HomeMy WebLinkAboutReimbursement Options - Cook Street WideningCITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: Consider Reimbursement Options for the Cook Street Widening
Project 601-05
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
DATE: September 13, 2007
CONTENTS: Vicinity Map
Recommendation:
Direct staff to disengage from the current 50% bond reimbursement
agreement with CVAG and enter into a new agreement with CVAG for a 75%
reimbursement at a future date.
Discussion:
In 2005, CVAG requested proposals for projects to be constructed through a special bond
program. These projects were to be expedited in order to obtain the most value from the
bond funds. The City of Palm Desert submitted two projects: the Portola Avenue Bridge at
the Whitewater Channel (which is nearing completion) and the Cook Street Widening from
Fred Waring Drive to Frank Sinatra Drive, both of which were approved. The Portola
Avenue Bridge project was estimated at a total cost of $8.5 million with $4.25 million to be
reimbursed by CVAG. The Cook Street Widening project was estimated at $9.5 million,
with $4.75 million to be reimbursed by CVAG. Recent budget updates continue to project
the Cook Street Widening project at $9.5 million.
In October 2005, $2 million was transferred from the Cook Street project account to the
Portola Bridge project account, due to an unanticipated cost escalation. In March 2007,
$1.1 million was transferred from the Cook Street project account to the Portola Avenue
Bridge account due to continuing unanticipated cost escalation. At this point in time the
anticipated reimbursement from CVAG for the Cook Street Widening project is $1.65
million. However, staff anticipates transferring the remainder of these funds to the Portola
Avenue Bridge project to cover the final costs of that project.
CVAG staff has indicated that several of the bond -funded projects in other cities will not be
accomplished in time to enjoy the benefit of the bond funds; therefore, other projects
currently in the bond program, including the Cook Street project, may be able to receive
additional funds upon approval by CVAG. However, CVAG staff has indicated that
reimbursement through the bond program will be at a maximum of 50% of project costs.
At the August 9, 2007 meeting the City Council directed staff to investigate the possibility of
increasing the CVAG reimbursement rate from 50% to 75% for the Cook Street Widening
project. Staff has learned from CVAG that the reimbursement rate can be increased to
Consider Reimbursement Options for Cook Street Widening
Page 2of2
September 13, 2007
75%; however, this would require that the project be withdrawn from the current 50%
reimbursement bond program. Reimbursement would then be delayed until Cook Street
becomes eligible for funding in the Transportation Project Priority System, which is
estimated to occur in the year 2013. The first phase of the Cook Street widening project is
scheduled for summer 2008 and is estimated at $5 million. The second phase is scheduled
for summer 2009 and is estimated at $4.5 million. If we enter into a future reimbursement
agreement, the expenditures will be borne by the general fund until reimbursement occurs
(in approximately 2013).
In summary, there are two reimbursement options for the Cook Street Widening project:
1.)
2.)
Remain with the 50% bond reimbursement program (up to a maximum of
$4.75 million) and apply for additional funds to offset the funding shortfall;
or
Withdraw from the 50% bond reimbursement program and enter into a
reimbursement agreement with CVAG for 75% of the actual project costs,
to be reimbursed at a future date (approximately 2013).
Staff recommends that City Council direct staff to disengage from the current 50% bond
reimbursement agreement with CVAG and enter into a new agreement with CVAG for a
75% reimbursement to be received at a later date.
Departme
Mark Greenwood, P.E.
Director of PublicXNorks
Fee
Homer Crol
ACM for Development Services
ZITY COUNCIL ACTION:
APPROVED .. DENIED
RECEIVED OTHER kdon
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NOES: l.P1-e
ABSENT: N(ivlf
ABSTAIN : NO .1
VERIFIED BY: /CLK )t/J4i )
')riginal on File wit City Clerk's Office
Approvals:
Paul S. Gibson
Finance Director
Carlos'Orte
City Mana •er
/dhl
* BY Minute Motion, direct staff to maintain
the current 50% bond reimbursement agreement
with the Coachella Valley Association of
Governments (CVAG) for the Cook Street
Widening Project. 5-0
G:IPubWorkslStaff Reports120071September 13103 Reimbursement options Cook Street WideninglDirect staff regarding reimbursement agreement with CVAG for Cook Street
Widening doc
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