PURPOSE

To request City Council adoption of the attached resolution(s) related to Bid Schedule No. 1046, Burbank Boulevard/Victory Boulevard Intersection Realignment Project, Phase 3 [RPSTPL-5200 (019)],  and thereby take the following actions:

1. Authorize Execution of a Professional Services Agreement for Construction Management;

2. Authorize Execution of a Construction and Maintenance Agreement with the Southern California Regional Rail Authority (SCRRA);

3. Authorize Execution of a Funding Agreement with the California Department of Transportation (Caltrans);

4. Approve a Project Budget Increase of $1,500,000; and

5. Make the necessary findings of benefit for Redevelopment Agency funding.

Additionally, to request the Redevelopment Agency Board approve a resolution providing a FY 04-05 budget amendment, appropriating $1.5 million from the Golden State Redevelopment Project Area unappropriated fund balance.

BACKGROUND

On June 13, 2000, the City Council adopted Resolution No. 25,768 approving the environmental impact report (EIR) for the Burbank Empire Center and Costco development.  This EIR identified several traffic improvements to mitigate impacts created by the project.  These improvements included realigning the old �Five Points� intersection at Burbank Boulevard / Victory Boulevard / Victory Place.  This is the third and final phase of the Five Points project.

On June 26 & 30, 2004, the City's Purchasing Division advertised for Phase 3 construction bids and held a bid opening on July 27, 2004.

On August 10, 2004, City Council awarded a $4,545,181.00 contract to D. W. Powell Construction, Inc. of Fontana, California for the Phase 3 construction (Bid Schedule 1046).  Market price escalation has occurred in numerous construction materials (concrete, steel, asphalt, lumber, etc.) over the last 12 months.  Phase 3 (Burbank Boulevard Bridge widening) construction is scheduled to occur between January and November 2005. 

The August 10, 2004 staff report to City Council requested a construction contract award at that time and noted that Public Works Engineering staff was evaluating consultant proposals to provide construction management services for this Phase 3 construction project.  We further noted that we would return to request City Council authorization to award a Professional Services Agreement for these services.

ANALYSIS

1.  Professional Services Agreement for Construction Management Services

Due to the Phase 3 construction and administrative complexity and aggressive schedule, full-time construction management (including inspection) services will be required, which are beyond the availability of current Public Works staffing.

A Request for Proposal to provide construction management services was advertised, and four firms submitted proposals on the due date of July 30, 2004.  A Public Works selection committee of three members was established.  This committee rated the proposal and presentation of each firm based on their project understanding, qualifications and experience.  After a final review of references, LAN Engineering, from the City of Irvine, was selected for this project.  Staff has negotiated a Professional Services Agreement with a fee of $618,312.37, which is 13.6% of the awarded construction contract amount for Bid Schedule 1046.

2.  Construction and Maintenance Agreement with the SCRRA

The Southern California Regional Rail Authority (SCRRA) Construction and Maintenance Agreement provides for SCRRA to procure, construct and maintain the required railroad material/equipment to accommodate widening the Burbank Boulevard Bridge MTA railroad right-of-way.  SCRRA has estimated a maximum Agreement amount of $147,700.00 charged to the City of Burbank to pay SCRRA for the requisite services.  Prior to construction, the City will submit an initial deposit of $74,000 to the SCRRA--funding not expended at the completion of work will be refunded.

3.  Funding Agreement with Caltrans

In order to receive reimbursement on the Five Points Improvement Project, the City must execute a Program Supplement Agreement No. 013-M to the existing Administering Agency-State Agreement No. 07-5200 between Caltrans and the City of Burbank.  The Program Supplement Agreement provides reimbursement of $4,636,000 in construction and construction engineering (i.e., management) for Phase 3 of the Five Points Improvement Project.

4.  Project Budget Increase of $1,500,000

A project budget increase of $1,500,000 is recommended to cover the Construction Contract and Construction Management (C.M.) Services, with a 15% combined contingency ($800,000); plus estimated costs for the SCRRA Construction and Maintenance (C&M) Agreement, MTA License Agreement, and Burbank Water & Power water line realignment.

FISCAL IMPACT

Funding for the $4,545,181.00 for Phase 3 construction contract is available in Account No.  127-CD21A-70005-0000-13557 (Burbank Boulevard Bridge Widening Project).  Metropolitan Transportation Authority (MTA) granted $8,768,000 for the three phases of Burbank Boulevard/Victory Boulevard Intersection Realignment Project.  Phase 3 construction has been allocated $4,636,000 from the grant funding with federal (88.53%) and state (11.47%) funds.

Below is a summary of the identified project costs.

This project will require $1,500,000 of Redevelopment Agency funds from the Golden State Redevelopment Project Area unappropriated fund balance to pay for the above estimated costs beyond the grant funding of $4,636,000.  In order for the Redevelopment Agency to fund these additional costs, certain findings must be made in accordance with California Community Redevelopment Law, Section 33445.

Health and Safety Code (HS) Section 33445 requires that the City Council find that: 1) the use of Agency funds outside a Redevelopment Project Area is of benefit to the project area funding the improvement; 2) there is no other reasonable means of financing the improvements; 3) the redevelopment purpose served is identified; and 4) that funding public improvements will assist in the elimination of one or more blighting conditions inside the project area or assist in providing affordable housing.

HS 33445 FINDINGS

1. The use of the Agency funds, specifically from the Golden State Redevelopment Project fund will permit the construction of much needed infrastructure improvements immediately adjacent to the Golden State Redevelopment Project Area.  The proposed bridge widening improvements will improve traffic flow both into and leaving the Golden State Redevelopment Project Area.

2. Of the estimated $6,136,000 capital improvement costs, $4,636,000 is being funded through the project grant. There is no other reasonable means of financing the remaining $1,500,000 portion of the Burbank Boulevard Bridge widening capital improvement project.

3. The redevelopment purpose is to provide an economically healthy and viable area, which will be furthered through this infrastructure improvement that is immediately adjacent to the Golden State Redevelopment Project Area.

4. The Agency�s payment of funds toward this portion of the Burbank Boulevard bride widening will assist in the elimination of blighting conditions (specifically traffic circulation) into and leaving the Golden State Redevelopment Project Area.

To summarize, the Burbank Boulevard bridge widening capital improvement project is estimated to cost $6,136,000, of which, $1,500,000 is proposed to be funded with Redevelopment Agency, Golden State Redevelopment Project Area unappropriated funds.  The proposed resolution will amend FY 2004-05 budget to appropriate $1,500,000 from account number 301-ND000-30004 to account number 301-CD21A-70005-0000-13557.  The City and Redevelopment Agency will jointly fund this project as outlined in this report. 

RECOMMENDATION

Adopt the proposed resolution(s) entitled:

RESOLUTION(S) OF THE COUNCIL OF THE CITY OF BURBANK:

1. Authorize Execution of a Professional Services Agreement for Construction Management

2. Authorize Execution of a Construction and Maintenance Agreement with the Southern California Regional Rail Authority (SCRRA)

3. Authorize Execution of a Funding Agreement with the California Department of Transportation (Caltrans)

4. Approve a Project Budget Increase of $1,500,000, and;

RESOLUTION OF THE REDEVELOPMENT AGENCY BOARD:

1.   Appropriating $1,500,000 from the Redevelopment Agency, Golden State       Redevelopment Project Area unappropriated fund balance

Attachments:              Exhibits A, B, C