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HomeMy WebLinkAboutA003 - Council Action Form dated January 10, 2017 - Tabled to January 24, 2017 a� lei + ITEM# 27a-c DATE: 1-10-17 COUNCIL ACTION FORM SUBJECT: 2016/17 US 69 IMPROVEMENTS PROGRAM (S. DUFF AVENUE SAFETY AND ACCESS PROJECT) BACKGROUND: On October 11, 2016, City Council approved plans and specifications for the 2016/17 US 69 Improvements Program (S. Duff Avenue Safety and Access Project) from South 5th Street to the Squaw Creek Bridge. Council also set the letting date for November 16, 2016. On November 22, 2016, City Council accepted the report of bids and delayed the award of the project to allow staff time to work with Walmart and Hunziker to finalize an equal-share funding agreement and a cross-access easement agreement on Walmart's property. As a reminder, this project involves the installation of raised median between S. 5th Street and the Squaw Creek Bridge, a new traffic signal approximately 1/8th of a mile south of S. 5th Street, and the reconfiguring Walmart's west parking lot area along with their South Duff Avenue frontage to allow for cross access for the east side businesses. It should be noted that this project is anticipated to have the following safety and operational benefits: Benefit % Change Effect Notes: Safety B/C -39% Reduction Present value of avoided crashes (Benefit) _ $1,500,493; Project Cost= $1,150,026 (B/C = 1.30:1) Travel Time -24% Reduction Average Speed (mph) from 15 MPH to 20 MPH; Likelihood of stopping drops from 29% to 23% Fuel Economy 22% Increase Estimated Average Fuel Consumption from 12.4 mpg to 15.1 mpg CGA, the City's engineering consultant, with input from the City, Iowa DOT District 1, Walmart, and other local businesses generated plans and specifications that meet the technical requirements of the respective parties. It is important to note that work on the street right-of-way (US highway 69) is under the jurisdiction of the Iowa DOT, whereas work on Walmart's property will follow City zoning requirements to the maximum extent possible while still achieving the goals of the project. Staff met with District 1 at the Iowa DOT to discuss phasing and staging options for the project that have the potential to provide cost savings in the future. However, until a contractor has been hired, staff cannot confirm these savings at this time. Therefore, if this project is to move forward, the funding for the full cost of the improvement must be identified. Funds for this project will come from savings in past G.O. Bond funded 1 projects which are estimated to be $73,467 and the $85,000 in Road Use Tax that has already been budgeted. On November 16, 2016, bids for the project were received as follows: Engineer's Estimate $907,263 Con-Struct, Inc. $1,150,026 A revised budget summary of the project funding is shown below: Revenues Expenses U-STEP $400,000 Design $87,873 TSIP $450,000 Construction $1,150,026 City of Ames $158,467 Contingency (5%) $57,501 Walmart $158,467 Construction Admin (est.) $30,000 Hunziker $158,467 Total $1,325,400 Total $1,325,400 EQUAL-SHARE FUNDING AGREEMENT: Staff worked with the City Attorney and representatives from Hunziker and Walmart corporations to draft a funding agreement that reflects the increased cost from the bid received on November 16, 2016. The agreement obligates the City, Hunziker, and Walmart to an equal share of the local match as shown in the table above. Staff can approve up to 20% in change orders before requiring City Council approval, which follows City of Ames purchasing polices. If change orders were to exceed this limit, an addendum to the funding will be needed to cover the additional costs. CROSS-ACCESS EASEMENT AGREEMENT: Staff, again working with the City Attorney, has drafted a cross-access easement on Walmart's property that utilizes their parking lot to connect the proposed traffic signal along S. Duff Avenue to businesses on the East side of S. Duff Avenue. The easement area connects directly to the cross-access easement that has already been established on U-Haul's property. As a reminder, the cross-access easement on U-Haul's property was secured on August 9, 2016. As part of the contract rezoning, U-Haul is required to construct a driveway within the easement area connecting from Walmart's property, south, to the last property north of Squaw Creek. The cross access agreement will have three parties (Walmart, U Haul and the City) so that the easements create contiguous access for the public across the two burdened properties. Standard provisions of the City Code require completion within two years from the date of rezoning contract approval (September 13, 2016). However, U-Haul has submitted a site plan and plans to complete the work in 2017. z ALTERNATIVES: 1. For the 2016/17 US 69 Improvements Program (S. Duff Avenue Safety and Access Project): a. Approve the equal-cost sharing agreement with Hunziker and Walmart for the construction phase. b. Approve the cross-access easement agreement with Walmart and UHaul. c. Award the project to Con-Struct, Inc., of Ames, Iowa, in the amount of $1,150,026. 2. Reject the bids and direct staff to cancel or make modifications to the project. CITY MANAGER'S RECOMMENDED ACTION: This project, in addition to many of the projects identified in the 2040 Long Range Transportation Plan, is intended to address the safety and efficiency of traffic along arterials with the highest congestion and crashes such as Lincoln Way (near Downtown) and S. Duff Avenue. The improvement is expected to work together with other projects such as the S. Grand Avenue Extension, the S. 5t" Street Extension, intersection improvements at S. 5t" Street & S. Duff, and S. 16th Street & S. Duff Avenue, as well as, Adaptive Signal Control along S. Duff Avenue, and Adaptive Signal Control along Lincoln Way. By awarding the project, work will proceed as soon as weather permits in Spring 2017. The anticipated completion date will be before October 15, 2017. Staff is hopeful that all parties will have signed the necessary agreements prior to the City Council meeting. Assuming that this occurs, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. However, if all signed documents are not received by January 10, 2017, the staff will recommend that the Council reject the approval of the construction contract with Construct since their bid will no longer be valid after January 12, 2017. 3