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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 // / / , , EXHIBITS Agreement~ Resolution~ Ordinance Plat Notification List Other ENVIRONMENTAL DOCUMENT: Attached Submitted on .~ I I " ," 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. KJG:fpw {O's67 OJ -..g t:, III paleo e!UJoJ!leJ '8lSI,'I ElmlJ JO IPunoJ Al!:) eii, Aq ,.. R-rv~c;;fo , '" i , I " ",