Title
Northwest Extension Phase II Funding, Design and Construction Agreement Amendment (Ordinance S-46117)
Description
Request to authorize the City Manager, or his designee, to enter into a contract change order with Valley Metro Rail (VMR) to amend Agreement 1409001 for the Northwest Extension Phase II (NWEII) Project for an additional amount not to exceed $79.4 million to fund continued progress toward the completion of professional design, construction services, and associated activities. Further request authorization for the City Controller to disburse funds in an amount not to exceed $79.4 million.
Report
Summary
The NWEII Project is a 1.5-mile light rail project extending west on Dunlap Avenue from 19th Avenue to 25th Avenue, then northward to Mountain View Road, then to a terminus west of Interstate 17 adjacent to the Metrocenter Mall (see Attachment A). This project will include an elevated structure over Interstate 17 and will terminate just west of the freeway. The Project will include three new stations, a shared parking location at Rose Mofford Park, and an end-of-line park-and-ride facility that includes a relocated and expanded Metrocenter Transit Center (see Attachment B).
In January 2016, the Phoenix City Council approved accelerating segments of the future high capacity/light rail transit system, including the NWEII Project. In June 2017, the Federal Transit Administration (FTA) approved VMR’s request to enter the project development phase under the Capital Investment Grant (CIG) New Starts Program. The initial Environmental Assessment (EA) and preliminary engineering have been completed, and a submittal to enter the engineering phase of the CIG New Starts Program was made to the FTA in July 2019. A re-evaluation of the EA and final design are currently underway and are expected to be completed by fall 2020.
VMR awarded a contract for pre-construction services on the NWEII Project to Kiewit-McCarthy Joint Venture in September 2017. A systems design contract to support this project was awarded to PGH Wong Engineering in September 2017. VMR also awarded seven public art services contracts in November 2017. In April 2018, City Council approved a funding agreement with VMR in the amount of $25 million to begin professional design and pre-construction services for the NWEII Project. In December 2018, VMR entered into Agreement 149001 with the City of Phoenix to fund activities associated with these efforts.
The additional funding needed by VMR for Phoenix’s share of the costs to advance the professional design, construction services, and associated activities is estimated at $79.4 million. This also covers: final design services, preparation of legal descriptions for right-of-way, permits, insurance, and other legal documentation as required; archaeology data testing and recovery; plan reviews by third parties; community relations support through design; business assistance; and other surveys, testing, and inspections.
Upon receiving City Council authorization, the City will amend its agreement with VMR to provide an additional $79.4 million to advance the NWEII Project. Because the schedule for the disbursement of federal funding is based on a reimbursement process and is expected to exceed the project construction schedule, a future amendment to the agreement will be required to advance the necessary additional funding to VMR for project completion. The future amendment will be requested after the City receives authorization for financing needed to cover costs that will be later reimbursed through federal CIG funds.
Financial Impact
The estimated total cost for professional design, construction services, and associated activities is $79.4 million. Funds are available in the Public Transit Department's Capital Improvement Program Budget.
Concurrence/Previous Council Action
This item was recommended for approval at the Citizen Transportation Commission meeting on Oct. 1, 2019, by a vote of 7-1-1 (abstain).
This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Oct. 2, 2019, by a vote of 4-0.
Location
Extends west on Dunlap Avenue from 19th Avenue, then north on 25th Avenue and west on Mountain View Road, then to a terminus west of Interstate 17 adjacent to the Metrocenter Mall (see Attachment A).
Council Districts: 1, 3 and 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.