REPORT TO THE CITY COUNCIL
FROM: Scott L. MOzier, PE, Director
Public Works Department
BY: jill m. Gormley, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
MELESSA L. AVAKIAN, Public Works Manager
Public Works Department, Engineering Services and Inspections
SUBJECT
Title
***RESOLUTION - Adopting the 34th Amendment to the Annual Appropriations Resolution No. 2024-122 to appropriate $151,000 of forfeited liquidated damages to be applied to two public right-of-way improvement projects. (Council District 2) (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council adopt the 34th Amendment to the Annual Appropriations Resolution (AAR) No. 2024-122 to appropriate $151,000 of forfeited liquidated damages to be applied to two public right-of-way improvement projects in District 2.
EXECUTIVE SUMMARY
In 2021, Lennar Homes executed two separate road closure agreements with the City of Fresno to install conditioned offsite improvements for Tract 6198 located at the northwest corner of Grantland and Shaw Avenues. The road closure agreement specifies the date for the road to be reopened, with liquidated damages of $1,000 accrued for each day past the agreed upon opening date. Both road closure agreements went past their required reopening dates, resulting in a total amount of $151,000 of forfeited liquidated damages.
Per Public Works Department Policy 210.1 Conditions of Road Closures and Lane Closures, as previously adopted by the Council, the forfeited liquidated damages are to be used in the affected area of where the road closure(s) occurred. The goals of the policy are to minimize impacts to the traveling public and provide a consistent policy to the industry.
Staff recommends that the forfeited funds be applied to two projects in District 2: a joint City/County project to install a high-intensity activated crosswalk beacon (HAWK) on Grantland Avenue near the Herndon-Barstow Elementary School, and the repaving of Island Water Park Drive north of Shaw Avenue. Staff recommends Council adopt this amendment to the AAR in order to provide appropriations in the Public Works FY2025 budget to sufficiently cover anticipated expenditures for the cost of these projects.
BACKGROUND
On March 7, 2019, the Council approved Public Works Policy 210.1 Conditions of Road Closures and Lane Closures. The goals of the policy are to minimize impacts to the traveling public and provide a consistent policy to the industry. This policy requires any developer and/or contractor proposing anything equal to or greater than a 24-hour road closure to provide to the City a signed agreement, approved schedule, approved traffic control plan and permit, and monetary deposit. The amount of the monetary deposit is dependent on the proposed length of the closure. Closures open at or before the open date included in the agreement receive a full refund of the deposit. Closures extending past the required reopening date included in the agreement incur liquidated damages amounting to $1,000 per calendar day for every day the road is not opened.
The first road closure went fifty-four days past the required reopening date, resulting in $54,000 of forfeited liquidated damages. The second road closure went ninety-seven days past the required reopening date, resulting in $97,000 of forfeited liquidated damages. The total sum of forfeited liquidated damages from these two road closures is $151,000. Per the previously mentioned Road Closure Policy (and amended text from the City Council meeting on March 7, 2019) “Funds collected as liquidated damages shall be used to mitigate impacts related to the road closure, including for asphalt repair or other maintenance improvements on detour routes and roads near the closures used by the displaced traffic.”
Staff is seeking Council approval on the attached AAR amendment which will appropriate funding toward two projects in the vicinity of the road closure:
• Installation of a HAWK on North Grantland Avenue near Herndon-Barstow Elementary School - a joint City/County project with $51,000 of appropriations requested.
• Repaving of Island Waterpark Drive from Shaw Avenue to the Herndon Canal bridge deck with $100,000 of appropriations requested.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 this agenda item to appropriate funds into the budget is not a project as defined by CEQA.
LOCAL PREFERENCE
Local preference does not apply to the projects included in this report as this is a rebudget item only. Local preference (if applicable) will be considered at the time of contract award.
FISCAL IMPACT
There is no fiscal impact to the General Fund. All proposed costs will be paid for from new and existing revenue sources. See attached Resolution for specific funds and associated costs.
Attachments:
Policy 210.1 Conditions for Roadway Closures and Lane Closures
Shaw Avenue Road Closure Agreement for T-6198
Grantland Avenue Road Closure Agreement for T-6198
34th Amendment to the Annual Appropriations Resolution No. 2024-122