| ITEM #: 12. DATE: 07/18/2022 AI #:813 |
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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 MCDOWELL ROAD FROM SR 303 TO 1/4 MILE WEST OF DYSART ROAD (PROJECT #42033) |
| STAFF PRESENTER(S): | Hugh Bigalk, P.E., City Traffic Engineer |
SUMMARY
Amending Intergovernmental Agreement (IGA 20-0007781-I with the Arizona Department of Transportation (ADOT) that provided funding for the purchase and installation of Intelligent Transportation System (ITS) Equipment along McDowell Road from SR 303 to ¼ mile west of Dysart Road to reflect increased federal funding for the project.
Recommendation
Approve Amendment One to the Intergovernmental Agreement, IGA 20-0007781-I, A.G. Contract No. P0012020001486 with the Arizona Department of Transportation Project/Location Name: McDowell Rd – SR 303 to Dysart Rd. (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 the revised costs.
As reflected in Table 1, the federal funding available for this project when it was approved was not sufficient to cover 94.3% of the cost of the original procurement costs (cost of construction). The federal government funding was limited to $297,469 with a 5.7% match from the city was responsible for 100% of the shortfall ($113,550). The actual procurement costs (construction cost) exceeded the amount reflected in the original IGA, increased by $96,198, from $429,000 to $525,198. At the city’s request, MAG Regional Council approved additional federal funds in the amount of $170,859 with an additional $10,328 city match. The additional federal funding reduced the shortfall that the city was 100% responsible for paying from $113,550 to $28,552. Based on the revised estimate and the additional federal funding awarded for the project, the procurement costs will be funded with $468,328 in federal funds and $56,861 in city funds consisting of $28,309 (city’s 5.7% match) and $28,552 (city 100%).
The net result of the increase in the estimated procurement costs and the additional federal funding is the city’s obligation for the procurement phase of the project has been reduced from $131,531 to $56,900. Because the city has paid $227,719 towards the procurement costs, following the execution of this Amendment, the City will be entitled to a reimbursement of $170,858 ($227,719 - $56,861).
| Table 1: Project Costs | ||||||||
| Prior Funding (Approved Fall 2020) |
Current Funding (FY2022) |
|||||||
| Phase | Federal | City 5.7% |
City 100% |
Total | Federal | City 5.7% |
City 100% |
Total |
| ADOT Plan Review | $0 | $30,000 | $0 | $30,000 | $0 | $30,000 | $0 | $30,000 |
| Design | $0 | $6,000 | $0 | $6,000 | $0 | $6,000 | $0 | $6,000 |
| Procurement | $297,469 | $17,981 | $113,550 | $429,000 | $468,328 | $28,309 | $28,552 | $525,189 |
| Total | $297,469 | $53,981 | $113,550 | $465,000 | $468,328 | $64,309 | $28,552 | $561,189 |
As reflected in Table 1, the federal funding available for this project when it was approved was not sufficient to cover 94.3% of the cost of the original procurement costs (cost of construction). The federal government funding was limited to $297,469 with a 5.7% match from the city was responsible for 100% of the shortfall ($113,550). The actual procurement costs (construction cost) exceeded the amount reflected in the original IGA, increased by $96,198, from $429,000 to $525,198. At the city’s request, MAG Regional Council approved additional federal funds in the amount of $170,859 with an additional $10,328 city match. The additional federal funding reduced the shortfall that the city was 100% responsible for paying from $113,550 to $28,552. Based on the revised estimate and the additional federal funding awarded for the project, the procurement costs will be funded with $468,328 in federal funds and $56,861 in city funds consisting of $28,309 (city’s 5.7% match) and $28,552 (city 100%).
The net result of the increase in the estimated procurement costs and the additional federal funding is the city’s obligation for the procurement phase of the project has been reduced from $131,531 to $56,900. Because the city has paid $227,719 towards the procurement costs, following the execution of this Amendment, the City will be entitled to a reimbursement of $170,858 ($227,719 - $56,861).
BACKGROUND AND PREVIOUS ACTIONS
On November 16th, 2020 (CAR #2020-7037), the city entered into an IGA with the State of Arizona for the purchasing and installation of ITS equipment along McDowell Road from SR 303 to ¼ mile west of Dysart Road.
STAFF ANALYSIS
Since the original IGA was executed in the fall of 2020, the estimated procurement costs increased from $429,000 to $525,189 and additional federal funding has become available. Amendment One amends the cost estimate and modifies the original IGA to reflect the additional federal and city funding for the project.