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Authorize the Director of Resource Management to execute a first amendment to the Memorandum of Agreement for funding the construction of the State Route 37/Fairgrounds Drive Improvement Project
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors authorize the Director of Resource Management to execute a first amendment to the Memorandum of Agreement for funding the construction of the State Route 37/Fairgrounds Drive Improvement Project.
SUMMARY:
Solano County, the City of Vallejo, and the Solano Transportation Authority (STA) have partnered on various project development phases and delivery of the current Highway 37/Fairgrounds Drive Improvement Project (“Project”). The Project will provide congestion, mobility, transit, and safety enhancements at the Fairgrounds Drive and Highway 37 interchange, including roadway corridor improvements in front of the Solano County Fairgrounds. On June 11, 2024, the County and STA entered into a Memorandum of Agreement (Attachment A) that established funding commitments for completing construction of the Project. As the lead delivery agency, STA put a construction contract out to bid in Fall of 2024 and received a low bid at $31 million, approximately $6.173 million over budget. STA was able to obtain $5.5 million in Regional Measure 3 Bridge Toll funds to execute the construction contract but still requires $850,000 in additional local funds to fully fund the construction gap.
STA is seeking approval of a first amendment to the MOA Amendment (Attachment B) to facilitate full construction funding. The amendment would provide the Project with $500,000 in additional Transportation Development Act Article 4 funds and $350,000 in Regional Transportation Impact Fee funds from the County’s funding allotments for the construction contract. STA has proposed a funding swap by repurposing $850,000 in remaining federal earmark funds from the Project to the County’s Mobility Hub Project at the Fairgrounds property.
The Department recommends approval of the funding swap as it will provide full funding to the Highway 37/Fairgrounds Drive Improvement Project while simultaneously providing needed funding for the County’s Mobility Hub Project. Approval by the Board authorizes the Director of Resource Management to execute the first amendment to the MOA and to facilitate the funding transfers.
FINANCIAL IMPACT:
The Amendment totaling $850,000 in funding sources to the Project are specifically eligible as they meet the funding requirements for transit, bicycle, pedestrian, and regional connection projects. These State and regional funding sources will provide full Project funding without any impact to the County’s General Fund or Road Fund. The $850K federal earmark funds that will be repurposed to the Fairgrounds Mobility Hub will likely be spent on the future construction phase and will provide many opportunities for other regional and State matching funds for expenditure. The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2024/25 Working Budget.
DISCUSSION:
Since 2006, the County has worked collaboratively with the City of Vallejo (City) and STA on several improvements to transportation infrastructure along Fairgrounds Drive, and its intersection/interchange with Highway 37 and Redwood Parkway. In 2021, STA, the City and the County entered into an amended Funding Agreement for the plans, specification and estimate (PS&E) phase of the SR 37/Fairgrounds Drive Improvement Project in order to bring the Project to shovel-ready status. The MOA that followed allowed the Project to proceed into construction.
Funding Package
The $850,000 first amendment will result in a total MOA funding commitment of $4.85 million from Solano County to complete the Project construction funding, and contains the following funding sources:
1) $800,000 in State Transit Assistance Funds (STAF)
2) $800,000 in STA Letter of No Prejudice (LONP) State funds
3) $2.0M (previously $1.5M) in Transportation Development Act Article 4 (TDA 4) funds (County allocation)
4) $850,000 (previously $500,000) in Regional Transportation Impact Fee (RTIF) District 7 funds
5) $266,331 in Transportation Development Act Article 3 (TDA 3) funds
6) $133,669 in Transportation Funds for Clean Air (TFCA) funds
The Department of Resource Management has coordinated this funding strategy with STA and the City to ensure funding applicability. The Project benefits the City of Vallejo by rehabilitating and improving Fairgrounds Drive, including traffic safety improvements, and installing bike lanes, pedestrian sidewalks/crossings, signage, transit stops and landscaping. The Project will provide a significant benefit to the Solano County Fairgrounds and the County’s Solano360 project effort because the various improvements on Fairgrounds Drive and the Highway 37 Interchange are required for enhancing and mitigating the future development of the Solano360 Specific Plan.
The Fairgrounds Mobility Hub project currently maintains $2.1 million in federal funds set for construction of the estimated total cost of $3 million. The $850,000 in swapped federal earmark funds, along with some future State and/or regional funds, will fully fund the project construction, which is anticipated in FY2026/27.
Once the first amendment to the MOA is executed, STA will proceed and should complete construction of the Project over the next 18 months. Department of Resource Management staff will continue to work with staff from STA and the City of Vallejo to ensure all funding listed in the MOA is applied to the Project.
ALTERNATIVES:
The Board may choose not to authorize the Director of Resource Management to execute the Amendment. This is not recommended because the first amendment to the MOA will fully fund the Project utilizing State and regional fund sources without needing General Fund or Road Fund and meets the anticipated improvements identified in the Solano360 Specific Plan.
OTHER AGENCY INVOLVEMENT:
Staff from Solano Transportation Authority, City of Vallejo and Caltrans have been involved in the development of the Amendment and the MOA funding plan.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION