Title
Department of Transportation recommending the Board authorize the Chair to sign the First Amendment to the Reimbursement Agreement for the construction of the "Road Widening Improvement Plans for the Crossings at El Dorado Missouri Flat and Crossings Road" between the County and LLL & A, LLC (AGMT 22-55037), for improvements included in CIP Project 36105066 "Missouri Flat Widening from Plaza Drive to Headington Road." This amendment updates the payment schedule and assigns a portion of the reimbursement to the contractor on the project, Doug Veerkamp General Engineering, Inc.
(District 3)
FUNDING: Missouri Flat Area Master Circulation & Funding Plan Program.
Body
DISCUSSION / BACKGROUND
The Crossings at El Dorado, also known as the Crossings Planned Development, PD97-0011 (Project), is a commercial development project located on Missouri Flat Road in the unincorporated area of Placerville adjacent to the Target and Safeway shopping centers. The initial development was approved as the "Sundance Plaza" project on December 8, 1998. On May 8, 2014, the Planning Commission approved a Finding of Consistency on the Project, which updated the project phasing to its current structure and the project name to "The Crossings at El Dorado."
The Project requires access from Missouri Flat Road, which necessitates widening Missouri Flat Road, adding turn lanes, and signalizing the existing Headington / Missouri Flat Road intersection. These improvements are included in the Capital Improvement Program (CIP) as project #36105066/71374, "Missouri Flat Widening from Plaza Drive to Headington Road," which is eligible for reimbursement under the Missouri Flat Master Circulation and Financing Plan (MC&FP) per the Project's Mitigation Measures and as part of CIP Project #36105066.
On August 30, 2022 (Legistar file 22-1539), the County and LLL & A, LLC (Developer) entered into Road Improvement Agreement (RIA) #21-54981 defining the Project's construction requirements. The Project was accepted as complete on September 10, 2024 (Legistar file 24-1494), and is currently under warranty pending completion of minor outstanding punch list items.
On August 29, 2023 (Legistar file 23-1456), Transportation presented a Reimbursement Agreement between the County and Developer for the Board’s approval. The Board directed staff to utilize an alternative reimbursement schedule, and approved a revised Reimbursement Agreement on September 15, 2023 (Legistar file 23-1683). Based on initial Project cost estimates, the total reimbursable amount was estimated to be $2,195,444.44; the actual reimbursable costs will be determined upon review and approval of the submitted costs by County staff, including Transportation, Chief Administrative Office, County Counsel, and Auditor departments.
Based upon the desire to keep a minimum balance of $200,000 in the MC&FP Fund as a reserve, the payment schedule in the Reimbursement Agreement as approved is:
First Reimbursement Payment = Up to $200,000.00
Second Reimbursement Payment = Up to $1,000,000.00
Third Reimbursement Payment = $995,444.44, representing the remaining balance due based upon the estimated balance
Total = $2,195,444.44
This projected schedule was based upon the existing cost estimates for the Project. Should the actual costs be greater than the estimate, the Agreement allowed for the Third Payment to be up to $1,000,000, with an additional Fourth Payment if necessary up to the remaining balance due.
Subsequent to approval of the Reimbursement Agreement, the Developer requested an accelerated reimbursement schedule. Due to the construction bids for the Diamond Springs Parkway Phase 1B project coming in lower than anticipated, the funds available for the first reimbursement payment have increased. The proposed Amendment changes the first payment from $200,000 to $800,000. This proposed change to the reimbursement schedule will not affect the Diamond Springs Parkway Phase 1B project delivery.
Additionally, the Developer requested to assign a portion of the reimbursement to its contractor, Doug Veerkamp General Engineering, Inc. The proposed Amendment recognizes this assignment, which is allowed under the terms of the Reimbursement Agreement, and allows for costs that have been incurred but may have not yet been paid.
ALTERNATIVES
The Board could choose not to approve the Amendment to the Reimbursement Agreement, in which case the terms of the Reimbursement Agreement as currently approved would remain in effect.
PRIOR BOARD ACTION
See Discussion / Background section above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this agenda item. The reimbursements under this agreement will be paid from MC&FP account. The MC&FP Account will contain sufficient funds to reimburse the Project on the projected schedule described above, assuming tax revenues deposited into the fund follow historical trends of approximately $1,200,000 per year. Per the terms of the revised Reimbursement Agreement, a minimum balance of $200,000 is to be maintained in the MC&FP Account, and reimbursement payments will be adjusted accordingly if insufficient funds exist in the MC&FP Account at the time reimbursement is due.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Obtain Chair's signature on two (2) original copies of the Amendment.
2) Return one (1) fully executed original Amendment to the Department of Transportation, attn: Lindsay Tallman, for additional processing.
STRATEGIC PLAN COMPONENT
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation