HomeMy WebLinkAboutC27330B CA2 Design and Right-of-way Phases Portola Ave-I-10 Project 637-02STAFF REPORT
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
MEETING DATE: June 25, 2020
PREPARED BY: Tom Garcia, Director of Public Works
REQUEST: Approve Amendment No. 2 to the Reimbursement Agreement with
the Coachella Valley Association of Governments (CVAG) and the
County of Riverside for the design and right-of-way phases of the
Portola Avenue/Interstate 10 Interchange Project.
Recommendation
By Minute Motion:
1. Approve Amendment No. 2 to the Reimbursement Agreement with
CVAG and the County of Riverside for the design, right-of-way, and
construction phases of the Portola/1-10 project; and
2. Authorize the Mayor to execute the Agreement.
Strateqic Plan
This Project is not reflected in any specific item in the City's Strategic Plan.
Background Analvsis
On February 8, 2008, the City Council approved a reimbursement agreement (the
"Reimbursement Agreement" or "Agreement") with the Coachella Valley Association of
Governments (CVAG) for funding the design, right-of-way, and construction phases of
the Portola/1-10 interchange project (the "Project"). The agreement provides for
reimbursement of 75 percent of project costs in an amount not to exceed $54,075,000
and establishes the City of Palm Desert as the Lead Agency.
The City, CVAG, and Riverside County executed an amendment to the Agreement
("Amendment No. 1 "), adding the County of Riverside as a party to the Agreement, and
replacing the City of Palm Desert with the County of Riverside as the Lead Agency. The
City remained a party to the Agreement as an Agency.
Amendment No. 1 also established a "Time Trigger", which required that the Project begin
construction within five years of the date of approval of the Amendment by the CVAG
Executive Committee, which would require construction to start this year.
June 25, 2020 - Staff Report
Amendment No. 2 for Portola Interchange, Reimbursement Agreement with CVAG
Page 2 of 5
Riverside County requested that CVAG extend the Agreement by three years. On June
1, 2020, CVAG staff presented their Transportation Committee with a proposal for a
second amendment to the Agreement ("Amendment No. 2"), which would extend the
duration of the Agreement for the funding of design and right-of-way for one year, from
its current expiration date of June 29, 2020 to June 29, 2021. There is no extension for
the reimbursement of construction funding in Amendment No. 2, which would eliminate
over $38 million from the project that CVAG had previously committed to fund through the
original Agreement in 2008. As will be explained in greater detail, CVAG remains
committed to fund 75 percent of the design and right-of-way acquisition costs. CVAG may
commit some level of construction funding in the future, although an additional
amendment to the Agreement would be required to extend reimbursements to a
construction phase.
CVAG staff stated that several issues led to the recommendation to extend the
Agreement only for design, right-of-way, and utilities and not construction. One issue was
the increase in estimated project costs, which exceed the currently identified funding.
There is currently a project deficit and funding sources have not been identified to close
the gap.
Another issue was the burden that funding the Project at the currently agreed upon levels
would put on CVAG. According to CVAG, it would severely limit the agency's ability to
fund other projects in the region. To address this concern, CVAG staff included a
recommendation to complete a fiscal analysis that would evaluate their funding
obligations and impacts to local and regional funding sources due to revenue losses
experienced under the current economic slowdown.
Another area of concern highlighted by CVAG staff is that the Project has a 25/75
local/regional funding split that is unique in the region, with CVAG being responsible for
75 percent of the funding for the Project up to a limit of $54,075,000 and the local agency
responsible for 25 percent with no limit. This funding split was based on an original project
cost of $72,100,000. As written, if the Project were to cost more than the allocated
amount, the local agency would be responsible for everything in excess of the actual cost
less the $54,075,000 CVAG contribution.
The CVAG Executive Committee will take up the Transportation Committee's
recommendation to approve Amendment No. 2 at their June 29, 2020, meeting.
Proiect Funding: The total cost of the Project is currently estimated to be $110,924,000.
All calculations and expenditures in this staff report are based on the current cost
estimate. The breakdown of these costs are as follows:
June 25, 2020 - Staff Report
Amendment No. 2 for Portola Interchange, Reimbursement Agreement with CVAG
Page 3 of 5
Estimated Project Cost
Environmental, Design, Right-of-way, Utility Relocation $25,894,000
Construction, Inspection, Surveys $85,030,000
TOTAL ESTIMATED PROJECT COSTS $110,924,000
The project funding, including CVAG's contribution outlined in the original Agreement, is
$75,350,000, shown as follows:
Total Identified Project Fundinq u'Existing Agreement)
City of Palm Desert (SARDA) $15,000,000
Measure A (City of Palm Desert) $5,000,000
CVAG $54,075,000
STIP Funding $1,275,000
TOTAL FUNDING $75,350,000
Based on the Agreement, the difference between the estimated project costs and
identified funding (itemized above) identifies a shortfall of $35,574,000, as shown below:
Funding Shortfall: Existing_AAgreement
Total Estimated Project Costs $110,924,000
Total Identified Project Funding (Existing $75,350,OOOI
Agreement)
TOTAL PROJECT DEFICIT $35,574,000
The estimated project costs for the environmental, design, right-of-way acquisition, and
utility relocation phases is $25,894,000, of which CVAG is responsible for 75 percent, or
$19,420,500. With the adoption of Amendment No. 2, the Agreement will be extended for
one year for those phases of the Project. The construction phase, though, will expire,
together with any commitments to reimburse expenditures above $19,420,500. As the
contribution limit for the CVAG funding was set at $54,075,000 in the original Agreement,
this means that $38,654,500 in funding for the construction phase is not carried forward
in Amendment No. 2, as shown below:
Funding Excluded in Amendment No. 2
Original CVAG Funding $54,075,000
CVAG expenditures on desi ng , right-of-way, utilities $19,420,500
1 TOTAL FUNDING EXCLUDED $38,654,500
The total adjusted identified project funding, with the elimination of the CVAG
construction funding, is $40,965,500 as shown below:
June 25, 2020 - Staff Report
Amendment No. 2 for Portola Interchange, Reimbursement Agreement with CVAG
Page 4 of 5
Total Identified Project Funding (Amendment No. 2)
City of Palm Desert (SARDA) $15,000,000
Measure A (City of Palm Desert) $5,000,000
CVAG $19,420,500
STIP Funding_ $1,275,000
TOTAL FUNDING $40,965,500
Amendment No. 2, which renews the agreement for design and right-of-way phases only
(excluding construction), increases the Project funding shortfall to $70,228,500, as shown
below:
Funding Shortfall: Amendment No. 2
Total Estimated Project Costs $110,924,000
Total Project Funding (Amendment No. 2) $40 695 500
TOTAL PROJECT DEFICIT $70:228:000
Proiect Status: The Project is nearly ready to submit for design approval. Changes to the
pavement section were requested at the last Project Development Team meeting on June
11, 2020, which delayed the submittal by a few weeks, but once those changes have
been made the project plans are complete.
Right-of-way acquisition is also nearly complete, with the exception of ongoing
negotiations with Union Pacific. Completing these two phases will make the Project ready
for construction when and if funding has been secured.
Recommendations: Staff recommends that the City Council support Amendment No. 2 to
the Agreement and the recommendation of a fiscal analysis for regional funding
obligations and impacts on funding sources.
Staff also recommends that the project be made "Shovel Ready" by completing the plans
and specifications, including Caltrans approval. Included in making the Project shovel
ready is the recommendation to acquire all of the right-of-way needed for the Project.
Completing these phases of the Project will simplify the approval process should Federal
funding be secured for the project, as the funding and oversight associated with it will only
be needed for construction activities. Each phase of a project that uses Federal funding
requires compliance with Federal guidelines, which can delay a project if additional
reviews and approvals are needed. Limiting the Federal reviews and approvals to
construction only minimizes the impacts and changes to the project.
June 25, 2020 - Staff Report
Amendment No. 2 for Portola Interchange, Reimbursement Agreement with CVAG
Page 5 of 5
Fiscal Analvsis
The current Agreement between the City, CVAG, and Riverside County will expire on
June 29, 2020. Amendment No. 2 will extend the Agreement for the design, right of way,
and utility relocation phases of the Project for one year. Construction funding is not
included in Amendment No. 2 and will expire on June 29, 2020.
Under the current Agreement, there is a deficit of $35,574,000 in the currently identified
project funding based on the original Agreement. With the adoption of Amendment No. 2,
this deficit increases to $70,228,000. Without Amendment No. 2, the current Agreement
expires, leaving the City as the only source of funding for the Project.
The City deposited $15,000,000 in capital project bond funds with CVAG for this project,
of which CVAG has invoiced $883,900, leaving a current balance on deposit of
$14,116,100.
LEGAL REVIEW DEPT. REVIEW
PZ&bes-tHCWg-rea " 76M 57
Robert W. Hargreaves Tom Garcia
City Attorney Director of Public Works
City Manager Lauri Aylaian: 29
FINANCIAL
REVIEW
Janet M. Moore
Director of Finance
ASSISTANT
CITY MANAGER
f}ndy Fzr�sixnc
Andy Firestine
Assistant City Manager
ATTACHMENTS:
1. Vicinity map
2. Funding Agreement
3. Amendment No. 1
4. Proposed Amendment No. 2 (with CVAG Transportation Committee Staff Report)
UNION PACIFIC RAILROAD
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CVAG
COACHELLA VALLEY ASSOCIATION of GOVERNMENTS
Blythe - Cathedral City • Coachella - Desert Hot Springs - Indian Wells - Indio • La Quinta • Palm Desert • Palm Springs • Rancho Mirage
County of Riverside • Ague Caliente Band of Cahuilla Indians - Cabazon Band of Mission Indians - Torres Martinez Desert Cahuilla Indians
May 14, 2008
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Ms. Rachelle Klassen
City Clerk
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City of Palm Desert
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73-510 Fred Waring Dr.
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Palm Desert, CA. 92260
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Dear Ms, Klassen:
Enclosed please find an executed original of the future reimbursement agreement (FY2012/2013)
between the City of Palm Desert and the Coachella Valley Association of Governments (CVAG)
for "Portola Avenue Interstate 10 Interchange Project", Design, Right -of -Way and Construction.
If I may be of further assistance, or if you have any questions regarding this agreement, please call
me at (760) 346-1127.
Sincerely,
COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS
4
MARY M. GODFREY
Administrative Services Assistant
cc: Allyn Waggle, Deputy Executive Director
COPY 0c,b�C
DATE
73-710 Fred Waring Drive, Suite 200 • Palm Desert, CA 92260 • [7601346-1127 • FAX (760) 340-5949
Contract No. C27330B
CVAG - CITY OF PALM DESERT
FUTURE (FISCAL YEAR 2012/2013) REIMBURSEMENT AGREEMENT
"PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE
DESIGN, RIGHT-OF-WAY & CONSTRUCTION
THIS AGREEMENT is made and entered into thi!?8th day of February ,
2008, by and between the City of Palm Desert ("Agency"), and the Coachella Valley
Association of Governments ("CVAG"), a California joint powers agency, and is
made with reference to the following background facts and circumstances:
The "Coachella Valley Area Transportation Study," a valley -wide study prepared
under the auspices of CVAG, has identified various transportation and highway projects
throughout the Coachella Valley as projects of regional importance. These projects are
listed in the 2005 Update Transportation Project Prioritization Study document; and
Approval of a highway financing measure by the voters of Riverside County in
November, 1988, ("Measure A,") as well as the approval of an extension by the voters in
November, 2000, has created a source of funds with which to construct such projects;
and
CVAG by agreement with its member agencies and with the Riverside County
Transportation Commission ("RCTC"), has been designated as the agency through
which such funds are to be conveyed and disbursed for the purpose of completing said
regional transportation projects; and
The CVAG Executive Committee, on July 31, 2006, approved the implementation
of the amended Transportation Uniform Mitigation Fee ("TUMF") Ordinance to increase
the collected TUMF, effective January 1, 2007.
Under CVAG's policy of funding eligible projects by member jurisdictions,
effective January 1, 2007, a jurisdiction pays one -quarter of the eligible costs (the
"Jurisdiction One -Quarter") and CVAG pays the other three-quarters (the "CVAG Three -
Quarters"). Historically, the CVAG Three -Quarters has been paid as a reimbursement
to the jurisdiction, as invoices are submitted and approved.
CVAG has determined that as to member jurisdictions that do not participate in
the TUMF program, projects will continue to go forward under the existing
Reimbursement Policy.
Agency desires to proceed with a project known as "Portola Avenue/ Interstate
10 Interchange" (the "Project'). The total estimated project cost is $72,100,000, of
which the City of Palm Desert is responsible for 25%. CVAG's share is 75% of project
cost.
Contract No. C27330B
NOW, THEREFORE, in consideration of the mutual covenants and subject to the
conditions contained herein, the parties do agree as follows:
1. The program embodied in this Agreement for the reimbursement of funds
by CVAG shall apply only to those regional arterial projects that have heretofore been
identified in the CVAG 2005 updated list of projects. The Project is one of those
projects and is therefore eligible. This project will receive future funding in Fiscal
Year 2012/2013 contingent upon the availability of funds.
2. The Project is generally described and referred to as "Portola Avenue/
Interstate 10 Interchange", hereinafter the "Project."
3. Any excess property purchased to secure the necessary right-of-way for
the Project will be deemed to belong to the Regional Arterial Program. Excess property
will be disposed of in the best interests of the Regional Arterial Program in order to
recapture funds expended.
4. The scope of work for the Project is more particularly described in Exhibit
"A," entitled "Scope of Services," attached hereto and made a part hereof. The cost
estimate for the Project is more particularly described in Exhibit "B," entitled
"Estimate of Cost," attached hereto and made a part hereof. The cost estimate includes
a calculation intended to allow Agency to recover an amount representing the time of its
employed staff in working on the Project, as well as the amount Agency shall pay to
outside contractors in connection with the Project. Subject to the terms herein and all
applicable rules regarding allowed costs, the amount of the Jurisdiction One -Quarter
and the CVAG Three -Quarters shall be calculated by reference to the cost estimates as
shown on Exhibit "B." Exhibit "C," attached hereto and made a part hereof, is the
"Project Schedule."
5. It is the agreement between CVAG and Agency that, of the total Agency
share for the cost of the Project ($72,100,000), CVAG shall pay not -to -exceed
$54,075,000, and Agency shall pay its remaining Jurisdiction One -Quarter of covered
costs, as well as one hundred percent (100%) of all costs not eligible for reimbursement
by CVAG.
6. Agency agrees to seek reimbursement of seventy-five percent of only
those costs, up to the not -to -exceed limit, which are eligible for reimbursement by
CVAG, as outlined in Section IV, "Cost Determination/Expense Eligibility," of the CVAG
Policies and Procedures Manual.
6.1 Agency shall be responsible for initial payment of all covered costs
as they are incurred. Following payment of such costs, Agency shall submit invoices to
CVAG requesting reimbursement of seventy-five percent of those eligible costs
associated with the Project. Each invoice shall be accompanied by detailed contractor
invoices, or other demands for payment addressed to Agency, and documents
evidencing Agency's payment of the invoices or demands for payment. Agency shall
also submit a Project Completion Report, in a form acceptable to CVAG, with each
statement. Agency shall submit invoices not more often than monthly and not less
often than quarterly.
Contract No. C27330B
6.2 Agency shall, at the design stage of the Project, identify a project
specific ratio "Project Ratio" for the construction phase of the project that distinguish
between Capacity Enhancement items, Rehabilitation items or other items.
Agency shall apply that "Project Ratio" to the project construction cost and
provide CVAG with supporting documents that will clearly identify "Capacity
Enhancement" costs eligible for payment with TUMF, "Rehabilitation" costs eligible for
payment with Measure "A", and other costs that are not eligible for reimbursement by
CVAG.
All Invoices submitted to CVAG for reimbursement, shall include a table
identifying "Capacity Enhancement" costs eligible for payment with TUMF,
"Rehabilitation" costs eligible for payment with Measure "A", and other costs that are not
eligible for reimbursement by CVAG.
6.3 Upon receipt of an invoice from Agency, CVAG may request
additional documentation or explanation of the Project costs. Undisputed
reimbursement amounts shall be paid by CVAG to Agency within thirty (30) days.
6.4 If a post -payment audit or review indicates that CVAG has provided
reimbursement to Agency in an amount in excess of seventy-five percent of eligible
costs, or has provided reimbursement of ineligible Project costs, Agency shall reimburse
CVAG for the excess or ineligible payments within thirty (30) days of notification by
CVAG.
7. Prior to any final payment to Agency by CVAG, a final report shall be
submitted to CVAG by Agency containing a record of all payments made for said
Project and the source of funds of all such payments, together with a record of all
change orders, cost over -runs, and other expenses incurred. Final payment will
thereafter be paid by CVAG in accordance with its rules, regulations and policies
concerning project cost determination and expense eligibility.
8. The format used for all bids solicited by Agency for the Project shall
require itemization sufficient to allow quantities of each bid item to be easily discernible.
It shall be the responsibility of Agency to determine what quantity is for Capacity
Enhancement and/or Rehabilitation, and to provide CVAG staff with that information.
9. The parties agree that should unforeseen circumstances arise which result
in new work not covered in Exhibit 'A," an increase of any costs over those shown in
Exhibit "B," or other changes in the Scope of Work are proposed, CVAG will in good
faith consider an amendment to this. Agreement to provide for further appropriate
reimbursement if the proposed amendment is in accordance with the policies,
procedures, and cost determination/expense eligibility criteria adopted by CVAG.
10. Agency shall maintain an accounting of all funds received from CVAG
pursuant to this Agreement in accordance with generally accepted accounting
principles. Agency agrees to keep all Project contracts and records for a period of not
less than three years from the date a notice of completion is filed by the Agency on such
Contract No. C27330B
Project; or, if the Project is not one as to which a notice of completion would normally be
recorded, for three years from the date of completion. Agency shall permit CVAG, at
any reasonable time, upon reasonable notice, to inspect any records maintained in
connection with the Project. CVAG shall have no duty to make any such inspection and
shall not incur any liability or obligation by reason of making or not making any such
inspection.
11. The occurrence of any one or more of the following events shall, at
CVAG's option, constitute an event of default and Agency shall provide CVAG with
immediate notice thereof.
11.1 Any warranty, representation, statement, report or certificate made
or delivered to CVAG by Agency or any of Agency's officers, employees or agents now
or hereafter which is incorrect, false, untrue or misleading in any material respect;
11.2 Agency shall fail to pay, perform or comply with, or otherwise shall
breach, any obligation, warranty, term or condition in this Agreement or any amendment
to this Agreement, or any agreement delivered in connection with the Project; or
11.3 There shall occur any of the following: dissolution, termination of
existence or insolvency of Agency; the commencement of any proceeding under any
bankruptcy or insolvency law by or against Agency; entry of a court order which enjoins,
restrains or in any way prevents Agency from paying sums owed to creditors.
12. No waiver of any Event of Default or breach by one party hereunder shall
be implied from any omission by the other party to take action on account of such
default, and no express waiver shall affect any default other than the default specified in
the waiver and the waiver shall be operative only for the time and to the extent therein
stated. Waivers of any covenant, term, or condition contained herein shall not be
construed as a waiver of any subsequent breach of the same covenant, term or
condition. The consent or approval by one party to or of any act by the other party shall
not be deemed to waive or render unnecessary the consent or approval to or of any
subsequent or similar act.
13. This Agreement is made and entered into for the sole protection and
benefit of CVAG and Agency and no third person shall have any right of action under
this Agreement.
14. It is the intent of the Agency and CVAG that the Project be represented as
being funded by Measure "A" /TUMF funds. Ail public notices, news releases, and
documents shall indicate that the Project is being cooperatively developed by the
Agency, RCTC, and CVAG using Measure "A"/TUMF funds. Prior to initiation of on -site
construction, Agency agrees to provide at least one "Project Sign" to be placed in a safe
and visible location near the site of construction so that all travelers passing the location
have the opportunity to observe who the agencies are that are providing funds for the
construction of the Project. Exhibit "D," "Project Sign," provides a guide for Project Sign
format.
Contract No. C27330B
15. This Agreement is for funding purposes only and nothing herein shall be
construed so as to constitute CVAG as a party to the construction or in ownership or a
partner or joint venturer with Agency as to the Project. The Agency shall assume the
defense of, indemnify and hold harmless CVAG, its member agencies, and their
respective officers, directors, agents, employees, servants, attorneys, and volunteers,
and each and every one of them, from and against all actions, damages, claims, losses
and expenses of every type and description to which they may be subjected or put by
reason of or resulting from the actions or inactions of the Agency related to the Project
or taken in the performance of this Agreement or any agreement entered into by Agency
with reference to the Project. CVAG shall assume the defense of, indemnify and hold
harmless the Agency, its officers, directors, agents, employees, servants, attorneys, and
volunteers, and each of them, from and against all actions, damages, claims, losses,
and expenses of every type and description to which they may be subjected or put by
reason of or resulting from the actions of CVAG taken in the performance of this
Agreement.
16. Agency agrees to include in its contract specifications and bid documents
a requirement that all prime contractors shall name CVAG and its member agencies as
"also insured" on all liability insurance coverage required by Agency on each contract.
Agency will provide a copy of the Insurance Certificate to CVAG, depicting CVAG and
its member agencies as "also insureds," within 30 days of signing a contract with the
prime contractor.
17. Any dispute concerning a question of fact arising under this Agreement
that is not disposed of by voluntary negotiations between the parties shall first be
decided by the CVAG Executive Director or designee, who may consider any written or
verbal evidence submitted by Agency. This decision shall be issued in writing.
However, no action in accordance with this Section shall in any way limit either party's
rights and remedies through actions in a court of law with appropriate jurisdiction.
Neither the pendency of dispute nor its consideration by CVAG will excuse Agency from
full and timely performance in accordance with the terms of this Agreement.
18. Any agency receiving federal funds must have an approved
Disadvantaqed Business Enterprise program. All recipients of Federal Highway
Administration (FHWA) funds must carry out the provisions of Part 26, Title 49 of the
Code of Federal Regulations (CFR) which established the Federal Department of
Transportation's policy supporting the fullest possible participation of firms owned and
controlled by minorities and women in the Department of Transportation programs.
Except to the extent that such or other contrary federal regulations may apply, Agency
covenants that, by and for itself and all persons claiming under or through it, there shall
be no discrimination against or segregation of any person or group of persons on
account of race, color, creed, religion, sex, marital status, national origin or ancestry in
the performance of this Agreement.
19. Agency warrants that all aspects of the Project shall be undertaken in
compliance with all applicable local, state and federal rules, regulations and laws.
Agency will execute and deliver to CVAG such further documents and do other acts and
things as CVAG may reasonably request in order to comply fully with all applicable
requirements and to effect fully the purposes of this Agreement.
Contract No. C27330B
20. This Agreement may not be assigned without the express written consent
of CVAG first being obtained.
21. Agency, its successors in interest and assigns shall be bound by all the
provisions contained in this Agreement.
22. No officer or employee of CVAG shall be personally liable to Agency, or
any successor in interest, in the event of any default or breach by CVAG or for any
amount with may become due to Agency or to its successor, or for breach of any
obligation of the terms of this Agreement.
23. Notwithstanding any other provision herein, CVAG shall not be liable for
payment or reimbursement of any sums for which CVAG has not first obtained the
necessary and appropriate funding from TUMF and/or Measure "A" monies.
24. No officer or employee of CVAG shall have any personal interest, direct or
indirect, in this Agreement; nor shall any such officer or employee participate in any
decision relating to this Agreement which effects his or her personal interest or the
interest of any corporation, partnership or association in which she or he is, directly or
indirectly, interested, in violation of any state, federal or local law.
25. Agency warrants that the funds received by CVAG pursuant to this
Agreement shall only be used in a manner consistent with CVAG's reimbursement
policy and all applicable regulations and laws. Any provision required to be included in
this type of agreement by federal or state law shall be deemed to be incorporated into
this Agreement.
26. All notices or other communications required or permitted hereunder shall
be in writing and shall be either personally delivered (which shall include delivery by
means of professional overnight courier service which confirms receipt in writing, such
as Federal Express or UPS); sent by telecopier or facsimile machine capable of
confirming transmission and receipt; or sent by certified or registered mail, return receipt
requested, postage prepaid to the following parties at the following addresses or
numbers:
If to Agency: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: City Manager
Telephone: (760) 346-0611
FAX No.: (760) 340-0574
If to CVAG: CVAG
73-710 Fred Waring Drive
Palm Desert, CA 92260
Attn: Deputy Executive Director
Telephone: (760) 346-1127
FAX No.: (760) 340-5949
Contract No. C27330B
Notices sent in accordance with this paragraph shall be deemed delivered upon the
next business day following the: (i) date of delivery as indicated on the written
confirmation of delivery (if sent by overnight courier service); (ii) the date of actual
receipt (if personally delivered by other means); (iii) date of transmission (if sent by
telecopier or facsimile machine); or (iv) the date of delivery as indicated on the return
receipt if sent by certified or registered mail, return receipt requested. Notice of change
of address shall be given by written notice in the manner detailed in this paragraph.
27. This Agreement and the exhibits herein contain the entire agreement
between the parties, and is intended by the parties to completely state the agreement in
full. Any agreement or representation respecting the matter dealt with herein or the
duties of any party in relation thereto, not expressly set forth in this Agreement, is null
and void.
28. If any term, provision, condition, or covenant of this Agreement, or the
application thereof to any party or circumstance, shall to any extent be held invalid or
unenforceable, the remainder of the instrument, or the application of such term,
provision, condition or covenant to persons or circumstances other than those as to
whom or which it is held invalid or unenforceable, shall not be affected thereby and
each term and provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.
29. In the event either party hereto brings an action or proceeding for a
declaration of the rights of the parties, for injunctive relief, for an alleged breach or
default, or any other action arising out of this Agreement, or the transactions
contemplated hereby, the prevailing party in any such action shall be entitled to an
award of reasonable attorneys' fees and costs incurred in such action or proceeding, in
addition to any other damages or relief awarded, regardless of whether such action
proceeds to final judgment.
30. Time is of the essence in this Agreement, and each and every provision
hereof in which time is an element.
31. This Agreement and all documents provided for herein shall be governed
by and construed in accordance with the laws of the State of California. Any litigation
arising from this Agreement shall be adjudicated in the courts of Riverside County,
Desert Judicial District, State of California.
32. Agency warrants that the execution, delivery and performance of this
Agreement and any and all related documents are duly authorized and do not require
the further consent or approval of any body, board or commission or other authority.
33. This Agreement may be executed in one or more counterparts and when a
counterpart shall have been signed by each party hereto, each shall be deemed an
original, but all of which constitute one and the same instrument.
Contract No. C27330B
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed by their duly authorized representatives on this date:
ATTEST:
.,.
City Clerk
ATTEST:
By:
�tPhnWohlmuth,
ecutive Director
CITY OF PALM DESERT
By:
ayor
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CV G
i�i/�I�WJJ,lrni
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A
By: �
Chair '
Executive Committee
Contract No. C27330B
EXHIBIT "A"
SCOPE OF SERVICES
FUTURE (FISCAL YEAR 2012/2013) REIMBURSEMENT AGREEMENT
"PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE
DESIGN, RIGHT-OF-WAY & CONSTRUCTION
CVAG will only pay for improvements eligible for reimbursement as outlined in the
adopted Project Cost Determination and Expense Eligibility manual.
The City of Palm Desert is requesting funding support from CVAG for improvement to
Portola Interstate 10 Interchange project. The project is programmed for funding in
FY 2012-2013.
This project is currently in the Project Approval/Environmental Documentation (PA/ED)
phase.
Contract No. C27330B
EXHIBIT "B"
ESTIMATE OF COST
FUTURE (FISCAL YEAR 2012/2013) REIMBURSEMENT AGREEMENT
"PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE
DESIGN, RIGHT-OF-WAY & CONSTRUCTION
(FROM ESTIMATE PROVIDED BY THE CITY OF PALM DESERT)
Roadway Items $21,301,000
Structure Items $33.348.000
Construction Cost $54,649,000
Right -of -Way Cost $11,442,000
Support Cost $ 5.973.000
Total Project Cost $72,100,000
CVAG Share @75% $54,075,000
Contract No. C27330B
EXHIBIT "C"
PROJECT SCHEDULE
FUTURE (FISCAL YEAR 2012/2013) REIMBURSEMENT AGREEMENT
"PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE
DESIGN, RIGHT-OF-WAY & CONSTRUCTION
Begin Final Design
Begin Right of Way Acquisition
Right of Way Certification
Complete PS&E
Advertise for Bids
Begin Construction
Complete Construction
8/1/2008
4/1 /2009
1/120/11
1 /1 /2011
2/1 /2011
8/1 /2011
8/1 /2013
Contract No. C27330B
EXHIBIT "D"
"PROJECT SIGN"
FUTURE (FISCAL YEAR 2012/2013) REIMBURSEMENT AGREEMENT
"PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE
DESIGN, RIGHT-OF-WAY & CONSTRUCTION
The Proiect Sian shall consist of the following information:
MEASURE"A"
PROJECT
YOUR TAX DOLLARS
AT WORK
"PROJECT NAME"
FUNDED BY:
D RIVERSIDE COUNTY TRANSPORTATION COMMISSION/
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
U LEAD AGENCY/AGENCY
TOTAL
$ x.xxx.xxx
Other information, such as the City Logos and/or Measure "A" Funds Logo, is
encouraged.
Contract No. C27330B
ATTACHMENT 1
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS
REGIONAL ARTERIAL PROGRAM
PROJECT COST DETERMINATION
AND
EXPENSE ELIGIBILITY
Page13
Contract No. C27330B
PROJECT COST DETERMINATION
AND
EXPENSE ELIGIBILITY
TABLE OF CONTENTS
SECTION
DESCRIPTION
1.0
INTRODUCTION
2.0
COST ESTIMATE DEFINITIONS
3.0
PROJECT IDENTIFICATION
4.0
RIGHT-OF-WAY ACQUISITION
5.0
PROJECT LIMITS
6.0
PROJECT FUNDING SOURCES
7.0
PROJECT SCOPE OF WORK
8.0
PROJECT DESIGN (CIVIL)
9.0
PROJECT DESIGN (LANDSCAPING)
10.0
PROJECT CONSTRUCTION FUNDING
11.0
PROJECT CONSTRUCTION SURVEY
12.0
CONSTRUCTION MANAGEMENT
13.0
PROJECT OVERSIGHT - AGENCY TIME
14.0
PROJECT CONTINGENCY FUNDS
15.0
REFERENCE DOCUMENTS
Page14
Contract No. C27330B
1.0 INTRODUCTION
This section of the procedures manual outlines the process which shall be followed in
determining project costs and project expense eligibility which has been approved to
be constructed as part of the Coachella Valley Regional Transportation Program.
This section was developed by the Coachella Valley Association of Governments
(CVAG) Transportation Technical Advisory Sub -Committee (TTAS). The primary
purpose of this section is to provide a guideline for agencies to make application for a
project for both Measure A and Transportation Uniform Mitigation Fee (TUMF)
funding.
The project development process starts with an agency -initiated study after a
highway improvement need has been identified.
The estimates for projects identified as part of the Regional Transportation Plan are
addressed in the 2005 Update of the Regional Arterial Cost Estimate (RACE), dated
February, 2006 and shall be updated biannually as part of the TUMF review process.
2.0 COST ESTIMATE DEFINITIONS
Construction An updated cost estimate for the costs to build the improvement
per the approved plans and specifications.
Engineering Engineering costs will usually be estimated on the basis of a
percentage of the estimated construction costs.
Right -of -Way Expenditures for right-of-way are to be prepared with an
accuracy comparable to standards in the industry. Overhead
charges need not be included.
Scheduling Indicate status of project, giving a tentative schedule for
engineering, right-of-way acquisition and construction. Discuss
project phasing, if planned.
3.0 PROJECT IDENTIFICATION
Any project which is to be submitted for review and funding shall meet or provide all
of the following:
The proposed project shall appear.on the approved 2005 Update Transportation
Project Prioritization Study updated list of projects.
The project shall be clearly identified showing, as a minimum, the limits of the
project, scope of work, anticipated start and completion dates, estimated project
cost and funding sources.
A general statement of the project. Why it is needed, etc.
Page 15
Contract No. C27330B
A preliminary design estimate for all design services.
A preliminary construction cost estimate, to be updated once design is completed.
A preliminary construction management and Agency project management cost
estimate.
4.0 RIGHT-OF-WAY ACQUISITION AND OTHER ASSOCIATED COSTS
All right-of-way acquisition and other associated costs, including appraisals and any
other costs allowed by state and federal law, are eligible for regional funding.
The agency will further submit a detailed list of costs associated with the right-of-way
acquisition to CVAG for review and comment. CVAG will assess each cost and
determine its eligibility for regional funding. All protests shall be sent to the
Transportation Technical Advisory Sub -Committee for further review. All protests
must be in writing and the grounds for protest clearly identified.
Where the likelihood of extensive right-of-way acquisition exists or the need for
extensive relocation of homes and businesses, or in the case of new roadway
extensions or openings or other extenuating physically or economical restraints so
warrant, preliminary engineering, alignment and traffic studies shall be eligible for
reimbursement or funding from regional funds.
Any excess property purchased to secure the necessary right-of-way will be deemed
to belong to the Regional Arterial Program. Excess property will be disposed of in
the best interests of the Regional Arterial Program, in order to recapture funds
expended. Any recaptured funds will reduce the overall cost of the project.
5.0 PROJECT LIMITS
The lead agency submitting a proposed project for review and funding shall clearly
identify the project limits. The limits of the project shall be defined as the beginning
and the end of the construction. If more than one beginning and/or ending is
necessary, clearly indicate that on the statement of the project limits.
A vicinity map shall be included with the project submittal package identifying where
the project is located.
6.0 PROJECT FUNDING SOURCE
Project funding will come from both regional Measure A revenues and TUMF
collected by CVAG member agencies. Other sources of funding may include local
funds from the agency proposing the project, local gas tax funds, ISTEA funds,
redevelopment funds, etc.
All funding sources should be considered by the agency prior to project submittal to
CVAG for funding from the Regional system funds. CVAG will advance fund, for
TUMF jurisdictions, a project up to 100% of the total approved, eligible, estimated
Page 16
project cost. Project contingency funds will not be funded.
costs incurred due to any change in scope of work may be
funding eligibility, and will be processed through CVAG's
approval.
Contract No. C27330B
However, any additional
submitted to CVAG for
committee structure for
Page17
Contract No. C27330B
7.0 PROJECT SCOPE OF WORK
A project scope of work narrative shall be submitted to CVAG with the submittal for
expense eligibility and regional funding. The narrative shall include, but not be
limited to, discussion of the following:
Right -of -Way Acquisition and Relocation
Project limits
Typical roadway improvement section
Vicinity map for project location identification
Anticipated starting date - Engineering, R-O-W Acquisition and Construction
Anticipated completion date - Engineering, R-O-W Acquisition and
Construction
Anticipated funding amount
8.0 PROJECT DESIGN (CIVIL)
The project design is the sole responsibility of the agency and/or agencies which are
proposing and constructing the project. However, the design and construction
standards as outlined in the Regional Arterial Cost Estimate (RACE), 2005 Update,
shall be a guideline to be used by the designer for project design and construction
standards. Any deviations should be identified, along with the rationale for such
deviations.
The total project design services shall not exceed in cost 10% of the estimated
construction costs, or as determined by CVAG.
9.0 PROJECT DESIGN (LANDSCAPING)
The following is a narrative of the landscape improvements which shall or shall not be
eligible for regional funding:
All new landscaping, electrical and irrigation work shall NOT be eligible for
regional funding.
Only new utility sleeves which are to be placed below the roadway surface for
future use shall be eligible for regional funding.
Additionally, any existing landscaping, electrical and irrigation which is directly
affected by the project shall be eligible for funding providing it is replaced "in kind".
10.0 PROJECT CONSTRUCTION FUNDING
All regionally funded agency project construction
materials, equipment, labor, tools and incidentals
improvements as required by the approved plan
s
furnishing all
construct the
and contract
Page 18
Contract: no. C27330B
"Curb -to -curb" improvements are eligible for funding, with the exception of
landscaping. (See section 9.0 for further detail on landscaping.) "Curb -to -curb"
improvements include asphalt paving, striping, curb, etc. Sidewalks, bus -turnouts,
bikelames, etc. are not eligible for Regional Arterial funding. Exception: One
sidewalk (as of October 30, 2000) will be eligible for
Regional Arterial funding if it crosses a(n):
1. Regional Arterial Bridge
2. Interstate 10 Interchange
3. Interstate 86 Interchange
All regionally funded agency projects will comply with the prevailing rates of wages
and apprenticeship employment standards established by the State Director of
Industrial Relations.
Any agency receiving federal funds must have an approved Disadvantaged
Business Enterprise program. All recipients of Federal Highway Administration
(FHWA) funds must carry out the provisions of Part 26, title 49 of the Code of Federal
Regulations (CFR) which established the Federal Department of Transportation's
policy supporting the fullest possible participation of firms owned and controlled by
minorities and women in the Department of Transportation programs.
All regionally funded project bids shall be prepared on the approved agency proposal
forms in conformance with the instructions to bidders.
All approved regional construction projects will be funded to 100% of the lesser of the
following:
CVAG approved project construction cost estimate.
The lowest responsible bidder's award.
11.0 PROJECT CONSTRUCTION SURVEY
Construction survey is defined as all surveying and construction staking necessary
for the construction of the project as determined by the engineer.
The cost of any additional surveying and/or construction staking primarily for the
convenience of the contractor, not in conformance with usual and customary
practices and for replacement of stakes lost as a result of the contractor's or agency's
negligence, shall be the responsibility of the contractor and/or agency.
The agency shall be responsible for -all resetting of monumentation within public
and/or private right-of-way that is destroyed by the construction operations unless it is
itemized in the approved construction survey estimate.
12.0 PROJECT CONSTRUCTION MANAGEMENT
Page19
Contract No. C27330B
Project construction management costs shall be eligible for regional funding only if it
is to fund one or more of the following:
Construction inspection
Materials testing
Project management
Construction Survey
Geotechnical studies and reports
Contract administration
The activities set forth above shall be eligible for regional funding based upon
actual costs provided the total sum does not exceed 15% of the approved
estimated construction costs.
13.0 PROJECT OVERSIGHT - AGENCY TIME
Project cost estimates should include an amount intended to allow Agency to recover
an amount representing the costs incurred for the time of its employed staff in
working on the project. These amounts shall be eligible for regional funding
based upon actual costs provided the total sum does not exceed 5% of the
approved estimated project costs.
14.0 PROJECT CONTINGENCY FUNDS
Project contingency funds shall not be granted at the beginning of a project. If a
change in scope or design creates a need for a change order which may require
additional funds, the agency shall make application with CVAG for expense eligibility
from regional funds. Actual cost incurred shall only be eligible for funding.
15.0 REFERENCE DOCUMENTS
2005 Update Transportation Project Prioritization Study (TPPS), February 2006
2005 Update Regional Arterial Cost Estimate (RACE), February 2006
Regional Arterial Financial Plan and Expenditure Program, November 1994
Coachella Valley Area Transportation Study, 2003
9 .w -..✓ i
Page20
E I I Y Of P B I M OESfRI
73-510 FRED WARING DitivE
PALM DESERT, CALIFORNIA 9z:!6o-2i75
Ter.: 760 346—o6 i i
in flvCtcip'ofpalmdrerrc.org
July 25, 2016
Mr. Tom Kirk
Executive Director
Coachella Valley Association of Governments
73-710 Fred Waring Drive, Suite 200
Palm Desert, California 92260
Dear Mr. Kirk:
Subject: Contract No. C27330B - Reimbursement Agreement With the
Coachella Vallev Association of Governments (CVAG) and the
Countv of Riverside for the Design. Right-of-Way. and
Construction Phases of the Portola Avenuelinterstate 10 (1-10)
Interchanqe) Protect - Amendment No. 1
At its regular meeting of July 14, 2016, the Palm Desert City Council, by Minute Motion:
1) Approved Amendment No. 1 to the subject Reimbursement Agreement with CVAG
and the County of Riverside for the Design, Right -of -Way, and Construction Phases of
the Portola/1-10 Project; 2) authorized Mayor to execute the Amendment.
Enclosed are four original Amendments as executed by the City of Palm Desert. Once
fully executed by your agency, please forward a copy to us for our file.
If you have any questions or require any additional information, please do not hesitate
to contact us.
Sincerely,
RACHELLE D. KLASSEN, MMC
CITY CLERK
RDK:mgs
Enclosures (as noted) /
or orks/
cc/enc. Mark Greenwood, Direct of Public W
Finance Department
AMENDMENT NUMBER ONE
to the
CITY OF PALM DESERT -
CVAG REIMBURSEMENT AGREEMENT
PORTOLA AVENUE/ INTERSTATE 10 INTERCHANGE PROJECT
DESIGN, RIGHT OF WAY AND CONSTRUCTION
THIS AMENDMENT NUMBER ONE is made and entered into this 29th day of June, 2015, by
and among the County of Riverside, (Lead Agency), the City of Palm Desert (Agency) and
the Coachella Valley Association of Governments, a California joint powers authority
(CVAG).
This Amendment Number One Adds the County of Riverside as a Party to the
Agreement., and substitutes and replaces the City of Palm Desert with the County of
Riverside as Lead Agency. The City of Palm Desert will remain a Party to this Agreement
as Agency. As of the date of signature on this Amendment by County as Lead
Agency, all references to "Agency" shall hereafter be read as "Lead Agency";
EXCEPT thatthe Agency shall remain designated in Section 5 of the Agreement and
retain responsibility for the funding obligations under such Section 5.
There are no additional financial obligations implied or intended as a result of this
Amendment Number One to the Portola Avenue/ Interstate 10 Interchange Proiect
Agreement.
This Amendment Number One to the Portola Avenue/ Interstate 10 Interchange Project
Agreement shall establish a "Time Trigger" which will require that construction of the
Portola Avenue/ Interstate 10 Interchange Project must begin within Five Years of the
Date of Approval of this Amendment Number One by the Executive Committee.
This Amendment Number One to the Portola Avenue/ Interstate 10 Interchange Project
Agreement shall establish that CVAG may decline, or delay, to provide regional funds for
the Portola Avenue/ Interstate 10 Interchange Project, should it be determined that such
action is necessary to maintain a minimum balance of regional funds. Lead Agency may
suspend or stop provision of services should funding be delayed or declined.
This Amendment Number One to the Portola Avenue/ Interstate 10 Interchange Project
Agreement shall establish that prior to initiation of on -site construction, Lead Agency
agrees to provide at least two "Project Signs" to be placed In safe and visible locations
near the site of construction so that all travelers passing the project worksite have the
opportunity to observe who the agencies are that are providing funds for construction of
the Project. CVAG shall provide a guide for the Project Sign format.
[REMAINDER OF PAGE LEFT BLANK]
APR 2 6 2016 ZS
IN WITNESS WHEREOF, the'parties hereto have caused this Amendment Number One to
the Portola Avenue/ Interstate 10 Interchange Project Agreement to be executed by their
duly authorized representatives on this date:
By:
By:
ATTEST KECIA HARPER -THEM
Clerk of the Board of Supervisors
ATTEST
COUNTY OF RIVERSIDE
By: phairma'
J.E ofl
n of the Board of Supervisors
FORM APPROVED COUNTY COUNSE
BY. 0Amy Y—) �/� �► b
L. VI 'TOR D TE
CITY OF PALM DESERT
-4. 9('41"RK - By:
in McCarthy Robert A. Spieg 1
Manager Mayor
ATTEST
Tom Kirk,
Executive Director
CVAG
By:
n Hamll
VAG Chair
ITEM 7A
Coachella Valley Association of Governments
Transportation Committee t
.tune 1, 2020
Staff Report
Subject: Contract Amendment Number Two for the 1-10/Portola Interchange and Initial
Transportation Project Cash Flow Discussion
Contact: Jonathan Hoy, P.E. Contract Staff
RECOMMENDATION:
1) Approve Amendment Number Two to the Reimbursement Agreement with the
County of Riverside for the I-101Portola Avenue Interchange Project to extend
the time trigger for one year to June 29, 2021;
2) Direct the Executive Director to provide a five-year cashflow projection for
approved transportation projects, including potential future obligations, and
provide short-term and long-term policy recommendations.
BACKGROUND: CVAG has received a request to extend the time trigger that is attached to the
Interstate 10/ Portola Avenue interchange project. Given the current economic climate that has
been caused by the COVID-19 pandemic, CVAG staff is providing background on the project as
well as the larger implications on cash flow.
The Portola Avenue Interchange Project was authorized for Project Approval and Environmental
Documentation (PAED) funding by CVAG's Executive Committee in December 2007 as a part of
CVAG's Interchange Preparation Fund. At the same time, a Future Agreement to complete the
project through construction was authorized. Initially, the City of Palm Desert was the lead agency
for this project. In September 2014, CVAG's Executive Committee approved Amendment Number
One, adding Riverside County to the Agreement as the Lead Agency.
The Reimbursement Agreement with Riverside County contained a time trigger that requires the
project to be in construction by June 29, 2020. While the project had initially been scheduled to
go to construction in 2019, Riverside County has run into difficulty in obtaining right-of-way from
Union Pacific Railroad. While negotiations continue, Riverside County is requesting three
additional years to allow enough time to secure the necessary right-of-way and commence
construction. The County's request letter is attached.
While the County has requested an extension of three years, staff is instead recommending an
extension of one year. This will allow for a fiscal analysis to be conducted over the summer to
evaluate its financial obligations and any anticipated economic impacts to CVAG's local and
regional funding sources.
Staff is also recommending a modification to the reimbursement agreement that would limit the
authorized reimbursement to the design and right-of-way phases. It is CVAG practice to authorize
reimbursement by project phase. However, in 2008 the reimbursement agreement authorized all
21
phases of work, which included design, right-of-way & construction. At this time, it would be
imprudent for CVAG to authorize reimbursement through construction, considering the $31 million
cost increase, the potential increase in right-of-way cost associated with Union Pacific & the initial
cash flow concerns described herein.
Portola Avenue and other future projects have secured little -to -no outside funding, so the next
stages of these projects will have a significant impact on regional and local resources. This is a
much different scenario compared to other recently completed interchanges along Interstate 10,
which were completed by utilizing more than $180 million in federal and state funding. This outside
funding represented 80% of the project cost. Future interchange projects have secured less than
1% of outside funding. A chart highlighting this is below:
I Descr kn ".'::..
"IM4 ....
CYAG(Lbbalj)
Federal/5iaie
'.C1/A Fedenii/SMe
I8ob Hope/410
S52,000,000
$1,495.000
$50,505.000 Morvoe/I.10
$114,000,000 5114ii000
So
Indian Canyorvl-10
535,000,000
$9,000,000
$26,000.000 Jacksor&10
$105,000,000 $105.000.000
$0
Palm DdGene Autry/1.10
$35,000,000
$6,400.000
S28,600,000 ParloWl-10
$104,212,000 $104.212,000
So
Date Patmil-10
$31.400,000
S4.300,000
S27.100,000 Avenue 501SR86
$40,000,000 $28.000.000
$800.000
Jefferson SUI-10
$71,300,000
$23,300,000
$48,000,000 Avenue 5WI10
550,000,000 $35.500.000
$2,000,000
Toth:
$224,700.000
$44,495,000
$180,205,000 DWrVSR86
$65.000,000 $65,000,000
SO
Dillon 1.10
I $65,000,000 $65,000.000
$0
MOM
$W.000,000 $60,000.000
So
TotaLl $603,212,000 $576,71$000 $Z800,00M
There are a number of reasons that the funding outlook is so different than years past. For one,
the Coachella Valley interchanges benefited from the federal stimulus funding that came down
from Washington after the 2008 recession. Another reason is that, even before COVID-19 hit, the
amount of state and federal funding that trickled to the Coachella Valley was much less than in
previous cycles. Committee members will recall this issue was raised in September 2019, when
discussing the State Transportation Improvement Program (STIP) funds. The statewide estimate
for STIP came back tower than expected. Riverside County's targeted share is $20.8 million, after
accounting for Planning, Programming and Monitoring (PPM). That meant only $4.472 million in
STIP funding was available for the Coachella Valley for a five-year period from FY2020/21-
2024/25.
COVID-19 also will have an impact on future cash flow at CVAG.
On May 13, 2020, the Riverside County Transportation Commission (RCTC) released revised FY
2019/20 and FY 2020/21 revenue projections for Measure A, Local Transportation Fund, and the
Transportation Uniform Mitigation Fee (TUMF). Significant reductions are also expected to impact
the formula -based city and county local streets and roads (LSR) funds from the state, including
the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account
(RMRA — from SB1 of 2017).While the reductions in revenue reflect a significant decrease in
revenues as a result of the COVID-19 impact, it is anticipated that revenues will continue to
decrease in the next fiscal year which may impact regional transportation programs and projects.
CVAG staff is working work with RCTC staff and continue to monitor revenues to determine if any
required adjustments are needed as impacts of COVID-19 become clearer.
CVAG staff is recommending that, as part of this approval, the Committee direct the Executive
Director to provide an analysis of the cash flow implications of Portola Avenue and these
upcoming projects. CVAG's current cost -sharing policy is to cover 75 percent of the costs, with
local jurisdictions covering 25 percent. CVAG staff Is concerned that, if CVAG funds 75 percent
22
of Portola or other high -cost interchanges, it will significantly impact the cashflow and make it
difficult to fund other transportation projects that have been obligated under existing
reimbursement agreements. CVAG staff intends to present short-term and long-term policy
recommendations as part of this analysis.
FISCAL ANALYSIS: Amendment #2 for the Portola Avenue interchange does not have any
additional costs associated with it.
The original construction cost estimate for this interchange was $72 million. The new County
construction cost estimate tops $103 million, an increase of approximately $31 million. Under
CVAG's current cost -sharing policy, a local jurisdiction pays 25% and CVAG pays 75% of eligible
costs. That would put CVAG's costs at more than $77 million.
The City of Palm Desert deposited $15 million as part of a Bond Proceeds Funding Agreement
(April 28, 2014) with CVAG as part of their local match. The $15 million came from the City's
redevelopment funds that may have to otherwise be returned to the state. Per the Bond Funding
Agreement, the City is obligated to fund the difference of any increases.
23
AMENDMENT NUMBER TWO
TO THE
REIMBURSEMENT AGREEMENT BETWEEN CVAG AND THE COUNTY OF RIVERSIDE
FOR THE
PORTOLA AVENUE INTERCHANGE AT 1-10 PROJECT
This AMENDMENT NUMBER TWO is made and entered into this 1`t day of June, 2020, by and
between the Coachella Valley Association of Governments, a California joint powers agency
(CVAG), and the County of Riverside (County), and is made with reference to the following
background facts and circumstances. All other terms and conditions shall remain the same as
stated in the original Agreement for the Portola Avenue Interchange at 1-10 Project.
This Amendment Number Two shall authorize reimbursement through design and right-of-way
phase only. Reimbursement for construction will require a future amendment.
This Amendment Number Two shall require the Portola Avenue Interchange project to commence
construction by June 29, 2021.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment Number Two to be
executed by their duly authorized representatives on this date:
COACHELLA VALLEY ASSOCIATION COUNTY OF RIVERSIDE
OF GOVERNMENTS
By: By:
Tom Kirk, CVAG Executive Director
24
AMENDMENT NUMBER TWO
TO THE
REIMBURSEMENT AGREEMENT BETWEEN CVAG AND THE COUNTY OF RIVERSIDE
FOR THE
PORTOLA AVENUE INTERCHANGE AT 1-10 PROJECT
This AMENDMENT NUMBER TWO is made and entered into this 291h day of June, 2020, by
and between the Coachella Valley Association of Governments, a California joint powers
agency (CVAG), the City of Palm Desert (City) and the County of Riverside (County), and is
made with reference to the following background facts and circumstances. All other terms and
conditions shall remain the same as stated in the original Agreement for the Portola Avenue
Interchange at 1-10 Project.
This Amendment Number Two shall authorize reimbursement through design and right-of-way
phase only. Reimbursement for construction will require a future amendment.
This Amendment Number Two shall require the Portola Avenue Interchange project to commence
construction by June 29, 2021.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment Number Two to be
executed by their duly authorized representatives on this date:
ATTEST
By: By:
Clerk of the Board of Supervisors
ATTEST
By: By:
Laurie Aylaian
City Manager
ATTEST
By: By:
Tom Kirk,
Executive Director
COUNTY OF RIVERSIDE
Chairman of the Board of Supervisors
CITY OF PALM DESERT
Gina Nestande
Mayor
CVAG
Jeff L. Grubbe,
CVAG Chair