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Staff Report.Measure B Reallocation PREPARED BY: Nicolle Burnham Director, Parks and Public Works Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 06/06/2023 ITEM NO: 11 DATE: May 26, 2023 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Authorize the Town Manager to Close the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) and: a. Request that VTA Reallocate Measure B $1,734,250 Funding; b. Authorize an Expenditure Budget Transfer in an Amount of $169,000 from Available General Fund Appropriated Reserve (GFAR) Funds in Project No. 813-0238 to Project No. 832-4505 - Los Gatos Creek Trail to Highway 9 Connector Project; and c. Authorize an Expenditure Budget Transfer in an Amount of $432,926 from Available GFAR Funds in Project No. 813-0238 to Project No. 813-0241 - Kennedy Sidewalk - Los Gatos Boulevard RECOMMENDATION: Authorize the Town Manager to Close the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) and: a. Request that VTA reallocate Measure B $1,734,250 funding; b. Authorize an expenditure budget transfer in an amount of $169,000 from available General Fund Appropriated Reserve (GFAR) funds in Project No. 813-0238 to Project No. 832-4505 - Los Gatos Creek Trail to Highway 9 Connector Project; and c. Authorize an expenditure budget transfer in an amount of $432,926 from available GFAR funds in Project No. 813-0238 to Project No. 813-0241 - Kennedy Sidewalk - Los Gatos Boulevard. BACKGROUND: In June 2020, the Town of Los Gatos was awarded a Measure B grant from the Valley Transit Authority (VTA) in the amount of $1,734,250 for the design and construction of the Winchester Boulevard Complete Streets Project. In addition, the Town has allocated a total of $743,251 PAGE 2 OF 4 SUBJECT: Authorize the Town Manager to Request VTA Reallocate Measure B Funding and Approve the Reallocation GFAR Associated with the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) DATE: May 26, 2023 BACKGROUND (continued): from the General Fund Appropriated Reserve (GFAR) for this project, of which $601,926 remains. The total engineer’s estimate for this project is in excess of $72 million. During development of the Capital Improvement Program (CIP) budget for 2023/24 – 2027/28, staff suggested that design and construction of the Winchester Boulevard Complete Streets Project not be pursued at this time and that the existing funds be reallocated to other projects that are in process but not fully funded. At its March CIP discussion, the Town Council agreed. DISCUSSION: Parks and Public Works staff has reviewed the existing project inventory and considered potential uses for the Measure B and GFAR Funding. Measure B funding can only be allocated to projects that were submitted by the Town during the call for projects. The Town has four projects on the Measure B list, including the Winchester Complete Streets Project. The three other project eligible for Measure B funding are: 1. Los Gatos Creek Trail Connector at Highway 9 (CIP No. 832-4505). This project was bid for construction in April 2023 and costs were higher than anticipated. Staff has been able to identify funding except for $576,672. The existing project funding already includes $693,500 in Measure B funding. Construction awards for this project must be made by August 4, 2023 to prevent the need to rebid the project. 2. Kennedy Road Sidewalks Los Gatos Boulevard to Englewood (CIP No. 813-0241). This project will improve pedestrian and bicycle connectivity to Van Meter Elementary School, Fisher Middle School, and Los Gatos High School. Construction is expected to include Class II bike lanes and sidewalks along the approximately 2,100 feet of Kennedy Road in the project reach. The projected cost of design and construction is estimated to be $3,000,000 to $3,300,000 based on concept planning. The project has existing Measure B funding of $832,300, plus GFAR of $59,400. This leaves a projected funding gap of $2,108,600 to $2,408,300. 3. Highway 17 Bicycle and Pedestrian Overcrossing (CIP No. 818-0803). The design of this project is fully funded through construction. Design funding included $2,754,990 of Measure B funding. At this time there is no funding allocated for construction. The current funding gap for this project therefore is approximately $25 million. PAGE 3 OF 4 SUBJECT: Authorize the Town Manager to Request VTA Reallocate Measure B Funding and Approve the Reallocation GFAR Associated with the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) DATE: May 26, 2023 DISCUSSION (continued): Staff recommends that the Town request that VTA Board of Directors approve reallocation of all Winchester Boulevard Complete Streets Measure B funds to the Kennedy Road Sidewalks project. Using this Measure B funding for the Los Gatos Creek Trail Connector project is not possible since the reallocation of Measure B funding requires an act of the VTA Board of Directors. Such action cannot be taken before the August 4 deadline for construction award. Staff is recommending that the GFAR associated with the Winchester Boulevard Complete Streets project be split, with $169,000 allocated to the Los Gatos Creek Trail Connector at Highway 9, and the remaining $432,926 allocated to the Kennedy Road Sidewalks project. This action will fill the funding gap for the Trail Connector Project and allow the proposed construction award to be presented to Town Council at its meeting for August 1, 2023. CONCLUSION: The Winchester Boulevard Complete Streets project is an important element of the Bicycle and Pedestrian Master Plan, but the limited PPW staffing available for capital projects has prevented the project from moving forward. In addition, the total cost for design and construction exceeds a reasonable amount that the Town currently has available. Therefore, staff recommends that a request be submitted to the VTA to reallocate all Measure B funds from the Winchester Complete Streets Project to the Kennedy Road Sidewalks project. If approved by the VTA Board, a subsequent Town Council action will be needed for the allocation to the Kennedy Road Sidewalks project. Staff recommends that the GFAR associated with the Winchester Complete Streets Project be allocated to Los Gatos Creek Trail Connector and Kennedy Road Sidewalks Project. COORDINATION: This memorandum has been coordinated with the Finance Department, Attorney’s Office and VTA staff. FISCAL IMPACT: The proposed action calls for reallocating existing funding between existing projects. There is no net increase or decrease to overall funding in the capital program as a result of this request. PAGE 4 OF 4 SUBJECT: Authorize the Town Manager to Request VTA Reallocate Measure B Funding and Approve the Reallocation GFAR Associated with the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) DATE: May 26, 2023 FISCAL IMPACT (continued): ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required. Budget Costs GFAR 601,926$ Total Budget 601,926$ Budget Transfer to CIP No. 832-4505 169,000$ Budget Transfer to CIP No. 813-0241 432,926$ Total Costs 601,926$ Remaining Balance -$ Winchester Boulevard Complete Streets Final Design CIP No. 813-0238