HomeMy WebLinkAbout9/2/2009 - STAFF REPORTS - 5.A. ultoV'
City Council Staff Repo
Date: September 2, 2009 NEW BUSINESS
Subject: AMENDMENT NO. 2 TO THE PALM DRIVE/GENE AUTRY TRAIL AT
INTERSTATE 10 INTERCHANGE PROJECT REIMBURSEMENT
AGREEMENT
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Approval of Amendment No. 2 to the four-party agreement between the County of
Riverside, the City of Palm Springs, the City of Desert Hot Springs, and the Coachella
Valley Association of Governments ("CVAG") Reimbursement Agreement (Agreement
No. 4195) increases the total authorized Measure A amount by $14,490,240 to
$32,667,007 for Design Engineering, Environmental and Construction of the Palm
Drive/Gene Autry Trail at Interstate-10 Interchange Project.
RECOMMENDATION:
1) Approve Amendment No. 2 to Agreement No. 4196, increasing the total
authorized Measure A amount by $14,490,240 to $32,667,007 and amending the
total project cost to $38,808,720 for the Palm Drive/Gene Autry Trail at Interstate-
10 Interchange Project; and
2) Authorize the City Manager to execute all necessary documents; and
3) Direct staff as appropriate.
STAFF ANALYSIS:
On February 2, 2000, City Council approved the original Master Reimbursement
Agreement with CVAG (Agreement No. 4195) for the Palm Drive/Gene Autry Trail at
Interstate-10 Interchange Project (the 1-10 Project"), a four-party agreement between
the County, Palm Springs, Desert Hot Springs and CVAG. Amendment No. 1 to the
agreement was approved by Council on February 23, 2005, increasing the total
Measure A funds for the 1-10 Project by $16,652,767 for the right-of-way, construction
and construction management phases.
ITEM NO.
City Council Staff Report
September 2, 2009 - Page 2
Amendment No. 2 to Agreement No. 4195
The County is the Lead Agency for the 1-10 Project, and has made significant progress
in the last year having completed the final design and obtained Caltrans' approval of the
plans, and completing all right-of-way acquisition. The County has submitted a request
to Caltrans to obligate the federal funds programmed for construction, which includes
$4,574,000 in federal economic stimulus funds. The request is currently pending formal
approval by the Federal Highway Administration ("FHWA"), at which time the County will
be authorized to proceed with construction. Assuming receipt of FHWA approval by
September 1, the County anticipates moving forward with bidding in September with a
tentative start of construction by February 2010.
Now that the County is prepared to move forward with construction bidding, revised final
project costs have been identified. Exhibit B to Amendment No. 2 identifies the project
costs broken down by category, establishing a final estimated total project cost of
$38,808,720. Amendment No. 2 to the CVAG Reimbursement Agreement officially
programs a total of $32,667,007 of Measure A funds for the 1-10 Project, and was
approved by the CVAG Executive Committee on April 27, 2009.
FISCAL IMPACT:
Generally, the various 1-10 Interchange Projects (Indian Canyon Drive, Palm
Drive/Gene Autry Trail, Date Palm Drive, Bob Hope Drive/Ramon Road, and Jefferson
Boulevard) are funded by the standard 75% Regional Measure A / 25% Local Agency
funds commitment. Given that multiple local agencies benefit from the expansion of the
1-10 Interchange Projects, a benefit assessment study was previously prepared on
behalf of CVAG to further divide the overall 25% Local Agency share. The purpose of
the benefit assessment study was to distribute the 25% Local Agency share such that
the local agencies (County and/or cities) which would derive the greatest benefit from
the improved 1-10 Interchanges would be responsible for the highest proportionate costs
for that 1-10 Interchange project.
On that basis, the benefit assessment study was prepared using traffic engineering
analysis that determined total overall traffic that would use each 1-10 Interchange, and
the traffic generated within each local agency (County or city) that would use each 1-10
Interchange. The ratio of each local agency's traffic using the 1-10 Interchange to the
total traffic using the 1-10 Interchange determined that local agency's share of the
overall 25% Local Agency share for that 1-10 Interchange Project. The CVAG Executive
Committee previously approved the benefit assessment study in September 2003 which
equitably divides up the 25% Local Agency share to each local agency for each 1-10
Interchange Project.
The following Table outlines the City of Palm Springs' share of the overall 25% Local
Agency share of each 1-10 Interchange Project. The totals shown are estimated costs
which will change once each 1-10 Interchange Project is completed and final costs
4
City Council Staff Report
September 2, 2009- Page 3
Amendment No. 2 to Agreement No. 4195
determined. The City's liability of the overall 25% Local Agency share for the Indian
Canyon Drive and Palm Drive/Gene Autry Trail may be further reduced by "credits" for
federal grants the City received on adjacent arterial widening projects on Indian Canyon
Drive and Gene Autry Trail which would be applied to the City's share to those 1-10
Projects. The City's potential credits are not reflected in the Table.
Indian Palm Dr. / Date
Canyon Gene Autry Palm Bob Hope / Jefferson Total
Dr. Trail Dr. Ramon Rd. Blvd.
MeasureCost $32,000,000 $33,000,000' $32,000,000 $12,000,0002 $78,000,000 $193,000,000
CVAG 75% $24,000,000 $24,750,000 $24,000,000 $9,000,000 $52,500,000 $144,750,000
Local 25% $8,000,000 $8,250,000 $8,000,000_ $3,000,000 $19,500,000 $48,250,000
City % Of 50.50% 37.59% 20.60% 17.76% 0%
25% Share
Cityshare $4,000,000 $3,100,000 $1,6 00,000 $500,000 $0 $9,850,000
As seen in the Table above, the City of Palm Springs' individual local agency share for
the Palm Drive/Gene Autry Trail 1-10 Interchange was established at 37.59% of the
overall 25% Local Agency share. The final estimated total project costs covered by
Measure A funds is $32,667,007 (rounded to $33,000,000 in the Table above) of which
the 25% Local Agency share is approximately $8,200,000. The City of Palm Springs'
individual local agency share will be 37.59% of $8,200,000 (approximately $3,100,000).
The City's actual share will not be known until after the project is completed and final
costs are determined.
Assuming the City's liability for this project is around $3,100,000 it will be necessary to
consider options for paying the City's share to CVAG. The CVAG Executive Committee
has recently approved a request from Riverside County to enter into a 10-year payback
agreement with CVAG for the County's share of the Palm Drive/Gene Autry Trail 1-10
Interchange project. The Executive Committee has also approved the concept of 10-
year payback agreements with the cities, in the event other cities request a similar
arrangement as the County's. City staff has submitted a request to CVAG to consider a
10-year payback agreement for the Palm Springs' share of the 1-10 Projects, and will
bring the agreements to Council for consideration within the next year.
' The estimated total cost of the Palm urdoene Autry Trail 1-10 Interchange is $32,808,720 (rounded to
$33,000,000). The costs covered by Measure A funds of$32,667,007 (rounded to $33,000,000) does not
include the $4,574,000 in federal economic stimulus funds and other federal funds programmed for the
Froiect.
The estimated total cost of the Bob Hope/Ramon Rd, 1-10 Interchange is $67,000,000. The
$12,000,000 total cost shown in the Table above does not include the 335,000,000 federal economic
stimulus funds, and other state and federal funds programmed for the project. The remaining balance
estimated at S12,000,000 is funded with Measure A funds.
3 City share amounts are rounded.
City Council Staff Report
September 2, 2009 - Page 4
Amendment No. 2 to Agreement No, 4195
Although the terms of the payback agreement have yet to be determined, in consulting
with CVAG staff, the terms will include an interest rate equivalent to CVAG's carrying
costs (estimated from 3% to 6%) with annual payments to begin after completion of the
project when final costs are determined. Therefore, under the assumption that the
City's share of the Palm Drive/Gene Autry Trail 1-10 Interchange project is $3,100,000
and is paid to CVAG pursuant to a 10-year payback agreement at an interest rate of
6%, the City will begin annual payments to CVAG of approximately $400,000 starting
around spring 2012.
The City normally pays its 25% local share of Measure A funded projects with its own
Local Measure A funds. Typically, these projects include federal grants the City has
obtained on its own behalf which offset or cover the City's local share to CVAG.
However, the 1-10 Project costs are significantly more than any transportation project
the City has previously undertaken. All together, the five 1-10 Interchange Projects are
currently estimated to cost the Measure A Program a total of$193,000,000 of which the
overall 25% Local Agency share is over $48,000,000 which is subsequently divided up
among the County and cities on the basis of the CVAG benefit assessment study.
The City receives limited Local Measure A funds each year ($1,558,000 this fiscal year),
which are generally used to fund the City's overlay and slurry seal projects, as well as
local match funding for Regional Measure A and federal grant funded projects. As the
other 1-10 Projects move into construction and are completed, the City will incur
additional liability to CVAG for its share of those projects. The following is an estimated
timeline for the other 1-10 Projects and schedule for commencement of payments to
CVAG for the City's local share:
4th Quarter 2009 — Bob Hope Dr./Ramon Rd. starts construction
1 st Quarter 2010 — Palm Dr./Gene Autry Trail starts construction
2nd Quarter 2010 — Indian Canyon Dr, starts construction
4th Quarter 2010 — Date Palm Dr. starts construction
Jefferson Blvd. is not listed as the City's share is $0.
Assuming a two year construction period, the following is an estimated schedule of
when payments to CVAG of the City's local share of each 1-10 Project would begin:
1st Quarter 2012: $500,000 payment for Bob Hope Dr./Ramon Rd.
2nd Quarter 2012: $400,000 annual payments for Palm Dr./Gene Autry Trail
3rd Quarter 2012. $600,000 annual payments for Indian Canyon Dr.
1st Quarter 2013: $200,000 annual payments for Date Palm Dr.
4 The payment amounts assume a 10-year payback agreement with CVAG, at 6% interest, with the
exception of Bob Hope Dr./Ramon Rd where the City's total share of$500,000 is paid up front.
City Council Staff Report
September 2, 2009 - Page 5
Amendment No. 2 to Agreement No. 4195
If the current schedule for delivery of the 1-10 Projects is not delayed, in 2012 an
estimated $1,400,000 payment to CVAG would be required, and subsequently in 2013
estimated annual payments of $1,100,000 to CVAG would begin. These amounts
represent a significant portion of the City's annual disbursement of local Measure A
funds; using only Local Measure A funds to repay CVAG will severely limit the City's
ability to perform street maintenance and road construction during the payback period.
Therefore, as the 1-10 Projects move into construction it will be necessary to consider
whether the CVAG payments will be funded entirely with Local Measure A funds, or if
the CVAG payments will be funded partly or entirely from other fund sources.
Staff proposes to investigate and bring options to Council in the 2010/11 fiscal year
budget to include the possibility of bonding, future Measure A funds, use of existing
cash in designated accounts, and use of redevelopment funds as sources of funding to
cover the City's share of the 1-10 Projects costs to CVAG.
SUBMITTED:
David J. Barakian Thomas J. Wilson
Director of Public Works/City Engineer Assistant City Manager
David H. Ready, �f
City Manager
Attachments:
1. Amendment No. 2 to Agreement No. 4195
'i:FBrside Co.
Transportation
AMENDMENT NUMBER TWO
to the
COUNTY OF RIVERSIDE - CITY OF PALM SPRINGS - CITY OF DESERT HOT SPRINGS -
CVAG REIMBURSEMENT AGREEMENT
for the
PALM DRIVE/GENE AUTRY TRAIL INTERSTATE 10 INTERCHANGE PROJECT
DESIGN ENGINEERING, ENVIRONMENTAL DOCUMENT AND CONSTRUCTION
THIS AMENDMENT NUMBER TWO is made and entered into this day of
, 2009, by and between the County of Riverside ("Lead Agency"), the City of Palm
Springs ("Agency"), the City of Desert Hot Springs ("Agency")„ and the Coachella Valley
Association of Governments, a California joint powers agency, ("CVAG"), and is made with
reference to the following background facts and circumstances:
This Amendment Number Two obligates and authorizes work not previously authorized
under the terms of the existing reimbursement agreement, executed June 5, 2000. All other
provisions in the existing reimbursement agreement shall remain in force.
The CVAG Executive Committee, on April 27, 2009, approved this Amendment Number
Two to provide for new and revised requirements mandated by Caltrans and FHWA that were
required for the completion of the PA/ ED and PS&E, increased Right of Way Acquisition costs,
and anticipated increases in construction and construction management costs.
This Amendment Number Two authorizes the additional amount of $14,490,240 CVAG
regional funds forthe Palm Drive/Gene Autry Trail Interstate 10 Interchange project. The revised
Scope of Services,estimate of Cost,and updated Project Schedule are attached hereto as Exhibits
"A", -air, and "C", which are incorporated herein by this reference.
Summary:
Previously Obligated and Authorized for Expenditure (Original Agreement) $ 1,524,000
Previously Obligated Under Amendment Number One $ 16,652,767
New Obligations under this Amendment Number Two $ 14 490,240
Total amount obligated and authorized for expenditure32.fi67,007
6
JUN 16 2009 �; �,
A�fo
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The parties hereto have caused this Amendment Number Two to be executed by their duly U
authorized representatives on this date: F
ATTEST: AGENCY: v
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J
COUNTY OF RIVERSIDE a ¢
s
CL N
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By: nplITy By: cr
Ibrk of th oard of Supervisors ha rj of the Gard of Supervisors LL O m
KECIAHARPER-IHEM JI'` n3 , '{'
CITY OF PALM SPRINGS
By: By:
City Clerk City Manager
CITY OF DESERT HOT SPRINGS
By: By:
City Manager Mayor
CVA
By: By.
Larry Parrish, VA _�L'
G Chair
Interim Executive Director
7
JUN 16 2009 -3 �r
EXHIBIT A
SCOPE OF SERVICES
AMENDMENT NUMBER TWO
COUNTY OF RIVERSIDE - CITY OF PALM SPRINGS - CITY OF DESERT HOT SPRINGS -
CVAG REIMBURSEMENT AGREEMENT
PALM DRIVE/GENE AUTRY TRAIL INTERSTATE 10 INTERCHANGE PROJECT
DESIGN ENGINEERING, ENVIRONMENTAL AND CONSTRUCTION
Provide all technical and professional services including labor, material,equipment,transportation,
supervision, administration, review and expertise to provide for new and revised requirements
mandated by Caltrans and FHWA that were required for the completion of the PA/ED and PS&E,
increased Right of Way Acquisition costs, and anticipated increases in construction and
construction management costs to process an Environmental Document, Project Report, Right-of-
way engineering documents, Plans, Specifications, & Estimates and Construction of the project.
Environmental:
Environmental services shall include the following: Preparation of technical studies, reports and all
other documents necessary to obtain environmental clearance for this project. Processing of all
environmental documents for approval.
The Environmental Document will meet the requirement of CEQA and NEPA.
Project Report:
Preparation of a Project Report in accordance with the current Caltrans Guidelines as described
in the Caltrans Project Development Procedures Manual.
Right-of-Way Engineering documents:
Prepare all documents including plats, maps and legal descriptions to acquire necessary real
property for the project.
Plans, Specifications and Estimates:
Prepare Plans, Specifications and Estimates for the project in accordance with relevant Caltrans,
County and City standards. Process Plans, Specifications and Estimates for approval by the
appropriate agencies.
Construction:
Construction of a six lane interchange
EXHIBIT B
ESTIMATE OF COST
AMENDMENT NUMBER TWO
COUNTY OF RIVERSIDE - CITY OF PALM SPRINGS - CITY OF DESERT HOT SPRINGS -
CVAG REIMBURSEMENT AGREEMENT
PALM DRIVE/GENE AUTRY TRAIL INTERSTATE 10 INTERCHANGE PROJECT
DESIGN ENGINEERING, ENVIRONMENTAL DOCUMENT AND CONSTRUCTION
Preliminary Survey $ 259,207
Environmental Document $ 296,092
Design $ 2,097,965
Right-of-Way $ 1,831,915
Utilities $ 2,112,067
Construction $27,919,000
Construction Management $ 3,791,374
Construction Survey $ 501100
Total Cost $38,808,720
• !L
EXHIBIT "C"
PROJECT SCHEDULE
AMENDMENT NUMBER TWO
COUNTY OF RIVERSIDE - CITY OF PALM SPRINGS - CITY OF DESERT HOT SPRINGS -
CVAG REIMBURSEMENT AGREEMENT
PALM DRIVE/GENE AUTRY TRAIL. INTERSTATE 10 INTERCHANGE PROJECT
DESIGN ENGINEERING, ENVIRONMENTAL DOCUMENT AND CONSTRUCTION
Complete Design/PS&E May, 2005
Right of Way Certification April, 2009
Begin Construction November, 2009
Complete Construction November, 2011