TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Maiko Klieman, Public Works Administrative Manager
SUBJECT: Approval of Budget Amendment for Chiles Creek Bridge-Pope Valley Project
RECOMMENDATION
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Approve a Budget Amendment for Project 14010, “Chiles Creek Bridge-Pope Valley” to increase project transfer out appropriation by $3,939,895 to return a portion of the reimbursements from the State back to the Capital Improvement Project Fund. (Fiscal Impact: $3,939,895 Expense; Roads and Capital Improvement Projects Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Chiles Pope Valley Road Bridge over Chiles Creek Project, is approximately 2.1 miles north of Highway 128 and was replaced in the spring, summer, and fall of 2024, and only minor bridge construction work remains. For example, installing the irrigation system and plants for the California Department of Fish and Wildlife required mitigation is a separate project that will take place this summer.
On January 23, 2024, the Board awarded a construction contract to Gordon N. Ball of Alamo, CA for the Chiles Pope Valley Road Bridge over Chiles Creek Project, RDS 15-23. Gordon N. Ball’s bid was $6,246,113 and at award the Board also approved a budget amendment of $9,181,038 to fund the construction. A separate board letter will be created later to cover expenses to close out this project. The expenses are mitigation planting, an estimated $650,000, and $1,700,000 to cover claims filed by the contractor. The claims demanding extra compensation are due to a harder than expected drilling environment, and additional biological monitoring. To settle these claims it may require mediation, arbitration, and potentially going to court for resolution.
The project is expected to receive an 88.53% federal reimbursement ($8,127,973) and requires a 11.47% local share ($1,053,065). All reimbursements will be returned to the source of the original funds (Roads or CIF) for use on future projects. To date, $6,448,046 federal reimbursement has been received. At this point, the request is to return $3,939,895 of the reimbursement from the State back to CIF and retain the cash needed in the future to pay for the claim and also mitigation planting.
Returned $3,939,895 to the CIF will be used for the next two Roads projects, Mount Veeder Road MPM 3.5 and Mount Veeder Road MPM 5.2, which were caused by the Storm in November of 2024 for the estimated total cost of $2.9 million.
Requested Action:
1. Approve a Budget Amendment increasing Transfer Out appropriations by $ $3,939,895 in Project 14010 (Fund 2040, Sub-Division 2040500, Project 14010, Account 56100) offset by use of its available fund balance to return funds back to CIF. (4/5 vote required)
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
To return federal reimbursed funds back to CIF so it can be used for the next Roads CIPs. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
N/A |
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Consequences if not approved: |
Return of the funds back to the CIF is needed to fund the next Roads CIPs. |
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Additional Information |
None |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.