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Date: November 3, 2010 CONSENT CALENDAR
Subject: AMENDMENT NO. 1 TO THE INDIAN CANYON DRIVE WIDENING
CVAG REIMBURSEMENT AGREEMENT
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Approval of Amendment No. 1 to the reimbursement agreement between the City of
Palm Springs and the Coachella Valley Association of Governments ("CVAG")
(Agreement No. 4593) revises the total authorized Measure A amount to $4,500,000 for
the Indian Canyon Drive Widening through the Whitewater River (City Project 01-25),
revises the CVAG Regional Measure A share to 75% of total project costs, and
allocates the City's federal grant as credit for the City's local match.
RECOMMENDATION:
1) Approve Amendment No. 1 to Agreement No. 4593, a Reimbursement
Agreement with the Coachella Valley Association of Governments for the Indian
Canyon Drive Widening through the Whitewater River (City Project 01-25); and
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On November 26, 2002, City Council approved a Reimbursement Agreement with
CVAG (Agreement No. 4593) for the Indian Canyon Drive Widening through the
Whitewater River (City Project 01-25. The original agreement was to be funded 50% by
CVAG, and the City was successful in obtaining a $2,199,000 federal grant for this
project which was to be applied to the overall cost and as the City's 50% share.
City staff and the consultant (Dokken Engineering) have completed all environmental
review, permitting, right-of-way acquisition, and engineering design for this project. The
final project cost is now estimated at $4,500,000 which under the original funding share
would require a City local match of $2,250,000 — an amount slightly more than the
$2,199,000 federal grant obtained for this project.
ITE?,-' NO.�_---
City Council Staff Report
November 3, 2010- Page 2
Amendment No. 1 to Agreement No. 4593
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 federal
grant to the City's 25% local share, which has been accommodated on other City
projects.
On September 27, 2010, the CVAG Executive Committee approved Amendment No. 1
to the CVAG Reimbursement Agreement.
FISCAL IMPACT:
Total project costs are estimated at $4,500,000. Amendment No. 1 to the CVAG
Reimbursement Agreement revises CVAG's share at 75% of project costs and applies
the $2,199,000 federal grant to the 25% City local share. Ultimately, the City will have
$0 cost for developing and implementing this project, which will be funded entirely by
the federal grant and Regional Measure A funds.
SUBMITTED:
Prepared by: Recommended by:
Kvlr r
arcus L. Fuller David J. Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Approved by:
Thomas J. ilson, Asst. City Manager David H. Ready, Ci ger
Attachments:
1. Amendment No. 1 to Agreement No. 4593
2. September 27, 2010, CVAG Executive Committee Staff Report
2
AMENDMENT NUMBER ONE
to the
CITY OF PALM SPRINGS-CVAG
Reimbursement Agreement for the Project to Widen Indian Canyon Drive across the
Whitewater River Wash
THIS AMENDMENT NUMBER ONE is made and entered into this day of
, 2010, by and between 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 meeting in October 2002, the Executive Committee approved the request by the
City of Palm Springs to enter a Reimbursement Agreement for the Project to Widen Indian
Canyon Drive across the Whitewater River Wash from the Union Pacific Railroad crossing
bridge, just south of Interstate 10, south to Tram View Road. As was the policy at the time, the
Executive Committee agreed to pay 50% of qualified project costs. The current estimated
project cost is $4,500,000. In accordance with the current Reimbursement Agreement, the
CVAG share would be $2,250,000.
The City of Palm Springs is now ready to proceed to construction on this project and is
requesting Amendment Number One to the Reimbursement Agreement.
This Amendment Number One shall:
Modify the Original Reimbursement Agreement to Provide CVAG Regional Funds for 75%
of Qualified Project Costs, and;
Allow Surface Transportation Funds acquired by the City of Palm Springs to be applied
to the 25% Local Share of Project Costs, and;
Reduce the CVAG Regional Share of Project Costs by the amount of Surface
Transportation Funds in excess of the 25% Local Share of Project Costs, and;
Provide that any "Additional Qualified Funds" which the City of Palm Springs should
acquire for this Project be First Applied "Off the Top" to reduce initial Total Project
Costs, and;
Set a Cap on the CVAG Regional Share of Project Costs, in the Amount Not to Exceed
$2,301,000, and;
Authorize Establishing the "Time Trigger" to require Construction on this Project to
Begin within Two Years from the Date of Execution of this Amendment Number One, and;
Require the City of Palm Springs to repay any Regional Funds advanced for the initial/
earlier constructed phases of the Project, with interest, should the City fail to meet the
deadlines established by the Time Trigger as described, and;
Require that any regional funds advanced to the City of Palm Springs for the initial/
earlier phases of the project which are directed for repayment accrue interest at the rate
for the Local Agency Investment Fund (LAIF), as determined on July 15t of each year,
and;
Authorize the Executive Director, in consultation with CVAG General Counsel, to resolve
any Minor Inconsistencies in approving this Amendment Number One.
All other conditions of the initial Reimbursement Agreement shall remain in full force and
effect.
The parties hereto have caused this Amendment Number One 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 Yvonne Parks
Executive Director CVAG Chair
Item 7H
DATE: September 27, 2010
TO: EXECUTIVE COMMITTEE
FROM: Allyn S. Waggle, Deputy Executive Director
SUBJECT: Consider Amendment Number One to the Reimbursement Agreement with
the City of Palm Springs for the Project to Widen Indian Canyon Drive
across the Whitewater River Wash
STAFF RECOMMENDED MOTION: That the Executive Committee Approve Amendment
Number One to the Reimbursement Agreement with the City of Palm Springs for the
Project to Widen Indian Canyon Drive across the Whitewater River Wash, to:
1) Modify the Original Reimbursement Agreement to Provide CVAG Regional Funds
for 75% of Qualified Project Costs;
2) Allow Surface Transportation Funds acquired by the City of Palm Springs to be
applied to the 25% Local Share of Project Costs;
3) Set a Cap on the CVAG Regional Share of Project Costs, in the Amount Not to
Exceed $2,301,000;
4) Authorize Establishing the "Time Trigger" as described herein, to require
Construction on this Project to Begin within Two Years from the Date of Execution
of this Amendment Number One; and
5) Authorize the Executive Director, in consultation with CVAG General Counsel, to
resolve any Minor Inconsistencies in approving this Amendment Number One.
Transportation Committee: CONCURS (Meeting of August 30`h)
Technical Advisory Committee: CONCURS (Meeting of September 131h)
BACKGROUND: At their meeting in October 2002, the Executive Committee approved the
request by the City of Palm Springs to enter an agreement for the Project to Widen Indian
Canyon Drive across the Whitewater River Wash from the Union Pacific Railroad crossing
bridge, just south of Interstate 10, south to Tram View Road. As was the policy at the time, the
Executive Committee agreed to pay 50% of qualified project costs. The current estimated
project cost is $4,500,000. In accordance with the current Reimbursement Agreement, the
CVAG share would be $2,250,000.
The City of Palm Springs is now ready to proceed to construction on this project and is
requesting Amendment Number One to the Reimbursement Agreement. As part of the
amendment, the City of Palm Springs requests that CVAG increase the Regional Share of
qualified project costs from 50% to 75%, which policy was approved for all regional
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transportation projects when the Transportation Uniform Mitigation Fee (TUMF) was increased
in January 2007.
The City of Palm Springs has acquired Surface Transportation Program (STP) funds, and
requests that those funds be acknowledged as representing the 25% Local Share of project
costs. The STP funds allocated to this project, $2,199,000, far exceed the estimated 25% Local
Share of project costs. Any STP funds in excess of the 25% Local Share of project costs will be
applied to the CVAG Regional Share of project costs. In addition, any "Additional Qualified
Funds", from whatever source, will be applied against the total project costs before reductions
realized from assignment of the STP funds described herein.
As this proposed distribution is nearly identical to that which would have been encumbered
under the original Reimbursement Agreement CVAG staff supports this distribution of costs.
However, in keeping with CVAG's present efforts to closely monitor cash flow requirements,
staff is proposing certain conditions on this proposed amendment.
As the concept has been approved previously, 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 two years of the date of execution of the approved
Amendment Number One to the Reimbursement Agreement with the City of Palm Springs for
the Project to Widen Indian Canyon Drive across the Whitewater River Wash. If the project has
not started construction after two 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 15' of each year. Repayment schedules for regional funds will be subject to
negotiation and approval by the CVAG Executive Committee.
FISCAL ANALYSIS: Approval of Amendment Number One to the Reimbursement Agreement
for the Project to Widen Indian Canyon Drive across the Whitewater River Wash from the Union
Pacific Railroad crossing bridge,just south of Interstate 10, south to Tram View Road, increases
the CVAG regional share of project costs, by approximately $51,000, from what the original
Reimbursement Agreement would have established, based on the total estimated project cost
shown above. By this proposed. Amendment Number One the City of Palm Springs' share is
fully satisfied, and all of the STP funds are still applied to the project for which they were
approved.
This is a reasonable position for CVAG to assume, but it remains so only if the total estimated
project costs does not exceed $4,500,000. Using this cost estimate, the re-calculated CVAG
regional share of project costs is 51.1% of the present estimate. Under this scenario, should the
actual project costs become greater than the estimate, the CVAG regional share of project costs
would increase. In the alternative, the percentage of CVAG's share of total project costs would
decrease if the actual, total project costs become less than estimated. The point at which the
CVAG regional share of project costs would equal 50% of the present estimate, as the original
Reimbursement Agreement provided, using this re-calculated CVAG regional share of project
costs, is if the actual total project costs are closest to $4,449,000.
6
For this reason, staff proposes that a cap be set on the impact to CVAG's Cash Flow, a Not to
Exceed limit for the CVAG regional share of project costs being set at $2,301,000, which cost is
proposed by the City of Palm Springs.
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O� 4ALM S
A,prN Y Cit of Palm Springs
Department of Public Works and Engineering
3200 East Tahquitz Canyon Way•Palm Springs,California 92262
- p TO:(760)323-8253•Fax:(760)322-8325•Web:www.paimspringsea.gov
July 6, 2010
Mr. Allyn Waggle
Coachella Valley Association of Governments
73-710 Fred Waring Drive, Suite 200
Palm Desert, CA 92260
Re: Indian Canyon Drive Across the White Water River Wash
Federal Project SPUN 6282(023); City Project No. 01-25
Amendment No. 1 -Revised Request
Dear Allyn:
This letter supplements the City's previous letter of May 5, 2010. As a result of our request to
amend the agreement for this project, we have discussed how to address the City's $2,199,000
federal Surface Transportation Program ("STP") grant for this project and how it is credited to
the overall project costs. Generally, this issue is of concern because of our request to amend
the existing agreement to reflect current CVAG Executive Committee policy establishing a
funding share of 75% Regional / 25% Local-Measure A funds (as opposed to the former 50%-
50% split) on this project.
Repeating what we have outlined in our prior letters, the existing Agreement(unamended) has a
current maximum authorized expenditure amount of $3,324,000 of which CVAG Regional
Measure A funds are limited to 50% (or$1,662,000). The City has the following federal funds
obligated for this project:
Federal STP: $263,000 (design)
Federal STP: $1,936,000 (construction)
Total federal funds: $2,199,000
The final estimated costs for this project are as follows:
Environmental Approvals: $400,000
Design Engineering: $ 350,000
Right-of-Way: $ 100,000
Construction: $ 3,300,000
Construction Engineering: $ 350,000
Total Project Cost: $4,500,000
Less Federal STP Grant: $2,199,000
Net Project Cost: $ 2,301,000
Mr.Allyn Waggle
July 6, 2010
Page 2
We believe it is equitable and fair to reestablish the funding share for this project at a 75%-25%
split consistent with most other transportation projects funded in the Measure A Program.
Basing this funding share to the overall cost of the project would establish CVAG and City
funding obligations at.
( CVAQ (75% of$4,500,000) = $3,375,000
City(25% of$4,500,000) = $1,125,000
Our request would require an additional $1,713,000 CVAG Measure A funding obligation above
the current maximum of$1,662,000.
However, the above amounts do not reflect the City's $2,199,000 federal STP grant which
ultimately reduces the overall funding obligation otherwise due from CVAG and the City. But, as
you know, there is significant red tape,associated with any federal grant as relates to processing
the project through Caltrans, and it is our humble opinion that the City's efforts to secure the
federal grant and coordinate the project at the federal level through Caltrans is justification for
crediting the federal grant as the City's local share for this project.
Therefore, the net balance of $2,301,000 remaining after crediting the total project costs with
the$2,199,000 federal STP grant would be distributed as follows;
CVAG (100% of$2,301,000) = $2,301,000
City(0% of$2,301,000) = $0
This request would decrease the CVAG 75% funding obligation for this project (absent the STP
federal grant) from $3,375,000 to $2,301,000 (a savings of $1,074,000 to the Measure A
Program).
I have prepared a revised Exhibit"B"that could be used in this Amendment No. 1 (see enclosed
copy). If you have any questions, please feel free to contact me at (760) 323-8253, extension
8732, or by e-mail at Dave.Barakian@palmspringsca.gov.
Sincerely,
David J. Barakian, P.E., T.E., P.T.O.E.
irector of Public Works/City Engineer
enc
CC file
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EXHIBIT B
ESTIMATE OF COST
"INDIAN CANYON DRIVE ACROSS THE WHITE WATER RIVER WASH"
j ENVIRONMENTAL, DESIGN ENGINEERING, RIGHT-OIL-WAY,AND CONSTRUCTION
I
I
Environmental Approvals $ 400,000
Design Engineering $ 350,000
Right-of-Way $ 100,000
Construction $ 3,300,000
Construction Engineering 350,000
Total Cost $4,500,000
CVAG Original Share: $ 3,375,000
Local Original Share: $ 1,125,000
Offsetting Funds:
Federal STP(design): $ 263,000
Federal STP (construction): $ 1,936,000
Total Offsetting Funds: $ 2,199,000
Net Balance $ 2,301,000
CVAG Net Share: $2,301,000
Local Net Share: $ 0
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