REPORT TO THE CITY COUNCIL
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: Randall W. Morrison, PE, Assistant Director
Public Works Department, Engineering Division
SCOTT TYLER, PE, Public Works Manager
Public Works Department, Engineering Division
SUBJECT
Title
Actions pertaining to the Clinton Avenue and Valentine Avenue Traffic Signal and Storm Drain Project - Bid File No. 3751 (Council Districts 3):
1. Adopt a finding of Categorical Exemption per staff determination, pursuant to Sections 15301/Class 1, 15303/Class 3, and 15304/Class 4 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve an Inter-fund Loan Agreement between the Developer Cash-in-Lieu Improvements Funds and the Cash-in-Lieu Loan Fund, pursuant to Article VI of the City of Fresno Reserve Management Act and Article IV of the Taxpayer Protection Act, providing a $277,800 loan
3. Approve Interagency Agreement with the Fresno Metropolitan Flood Control District for Design and Construction of Stormwater Master Plan Facilities in Clinton Avenue, in the amount of $271,501
4. Award a construction contract in the amount of $1,334,053 to Emmett's Excavation, Inc. of Clovis, California
Body
RECOMMENDATION
Staff recommends that the City Council adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1, 15303/Class 3, and 15304/Class 4 of the California Environmental Quality Act (CEQA) guidelines, approve an Inter-fund Loan Agreement pursuant to Article VI of the City of Fresno Reserve Management Act and Article IV of the Taxpayer Protection Act, to provide a loan in the amount of $277,800 from the Developer Cash-in-Lieu Improvements Fund to the Cash-in-Lieu Loan Fund, approve an Interagency Agreement with the Fresno Metropolitan Flood Control District (FMFCD) for Design and Construction of Stormwater Master Plan Facilities, consisting of approximately 958 linear feet of storm drain pipe in Clinton Avenue for the reimbursable amount of $271,501, and award a construction contract to Emmett's Excavation, Inc., in the amount of $1,334,053 as the lowest responsive and responsible bidder, and authorize the Public Works Director or designee to sign the construction contract and agreements on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The City of Fresno seeks to install a traffic signal at the intersection of Clinton Avenue and Valentine Avenue. The existing intersection is currently a four-way stop. The scope of work includes installation of sidewalk, curb and gutter, ADA curb ramps, new traffic signal poles and equipment for left turn phasing, and the installation of storm drain pipe along Clinton Avenue from Valentine Avenue to approximately 1,000 feet west of Valentine Avenue. This project will enhance the vehicle and pedestrian operations at this intersection and will facilitate pedestrian traffic to and from nearby Hanh Phan Tilley Elementary School. The traffic signal improvements are funded with a Federal Congestion Mitigation and Air Quality Program (CMAQ) grant with local match funding from Local Developer Impact Fees (New Growth & Traffic Signal/Mitigation Impact Fee). The Storm Drain Facilities project is locally funded with Cash in Lieu Inter-Fund Loan and an FMFCD reimbursement agreement.
BACKGROUND
The City of Fresno Public Works Department identified a need for a traffic signal at the intersection of Clinton Avenue and Valentine Avenue. The City received a CMAQ grant in 2012 and began the design phase of the project in 2013. The project had many design elements to overcome with relocating overhead utilities and rights-of-way acquisition. The west half of the intersection is located within the County of Fresno and near the completion of the design work, the county and FMFCD identified the need for storm drain facilities to alleviate existing flooding issues from dry wells that were no longer peculating storm water runoff. The Developer Cash-in-Lieu Funds were identified as an immediate funding source to provide the additional funding needed to add the needed storm drainage facilities, while the City waits for costs to be reimbursed by FMFCD for master planned storm drain facilities through the FMFCD Reimbursement Agreement.
The Developer Cash-in-Lieu Fund holds cash payments collected pursuant to the Fresno Municipal Code (FMC) provisions which authorize the Public Works Director to receive cash payments in lieu of performing required improvements in situations where it is not feasible to perform the construction as stipulated in the Conditions of Approval at the present time. Cash-in-lieu funds are a common practice in California and the City of Fresno’s account is included in the Annual Impact Fee Report, as required under AB1600. Most developers construct their improvements with their subdivision or prior to occupancy of commercial and industrial developments, however, certain improvements may be dependent upon other adjacent developments or capital projects and are therefore not feasible to construct independently. When the anticipated time for deferral is only a few years these improvements are typically secured by a bond but when the anticipated duration is several years or longer, the FMC provides the ability for the City to accept a cash payment for the estimated value of those improvements and takes on the responsibility to construct those specific improvements at such a time as the improvements make sense or are otherwise feasible.
The actual cash-in-lieu funds can only be utilized for the specific projects for which the dollars were collected, however, as with Urban Growth Management (UGM) or impact funds, an inter-fund loan is possible to allow the dollars to be used for other vital capital improvements, such as this project. Staff does not anticipate the Developer Cash-in-Lieu Fund needing the $277,800 being requested within the next five years and recommends it be loaned for the construction of the Clinton Avenue FMFCD master planned storm drain facilities.
The traffic signal project is federally funded with a Congestion Mitigation and Air Quality Program (CMAQ) grant and the City of Fresno received construction authorization and approval of the project plans, specifications & estimates from Caltrans prior to the City Council adopting the Community Workforce Agreement (City PLA) for Public Works Projects. The Project was also publicly bid prior to the effective date of the City PLA. Staff recommends that Council award the construction contract to Emmett’s Excavation, Inc. even though the contract does not include the City PLA. In addition, staff consulted with the building trades who are party to the City PLA, and they concurred with staff’s recommendation to award the construction contract. If Council decides to reject the contract due to the City PLA requirements, there will be a delay of approximately 6 to 9 months, due to the need to get approval from Caltrans and Federal Highway Administration (FHWA) on the use of the City PLA. This delay not only delays the beneficial use of this much needed public improvement, but also may put the Project funds in jeopardy due to the time lapse between authorization of construction funding and award of a contract.
The Notice Inviting Bids was advertised and published in the Business Journal on October 1, 2021 and posted on the City’s website. Fourteen (14) building exchanges received the Notice Inviting Bids. The specifications were distributed to twenty-eight (28) prospective bidders. Three (3) sealed bid proposals were received and opened in a public bid opening on January 11, 2022, with the bids ranging from $1,334,053 to $1,599,636. Emmett's Excavation, Inc., is deemed the lowest responsive and responsible bidder. The apparent low bid price was 16% above the Engineer's Estimate. Bids were set to expire 64 days after the bid opening on March 16, 2022, however all bidders have agreed to extend their bid to March 31, 2022, allowing for an award within the time extension.
Staff is recommending the award of a construction contract to Emmett's Excavation, Inc., in the amount of $1,334,053 to construct the Clinton and Valentine Traffic Signal and Storm Drain Facilities Project and to authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno. The City Attorney’s office has reviewed and approved to form. A standardized agreement has been used in accordance with Administrative Order 4-4. The City Attorney’s Office has reviewed and approved the Interagency Agreement with the Fresno Metropolitan Flood Control District for Design and Construction of Stormwater Master Plan Facilities as to form.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in CEQA Guidelines, Sections 15301/Class 1, 15303/Class 3 and 15304/Class 4 because the project consists of reconstruction of ADA ramps and installation of traffic signal facilities, installing storm drain facilities to connect to existing storm drain facilities, crosswalks, signage and pavement striping without increasing capacity, relocating any existing structures, facilities or removal of any healthy mature and scenic trees. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference was not implemented for this project because this contract is federally funded.
FISCAL IMPACT
The Clinton Avenue and Valentine Avenue Traffic Signal Project is located in Council District 3. The overall cost of the project is $1,672,000 and is federally funded by Congestion Mitigation and Air Quality Program (CMAQ) grant. Local match is funded with Local Developer Impact Fees (New Growth & Traffic Signal/Mitigation Impact Fee). The storm drain facilities project is locally funded with Cash-in-Lieu Inter-fund Loan and a FMFCD Reimbursement Agreement. Of the overall budget of the project, $1,334,053 will be used for the construction contract award. Additional appropriations for the remaining project costs will be included in the City’s fiscal year 2023 budget. The project will have no impact to the General Fund.
Attachments:
Environmental Assessment No. EA-PW-00944
Interfund Loan Agreement
FMFCD Agreement 2053(g)-al-41.al-42
Bid Evaluation
Fiscal Impact Statement
Standardized Contract
Vicinity Map