[Council Communication]  [Attachments]

Council Communication

Title:	Approval of Agreement No. 21139 - Congestion Mitigation and Air Quality (CMAQ) Project Ashland, Street Paving between the City of Ashland and the Oregon Department of Transportation
Dept:	Public Works Department
Date:	May 18, 2004
Submitted By:	Paula Brown
Reviewed By:	Paul Nolte
Approved By:	Gino Grimaldi, City Administrator

Synopsis:	The attached agreement provides ODOT's commitment for federal grant funds, in an amount up to $597,000 to design and pave Walnut Street between grant and Luna Vista Streets and Eureka / C Streets between 8th to Emerick Streets (see attached maps). The City requested the initial grant in March 2003 through the Oregon Department of Transportation (ODOT) as a part of the federal Congestion Mitigation and Air Quality (CMAQ) funding program. The project was approved by the Oregon Transportation Commission this past summer and staff has been working on the final agreements and project definition to meet the federal requirements since that time.
Recommendation:	It is recommended that Council approve Agreement No. 21139 - Congestion Mitigation and Air Quality Project Ashland, Street Paving between the City of Ashland and the Oregon Department of Transportation, and the acknowledgement of the use and requirements for use of federal funds. It is further recommended the Council authorize the Mayor and City Administrator to sign the project prospectus and have the Public Works Director execute future design and construction agreements.
Fiscal Impact:	ODOT has estimated the construction project cost at $1,374,000. The State will fund up to $597,000 in federal funds. The City must provide a required 10.27% match of $141,110, and up to the additional $636,000 for the project. The City is responsible for any portion of the project not covered by federal funding. The City's estimate for these two pavement sections was significantly less than the state's estimate. Staff expects the construction to be less than $900,000. Staff anticipates forming a Local Improvement District for each of the two sections and that will offset the difference in costs that are not federally funded. The LID will fund as much as $549,600 using the State's estimate which would mean that the additional $227,400 would be funded out of the City's street fund if the ODOT estimates are correct. Any savings beyond the grant funded portion in total costs would be shared between the LID residents and the City.
Background:	The City has a goal to pave unpaved streets to help with dust control and water quality due to reduced sedimentation. The City also has a program to help neighborhoods with paving projects though jointly funded local improvement districts. Several City streets are on the City's list of higher use unpaved streets. When the call for grant opportunities came out through the CMAQ program, staff looked at the top four street paving candidates: Granite Street; Eureka & C Street; Walnut Street; and Pinecrest Terrace. These were submitted for the initial round of CMAQ funding. The Council has identified the reduction of air pollution as a goal in the strategic plan, and City Ordinances identify a process to secure financing of local improvements through a LID process. Eureka St, C St, Walnut St, and a portion of Pinecrest Terrace all have reached the 50% voluntary participation level required to initiate the LID process. Additionally, the City's Capital Improvement Plan has identified resources to fund LID projects. Once the funding estimates were completed by ODOT, the totals exceeded what was reasonable for the City's match. Two of the streets were dropped out of the federal grant application to ensure funding; Granite Street due to the width available and that there was no LID match and Pinecrest Terrace as it was the lowest volume and provided the least overall benefit. The final Ashland CMAQ project, with all of the federal requirements was estimated at a cost of $1,374,000 by ODOT and their consultant. Staff still feels that the two portions will come in at $820,000 for the construction. LIDs could fund as much as 40% ($328,000 of the City's estimate or as much as $549,600 with the federal estimate). Federal funding is at $597,000 leaving $227,400 as the City requirements even if the ODOT estimates are correct. The LID portions will be reduced in proportion to the overall costs and final grant amounts.
Attachments:	•   Agreement No. 21139 Attachments 001. Area Maps 022.. ODOT Agreement No. 20939 Local Agency Agreement; Transportation Enhancement Program Project Jackson Road - Laurel Street and Project Prospectus 003. RVCOG Project Application Form for the original CMAQ Grants (all 4 projects)

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