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HomeMy WebLinkAbout10 - Newport Center Transportation Improvement ProgramCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 10 February 22, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Stephen Badum - sbadum @newportbeachca.gov 949 -644 -3311 SUBJECT: NEWPORT CENTER TRANSPORTATION IMPROVEMENT PROGRAM AGREEMENT ISSUE: Staff is requesting the approval of the Newport Center Transportation Improvement Program Agreement with The Irvine Company to establish a program to implement traffic circulation enhancements within the Newport Center area. RECOMMENDATION: Approve and execute the Newport Center Transportation Improvement Program Agreement. DISCUSSION: On December 18, 2007, the City Council approved the North Newport Center Planned Community (PA207 -151). Included in that action was the approval of the North Newport Center Zoning Implementation and Public Benefit Agreement. Section 4.4 of that agreement established a program to implement circulation enhancements to the public rights of way and it was determined that the landowner, The Irvine Company (TIC), would contribute the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00) called the "Circulation Enhancement Contribution," (CEC) toward a series of circulation improvements from an identified list of projects. The proposed Newport Center Transportation Improvement Program Agreement will formally establish the project list and set procedures including the following: • Annual review, The City and TIC will meet annually to review the projects, funding, and priorities. • Basis for project costs, The City and TIC have jointly compiled the project list shown on Table 1 of the agreement. The costs shown are general costs estimates and are subject to refinement over the life of the program as more detailed information becomes available regarding the projects. The actual reimbursement costs will be based upon the actual contracted costs incurred to implement the subject projects including project development costs (including environmental assessments as necessary), design and construction. Upon completion of each project the final accounting of costs shall be reviewed and mutually agreed upon by City and Company in order to determine the final amount of the CEC contribution. Outside Funding, The project list shown on Table 1 exceeds available CEC funding. The City and TIC staff will seek to leverage CEC funding through grants and programs such as Measure M. Modification of the project list, The potential modification of the project list can occur upon mutual agreement between the City and TIC. Term of the agreement and disposition of fund balance at termination, The North Newport Center Zoning Implementation and Public Benefit Agreement provides for the balance of unused funds to be paid to the City after sixty (60) months of the execution of the agreement. Those funds would be deposited in a designated account and reserved for future projects benefiting traffic circulation in the Newport Center area. The recently completed San Miguel Widening project, which added an additional eastbound left turn creating a triple left turn to northbound MacArthur Boulevard, will be included a project under this agreement. The agreement also acknowledges the termination of the former Circulation and Open Space Agreement (CIOSA) between the City and TIC and that any balance of CIOSA funds be applied to the San Miguel Widening project. The frontage improvements on Avocado Avenue and the new signal at Farallon Drive will be considered a cost of the new Civic Center and those costs will not be eligible costs under this agreement. ENVIRONMENTAL REVIEW: This agreement is not a project as defined in the California Environmental Quality Act (CEQA) Implementing Guidelines. Individual projects resulting from this agreement will require the applicable documentation as required by California Environmental Quality Act (CEQA). FUNDING AVAILABILITY: No City funding is required for approval of this agreement. Submitted by: aIM f � ��s - . • v. — Public Works Director Attachment: Newport Center Transportation Improvement Program Agreement Newport Center Transportation Improvement Program Agreement Memorandum February 11, 2011 The City of Newport Beach (City) and the Irvine Company (Company) have established two programs addressing the need for transportation improvements within and around the Newport Center vicinity. These programs consist of the North Newport Center Zoning Implementation and Public Benefit Agreement (effective January 18, 2008) and the Circulation Improvement and Open Space Agreement (CIOSA) dated June 30, 1993. ). Both programs address the need for transportation improvements in the vicinity of Newport Center along with other land use and public benefit issues. In the case of both programs, a key component was to identify improvements necessary to the efficient functioning of the circulation system in the Newport Center vicinity, prioritize their need, identify funding sources for their implementation and coordinate their timely implementation. This Agreement is made as of to identify circulation improvements necessary within the Newport Center area, establish a prioritization for their implementation and identify the role of the North Newport Center Circulation Enhancement Contribution in the funding of the prioritized circulation improvements. L NORTH NEWPORT CENTER CIRCULATION ENHANCEMENT PROGRAM The North Newport Center Zoning Implementation and Public Benefit Agreement (effective January 18, 2008) ( ZIPBA), in Section 4.4 established a program to implement circulation enhancements to the public rights of way. It was determined that the Company (defined in ZIPBA as Landowner) would contribute the sum of Two Million Five Hundred Thousand Dollars ($2,500,000.00) called the "Circulation Enhancement Contribution" toward a series of circulation improvements from an identified list of projects that also included the ability to expand that list to include other improvements mutually agreed upon by City's Director of Public Works and the Company. The ZIPBA required that the contribution could be accomplished either by reimbursing the City for incurred costs on the agreed upon projects or, upon mutual agreement, for the Company to use portions of the Circulation Enhancement Contribution (CEC) to construct the mutually agreed upon improvements subject to City's approval. The list of circulation improvements identified in the ZIPBA, to which the CEC should be applied was for the design and construction of one or more of the following circulation improvements as determined by the City's Director of Public Works: (1) Widening of Avocado Avenue between San Miguel Drive and San Nicolas Drive; (2) Widening, operational improvements and /or other capacity enhancements to San Miguel Drive between MacArthur Boulevard and Avocado Avenue; (3) Installation of a traffic signal at the intersection of Newport Center Drive and San Nicolas Drive; (4) Installation of a traffic signal at the intersection of Newport Center Drive and Center Drive; and Page 1 of 6 (5) Other improvements as may be mutually agreed upon by City's Director of Public Works and Landowner (Company). 11. CIOSAAGREEMENT The CIOSA Protocol Agreement was established between the City and Company to implement key transportation improvements in the Newport Center vicinity largely on the basis of funding provided by the Company. As a part of implementing the CIOSA Program, the CIOSA Assessment District was formed to implement transportation related improvements and the CIOSA Protocol Agreement was established (dated December 11, 1995) and while the ZIPBA cancelled the Company's remaining rights and obligations under the CIOSA Ordinance, the CIOSA Protocol Agreement remained in force. Within the CIOSA Protocol Agreement, Section 5(H) provides for memorandums to be prepared and attached to the agreement, to memorialize implementation decisions reached pursuant to Section 5 — CIOSA Improvements /Procedures of the agreement. Section 5 also calls for periodic coordination between the City and Irvine Company in conjunction with the City's preparation of the proposed Capital Improvement Budget to assess the status of circulation improvements within the Newport Center area and implement them within the limits of the CIOSA district. III. NEWPORT CENTER TRANSPORTATION IMPROVEMENT PROGRAM During coordination between the City and the Company during the City's development of its 2010 Capital Improvement Program, it became clear that the interests of CIOSA program and the North Newport Center Circulation Enhancement Program overlapped and that coordination between these two programs was appropriate and necessary. To that end, this Agreement Memorandum is being established to document the decision to finalize the CIOSA Program and to identify the circulation improvements to be implemented through the CEC of ZIPBA through establishment of the Newport Center Transportation Improvement Program ( "NCTIP "). Review of the status of the CIOSA program, determined that the list of "Possible Future CIOSA ..Projects" identified in the last Protocol Memorandum Agreement (dated May 31, 2001) had been completed and that $450,322 remained in the CIOSA fund as of June 2010. Because the focus of the roadway improvements in the CIOSA Program had been in the Newport Center vicinity, it is appropriate and consistent to include these funds with along with those being provided by the North Newport Center CEC to implement circulation improvements within the NCTIP established by this Memorandum Agreement. Coordination between the City and Company identified a list of transportation improvements that were deemed beneficial to the operation of arterial roads in (and around the Newport Center vicinity as well as being consistent with the CEC. This list of projects, identified as the NCTIP (Table 1), is hereby intended to represent the list, and relative priority of the transportation improvements to which the North Newport Center CEC should be applied per mutual agreement of City and Company. These circulation improvements were assessed relative to their transportation benefits and the ability to be implemented efficiently and are presented in priority order in Table 1. Table 1 also includes the anticipated budget for each project as well as the potential CEC contribution applicable to each improvement. Therefore, Page 2 of 6 Table 1 summarizes the NCTIP established through this Memorandum Agreement, while recognizing that flexibility is inherent in this program both as the project budgets are subject to refinement based on actual costs and as the potential applicability of other funding sources are refined. During compilation of the list of projects included in NCTIP, it was mutually agreed that two projects from the list of potential improvements identified in the ZIPBA would not be included in this program due to changed circumstances. The widening of Avocado north of San Miguel (improvement 1 from the ZIPBA) was excluded since it is being implemented in conjunction with the City Hall /Park project, while installation of a traffic signal at Newport Center Drive and San Nicolas was excluded because the need for its implementation is not anticipated within the near -term future. IV. NEWPORT CENTER TRANSPORTATION IMPROVEMENT PROGRAM PROCEDURES The NCTIP has been formed to implement the North Newport Center CEC, which includes several requirements relative to utilization of the contribution. In order assure consistency with those requirements through this program, the following procedures are hereby established for the NCTIP: A. Annual Program Review The City and company shall, no less than once each fiscal year in. conjunction with preparation of the City's Capital Improvement Program, meet and confer regarding status of the program. This review should include a status review of the priorities, costs and implementation schedules, where applicable, for all projects within the NCTIP. These annual reviews shall occur annually until such time as the full $2.5 million Circulation Enhancement Contribution has been expended. B. Basis of Project Costs C. I It is acknowledged that the estimated project costs contained in Table 1 are, for the most part, based on general costs estimates and are subject to refinement over the life of the program as more detailed information becomes available regarding the projects and the potential availability and applicability of other funding sources. It is also acknowledged that the project costs are intended to include the actual contracted costs incurred to implement the subject projects including project development costs (including environmental assessments as necessary), design and construction. Upon completion of each project the final accounting of costs shall be reviewed and mutually agreed upon by City and Company in order to determine the final amount of the CEC contribution. Identification of Outside Funding It is acknowledged that funding sources other than those from the CEC are anticipated to be applicable to projects included in the NCTIP. Whether such outside funds come from City sources (such as CIOSA, the City Hall and Park Project, the Fair Share Program or the Capital Improvement Program), other development projects or other public funding programs, such funds could affect the final CEC amount for any NCTIP project Page 3 of 6 and, therefore, must also be identified when determining the CEC contribution amount at the close of project accounting. D. Identification of Project Construction Leads Though the ZIPBA presumes that the City will be the lead for constructing the Project, it also allows for the Company to use the CEC to construct projects subject to mutual agreement. Therefore, it is assumed that the City will be the lead for implementing the Projects contained in the NCTIP unless otherwise defined and mutually agreed upon through the review process described below in Section IVA. E. Modification of Project List It is recognized that the Project list identified in Table 1 is subject to change over the life of the program. It is intended that such changes be made through the Annual Program Review process and approved by the City concurrent with its approval of the City's Capital Improvement Program as described in Section IVA. F. CEC Fund Balance The status of the CEC balance shall be tracked through the Annual Program Review process described in Section IVA relative to both expenditures and project costs. Of particular importance is the need to track the expenditure and /or commitment of CEC funds with respect to remittance to the City of any balance of CEC funds not expended or committed on the date that is sixty (60) months after the effective date of the ZIPBA. It is hereby agreed that any balance paid to the City on that subject date shall be deposited by the City in an separate account designated only for expenditures on transportation - related improvements identified Table 1 and within the boundaries of the Newport Center Planning Area, including the bordering arterials. V. IMPLEMENTATION OF CIRCULATION ENHANCEMENT CONTRIBUTION This Agreement is intended to implement Section 4.4 of the ZIPBA through its designation of circulation improvements that are listed in the ZIPBA as.being potential recipients of the Two Million Five Hundred Thousand Dollars ($2,500,000.00) CEC. Projects 1 and 4 from Table 1 correspond to Improvements 2 and 4 from the project list in Section 4.4, while the remaining projects in Table 1 are compatible with Project 5 in Section 4.4 of ZIPBA. No part of the $2.5 million CEC is applicable to the Avocado widening project since that is included in the City's City Hall project. No CEC funds are designated toward the signalization of Newport Center Drive at San Nicolas Drive since the need for this project is not anticipated in the foreseeable future. This Agreement is also intended to establish the general magnitude and order of circulation - improvement projects to which the $2.5 million CEC should be applied as indicated by Table 1. It is furthermore anticipated that the improvements in Table 1 are of such magnitude that it is mutually agreed that expenditure of the maximum CEC limit of $2.5 million will be expended on only those circulation improvement programs listed in Table 1. V1. COMPLETION OF THE CIOSA PROTOCOL AGREEMENT Page 4 of 6 This Agreement is intended to complete the on -going coordination between the City and Company as established through the CIOSA Protocol Agreement. This determination of completion is deemed appropriate since all circulation improvement projects identified and mutually agreed to through the CIOSA Program have been completed and the City and Company hereby mutually agree that any remaining CIOSA funds will be applied towards the San Miguel widening project identified in Table 1. . VII. COMPLETION OF PROGRAM This NCTIP shall remain in effect until such time as the maximum CEC expenditure has been completed. At such time this Agreement and all related responsibilities shall terminate. SIGNATURE PAGE TO NEWPORT CENTER TRANSPORTATION IMPROVEMENT PROGRAM AGREEMENT MEMORANDUM ATTEST: By: Its: City Clerk APPROVED AS TO FORM: By: David R. Hunt Its: City Attorney THE IRVINE COMPANY LLC By: Its: By: Its: „CITY„ CITY OF NEWPORT BEACH By: Its: Mayor Page 6 of 6 J TABLE 1 Newport Center Transportation Improvements Program (December 8, 2010) H : \pdata \I0104745\Transportatlon Improvement Program \TABLE i Newport Center Transportation Improvements Program_12.08.2010.doc NOTE: * Per North Newport Center, "Zonirm''.. Implementation and Public benefit .Agreement" — Section 4.4 ** Reflecting City contributions of $450,000 (CIOSA funds) and $125,000 (City Hall costs for Farallon City Hall site entry). Page 1 of i CUMULATIVE CEC TOTAL PROJECT ESTIMATED POTENTIAL CEC POTENTIAL CONTRIBUTION PROJECT COST CONTRIBUTION (Ma)imum Contribution Limited to $2,500,000)* 1. San Miguel Widening and Intersection Improvements (MacArthur to west of Avocado) including: - Signal modifications at MacArthur and Avocado - Relocation of NW corner entry monument and pine tree $1,710,000 $1,135,000 ** $1,135,000 ** replacement 2. Upgrade Existing Newport Center Traffic Signals (City Project No. 03002009) including: - - Traffic Signal @ Anacapa/Newport Center Drive $900,000 $900,000 $1,995,000 - Si nai Modifications @ San MigueqNewport Center Drive 3. Newport Center Drive Larking Revisions $70,000 $70,000 $2,065,000 4. Traffic Signal at Newport Center @Center Drive $200,000 $200,000 $2,265,000 S. MacArthur / San Joaquin Hills Road — $1,145,000 Up to $1,145,000 $3,410,000 Construct EB Right Turn Lane and provide ROW 6. Operational Improvements' to streets adjacent to Blocks 500 and $500,000 $500,000 $3,910,000 600 of Newport Center 'Drive 7. Wayfinding and Directional`Signage Program $75,000 $75,000 $3,985,000 8. MacArthur / San Joaquih Hills Road — $2,100,000 Up to $2,100,000 $6,085,000 Construct a NB thru and convert WB free right to dual rights and provide ROW 9. Additional Improvements Mutually Agreeable to both parties TBD TBD TBD H : \pdata \I0104745\Transportatlon Improvement Program \TABLE i Newport Center Transportation Improvements Program_12.08.2010.doc NOTE: * Per North Newport Center, "Zonirm''.. Implementation and Public benefit .Agreement" — Section 4.4 ** Reflecting City contributions of $450,000 (CIOSA funds) and $125,000 (City Hall costs for Farallon City Hall site entry). Page 1 of i