PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.E
SUBJECT/TITLE:
BELLO BRIDGE PROJECT BUDGET APPROPRIATIONS
RECOMMENDATION:
Adopt a Resolution accepting additional grant funds in the amount of $983,826, and appropriating revenues and expenditures in FY 2022 for the Bello Bridge Project.
BACKGROUND:
In April 2020, a construction contract was awarded to Papich Construction Co., Inc. for the construction of the Bello Street Bridge project. Construction began in early June 2020, and was paused on October 31, 2020 per permit requirements with the California State Water Resources Control Board. Papich resumed construction on June 15, 2021 and is nearing completion of the project. Staff expects the project to be completed by late February, except for the post-construction environmental mitigation, re-vegetation, monitoring and maintenance which will be performed by a separate contractor at the project site for 5 years following completion of construction.
The construction of the Bello Street Bridge project is fully funded by a Federal Highway Bridge Program (HBP) grant. At the time of the construction contract award, there was a budget shortfall based on the actual bids received. Staff requested additional funding from Caltrans to cover the shortfall, and it was approved in March 2021 (funding approval provided as Attachment 2). Once construction is complete, staff submit a project close- out request, which will include a request for additional funding for all costs that were incurred during construction not currently authorized. At that time, staff will come back to Council one last time to accept and appropriate the remaining grant funds. While the timing of that approval is unknown, and based solely on Caltrans receiving, reviewing, and processing the request, staff expects to receive those additional funds in Fiscal Year (FY) 2023.
Conclusion and Recommendation
Staff recommends Council adopt a Resolution (Attachment 1) accepting additional grant funds in the amount of $983,826, and appropriating revenues and expenditures in FY 2022 to bring the Bello Street Bridge project to completion.
FISCAL IMPACT:
The fiscal impact of adopting the subject Resolution includes $983,826 of additional grant revenues and $124,579 of additional expenditures. This will bring the total estimated project cost to $6,707,820. The project is 100% federally funded through a Federal Highway Bridge Program (HBP) grant.
Staff will work with Caltrans Local Assistance (LA) to request additional funding to ensure that all expenditures for this project are supported by the grant based on the actual cost of construction once the project is complete. The timing of the additional funds is likely to
9.E-1Council Agenda 2-15-2022
be FY 2023. In order to receive funds from Caltrans LA, the City must first incur the costs and pay the contractor. Once invoices are paid, the City can submit progress invoices to Caltrans for reimbursement. The previously authorized funds are currently available for the project and staff has been submitting progress invoices quarterly.
The table below shows the current project revenues and expenditures. The expenditure budget reflects the cost of the project based on contractual obligations and projected costs, whereas the revenue budget is less than the expenditure budget as it only reflects the amount of the HBP grant awarded at that time. There is about a 6-month to a one- year lag in the grant award based on the timing of HBP review of these federally funded projects. Since the project is 100% federally funded, once the project is complete and the remaining HBP grant is awarded (likely in FY 2023), the revenues will balance to the expenditures. Based on projected expenditures, staff anticipates requesting an additional $255,199 in additional HBP grant revenues.
ALTERNATIVES:
1. Do not adopt the Resolution and provide staff with direction.
ATTACHMENTS:
1. Resolution
2. HBP Funding Approval Letter
Prepared by: Meeting Date: February 15, 2022
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer
City Manager Approval:
Revenues Expenditures
FY 2022 Budget 2,639,006$ 3,092,984$
A FY 20 to FY 22 Actuals 3,259,698 5,468,795
B Projected 2,209,097 1,114,446
C New Appropriations 983,826 124,579
D = A+B+C Total Project 6,452,621$ 6,707,820$
9.E-2Council Agenda 2-15-2022
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ACCEPTING ADDITIONAL GRANT FUNDS IN THE AMOUNT OF $983,826, AND APPROPRIATING REVENUES AND EXPENDITURES IN FY 2022
FOR THE BELLO BRIDGE PROJECT
WHEREAS, the construction of the Bello Street Bridge project is fully funded by a Federal Highway Bridge Program (HBP) grant; and
WHEREAS, at the time of the construction contract award, there was a budget shortfall based on the actual bids received which was requested from, and approved by Caltrans in March 2021; and
WHEREAS, the construction of the bridge is nearing completion and staff will be submitting a project close-out request, which will include a request for additional funding for all costs that were incurred during construction not currently authorized; and WHEREAS, staff expects to receive those additional funds in Fiscal Year (FY) 2023.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby accepts additional Federal Highway Bridge Program grant funds in the amount of $983,826, and appropriates $983,826 of additional grant revenues and $124,579 of additional project expenditures in FY 2022 for the Bello Street Bridge project.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of February 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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Attachment 1
S T A T E O F C A L I F O R N I A ------- B U S I N E S S , T R A N S P O R T A T ION AND HOUSING AGENCY Gavin Newsom, Governor
DEPARTMENT OF TRANSPORTATION
50 HIGUERA STREET
SAN LUIS OBISPO, CA 93401-5415
PHONE (805) 549-3101
FAX (805) 549-3329
TTY 711
http://www.dot.ca.gov/dist05/
Flex your power! Be energy efficient!
“Caltrans improves mobility across California”
March 17, 2021
05-SLO-0-PBCH
BRLO-5289(012)
Advantage ID 0500020343
Br. No. 49C-0109
Bello St Bridge Replacement
Mr. Chad Stoehr and Ms. Erin Olsen
Associate Engineer
City of Pismo Beach Public Works
760 Mattie Road
Pismo Beach, CA 93449
Subject: Award Adjustment (Increase) of Right of Way, Utilities, CON/CE, and Plant Establishment Federal Funds at Award
Congratulations, a post-programming increase (additional funding) at Award for Right of Way ($13,416), RW Utilities ($50,014), CON & Plant Establishment ($515,114+$300,000) & CE ($405,282) and funding for the City’s subject project was approved by FHWA on March 16, 2021.
Caltrans HQ will be sending the City a Program Supplement Agreement (PSA) with a Finance Letter. The City will need to sign and return this PSA directly to HQ before submitting invoices for this additional funding.
Please be sure to invoice to the old appropriation codes M233 for RW and Z233 for CON/CE until funds are exhausted ($0 balance). Once the old appropriation balances are exhausted, you can start invoicing to appropriation code Z2E3.
Please save copy of the attached E76 in your project files.
Sincerely,
Tammy M. Giuliano
Tammy M. Giuliano
Local Assistance Engineer
9.E-4Council Agenda 2-15-2022
Attachment 2
RW
Util Rel
CON
CE
RW
CON
Util Rel
CE
When
invoicing,
exhaust
M233,
Z233 first
until $0
balance.
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