This is a request for the City Council to adopt RES. 2017-28 to approve an intergovernmental agreement with Maricopa County to improve and annex Happy Valley Parkway from Lake Pleasant Parkway to Loop 303.  To meet the terms of this agreement, staff also requests approval of a budget amendment and a design contract amendment, as well as authority for the Development and Engineering Director to approve additional design contract amendments.

Happy Valley Parkway from Lake Pleasant Parkway to the Agua Fria River is a four-lane arterial road owned and maintained by the City of Peoria.  The City's Capital Improvement Program includes a project to widen this segment of Happy Valley Parkway to a six-lane arterial roadway, including bike lanes and sidewalk.  The City has a contract with T.Y. Lin International to design these improvements.

Happy Valley Parkway from the Agua Fria River to L303 is a four-lane arterial road owned and maintained by Maricopa County.  This segment was not originally included in the City's plan to widen Happy Valley Parkway, and was not included in the design contract with T.Y. Lin International.  However, the City and County have determined that the entire Happy Valley Parkway corridor from Lake Pleasant Parkway to Loop 303 should be designed and constructed at the same time in order to minimize costs and create a consistent roadway section for the traveling public.  In addition, the City will annex the County-controlled portion of Happy Valley Parkway upon completion of the improvements so that the entire corridor will be operated by a single agency.

Under the terms of the agreement, the County will contribute $2,568,000 toward the design and construction of the improvements from the Agua Fria River to Loop 303.  The County's total cost share contribution is expected to be paid in three payments in fiscal years 2018 and 2019.

Below are the terms of the proposed intergovernmental agreement:

Responsibilities of the County:

• The County shall provide no-cost permits for construction and traffic control.  The County shall not be responsible for plan review and approval, nor inspection and construction approval.
• The County shall provide the City with as-builts, drainage report, maintenance records, utility permit records, utility prior rights information, and sign inventory for the existing improvements of the project area.
• The County shall provide all necessary documentation requested by the City to prove that all existing right-of-way to be annexed by the City has been dedicated and accepted by the County.
• The County shall cost share in the project, not to include any City-requested enhancements.  The County's total cost share contribution shall not exceed $2,568,000.
• Upon the completion of 60 percent plans and specifications and receipt of an invoice from the City, the County shall remit payment to the City within 30 days for the County's cost share of the design fees and design contingency.  This payment is not to exceed $263,000.
• Upon the start of construction and receipt of an invoice from the City, the County shall remit payment to the City within 30 days for 50 percent of the County's cost share for construction.  This payment shall not exceed $1,152,500.
• Upon annexation by the City of Happy Valley Parkway from the Agua Fria River to Loop 303 and receipt of an invoice from the City, the County shall remit payment to the City within 30 days for the remaining 50 percent of the County's total cost share contribution.  The total invoice is not to exceed $1,152,500.
• Should the annexation be terminated by the county for any reason, the County shall remit  payment to the City for the remaining 50 percent of the County's total cost share contribution within 30 days of receipt of an invoice and written notification of the termination.

Responsibilities of the City:

• The City shall act as the lead agency on all elements of work for the project, including but not limited to design, right-of-way acquisition, utility relocation, environmental clearance, construction, and construction management.
• The City shall provide the County with a project schedule and at least quarterly project status reports for the project.
• The City shall apply for no-cost permits, as applicable, for any project-related work that lies within unincorporated County boundaries.
• The City shall ensure contractor liability insurance and will have the contractor list Maricopa County as additional insured for Phase 1 of the project.
• The City shall be responsible for traffic control during construction of the project, and shall notify the County in advance of approving any lane closures and/or roadway restrictions.  If roadway improvements, including permanent traffic elements, or traffic control extend to other County roadways beyond the project, the City shall apply to the County for separate construction and traffic control permits.
• The City shall assume responsibility and liability for the design, permitting, construction, inspection, operation, maintenance, and repair for the project roadways, traffic control devices, and street lights while the area remains under County jurisdiction, until annexation has been completed.
• Upon the completion of 60 percent plans and specifications, the City shall invoice the County for the County's design and design contingency cost share, not to exceed $263,000.
• Upon the award of a contract for the construction of the project, the City shall invoice the County for 50 percent of the County's total construction cost, not to exceed $1,152,500.
• Should the actual costs of construction of the project be less than estimated, the City shall reimburse the County for its share of construction cost savings.
• The City shall annex Happy Valley Parkway from the Agua Fria River to Loop 303, within the limits of the project within 180 days of completion of the project.

In order to expend funds to be reimbursed by the County per the terms of this agreement, the City needs outside sources appropriation in the Capital Improvement Program.  Staff is requesting outside sources appropriation in the Capital Improvement Program.  Staff is requesting outside sources appropriation for the design in the current fiscal year and will request the appropriation for construction through the Fiscal Year 2018 budget process.

This agreement will require a contract amendment to the original design services contract with T.Y. Lin International for the design of the section of roadway from the Agua Fria River to Loop 303.  Under the terms of this agreement, the County will contribute up to $263,000 for the design.  The contract amendment being requested as part of this action is for $238,902, with $183,057 to be reimbursed by the County.

Finally, staff is requesting authority for the Development and Engineering Director to approve additional design contract amendments up to $150,000 (or 7.6 percent of the contract).  Without this authority, any additional contract amendments would require City Council approval, which would jeopardize the project schedule.

A:     Approve an intergovernmental agreement with Maricopa County to improve and annex Happy Valley Parkway from Lake Pleasant Parkway to Loop 303.  Also, approve a budget amendment and a design contract amendment, as well as authority for the Development and Engineering Director to approve additional design contract amendments.

B:     Deny approval of the Intergovernmental agreement with Maricopa County and the related actions.  Roadway improvements on Happy Valley Parkway will only occur from Lake Pleasant Parkway  to the Agua Fria River.  The section of Happy Valley Parkway from the Agua Fria River to Loop 303 will remain unimproved.

Discussion and possible action to (a) adopt RES. 2017-28 approving an Intergovernmental Agreement with Maricopa County to improve and annex Happy Valley Parkway from Lake Pleasant Parkway to Loop 303; (b) approve a budget amendment in the amount of $263,000 from the General Fund Contingency Account to the Happy Valley Parkway Widening Project, Outside Sources Fund, Street System Account; (c) approve Contract Amendment No. 1 in the amount of $238,902 with T.Y. Lin International for the segment of Happy Valley Parkway from  the Agua Fria River to Loop 303; (d) authorize the Development and Engineering Director to approve  additional design contract amendments up to $150,000.

Per the terms of this intergovernmental agreement, the County is contributing $2,568,000 for design and construction of Happy Valley Parkway from the Agua Fria River to Loop 303.  This amount will need to be budgeted in the Capital Improvements Program as outside sources.  The County's share of the design costs is being requested as part of the Fiscal Year 2018 budget process.

The City is responsible for the remaining improvements to bring this segment of Happy Valley Parkway to City standards, including such things as landscaping, irrigation, and street lighting.  The estimated cost of the City's improvements is $506,500.  The existing amount programmed in the CIP can accommodate the additional work.  As such, the City funds required for this project are not increasing as a result of this agreement.

Budget amendment in the amount of $263,000 from the General Fund Contingency account 1000-0300-570000 to the Happy Valley Parkway Widening Project, Outside Sources Fund, Street System account 4810-4810-543001-CIPST-EN00463;