CITY OP
AGENDA REPORT
DATE: January 13, 2025
Item No. 4
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer.
Landon Kern, Assistant City Engineer L%<-
Crystal Campbell, Associate Engineer C, C
SUBJECT: Budget Amendment and Fund Reallocation - Oak Glen Road/Live Oak Canyon Road Widening Project, Colorado Street to Outer Hwy-10 South Project RECOMMENDATION:
That the City Council:
1) Amend the FY25 Capital Improvement Program Budget by reallocating the amount of $280,000 in Traffic DIF (Development Impact Fee) funds from the Yucaipa Boulevard Improvements, 15"' Street to the I-10 Freeway Project, to the Oak Glen Road/Live Oak Canyon Road Widening, Colorado Street to Outer Hwy-10 South Project; and 2) De -authorize spending in the amount of $280,000 on the Yucaipa Boulevard Improvements, 15"' Street to the I-10 Freeway Project.
BACKGROUND/DISCUSSION:
The FY25 Capital Improvement Program (CIP) includes the Oak Glen Road/Live Oak Canyon Road Widening, Colorado Street to Outer Hwy-10 South Project (Project). The Project is being completed in phases, with Phase I and Phase 2 completed in 2019 and 2023, respectively. Phase 3, currently under construction, includes a new traffic signal and intersection improvements at the intersection of Oak Glen Road and Colorado Street (Phase 3 Project). The executed Development Agreement (DA) for the hotel and fueling station project currently being constructed just west of this intersection, requires the City to complete the Phase 3 Project. The remaining, future phases of the Project will incorporate widening along Oak Glen Road and intersection improvements at 13"' Street and 14"' Street, and will require additional funding to complete. Staff has been actively seeking grant funding opportunities to offset these anticipated, future construction costs.
The completion of the Phase 3 Project aligns with City Council Goals for 2024, and the completion of this phase has also resulted in economic development along this primary transportation corridor.
Several other CIP public infrastructure projects have been completed by the City over the past several years along Oak Glen Road to promote economic development resulting in the development of several commercial projects. These private land development projects include the following:
Yucaipa Gateway Commercial Center includes the development of a 92-room LaQuinta Hotel, fuel station, convenience store, car wash, Starbucks, and a proposed fast -casual restaurant located at the corner of Oak Glen Road and 14th Street.
SG Opal Commercial Center includes the development of a fuel station and convenience store, quick -service restaurant, and office space, an express carwash, and a 66-room hotel with a rooftop bar and restaurant at the corner of Oak Glen Road and 13th Street.
Sabbah Commercial Center includes the development of a fuel station and convenience store, car wash, 20EV(Tesla) covered charging spaces, quick -service restaurant and an office/retail building located on Oak Glen Road between 13a' Street and 14'h Street.
Due to the advanced timing of the commercial development activity along Oak Glen Road, and the requirements of the City associated with the corresponding development agreements, it has been identified that additional funding needs to be allocated to the Project to support the City's commitments identified in the executed development agreements.
The Yucaipa Boulevard Improvements, 15'h Street to the I-10 Freeway Project (YB Project) is also prioritized in the FY25 CIP and is being completed in phases. Phase 1 and Phase 2 were completed in 2020. Phase 3 will complete the widening of Yucaipa Boulevard between I e Street and 18'h Street, including signalization of the intersection at 17'h Street. Traffic DIF funding is currently authorized for the YB Project to partially fund the right-of-way acquisitions needed for the construction of Phase 3 and the available balance of Traffic DIF funds is approximately $585,000 for Phase 3. The widening of the Yucaipa Boulevard intersection with Avenue E/Hampton Road is fully funded and currently under design, which will incorporate the addition of a right turn lane entering onto the westbound I-10 on -ramp.
To help meet several of the City Council's 2024 goals, including the completion of current CIP projects and seeking economic development opportunities, the proposed recommendations include a reallocation of previously authorized Traffic DIF funds from the YB Project in the amount of $280,000 to the Project, along with a corresponding $280,000 decrease in authorized spending on the YB Project.
FISCAL IMPACT:
This amendment to the FY25 Capital hmprovement Program is a reallocation of previously authorized funding from one project to another along with a corresponding decrease in authorized spending, and therefore has no net fiscal impact. Additional funding needed for future phases of construction will be addressed as a part of the annual CIP budget review and approval process.
Approved by:�