HomeMy WebLinkAboutA005 - Council Action Form dated March 28, 2017 ITEM # 31
DATE: 3-28-17
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. 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 Department of
Transportation District 1, Walmart, and other local businesses) generated plans and
specifications. 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.
On November 16, 2016, bids for the project were received as follows:
EB1tlder ;Bitl.Amount:
Engineer's Estimate $907,263
Con-Struct, Inc. $1,150,026
A revised budget summary of the project funding is shown below:
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Revenues Expenses
U-STEP $400,000 Design $87,873
TSIP $450,000 Construction $1,150,026
City.of Ames $215,968 Contingency (20%) $230,005
Walmart $215,968 Administration $30,000
Hunziker $215,968 Total $1,497,904
Total $1,497,904
1/3rd Share Subtotals
Design $29,291 Design $87,873
Construction $186,677 Construction $1,410,031
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. However, until a construction
contract has been approved, 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. The Capital Improvement Plan identifies $210,000 from Road Use tax.
Public Works has confirmed with the Finance department that the City has the required
additional funds coming from G.O. Bond savings in past street projects.
COST SHARING (EQUAL-SHARE FUNDING) AGREEMENT:
Staff worked with the City Attorney and representatives from Hunziker and Walmart
corporations (the developers) 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 the agreed budget amount, as shown above, the City will need to cover
the all additional costs.
ESCROW AGREEMENT:
Walmart insisted on establishing an escrow account and agreement for deposit,
management, and withdrawal of the developer funds. This escrow will be through First
National Bank in Ames, Iowa. An escrow agreement containing specific terms also
needs Council approval.
CROSS-ACCESS EASEMENT AGREEMENT:
Staff, again working with the City Attorney, has drafted a cross-access easement on
Walmart and neighboring properties that utilizes their parking lot to connect the
proposed traffic signal at S. Duff Avenue to the businesses on the East side of S. Duff
Avenue, both north and south of the new signal. The easement area connects directly to
the cross-access easement that has already been established on U-Haul's property. As
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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. 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.
ALTERNATIVES:
1. For the 2016/17 US 69 Improvements Program (S. Duff Avenue Safety and Access
Project):
a. Approve the cost sharing and escrow agreements with Hunziker and Walmart for
the construction phase.
b. Approve the cross-access easement agreement.
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 (LRTP), is intended to address the safety and efficiency of traffic
along arterials with the highest congestion and crashes as in the case of 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. 5th Street Extension,
intersection improvements at S. 5th Street & S. Duff, and S. 16th Street & S. Duff
Avenue, as well as, Adaptive Signal Control along S. Duff Avenue (LRTP No.66), and
Adaptive Signal Control along Lincoln Way (LRTP No.69). 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.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, as described above.
The recommendation to move forward with the project is with the assumption
that all of the parties are in support of the needed agreements. Therefore, if the
cross-access easement and the cost sharing agreements are not signed and the
escrow agreement, at least, has verbal support by the parties by the beginning of
the March 28th City Council meeting, the staff recommendation will then need to
be Alternative No. 2, thereby rejecting the bids and. cancelling the project.
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