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Home My WebLink About7.1 Update on the Dublin Boulevard Extension Project and Funding PlanAgenda Item 7.1 fiI` STAFF REPORT l CITY COUNCIL DUBLI N C A L I F O R N I A DATE: March 21, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU 13,ECT: Update on the Dublin Boulevard Extension Project and Funding Plan Prepared by: Colleen Tribby, Assistant City Manager and Pratyush Rhatia, Transportation and Operations Manager EXECUTIVE SUMMARY: The City Council will receive an update on the Dublin Boulevard Extension Project and potential funding sources. The City of Dublin, in cooperation with the City of Livermore, Alameda County Transportation Commission, and Alameda County, proposes to extend Dublin Boulevard approximately 1.5 miles eastward through unincorporated Alameda County and connect to North Canyons Parkway in Livermore, from its current terminus at Fallon Road. The extension is planned to have four to six travel lanes, a Class I trail on the north side, buffered bike lanes, sidewalks, traffic signals, streetlights, utilities, and landscaping. STAFF RECOMMENDATION: Receive the report and provide direction on advancing funds to cover future impact fees that will be allocated to the project. FINANCIAL IMPACT: There is no financial impact associated with the receipt of this report. The total cost of Dublin's share of the right-of-way acquisition and project construction is estimated at $124 million. Funding sources include the East Dublin Traffic Impact Fee (EDTIF) fund ($63 million) and the Tri-Valley Transportation Development Fee ($13.5 million), with the remaining $47.5 million unidentified. Staff plans to pursue grants to cover this balance. Because EDTIF funds are collected when development happens and are not currently available to spend on the project, the City would need to advance that portion of funding to keep the project on track. Staff's recommendation regarding the advance is discussed in the body of this Staff Report. Page 1 of 4 223 DESCRIPTION: Background The Dublin Boulevard Extension Project proposes to extend the roadway approximately 1.5 miles from Fallon Road to North Canyons Parkway in the City of Livermore, through an unincorporated portion of Alameda County. The preliminary cost estimate for the project is currently $151.5 million, which includes right-of-way, environmental mitigation, and construction costs. It is expected that Dublin's share will be approximately $124 million, and Livermore's share will be approximately $27.5 million, based on the roadway length in each jurisdiction and a split of the portion of the roadway in unincorporated Alameda County. The Alameda County Transportation Commission (Alameda CTC) is the implementing agency for the final design phase in cooperation with Dublin, Livermore, and Alameda County. On May 19, 2020, the City Council approved a Cooperative Agreement with Alameda CTC and Livermore for the design phase of the project (Resolution No. 38-20). Project Status Currently, the design phase is in the 65% plans, specifications, and estimate (PS&E) review by the City of Dublin, City of Livermore, Alameda County, Dublin San Ramon Services District (DSRSD), and the Zone 7 Water Agency. The 65% PS&E review is the midpoint in a typical 35-65-95 design and review process (some designers and projects refer to a 30-60-90 process). The 65% design includes plans showing typical cross -sections, right-of-way, utilities including drainage/stormwater details, sanitary sewer and water, signing and striping, traffic signals, signal interconnect, streetlighting, landscaping, storm water treatment, and Cottonwood Creek bridge details. It is during the 65% stage where all major design elements are decided, and the extent of the project right-of-way should be determined. Upon completion of the 65% review, the right-of- way appraisal process and acquisition typically gets started. Table 1 shows the project schedule by phase. Table 1- Project Schedule Project Phase Start Date Anticipated Completion 65% Design In Process Summer 2023 95% Design Summer 2023 Summer 2024 Right of Way and Utilities Summer 2023 Summer 2025 Final Design Summer 2024 Winter 2024 Environmental Permitting Fall 2024 Spring 2025 Construction TBD - Funding Dependent TBD Before the project moves into the construction phase, permits are needed from regulatory agencies due to the project's direct and indirect impacts. To receive permits, the project must mitigate these impacts. On February 7, 2023, the City Council approved an agreement with RES Environmental Operating Company, LLC for environmental mitigation services for the project (Resolution No. 09-23). The Environmental Permitting phase will begin near the end of the design Page 2 of 4 224 phase and is anticipated to be complete by Spring 2025. Construction is anticipated to take 18 months and will not begin until all funding is secured, right-of-way is acquired, and all resource agency permits are issued. Project Funding and EDTIF Advance On December 21, 2021, the City Council adopted the update to the EDTIF, which includes this project (Resolution No. 144-21). As development occurs in the East Dublin program area, fees will be collected and will be allocated to the project up to the amount of approximately $63 million. Since EDTIF funding is not expected to be available by the time the construction phase starts but will be collected over the full buildout duration of Eastern Dublin, Staff has been exploring ways of advancing this funding so the project can proceed. Financing the advance through a bond sale or other means has been determined to be too costly, however Staff has evaluated internal funding sources and has identified a list of sources that can be accessed to fund the advance without impacting City operations and with preserving the City's current cash flow reserve level. Table 2 provides Staffs recommended funding sources over three years, followed by a brief description of each source. Table 2 - Funding Sources for EDTIF Advance Funding Sources FY 22-23 FY 23-24 FY 24-25 TOTAL GF Assigned Reserve Balance $6,257,441 Economic Stability Reserve $8,000,000 One -Time Initiatives (Capital) $4,500,000 Dublin Crossing Fund $9,000,000 CFD Reimbursement $6,257,441 $8,000,000 $4,500,000 $9,000,000 $11,906,472 $11,906,472 GF Surpluses $10,000,000 $7,000,000 $6,400,000 $23,400,000 $37,757,441 $7,000,000 $18,306,472 $63,063,913 • General Fund Assigned Reserve - In August 2022, the City Council approved the setting aside of $20 million for the project to fund the environmental mitigation costs via the contract with RES. There is roughly $6.3 million remaining in that reserve that can be allocated to the EDTIF advance. • Economic Stability Reserve (ESR) - This reserve was established over eight years ago to allow for a balanced budget in the event of economic uncertainty. Since then, the General Fund undesignated/cash flow reserve has grown to about 85% of the budget, making the ESR not as critical in the short term. • One -Time Initiatives (Capital) Reserve - This is another long-term reserve that has been utilized for a variety of technological needs. It was last used this fiscal year for citywide signal communications upgrades. • Dublin Crossing Fund - This fund balance accounts for development agreement fees from the Dublin Crossing development. It is not currently appropriated to any program or project. • Community Facilities District (CFD) Reimbursement - Staff is working on a CFD Page 3 of 4 225 mechanism with the East of Fallon property owners that will reimburse the City for indirect mitigation costs paid to RES totaling $11.9 million. This amount could then be included in the EDTIF advance. • General Fund (GF) surpluses - Staff anticipates GF operating surpluses over the next three years that could be set aside to advance to the EDTIF. City Council Direction Needed Staff is seeking the City Council's direction and ultimate commitment to utilize internal funding sources to advance the EDTIF funds for the Dublin Boulevard Extension. While the money will not be spent until the construction phase, it is critical to have a funding plan in place to put the City in an advantageous position in seeking outside grant funding for the balance of the project costs. In fact, Dublin, Livermore, and Alameda CTC staff have been working together to identify local, regional, and federal funding sources for the project. By committing local funds for right-of-way, environmental permitting, and construction, the City can demonstrate project readiness, which will make the project more attractive to and competitive for grants such as the Alameda CTC 2026 Comprehensive Investment Plan. The notice of funding opportunity and call for projects for the 2026 Comprehensive Investment Plan is anticipated to be announced in Fall 2024. Additionally, development of the road is a critical factor in the East of Fallon properties coming online, which will have great value to the City. Economic Development staff are currently working with a consultant to develop a fiscal analysis on the economic impact this area will have on the City based on the current plans, but it is anticipated that the project will bring benefits in the form of property tax, potential sales tax, and creation of jobs, as well as closing a gap in the existing local roadway network connecting Dublin and Livermore. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: None. Page 4 of 4 226 Update on Dublin Boulevard Extension and Funding Plan March 21, 2023 The Project !�! DUBLI N CALIFORNIA 1.5 miles extension 6 lanes in Dublin to 4 lanes in Livermore Bike Lanes Sidewalk Landscaping Street Lighting Utilities 22s '0 Project Status • CEQA completed — EIR w/ MMRR Aug 2019 • NEPA completed— EA w/ FONSI, Feb 2021 • Cooperative Agreement with Livermore &Alameda CTC • MOA Design Review ($300,330 Dublin; $127,770 Livermore) • Design Phase began in May 2021 • 65% design in process • All major design elements and extent of right-of-way determined. • RES Agreement for Environmental Mitigation approved by City Council, Feb 2023 I&e DUBLIN CALIFORNiA 229 Project Schedule Project Phase 6 Design i Start Date In Process Anticipated Completion Summer 2023 5 Design Summer 2023 Summer 2024 Right of Way and Utilities S-umr 2023 Summer 2025 Final Design Summer 2024 Winter 2024 Spring 2025 Environmental Permitting Fall 2024 Construction TBD - Funding Dependent TBD I&! DUBLI N CALIFORNIA 230 Project Costs • Project Cost (2020 preliminary engineering level estimate) : $151.5M • Divided between Dublin and Livermore based on roadway length. • Unincorporated Alameda County costs are split evenly — Dublin: $ 124 M — Livermore: $27.5M • Dublin's identified funding sources include EDTIF ($63M),TVTD ($13 M) — Staff will seek grant funding for the remainder I&e DUBLIN CALIFORNiA 231 EDTI F Advance • Use GF reserves to advance EDTIF • Repayment expected in roughly 10 years Fund ittg S ou rces F Assigned Reserve Balance Economic Stability Reserve One -Time Initiatives (Capital) D u b l i n Crossing Fund CFD Reimbursement FY 22-23 FY 23,214 IFY 24-25 $ }57,441 $ � 000� 000 $4, 500, 000 TOTAL $ � 57,44I K0100,000 M906 247 F Surpluses 10 J000A00 $7,000,000 $6P400,000 400;000 3797579441 790 09000 $1913U6,472 $63,063,913 !�! DUBLI N CALIFORNIA 232 EDTI F Advance • Significant piece to funding plan in order to compete for grant funding opportunities • Potential Alameda CTC Comprehensive Investment Plan (CIP) 2026 Funding — if congestion relief funds are included in the Fall 2024 call for projects. • RFP out for grant writing services I&e DUBLIN CALIFORNiA 233 Next Steps • Continue to work with Zone 7 and Alameda County —review of Cottonwood Creek, bridge and improvements • Continue to work with City of Livermore, Alameda County, Zone 7 — review of the PS&E • Environmental Permitting towards end of Design Phase • Right-of-way Acquisition, and continue to work with private property owners • Funding Plan for Construction Phase — State, Federal Grants, and Measure BB I&e DUBLIN CALIFORNiA 234 Thank You I &� DUBLI N CALIFORNIA 235