DATE:
September 3, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Mohamed Alaoui, Public Works Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Accepting The Quiet Zone Safety Engineering Measures Project, Project No. EPW-18103 (CIP No. 19475008) As Complete; Authorizing The City Engineer To File A Notice Of Completion With The Alameda County Clerk; And Appropriating $2,300,000 From Unallocated Fund 475 To CIP No. 19475008 Recommendation
Staff recommends that the City Council adopt the above-entitled resolution.
Background
On December 19, 2017, the City Council unanimously approved the City’s application for 2018 SB 1 - Transportation Corridors Enhancement Program ("TCEP") funding for a Quiet Zone in Emeryville.
In January 2018, the City of Emeryville submitted a project application for $4.2 million in construction funding with a required total estimated match of approximately $1.8 million (30% funded by ACTC), for a total construction value of $6 million.
On May 16, 2018, the California Transportation Commission (CTC) approved the 2018 Trade Corridor Enhancement Program Final Adopted Program of Projects. Included in this list of projects was the City’s Project, titled “Quiet Zone Safety Engineering Measures.” The Project was officially approved in Resolution TCEP-P-1819-05B (October 17, 2018) and revised per Waiver 19-33 (June 26, 2019). In June 2020, CTC granted an additional 8-month extension due to COVID-19 impacts.
On July 10, 2018, the City Council approved Resolution 18-104, finding the project is exempt from the California Environmental Quality Act pursuant to state CEQA Guideline 15301(c) and granting the City Manager signature authority for all agreements necessary to assure completion of the Quiet Zone Safety Engineering Measures Project.
On September 17, 2018, the City Council approved Resolution 18-124, authorizing the City Manager to execute a Professional Services Agreement to initiate design and processing of the Quiet Zone Safety Engineering Measures project on 65th, 66th, and 67th Streets Project.
On April 21, 2020, the City Council approved minor scope of work changes to the project and approved the permanent street closure of 66th Street 130’ east of Shellmound Street at the Union Pacific Railroad (UPRR) Crossing effective July 1, 2021.
Staff collaborated between 2020 and 2021 with their design team and UPRR to obtain approval of the crossing and signal designs. UPRR required several modifications to the design:
Additional UPRR equipment required to support supplemental safety measures to be installed by the Project Updated and refined estimates from nearby railroad projects 65th Street: Added Signal House (750k), refined estimates on civil/railroad equipment, and complex signal improvements added 66th Street: Removal of RR equipment added and refined civil estimates 67th Street: Added Signal House (750k), Signal at Hollis/67th (350k), refined estimates on civil/railroad equipment, and complex signal improvements added On January 19, 2021, the City Council amended the project budget to include these modifications to the original scope of work. The revised Engineer Estimate for the project, including these modifications, reflected an increased estimated total construction cost of $8.87 Million (original estimate was $6.7 Million). The estimate included costs for construction, construction management, engineering support during construction, UPRR costs for installation of equipment in the UPRR right of way, and a project contingency.
On February 15, 2022, the City Council authorized the City Manager to enter into a contract with Bay Cities Paving And Grading, Inc. in an amount of $2,269,819.11 for the City’s portion of the roadway construction items. UPRR was responsible for constructing the railroad construction items (in coordination with the City’s contractor) which were estimated to total $2,795,436 from the initial agreements signed between the City and UPRR Discussion
Construction started in June 2022 with Bay Cities Paving and Grading, Inc. and the City’s construction management team continued to collaborate with UPRR. Despite the approved design modifications for the project, the City encountered significant challenges with scheduling the UPRR’s construction crews. These issues were primarily due to continuous delays with UPRR showing up to the job site due to unforeseen circumstances. Such circumstances included UPRR needing to redirect their resources to address various items of emergency work in Southern California following unprecedented rainstorm events in Winter 2022/2023. Based on email communications with UPRR staff, there were also difficulties in staffing the job site adequately due to the majority of their work crews being based in the Midwest, which affected their ability to maintain a consistent presence in Northern California.
These challenges necessitated extended periods of coordination and waiting for the City’s contractor, which significantly impacted the Project’s schedule and budget. The lack of consistent progress tracking from UPRR also lacked detailed clarity regarding the work completed or the extent of remaining tasks at the crossings. Per the construction agreements the City signed with UPRR, the City will pay 100% of the UPRR work completed. The agreements state UPRR is required to complete and manage the railroad construction work due to the work being in the railroad right of way, and due to the equipment being maintained and owned by the railroad. The minimal progress tracking in the railroad scope of work led to a series of substantial invoices being submitted during the final month of construction in early 2024 that resulted in overages significantly greater than the final estimate that was included in the agreement.
As of August 2024, the City has received invoices from UPRR totaling $5,382,884.85, which exceed the initial estimate of $2,795,436 by 92%. As of August 2024, the total construction costs are $11,418,175 with more invoices expected to come in from UPRR through Summer 2024. Staff estimates an additional budget of $2,300,000 will be needed to cover the existing outstanding invoices and any remaining invoices that are anticipated.
As a result of the overages, City staff met with UPRR on August 15, 2024 to seek clarity into why the costs had escalated so high. Email communication from City Staff to UPRR had already occurred on the issue by that point. During the meeting staff also inquired if there was an appeals process within UPRR to reduce the overages in order that the costs come within 20-30% of the original estimate as opposed to 92% over, since 20-30% represent the high end of a normal construction contingency.
During the discussion it became clear that the UPRR consultant project manager did not have access to or information from UPRR’s billing department, and as such had been unaware of the cost escalations while they were happening. Additionally, it was discovered that UPRR’s cost estimating department did not visit the Emeryville site when providing the original number, nor did they visit the site during the course of construction. With regards to a possible appeals process, it was made clear that UPRR does not contribute to 3rd party projects, that the profits it does make from them are less than marginal, and that there is not an appeals process available to further discuss or contest the cost overages.
Due to the increase in costs described above, staff recommends that the City Council appropriate $2,300,000 into the Project in order to close out the project and accept it as complete. Staff has identified funding sources to fill the funding gap between the original construction estimate and the updated final costs. Staff recommends that funds be allocated from Fund 475 as follows:
Project No.
Fund
Budget
Existing Funds
19475008
475 – Gen Cap
$708,870
19475008
242 – MBB Local S&R
$600,000
19475008
254 – ACTC
$1,800,000
19475008
254 – SB1 TCEP
$4,200,000
19475008
250 – Traffic Impact Fees
$300,000
19475008
250 – Traffic Impact Fees
$200,000
19475008
444 – 1999 Bonds
$105,910
19475008
471 – Ped Path
$180,000
19475008
254 – CMA TIP Reprogramming
$1,379,886
Existing Budget =
$ 9,474,666
New Funds
Unallocated
475 – Gen Cap
$2,300,000
New Budget =
$ 11,774,666
Actual quantities for work performed by the City’s Contractor Bay Cities Paving and Grading, Inc. were slightly more than anticipated, but change orders to the construction contract were realized within the total amount of the contract award plus contingency amount. Cost overruns were seen in the project budget mainly due to the delays sustained from waiting for UPRR construction crews and various re-works that had to be done at the crossings to comply with FRA, CPUC, and UPRR comments during field reviews before and during construction. Additional cost overruns were due to the City’s fulfillment of additional safety measure in line with the newly adopted 2023 Active Transportation Plan as part of the project. The additional improvements added to the project included concrete medians, Class IV bike lanes, two new traffic signals, ITS signal communications equipment, a railroad signal house, and new modernized railroad track equipment.
The Project is complete and ready for acceptance by the City Council. The City Engineer must now file a Notice of Completion with the Alameda County Clerk.
Upon completion of the Project, there will be an expected cost of $160,000 per year in Railroad Maintenance Fees. The maintenance of the newly installed supplemental safety measures will be the responsibility of the City of Emeryville as these facilities go beyond what is required at a normal railroad crossing. These maintenance fees are expected to first occur in Fiscal Year 2025/26 and will need to be incorporated into the City’s operating budget moving forward.
Fiscal Impact
Funding summary for this Project is shown below:
Project No.
Fund
Budget
Existing Funds
19475008
475 – Gen Cap
$708,870
19475008
242 – MBB Local S&R
$600,000
19475008
254 – ACTC
$1,800,000
19475008
254 – SB1 TCEP
$4,200,000
19475008
250 – Traffic Impact Fees
$300,000
19475008
250 – Traffic Impact Fees
$200,000
19475008
444 – 1999 Bonds
$105,910
19475008
471 – Ped Path
$180,000
19475008
254 – CMA TIP Reprogramming
$1,379,886
Existing Budget =
$ 9,474,666
New Funds
Unallocated
475 – Gen Cap
$2,300,000
New Budget =
$ 11,774,666
Staff recommends that City Council appropriates $2,300,000 from Fund 475 to CIP Project No. 19475008.
Staff Communication with the Public
The Project has been discussed at various meetings of the Bicycle and Pedestrian Advisory Committee and the Transportation Committee between 2022 and 2024.
Conflict of Interest
None.
Conclusion
Staff recommends that the City Council adopt the above-entitled resolution.
PREPARED BY: Ryan O’Connell, Senior Civil Engineer
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Draft Resolution
QZ Project – Project Acceptance and Budget Modification City Council Meeting | September 3, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM