HomeMy WebLinkAboutAgenda Statement 1980/10/28 Item 9
COUNCIL AGENDA STATEMENT
Item
Meeting Date 10-28-80
9
ITEM TITLE: Resolution )b301Approving Supplemental Agreement No.2
to existing Local Agency-State Agreement No. 11-5203
cover ing Federal-Aid Proj ec ts (Third Avenue proj ect - "G" to "K" Street)
SUBMITTED BY: Ci ty Eng ineer 9fi/' (4/5ths Vote: Yes_ Nd(_)
The City Council on December 19, 1978, by resolution 9421, approved a
master Local Agency-State Agreement for Federal-Aid projects, Agreement
No. 11-5203.
Article II, paragraph 2, of the master agreement provides for
Supplemental Local Agency-State Agreement to designate the Federal
funds requested, matching funds to be provided by the State and City.
Supplemental Agreement No.2 has been submitted to the City Engineer
for the Third Avenue Widening project and for Council approval.
Therefore, it is my
RECOMMENDATION: That Council:
1. Approve Supplemental Agreement No.2 to the existing Local
Agency-State Agreement No. 11-503.
Authorize expenditure of $109,735 for deposit to State prior
to award of contract by City. ~ '/lIJ
BOARD/COMMISSION RECOMMENDATION: Not applicable. ~() ~ 31fl>-]
11- / (}-tf-'O
2.
DISCUSSION:
The California Department of Transportation has prepared Supplemental
Agreement No.2 which.sets forth the funding for the Third Avenue
Widening project from "G" to "K" Street in Chula Vista.
Supplemental Agreement No.2 allocates $1,474,405 in Federal funds and
$205,300 in State matching funds (169.1).
A detailed cost estimate prepared subsequent to receipt of bids
estimates that the total cost of project is $1,966,200 which includes
contingencies and engineering: $1,952,800 of this amount is eligible
for remibursement by F.A.U. or State 169.1 funds. If additional funds
~ became available, it is possible for the City to receive reimbursement
greater than stated in the Supplemental Agreement No.2 ($1,474,405
F.A. U., $205,300 (169.1)).
Supplemental Agreement No.2 covers two major items of interest.
1. It sets forth the manner in which the Third Avenue Widening
project is funded by Federal, State and City funds. The City
.is obligated to pick up 100% of the cost of any non~
participating items and 100% of the cost of any participating
items which exceed the amount of Federal and State funds
available. The City's estimated share of the construction
cost which is not reimbursable is $109,735.
Form A-113 (Rev. 11/79)
( D 307
Continued
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, EXHIBITS
Agreement~ Resolution~ Ordinance Plat
Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached Submitted on
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Page 2, Item 9
Meeting Date . 10-28-80
2. It approves the City's request to use "Caltrans Local Agency
Automated Pay System" (LAAPS).
Under LAAPS, the State makes the contract progress payments
directly to .the Contractor. 'TQe City, therefore, only has to
deposit.with the'State its estimated share of the construction
cost prior to ~ward of contract ($109,735). If this deposit
is not'sufficient, the City will have to make a supplemental
deposit. The City will be refunded upon completion of the
project any funds in excess of.the City's actual share.
The advantage of LAAPS is that!the City does not have to front
the funds for the entire project cost. The Contractor is paid
directl'y"by the 'State' from . th'e- F.A. U. and State 169.1 funds.
In the past, the City has made the payment to the Contractor
and then requested reimbursement from the State.
Execution of this supplemental agreement by the City and State starts
expenditure authorization of funds for the Third Avenue project. The
staff has reviewed the supplement and finds it to be satisfactory.
Council approvai of Supplement Agreement No.2 is required to receive
Federal and State matching funds for the project. It is also required
prior to award of the Third Avenue Widening construction contract.
Staff expects to be submitting an item to the Council awarding the
contract for Third Avenue within the next 21 days as soon as
authorization is received from FHWA. Bids were received on September
24, 1980. The low bid was $1,667,805.05.
The normal funding split for an FAU project is 86% Federal and 14%
City. The State last year had a special funding program to heip local
agencies fund FAU projects. The program had limited funding which were
to be granted on a priority basis. Engineering staff worked overtime
on many days to meet the deadline. As a result we were granted extra
State monies in excess of $200,000 which greatly reduced the City's
contribution toward the project.
FINANCIAL STATEMENT:
Funds budgeted and available for Third Avenue Widening project:
Account No. 600-6000-RS15
Account No. 250-2501-GT84
$ $282,615.64
806,126.89
TOTAL
$1,:088, 74~. 53
City estimated share of construction
cost - deposit to State
$109,735.00
Balance of unencumbered funds
'$979,007.53
FISCAL IMPACT: If this agreement is not approved, the City
stands to lose $205,300 in State 169.1 funds and increases
the risk of not receiving the $1,474,405 in Federal F.A.U. funds.
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