PURPOSE

The purpose of this report is to present to the City Council the engineer�s estimate of project costs for the Burbank Boulevard Street Improvement Project and to seek direction to proceed with bidding the project.

BACKGROUND

One of the City Council�s stated goals is to improve the appearance of several major arterials throughout the City including Burbank Boulevard.  In February and May 2005, staff hosted three community meetings to develop a conceptual design for the proposed Burbank Boulevard Street Improvement Project. On July 19, 2005 the City Council approved the conceptual design and directed staff to continue with the Design Development Phase.  A second round of community meetings was held on four dates in March 2006.  Notices were sent to residents, businesses and property owners within a one thousand-foot radius of the Burbank Boulevard corridor with approximately 7,000 mailers sent over the course of the community meetings.

On March 15, 2006, staff met with the project�s Oversight Committee.  At this meeting, staff received additional comments.  This was followed by one final community meeting on March 30, 2006.  This meeting provided the public one more opportunity to comment on the proposed streetscape improvements.  In addition to mailers, ads were published in the Burbank Leader advertising this community meeting.  All told, over 100 people attended the various meetings during March 2006.  This was in addition to one-on-one meetings with property owners and businesses who had specific issues.

On May 2, 2006, the City Council and Redevelopment Agency Board approved the Design Development Plans and directed staff to continue with the final construction drawings. The final design of the streetscape improvements includes new landscaped medians with lighted trees, new street trees, street furniture and repaving of Burbank Boulevard.  Improvements include enhanced treatments at six (6) Accent Areas and the two (2) major intersections at Buena Vista Street and Hollywood Way, and traffic signal modifications and interconnect work to improve the flow of traffic (see exhibits A1-A14).  Staff was directed to return to the City Council prior to bidding the project, so that the City Council could review the final construction cost estimates before going out to bid.

ANALYSIS

Attached as Exhibit B is the engineer�s estimate of the probable costs for the Burbank Boulevard street improvements. The current estimate of project costs is illustrated in the column titled �Extension of Base Cost�.  The spreadsheet includes a column that highlights certain initial budget estimates that were presented to the City Council and the Agency Board at the May 2, 2006 meeting (4/18/06 City Council Estimate).  Since then, the project City Council Sub-committee convened on July 6, 2006 and on October 23, 2006 to review the proposed construction costs and to determine ways to reduce project costs.   The column to the right of the �4/18/06 Council Estimate� identifies more recent figures that the Sub-Committee used to recommend budget modifications (Sub-Committee Estimates). The final column contains comments relative to various changes to construction cost estimates (Comments). 

It should be noted that in a few cases additional items have been added to the project that were not identified during the Design Development Phase including handicap ramps, an entry monument and additional sidewalk repairs. The revised estimates reviewed by the Sub-Committee were first estimated to total $9,739,487; however, after adjustments recommended by the Sub-Committee, the total amount was reduced to $9,350,017, a $389,470 savings.  This compares to $9,271,951 estimated in April 2006. The following is a brief discussion by cost category of notable cost revisions including the Sub-committee�s recommendations.

Civil Engineering

The civil engineering estimates are now based on final measured quantities, which have resulted in some changes, including the reduction of the amount of required asphalt concrete. However, there were also four cost increase items: 1) construction of bus pads (Item #17) was increased  due to the measurement of quantities and the need for gutter replacement that was not included in the initial cost estimate of April 18, 2006; 2)  staff determined the need to replace 80 curb ramps (Item #9); 3) the new curb ramps also required the installation of detectible warning surfaces (detectible domes) on the curb ramps, which are new Americans with Disabilities Act requirements to assist the blind (Item #15); and, 4) an analysis of the existing sidewalk led staff to include repair of sections of existing damaged or uneven sidewalks (Item #11).  Overall, even with the additional work items, the civil engineering work decreased slightly from $2,627,534 in April 2006 to $2,615,616 today for a decrease of $11,918.   

Landscape Architecture

Within the Landscape Architecture Section of the engineer�s estimate, the Sub-committee has five cost savings recommendations.  The initial design of the streetscape improvements included 36� box street trees throughout the corridor (Item #46).  The Sub-committee recommends that half of the 36� box street trees be replaced with 24� box trees on an alternating basis (36� box tree followed by 24� box tree followed by 36� box tree and so on).  The Sub-committee felt this would still provide a more dramatic effect than having all 24� box trees, while providing a cost savings of $83,000.  A sample of this alternating tree size is provided as Exhibit �C�. In addition, the Sub-committee recommends that all of the proposed tree guards at the Accent Areas be deleted (Items #36 & 37), which would save $96,030.  The Sub-committee also recommends that lighting of the Palm Trees at the cost of $46,000 (Item #40) be deleted.  However, a new item has been added to light the trees in the medians at a cost of $56,000, thus there was a net cost increase of $10,000 for this component (Item #40). 

Item #28 includes banding for the crosswalks at the two enhanced intersections (Buena Vista Street and Hollywood Way).  The Sub-committee recommends deleting this banding and save an additional $7,932.  Another recommendation is to delete the raised planters in favor of ground level plantings. This also represents a savings of $36,400 (Items # 53 & 54). The cost of the benches (Item #32 and #33) has been reduced by $22,300 due to a reduction in the unit price and cost of installation since the initial budget estimate.

The cost for recycled water for the improvements at Five Points Park has increased from $35,000 in April 2006 to $50,000 after determining the necessary quantities for the improvements (Item #69).

There are three items that have been added under the Landscape Architecture Section, since the initial estimate in April, 2006.  Item #42 is a structural soil system for the street trees that encourages the tree roots to grow downward rather than sideways thus preventing sidewalk upheaval.  The added cost for this item is $29,520.  A monument entry sign has been proposed at the west end of the Burbank Boulevard corridor at a cost of $10,000 (Item #56), and is depicted as Exhibit �D�.  Also, additional trenching is proposed in an existing grassy parkway area (in the only residential section of Burbank Boulevard along the north side of the street near Victory Boulevard) to irrigate proposed new trees at a cost of $53,855 (Item #57).

Trenching and Paving has received considerable analysis.  Originally, the designers had proposed a one foot wide trench along both sidewalks to install irrigation.  However, the Public Works Department recommended that this trenching be at minimum two and one-half feet wide to match typical sidewalk scoring lines and help prevent possible future sidewalk upheaval. (Ideally, the Public Works Department would recommend a five foot wide trench to minimize possible future upheaval.) This increased the cost for this component to $820,794 (Items #57 thru #64).

Subsequently, the Public Works Department suggested the possibility of trenching within the street itself because of the aesthetic concern that the repaving of the sidewalk would be very difficult to match the remaining sidewalk areas. After surveying the practices of several cities, it was determined that trenching in the street is an acceptable practice.  It is proposed that the main line be constructed with copper with the laterals constructed with PVC.  Prior to this change, the estimated cost for this work was $820,794. The new estimated cost for this work is estimated to be $750,765 yielding a savings of $70,029.

The cost estimates for �5-Point�s Park� is a �place holder� estimate until designs of the park have been more developed. At this time, the Sub-committee for this project has received and reviewed proposals from several artists and has established a �short list� of three artists.  The three proposals, along with the Sub-Committee�s recommendation will be presented to the City Council for consideration on January 23, 2007.  Once the City Council selects the artist, staff will proceed with the design of this area.  It should also be noted that there is an additional $300,000 proposed for the art work itself.  

Summary of Notable Landscape Architectural Changes

Reduction of a number of 36� box trees to 24� box trees -             $83,000

Deletion of tree guards                                                                     - $96,030

Deletion of parkway tree lighting                                                     - $46,000

Addition of median tree lighting                                                      + $56,000

Deletion of sidewalk banding                                                          - $36,000

Deletion of raised planters                                                               - $36,400

Reduction of bench costs                                                                 - $22,300      

Additional recycled water costs                                                      + $15,000

Addition of monument entry sign                                                     + $10,000

Additional trenching in parkway                                                      + $53,855

Relocation of trenching into street from sidewalk ¹                       - $70,029

       Total                                                                                           - $134,855       

¹ This work originally increased from $611,736 to $820,794 due the requirement for a wider trench in the sidewalk.  This subsequently decreased to $750,765 when the trench was relocated to the street.

An issue came up during the May 2, 2006 Council Meeting as to whether there were cost advantages for the City to purchase the trees directly.  While it could be as much as 10 percent cheaper for the city to purchase the trees directly since there would be no contractor mark-up, there would conversely be a number of disadvantages.  The following are the disadvantages to the city purchasing the trees:          

• The City purchasing the trees would jeopardize the contractor�s typical one-year warranty on the trees, since the contractor would not have selected the trees or have contracted directly with the nursery. 

• Conversely, the nursery could dispute that the installation was done improperly that could potentially null any opportunity for the City to seek recourse against the nursery.  Should five percent of the trees die (a reasonable ratio in such a project) whatever savings in purchasing the trees directly would be more than offset in added costs, since the installation costs is actually greater than the cost to purchase the trees themselves.

• If the City purchased the trees there would be logistical challenges that could increase the cost of the project even more.

• Any delay in delivering the trees to the construction site according to the contractor�s construction schedule would cause delays for the contractor, which could result in added costs for the City.  

• Conversely, should the trees be delivered too early, problems such as maintenance, damage and vandalism could add costs as well.

Based on the above, any potential savings may likely be offset by the potential costs described here namely the  voidance of warranty, and costs overages due to delivery logistics.  Staff would therefore not recommend trying to purchase the trees directly by the City.

Traffic Engineering

The Traffic Engineering Section of the engineer�s estimate (Items #71, #72 and #73) has increased from $1,865,000 to $2,162,500 representing an increase of $297,500, or 16%.  This change is due to the continuing trend in cost increases for these types of improvements.  The last two similar types of projects in Burbank at Hollywood Way/Victory Avenue and Olive Avenue/Riverside Drive increased from $172,569 to $203,463 and from $104,046 to $128,595, respectively.  This represents cost increase from 18% and 24% over their original estimates, which is a trend that has occurred throughout the region and state.

Project Costs

Taking into consideration all of the cost increases and cost reductions (including the Sub-committee recommended cost savings) as well as new items, the overall budget has increased from $9,271,951 (as submitted to City Council and the Agency Board on May 2, 2006) to $9,350,017 representing $78,066 increase in costs, which represents less than a one percent increase in costs. Below is a side by side comparison by category of the initial budget in April 2006 and the revised budget as currently proposed.

                                                Initial Budget              Current Budget          Difference

Mobilization                           $   250,000                $   250,000                                 0

Civil Engineering                   $2,627,534                $2,615,616                 -     11,918

Landscape Architecture       $2,529,585                $2,604,551               + $  74,966

Traffic Engineering               $1,865,000                $2,162,500                 + $297,500

Contingency ¹                        $1,454,424                $1,144,900                  - $309,524

Construction Mgmt.               $   545,408               $   572,450               + $  27,042

            Total                            $9,271,951                 $9,350,017                 + $ 78,066    

¹ The original budget provided for a 20% contingency, while the new budget provides for a 15% contingency.

As mentioned before, the estimated cost for the project had increased to $9,739,487 after the earlier estimates of April 2006. However, with the proposed modifications suggested by the Sub-Committee, the new estimated cost for the project has been reduced to $9,350,017.  As compared to when the Council last reviewed the project in May 2006, the project costs have increased by $78,066 representing less than a one percent increase from that time.  This cost increase is balanced with the additional work proposed for the project including American with Disabilities Act pedestrian ramp work, a monument sign and additional sidewalk repairs.  This also included savings through value engineering the project, while maintaining a high level of improvements for the area.

Project Funding

As a major corridor to three Redevelopment Project Areas (Golden State, City Centre and South San Fernando), the project improvements to Burbank Boulevard will be a benefit to the project areas in terms of traffic calming and improved traffic flows that will be accomplished as a result of the proposed traffic signal modifications and interconnect work, as well as installation of the street medians.  The streetscape improvements will not only improve the overall quality of the physical environment, but will also create a business friendly environment conducive to business attraction and retention, and hopefully, will act as a catalyst for future private investment and improvement within the area.

It is proposed that the 2003 Golden State bond proceeds fund the Burbank Boulevard Streetscape Project.  The Burbank Boulevard corridor was specifically identified as one of the proposed streetscape projects to be funded with the Golden State bond proceeds.  As such, no City General Fund monies are recommended to be utilized for this project

Project Schedule:     

Council/Agency Design Development approval                            May 2006

Council/Agency direction to proceed with bidding                        Jan. 2007

Completion and advertisement of bid documents                        Feb. 2007

Bids due                                                                                             Mar.  2007

Council/Agency approval of contract and funding             Apr.  2007

Begin construction                                                                            May  2007

Complete Construction (est.)                                                           Mar.  2008

If the City Council approves the Engineer�s Estimate for construction cost, staff will proceed with finalizing construction documents and return to the City Council and Redevelopment Agency Board in April 2007 for the award of the construction contract including appropriation of the necessary funds.

FISCAL IMPACT

There is no fiscal impact related to the review and approval of the Engineer�s Estimate. It is proposed that Golden State bond proceeds be made available to fund the improvements.  Staff will request authority to appropriate the necessary funds at the time a construction bid award is requested. 

RECOMMENDATION

Staff recommends that the City Council approve the Engineer�s Estimate for the Burbank Boulevard Streetscape Project and direct staff to proceed with finalizing construction documents and bidding  the project.          

EXHIBITS    

A         Project Plans

B         Engineer�s Estimate

C         Street Tree Plan

D         Monument Sign

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