PURPOSE

To request Redevelopment Agency Board approval of a Cooperation Agreement, approval for appropriation of funds in the amount of $8,182,360.75, City Council consent to use funds in a non-project area (33445 findings), approval of a Professional Services Agreement with LAN Engineering, and City Council approval of Cooperation Agreement, contract documents, and award of construction contract for Bid Schedule No. 1233 � Burbank Boulevard Street Improvement 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.  The proposed street improvement project is also consistent with the Council�s goals for Fiscal Year 2006-07 by specifically beautifying Burbank Boulevard, improving traffic flows and public transit stops, improving pedestrian safety and signal timing, improving the city�s infrastructure including use of recycled water where possible and reducing congestion.

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.  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.

On January 23, 2007, staff returned to the City Council for review of the final construction cost estimates.  City Council approved the proposed budget; however, directed staff to consider certain project modifications and bidding options.  

Project Modifications

At the January 23, 2007 City Council meeting, Council had certain recommendations that affected the project design and budget.  The first recommendation related to the location of the six (6) proposed accent areas.  It was suggested that the accent areas be located close to bus stops since they tend to attract pedestrians.  Staff looked for opportunities to make adjustments to the accent areas to include the enhancement of the bus stop areas and found two such opportunities; at Catalina Street on the north side of Burbank Boulevard and at Fairview Street on the south side of Burbank Boulevard.  A third location was considered; however, it was not acceptable due to existing utilities in the sidewalk area adjacent to the bus stop. Staff had also recommended as a cost savings to alternate 24 inch box and 36 inch box trees in the parkway instead of all 36 inch box trees. Considering the positive bid results staff recommends all trees in the parkway be 36 inch box trees per the original design for a more uniform look.

Due to the high cost of pavers, staff was directed to look for a less costly alternative.  In the bid document staff replaced pavers with decorative concrete yielding a savings of $72,738.00.

The City Council suggested adding flexibility in the bidding process for items such as benches and trash receptacles. The contract document includes language stating the following: �The City reserves the right to delete from and/or add to the Scope of Work quantities. Adjustment of payment for deleted and/or added quantities shall be based upon the unit prices bid.� While we could delete such items and separately procure and install, staff believes that any theoretical construction contract savings would be offset by logistical and work coordination/warranty problems in the field. There was outstanding competition on this bid. Staff believes that the prices from the low bidder represent fair market value for the work and recommend that the contract be utilized to procure these items.

ANALYSIS

Once the construction documents were completed, staff solicited construction bids.  The bid opening occurred on April 3, 2007, and nine (9) contractors submitted bids as follows:

CONTRACTORS                                                                              BID AMOUNT

1. All American Asphalt                                                                    $ 6,315,096.30

2. Griffith Co.                                                                                     $ 6,371,348.00

3. Sequel Contracting Co.                                                               $ 6,964,840.00

4. Shawnan                                                                                        $ 7,120,447.80

5. Kalban Inc.                                                                                    $ 7,267,461.19

6. Los Angeles Engineering Inc.                                                     $ 7,424,894.60

7. Excel Paving                                                                                 $ 7,586,157.50

8. Security Paving Co.                                                                      $ 8,087,881.00

9. Sully Miller Contracting                                                                 $ 8,742,276.83

The engineer�s estimate for this project is $6,700,00.00. The lowest bid is 5.8% below the engineer�s estimate.  The spread between the lowest and highest bids is $2.4 million.

Upon review of the bid documents, staff finds All American Asphalt to be the lowest responsive and responsible bidder.  Staff has contacted the State of California Contractor�s State License Board and has found that the license of All American Asphalt is current, active, and in good standing.  Additionally, staff contacted several references, who provided confirmation that All American Asphalt had satisfactorily completed their projects.

The Agency is funding the street improvement project with 2003 Golden State bond proceeds for the Burbank Boulevard Street Improvement Project.  The bid amount of $6,315,096.30 plus a 15% contingency ($947,264.45) is $7,262,360.75.  In addition to the street improvements, staff also requests appropriation of $120,000 for the portion of work to be completed by Burbank Water & Power, which is not included in the construction bid. 

This project is considered Categorically Exempt under CEQA Section 15301(c).

Construction Management and Inspection

To assist with the project, staff recommends that consultants be retained as necessary to provide construction management and inspection services. Based on staff experience with other street improvement work, it is recommended that a not to exceed budget of $350,000.00 be appropriated for the overall project.

Staff recommends that LAN Engineering be retained to provide construction management and inspection.  Staff selected LAN Engineering based on their experience and familiarity with the City of Burbank (including the nearly completed South San Fernando Street Improvement Project), qualifications of their team members and their proven track record.  Staff then negotiated a contract in an amount not to exceed $250,000.  Staff requests the authority to execute a Professional Services Agreement with LAN Engineering. 

Other construction management work may be required due to unforeseen conditions as the project progresses, subject to the $350,000.00 appropriation limit.

Future Improvements

Construction of the Five Points Park (at Victory and Burbank Boulevards) will occur in the future, after the Burbank Boulevard street improvements have been completed.  The project includes park improvements, installation of a reclaimed water line to irrigate the park improvements and an Art-in-Public-Places component.  Funds for the art piece have already been appropriated.  The costs for the park improvements and reclaimed water are estimated to be $410,000.  Staff requests that funds for the future park improvements and reclaimed water line be appropriated at this time.

Agency staff proposes to fund additional banners for the Burbank Boulevard corridor.  Banners have already been installed as part of the preliminary improvements that have already occurred (new street name signs, painting of the light standards and banners).  Staff proposes to fund two additional sets of banners that would replace the existing banners as the seasons change. Staff requests that $40,000 be appropriated at this time to fund the additional banners.

The following summarizes the total appropriation request:

            Street improvements (bid amount)                                     $ 6,315,096.30

            15% Contingency                                                                 $    947,264.45

Construction management and inspection                                    $    350,000.00

Burbank Water & Power work                                                         $    120,000.00

            Future park improvements                                                   $    350,000.00

            Future reclaimed water line for park                                   $      60,000.00

            Future additional banners (two sets)                                  $      40,000.00

                        Total appropriation request                                     $ 8,182,360.75

In addition to the $8,182,360.75 appropriation request summarized above, staff has also included two (2) Professional Services Agreements in the Fiscal Year 2007-08 budget for the Burbank Boulevard street improvements.  They are a $50,000 contract with David Evans & Associates for future design services after construction begins and a $50,000 contract with Kabbara Engineering for additional engineering services once construction begins.  This adds $100,000 to the overall streetscape improvement budget making the total budget $8,282,360.75.  

This amount represents a savings of $ 1,067,656.25 from the budget estimate approved by City Council in January 2007.

Cooperation Agreement

Staff recommends execution of a Cooperation Agreement between the City and Agency  to allow the City to use Agency funds for the street improvement project.  Staff requests City Council and Redevelopment Agency Board adoption of resolutions authorizing the Public Works Director and the Assistant Executive Director to execute the proposed Cooperation Agreement.

Health and Safety Code Requirement

Health and Safety Code Section 33445 requires certain findings before the Agency can commit funds for the purpose of paying for improvements to a publicly owned building, facility, structure or other improvement (in this case street improvements).  Health and Safety Code Section 33445 requires that the City Council consent to the Agency expenditures and find that:

1)         The use of Agency funds is of benefit to the project area funding the improvement.

The use of Agency funds for the construction of the street improvements will benefit the Merged and Amended Redevelopment Project Area (the Golden State, City Centre and South San Fernando project areas) that is immediately adjacent to the east end of the Burbank Boulevard corridor which acts as the gateway to the project areas.  The area around this corridor has various instances of deteriorated or dilapidated commercial and industrial properties.  The street improvements include a consistent pattern of parkway trees as well as installation of twelve (12) landscaped medians that include trees and low level plants. Planting of the parkway and median trees, the parkway and median low level plants together with the installation of an irrigation system will increase the amount of trees, shrubbery and green space in the city.  The proposed improvements will create a more visually pleasing and pedestrian friendly atmosphere within the corridor which will encourage private investment and improvement that will enhance business attraction and retention efforts within the area.  This will complement the Economic Development efforts already in motion throughout the city.  The project also includes traffic signal upgrades, including synchronization of traffic signals, and interconnect improvements that will improve the flow of vehicular traffic.  In addition, pedestrian traffic signals will be installed at two intersections to improve safety.  These improvements will improve traffic for the overall area including access to transportation hubs, including the Downtown Metrolink Station.  The proposed landscape and traffic improvements will help reverse the present deterioration and dilapidation that plagues the vital corridor.  The positive effects of the proposed improvements on physical aesthetics and civic pride are intended to inspire a greater sense of community to the residents of Burbank and will provide a higher quality of life that will be of benefit throughout the city.

2)         There is no other reasonable means of financing the improvements.

At this time, the City has no funds budgeted or available to fund the proposed improvements, estimated to cost $8,182,360.75.  In addition, no future funds would be available without taking away from other needed infrastructure projects or programs.

3)         Funding the project will assist in the elimination of one or more blighting conditions inside the project area.

The use of Agency funds for construction of the proposed street improvements will assist in the elimination of blighting conditions inside the Merged and Amended Redevelopment Project Area (Golden State, City Centre and South San Fernando).  The area around this corridor has various instances of deteriorated or dilapidated commercial and industrial properties.  By causing the street improvements to be constructed, the Agency will be eliminating the visual blight that currently exists along the corridor.  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 should act as a catalyst for future private investment and improvement within the area.  Traffic circulation is also a blighting condition for the area.  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 circulation improvements will also improve access to transit hubs such as the Downtown Station.

The City Council, as the governing body, must consent to the Agency expenditures for the street improvements and also make the Health and Safety Code Section 33445 findings outlined above.  To document the findings and consent to the Agency expenditures, staff requests that City Council adopt the proposed City Council resolution.   

Community Outreach

As a large part of staff�s community outreach efforts, staff hosted three (3) community meetings in February and May 2005 to receive public input on the schematic design of the improvements.  Those meetings were followed by four (4) community meetings in March 2006 to obtain comments on the Design Development Phase.  After the design was completed, staff held one final community on March 30, 2007 to provide the public one last opportunity to comment on the proposed improvements.

If the construction contract is approved and the streetscape project funded, staff will reach out to the community to inform the public of the upcoming project, which is anticipated to begin construction in June 2007.  Staff will prepare newsletters providing updates for area residents and business owners.  These newsletters will be sent to residents, business and property owners in the area of the street improvements.  In addition, the Community Development Department has a staff liaison to the Burbank Boulevard Merchants Association.  The liaison meets regularly with the merchants and will provide continuous updates to the merchants who can regularly disseminate this updated information to the businesses along the corridor.

FISCAL IMPACT

The Redevelopment Agency will fund the Burbank Boulevard Street Improvement Project with available 2003 Golden State Bond proceeds.  Staff request approval of a construction contract with All American Asphalt in the amount of $6,315,096.30, who was the lowest bidder.  In addition, staff recommends a contingency of 15% or $947,264.45.  To assist with construction management and inspection, staff requests appropriating an additional $350,000.  From this $350,000, staff is requesting approval of a Professional Service Agreement with LAN Engineering to provide these services.  Staff also requests $120,000 for Burbank Water & Power work as well as $450,000 for future projects.  The total Agency funding request is $8,182,360.75.  Staff requests authority to appropriate $8,182,360.75 from 306-ND000-30004-0000-000000-Unappropriated Fund Balance to 306-CD22A-70005-0000-16020 -Burbank Boulevard Street Improvement Project.  Construction of this project is anticipated to start in June 2007 and to be completed by February 2008.

CONCLUSION

Besides satisfying one of City Council�s stated goals to improve the appearance of several major arterials throughout Burbank (Burbank Boulevard being one of them), the benefits of the proposed street improvements are many.  To begin with, the street improvements will beautify one of the major thoroughfares that has had little visual appeal for many years.  Such improvements are already represented by the recently completed improvements on South San Fernando Boulevard. Staff believes that beautifying this corridor will enhance the Agency�s economic development efforts by encouraging business and property owners in the area to upgrade their businesses and properties.  Eventually, this will attract a greater variety of quality businesses to the area.  In addition, the park improvements and art piece at Victory and Burbank Boulevards will not only act as the gateway to the Burbank Boulevard corridor, but will also have a positive visual impact on the three Redevelopment Project Areas (City Centre, Golden State and South San Fernando) that are immediately adjacent to the Burbank Boulevard gateway.

The benefits of the proposed project also include transportation and traffic improvements.  Traffic signal upgrades and interconnect improvements are proposed.  The interconnect improvements will improve the flow of vehicular traffic.  Traffic signal upgrades include pedestrian signals at two major intersections that currently have only flashing yellow lights.  The proposed pedestrian signals will stop traffic to allow pedestrian crossing.  All of the traffic signal and interconnect improvements will improve the flow of traffic along the corridor and to major transportation hubs.

RECOMMENDATION

Staff recommends that the Redevelopment Agency Board adopt the proposed resolution approving a Cooperation Agreement between the City and the Agency to allow the City to use Agency funds for the project, making the necessary 33445 findings, and appropriating funds in the amount of $8,182,360.75. Staff also recommends that City Council adopt the proposed resolution approving the Cooperation Agreement, consenting to Agency expenditures in a non-Redevelopment Project Area (33445 findings), approving a Professional Services Agreement with LAN Engineering for construction management and inspection services, accepting and appropriating Agency funds, and approving a construction contract and related documents with All American Asphalt for the Bid Schedule No. 1233 � Burbank Boulevard Street Improvement Project.

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