Title
Department of Transportation recommending the Board authorize the Chair to sign a Budget Transfer adjusting the Capital Improvement Program (CIP) budget for Fiscal Year 2023-24 to accommodate the new project budgets and increased 2023-24 expenses for the following previously approved projects in the 2023 CIP:
1) Authorize the use of an additional $355,156 in Regional Surface Transportation Program (RSTP) Advance Exchange funds and $1,655,156 in Traffic Impact Fee (TIF) - Zone B funds for the construction phase of the Enterprise Drive and Industrial Drive Intersection Improvements Project, CIP 36105052/36105053;
2) Authorize and advance $2,085,888 in TIF - Zone C funds for the design, right of way, and construction phases of the Harvard Way and Clermont Way Intersection Improvements Project, CIP 36105080;
3) Authorize and advance $3,165,150 in TIF - Zone C funds for the design and right of way phases for the US 50 / Latrobe Road / El Dorado Hills Boulevard Interchange Improvements - Phase 2B Project, CIP 36104001;
4) Authorize and advance $10,396,678 in TIF - Highway 50 funds and a decrease of $250,000 in Regional Surface Transportation Program (RSTP) Federal Funds for the planning, design, right of way, and construction phases for the US 50 / Ponderosa Road Interchange - Durock Road Realignment Project, CIP 36104008; and
5) Authorize an advance and decrease of $6,523,474 in TIF - Highway 50 funds and a decrease of $250,000 in RSTP Federal Funds for the planning, design, right of way, and construction phases for the US 50 / Ponderosa Road Interchange - North Shingle Road Realignment, CIP 36104009. (4/5 vote required) (Supervisorial Districts I, III, and IV)
FUNDING: Regional Surface Transportation Program (RSTP) Advance Exchange Funds, Traffic Impact Fees (TIF) - Zone B, TIF - Zone C, TIF - Highway 50, and Regional Surface Transportation Program (RSTP) Federal Funds - Caltrans Local Assistance. (Federal and Local Funds).
Body
DISCUSSION / BACKGROUND
On June 6, 2023, Item 56, Legistar 23-0851, the Board adopted the 2023 CIP. The CIP is the long-range plan for all Department of Transportation (Transportation) individual capital improvement projects, including cost estimates, schedules, and funding sources. It provides strategic direction for capital projects over a current year, 5-, 10- and 20-year horizon. The CIP is used as a planning tool and is updated annually as new information becomes available regarding Board priorities, funding sources, project cost estimates, and timing. During the year, changes to the projects in the CIP are inevitable due to inflation, scope changes, and the programming of new funding.
On June 6, 2023, Item 43, Legistar 23-1020, the Board awarded the construction contract for the Enterprise Drive and Industrial Drive Intersection Improvements Project, CIP 36105052/36105053, to complete construction of the project. Due to inflation, the bids for the project were higher than anticipated, creating a funding shortfall, as stated in Legistar# 23-1020. Transportation requests a budget amendment to account for the shortfall, transferring $355,156 in RSTP Advance Exchange funds and $1,655,156 in TIF - Zone B funds ($355,156 for Enterprise Drive and $1,300,000 for Industrial Drive) to the Road Fund to complete the project this Fiscal Year (FY) 2023-24. These funds are needed to complete the construction currently in progress. The total increase of $355,156 in RSTP funds and $1,655,156 in TIF - Zone B funds are listed in the attached budget amendment request (Attachment C and illustrated in Attachment B)
The El Dorado Union High School District (EDUHSD) is currently working to improve traffic circulation on their Oak Ridge High School campus in El Dorado Hills and increase pedestrian safety. Their project will be in conjunction with Transportation’s Harvard Way and Clermont Way Intersection Improvements Project, CIP 36105080. Based on recent traffic count data and an analysis of traffic operations, the Harvard Way and Clermont Way intersection meets the criteria for the pedestrian traffic signal warrant and qualifies as a Tier 2 - Future Deficiency project within the “Intersection and Safety Improvements” line item of the TIF Program. As such, 100% of project costs can be funded by the TIF Program. The school district plans on completing its project within the next year, and Transportation is partnering with them to complete the traffic signal for the project. Transportation requests a total budget amendment increase of $2,085,888 to increase TIF - Zone C funds to complete the design, right-of-way, and construction phases at the same time the school completes its project this FY 2023-24 through FY 2024-25. $1,280,888 of the total TIF - Zone C increase is listed in the attached budget amendment request (Attachment C) and illustrated in Attachment B. Transportation and EDUHSD project partnering and collaboration will save costs for both agencies.
Transportation actively pursues new funding opportunities for several projects throughout the year. Transportation is currently working with the California Department of Transportation (Caltrans) and the El Dorado County Transportation Commission (EDCTC) to program State Transportation Improvement Program (STIP) funding for the current interchange projects. STIP is a multi-year capital improvement program of transportation projects on and off the State Highway System, and programming generally occurs every two (2) years. The recent call for projects from Caltrans and EDCTC has allowed Transportation to program these funds for three (3) CIP projects. The delivery of these projects will need to be expedited to meet the timely use of STIP funds. These projects are currently approved in the 2023 CIP, and Transportation requests advancement of current funds on the projects, which require budget increases for the following:
1) US 50 / Latrobe Road / El Dorado Hills Boulevard Interchange Improvements - Phase 2B Project, CIP 36104001, which will construct improvements to the eastbound on- and off-ramps at the El Dorado Hills/ Latrobe Road Interchange:
a) Advance and increase $3,165,150 in TIF - Zone C funds for the design, right-of-way, and construction phases in FY 2023-24 through FY 2025-26; $235,916 of the total increase is listed in the attached budget amendment request (Attachment C) and illustrated in Attachment B; and
b) Transportation has requested EDCTC and Caltrans to program $10,430,150 in STIP funds for the construction phase in FY 2025-26.
2) US 50 / Ponderosa Road Interchange - Durock Road Realignment Project, CIP 36104008, which includes the realignment of Durock Road to South Shingle Road/ Sunset Lane and widening the eastbound off-ramp:
a) Advance and increase $10,396,678 in TIF - Highway 50 funds and decrease $250,000 in RSTP Federal Funds - Caltrans Local Assistance (LA) for the planning, design, right-of-way, and construction phases in FY 2023-24 through FY 2027-28; $177,294 of the total increase is listed in the attached budget amendment request (Attachment C) and illustrated in Attachment B; and
b) Transportation has requested EDCTC and Caltrans to program $1,322,500 in STIP funds for the construction phase in FY 2027-28.
3) US 50 / Ponderosa Road Interchange - North Shingle Road Realignment, CIP 36104009, which includes the realignment of North Shingle Road to Ponderosa Road, and the realignment of the westbound off-ramp and westbound on-ramp loop to align with Wild Chaparral Drive:
a) Advance $6,523,474 in TIF - Highway 50 funds for the planning, design, and right-of-way phases, which includes a decrease for the construction phase, and a decrease of $250,000 in RSTP Federal Funds - Caltrans LA for the planning, design, and right-of-way phases in FY 2023-24 through 2027-28; $125,000 of the total increase is listed in the attached budget amendment request (Attachment C) and illustrated in Attachment B; and
b) Transportation has requested EDCTC and Caltrans to program $15,675,000 in STIP funds for the construction phase in FY 2027-28.
Advancing these local funds will allow Transportation to continue to work on the planning, environmental, design, and right-of-way phases, which will allow the timely use of the STIP construction funds in the listed fiscal years and complete these projects. The approval of this item will show commitment to EDCTC and Caltrans that these projects are fully funded and will be completed within the necessary deadlines. Updates to the total project expenditures and revenues will be presented in March 2024 when Transportation brings the 2024 CIP workshop to the Board.
The FY 2023-24 CIP budget (Road Fund) will be increased by $355,156 in RSTP Advance Exchange Funds, $1,655,156 in TIF - Zone B funding, $1,516,804 in TIF - Zone C funding, and $302,294 in TIF - Highway 50 funding. The funding increases will be offset by decreases in the contingency budget for each funding source. The budget for expenditures in Professional Services and Construction and Engineering Contracts will increase in order to complete the work. Attachment B lists the projects, their revenue sources, and transfer amounts into the various accounts that represent the budget transfer paperwork (Attachment C).
ALTERNATIVES
The Board could choose not to approve the new budgets into the 2023 CIP and postpone their inclusion to the 2023 CIP; however, this will delay the work on these projects and affect the programming of the STIP funds.
PRIOR BOARD ACTION
See Discussion / Background Section.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
El Dorado County Transportation Commission, Caltrans, the Chief Administrative Office, and the Community Development Services Administration and Finance Division.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no net County cost associated with this item. Funding for projects in the 2023 CIP Book comes from various Federal, State, and Local funding sources for Transportation projects. Approval of this item would update the listed projects to reflect a programming allocation of $27,427,650 in STIP funding. With approval, the CIP budgets will also be updated to reflect a total increase of $355,156 in RSTP Advance Exchange funds, $1,655,156 in TIF - Zone B funding, $5,251,038 in TIF - Zone C funding, $3,873,204 in TIF - Highway 50 funding, and a total decrease of $500,000 in RSTP Federal Funds - Caltrans LA funding.
Advancing the funds for the listed projects may affect other projects in the CIP and may be adjusted as necessary; however, without advancing these projects at this time, the future programming of the $27,427,650 in STIP funding will be jeopardized. Updates to these and other CIP projects will be brought to the Board during the March 2024 CIP workshop.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation