Discussion and possible action to adopt RES. 2018-40 approving an Intergovernmental Agreement with the State of Arizona Department of Transportation for the local cost share, design, rights-of-way acquisition, construction, construction management, and operation and maintenance of the multi-use trail along the east side of New River from Pinnacle Peak Road to Happy Valley Road.

In 2015, the City applied for and received Design Assistance funding from MAG to prepare a project assessment and 15% plans for the design, acquisition of right-of-way/easements and construction of the improvements for the "missing links" of an approximately one-mile trail segment along the east bank of the New River between Pinnacle Peak Road and Happy Valley Road. At the south end of the project the trail will connect to an existing 10-foot-wide multi-use concrete trail segment, which is in Glendale's jurisdiction. From that point, the trail alignment extends in a northerly direction and will close the "missing links" where there currently is not a designated corridor or a hard surface trail condition. The project will also eliminate a 90 degree bend in the existing trail previously constructed as part of the Estates of Happy Valley subdivision. The eventual implementation of the trail connections constructed by this project will fill critical gaps and enable the connection of continuous paved New River Trail from Pinnacle Peak Road to Happy Valley Road.

In order to ensure the City complies with all federal design, land acquisition and construction processes, it is necessary to enter into an Intergovernmental Agreement (IGA) with the State. The IGA will allow the State (Arizona Department of Transportation) to administer the design and will advertise, bid and award the construction of the project. The City will be responsible for the cost of design, acquisition of right-of-way and a portion of the construction costs. In addition, the City is responsible for maintenance of the project.

     The estimated federal and local costs are summarized below:

     Estimated Design Costs                         $290,000.00

     ADOT Administrative Fee                       $  30,000.00

     Local Design Funding                             $260,000.00

     Estimated Land Costs                             $162,000.00

     Local Land Costs                                    $162,000.00

     Estimated Construction Costs                 $584,240.00

     Federal Construction Funding                 $539,622.00

     Local Construction Funding                     $  44,618.00

The purpose of this agreement is to identify and define the responsibilities of the City of Peoria and the State for the design, rights-of-way acquisition, construction, construction management, and operation and maintenance of the project. A summary of each agency's responsibilities are summarized below.

State Responsibilities

1. After this agreement is executed, and prior to performing or authorizing any work, invoice the City for the initial project development administration (PDA) costs, estimated at $30,000, and 100% of the project design costs, estimated at $260,000.
2. After receipt of the PDA costs and the City's estimated share of the project design costs, on behalf of the City and with consent of the City, contract with one of the State's consultants ("Consultant") to prepare and provide all documents pertaining to the design and post-design of the project, incorporating comments from the City, as appropriate.
3. Advertise for and enter into contract(s) with the consultant(s) for the design and post design of the project.
4. After completion of design and prior to bid advertisement, invoice the City for the actual PDA and design costs, as applicable, and the City's share of the project construction costs, estimated at $44,618. After the project costs for construction are finalized, the State will either invoice or reimburse the City for the difference between estimated and actual costs.
5. After receipt of the actual PDA costs, if applicable, and the City's estimated share of the project construction costs, submit all required documentation to FHWA with the recommendation that the maximum federal funds programmed for construction of this project be approved. Should costs exceed the maximum federal funds available, it is understood and agreed that the City will be responsible for any overage.
6. After receipt of FHWA authorization, proceed to administer construction, advertise for, receive and open bids, award and enter into a contract with the firm for the construction of the project. If the bid amounts exceed the construction cost estimate, obtain City's concurrence prior to awarding the contract. After the project is awarded, invoice the City for the difference between estimated and actual costs, if applicable
7. Notify the City of substantial completion and final acceptance of the project and provide record drawings to the City. At such time, file a Notice of Termination with ADEQ transferring Construction General Permit (CGP) responsibilities to the City, and provide a copy to the City indicating that the State's maintenance of the project is terminated, as applicable.
8. Notify the City of substantial completion and final acceptance of the project; coordinate with the City and turn over full responsibility of the project improvements.
9. Not be obligated to maintain the project, should the City fail to budget or provide for proper and perpetual maintenance as set forth in this agreement.

City Responsibilities

1. Designate the State as the City's authorized agent for the project.
2. Within 30 days of receipt of an invoice from the State, pay the initial PDA costs, estimated at $30,000 and 100% of project design costs, estimated at $260,000. Agree to be responsible for actual PDA costs, if during the development of design, PDA costs exceed the initial estimate. Be responsible and pay for the difference between the estimated and actual PDA and design costs of the project within 30 days of receipt of an invoice.
3. Review design plans, specifications, cost estimates and other such documents required for the construction bidding and construction of the project, including scoping/design plans and documents required by FHWA to qualify projects for and to receive federal funds; provide design review comments to the State as appropriate.
4. After completion of design, within 30 days of receipt of an invoice from the State and prior to bid advertisement, pay to the State, any outstanding PDA or design costs and the City's share of the project construction costs, estimated at $44,618. Be responsible for and pay the difference between the estimated and actual construction costs of the project, within 30 days of receipt of an invoice.
5. Be responsible for all costs incurred in performing and accomplishing the work as set forth under this agreement, that are not covered by federal funding. Should costs be deemed ineligible or exceed the maximum federal funds available, it is understood and agreed that the City is responsible for these costs; payment for these costs shall be made within 30 days of receipt of an invoice from the State.
6. Certify that all necessary right-of-way have been or will be acquired prior to advertisements for bid and also certify that all obstructions or unauthorized encroachments of whatever nature, either above or below the surface of the project area, shall be removed from the proposed right-of-way, or will be removed prior to the start of construction. Coordinate with the appropriate State's Right-of-Way personnel during any right-of-way process performed by the City, if applicable.
7. Be responsible for 100% of the cost associated with acquisition of all rights-of way.
8. Certify that the City has adequate resources to discharge the City's real property related responsibilities and ensures that its Title 23-funded projects are carried out using the FHWA approved and certified ADOT Right of Way Procedures Manual and that they will comply with current FHWA requirements whether or not the requirements are included in FHWA approved ADOT Right of Way Procedures Manual. (23 CFR 710.201)
9. Not permit or allow any encroachments on or private use of the right-of-way, except those authorized by permit. In the event of any unauthorized encroachment or improper use, the City shall take all necessary steps to remove or prevent any such encroachment or use.
10. Automatically grant to the State, by execution of this agreement, its agents and/or contractors, without cost, the temporary right to enter City's rights-of-way, as required, to conduct any and all construction and preconstruction related activities for the project, on, to and over said City rights-of-way. This temporary right will expire with completion of the project.
11. Investigate and document utilities within the project limits; submit findings to ADOT determining prior rights or no prior rights; approve an easements within the final right-of-way to re-establish the prior right location for those utilities with prior rights.
12. Be obligated to incur any expenditure should unforeseen conditions or circumstances increase project costs. Be responsible for the cost of any City requested changes to the scope of work of the project, such changes will require State and FHWA approval. Be responsible for any contractor claims for additional compensation caused by project delay attributable to the City. Payment for these costs will be made to the State within 30 days of receipt of an invoice from the State.
13. After notification of final acceptance by the State, assume and maintain full responsibility of the project, including Storm Water Pollution Prevention Plans (SWPPP) inspections, maintenance, and required documentation, until final stabilization is reached.  Provide the NOI number to the State and the Contractor, accept CGP responsibilities at time of transfer, and file an NOT with ADEQ when final stabilization is reached, as applicable.
14. After completion and final acceptance of the project, agree to maintain and assume full responsibility of the project and all project components.
15. Pursuant to 23 USC 102(b), repay all federal funds reimbursements for preliminary engineering costs on the project if it does not advance to right-of-way acquisition or construction within 10 years after federal funds were first made available.

Project Schedule:

• Design and Right of Way:       Summer 2018 through Summer 2019
• Construction:                           Fall 2019 through Spring 2020         

• 2015 - Applied for received MAG Design Assistance Funding
• 2016 - Completed the project assessment and 15% plans
• 2016 - Applied for and received FY2020 CMAQ federal construction funds

A: Approve the intergovernmental agreement with the State of Arizona for the design, land acquisition and construction of the New River Multi-Use Path from Pinnacle Peak Road to Happy Valley Road.

B: Deny the approval of the intergovernmental agreement for the design, land acquisition and construction of the New River Multi-Use Path from Pinnacle Peak Road to Happy Valley Road. This  will cause the City to pay for the entire cost of the project on its own.