGPRIATING THE EQUIVALENT TOTAL AMOUNT OF $]49,741 TO THE STL379 BUDGET DIRECTOR OF PUBLIC WORKS ASSISTANT DIREC OF ENGINEERING ~~""` CITY MANAGER ASSISTANT CITY ANAGER~ 4/STHS VOTE: YES ® NO ^ SUMMARY In 2006, the City received approval for a Federal Department of Housing and Urban Development (HUD) Section 108 Loan to install public street improvements in the Castle Parl< Neighborhood Area. These funds must be expended by Jwre 2013 or the balance returned to HUD. The last a~~d final street improvement projects within Alpine and Twin Oaks Avenues, between Emerson and Oxford Streets (STL379 & STL386), are nearly complete under a contract awarded to Tri-Group Construction, Ina (Tri-Group) by Resolution No. 2012-196. Staff has determined that, upon completion of all work by Tri-Group, reducing the STL306 budget by $60,995, the STL342 budget by $16,031, the STL350 budget by $51,009 and the STL380 budget by $21,706 and appropriating the equivalent total amow~t of $149,741to the STL379 budget, all Community Development Block Grant (CDBG) Section 108 Loan funds will be expended by .Tune 30, 2013. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the proposed street reconstruction and improvements involve negligible or no expansion of an existing use. Thus, no further CEQA environmental review is required. Additionally, because the proposed project will be utilizing Federal CDBG funds, the Development Services Dn~ector has also reviewed the project proposal for compliance with the National Environmental Policy Act (NEPA) as implemented by the U.S. Department of Housing 5-1 5/28/13, Item '~ Page 2 of 2 and Urban Development (HUD) Environmental Guidelines. The Development Services Director has determined that the project proposal qualifies for a previously certified Categorical Exclusion (subject to 58.5) pursuant to Code of Federal Regulations (CFR) Title 24, Section 58.35(a). Thus, no further NEPA environmental review or determination is required RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In September of 2006, HUD approved a $9.5 million loan (CDBG Section 108 Loan) for needed street improvements in the Castle Park Neighborhood in Western Chula Vista. These funds must be expended by June 2013 or returned to HUD. All but two of the street improvement projects, STL379 and STL386, in the Castle Park Neighborhood are complete and four of the completed projects, STL306, STL342, STL350, and STL380, have remaining balances totaling $149,741. STL379 is currently underfunded and the $149,741 will be sufficient to complete STL379 and to assure complete expenditure of the CDBG Section 108 Loan. Staff is requesting that the available CDBG Section 108 Loan balances from four of the completed Castle Park Neighborhood Area Projects be reduced and that the equivalent total amount be appropriated to the STL379 budget, the current and final CDBG Section 108 Loan Project. The proposed resolution, if approved, would reduce the STL306 budget by $60,995, the STL342 budget by $16,031, the STL350 budget by $51,009 and the STL380 budget by $21,706 and appropriate the equivalent total amount to the STL379. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, nor has staff been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT The proposed reduction in Section 108 Loan balances from the STL306 budget by $60,995, the STL342 budget by $16,031, the STL350 budget by $51;009 and the STL380 budget by $21,706 and appropriating the equivalent total an2ount to the STL379 budget will ensure that the remaining CDBG Section 108 Loan funds are expended by June 3Q 2013. There is no impact to the General Fund. ONGOING FISCAL IMPACT None. Prepared hy: Boushra Salem, P.E., Senior Civil Engineer, Public N~orks Depc~rrment J: Engineer AGh,'Nlld:('AS?0/3 Oi-:fi-/.~ Sec~iorr /Ofi Kccnnoiliorinu rui3. Jnc 5-2 RESOLUTION NO. 2013- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REDUCING THE STL306 BUDGET BY $60,995, THE STL342 BUDGET BY $16,031, THE STL350 BUDGET BY $51,009 AND THE STL380 BUDGET BY $21,706 AND APPROPRIATING THE EQUIVALENT TOTAL AMOUNT OF $149,741 TO THE STL379 BUDGET WHEREAS, in 2006, the City received approval for a Federal Department of Housing and Urban Development (HUD) Section 108 Loan to install public street improvements in the Castle Park Neighborhood Area. These funds must be expended by June 2013 or the balance returned to HUD; and, WHEREAS, the last and final street improvement projects within Alpine and Twin Oaks Avenues, between Emerson and Oxford Streets (STL379 & STL386), are nearly complete under a contract awarded to Tri-Group Construction, Ina (Tri-Group) by Resolution No. 2012-196; and WHEREAS, staff is requesting that the available Section 108 Loan balances from four of the completed Castle Park Neighborhood Area Projects be reduced and that the equivalent total amount be appropriated to the STL379 budget, the current and final CDBG Section 108 Loan Project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby reduce the STL306 budget by $60,995, the .STL342 Budget by $16,031, the STL350 Budget by $51,009 and the STL380 Budget by $21,706 and ap ropriate the equivalent total amount of $149,741 to the STL379 Budget. _ - / Presented by Approv s~to fo_ ~.__ r"_ Richard A. Hopkins /(~ en1~R~ Goog Director of Public Works City Attorney J:\Attorney\FINAL RESOS\2013\OS 28 13\Section 108 Reconciliation dm edits 5-21 Final.doc 5/21/2013 3:01 PM 5-3