HomeMy WebLinkAbout09-023 Authorizing bid solicitation for Upper Sims Way Improvement ProjectRESOLUTION NO. 09-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON, AUTHORIZING BID SOLICITATION FOR THE UPPER 5IMS
WAY IMPROVEMENT PROJECT
RECITALS:
A. This Resolution authorizes bid solicitation for the Uppers Sims Way project, and
accepts the City Manager's recommendation to utilize San Juan Avenue funding as a
possible reserve contingency funding source for Upper Sims Way if there is a funding
shortfall, and if other funding does not materialize. Following bid opening, the City
Council will have a clearer picture of project costs and funding, and will review the
City Manager's recommendations on construction (and scope of work) and project
funding. This Resolution does not authorize a construction contract. Award of any
contract is subject to final City Council approval after bid opening and review of
project costs and funding.
B. The City of Port Townsend has been involved over several years in a planning process
to define the nature and extent of improvements for Upper Sims Way transportation
improvements that seek to address, generally, projected increases in traffic volumes;
congestion; vehicular, pedestrian and bicycle traffic and safety; difficult left turns
onto and off of Sims Way; implementation of the Gateway Plan and creation of a
"gateway' to the City at Howazd and Sims and Discovery and Sims; and economic
development objectives (and constraints on economic development from lack of
infrastructure).
C. The City Council has held a number of workshops, study sessions, and public
meetings to review the project, and approved several Resolutions to define the project
and authorize additional work on the project. A summary of some of those
workshops, study sessions, and public meetings, and Resolutions, is set forth in
Attachment A, which copies Recitals from Resolution 08-039 (passed November 10,
2008).
D. On November 10, 2008, the City Council approved Resolution 08-039 which
provided additional policy direction and authority for Sims Way and Howard Street
improvements, and confirmed the City Council's intent to develop the overall project
in conformance with design concepts and drawings generally shown on the maps
mazked "Sims Way/Howazd Street Improvements" dated October 2008 (for Sims
Way) and "Sims Way/Howard Street Improvements" dated October 23, 2008 (for
Howard Street), presented at the October 23, 2008 workshop, and consisting of
roundabout intersection controls at Howard and Thomas, Sims Way improvements.
Howard Street improvements, and roundabout intersection improvements at Howard
and Discovery.
Resolution 09-023
E. On May 11, 2009, the City Council held a workshop to review the project status
including an update on cost and funding. The planning and design is substantially
complete, necessary easements to construct the project have been acquired, state and
federal project requirements have been met or will soon be met, and permitting and
the environmental process including SEPA has been completed. The overall
estimated project cost is $5,750,000 (including design studies, design, permitting,
value engineering, WSDOT costs, right of way acquisition costs, construcfion costs,
and underground utilities, construction engineering and testing, and water and sewer
upgrades). The construction bid (inclusive of underground utilities, construction
engineering and testing, and water and sewer upgrades) is estimated to range between
$3.2M and $4.OM. Project funding exists in the amount of $SM, leaving a potential
funding shortfall of $750,000, however, the actual shortfall, if any, will depend on the
amount of the construction contract.
F. Since the total cost of the project depends on the amount of the construction contract,
the City Council determines to authorize the solicitation of bids and then evaluate
funding options. As set forth below, funding options exist to make up a shortfall and
go forward with construction. Favorable bids are expected due to a favorable bid
climate. A favorable bid climate can result from supply and demand based on
economic conditions, such as exist now, that produce a larger pool of available
contractors without sufficient projects to perform (and contractors of higher quality
not engaged in other projects), and a smaller quantity of projects, leading to more
quality bidders being available to bid and bidders who submit lower bids.
G. Proceeding to bid now, and to construction if bids are favorable (and/or making up
any shortfall with other funding), also avoids the risk of losing federal stimulus
money for the project. WSDOT advises the City that the City is at risk of losing
federal stimulus monies for the project in the approximate amount of $359,000 if the
project does not go to bid by June, 2009.
H. Proceeding to bid now, and to construction if bids are favorable (and/or making up
any shortfall with other funding), also provides a potential benefit of obtaining
additional project funding. Projects that are "shovel ready" by late spring or early
summer, 2009 stand a better chance of receiving additional state, and federal, funding
assistance should it become available.
I. Proceeding to bid now, and to construction if bids are favorable (and/or making up
any shortfall with other funding), with construction scheduled to start in early fall,
2009, and estimated completion by late spring or early sununer, 2010, will result in
less inconvenience to tourists and disruption to the tourist season which is strongest in
the summer months, and less impact to businesses which benefit from tourists_ In
addition, City finances depend to a significant extent on sales taxes generated from
tourist expenditures.
Resolution 09-023
J. At the workshop on May 11, 2009, the City Manager and staff identified a number of
other funding sources to meet a shortfall, if there is one, including, public works trust
funds, congressional earmark, and other grants or loans. Staff identified use of San
Juan Avenue funding (from 2008 the capital projects bond) as a possible reserve
contingency funding source for Upper Sims Way if there is a shortfall, and if other
funding does not materialize. Council determines to accept the City Manager's
recommendation to utilize San Juan Avenue funding as a possible reserve
contingency funding source for Upper Sims Way if there is a shortfall, and if other
funding does not materialize.
K. Following bid opening, the City Council will have a clearer picture of project costs,
and can evaluate funding options to meet known project costs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Port Townsend as follows:
The City Manager is authorized to solicit bids for the Upper Sims Way project.
Following bid opening, the City Council will review the City Manager's
recommendations on construction (and scope of work) and project funding. This
Resolution does not authorize a construction contract. Award of any contract is
subject to final Ciry Council approval after bid opening and review of project costs
and funding.
2. The City Council accepts the City Manager's recommendation to utilize San Juan
Avenue funding as a possible reserve contingency funding source for Upper Sims
Way if there is a funding shortfall, and if other funding does not materialize.
ADOPTED by the City Council of the City of Port Townsend at a regular
meeting thereof, held this eighteenth day of May, 2009. /7
Michelle Sandoval, Mayor
Attest:
Approved as to form:
Pamela Kolacy, MMC John P. Watts
City Clerk City Attorney
Resohdion 09-023
Exhibit A to Resolution 09-023
The following is copied from Resolution 08-039 (passed November 10, 2008), and
summarizes a number of workshops, study sessions, public meetings and City Council
actions concerning the Upper Sims Way Project.
A. Community workshops to help define the Upper Sims and Howard Street vision
were held on September 12, 2006, October 10, 2006, and January 17, 2007.
Elements of the vision were:
• A Port Townsend gateway with amixed-use of neighborhood where residents:
can walk and bike to work, local services and schools; pursue recreational
activities at nearby parks; gather for community events; and find a mix of
housing types.
• Treed Gateway west Upper Sims Way.
• Mixed-use development (medium density) between Sims Way and Discovery
Road, along Howard Street.
• Green public spaces integrated throughout.
• Light Industrial to remain.
• Low density commercial development along Sims Way.
- Auto oriented businesses.
B. Council held study sessions on February 12, 2007 and Mazch 12, 2007 to review
planning efforts on Upper Sims Way and Howard Street. On May 12, 2007,
Council took public comment on the Upper Sims Way and Howard Street project.
C. On June 18, 2007, the City Council adopted Resolution 07-016 which provided
the following:
• Adopted intersection controls for upper Sims Way with roundabouts at
Howard and at Thomas.
Directed staff, in consultation with W.H. Pacific, to continue with design
work for the adopted option for intersection controls and corridor
improvements, and directed staff to address in the design the project
objectives, including:
o Handle through traffic and turning movements
o Access to businesses on both sides of Sims (including delivery trucks)
o Improve safety (High Accident Corridor) - TIB
o Reduce accidents
o Better accommodate pedestrians and bikes
o Promote economic development
o An inviting Gateway
Directed staff to periodically report to the City Council on design work.
Directed staff to submit options for construction phasing based on available
funding and include recommendations concerning interim improvements, such
as, a center turn lane with appropriate access controls, pending full
implementation of intersection improvements.
Resolution 09-023, Exhibit A
D. In August, 2007, Council authorized a contract for a local improvement district
feasibility study.
E. On October 22, 2007, Council held a workshop to review conceptual design,
prepaze a plan for WSDOT approval, and directed staff to return to Council in
February 2008 with
• Revised conceptual design
• Updated cost estimates
• Funding plan and project phasing plan
F. In November, 2007, Washington State Ferries retired from the Port Townsend-
Keystone service the steel electric ferries due to safety issues. Fully restored
service is several yeazs out. In the meantime, service may be provided with a
smaller vessel, and at times there may be no ferry service.
G. Council held a workshop on April 14, 2008 and meeting on April 21, 2008 to
review concepts, plans and funding options to implement Upper Sims Way and
Howard Street improvements.
H. On Apri121, 2008, the City Council adopted Resolution 08-012 that made
findings as follows:
• "It would be advantageous, in order to minimize disruption from construction
on traffic, to proceed with Upper Sims Way and Howard Street improvements
while ferry traffic is down or at less than full service.
• "Proceeding with the project while ferry service is down or at less than full
service implements economic and transportation strategies to increase
business activity and improve transportation in the City.
• "Accomplishing the project on an integrated basis avoids individual owners
constructing infrastructure improvements on a piecemeal basis at greater cost
to the owners than if the improvements were done through a single public
project.
• "Preliminary information from a special benefit appraiser retained by the City
shows a completed project for Howard Street and intersection control at
Howard Street and Uppex Sims Way increases property values in the vicinity
by $5-7M. Funding from a local improvement district (LID) helps finance
public improvements by assessing property owners whose properties specially
benefit as a result of the improvements. LID financing allows owners to pay
for improvements over a period of years through assessments on benefiting
properties, at bond rates available to the City that are lower than if the owner
privately financed improvements."
Resolution 08-012 provided direction and approval that:
• Continued design work.
• Continued to explore funding options, including, to pursue additional funding.
Resolution 09-023, Exhibit A
Approved conceptual approval to realigning, through property exchanges with
owners, Howard Street to the west of the existing alignment.
Approved a preliminary concept presented by staff for construction
sequencing as follows: (1) Howard Street; (2) Howazd and Sims
intersections; (3) Thomas and Sims intersection; and (4) Sims Way between
Howazd and Thomas.
Approved a preliminary concept for a project timeline:
a. Preliminary Design -May 08 to Mar 09
b. Freeze the roadway layout -Jun 08
c. Submit Environmental Docs -Jul 08
d. Final Design - Ju108 to May 09
e. Right-of--Way -Jun 08 to Apr 09
£ LID Formation -May 08 to Nov 08
g. Construction - Ju109 to Feb 11
h. TIB/Leg Funding Available - Ju109
On September 2, 2008, Council approved Resolution 08-035 authorizing the City
Manager to execute a grant agreement with Jefferson County for Public
Infrastructure Funding for design and construction of improvements to Sims Way
(SR 20) and Howard Street.
J. On October 23, 2008, the City Council held a workshop and reviewed project
planning in light of recent national and world economic conditions that have
affected the housing and credit mazkets, including the municipal bond markets.
The Council determines:
• Despite economic conditions, the City should continue to invest in
infrastructure as part of a long-term strategy to build and grow tourism and
economic development activity.
• That without the project permits for private development in the vicinity will
be held up.
• That when economic conditions improve, having project improvements in
place will accelerate economic recovery and expansion.
• That the federal government will likely enact economic stimulus legislation in
the neaz future, and projects that aze planned and ready to build could receive
a priority
• That delays in construction will escalate the ultimate cost of the project.
• That financing the entire Howard Street improvements at this time through a
local improvement district (LID) would be problematic given the uncertainty
and downturn in the national economy and tightening of municipal bond
markets.
• That, alternatively to LID financing the entire Howard Street improvements
(where owners pay a fair share toward improvements that benefit their
property even if they do not develop their property until years latex), it makes
sense to evaluate funding some of the Howard Street improvements through
a latecomer agreement (where owners who need project improvements to
Resohedon 09-023, ExhibitA
develop their properties contribute a fair share toward the cost of
improvements, but do so when they develop their properties) and/or an LID
reduced in size and scope.
That given the above, and given funding sources and availability, it is
appropriate to continue with the overall project design, but shift previously
approved priorities and undertake implementation as follows: the
Howard/Sims roundabout and approaches (utilizing funding from County PIF,
federal, WSDOT, and contribution from properties that need these
improvements to develop), and Sims Way improvements and Sims/Thomas
roundabout and approaches (using state and federal monies that are earmarked
for Sims Way improvements and cannot be used for Howard Street
improvements). Final scope of the initial project implementation, expected to
begin in the spring of 2009, will depend on available funding and the
construction bidding climate. Once the above project improvements are
undertaken, and as economic conditions improve, then the Council can
determine sequencing of Howard Street improvements, as well as possible
funding through a LID of properties specially benefited by such
improvements.
That design and installation of utility improvements should proceed in
conjunction with or ahead of street improvements once the alignment of
Howard Street is finalized with adjacent property owners. To delay utility
improvements until after street improvements is uneconomic and damaging to
street improvements.
Resolution 09-023, Exhibit A