Title
Intergovernmental Agreement with the Arizona Department of Transportation for Safety Improvements at the 27th Avenue and Thomas Road at the BNSF Railroad Crossings - Amendment 1 (Ordinance S-47144)
Description
Request authorization for the City Manager, or his designee, to execute Amendment 1 to the Intergovernmental Agreement (IGA) with the Arizona Department of Transportation (ADOT) to increase the City's share of the total project costs up to $448,200 for the upgrade of the Burlington Northern Santa Fe Railroad (BNSF) crossings at 27th Avenue and Thomas Road. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
The railroad crossings at Thomas Road and 27th Avenue intersections are two of the highest railroad collision locations in the nation. For that reason, completing this project is critical to the City, ADOT, BNSF and the Arizona Corporation Commission (ACC). Through continued collaboration, since the original agreement was executed, the project design has evolved to include additional safety improvements at both crossings including gates, cantilevers and flashers. The additional safety improvements impacted the project design, which resulted in the need to widen the roadway.
On April 6, 2016, the Street Transportation Department received Council approval to enter into an IGA with ADOT to design and construct safety improvements for two BNSF railroad crossings at the 27th Avenue and Thomas Road intersections. The City was the lead agency on this federally funded project using Section 130 railroad funds to design and construct crossing upgrades, new traffic equipment and sidewalk improvements. The total project cost was estimated to be $1,015,914 of which $815,328 was eligible for federal reimbursement. The remaining $200,586 was to be shared by both the City and BNSF. There are three categories that the City is responsible to fund with Section 130 railroad funding. They include a 5.7 percent local match, a local cash match and non-eligible Section 130 project costs. The City's estimated project cost was $90,683, which included $28,273 for the 5.7 percent local match, $7,410 for the local cash match and $55,000 for the non-eligible project costs. BNSF's estimated project cost was $109,903. The City was invoiced and paid ADOT $7,410 for the local cash match when the IGA was executed.
The additional safety improvements incorporated into the project design resulted in an increased total project cost from $1,015,914 to $3,072,000. Since the original agreement, ADOT changed its federal participation match requirement for all Section 130 federal railroad projects in the State of Arizona from a 94.3/5.7 to a 90/10 percent split. Under this change, 90 percent of the eligible project costs are reimbursable to the lead agency with federal funds, and 10 percent of eligible projects costs require a local match. The federally eligible project costs for reimbursement increased from $815,328 to $2,251,800. The remaining $820,200 will continue to be shared by the City and BNSF. The City's new estimated total project cost is $448,200, which includes $124,200 for the 10 percent local match, $24,000 for the local cash match and $300,000 for the non-eligible project costs. BNSF's estimated project cost is $372,000. ADOT will invoice the City $16,590, which is the difference in the local cash match previously approved, upon execution of Amendment 1.
Contract Term
The IGA will expire upon completion of the project and once all IGA related payments are made. Any provisions for maintenance will be perpetual.
Financial Impact
The total project cost associated with this agreement will not exceed $3,072,000. Federal funding eligible for reimbursement to the City is $2,251,800. The City's participation will not exceed $448,200, which was previously $90,863 as explained above. Within the total authorized amount, upon execution of this IGA, ADOT will invoice the City $16,590, which is the difference paid to date for the local cash match. Funding is available in the Street Transportation Department's Capital Improvement Program.
Concurrence/Previous Council Action
The City Council approved the original IGA on April 6, 2016 (Ordinance S-42430).
Location
27th Avenue and Thomas Road Railroad Crossings
Council Districts: 4 and 7
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation Department.