REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Sean Crumby, Director of Public Works
PREPARED BY: William Janusz, Principal Civil Engineer
Subject:
title
Adopt Resolution No. 2022-65 authorizing the Director of Public Works to request an escalation to a prior grant allocation from the Orange County Transportation Authority (OCTA) for the Bolsa Chica Street / Valley View Street Corridor project
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Statement of Issue:
In October 2019, the City of Huntington Beach in conjunction with the City of Westminster and the City of Garden Grove submitted an application to OCTA for a Regional Traffic Signal Synchronization Program project on Valley View Street / Bolsa Chica Street from Chapman Avenue in Garden Grove to Warner Avenue in Huntington Beach. This project is currently scheduled to commence in Fiscal Year 2022/2023. With the increase in construction costs in the period since the submittal of the grant application, OCTA has developed a process to request an augment to the grant allocation based on escalating construction costs. These requirements require that a request for the augmentation must be authorized by the City Council.
Financial Impact:
No funding is required for this action.
The City will be responsible for up to $400,000 as its share of the local matching funds. A separate City Council item will be required to approve the Cooperative Agreement with the Cites of Garden Grove and Westminster with a request for allocation of the City’s share of the matching funds from the City’s Air Quality Management District Fund.
Recommended Action:
recommendation
Adopt Resolution No. 2022-65, “A Resolution of the City Council of the City of Huntington Beach Authorizing a Request for Escalation to Project P Prior Allocation from the Orange County Transportation Authority (OCTA) for the Bolsa Chica Street / Valley View Street Corridor Project - Project P Regional Traffic Signal Synchronization Program - Comprehensive Transportation Funding Program.”
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Alternative Action(s):
Do not authorize the Director of Public Works to request the grant escalation. This alternative action may result in the need to utilize local funds to compensate for shortfalls in approved project funding due to construction cost escalations.
Analysis:
In October 2019, the City of Huntington Beach in conjunction with the Cities of Westminster and Garden Grove submitted an application to OCTA for a Regional Traffic Signal Synchronization Program project on Valley View Street / Bolsa Chica Street from Chapman Avenue in Garden Grove to Warner Avenue in Huntington Beach. This project allows for improved flow through traffic signal synchronization along the corridor. In April 2020, OCTA approved grant funding for this project. This project, led by the City of Huntington Beach in conjunction with the Cities of Westminster and Garden Grove, along with Caltrans, will provide operational and infrastructure improvements at 22 signalized intersections along the corridor.
The project was originally scheduled for commencement in Fiscal Year 2020/2021. Due to staffing constraints related to the COVID-19 situation, OCTA approved a project delay until Fiscal Year 2022/2023.
In response to the significant construction cost increases during that period, OCTA has put into place a temporary policy, which allows agencies who have existing grant allocations, but have not commenced construction, to apply for an increase in the grant allocation based upon the Engineering News Record Construction Cost Index. With the City able to claim construction cost increases over the past three years, this equates to a total increase of approximately 21%, or $309,000. With the local match being 20%, this equates to an increase in grant funds of approximately $247,000. Without these additional funds, the increased construction costs would need to be covered by the local agencies utilizing local funds.
In accordance with OCTA’s policies, City Council approval is necessary before a grant augment request can be considered.
Environmental Status:
This project is categorically exempt pursuant to the California Environmental Quality Act, Section 15301(c).
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Location Map
2. Resolution No. 2022-65, “A Resolution of the City Council of the City of Huntington Beach Authorizing a Request for Escalation to Project P Prior Allocation from the Orange County Transportation Authority (OCTA) for the Bolsa Chica Street / Valley View Street Corridor Project - Project P Regional Traffic Signal Synchronization Program - Comprehensive Transportation Funding Program”