City Council
MEETING DATE: 3/14/2018
TITLE:
Title
Re-open CIP 1010, the Da Vall/I-10 Interchange Development Project
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FROM:
John A. Corella, P.E. - City Engineer
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize the City Administrative Services Department (Finance) to re-open accounts and pay invoices related to CIP 1010 - the Da Vall Drive/I-10 Interchange Project (Project); authorize the Mayor to sign a letter requesting additional funding from CVAG to pay for Caltrans review participation; and authorize the City Manager and City Engineer to sign documents and certifications required and/or developed for the Project.
Body
BACKGROUND:
On April 1, 2009 Cathedral City and CVAG entered into an agreement that provided $1.3 million to fund the preparation of a Project Study Report (PSR) for the Da Vall Drive/Interstate-10 interchange Project (Project). The terms of the agreement provided that CVAG would fund 100% of the cost of the PSR. On May 27, 2009, Council approved a Design Professional Services Contract with TY Lin International, Inc. (TY Lin) to prepare the PSR.
In February 2011, CVAG placed the project on hold due to funding limitations. At the time, the Project had expended $565,068 and was approximately 35% complete. No work has been done on the PSR since that date. Recent discussions with CVAG indicated that the funding agreement is still valid and that CVAG currently could provide the remaining authorized PSR funds of $724,932 to complete the Project.
During this time City Council also requested Engineering Staff to continue with the Project. Based on this information and direction, City Engineering Staff contacted TY Lin and received a proposal to resume work and complete the PSR for a fee that does not exceed the remaining funds from the initial CVAG authorization.
DISCUSSION:
Due to the inactivity and passage of time, the account numbers associated with CIP 1010 have been closed by Finance. With the restart of work on the Project, City Council authorization to reopen the account numbers and expend City funds as required.
Prior to the stoppage of work in 2011, Cathedral City had a Cooperative Agreement with Caltrans District 8 that provided for Caltrans' oversight of the PSR process at no charge to the City. In Governor Brown's review of the 2011 California State Budget, the Governor eliminated the line item that funded Caltrans' participation in PSR preparations. In his veto message, the Governor stated:
"I (Governor Brown) am reducing this item by $6,408,000 to reduce personnel years by 47.5. State funds should be reserved to fund state projects and not to subsidize locally funded projects on the state highway system."
Because the previous Cooperative Agreement with Caltrans lapsed with the stoppage of work and funding for participation in local projects has not been reinstated in the State budget, Caltrans must charge Cathedral City for any time spent on the PSR. An estimate of up to $190,000 was prepared by Cal Trans and submitted to City Staff.
FISCAL IMPACT:
CVAG will reimburse the City 100% of the costs incurred to prepare the PSR up to a maximum of $724,932. A request from CVAG for the additional funding of up to $190,000 for Caltrans participation and review is required to complete the PSR. CVAG has requested that the City submit a letter "requesting the additional funding" to CVAG so that this item can be placed on the Agenda for the April Executive Committee for approval.
ATTACHMENTS:
Tom Kirk Letter