DATE:
May 2, 2023
TO:
Mayor and Council Members
FROM:
Nils Bentsen, City Manager
BY:
Rachel Molina, Assistant City Manager
Dani Fox, Deputy Development Services Director
Tina Souza, Senior Project Manager
SUBJECT:
Amend Project Funding Agreement with San Bernardino County Transportation Authority for the Ranchero Road Widening Project
RECOMMENDED ACTION
It is recommended that the City Council approve Amendment No. 2 to the Project Funding Agreement (PFA) No. 17-1001692 between San Bernardino County Transportation Authority (SBCTA) and the City for construction of the Ranchero Road Widening Project and authorize the Mayor to execute the Amendment.
BACKGROUND
The Ranchero Corridor Project consists of several improvements in three phases, I) the undercrossing at the BNSF Railway Company (BNSF) railroad tracks (at the eastern terminus of the corridor project boundary) which was completed in June 2013, II) the interchange at Interstate 15 (I-15) (at the western terminus of the corridor project boundary) which was completed in March 2015, and III) improvements to widen the five-mile roadway segment of Ranchero Road from two lanes to five lanes between these two structures. The widening of the roadway includes replacing and widening the bridge over the California Department of Water Resources (DWR) aqueduct, as well as widening the at-grade crossing of Union Pacific Railroad (UPRR) railroad tracks. The Ranchero Road Corridor project is currently under construction under C.O. Nos. 7094, 7131, 7139, 7146, and 7154.
On June 20, 2017, the City Council approved PFA No. 17-1001692 between SBCTA and the City for contribution of the public’s (SBCTA’s) share of the project utilizing Measure I, and/or other Major Local Highway Projects (MLHP) Program funds available for use by SBCTA for right-of-way acquisition and utility relocations. The PFA required amending to include the construction element of the Project.
On June 4, 2020, City Council approved Amendment No. 1 to the subject agreement incorporating Senate Bill 1 Local Partnership Program formulaic funds for SBCTA’s share, allocating additional MLHP funds to the project, and extending the termination date to June 30, 2023.
ISSUES/ANALYSIS
The City has partnered with San Bernardino County (County) on this Project with the City being the lead agency. The understanding between the City and the County are under a separate agreement. The Project is on the SBCTA’s Measure I 2010-2040 Victor Valley Subarea MLHP list and associated Measure I Ten Year Delivery Plan making the Project eligible for partial funding from SBCTA. In order to receive expenditure reimbursement of SBCTA’s share, a PFA must be in place. The PFA is SBCTA’s standard contract for funding shares. The PFA and subsequently approved Amendment No. 1 previously approved by the City Council in 2017 and 2020 respectively, expires on June 30, 2023.
The project is currently under construction. Once construction is complete, the project must go through a reconciliation and close-out process with SBCTA and Caltrans. Amendment No. 2 provides a contract extension to June 30, 2025, to allow for construction and the close-out process.
Some of the key elements for consideration related to executing the PFA amendment are as follows:
The PFA and subsequent amendments are entered into in accordance with SBCTA’s rules and regulations.
SBCTA has allocated $12,678,000 is Local Partnership Program (LPP) Formulaic funds and $11,507,821 in MLHP funds for a total of $24,185,821.
If cost overruns are anticipated to occur, the PFA may be amended prior to reaching the cost limit. Although, amendments to an PFA are generally not denied by SBCTA, there is no guarantee an amendment will be approved due to funding source limitations and obligations to other projects. If said circumstance arises, the City and County will be responsible for cost overruns within their own jurisdiction.
An active PFA is required to obtain reimbursements of LPP competitive and formulaic grant funds, as well as reimbursements from SBCTA. These are current funding sources for the project.
FISCAL IMPACT
There are no additional fiscal impacts associated with this action. Funding for the Project is budgeted in Funds 204, 207, 300, 306 and 504 in the FY 2022-2023 Capital Improvement Program (CIP) budget. The Project will be budgeted in subsequent fiscal years until project completion.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Attachment 1 - Amendment No. 2 for Project Funding Agreement No. 17-1001692 City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council
Amend Project Funding Agreement with San Bernardino County Transportation Authority for the Ranchero Road Widening Project May 2, 2023