MEETING DATE:
JUNE 25, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9302 - AUTHORIZING A BUDGET AMENDMENT TO THE FISCAL YEAR 2023-24 BUDGET FOR THE APPROPRIATION OF ADDITIONAL FUNDS AND DELEGATING TO THE CITY MANAGER THE AUTHORITY TO EXECUTE FINAL CLOSE-OUT DOCUMENTATION, CONTRACT AMENDMENTS, ALONG WITH AUTHORITY TO MODIFY THE BUDGETS ASSOCIATED WITH THE CREEK INFRASTRUCTURE PROJECT (CIP# 88263, 88264, 88265, 88505, 88507, 88529) WITHIN COUNCIL APPROVED APPROPRIATIONS.
Body
Recommendation
Recommendation
APPROVE resolution authorizing the appropriations of additional funds and delegating certain authority to the City Manager.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Good Governance
Executive Summary
The Creek Infrastructure Project is an expansive project consisting of six individual projects packaged into a single construction contract. The projects are funded with 13 sources including both state and federal grants. With the Creek Infrastructure Project (Project) nearing completion numerous post-construction activities will need to be completed, new contracts put in place relating to post-construction activities, close-out activities and audits performed and fiscal close-out of the various projects that comprise the overall larger Project. The proposed action would appropriate additional funds to address post-construction activities.
Additionally, the proposed action would delegate to the City Manager the authority to execute amendments to existing contracts for extension of staff for the Project for both close-out activities and post-construction support. Authorization is also requested to allow the City Manager authority to manage the six component projects of the Project as a single capital project which will assist in final financial audits and close-out activities. Management of the six component projects will be limited to appropriations approved by the City Council.
Discussion
The City currently is utilizing a variety of consultants to assist in construction management, oversight of environmental permitting and management of the Project components as extension of staff services. Delays to the project have necessitated the ongoing use of these services. In order to ensure the City can complete final close-out and audit of the Project staff is requesting the City Council approve amendments to the construction management contract with 4Leaf Inc., the environmental monitoring contract with Dudek, and the extension of staff contract with Villa Civil for a cumulative amount not to exceed $2M. It is estimated that construction Management Services will be approximately $1.2M, environmental monitoring and extension of staff services will be approximately $400k each.
The Project has many components and has been largely managed as a single project for the duration of the Project’s design and construction phases. Current fiscal policy allows the City Manager to execute changes to any individual capital project budget within Council approved appropriations. However, due to the complexity of the funding the Project has been separated into six separate projects within the budget. Staff recommends that as part of this action the City Council grant the City Manager Authority to manage the six capital projects (CIP# 88263, 88264, 88265, 88505, 88507, and 88529) as a single project in manner consistent with current fiscal policy. This would allow the City Manager to make adjustments to those six projects facilitating final close-out, management of encumbrances, and adjustments between the components of the Project to facilitate execution of post-construction activities.
Staff has reviewed the financial needs of the Project as it moves into the post-construction phase. The post-construction phase will include a variety of both short and long-term activities including audits by other agencies, short-term maintenance of the park, long-term (5-year) maintenance of the habitat, long-term water quality and biological monitoring, etc. The majority of long-term expenses over the next 5+ years are governed by the environmental permits for the Project. Additional requirements extend well beyond the 5-year horizon estimated as part of the proposed appropriations and will be addressed through operational budgets. Staff recommends an additional $6.1M be appropriated into various components of the Project as shown within the attached budget sheets to address these upcoming expenses which would also include the afore mentioned consulting amendments. This proposed budget amendment would bring the Project’s overall budget to approximately $121M, an increase from the current overall Project budget at approximately $114M. At time of bid the overall project budget was programmed at $104M.
Environmental Review
The activity performed under this action is not a “Project” as defined under Section 15378 of the CEQA Guidelines; and, is therefore not subject to environmental review pursuant to CEQA Guidelines section 15060(c)(3).
Fiscal Impact
The proposed action will appropriate $6.1M into the Creek Infrastructure Project budget within Project No’s 88263, 88264, 88265, and 88529. The funds will be appropriated from Transnet (Fund 404) and Public Facility Fees (Fund 402), as shown in the attached budget sheets. Total budget appropriations from Transnet is $3.8M and appropriations form Public Facilities Fees is $2.3M.
Attachment(s)
Resolution 2024-9302
Budget Sheets
Submitted by: Isaac Etchamendy, City Engineer
Approved by: Michelle Bender, City Manager