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02-06-2001 - South Azusa Avenue Capacity Enhancement (2)0 City of West Covina Memorandum TO: Daniel.G. Hobbs, City Manager and City Council FROM: Thomas M. Mayer Public Works Director/City Engineer AGENDA ITEM NO. C-8e DATE February 6, 2001 SUBJECT: SOUTH AZUSA AVENUE CAPACITY ENHANCEMENT SUMMARY: The City of West Covina has received a grant of special design funds in the amount of $466,000 from the State through the Metropolitan Transportation Agency (MTA) for the study and design of South Azusa Avenue to provide traffic capacity to the year 2020. There is a total matching fund requirement of $259,000 - with a first year requirement of $37,000. BACKGROUND: On March 21, 2000, the City Council authorized applying to the Metropolitan Transportation Agency (MTA) for a grant of special State funds for designs of regionally significant projects. The intent of the program is to have projects designed and ready for construction in anticipation of future Federal and State funding. Thereby, the lead-time for construction would be minimized once funding was made available. The City of West Covina's application was for, $725,000 to study and design a project to increase the traffic capacity of South Azusa Avenue to meet traffic demands to the year 2020 (a requirement of the grant funding). The application included a local matching requirement of $259,000 which is intended to be funded from Proposition "A" and/or "C" Transit funds. This project is eligible for transit funding in that it will benefit bus utilization of South Azusa Avenue as well as other vehicles. The City's application was approved in July 2000 and staff has been pursuing final approval from MTA to begin the project. The final City action of submitting a pre -approved Letter of Agreement (LOA) is finally ready. Once it is submitted to MTA, a timely final approval to begin the project is expected. DISCUSSION: As discussed during the BKK hearings, the City is committed to the study and design of a project to have South Azusa Avenue meet future traffic demands. The design project will include the required environmental reviews and preliminary appraisals. The study will review the impacts of the BKK development with and without "A" street. It will include consideration of various alternatives for capacity enhancements including a "fly -over" at Amar Road. Staff has already prepared a draft of the Request for Proposal (RFP) and will finalize it once the LOA is submitted to MTA. The timing of the consultant's work will be scheduled so that the City Council can make a decision on the construction of BKK's "A" street before the two-year deadline specified within the development approval for BKK. The work will be spread over two fiscal years with the bulk occurring in 2001-2002. Therefore, the City's matching funds are distributed with $37,000 in this fiscal year and $222,000 in the next fiscal year. The submittal of the LOA contractually commits the City to the entire $259,000. The City Council previously authorized the City Manager to execute an LOA. However, City funding has not previously been appropriated. OPTIONS: The City Council could decide not to proceed with this design project. That decision would forego the $466,000 and would not provide an opportunity to consider an alternative to BKK's "A" Street. WUPITEMBLDE'S FILMAGENDA - 2001\Azusa Ave Capacity Enhancement.doc Daniel G. Hobbs, City Manager and City Council Page 2 — February 6, 2001 FISCAL IMPACT: There are sufficient unapropriated Proposition "A" Transit funds available to fund the current fiscal year's matching fund requirement of $37,000. The funding for next fiscal year's matching fund requirement of $222,000 will be included, using Proposition "A" and/or "C" Transit funds, in the Capital Improvement Program process. As with all reimbursable type funding, the City will advance funds from General Fund Reserves to be repaid as the expenses are reimbursed. RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Establish Project No. SP-01125 for the South Azusa Avenue Capacity Enhancement design. 2. Appropriate $37,000 from unappropriated Proposition "A" Transit funds to Project No. SP- 01125. 3. Authorize the City Manager to sign the LOA which includes a contractual commitment by the City to an additional $222,000 of City matching funds during the 2001-2002 Fiscal Year. Prepared by: Thomas M. Mayer Public Works Director/City Engineer Reviewed and approved by: Artie FieVs Acting Finance Director TMM.jmg 2001-110 r WUPITEMBLDE'S FILMAGENDA - 2001\Azusa Ave Capacity Enhancement.doc