HomeMy WebLinkAbout10/19/2011 - STAFF REPORTS - 2.K. iy
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4<�FORN� City Council Staff Report
Date: October 19, 2011 CONSENT CALENDAR
Subject: AMENDMENT NO. 3 TO THE INDIAN CANYON DRIVE UPRR BRIDGE
WIDENING CVAG REIMBURSEMENT AGREEMENT
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Approval of Amendment No. 3 to the reimbursement agreement between the City of
Palm Springs and the Coachella Valley Association of Governments ("CVAG")
(Agreement No. 4394) revises the total authorized Measure A amount to $5,000,000 for
the Indian Canyon Drive UPRR Bridge Widening (City Project 01-11), and increases the
CVAG Regional Measure A share from 50% to 75% of net project costs.
RECOMMENDATION:
1) Approve Amendment No. 3 to Agreement No. 4394, a Reimbursement
Agreement with the Coachella Valley Association of Governments for the Indian
Canyon Drive UPRR Bridge Widening (City Project 01-11); and
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On September 5, 2001, City Council approved a Reimbursement Agreement with CVAG
(Agreement No. 4394) for the Indian Canyon Drive UPRR Bridge Widening (City Project
01-11). The original agreement was for a total project cost of $3,093,750 to be funded
50% by CVAG. The City was successful in obtaining over $2.1 Million in federal grants
for this project which were to be credited as the City's 50% share (creating an "excess
local share' of $585,185 to be applied to the City's share of project costs for the Indian
Canyon Drive 1-10 Interchange Project).
This project is federally funded, and as such requires coordination with the California
Department of Transportation (Caltrans). Caltrans, as the lead federal agency, has
responsibility to review the project for conformance with federal environmental laws and
to ensure compliance with state and federal regulations and design standards.
ITEM NO.. a`��
City Council Staff Report
October 19, 2011 - Page 2
Amendment No. 3 to Agreement No. 4394
Although the project commenced in 2002, a lengthy environmental review process was
required, with Caltrans issuing final environmental approvals in 2009. Federal rules
prevented the City from proceeding with final engineering design until after the
environmental clearance is obtained. The City initiated final design in late 2009.
The original scope of this project assumed widening of the existing UPRR bridge. This
assumption was based on all prior projects in the Coachella Valley involving widening of
existing railroad bridges, including the Gene Autry Trail UPRR bridge which is currently
under construction. However, recent UPRR policy implemented statewide dictates that
if existing railroad bridges do not allow for future expansion of railroad operations,
including construction of new tracks, widening the existing bridge will not be allowed by
UPRR. Essentially, this new UPRR policy communicated to the City in January 2010
requires the City to demolish the existing UPRR bridge and construct an entirely new
bridge to provide clearance for future UPRR tracks.
Despite our best efforts to prevail with UPRR on this policy, without UPRR's approval of
our bridge widening plans this project cannot proceed to construction. Therefore, a
complete change of scope to this project has been dictated by the UPRR requiring
demolition of the existing bridge and replacement with a new bridge structure. The
existing bridge is a 4-span bridge, the UPRR is allowing the City to construct a new
bridge with one pier in the UPRR right-of-way. The new 2-span bridge design impacts
the entire project, increasing the project footprint and requiring re-validation of the
environmental approval.
The changed scope dramatically increased the total cost of this project from just over $3
Million to $21,500,000. However, City staff pursued additional federal funding from
Caltrans to offset the increased cost of the project. Staff was ultimately successful in
securing an additional $14.5 Million in federal funds for the project.
Given the increased project cost it was necessary to request CVAG to amend the
funding agreement to allocate more Regional Measure A funds to this project. Staff
requested CVAG to consider an amendment to the reimbursement agreement that
establishes the CVAG funding share at 75% of project costs, which is now typical on all
CVAG funded projects. Staff also requested that CVAG continue to credit the City's
federal grants towards the City's 25% local share, which had previously been
accommodated on other City projects.
However, CVAG did not support the City's request to credit the federal grants City staff
have obtained for this project towards the City's local share. On September 26, 2011,
the CVAG Executive Committee approved Amendment No. 3 to the CVAG
Reimbursement Agreement with the stipulation that the federal grants the City obtained
for the project be "taken off the top" and the net project cost be divided 75% Regional
Measure A funding and 25% Local Measure A funding.
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City Council Staff Report
October 19, 2011 - Page 3
Amendment No. 3 to Agreement No. 4394
Thus, despite staffs best efforts to secure an additional $14.5 Million in federal funds for
this project, CVAG policy recently adopted with regard to outside funding on CVAG
projects requires that the funding be "taken off the top", rather than credited towards the
City's local share. In this case, the City's local share of project costs is increasing from
$0 with the original agreement to $1,250,000 with the amended agreement.
However, City staff did prevail in having CVAG honor the "excess local share" provision
of the original agreement, in that the $585,185 credit towards the City's local share of
costs for the Indian/1-10 Interchange will continue to be applied. This way, the City will
ultimately have $0 cost for the Indian/1-10 Interchange.
FISCAL IMPACT:
Total project costs are estimated at $21,500,000. Amendment No. 3 to the CVAG
Reimbursement Agreement revises CVAG's share at 75% of net project costs after
subtracting the $16.5 Million in federal funding City staff have secured for the project.
The net project cost is $5 Million with the City's 25% local share being $1,250,000 to be
budgeted from Local Measure A funding.
SUBMITTED:
Prepared by: Recommended by:
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Marcus Lam ��. Fidler- David J. Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Approved by:
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Thomas J. WilsW, Asst. City Manager David H. Ready, C' ager
Attachments:
1. September 26, 2011, CVAG Executive Committee Staff Report
2. Amendment No. 3 to Agreement No. 4394
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Staff Report
Subject: Amendment Number Three to the Reimbursement Agreement with the City
of Palm Springs for the Project to Improve Indian Avenue from Garnet Road
to, and Including,the UPRR Railroad Crossing
Through: Tom Kirk, Executive Director
Contact: Allyn Waggle, Deputy Executive Director(awagglea-cyag.oro)
Recommendation: Approve Amendment Number Three to the Reimbursement Agreement
with the City of Palm Springs, in accordance with adopted policies and procedures, for
the Project to Improve Indian Avenue from Garnet Road to, and including, the UPRR
Railroad Crossing, to modify the original Reimbursement Agreement to provide CVAG
Regional Funds for 75% of Qualified Project Costs, in the Amount not to exceed
$3,750,000.
Transportation Committee: Initially delayed action on this item until the Technical
Advisory Committee was able to review it. (Meeting of June 6'h)
Technical Advisory Committee: CONCURS (Meeting of June 13`h)
Transportation Committee: CONCURS (Meeting of August 29`h)
Background: In June 2001, the Executive Committee authorized the amount of $1,546,875 for
the design engineering and preparation of the environmental document for the project to
improve Indian Avenue from Garnet Road (South of 1-10) to, and including, the UPRR Railroad
Crossing Bridge. As was the policy at the time, the Executive Committee agreed to pay 50% of
qualified project costs.
In April 2003 the Executive Committee authorized Amendment Number One in the amount of
$28,300 to cover additional costs for the design consultant.
In February 2007 the Executive Committee authorized Amendment Number Two in the amount
of $50,100 for the design consultant who encountered an extensive schedule impact. The
prolonged schedule was due to several factors related to changes in Caltrans' requirements for
Environmental Documents, such as changed format, additional analysis, Caltrans personnel
changes, and the Caltrans review process.
The City of Palm Springs is now requesting Amendment Number Three to the Original
Reimbursement Agreement. The primary need for the amendment is to comply with changed
requirements adopted by the UPRR for any structures overcrossing their rail line. In addition, as
part of the amendment the City of Palm Springs requests that CVAG increase the Regional
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Share of qualified project costs from 50% to 75%. CVAG has typically honored this type request
from other jurisdictions as their projects have proceeded through the amendment process.
The revised cost estimate to complete this bridge project is approximately $21.5 Million. The
City of Palm Springs indicates it has successfully obtained funding of approximately $16.5
Million, leaving a remainder of approximately $5.0 Million. In addition to requesting the project
funding share be amended to provide 75% CVAG Regional Funds/ 25% Local Funds, the City
of Palm Springs is also requesting that CVAG be responsible for the entire remainder of $5.0
Million. At this time, staff cannot support that portion of the city's request. Applying the now
standard 75% Regional Funds/ 25% Local Funds formula, the CVAG share of the remainder
costs will be $3,750,000, and the Palm Springs share will be $1,250,000.
At the Technical Advisory Committee meeting of June 13'", a motion was made and seconded
to approve the Palm Springs request that CVAG be responsible for the entire remainder share
of$5.0 Million. That motion failed to carry with three Ayes, seven Nays, one Abstention and two
members absent. A second motion to adopt the staff recommendation, as presented above,
was successful. The motion carried with one Nay note.
In addition, and as the concept has been approved through CVAG Policy 10-04, staff proposes
approval of a "Time Trigger" as to when CVAG funds support may be withdrawn from this
project. The Time Trigger will provide that construction must begin within Four Years of the date
of execution of the approved Amendment Number Three to the Reimbursement Agreement with
the City of Palm Springs for the project to improve Indian Avenue from Garnet Road (South of I-
10) to, and including, the UPRR Railroad Crossing Bridge. If the project has not started
construction after four years, the City of Palm Springs will be required to again submit the
project for consideration to receive CVAG regional fund support.
Failure by the City of Palm Springs to comply with the conditions of the Time Trigger will require
the City to repay any regional funds advanced for the initial phases of the project which do not
meet the deadlines established by the Time Trigger as described. Regional funds subject to
repayment will accrue interest at the rate for the Local Agency Investment Fund (LAIF), as
determined on July I" of each year. Repayment schedules for regional funds will be subject to
negotiation and approval by the CVAG Executive Committee.
Fiscal Analysis: CVAG's current cash flow projections indicate a recurring negative balance of
regional transportation funds and CVAG has generally avoided new financial commitments in
the last two years. Staff is hopeful that the cash flow projections will continue to improve due to
actions taken by CVAG, as well as, hopefully, an improving economy. As described above, the
substantial leveraging opportunity of projects such as this one are the only new projects
approved by CVAG in the last two years. Still, CVAG's major commitments with higher priority
TPPS projects, such as the Jefferson Street/ Interstate 10 Interchange project, require a fiscally
conservative approach. Therefore "off-ramp" language has been added in the event regional
funds are not available at the time of construction of this project. Staff recommends language to
authorize that CVAG may decline, or delay, to provide regional funds for the project to improve
Indian Avenue from Garnet Road (South of I-10) to, and including, the UPRR Railroad Crossing
Bridge should it be determined that such action is necessary to maintain a minimum cash flow
balance of regional funds.
Contract Finalization: Minor changes/revisions may be made for clarification purposes by
CVAG Executive Director and Legal Counsel prior to execution.
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AMENDMENT NUMBER THREE
to the
REIMBURSEMENT AGREEMENT
with the
CITY OF PALM SPRINGS
forthe
PROJECT TO IMPROVE INDIAN AVENUE FROM GARNET ROAD TO, AND INCLUDING,
THE UPRR RAILROAD CROSSING
THIS AMENDMENT NUMBER THREE, effective this 26' day of September, 2011, by
and between the City of Palm Springs (Agency), and the Coachella Valley Association of
Governments, a California joint powers agency, (CVAG), and is made in reference to the
following:
At their June 2001 meeting the Executive Committee approved the Reimbursement
Agreement with the City of Palm Springs for the Project to Improve Indian Avenue from
Garnet Road to, and including, the UPRR Railroad Crossing. At the time, the estimated cost
for the design engineering phase of the project was $1,546,875. As Indian Avenue is a qualified
regional arterial roadway the project was approved for the then standard 50% funding from
CVAG regional funds.
In April 2003 the Executive Committee approved Amendment Number One to the
project, and in February 2007 approved Amendment Number Two to the Reimbursement
Agreement. Both amendments provided additional funds to implement the Reimbursement
Agreement.
The City of Palm Springs is now requesting Amendment Number Three to the
Reimbursement Agreement. The primary need for this amendment is to comply with changed
requirements adopted by the UPRR for any structures overcrossing their rail line.
In addition, and as part of Amendment Number Three, the City of Palm Springs requests
that CVAG increase the Regional Share of qualified project costs from 50% to 75%. CVAG has
typically honored this type request from other jurisdictions as their projects have proceeded
through the amendment process.
The revised cost estimate to complete this bridge project is approximately $21.5 Million.
The City of Palm Springs indicates it has successfully obtained funding of approximately $16.5
Million, leaving a remainder of approximately $5.0 Million. Applying the now standard 75%
Regional Funds/ 25% Local Funds cost sharing formula, the CVAG share of the remainder
costs will be $3,750,000, and the Palm Springs share will be $1,250,000.
This Amendment Number Three to the Reimbursement Agreement with the City of
Palm Springs for the Project to Improve Indian Avenue from Garnet Road to, and
including,the UPRR Railroad Crossing shall:
Approve and Authorize CVAG Regional Funds for the Project to Improve Indian
Avenue from Garnet Road to, and including, the UPRR Railroad Crossing in the amount
not to exceed$3,760,000, and;
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Increase the Regional Share of qualified project costs from 60% to 76% for this
portion of the Project to Improve Indian Avenue from Garnet Road to, and including, the
UPRR Railroad Crossing, and;
Establish a "Time Trigger" which will require that construction of the Project to
Improve Indian Avenue from Garnet Road to, and including, the UPRR Railroad Crossing
must begin within Four Years of the date of execution of Amendment Number Three to
the Reimbursement Agreement with the City of Palm Springs, and;
Require that failure by Agency to comply with the conditions of the "Time Trigger"
described above will require repayment of any regional funds advanced for the Project to
Improve Indian Avenue from Garnet Road to, and including, the UPRR Railroad Crossing.
Repayment schedules are subject to negotiation and approval by the CVAG Executive
Committee, and;
Establish that CVAG may decline, or delay, to provide regional funds for the
Project to Improve Indian Avenue from Garnet Road to, and including, the UPRR Railroad
Crossing should it be determined that such action is necessary to maintain a minimum
balance of regional funds.
All other conditions of the approved Reimbursement Agreement for the Project to
Improve Indian Avenue from Garnet Road to, and including, the UPRR Railroad Crossing, as
well as Amendment Number One and Amendment Number Two thereto, shall remain in full
force and effect.
The parties hereto have caused this Amendment Number Three to the
Reimbursement Agreement with the City of Palm Springs for the Project to Improve
Indian Avenue from Garnet Road to, and including, the UPRR Railroad Crossing to be
executed by their duly authorized representatives on the above-referenced date.
ATTEST: AGENCY:
CITY OF PALM SPRINGS
By: By:
City Manager Mayor
CVAG
By: By:
Tom Kirk John J. Benoit
Executive Director CVAG Chair
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