| ITEM #: 13. DATE: 07/18/2022 AI #:814 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AMENDMENT NUMBER ONE TO THE INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF ARIZONA FOR THE INSTALLATION OF INTELLIGENT TRANSPORTATION SYSTEM EQUIPMENT ALONG LITCHFIELD ROAD FROM MC 85 TO WIGWAM BOULEVARD (PROJECT #42032) |
| STAFF PRESENTER(S): | Hugh Bigalk, P.E., City Traffic Engineer |
SUMMARY
Amending Intergovernmental Agreement (IGA 20-0007782-I with the Arizona Department of Transportation (ADOT) that provided funding for the purchase and installation of Intelligent Transportation System (ITS) Equipment along Litchfield Road from MC 85 to Wigwam Boulevard.
Recommendation
Approve Amendment One to the Intergovernmental Agreement, IGA 20-0007782-I, A.G. Contract No. P0012020001488 with the Arizona Department of Transportation, Project Location/Name Litchfield Road ITS. (Hugh Bigalk, P.E., City Traffic Engineer)
FISCAL IMPACT
Table 1 below sets forth the original expected project costs, including the city’s obligations for such costs and the revised project costs, including the city’s obligations for such costs. As reflected in Table 1, since the original IGA was executed, the estimated procurement costs increased from $517,100 to $728,543. At the city’s request, MAG Regional Council approved additional federal funds in the amount of $199,485 on March 23rd, 2022 with an additional $12,058 city match. Based on the revised estimate and the additional federal funding awarded for the project, the procurement costs will be funded with $687,016 in federal funds with a $41,527 (5.7% of $728,543) city match.
The net result of the increase in the estimated procurement costs and the additional federal funding is the city’s match obligation for the procurement phase of the project has increased from $29,469 to $41,527. Because the city has paid $149,620 towards the procurement costs, following the execution of this Amendment, the City will be entitled to a reimbursement of $108,093 ($149,620 - $41,527).
| Table 1: Project Costs | |||||||
| Prior Funding (Approved Fall 202) |
Current Funding (FY2022) |
||||||
| Phase | Federal | City | Total | Federal | City | Total | |
| ADOT Plan Review | $0 | $30,000 | $30,000 | $0 | $30,000 | $30,000 | |
| Design | $0 | $6,000 | $6,000 | $0 | $6,000 | $6,000 | |
| Procurement | $487,531 | $29,469 | $517,100 | $687,016 | $41,527 | $728,543 | |
| Total | $487,531 | $65,469 | $553,100 | $687,016 | $77,527 | $764,543 | |
The net result of the increase in the estimated procurement costs and the additional federal funding is the city’s match obligation for the procurement phase of the project has increased from $29,469 to $41,527. Because the city has paid $149,620 towards the procurement costs, following the execution of this Amendment, the City will be entitled to a reimbursement of $108,093 ($149,620 - $41,527).
BACKGROUND AND PREVIOUS ACTIONS
On November 16th, 2020 (CAR #2020-7038), the city entered into an IGA with the State of Arizona for the purchasing and installation of ITS equipment along Litchfield Road from MC 85 to Wigwam Boulevard.
STAFF ANALYSIS
Since the original IGA was executed in the fall of 2020, the estimated procurement costs increased from $517,000 to $728,543. Amendment One amends the cost estimate and modifies the original IGA to reflect the additional federal and city funding for the project.