The following is a preview of the May 7 City Council meeting. You may view the full agenda here.
Back in October 2018, the City Council awarded a construction contract to Sequel Contractors for the 2018 Accelerated I-Bank Street Paving Project, which consists of street rehabilitation for several segments of City streets. Due to significant rainfall over the past year alongside a construction delay, the project was completed in February 2019.
As a result of an unforeseen macadam road base (a type of road construction that uses crushed stone layers) that was discovered during construction, construction crews had to remove and dispose the macadam base at an additional cost of $61,000. The project’s original contingency of $88,679.30 that was approved by the City Council was reduced by $32,348.94 due to a new finance policy that does not permit a negative account balance.
The final construction cost of the project is $984,507.53, which is $41,384.17 (or 4.3%) over the approved construction budget. City staff from Public Works is requesting a purchase change order of $41,384.17 alongside the use of available gas tax funding within the Great Streets Program budget to fund the project.
Earlier this year, the City began soliciting applications for several commissions, including the Civil Service Commission, Community Services Commission, Design Review Commission and the Planning Commission. The City Council is responsible for appointing commissioners to serve two-year terms beginning in June 2019 and ending at the end of May 2021.
After interviewing potential applicants to fill several vacancies, the City Council will review a finalized list of candidates to confirm their appointment to several City commissions.
Originally proposed at the April 16 City Council meeting, the revised fund balance policy sets a minimum general fund balance for the City at 17%, which is equal to two months of operating costs based on a standard recommended by the Government Finance Officers Association. For San Gabriel, this equates to $5.25 million, which – according to the proposed policy – would need to be met by 2028.
Upon review, the City Council made several changes to the policy, which you can view here.
Finance staff recommends that the City Council adopt the attached resolution approving the revised fund balance policy.
Also originally presented at the April 16 City Council meeting, this proposed policy is intended to establish guidelines for the City’s overall fiscal planning and management. These policies encompass budget, economic development, risk management, accounting, auditing and financial reporting, cash management and investments and debt management.
Several overall guidelines include:
- Delivering quality services in an affordable, efficient and cost-effective manner
- Maintaining an adequate financial base to sustain a sufficient level of municipal services, allowing the preservation of the quality of life in San Gabriel
- Providing essential public facilities and preventing the deterioration of the City’s public facilities and capital assets
- Creating the ability to withstand local and regional economic fluctuations, adjusting to changes in the service requirements of our community and the ability to respond to changes in federal and state priorities and funding as they affect the City’s residents
- Protecting and enhancing the City’s credit rating in the financial community to assure City’s taxpayers that the City is well managed and financially sound
- Insuring the legal use of all City funds by adhering to the highest accounting and management practices set by the Government Finance Officers’ Association standards for financial reporting and budgeting
- Providing residents a transparent look at the financial operations of the City
Upon receiving the policy, the City Council made several changes which are outlined here. The Finance department recommends that the City Council approve the attached resolution approving the fiscal sustainability policy.
Due to the increase of major private developments in the community, the City’s engineering staff have been tasked with reviewing and processing these projects in addition to developing and delivering capital improvement projects for the City.
To handle the increased work load, the City Council – back in 2014 – selected Project Partners to provide development review, plan checking and inspection services to support and augment City staff. City staff from Public Works is recommending that the City renew its agreement with Project Partners to provide continuity and consistency to major projects in the planning, entitlement and plan check phases.
Public Works is recommending that the City Council approve another two year agreement with Project Partners, subject to renewal on the basis of a comprehensive performance evaluation. The cost of the services provided under the agreement would be paid by fees provided by the project applicants.
Advertised in March 2019, the City solicited bids for a new traffic signal at the intersection of San Gabriel Boulevard and Commercial Avenue. After reviewing the bids, Comet Electric, Inc. was determined to be the lowest responsible bidder with a base bid of $218,575.00. While the engineer’s estimate was originally $175,000.00, the busy construction market has created significant increases in bid prices alongside the need for new traffic signal equipment.
Comet Electric’s bid includes two alternate bids ($14,327 and $12,977) that include additional work that can be awarded if budgets allow.
To fund the project, $250,000.00 has been funded by the developer of 402-404 South San Gabriel Boulevard, while an additional $20,466.90 is available in the annual street sign replacement fund. The City Council is recommended to approve the plans and specifications for the traffic signal project and to authorize the City Manager to execute the agreement with Comet Electric. Inc. The total purchase order would be $270,466.90, which includes a 10% construction contingency.
The City is proposing to improve traffic and pedestrian safety at San Gabriel Boulevard and Roses Road with new crosswalk enhancements, an overhead flashing beacon, curb ramps and additional pedestrian signage.
To support the project, the team from Public Works solicited proposals for design and engineering services back in January 2019 for San Gabriel Boulevard and Roses Road. JMD was the only firm to submit a proposal with a bid of $25,973. The City reviewed JMDiaz, Inc and determined that the firm was credible and suitable for the project.
The entire project is budgeted for $28.570.30 for design and engineering services. Staff from Public Works is recommending that the City Council approve the project.
The California Department of Housing and Community Development requires all jurisdictions to submit an annual progress report. To fulfill this requirement, the City provides data to create a snapshot of housing unit production across all affordability levels. The City also provides a listing of development applications that have been received and an update on the housing program’s implementation.
For some context, the City was issued a regional housing needs assessment of 930 housing units. Since the figure was developed during the recent recession, the City estimates that the need for housing has grown.
So far, 22 housing unit permits were issued in 2018, representing approximately .02% of the target allocation. Ten of these units were accessory dwelling units, while the other twelve were a mix of condominium units and new single family homes. A total of 338 housing units have been issued building permits in the planning cycle to date. For more information about the City’s housing status, please click here.
The City Council is recommended to receive and file the information contained in this staff report and to approve the transmission of this document to the State Department of Housing and Community Development for review.