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HomeMy WebLinkAbout20B - AA - WARNER AVE AND GRAND AVE WIDENINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 15, 2012 TITLE: SECOND AMENDMENT TO THE JOINT EXERCISE OF POWERS AGREEMENT WITH THE CITY OF TUSTIN AND AMENDMENT TO THE FY 2012/2013 CAPITAL IMPROVEMENT PROGRAM FOR WARNER AVENUE AND GRAND AVENUE WIDENING PROJECTS CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 151 Reading ? Ordinance on 2"d Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to execute the attached second amendment to the Joint Exercise of Powers Agreement with the City of Tustin for reallocation of Transportation System Improvement Program area fees and bond proceeds, subject to nonsubstantive changes approved by the City Manager and City Attorney. 2. Amend the Fiscal Year 2012/2013 Capital Improvement Program, and approve an appropriation adjustment accepting funds in the amounts of $8 million from City of Tustin Community Facilities District bond proceeds, and $2,919,046 from Transportation System Improvement Program Area B fees into the Transportation System Improvement Area Revenue Fund, and appropriating $10,919,046 to the Transportation System Improvement Area Expenditure Fund for the Warner Avenue Widening Project from Main Street to Grand Avenue. 3. Amend the Fiscal Year 2012/2013 Capital Improvement Program, and approve an appropriation adjustment accepting funds in the amount of $2,790,262 from Transportation System Improvement Program Area A fees into the Transportation System Improvement Area Revenue Fund, and appropriating the same amount to the Transportation System Improvement Area Expenditure Fund for the Grand Avenue Widening Project from First Street to Fourth Street. DISCUSSION The Cities of Santa Ana and Tustin (Cities) entered into a Joint Exercise of Powers Agreement (JPA) dated November 6, 1989, creating a Transportation System Improvement Authority (TSIA) and two Transportation System Improvement Program (TSIP) areas that allow the Cities to charge fees to new development to offset the cost of transportation system improvements within these areas (Exhibit 1 a). On February 22, 2001, the JPA was amended to include a funding mechanism to finance improvements in Santa Ana that would mitigate the traffic impacts identified in the 20B-1 Second Amendment to Agreement With City of Tustin for JPA October 15, 2012 Page 2 environmental documents of the development of the former Marine Corps Air Station (MCAS) in Tustin. On April 17, 2006, the City Council approved a Joint Community Facilities Agreement with the City of Tustin which required Tustin to fund transportation improvements to the Grand/Edinger and Grand/Dyer intersections through the issuance of a Community Facilities District (CFD). Santa Ana is in the process of preparing the environmental analysis for the Warner Avenue Widening Project from Main Street to Grand Avenue (Exhibit 1b). This priority project will widen Warner from two to three lanes in each direction, including construction of landscaping in the parkways and the median islands, traffic improvements, drainage structures, and bike lanes. The MCAS final environmental documents determined that the Warner Widening Project provides as equivalent a level of mitigation as the Grand/Edinger Intersection Project. Based on this analysis, the Cities now desire to transfer $8 million in CFD bond proceeds from the Grand/Edinger Intersection Improvement Project to the Warner Avenue Widening Project between Main Street and Grand Avenue. Additionally, the Authority Governing Board met on October 11, 2012, and approved additional allocations of $2,790,262 in TSIP Area A funds for the Grand Avenue Widening Project from First to Fourth (Exhibit 1c), as well as $2,919,046 in TSIP Area B funds for the Warner Avenue Widening Project. To utilize the CFD and TSIP Areas A and B funds, an amendment to the Capital Improvement Program for Fiscal Year 2012/2013 and an appropriation adjustment recognizing these funds is necessary. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Upon approval of the appropriation adjustment, funds will be available in the Transportation System Improvement Area Funds (accounting units 99117950-66220 and 99217950-66220). APPROVED AS TO FUNDS AND ACCOUNTS: e? Raul odinez II Executive Director Public Works Agency Francisco Gutierrez Executive Director Finance & Management Services Agency/ RG/JG Exhibits: 1. Location Maps 2. Agreement 20B-2 W/S EAST N/S ?v? N/S FAIRHA LEGEND --------- CITY LIMIT T. S. I . P. BOUNDARY EXHIBIT 1 a l SANTA ANA TRLE: CITY COUNCL SECOND AMENDWENI' TO JOINT EETNERJOISSE OF P W A AGENDA DATA AMND AME DLE NT TO THE FY 202108 CAPITAL PICu OCT. 15 2012 MuPROVEkENT PROGRAWI FOR WARNER AVENUE AND GRAND AVENUE WDENNG PROJECTS N 2 W 20B-3 20B-4 GRAND,' AV I I I I I I STAND RDA E Mill 1 J ac - w z - ? a 3 F- I LEGEND: ® PROJECT LIMITS i -7 - - -MirfWEI EXHIBIT 1 b A cRkL. N.r.f.? SANTA ANA CRY COIMCL SECOND AMENDMENT TO JONT EXERCISE OF "VMS A AGB?DA DATA POWERS AGE WRH TM CRY OF TUSTN AND AMENDMENT TO THE FY 2012/2= CAPITAL .OE,fC, OCT, 15. 2012 APROVBMBW PROGRAM FOR WAFMM AVENUE AND GRAND AVENUE WIDENING PROJECTS 20B-5 20B-6 N (NTS) ! LEGEND: IMPROVEMENT AREA EXHIBIT 1c SANTA ANA TITLE: BEOOPD AMENDMIEVT TO H TFE CrTY OF TUUM AM AMENDMENT TO TW OM. I& 2m R oap ?• VYRFlrG?2Q13 CmAWAL IMPROVEMENT T ROGRAM Lfo W A s - ?G[NCr VII"Y7ifu ?V M PROJEC13 1 I1VG1?L/G i 20B-7 FIRST STREET FOURTH STREET 20B-8 EXHIBIT 2 SECOND AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE CITY OF TUSTIN REGARDING THE TUSTIN-SANTA ANA TRANSPORTATION SYSTEM IMPROVEMENT AUTHORITY THIS SECOND AMENDMENT to the Joint Exercise of Powers Agreement ("Second Amendment') is entered into as of March 2012, by and between the City of Santa Ana, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California ("Santa Ana") and the City of Tustin, a municipal corporation ("Tustin"). RECITALS A. Santa Ana and Tustin entered into a Joint Exercise of Powers Agreement dated November 6, 1989, creating the Santa Ana/Tustin Transportation System Improvement Authority ("JPA Agreement'). This JPA Agreement created two Transportation System Improvement Program ("TSIP") areas and, pursuant to the provisions of Government Code section 6500 et seq., established a legally separate, joint exercise of powers authority (the "Santa Ana/Tustin Transportation System Improvement Authority") to exercise various defined powers within the TSIP areas. These powers include expenditure of developer impact fees ("TSIP Area Fees") to study, plan and implement area-wide circulation improvements. B. By Amendment to JPA Agreement (the "Amendment'), dated February 22, 2001, the Parties established a funding mechanism to finance off-site traffic improvements within the jurisdictional boundaries of Santa Ana (the "Improvements") required to mitigate the effects of development of the MCAS Tustin property, identified in the Final Environmental Impact Statement /Environmental Impact Report for the Disposal and Reuse of MCAS Tustin (the "FEIS/FEIR"). C. The Santa Ana Improvements include both the Grand and Edinger intersection and the Grand and Dyer intersection in Santa Ana, and require that Tustin pay its fair share of the Total Costs of both short and long range improvements. D. The Amendment provides that Santa Ana, in cooperation with Tustin, may select and implement alternative improvements to those identified in the Amendment as requiring funding by Tustin. E. The City of Tustin and the City of Santa Ana entered a Joint Community Facilities Agreement, dated May 1, 2006, to provide for the financing of the Santa Ana improvements through issuance of City of Tustin Community Facilities District No. 06- 01 (Tustin Legacy/Lennar Homes) ("Community Facilities District"). F. Tustin in September 2011 previously released bond proceeds from the Community Facilities District to pay the total cost of Improvements to Grand and Dyer in the amount of $296,060.00 based on a request from Santa Ana, and Santa Ana released Tustin from any further Improvement obligations under the JPA Agreement with an Acknowledgement and Release dated March 28, 2011. 20B-9 H. Santa Ana desires to utilize bond proceeds from the Community Facilities District to pay the cost of certain alternative traffic mitigation measures which they have determined to provide an equivalent level of mitigation to Grand and Edinger Improvements identified in the Amendment, and will release Tustin from its obligation to pay its fair share total cost of all remaining Grand and Edinger Intersection Improvements. NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein, Tustin and Santa Ana agree as follows: Section 1. Selection of Alternative Improvement Pursuant to Section D of the Amendment, "Alternative Improvements", Santa Ana hereby selects, and Tustin approves, releasing bond proceeds from the Community Facilities District in the amount of Eight Million Dollars ($8,000,000.00) for the Warner Avenue Widening Project as an Alternative Improvement determined by Santa Ana to provide an equivalent level of mitigation for Grand and Edinger Improvements in Santa Ana identified in the Amendment and FEIS/EIR and agreeing that release of these bond proceeds to Santa Ana will constitute Tustin's fair share of the Total Costs of Grand and Edinger Improvements as identified in Section B.2 of the Amendment. Section 2. Funding of Alternative Improvement Upon Tustin's transfer of Eight Million Dollars ($8,000,000.00) to Santa Ana, Tustin shall be thereupon relieved of any further fair share or construction responsibility for the completion of Grand and Edinger Improvements as set forth in Section B.2 of the Amendment. Further, since Santa Ana is electing to utilize the Community Facilities District bond proceeds for Alternative Improvement rather than for the Grand and Edinger Intersection Project, no subsequent mitigation shall be required by Tustin for any inadequacies in this intersection as a result of the improvements not being made to the intersection by Santa Ana as a result of Santa Ana's selection of Alternative Improvements. Section 3. Use of Funds by Santa Ana and Tustin 3.1 Any and all funds received by Santa Ana from Tustin pursuant to this Amendment shall be used exclusively for the Warner Avenue Widening Project. Santa Ana may utilize this money on any phase(s) of the Project, for preliminary costs such as alignment studies, design, environmental documentation beyond the FEIS/FEIR, property appraisal for improvements, property acquisition, relocation, lost goodwill, attorney's fees and court costs, and construction costs. The Parties agree that Santa Ana may utilize the Alternative Improvement funds as match funds to obtain grant funding for the Project. 3.2 Pursuant to Section E. 2 of the Amendment, Eighty-five percent (85%) of TSIA fees collected by Tustin from the MCAS Tustin Project will continue to be solely allocated to Santa Ana for the Warner Avenue Widening Project and utilized exclusively for the Warner Avenue Widening Project until January 1, 2020 only as it 2 20B-10 relates to the TSIP Area B, as amended by Exhibit D. Notwithstanding the status of completion of the Warner Avenue Widening Project as identified in Section E. 2 and any priority originally intended to be given to Improvements to Barranca and Jamboree Road as identified in Section EA of the Amendment, Santa Ana and Tustin mutually agree that any additional TSIA Area B fees generated from MCAS Tustin (the remaining "fifteen percent" or "15%") shall be allocated to Tustin to be used solely for transportation system improvements determined by Tustin for the MCAS Tustin project and its implementation. Section 4. This Second Amendment to the JPA Agreement is intended by the parties as a complete and exclusive statement of the agreement and understanding of the parties hereto in respect to the selection of an Alternative Improvement contained herein. This Amendment supersedes any and all prior restrictions, promises, representations, warranties, agreements, understandings and undertakings between the parties with respect to such alternative improvement. 3 20B-11 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written. SANTA ANA ATTEST: MARIA D. HUIZAR Clerk of the Council CITY OF SANTA ANA PAUL M. WALTERS Interim City Manager APPROVED AS TO FORM: JOSEPH STRAKA Interim City Attorney APPROVED AS TO CONTENT: RAUL GODINEZ, II Executive Director Public Works Agency TUSTIN ATTEST PAMELA STOKER City Clerk CITY OF TUSTIN JEFFREY C. PARKER City Manager APPROVED AS TO FORM: DAVID KENDIG City Attorney APPROVED AS TO CONTENT: CHRISTINE SHINGLETON Assistant Executive Director 4 20B-12