REPORT TO THE CITY COUNCIL
June 14, 2018
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: RANDALL W. MORRISON, PE, Assistant Director
Public Works Department, Engineering Division
SCOTT P. SEHM, PE, Design Services Manager
Public Works Department, Design Services Section
ERIC W. JOHNSON, Engineer II
Public Works Department, Design Services Section
SUBJECT
Title
Actions pertaining to the Dakota Avenue and Cornelia Avenue Traffic Signal Installation Project - Bid File 3588 (Council Districts 1 and County of Fresno)
1. Adopt a finding of Categorical Exemption per staff’s determination, pursuant to Section 15301(c) 1 of the California Environmental Quality Act Guidelines (CEQA)
2. Approve an Interfund Loan Agreement from the Developer Cash-in-Lieu Improvements Fund to the Cash-in-Lieu Loan Fund, for traffic signals at Cornelia and Dakota Avenues, pursuant to Article VI of the City of Fresno Reserve Management Act and Article IV of the Taxpayer Protection Act, providing for a $572,600 loan
3. Award a Construction Contract with Madco Electric, Inc., in the amount of $408,079 for the Dakota Avenue and Cornelia Avenue Traffic Signal Installation Project
Body
RECOMMENDATIONS
Staff recommends the City Council adopt a finding of Categorical Exemption per staff’s determination, pursuant to Section 15301(c) Class 1 of the CEQA Guidelines, award a construction contract with Madco Electric, Inc., of Selma, CA, in the amount of $408,079 as the lowest responsive and responsible bidder for the Dakota Avenue and Cornelia Avenue Traffic Signal Installation Project, and authorize the Public Works Director or designee to sign a standardized contract on behalf of the City. Staff also recommends the Council approve an Interfund Loan Agreement pursuant to Article VI of the City of Fresno Reserve Management Act and Article IV of the Taxpayer Protection Act, providing for a $572,600 loan from the Developer Cash-in-Lieu Improvements Fund to the Cash-in-Lieu Loan Fund for traffic signals at Cornelia and Dakota Avenues.
EXECUTIVE SUMMARY
The proposed traffic signal improvement project at the intersection of Dakota Avenue and Cornelia Avenue will improve vehicle capacity and pedestrian safety at this location near Central East High School. This traffic signal installation will provide pedestrian phasing for all crosswalks and include pedestrian amenities such as count-down heads, accessible pedestrian signals and safety lighting. Protected left-turns for vehicles will also be included with this project. The project will install new accessible curb ramps to meet the requirements of the Americans with Disabilities Act. The adopted FY 2018 budget included the appropriations and funding transfers in order to construct the project, but a Loan Agreement is required in order to approve the inter-fund loan transfer. The installation of a traffic signal at the intersection of Dakota Avenue and Cornelia Avenue is included in the proposed inter-fund loan from the Developer Cash-in-Lieu Improvements Fund. Because this capital improvement project is part of the master capital improvement program as contained in the City’s development impact fee program, the inter-fund loan would allow the City to put available dollars to work in delivering beneficial infrastructure to one of our rapidly growing areas, then stand in line for development impact fee reimbursement which will restore the $572,600 back to the Developer Cash-in-Lieu fund.
BACKGROUND
The scope of work for the proposed traffic signal at Dakota and Cornelia Avenue includes new traffic signal poles, conduit, detector loops, traffic signal controller cabinet, service cabinet, conductors, concrete curb ramps, A.C. landing and limited sidewalk reconstruction. This project will include pedestrian amenities such as count-down heads, accessible pedestrian signals and safety lighting.
The Cornelia Avenue and Dakota Avenue Traffic Signal Project was initiated in FY 2017 when the project was adopted in the Capital Budget by City Council. The project is locally funded by an inter-fund loan transfer from the Developer Cash-in-Lieu Improvements Fund. The project was designed by in-house Public Works staff. The preliminary engineering design and right-of-way acquisition took approximately 13 months to complete.
Public Works Staff prepared a Notice Inviting Bids which was published in the Fresno Business Journal on April 18, 2018, posted on the City’s website and faxed to 10 building exchanges. The specifications were distributed to 6 prospective bidders. Three (3) sealed bid proposals were received and opened in a public bid opening held on May 1, 2018, and the bids ranged from $408,079 to $480,131. Madco Electric, Inc., submitted a bid in the amount of $408,079 which was determined to be the lowest responsive and responsible bidder for the project. The bids will expire 64 days after the bid opening date. The expiration date of the bids is July 4, 2018. If the bids are rejected or expire, the project will be rebid, resulting in a delay of approximately 60 days.
Staff recommends Council award a construction contract to Madco Electric, Inc., in the amount of $408,079 for the Dakota and Cornelia Traffic Signal Installation as the lowest responsive and responsible bidder, and authorize the Public Works Director or designee to sign and execute the standardized contract on behalf of the City of Fresno.
The Developer Cash-in-Lieu Fund is where funds are collected pursuant to the Fresno Municipal Code (FMC) provisions authorizing the Director to receive funds in lieu of improvements, in situations where it is not feasible to construct the required improvements per the development’s 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. The vast majority of developers construct their improvements with the subdivision or prior to occupancy of commercial and industrial developments. At times, certain improvements may be dependent upon other adjacent developments and not feasible to construct independently. When the anticipated time period for deferral is over the next several years, these improvements are typically secured for by a bond. However, when the anticipated duration is much longer, the FMC provides the ability for the City to accept cash in the estimated amount of those improvements and take on the future responsibility to construct those specific improvements.
The actual cash-in-lieu funds can only be utilized for the specific projects for which the dollars were collected. However, similar to Urban Growth Management (UGM) or impact fee funds, an inter-fund loan is possible. Staff does not anticipate the Developer Cash-in-Lieu Fund needing the $572,600 within the next five years and recommends it be loaned for construction of the Cornelia and Dakota traffic signal project.
The Inter-fund Loan Agreement has been approved as to form by the City Attorney’s Office. It is consistent with Article VI of the City of Fresno Reserve Management Act and Article IV of the Taxpayer Protection Act.
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 Section 15301(c) (existing facilities), which exempts the repair, maintenance, or minor alteration of existing structures or facilities, including existing streets, sidewalk and gutters, with no further expansion of existing use. 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 because the lowest responsive, responsible bidder is a local business.
FISCAL IMPACT
The Dakota and Cornelia Traffic Signal Installation Project is located in both Council District 1 and the County of Fresno. The total cost of the project is $572,600 of which 100% is locally funded by an internal loan from Developer Cash In-Lieu funds. The funding for this project is included in the approved Capital Budget for the current fiscal year (FY 2018). Of the overall project budget, $408,079 will be used for the construction contract award. All three projects included in the inter-fund loan agreement are part of the adopted FY 2018 budget and will not impact the General Fund.
Attachments:
Bid Evaluation
Fiscal Impact Statement
Vicinity Map
Standardized Contract
Interfund Loan Agreement