Title
Intergovernmental Agreement with Flood Control District of Maricopa County for 27th Avenue and Olney Avenue Storm Drain Project - Amendment 3 (Ordinance S-49253)
Description
Request to authorize the City Manager, or his designee, to amend Intergovernmental Agreement (IGA) 148280 with the Flood Control District of Maricopa County for the 27th Avenue and Olney Avenue Storm Drain Project. Further request authorization for the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The request is to amend the original IGA to increase the overall estimated cost of the project and to modify the cost share agreement between the City of Phoenix and the Flood Control District of Maricopa County. The City's increased additional costs are $1,440,792.68, and the City's contribution to the total project costs will not exceed $7 million.
Report
Summary
In late 2015, the Flood Control District of Maricopa County (FCDMC), in partnership with the City of Phoenix (City), initiated a study to update the Laveen Area Drainage Master Plan for the South Phoenix/Laveen area using mapping and comprehensive flood model software. One of the projects identified through that study effort was the 27th Avenue and Olney Avenue Storm Drain project. The storm drain project will construct a 72-inch diameter storm drain in Olney Avenue from about 24th Drive west to 27th Avenue, then north on 27th Avenue to the existing 27th Avenue and South Mountain Avenue regional basin. This storm drain would have inlets at multiple locations along Olney Avenue and 27th Avenue to intercept drainage, including a large inlet for the subdivision retention basin just south of the Western Canal. The FCDMC has been leading development of the storm drain project through the design phase and will manage project construction.
The terms of the original IGA entered into between the City and the FCDMC in 2018 include a 50/50 joint cost share for project development, including design, right of way acquisition, temporary construction easements, utility relocations, storm drain construction, construction management, post design, materials testing, and other related costs necessary to implement the 27th Avenue and Olney Avenue Storm Drain Project.
The FCDMC completed final design for the project and solicited construction bids through a fully open and competitive process. The FCDMC received five construction bids on the project, and the low bidder submitted a bid that was nearly 30 percent higher than the engineer’s estimate.
The total estimated cost of the project has increased significantly since 2015. The increased costs are primarily due to higher construction labor and material costs, but also due to construction phasing and access issues that were identified through the design process. The current total project cost estimate is $18,092,471.50. Based on the terms of the IGA, the City's total contribution to the project would be $9,046,235.75, which represents a significant cost increase and has exceeded the City’s project budget and estimated project contribution.
Therefore, the FCDMC and City agreed to modify the project cost share for a portion of the increased project costs and to apply cost savings from another FCDMC project, all in an effort to reduce the City's additional contribution to the project. Together, these significantly reduce the City's contribution to the project to less than the original 50/50 cost share.
Financial Impact
The current total project costs for the 27th Avenue and Olney Avenue Storm Drain Project are $18,092,471.50. Based on the original 50/50 cost share terms of the IGA, the City's portion of the project costs would be $9,046,235.75. Due to these increased costs, the FCDMC has agreed to cover $2,095,557.10 of the City's share of the total project costs. The City's contribution is not anticipated to exceed $7 million.
In 2011, the FCDMC and City entered into an IGA for the $14 million Durango Regional Conveyance Channel (DRCC) project, and included a City contribution of $5.5 million. The DRCC project was completed and realized a savings of $2,559,207.32 to the City's approved contribution. The FCDMC agreed to apply these savings as a credit to the City's portion of the 27th Avenue and Olney Avenue Storm Drain Project costs, further reducing the City's contribution to $4,391,471.33.
With the City's initial $3 million estimated contribution to the project approved with the IGA, an additional $1,391,471.33 is now required to fund the City's contribution to the 27th Avenue and Olney Avenue Storm Drain Project. The request for $1,440,792.68 includes the required amount of the City's contribution, plus an additional $49,321.35 as an allowance for any potential change orders.
These funds are available in the Street Transportation Department's capital improvement program budget to cover these additional costs.
Concurrence/Previous Council Action
- The Transportation and Infrastructure Subcommittee recommended Council approval to enter into IGA 148280 for the 27th Avenue and Olney Avenue Storm Drain project, including a City contribution of $3 million, at its Feb. 13, 2018 meeting by a vote of 4-0.
- The City Council approved entering into IGA 148280 for the 27th Avenue and Olney Avenue Storm Drain Project, including a City contribution of $3 million, on March 7, 2018 (Ordinance S-44314).
- The City Council approved Amendment 1 to IGA 148280 for the 27th Avenue and Olney Avenue Storm Drain Project to allow the City to advance construct three storm drainage basins ahead of the rest of the Project on March 20, 2019 (Ordinance S-45471).
- The City Council approved Amendment 2 to IGA 148280 for the 27th Avenue and Olney Avenue Storm Drain Project to reflect an increase in the estimated cost of the project, to apply the DRCC credit to the City's share of project costs, and for FCDMC to perform right-of-way and easement acquisition for the project on June 24, 2020 (Ordinance S-46790).
Location
The project is generally located along Olney Avenue and 27th Avenue going north to the 27th Avenue and South Mountain Avenue Regional Drainage Basin.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, the Street Transportation Department, and the Office of the City Engineer.