For City Council Meeting [November 15, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Alberto Paiva, P.E., Director of Engineering Services/City Engineer
Title
Request City Council to: (1) Approve a Cooperative Agreement with San Bernardino County in the amount of $6,807,568 Regarding the Cedar Avenue/Interstate 10 Freeway Interchange Project; and (2) Authorize the City Manager to Execute all Documents.
(ACTION)
.Body
BACKGROUND:
The County of San Bernardino (County) is functioning as the Sponsoring Agency to improve Cedar Avenue at the Interstate 10 (I-10) Interchange in the unincorporated community of Bloomington (the Project). The Project will improve Cedar Avenue from Bloomington Avenue to Slover Avenue, widen Cedar Avenue between Bloomington Avenue and Orange Street, add turn lanes; widen the I-10 Overcrossing and replace the Union Pacific Railroad (UPRR) at Cedar Avenue overhead; and modify the existing freeway ramps.
The Measure I 2010-2040 Expenditure Plan and the San Bernardino County Transportation Authority (SBCTA) Nexus Study (Nexus Study) identified freeway interchange projects as eligible for partial funding using Measure I 2010-2040 revenues. The Project and the associated expenditures are included in the SBCTA Measure I 2010-2040 Nexus Study and are eligible to receive Measure I 2010-2040 Valley Freeway Interchange Program (MIVFIP) funds.
The SBCTA’s Measure I 2010-2040 Strategic Plan sets forth the policies by which the expenditure of Measure I funds are managed, and several of the interchange projects listed in the MIVFIP require shared development contributions from one or more agencies.
The County, City of Rialto and the City of Fontana (Fontana) each have development mitigation fair-share requirements for the Project. The SBCTA Nexus Study requires the agency with the majority share of development mitigation to be the Sponsoring Agency for the Project. The County has the majority share and has agreed to be the responsible agency to coordinate the minority share development mitigation fair-share contributions from Fontana and Rialto as identified in the Nexus Study.
The SBCTA Nexus Study determined the fair-share percentages of the total estimated interchange improvement costs for the Project as: SBCTA Public Share - 70% and Local Development Mitigation Contribution - 30%. The Local Development Mitigation Contribution of 30% is shared among the following local jurisdictions: County - 68.6%, Rialto - 19.5%, and Fontana - 11.9%.
Upon approval, the Development Mitigation Cooperative Agreement sets the terms and financial responsibilities to fund development mitigation fair-share requirements for the Project Approval and Environmental Document (PA&ED), Plans, Specifications and Estimate (PS&E), Right of Way (ROW), Project Management (Management), and construction phases of the Project. The total estimated Project cost is $113,319,000.
SBCTA has agreed to serve in the capacity of overall Project Management and is to be reimbursed up to $500,000 for such services.
The Local Development Mitigation contribution, the 30% portion of total Project costs shared between the County, Rialto and Fontana, is estimated to be $33,603,600 plus $807,000 for Project PA&ED costs incurred prior to April 5, 2006 (Prior Costs) and $500,000 for Management costs, for a total of $34,910,600; and SBCTA Public Share is estimated to be $78,408,000, which excludes Prior Costs and Project Management costs.
The County has fully funded and completed the Project PA&ED phase with a total cost of $1,366,000, and by fully funding the PA&ED phase, the County has advanced the fair shares for SBCTA, Rialto, and Fontana for that phase of the Project.
On July 8, 2014, the County and the State of California Department of Transportation (Caltrans) entered into Contract No. 08-1589 (County Contract No. 14-603) covering the Project PS&E phase, wherein Caltrans administers the Project PS&E phase and provides the relevant documents to County for County’s use, at an estimated cost of $4,000,000.
This Agreement specifies Rialto’s fair-share of the Project’s Prior Costs, PA&ED, PS&E, ROW, Construction and Management costs; and repayment of the advanced payments made by County on the behalf of Rialto for the Project’s PA&ED, PS&E and Management costs. Separate agreements with be made between SBCTA and Fontana to coordinate the collection of their fair shares of the Project’s costs.
ANALYSIS/DISCUSSION:
As Project-lead, the County will oversee the planning, design, advertisement and construction of the Project. This includes serving as the sponsoring agency for the PA&ED, PS&E, ROW, construction and Management components of the Project. As defined within Appendix G, Development Mitigation Nexus Study, and Appendix J, San Bernardino County Congestion Management Program the County will contribute 68.6% ($23,948,672) of the 30% local-agency development mitigation funding contribution for the Project.
Rialto will contribute 19.5% ($6,8007,568) of the 30% development mitigation funding contribution covering Project Prior Costs, PA&ED, PS&E, ROW, construction and Management costs in accordance with the SBCTA Nexus Study. These funds will come from development impact fees or other sources of development contribution as required by the referenced attachments.
The County has prepared a Cooperative Agreement to accommodate the City’s payments to the County for its share of the Project costs. A copy of the Agreement is included as Attachment 1.
The Project’s construction start date is December 2022 and is anticipated to be completed in April 2025.
Attachment 2 to this staff report includes additional project-specific information on timing, phasing, tentative detouring phasing, etc.
Construction work on the freeway interchange and local streets takes place only within the unincorporated Bloomington area, and not within current Rialto City limits. The City does contribute traffic to the interchange from City limits, however, and under the requirements of the Nexus Study, therefore, has a financial responsibility to the Project.
The estimated two-year Project duration will contain several phases of traffic detouring to accommodate widening of the roadway bridge crossing of the I-10 Freeway, and complete replacement of Union Pacific Railroad bridge. Per the County, tentative project phasing, however, does not stipulate complete closure of Cedar Avenue at I-10, although traffic lanes will be closed during the different project phases.
Should construction project phasing require detour activities within Rialto City limits, staff will coordinate with the County to limit impacts upon vehicular and pedestrian routes. Further, staff will ensure that the County notifies and coordinates with the City, local residents and businesses during any detouring operations within Rialto.
ENVIRONMENTAL IMPACT:
This request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
The County, as Project lead, will prepare the necessary technical studies as part of its environmental evaluation of the Project and will approve and certify the Environmental Document.
GENERAL PLAN CONSISTENCY:
Approval of this action complies with the following City of Rialto Guiding Principles, General Plan Goals and Policies:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policies:
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT:
Operating Budget Impact:
The proposed action will not impact the Operating Budget.
Capital Improvement Budget Impact:
Rialto will reimburse the County on a monthly basis, Rialto’s fair-share of Project Prior Costs, PA&ED, PS&E, ROW and PS&E Management costs, estimated to be $814,554. Reimbursement is to occur during the ROW phase and within 60 days after receipt of an itemized statement of costs incurred by the County. Further, Rialto will reimburse the County on a monthly basis, Rialto’s fair share of Project Construction and Construction Management costs, estimated to be $5,919,771. Reimbursement shall occur during and after Project construction and shall be paid within 60 days after receipt of an itemized statement of costs incurred by the County.
Rialto’s financial responsibility will not exceed 19.5% of 30% (excluding adjustment for PA&ED) of actual Project costs, unless the fair-share percentage is amended in the SBCTA Nexus Study as a result of annexations or other changes to growth figures that affect development mitigation fair-share contributions to the Project. Any change in fair share percentages shall affect only development mitigation contributions subsequent to the amendment to the Nexus Study and shall not be retroactive. Eligible Project expenditures are to be limited to Project-specific work activities and shall not include escalation, interest, or other fees.
Further, in the event that eligible Project costs exceed estimated fair-share amounts, the Project parties will meet and shall work together to attempt to agree upon an amendment to the Project. In no event, however, shall Rialto be responsible for Project costs in excess of the amounts identified herein absent a written amendment to the Agreement that is approved by the Parties.
At Project completion, a Project-specific audit shall be completed by County and/or Rialto, at Rialto’s option and expense. The audit will verify that all funds expended on the PROJECT were used in conformance with this Agreement.
In Fiscal Year 2020/2021 City Council budgeted $7 million for the Cedar Avenue/Interstate 10 Freeway Interchange Project Improvements, Project No. 200801. Funds have been carried forward and are available in the Fiscal Year 2022/2023, in the Traffic Development Impact Fund, Account 250-500-4312-3001.
LICENSING:
A City Business license is not required as no construction work is forecast within current City of Rialto jurisdiction. Should construction phasing dictate that detouring operations take place within City limits, however, the Contractor will be responsible to secure a standard City business license.
RECOMMENDATION:
Staff request that City Council:
(1) Approve a Cooperative Agreement with San Bernardino County in the amount of $6,807,568 Regarding the Cedar Avenue/Interstate 10 Freeway Interchange Project; and
(2) Authorize the City Manager to Execute all Documents