Westminster City Council
SUBJECT
Title
Approval of Amendment No. 1 to Agreement No. 2023-009 between the City of Westminster and the City of Fountain Valley for Magnolia Street Improvements Project from Edinger Avenue to Heil Avenue.
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From: Jake Ngo, Public Works Director/City Engineer
Requested by: Administration
Prepared by: Theresa Tran, Senior Engineer
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RECOMMENDED ACTION
Recommendation
Approve the subject Amendment No. 1 to the existing Agreement No. 2023-009 with the City of Fountain Valley and authorize the City Manager execute it on the City’s behalf, in a form approved by the City Attorney.
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BACKGROUND
Agreement No. 2023-009 between the City of Fountain Valley and the City of Westminster
for Magnolia Street Improvement Project from Edinger Avenue to Heil Avenue was approved on February 28, 2023. The original share cost estimate for the City of Fountain Valley was $152,867, including the 10% contingency.
However, the federal funding rescinded soon after the agreement was approved for over a year until the State reallocated funds for the project. After receiving an authorization from Caltrans, the project was advertised, and then awarded by the Westminster City Council on August 14, 2024, to All American Asphalt, Inc.
Due to the high inflation rate, the bid results were almost 25% higher than the original estimate of the entire project cost. Also, the City of Fountain Valley added some additional improvements within its jurisdiction, and the revised cost share for the City of Fountain Valley’s portion is $330,010, including the 10% contingency. Therefore, Fountain Valley City Council needed to approve the additional funding to the agreement to cover the increased share cost, and the amendment was approved on September 3, 2024. A signed Amendment No. 1 is attached to this report.
FISCAL IMPACT
At the award of the project, the City Council also approved the funds to cover the share cost of the City of Fountain Valley, which will be reimbursed to the City of Westminster after the project is complete; therefore, no additional funding appropriation is required at this time.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The approval of Amendment No. 1 to the existing Cooperative Agreement No. 2023-009 with the City of Fountain Valley will allow Magnolia Street to be improved from Edinger Avenue to Heil Avenue. The improvement costs for the portion within the City of Fountain Valley will be reimbursed to the City of Westminster.
ATTACHMENTS
1) Amendment No.1
2) Cooperative Agreement No. 2023-009
3) Exhibit A: Project Location Map.
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager