Title
Northwest Extension Phase II Funding, Design and Construction Agreement Amendment
Description
This report requests that the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval of an amendment to the current funding agreement with Valley Metro Rail (VMR) for an additional amount not-to-exceed $79.4 million for the Northwest Extension Phase II (NWEII) Project to fund continued progress toward the completion of professional design, construction services, and associated activities.
THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.
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 of 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 of 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.
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 of Phoenix will amend its agreement with VMR to provide an additional $79.4 million to advance the NWEII Project. And 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. These activities will be funded with City of Phoenix T2050 revenues, which are eligible for federal reimbursement by the FTA.
Concurrence/Previous Council Action
This item is scheduled to be heard at the Oct. 1, 2019 Citizen Transportation Commission meeting.
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.