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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 r t, 41 � -• - - - � i i i it •' II II • � r II II 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 -� Ms. Rachelle Klassen City Clerk Fri City of Palm Desert = -a r� 73-510 Fred Waring Dr. _ c) -el Palm Desert, CA. 92260 o zy m 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 i CV G i�i/�I�WJJ,lrni i 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