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1FO""% City Council Staff Report
Date: March 19, 2014 CONSENT CALENDAR
Subject: APPROVAL OF PLANS, SPECIFICATIONS AND ESTIMATE AND
AUTHORIZATION TO BID FOR THE TRACT NO. 13257 SEWER
IMPROVEMENTS (PHASE 3), CITY PROJECT NO. 13-26
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
The Public Works and Engineering Department was awarded funding as part of the
City's 2013/2014 Community Development Block Grant ("CDBG") Program to construct
the third phase of the new sewer system within Tract No. 13257 (located west of Gene
Autry Trail and south of Via Escuela). The City also awarded Measure J funds to pay for
on-site (private) improvements: abandonment of septic systems and lateral connections
to the buildings. Approval of this project allows staff to proceed with this third phase of
the four-phase public project, with an estimated cost of approximately $615,600.
RECOMMENDATION:
1. Approve the plans, specifications and working details for the Tract No. 13257
Sewer Improvements (Phase 3), City Project 13-26, and authorize the bid
process.
2. Authorize funding from Measure J for Phase 3, On-Site (Private) Improvements
in the amount of $132,240 (see staff report attached per City Council meeting on
February 19, 2014).
STAFF ANALYSIS:
The Public Works and Engineering Department had proposed to design and construct a
new sewer system to serve the low-to-moderate income neighborhood located west of
Gene Autry Trail and south of Via Escuela (referred to as "Tract No. 13257"). Tract No.
13257 was developed during the 1980's when it was part of unincorporated Riverside
County. At the time, Riverside County did not require extension of public sewer to the
tract, and all 87 homes in Tract No. 13257 had private septic systems, some of which
ITF_Kn PIO.
City Council Staff Report
March 19, 2014- Page 2
Tract No. 13257 Sewer Improvements—Phase 3, City Project 13-26
have begun to fail. Some lower income property owners have had to request financial
assistance from the City for pumping and servicing of their septic systems.
Tract No. 13257 was annexed to the City of Palm Springs in 1991 and includes Amico
Street, Norloti Street, Via Escuela (between Arnico Street and Gene Autry Trail), Jason
Court, Marni Court, and Zachary Court. This is one of a few residential neighborhoods
in Palm Springs that lacks a public sewer system. The City's domestic water supply
provided by Desert Water Agency relies on pumping of water from the underlying
aquifer, the quality of which is threatened by the continued leaking of septage from
septic tanks into the ground. The septic systems in Tract No. 13257 already have or will
soon be reaching the end of their useful design life and the threat to water quality of the
underlying aquifer exists, which can only be mitigated through the installation of a new
public sewer system.
The total estimated cost to install new sewer improvements within Tract No. 13257 to
benefit all 87 properties was $1,200,000 and the project was proposed as a four phased
CDBG funded project. The sewer design for all phases of the project was completed
with the CDBG funding for the first phase.
Four years ago the City of Palm Springs Department of Public Works and Engineering
submitted a request for CDBG funds for the first phase of "Tract 13257 Sewer
Improvements' project which included 21 households and the design of all four phases of
the project for 87 properties. The City Council awarded $266,000 of CDBG funds for the
first phase. The project design for all four phases was completed by Harris & Associates
in July 2011 and was approved by the City Council.
In 2011 the City of Palm Springs Department of Public Works and Engineering
submitted a request for CDBG funds for the second phase of `Tract 13257 Sewer
Improvements" project which included 26 households. The City Council awarded
$160,855 CDBG funds for the second phase, totaling $426,488 of CDBG funds for
phase one and two.
The project was advertised for construction bids including both phase one and phase
two and the bid opening was on August 23, 2011. The lowest responsive, responsible
bidder was G&M Construction with $344,488.25 for phase one (Bid Schedule "A") and
$294,191.75 for phase two (Bid Schedule "B"). Because the CDBG funds were
insufficient for both phases, the City Council approved a Construction Agreement with
G&M Construction only for Phase One, and added a Change Order in the amount of
$72,370.15 for a small part (9 households on Zachary Court) of Phase Two, totaling
$416,858.40.
It was recommended that only a portion of Phase 2 sewer construction work be added
by Contract Change Order (CCO), using unexpended CDBG funds from prior years.
The portion of work added by CCO included only off-site (public) improvements: the
public sewer main and sewer laterals within Zachary Court. No septic tank
z
City Council Staff Report
March 19, 2014- Page 3
Tract No. 13257 Sewer Improvements—Phase 3, City Project 13-26
abandonments or, on-site building sewer extensions were included given the budget
constraints. The project was completed on April 11, 2012.
In 2012 the City of Palm Springs Department of Public Works and Engineering
submitted a request for CDBG funds for the remaining second phase of 'Tract 13257
Sewer Improvements' project which included 17 households. The City Council awarded
$145,689 CDBG funds for the second phase. On-site (private) improvements were
excluded from this phase and all future phases from the use of CDBG funds due to
limited funding. The project was advertised for construction bids and the bid opening
was on October 31, 2012. The lowest responsive, responsible bidder was Borden
Excavating, Inc. with $170,909. The construction which included only off-site
improvements started on January 7, 2013, and was completed on March 6, 2013,
In 2013 the Department of Public Works and Engineering submitted a request for CDBG
funds in the amount of $310,000 for the construction of the third phase of `Tract 13257
Sewer Improvements' project which included 19 households. Due to limited CDBG funds,
City Council awarded only $160,412 CDBG funds for the third phase. At this time, staff
is requesting Council authorization to bid Phase 3, which also includes abandonment of
septic tanks and connection of laterals to the buildings in phase 2 that were not
previously connected.
Section 7.03.040 of the Procurement and Contracting Code requires that for public
projects in excess of $100,000 Council approve and adopt the plans, specifications and
working details, and authorize staff to advertise for construction bids. Approval of the
recommended action will allow staff to proceed with bidding of Phase 3 of this project
which includes on-site improvements of Phase 2.
FISCAL IMPACT:
The Engineers estimate for Phase 3 off-site (public) improvements is $284,600. After
bids are received, unexpended funds in CDBG accounts from prior years, per approval
of the Community Development Administrator, may be used depending on the bid
results. Funds for off-site (public) improvements will be funded from CDBG account
137-4815-63583 and transferred from accounts 137-4810-50000, 137-4812-50000,
137-4813-50000, and 137-4814-50000 as needed.
The Engineer's construction estimate (excluding $135,00 of connection fees) for Phase
2 and 3 on-site (private) improvements is $195,900. Measure J has already funded
$181,000 for phase 2 (account 260-4500-59459) which includes construction,
engineering, contingency, and sewer connection fees. Funds for the total on-site
improvements ($461 K) have been identified in the February 19, 2014 staff report
presented to the City Council and staff is requesting $132,240 be funded and advanced
to the current fiscal year.
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City Council Staff Report
March 19, 2014- Page 4
Tract No. 13257 Sewer Improvements—Phase 3, City Project 13-26
SUBMITTED:
Prepared b : Recommended by:
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avat Khamp ou David J. Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Approved by:
David H. Ready, City ger
Attachment:
1) February 19, 2014 Staff Report: Measure J Capital Projects Funding
2) Presentation to the Measure J Commission: Arnico Tract
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c�<000�p» CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 19, 2014 NEW BUSINESS
SUBJECT: DISCUSSION OF A MULTI-YEAR STRATEGIC ACTION PLAN FOR
CITY CAPITAL IMPROVEMENTS AND QUALITY OF LIFE
ENHANCEMENTS RELATED TO MEASURE J FUNDING AND OTHER
POTENTIAL FUNDING OPTIONS.
FROM: David H. Ready, City Manager
SUMMARY
This is a discussion item for the City Council to consider and give initial direction to the
Measure J Commission and Staff regarding a possible multi-year strategic action plan
for City capital improvements. Ultimately, levels of funding (e.g. miles of streets paved,
scope of Library remodel, etc.), funding sources (e.g. Measure J, Measure A, Library
Trust Fund, General Fund, fund raising) and funding types (bonding, leasing, "pay as
you go") are policy decisions for the City Council to consider in developing a multi-year
capital improvement budget.
RECOMMENDATION:
Direct the City Council Subcommittee, Measure J Commission and Staff as appropriate.
STAFF ANALYSIS:
Background
The City of Palm Springs voters approved Measure J in November, 2011 — a 25 year
1% Sales Tax. As a general policy matter, the City Council determined that these new
tax revenues would support the City's efforts to revitalize the former Downtown Fashion
Plaza site, and provide revenues for citywide capital improvements and quality of life
projects. To date, the City Council has approved over 60 Measure J projects
(approximately $22 million) that are in various stages of implementation (see attached;
Exhibit A).
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City Council Staff Report
February 19, 2014 -- Page 2
Discussion of Multi-Year Capital Improvement Budget
As part of an outreach initiative to the community in determining a range of capital
improvement projects important to residents, City Council tasked the Measure J
Commission to create a "request for ideas" application process. Subsequently, from
input received, the Measure J Commission was able to make a set of
recommendations, to the City Council, that resulted in approved projects as noted
above.
Several of the larger capital projects such as street resurfacing and repairs, the Library
renovation project and land acquisition for parks/recreation improvements, etc., require
a longer term strategy to implement. Hence, the City Council appointed an Ad Hoc
Sub-Committee (Hutcheson/Lewin) to meet with a Sub-Committee of the Measure J
Commission to explore a process going forward that would address these types of
multi-year strategic planning and funding projects.
The two Sub-Committees have met formally — and with staff- resulting in this discussion
item coming before the City Council. The general conclusion was the importance of
City Council's direction on the level of funding to be provided for several of the larger
projects — from a multi-year perspective — which would be instructive for the Measure J
Commission and Staff to provide City Council with the next round of project
implementation recommendations. For example, City Council policy direction on the
scope of the Library remodel would ultimately impact the funds available toward the
number of miles of streets to be resurfaced over the next several years. Moreover, a
multi-year strategic planning approach could include various funding options and
mechanisms to achieve a wider range of the City Council's project goals for the City.
Projects
The nature of certain types of capital improvement projects requires a strategic planning
approach to match funding levels and organizational capacity to successfully implement
the desired result. Several of the planned projects (City Council approved, Measure J
recommended, and community suggestions) fall into this category. A primary example
being the citywide need for street resurfacing which impacts every neighborhood
resident, tourist and visitor to Palm Springs. This year, $1 million in Measure J funds
have been recommended and approved to resurface approximately 2 miles of streets.
However, with a multi-year strategic budget plan, the City Council may choose between
several potential options which could result in resurfacing approximately 30-35 miles of
city streets over a three year time period utilizing a Measure A Street Fund bonding
program in conjunction with Measure J funds.
With regard to the Library renovation project, the consulting firm Group 4 Architecture,
Research and Planning, Inc., outlined at a recent City Council meeting their remodel
project scope and cost of approximately $15 million. The City Council requested
additional information of alternate scope and cost remodel scenarios. The consulting
firm is finalizing their subsequent review and will have additional options for Council's
consideration at your meeting.
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City Council Staff Report
February 19, 2014-- Page 3
Discussion of Multi-Year Capital Improvement Budget
Additionally, there is a range of other projects that will be affected — in terms of funding
priority and timing — depending upon how a multi-year budget is implemented.
Examples include the Non-Motorized Transportation Plan (with a significantly expanded
bicycle lane program); a new Soccer Park, public safety buildings (new Fire Station and
Police Station renovations); acquisition of land for economic development/
preservation/expanded park locations; trolley transportation program; Convention
Center improvements; the new Downtown Event Center, etc.
FISCAL IMPACT:
The Finance Director has estimated the current fiscal year Measure J revenue at
$11 million, with 2% increases in growth annually. The City's debt obligation for the
new Downtown Palm Springs project and property maintenance/operating expenses of
public areas (e.g. parking structures) is approximately $3.6 million annually. Based
upon currently approved projects (for years 2012-2014) and debt obligations, the
Finance Director is projecting approximately $7.2 million in 2015 and $8.1 million in
2018 available for new projects.
In addition to Measure J funds, other sources of revenue for projects could include
bonding/debt opportunities, Measure A Street Funds, General Fund and the Library
Trust Fund (for Library use only, and at the discretion of the Library Commission).
Suzanne Harrell, the City's bonding and financial advisor will be at the meeting to
present information on the possibilities and limitations of debt borrowing, specifically as
it relates to street resurfacing (in conjunction with Measure A Street Funds) and the
Library, which are potential candidates for longer term debt consideration.
As outlined above, there is a level of funding complexity to achieve the City's capital
improvement goals, both short and long term. This initial City Council discussion and
policy direction on a multi-year strategic capital budget plan will allow the Measure J
Commission and Staff to plan accordingly and provide additional information to the City
Council as we move into the new 2014-2015 Fiscal Year budget process.
DAVID H. READY
City Manager
Attachments:
Summary of Available Measure J Funds
2013 Approved Capital Projects
2014 Approved Capital Projects
i
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Multi-Year Summary of Available Measure J Funds
City of Palm Springs
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Beginning Balance $9,788,824
Projected Sales Tax Revenue $11,000,000 $11,200,000 $11,400,000 $11,600,000 $11,800,000
+2% +2% +2% +2%
Reserves:
Project Contingency Reserve $1,007,998
Projects Under Discussion/Study 770,000
Unscheduled Capital Projects 650,000
Net Reserves (2,427,998)
Total Available Funds $18,360,826 $11,200,000 $11,400,000 $11,600,000 $11,800,000
Existing Budget Obligations.,
Debt Service $3,200,000 $3,200,000 $3,200,000 $3,200,000 $3,200,000
Downtown Prop Maint&Other Expenses 328.443 350,000 375,000 400,000 425,000
Multi-Year Projects:
iHub Accelerator Campus $500,000 $250,000 $250,000 $0 $0
Architecture and Design Museum 283,334 283,333 283,333 0 0
PSHS Auditorium Remodel 291,000 291,000 0 0 0
Property Acquisition(near Chino Cone) 1,000,000 1,000,000 1,000,000 0 0
Tahquitz Median 1,030,000 1,030,000 0 0 0
Total Multi-Year Projects $3.104,334 $2,854,333 $1,533,333 $0 $0
2012-2013&2013-2014 Single-Year Projects $11.728,049 $0 $0 $0 $0
Total Existing Budget Obligations $18.360,826 $6,404,333 $5,108,333 $3,600,000 $3,625,000
Net New Funds Available for Budgeting $0 $4,795,667 $6,291,667 $8,000,000 $8,175,000
Add Back 2013-2014"Reserve"Holding Amounts 2,427,998
Total Funds Available for Budgeting $0 $7,223,665 $6,291,667 $8,000,000 $8,175,000
' Note: The Director of Finance is assuming a 2%annual growth in revenues in the 2nd through the 5th year.
2/18/2014 Measure 12014-1015 Funding Projection 102-19-2014);Multi-Year Funds Availability Q
Measure J Capital Projects Funding by Fiscal Year
City of Palm Springs
2013 Projects Budaet
1 Streets-Reconstruction, Overlay, Slurry Seal $3,000,000
2 Pavilion Kitchen Equipment Replacement 14,000
3 Desert Highland Light Poles/Fixture Replacement 80,000
4 Ruth Hardy Park Security Path Lighting 50,000
5 Desert Highland Small Parking Lot Repairs 40,000
6 Dog Park Improvements 10,000
7 Sidewalk Replacement in Parks Citywide 80,000
8 Demuth Park-Softball Field Wiring Replacement 40,000
9 Demuth Community Center-Gymnasium Floor Repairs 40,000
10 Sunrise Park Water Valve Replacement 50,000
11 Demuth and Ruth Hardy Parks-Parking Lot Repairs 165,000
12 Stadium Fencing Repairs 20,000
13 Replace 20 Trees-Palm Cyn, Indian Cyn, Sunrise Park 125,000
14 Village Green- Electric Meter Panel Replacement 25,000
15 Downtown/Uptown Crosswalks 150,000
16 Light Poles-Raise Footings-Citywide 150,000
17 Traffic Signal&Queing Study(Sunrise @ Ralph's Center) 10,000
18 Lighting-Replace Underground Electrical-Phase One 100,000
19 New Fire Station#5 Site Location and Design Study 50,000
20 Downtown PS Bond 3,000,000
21 Downtown Maintenance and Other Expenses 137,555
Total 2013 Project Expenses $7,336,555
2/18/2014 Measure J Approved Projects List(02-19-2014) 3:27 PM J
Measure J Capital Projects Funding by Fiscal Year
City of Palm Springs
2014 Projects Budaet
22 Welwood Memorial Library Renovation Project $582,446
23 Uptown Crosswalk Project 126,000
24 iHUB Accelerator Campus 500,000 "
25 Architecture and Design Museum 283,334
26 Firefighting Support Unit 350,000
27 Downtown Palm Springs Development 365,000
28 Swim Center Deck 180,000
29 Swim Center Underwater Lights 12,000
30 Bike Crossing at Date Palm(50% paid for by Cathedral City) 15,000
31 Shade Cover at Mizell Senior Center 25,000
32 Trailhead Waste 5,000
33 Airport Back-up Generator(1/2 paid for by Airport) 62,500
34 Security Cameras at Park Restrooms 75,000
35 Baristo Sidewalk 25,000
36 Palm Springs High School Auditorium Remodel 291,000
37 Visitors'Center Landscaping 25,000
38 Library Computers 47,800
39 Library Planning 150,000
40 Property Acquisition (near Chino Cone) 1,000,000
41 JO Jessie DHUC-Gym Air Conditioning 175,000
42 Entry Way Signs 150,000
43 Police Training Center Upgrades 100,000
44 Building Department Microfilm to Internet 110,000
45 Veteran's Memorial 12,960
46 Police Records Area -Redesign and Renovate 250,000
47 NMTP/Biking Issues 1,004,544
48 Tahquitz Creek Master Plan 300,000
49 Police- Repave Rear and Front Parking Lots 300,000
50 Fire Station#4-Roof Replacement 32,500
51 Fire Station#4-Chiller Replacement 60,000
52 Police Department Initial Design-Remodel Building 100,000
53 Fire Stations Security Cameras 27,000
54 Fire Stations Keyless Entry System 50,000
55 Uptown Treewell Irrigation System 45,000
56 Village Green Improvements 50,000
57 Pavilion Gymnasium Floor Repair and Refinish 30,000
58 City Hall Security Design and Installation 100,000
---�69 Arnico Tract Sewer Improvements($461K 3-year total) 181,000
60 Street Repair 1,000,000
61 City Hall Parking Lot-Resurfacing 700,000
62 Lighting (Replace underground electrical, Phase 2) 800,000
63 Downtown PS Bond 3,200,000
64 Downtown Maintenance and Other Expenses 275,000
65 Tahquitz Canyon Median 1,030,000
66 Trolley Study 25,000
Reserve Fund(10%target) 1,007,998
Total 2014 Project Expenses $15,236,082
Commission Recommended Set-Aside- Projects for Further Study $1,420,000
(Palm Cyn-UptownlDowntown lighting&street improvements,Cultural Center,Ruth Hardy Pavilion,
Trolley Shuttle,South Palm Springs Gateway Entry,South Desert Park,Informational Kiosks,Northern Trail)
"Multi-Year Project
2/18/2014 Measure J Approved Projects List(02-19-2014) 3:27 PM 10
City of Palm Springs
Presentation to the Measure J Commission
Arnico Tract
The Arnico Tract project is the extension of the sanitary sewer system to a lower-income
subdivision which was developed with private septic tanks in the 1980's when the area was part
of the unincorporated County, and later annexed into the City in 1991.
The first several phases of the sewer line extension were funded through the City's CDBG
entitlement; however, the reduction in the City's CDBG allocation by the Federal government for
the past two years has dramatically impacted the ability of the City to award CDBG awards in
the future phases of these sewer improvements.
The project was divided into four phases. The Off-Site Improvements are basically the sewer
lines and lateral connections themselves located within the public right of way. In the first phase
of the project, the City funded the Off-Site costs (sewer lines) plus the on-site associated costs,
such as the City's Sewer Connection Fees, the costs of abandoning the existing septic tanks
and undertaking the on-site restorations and hookups.
Since the first phase, the City has only been able to fund the Off-Site costs, leaving the balance
of the costs to the homeowners. In many cases it has meant that a homeowner has a new
sewer line in the street but is still connected to his failing septic tank because of the cost.
An initial request to the Measure J Commission was for approximately$181,000 to complete the
Phase II On-Site costs, plus the $132,240 to complete the Phase III On-Site Costs. Phases I
and II (Off-Site only) have been completed and Phase III (Off-Site only) is out to bid using
CDBG. These additional funds would allow all of the homeowners in the area to be treated
equitably.
The phases are:
Completed
Phase 1 $530,181 On- and Off-Site Improvements
Phase II $173,585 Off-Site Improvements Only
Goinc to Bid
Phase III $160,412 (est.) Off-Site Only
Not Yet Funded (Requested from Measure I)
Phase II $180,960 On-Site Improvements
Phase III $132,240 On-Site Improvements
Phase IV $146,160 On-Site Improvements
$459,360
Additional Unfunded Phase
Phase IV $175,310 Off-Site Improvements Only
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