Administrative
Report
H.8., File # 23-5737 Meeting Date: 4/4/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE THE SECOND AMENDMENT TO THE FUNDING AGREEMENT WITH THE LOS
ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO) FOR THE
REDONDO BEACH TRANSIT CENTER AND PARK AND RIDE PROJECT (LACMTA MEASURE M PROJECT ID# MM 5508.05 AND CITY PROJECT NO. 20120), TO EXTEND THE LAPSING DATE OF FISCAL YEAR 2019-20 FUNDS TO JUNE 30, 2023
EXECUTIVE SUMMARY
On September 26, 2019, the Los Angeles County Metropolitan Transportation Authority (Metro) Board of Directors approved $4.5 million in Regional Measure M Funds for the City of Redondo Beach for the construction of the Redondo Beach Transit Center and Park and Ride Project.
At the City’s request, the Metro Board of Directors, in its June 25, 2020 session, approved the first amendment to the Funding Agreement to provide an additional $2.75 million for the projects. On April 20, 2021, the City Council approved Amendment No.1 to the Funding Agreement which accepted the additional $2.75 million.
The project funds were programmed by Metro over three different fiscal Years: $4,000,000 in FY 2019-20, which were subject to lapse by June 30, 2022, $500,000 in FY 2020-21, which are subject to lapse on June 30, 2023, and $2,750,000 in FY 2021-22, which are subject to lapse on June 30, 2024. Each of these funds have an initial term of three (3) years, and allow for extensions to be granted on a year to year basis to allow for closer tracking of project progress by Metro and South Bay Cities Council of Governments (SBCCOG).
Construction of Phase I of the Transit Center and Park and Ride Project was recently completed.
The proposed funding agreement amendment will extend the lapsing date of the initial FY 2019-20 $4,000,000 tranche of funds by one additional year to June 30, 2023.
BACKGROUND
The Transit Center’s structural design was completed in late 2016. An engineer’s estimate was also completed at that time. On May 15, 2018, the City Council approved the property exchange documents, approved the Project plans and specifications and authorized the City Clerk to advertise the Project for competitive bidding. On July 19, 2018, the City Clerk’s Office received and opened five bids for the Project, all of which were significantly higher than the engineer’s estimate.
On September 18, 2018, the City Council rejected all bids and directed staff to seek additional Metro
H.8., File # 23-5737 Meeting Date: 4/4/2023
On September 18, 2018, the City Council rejected all bids and directed staff to seek additional Metro funding. Staff applied for additional funding through SBCCOG and, on September 26, 2019, the Metro Board of Directors approved $4.5 million in Regional Measure M Funds for the Project.
On April 7, 2020, the City Council approved a Funding Agreement with Metro accepting the $4.5 million Measure M funds for the construction of the Redondo Beach Transit Center and Park and Ride Project.
The second round of bidding for the project culminated with four received bids, which were again higher than budget. Staff asked Metro for additional funds and were rewarded when Metro’s Board of Directors, at its June 25, 2020 meeting, approved an additional $2.75 million for the project.
On May 19, 2020, the City Council awarded the construction of the Transit Center and Park and Ride project to M. S. Construction Management Group, Inc. for not to exceed $11.5 million.
Construction of Phase I of the Transit Center and Park and Ride Project is complete. Amendment No. 2 will extend the lapsing date of the original $4,000,000 of funds by one year to June 30, 2023 to allow time for final billing and project close out.
It should be noted that staff has requested an additional $1,500,000 from Metro to fund any additional items or unforeseen condition change orders associated with the completion of Phase 1 and the ongoing construction of Phase 2 of the project. Metro relies on the recommendation of the SBCCOG Board of Directors regarding support of project funding for this regionally restricted funding source.
The SBCCOG Board of Directors recently approved the additional funding at their February 23, 2023 meeting and forwarded the action to Metro. The Metro Board of Directors is tentatively scheduled to consider approval of the additional funding, along with other requests, in June. Once approved by the Metro Board, a separate Funding Agreement Amendment will be created by Metro staff and then presented to City Council to formalize the use of additional funding.
COORDINATION
The Second Amendment to the Funding Agreement has been coordinated with the SBCCOG and Metro. The City Attorney’s Office approved the amendment as to form.
FISCAL IMPACT
Approval of the item will preserve the funding secured from Metro for the Transit Center and Park and Ride projects. Funding for the preparation of the amendment is available in the Public Works Department and City Attorney’s Office regular operating budgets.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Attachment 1 - Amendment No. 2 to Funding Agreement for Project ID# MM5508.05, Redondo Beach Transit Center and Park and Ride Project
· Attachment 2 - Amendment No. 1 to Funding Agreement for Project ID# MM5508.05, Redondo Beach Transit Center and Park and Ride Project, June 29, 2021 · Attachment 3 - Funding Agreement for Project ID# MM5508.05, Redondo Beach Transit
H.8., File # 23-5737 Meeting Date: 4/4/2023
· Attachment 3 - Funding Agreement for Project ID# MM5508.05, Redondo Beach Transit Center and Park and Ride Project, May 1, 2020