City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 22, 2024 FROM: PUBLIC WORKS DEPARTMENT WARD: 7
SUBJECT: FIRST AMENDMENT TO SERVICES AGREEMENT WITH RIVERSIDE-CORONA RESOURCE CONSERVATION DISTRICT IN AN ADDITIONAL AMOUNT OF $3,055,116.08 FOR A TOTAL CONTRACT AMOUNT OF $3,758,016.08 FOR JURUPA AVENUE EXTENSION PHASE 2 FROM RUTLAND AVENUE TO FORMER HOLE LAKE DAM; AUTHORIZE A GRANT APPLICATION TO THE CALIFORNIA NATURAL RESOURCES AGENCY UNDER THE ENVIRONMENTAL ENHANCEMENT AND MITIGATION PROGRAM IN AN AMOUNT OF UP TO $750,000 ISSUES:
Approve the First Amendment to the Services Agreement with the Riverside-Corona Regional Conservation District in the additional amount of $3,055,116.08, for a total contract amount of $3,758,016.08 to provide environmental mitigation services for the Jurupa Avenue Extension Phase 2 project from Rutland Avenue to the former Hole Lake Dam; and authorize a grant application to the California Natural Resources Agency under the Environmental Enhancement and Mitigation Program in an amount of up to $750,000.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to Services Agreement with the Riverside-Corona Regional Conservation District in the additional amount of $3,055,116.08 to increase the total contract amount to $3,758,016.08 for Jurupa Avenue Extension Phase 2 from Rutland Avenue to Former Hole Lake Dam; Authorize the City Manager, or designee, to execute the First Amendment to the Services Agreement with the Riverside-Corona Regional Conservation District, including making minor and non-substantive changes, subject to the availability of budgeted funds; and Authorize the Public Works Department to prepare and submit a grant application to the California Natural Resources Agency under the Environmental Enhancement and Mitigation Program for an amount of up to $750,000.
BACKGROUND:
On July 13, 2010, the City Council adopted a Mitigated Negative Declaration (MND) and Mitigation Monitoring Plan for the Jurupa Avenue Extension Phase 2 project from Rutland Avenue to the former Hole Lake Dam (Project). The MND analyzed potential environmental impacts in accordance with the California Environmental Quality Act. The California Department of Fish and Wildlife (CDFW) required restoration of 5.31 acres of riparian/wetland habitat.
On May 10, 2011, the City Council awarded a contract to construct the Project improvements. A Notice of Completion was filed with the Riverside County Recorder’s Office indicating the Project was completed on September 24, 2012.
On September 22, 2015, the City Council approved a Services Agreement with the Riverside-Corona Resource Conservation District (RCRCD) in the amount of $702,900 and granted RCRCD a 10.58-acre Conservation Easement within the former Hole Lake area to complete the required Project riparian/wetlands habitat mitigation. During negotiations with CDFW, a larger Conservation Easement was conveyed so the excess area could be used by the City for future project mitigation when required.
DISCUSSION:
The City has continually planned to commence completion of the required Project mitigation requirements for the 5.31 acres as identified in the Jurupa Avenue Extension MND immediately following the completion of the Project improvements around the former Hole Lake area (Attachment 1). The Services Agreement executed with RCRCD included the following phases of habitat mitigation work:
Invasive exotic plant removals, new planting installation, and 120-day restoration; Five-year maintenance, monitoring, and plant establishment; and Endowment for preservation management in perpetuity for the required mitigation area.
Unfortunately, the City experienced an influx of homeless encampments along the Santa Ana River. The encampments extended into the former Hole Lake area following the completion of the Project resulting in delays in executing the Services Agreement with RCRCD and ultimately the commencement of the mitigation work.
The City formulated a Public Safety and Engagement Team (PSET) to engage homeless individuals to provide resources and assistance for a pathway out of homelessness. The duties for PSET were expanded to remove homeless encampments within City right-of-way. Because of these efforts in the former Hole Lake area, the City is now able to move forward with the Project mitigation work.
However, due to significant delay in commencing the habitat mitigation after the Project completion, CDFW staff are requiring the City to remove an additional 2.69 acres of invasive exotic plants as “Temporal Loss” due to the time that had passed between the actual initiation of mitigation from when the City was required to initiate the mitigation. Additionally, the subsequent increase in inflation since 2015 when the Service Agreement was executed with RCRCD, has vastly increased labor, equipment, and material costs. Therefore, RCRCD is no longer able to perform the defined phases of work for the costs included the Service Agreement.
Although the Jurupa Avenue Extension improvements have been complete for over a decade, the City remains responsible for adhering to its environmental obligations under the adopted MND, and RCRCD remains the most viable option for satisfying the City’s obligations. RCRCD has a long history of successfully providing these services in similar conditions. Therefore, a First Amendment to the Service Agreement (Attachment 2) with RCRCD is required to address the increased labor costs and to complete the additional work CDFW is requiring as Temporal Loss.
The City is also responsible for completing additional work in association with completing the mitigation work in the Hole Lake area. The City will remove trash, install fencing to assist in securing the site, provide patrolling to deter pedestrian traffic, and install water meters to provide water service for the plant establishment period. It is anticipated that the Parks, Recreation, and Community Services Department will collaborate with the fencing and trash removal work.
In anticipation of the increased costs to complete the required mitigation measures, the Public Works Department identified a grant opportunity to potentially secure up to $750,000 from the California Natural Resources Agency under the Environmental Enhancement and Mitigation Program (EEM). The EEM Program grant is eligible to local, state, and federal governmental agencies and nonprofit organizations to mitigate environmental impacts caused by new or modified public transportation facilities. Because the EEM grant was identified so close to the submittal deadline, the Public Works Department submitted the grant with the understanding it would present the grant details to City Council at a later date. The Fiscal Impact section and Recommendations of this report do not account for this potential grant award, as it is imperative that the City continue to advance the Project.
One proposed source of project mitigation funds is the Canyon Crest Drive Widening Project. The Canyon Crest project, which would widen Canyon Crest to four lanes between Via Vista Drive and Country Club Drive is dependent on the dedication of necessary right- of-way from a private development to widen the roadway. Because a private development project is currently not entitled and the City is not aware of any project being brought forward at this time, the Public Works Department would appropriate the necessary funds to support this project after the right-of-way has been secured. Furthermore, it is recommended that the previously proposed widening is assessed as part of the General Plan Update to determine whether it continues to serve the community’s needs.
Per Purchasing Resolution 24101, Section 1104 Change Orders which states, “Change Orders may be utilized for purposes of…(3) modifying scope of work/services being provided, where the modification is reasonably related to the original scope of work/services…(5) modifying contract completion time or the term of a Contract or (6) any other change approved by the Manager. Unless otherwise specifically authorized by the Awarding Entity, Change Orders which cumulatively exceed the following will require Awarding Entity approval…(d) A Contract amendment which extends the term of the agreement beyond one year of the original expiration date.” The Purchasing Manager concurs that the recommended actions are in compliance with Purchasing Resolution No. 24101, Section 1104.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 6 – Infrastructure, Mobility and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
It aligns with each of the Cross-Cutting Threads as follows:
Community Trust – The street improvements completed in 2012 were part of a more significant endeavor to improve the City’s roadway network and quality of life for residents and visitors. This mitigation work satisfies the obligations for completing those street improvements.
Equity – This mitigation work is associated with a project that aligned with our transportation goals and procedures.
Fiscal Responsibility – Public Works responsibly manages a variety of funding sources to complete projects included in the City’s Capital Improvement Program. Public Works is a prudent steward of public funds.
Innovation – This project exemplifies established methods of completing habitat mitigation work and a creative partnership to ensure continued maintenance of the subject area.
Sustainability & Resiliency – The procedures to remove the evasive exotic plants materials are considered best practices in the industry. The establishment of a conservation easement and endowment with RCRCD will ensure the natural habitat in the Hole Lake area will thrive in perpetuity.
FISCAL IMPACT:
The total fiscal impact of the agreement is $3,055,116.08 as summarized in Table 1 below. The cost increases are a result of the delays prohibiting commencement of the habitat mitigation work and the additional work imposed by CDFW as “Temporal Loss”.
Table 1 – RCRCD Mitigation Cost Increase
RCRCD
Mitigation Phases
Service Agreement
(2015 Total)
First
Amendment
(2024 Total)
Cost
Increase
Install & 120-Day Restoration
$185,416.00
$1,095,884.86
$910,468.86
5-Year Maintenance & Monitoring
$123,017.00
$1,236,364.02
$1,113,347.02
Preservation Endowment
$394,467.00
$1,425,767.20
$1,031,300.20
Total
$702,900.00
$3,758,016.08
$3,055,116.08
The estimated total Project cost associated with completing all work, including the Service Agreement, First Amendment, contingencies, fencing, and water service, is itemized in Table 2.
Table 2 – Total Project Costs
Task
Amount
RCRCD Service Agreement
$702,900.00(1)
RCRCD First Amendment to the Service Agreement
$3,055,116.08
Contingencies
$150,000.00
Fencing, Water Meters, and Water Service
$1,241,983.92
Total
$5,150,000.00
Upon City Council approval of the agreement, budget adjustments will be recorded as outlined in the table below and sufficient funds will be available in the expenditure accounts shown in Table 4 to approve the First Amendment and complete the habitat mitigation work.
Table 3 – Project Budget Adjustments
Fund
Project
Account
Amount
Gas Tax
Canyon Crest Widening
9587627-440223
($957,409.08)
Measure A
Canyon Crest Widening
9587630-440313
($1,650,000.00)
Major Streets Rehab
9888030-440313
($1,839,690.92)
Total Reduction
($4,447,100.00)
Gas Tax
Jurupa Ext. Van Buren-Rutland
9598427-440223
$957,409.08
Measure A
Jurupa Ext. Van Buren-Rutland
9598430-440313
$3,489,690.92
Total Additions
$4,447,100.00
Table 4 – Project Funding
Fund
Project / Program Task
Account
Amount
Gas Tax
Jurupa Ext. Van Buren-Rutland
9598427-440223
$702,900.00(1)
Jurupa Ext. Van Buren-Rutland
9598427-440223
$957,409.08
Measure A
Jurupa Ext. Van Buren-Rutland
9598430-440313
$3,489,690.92
Total
$5,150,000.00
Note: (1) Funds were encumbered in 2015 with PO No. 163723 Prepared by: Ed Lara, Principal Engineer
Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
Project Location Map
First Amendment
Presentation
First Amendment to RCRCD Services Agreement ● Page 2