CITY OF CARMEL-BY-THE-SEA

Council Report
May 4, 2015
To:

Honorable Mayor, Members of the City Council,

Douglas J. Schmitz, City Administrator

From:

Sharon Friedrichsen

Subject:

2014 Streets Paving Restoration and Supplemental Appropriation

RECOMMENDATION(S):
Adopt the resolution to:
1. Authorize the City Administrator to Execute an Agreement for Pavement Restoration
for Encroachment Permit EN TEMP 13-03 with Pacific Gas and Electric (PG&E); and,
2. Recognize unanticipated revenue and approve an adjustment of a minimum of
$200,580 to revenues and expenditures for the 2014 Street Project; and
3. Approve a supplemental appropriation request of a maximum of $285,250 to fund
Phase II of the 2014 Streets Project and adjust Project revenues and expenditures
accordingly.
EXECUTIVE SUMMARY: City Council allocated $868,000 for street projects for fiscal year
2014-15. The proposed street improvements have been bifurcated into two phases. The first
phase of street improvements were completed in autumn 2014. The second phase includes
other City planned streets and segments impacted by the PG&E replacement project. An
agreement with PG&E to reimburse the City for costs associated with restoration work is
being negotiated. In addition, the estimated cost for Phase II is projected to be higher than
originally budgeted and staff is requesting a supplemental appropriation not to exceed
$285,250 for City-planned work associated with Phase II.
ANALYSIS/DISCUSSION: The current 2014 Streets Project budget is $868,000. The City
completed overlays and associated improvements on five street segments in autumn 2014,
and postponed road work on the truck route due to the upcoming PG&E project. With the
PG&E pipeline replacement project now finished, the City wishes to move forward in soliciting
construction bids for Phase II segments.
The proposed work includes the truck route, Guadalupe from 2nd to Ocean, 3rd from Santa Fe
to Guadalupe, Santa Fe from 2nd to 4th and Perry Newberry. 1 The Staff is in negotiations with
the utility for the first of two payments. The floor of the negotiations is $200,580 for the
initial reimbursement. The City expects to receive an updated agreement with a revised
amount after the packet goes to print. Thus, the Staff is requesting Council approval for the
1

nd

nd

rd

rd

Truck route includes 2 from Carpenter to Santa Fe; Santa Fe between 2 and 3 and 3 from Santa Fe to Junipero.
nd
Carpenter from the City limits to 2 will be part of the Carpenter Street Drainage and 2015 Streets Projects in 2015-16.

Council Meeting Date: May 4, 2015

Agenda Item: 4.K
Page 1

City Administrator to enter into an agreement for not less than $200,580 so that the project
can continue to advertising with a bid award at Council in June. Any monies received from
the utility that are more than $200,580 will decrease the drawdown from the balance in the
Measure D fund.
The first recommended action for Council consideration includes authorizing an agreement
with PG&E for reimbursement of a minimum of $200,580 toward the cost of street restoration.
The second recommended action by Council would approve supplemental funding not to
exceed $285,250 for Phase II, which includes the truck route and enhanced reconstruction
work on Perry Newberry. Rehabilitation of this street was delayed until after the PG&E work
and the proposed Phase II budget includes the cost for reconstructing the road, offset by
PG&Es contribution toward costs of restoration.
Approving the supplemental appropriation for Phase II will ensure that the project has
sufficient funding to repair the streets in a satisfactory condition. Once funding is approved,
the City Engineer will finalize design specifications and solicit bids for the Phase II project. It
is anticipated that Council will award the construction contract at its June meeting.
FISCAL IMPACT: The City has spent approximately $507,330 on engineering and
construction costs related to Phase I as well as unanticipated repairs at Del Mar parking lot
due to the December 2014 storms. This leaves a balance of approximately $360,670
remaining within the 2014 Streets Project account.
The estimated cost for all of Phase II work is $846,500, inclusive of engineering, construction
and construction administration/management. PG&Es reimbursement is to be a minimum of
$200,580, leaving a remaining balance of $285,250. PG&E anticipates providing funding to
the City by mid-May. Both the proposed Capital Improvement Plan for 2015-2018 and the
2015-16 Provisional Budget assumes about $400,000 in revenue from PG&E for streets in
the first half of fiscal year 2015-16. Approving the paving restoration agreement will allow the
first part of PG&E restoration work to be completed earlier than anticipated. A new
agreement with PG&E for paving restoration costs on Torres, 8th, Ocean and Scenic will be
executed once the project is finished and the projects impact on the streets is assessed.
It is recommended that Council approve a supplemental appropriation not to exceed
$285,250 to cover additional expenses of Phase II. Funding is proposed to come from
Measure D prior year surplus, of which the current balance prior to this request is $699,898.
Component

Budget/Expenses

2014 Phase II Budget

2014 Streets Balance
PG&E Reimbursement
Supplemental Funding Request

$846,500
-$360,670
-$200,580
$285,250

PREVIOUS COUNCIL ACTION/DECISION HISTORY:

Allocation of $868,000 as part of adoption of FY 15-16 budget.
Previous Council direction to PG&E and staff that City will manage paving-related work.

Council Meeting Date: May 4, 2015

Agenda Item: 4.K
Page 2

ATTACHMENTS:
1. Resolution to Approve Supplemental Fiscal Year 2014-5 Appropriation with Exhibit A
APPROVED:

____________________________________
Douglas J. Schmitz, City Administrator

Date: ________________

Council Meeting Date: May 4, 2015

Agenda Item: 4.K
Page 3

RESOLUTION 2015A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

APPROVING A PAVEMENT RESTORATION AGREEMENT WITH PG&E AND
ADOPTING REVISIONS TO THE FISCAL YEAR 2014-2015 BUDGET FOR THE 2014
STREETS PROJECT

WHEREAS, the City Council approved the Fiscal Year 2014-2015 Operating
Plan and Budget by Resolution 2014-044 dated June 10, 2014; and
WHEREAS, City Council approved Fiscal Year 2014-2015 mid-year budget
adjustments totaling $660,000 by Resolution 2015-14 dated February 3, 2015; and
WHEREAS, Pacific Gas and Electric has proposed to reimburse the City for the
cost of paving restoration work associated with encroachment permit EN TEMP 13-3;
and
WHERAS, the City wishes to commence with Phase II of its 2014 Streets Project
and projected costs for this Phase are anticipated to be greater than currently budgeted;
and
WHEREAS, the Fiscal Year 2014-2015 Budget adjustment request includes a
supplemental appropriation for the 2014 Streets Project, per the attached schedule,
Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF CARMEL-BY-THE-SEA DOES:
1. Authorize the City Administrator to execute the pavement restoration
agreement with PG&E for encroachment permit EN TEMP 13-03.
2. Approve an adjustment to revenues and expenditures of $485,830 for the
2014 Streets Project (account 13-76901), per the attached Exhibit A.
3. Increase the total Fiscal Year 2014-2015 annual budget appropriation to
reflect these adjustments.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA this 4th day of May 2015, by the following roll call vote:
AYES:

COUNCIL MEMBERS:

NOES:

COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

APPROVED:

________________________________
Jason Burnett
Mayor

ATTEST:

______________________________
Lee Price, MMC
Interim City Clerk

Council Meeting Date: May 4, 2015

Agenda Item: 4.K
Page 4

City of Carmel-by-the-Sea
Supplemental Appropriations Request
Mid-Year Budget Adjustment
At 4/30/2015

Department
Public Works

Description
2014 Streets Project- Phase II- PG&E Costs

Acct No
13-76901

Public Works

2014 Streets Project- Phase II- City Supplemental

13-76901

Amount
Reason
200,580 advance for forthcoming reimbursement by PG&E for street
restoration costs associated with permit EN TEMP 13-03
285,250 increased costs associated with City work for Phase II

Funding Source
Measure D Prior Year Fund Balance
Measure D Prior Year Fund Balance

Resolution 2015___
Exhibit A

Council Meeting Date: May 4, 2015

Agenda Item: 4.K
Page 5