HomeMy WebLinkAboutC-3127 - SR73/I-405 Funding Agreement• BY THE Carr COUNCIL January 7, 1997
CITY OF NEWPORT BEACH ry
iMi 2 769
CITY COUNCIL AGENDA
ITEM NO. io
i
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
SUBJECT: AGREEMENT REGARDING FUNDING OF CERTAIN IMPROVEMENTS TO
THE CONFLUENCE OF SR 73 AND 1 -405
RECOMMENDATIONS:
Authorize the City Manager to execute the SR 73/1 -405 Funding Agreement.
DISCUSSION:
In May 1990, a California Transportation Commission Resolution requested the San Joaquin
Hills Transportation Corridor Agency (TCA) to commit $13.2 million for certain improvements
on SR 73 and 1 -405 as shown on Exhibit A. TCA has cooperatively participated in funding
those projects and wants to provide this funding as full and final payment for its obligation.
•The proposed agreement between TCA, OCTA, Costa Mesa and Newport Beach will
establish TCA's funding obligations related to the completion of the improvements along SR
73 and its confluence with 1 -405.
The City of Newport Beach is a party to this agreement because of its interest in the
construction of Project 2 -A (Connector B), the northtbound SR 73 connector to the
southbound SR 55 freeway (see Attachment A). Presently this connection does not exist,
and the SR 73 freeway traffic exits onto Bristol Street and must then find its way to the SR 55
southbound on -ramps in Costa Mesa by traveling over two miles on city streets. This
condition adds more traffic to the city streets which results in traffic delays and early street
deterioration. Therefore, our participation is necessary, although the Connector B
construction takes place in Costa Mesa.
The agreement allows $5.6 million for design of the allowable improvements and if any
excess design funds remain, they are targeted for the cost of right -of -way acquisition for
Connector B. This cost is estimated at $800,000.
The total estimated cost for Connector B is $5,750.000. Design and right -of -way amounts to
$1,750,000 (which is funded) while construction costs are estimated to be $4,000,000. The
City of Costa Mesa has submitted an application to the Orange County Transportation
Agency (OCTA) for $2,000,000. If approved by OCTA in June 1997, the remaining
•$2,000,000 match must come from other sources, which may include funds from Newport
Beach. Construction is anticipated in FY 1999 -00, if funding is secured.
Subject: Agreement Regarding Funcef Certain Improvements to the Confluence o*73 and 1 -405
January 27, 1997
Page 2
�w Ak
The proposed agreement also establishes TCA funding obligations up to a maximum of $3.2 •
million for other improvements to SR 73 and 1 -405 requested by Costa Mesa. OCTA, Costa
Mesa and Caltrans are working to find the necessary additional funds to complete projects
listed in Exhibit A. This agreement does not obligate the City to fund any of these
improvements.
The City of Newport Beach has been involved with the TCA's toll road project since its
inception The toll road is now open and the TCA wants to limit their commitment for
modifications to the SR 73 and 1 -405 to $13.2 million. Therefore, City staff recommends that
the City concur with this concept and that the City support the early construction of
Connector B between SR 73 and SR 55.
Respectfully submitted,
PUBLIC WORKS DEPARTMENT
Don Webb, Director
by: W
Bill Patapoff
City Engineer
Attachments: Agreement
Attachment A
•
•
• ' C -97 -472
AGREETNIENT REGARDING FUNDING OF CERTAIN LNIPROVEMENTS TO THE
CONFLUENCE OF STATE ROUTE 73 AND INTERSTATE 405
BY AND AMONG
THE CITY OF COSTA MESA, THE CITY OF NEWPORT BEACH, THE ORANGE
COUNTY TRANSPORTATION AUTHORITY, AND THE SAN JOAQUIN HILLS
TRANSPORTATION CORRIDOR AGENCY
THIS AGREEMENT REGARDING FUNDING, dated as of the last date subscribed
below, is made by and among the CITY OF COSTA MESA, and the CITY OF NEWPORT
BEACH (collectively, "Cities "), the ORANGE COUNTY TRANSPORTATION AUTHORITY
( "OCTA "), and the SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY
( "Agency ").
WHEREAS, the operational and capacity improvement modifications to State Route 73
between Birch Street and Interstate 405 (I -405), and to the I -405 from Bear Street to Euclid
Street, as further described in Exhibit A to this Agreement ("Improvements ") have been
proposed;and
WHEREAS, the schedule for completion of the design and construction of the
Improvements is presently being developed and the Cities and OCTA in conjunction with
Caltrans presently anticipate that they will be able to begin funding various portions of the
Improvements beginning as early as 1997; and
WHEREAS, the Agency has indicated a willingness to provide funding for the
Improvements, in the amount of $13.2 million as provided in this Agreement, as full and final
satisfaction of the Agency's obligations in its approval of the San Joaquin Hills Transportation
Corridor and the approval of funding for the Corridor by the California Transportation
Commission; and
WHEREAS, the parties have determined that the Agency's commitment to funding of the
Improvements as provided in this Agreement meets and exceeds the Agency's share of the cost
of the Improvements; and
WHEREAS, the Agency's commitment of $13.2 million was set forth in a May 1990
resolution of the California Transportation Commission and the Agency has previously
appropriated $2.2 million (the "$2.2 Million Appropriation ") in furtherance of the
Improvements; and
WHEREAS, the parties desire to set forth the terms under which the Agency funds will
be made available to fund the Agency's share of the cost of the Improvements; and
963030AP.DOC -I-
0 0
WHEREAS, OCTA will serve as lead agency in obtaining funding and in the
implementation of the Improvements; and
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein, and for other valuable consideration the sufficiency and receipt of which are hereby
acknowledged, the parties hereto agree as follows:
1. Recitals. Each of the parties hereto represent and warrant, each to the other, that
the above recitals are true and correct.
2. Design Funding. The parties acknowledge that $943,000 of funds appropriated by
the Agency, a portion of which were previously delivered to the City of Costa Mesa, OCTA and
other consultants, have been expended for design, construction, environmental and other related
costs of the Improvements. Upon execution of this Agreement, the Agency will deliver an
additional $5.6 million to the City of Costa Mesa solely to be used to complete fmal design of all
the Improvements ( "Design Funds "). The City of Costa Mesa and OCTA will enter into an
agreement relative to the disbursement of TCA provided design funds.
3. Confluence Funding.
(a) The Agency will set aside in a separate account $6.657 million (including
the balance of $1.257 million from the $2.2 Million Appropriation) representing the Agency's
total contribution to the right -of -way and construction of the Improvements ( "Confluence
Funds "). Any interest earnings accruing on the $6.657 million, from the effective date of this
Agreement (affective Date "), will accumulate in the Confluence Funds account ( "Confluence
Account ") and will be available to reimburse certain costs of construction or right -of -way
acquisition of the eligible Improvements as part of the Confluence Funds.
(b) The Confluence Funds shall be distributed to reimburse the eligible cost of
the construction and right -of -way acquisition of the eligible Improvements in the manner set
forth in paragraph 4.
4. Disbursement of Confluence Funds. Upon the expenditure of Confluence Funds
by any party to this Agreement that is responsible for such construction with the concurrence of
the Cities, OCTA shall request progress payment reimbursement by submission of a written
reimbursement request in substantially the form attached hereto as Exhibit B. Within ten
working days of the submission of such reimbursement request, the Agency shall deliver funds in
the amount of such request, but in no event shall the total amount, in the aggregate, of any and all
reimbursements, exceed $6.657 million, plus any interest accrued on the Confluence Funds from
the Effective Date, less any costs incurred by the Agency associated with the establishment and
maintenance of the Confluence Account.
5. The Agency shall make available to all parties to this Agreement upon request an
accounting of the "establishment and maintenance costs" of the Confluence Account.
963030AP.DOC -2- -
0 0
6. Use of Confluence Funds. The Confluence Funds shall be used only to fund the
Improvements, and are not available or eligible to be expended for any other purpose. The
Confluence funding will be specifically used to fund all or a portion of Projects I -A, 2 -A, 3 -C, 3-
D, 3 -E and 3 -F as described in Exhibit A.
7. Use of Excess Design Funds. In the event that any portion of the Design Funds
remains available at completion of the design of the Improvements, such funds may be used to
fund the acquisition of real property as is necessary to construct improvements to the interchange
between State Route 73 and State Route 55 ( "Project 2 -A "). Any funds remaining after design of
the Improvements and real property acquisitions for Project 2 -A may be used to fund
construction or the acquisition of real property for projects identified in Number 6 above.
8. Assurances of No Further Obligations By Agency. OCTA and the Cities shall
spend the Design Funds and Confluence Funds solely for the design, right of way and
construction of the Improvements as provided in this Agreement. The parties agree that the
Agency's commitment of $13.2 million plus interest accrued on Confluence Funds from the
Effective Date, as described in this Agreement, is the Agency's full and final commitment to
fund the Improvements, and fully satisfies any and all obligations, responsibilities or liabilities of
the Agency to fund the Improvements. The Agency shall have no obligation, responsibility or
liability to provide any funding for the Improvements, or other improvements to the SR -73
between Birch Street and I -405, including, but not limited to the interchange of SR -73 and 1 -405
and the interchange of SR -73 with SR -55 (collectively, the "Confluence "), except as specifically
provided in this Agreement, and the parties shall not request such additional funding by the
Agency. Without limiting the generality of the foregoing sentence, the Agency shall have no
obligation, responsibility or liability of any kind whatsoever to provide any additional funding
for the Improvements, or other improvements to the Confluence, in the event of any changes to
the scope of work, delays in the project schedule, increases in estimated costs, force majeure
events, or other circumstances, whether or not such circumstances were anticipated or
unanticipated.
9. Use of Funds for Administrative Purposes. All parties agree that no requests shall
be made from the confluence funds for staff time for administrative purposes to design, acquire
right -of -way or construct improvements without the approval of the Cities and OCTA.
10. Indemnification. The City of Costa Mesa, and OCTA, individually and
collectively, agree to release, indemnify, defend (with counsel acceptable to the Agency) and
hold harmless (collectively "Indemnity") the Agency, its officers, directors, employees and
agents, and each and every one of them, from and against all suits, legal actions, administrative
proceedings, damages, claims, losses or expenses (collectively "Claims ") of every type and
description to which they may be subjected or put, by reason of or arising from this Agreement,
or the design, engineering, construction, maintenance and/or operation of the Improvements.
The City of Newport Beach shall indemnify Agency, its officers, directors, employees and
agents, and each and every one of them, from any and all Claims arising from the City of
Newport Beach's participation in the design engineering and construction of Project 2A.
963030APDOC -3-
11. Audit. The Agency shall have the right, during normal business hours and upon
the giving of 10 days' written notice to the other parties, to review all books and records of the
other parties pertaining to costs and expenses incurred by the other parties in constructing any of
the Improvements or in the expenditure of any funds provided by the Agency pursuant to this
Agreement. This provision shall not in any way obligate the Agency, or create a duty for the
Agency, to review such books or records.
12. Attorneys' Fees. In the event of the bringing of any action or suit by either party
against the other arising out of this Agreement, the party in whose favor final judgment shall be
entered shall be entitled to recover from the other party all costs and expenses of suit, including
reasonable attorneys' fees.
13. Notices. Any notice, payment or instrument required or permitted by this
Agreement to be given or delivered to either party shall be deemed to have been received when
personally delivered or 72 hours following deposit of the same in any United States Post Office
in California, registered or certified mail, postage prepaid, addressed as follows:
If to Agency:
Transportation Corridor Agencies
Attention: Chief Executive Officer
201 E. Sandpointe, Suite 200
P.O. Box 28870
Santa Ana, CA 92799 -8870
with a copy to:
Robert D. Thornton, Esq.
Nossaman, Guthner, Knox & Elliott LLP
18 10 1 Von Karman, Suite 1800
Irvine, CA 92715
If to Cities:
Kevin Murphy
City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
If to OCTA:
Stan Oftelie
Chief Executive Officer
Orange County Transportation Authority
550 S. Main Street
P.O. Box 14184
Orange, CA 92863 -1584
963030AP.DOC -i-
William Morris
Director of Public Services
City of Costa Mesa
77 Fair Drive (P.O. Box 1200)
Costa Mesa, CA 92626
0
Each party may change its address for delivery of notice by delivering written
notice of such change of address to the other parties.
14. Severability. If any part of this Agreement is held to be illegal or unenforceable
by a court of competent jurisdiction, the remainder of this Agreement shall be given effect
to the fullest extent reasonably possible.
15. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the parties hereto.
16. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original.
17. Amendments. Amendments to this Agreement shall be made only by written
instrument executed by each of the parties hereto.
18. Authorization. The parties represent and warrant that the execution and delivery
of this Agreement has been duly authorized and approved by all requisite action, no other
authorization and approval is necessary to enter into this Agreement, and the persons
executing this Agreement have the authority to bind their respective agencies.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the last
date noted below.
CITY OF COSTA MESA
By:
William Morris
Director of Public Services
Date: j R-(V • 'Z-a 1 "l `� 7
963030AP.DOC -5-
CITY OF NEWPORT BEACH
By:
Ke in Murp
City Manager
Date:
961al tilL•lli7sZ i
ORANGE COUNTY TRANSPORTATION AUTHORITY
By: �okl�' 4d==
Stan Oftelie
Chief Executive Officer
Date: I • q-4-1
APPROVED AS TO FORM:
By:
Kennard R. Smart, Jr.
Woodruff, Spradlin & Smart-'
Date: S1 I` '11
963030AP.DOC -7-
0 0
SAN JOAQUIN HILLS TRANSPORTATION
CORRIDOR AGENCY
By:
William Woollett, Jr.
Chief Executive Officer
Date: I{ 11, 14? 7
APPROVED AS TO FORM:
NOSSA N, GUTHN KNOX & ELLIOTT, LLP
By i
Attorneys or San Joaquin Hills Transportation
Corridor Agency
963030AP.DOC -8-
EDIT A
Description of the Improvements
0
STATE ROUTE 73
INTERSTATE 405
iProject
Project Description
Project
Project Description
No. I
No.
I -A
Restripe to open existing SB
i
3 -A
Construct NB auxiliary lane (Harbor to
lane from I -405 to SR -55;
Euclid)
construct third SB mixed flow
lane from SR -55 to Birch;
construct third NB mixed flow
lane from Campus to Baker.
1 -B
Construct SB HOV lane from I-
3 -B
Construct Hyland Avenue on -ramp to NB I-
405 to Birch; construct NB HOV
405; close SB Harbor to NB 1 -405 direct
lane from Birch to Bear.
ramp.
l -C
Construct NB auxiliary lane
3 -C
Reconstruct NB Harbor loop on -ramp, extend
from SR -55 to Bear Street.
NB lane number 6 from Harbor loop on -ramp
to existing SB Harbor to I -405 NB on -ramp.
t -D
Widen NB connector to three
3 -D
Construct Harbor/Fairview braid with interim
lanes for 1000 feet beyond the
I -405 NB exit to Harbor. Construct lane
ramp (provides lane number 7 as
number 6 from new Fairview on -ramp to
merging lane).
Harbor loop on -ramp.
2 -A
Construct connector B and NB
3 -E
Construct new NB SR -73 off -ramp to
auxiliary lane from Campus to
Fairview. Relocate NB I -405 Harbor exit to
SR -55.
Fairview Road off -ramp. Construct ultimate
Harbor off -ramp. Extend lane number 6 from
temporary Harbor off -ramp location to
Fairview on -ramp.
3 -F
SB I -405 operational improvements.
963030AP.DOC -9-
0 0
EXHIBIT B
Form of Reimbursement Request
San Joaquin Hills Transportation Corridor Agency
Attention: Controller
201 E. Sandpointe, Suite 200
P.O. Bost 28870
Santa Ana, CA 92799 -8870
Re: Agreement Regarding Funding of Certain Improvements to the Confluence of State
Route 73 and Interstate 405
Ladies and Gentlemen:
In accordance with the terms of the Agreement Regarding Funding of Certain
Improvements to the Confluence of State Route 73 and Interstate 405, by and among the City of
Costa Mesa, the City of Newport Beach, the Orange County Transportation Authority, and the
San Joaquin Hills Transportation Corridor Agency ( "Agency'), dated as of , 1996
(the "Confluence Funding .-Agreement "), you are hereby authorized and requested to make
immediate disbursement of funds held by you in the Confluence Account established pursuant to
Section 4 of the Confluence Funding Agreement.
You are hereby requested to pay the Requested Reimbursement Amount indicated below
from the Confluence Account, to the public entity designated below as Payee. The Requested
Reimbursement amount ^ percent of the sum set forth below as the Improvement Amount.
Payee:
Address:
Improvement Amount:
Requested
Reimbursement Amount:
963030AP. DOC -10-
Copy of invoice with proof of payment or certification that such expense has been made, with
. identification of portion of Improvement thereof for which payment is requested:
is
The undersigned hereby certifies that (i) the Improvement .Amount is the actual cost of
the Improvements (as defined in the Confluence Funding :Agreement) to which payment relates
and no part of the Improvement amount herein has been included in any other request previously
filed with you; (ii) the Agency will be indemnified from any liens or claims which gave been or
may be filed affecting the rights of the person, corporation or other entity owning the propem- on
which any portion of the Improvements is located, and any liens or claims arising from the
contractor, its subcontractors, and its suppliers; and (iii) the labor, services and/or materials
covered hereby have been performed upon or furnished to the project and the payment requested
herein is due and payable and represents a cost of the Improvements in accordance with the
Confluence Funding Agreement.
Dated: .19,
[Requesting Party]
By
963030AP.DOC _11-
N
d
U
N
0 11
oil
N l/
ll
11
II
II
11
II
11
II
II
11
II
II
II
al
I I
I I
I I
I I
I I
II
II
II
I
� N
N
W
T
0
G n b
U2N
7S Iol3N8
'Isle,
all
`o I
III
mll
I I
I I
I I
I I
I I
I I
I I
-PH tl Mel I I
- - - - - --- - -- - - --
i i
II
II
_ 'PAIBp9!eH
I I /
I I
I I
I I
I I
I I
'aMb eu I I
I
�I
N
ca
d
L
Q
C
U
d 0
p O
Z CL 1
W E
0 —
W .. \
J ..
c M
U
.a
C