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Home My WebLink About18-11 RESOLUTIONRESOLUTION NO. 18-11 A RESOLUTION TO EXPRESS THE AGREEMENT OF THE CITY COUNCIL TO ACCEPT THE ARKANSAS HIGHWAY AND TRANSPORTATION DEPARTMENT'S OFFER TO TRANSFER SOME OF THEIR MONEY DESIGNATED FOR THE HIGHWAY 112 AND 71B INTERCHANGE PROJECT TO COMPLETE THE GARLAND AVENUE WIDENING AND IMPROVEMENT PROJECT IF THE CITY TRANSFERS ITS GARLAND AVENUE COMMITMENT TO THE HIGHWAY 112 AND 71B INTERCHANGE PROJECT SCHEDULED FOR 2013 WHEREAS, substantial additional funds are needed for the completion of the Garland Avenue widening and improvement project; and WHEREAS, if these additional funds cannot be supplied, state and federal money committed to this project could be lost; and WHEREAS, the Arkansas State Highway and Transportation Department through a January 11, 2011 letter to Mayor Jordan (attached) proposes that this additional necessary money could be transferred from the scheduled Highway 112 and Highway 71B interchange if the City agrees to transfer its financial commitment from Garland project to the Highway 112 and Highway 71B interchange project which is scheduled for 2013; and WHEREAS, such an agreement to transfer the City's financial commitment ensures that federal and state funding pledged to the Garland Avenue project will not be lost. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby agrees to accept the Arkansas Highway and Transportation Department's offer to transfer some of their money designated for the Highway 112 and 71B interchange project in order to complete the Garland Avenue widening and improvement project if the City transfers its Garland Avenue project commitment to the Highway 112 and 71B interchange project scheduled for 2013 and authorizes Mayor Jordan to sign any agreement needed to effectuate this proposal. PASSED and APPROVED this 18t day of January, 2011. APPROVED: BY: LIO ' ELD J y r AN, Mayor ATTEST: `0` �mme C �o By • J�J�l�tti .`� SONDRA E. SMITH, City Clerk/TI as0 E � E EVIELE a o o.1'. e d, s�/�yp ntST�a,`.�' ' Is .C,/�/�,r iI'el* °m( -V'': �®,�07� ° GTO � 4d c3 Chris Brown Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts January 18, 2010 City Council Meeting Date Engineering Division Action Required: Development Services Department A Resolution to Express the Agreement of the City Council to Accept the Arkansas Highway and Transportation Department's Offer to Complete the Highway 112 (Garland Avenue) Widening and Improvement Project (North Street to Melmar) if the City Transfers its Garland Avenue Commitment to the Highway 112 and Hwy 71 B Interchange Project Scheduled for 2013 Cost of this request Account Number 06035 Project Number Budgeted Item X 19, 262, 726.00 Category / Project Budget $ 6,195, 662.80 Funds Used to Date 13,067,063.20 Remaining Balance Budget Adjustment Attached Transportation Bond Improvements INN Program Category / Project Name Street Improvements Program / Project Category Name 2006A Sales Tax Construction Fund Name Department ctor City Attorney 6.„1 Finance and Internal Service Director ot. \j o Date • /Z - 2+41 Date Date Date /M /l Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office 01--1 `-'-1 1 t.09: 3 H CVD Received in Mayor's Office Comments: Illatte\file ARKANSAS THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE www.accessfayetteville.org CITY COUNCIL AGENDA MEMO Council Meeting of January 18, 2011 To: Mayor and City Council Thru: Don Marr, Chief of Staff Jeremy Pate, Development Services Director From: Chris Brown, City Engineer GA Date: January 11, 2011 Subject: A Resolution to Express the Agreement of the City Council to Accept the Arkansas Highway and Transportation Department's Offer to Complete the Garland Avenue Widening and Improvement Project if the City Transfers its Garland Avenue Commitment to the Highway 112 and Hwy 71B Interchange Project Scheduled for 2013 PROPOSAL The Transportation Bond Program, approved by voters in 2006, consists of approximately $65.9 million in bonds that are to be repaid by a dedicated sales tax, and approximately $24.5 million in state and federal funding. Because of the pay back capacity of the sales tax dedicated for this program, the bonds were scheduled to be issue in 3 phases: $24.5 million in 2006, $9.5 million in 2009, and the balance of $31.9 million in 2014. The Highway 112 (Garland Avenue) Project, from North Street to Melmar, is included in the City's Transportation Bond Program, with a budget of $5.2 million. The City has a partnership agreement with the Arkansas Highway and Transportation Department (AHTD) that obligates the City to pay 50% of the construction cost, up to $1.5 million, and all of the right of way acquisition and utility relocation costs. We recently received a letter from AHTD (dated November 12, 2010) requesting a commitment from the City to move forward with the project, so that right of way could be completed, and utility relocations underway, by September 2011. In the letter, AHTD indicates that the construction cost estimate has increased to $3.9 million from $3 million, and offers to cover the additional $900,000 in costs if the City can meet the right of way acquisition deadline of September 2011 so that their construction funds can be obligated in their 2011 fiscal year. In order for the City to comply with this request, the full $5.2 million allocated for this project would be needed by September 2011. In accordance with a schedule established in 2007, funding for the project is split over the last two bond issues, which means that the project will not be fully funded until the 3`d bond issue in 2014. Therefore, we have a funding gap on this project until 2014. THE CITY OF FAYETTEVILLE, ARKANSA This funding gap issue was communicated to AHTD, and they have responded with a proposal that will allow the Highway 112 project to proceed without delay, while allowing the City to defer payment of the funds we agreed to pay on the project until September 2013. Under this arrangement, the City's obligation under the Highway 112 project will be transferred to another project, identified by AHTD as Job 040584, Highway 112 and Hwy 71B Interchanges Interim Impvts., with payment due on this project by September 2013. RECOMMENDATION Staff recommends approval of a resolution agreeing to the proposal presented by AHTD. BUDGET IMPACT The estimated budget impact totals $5.2 million. Currently, $1.5 million is available in the Bond Program; funding source(s) of the remainder are to be determined by 2013, but include a small Bond Issue through the Transportation Bond Program. RESOLUTION NO. A RESOLUTION TO EXPRESS THE AGREEMENT OF THE CITY COUNCIL TO ACCEPT THE ARKANSAS HIGHWAY AND TRANSPORTATION DEPARTMENT'S OFFER TO TRANSFER SOME OF THEIR MONEY DESIGNATED FOR THE HIGHWAY 112 AND 71B INTERCHANGE PROJECT TO COMPLETE THE GARLAND AVENUE WIDENING AND IMPROVEMENT PROJECT IF THE CITY TRANSFERS ITS GARLAND AVENUE COMMITMENT TO THE HIGHWAY 112 AND 71B INTERCHANGE PROJECT SCHEDULED FOR 2013 WHEREAS, substantial additional funds are needed for the completion of the Garland Avenue widening and improvement project; and WHEREAS, if these additional funds cannot be supplied, state and federal money committed to this project could be lost; and WHEREAS, the Arkansas State Highway and Transportation Department through a January 11, 2011 letter to Mayor Jordan (attached) proposes that this additional necessary money could be transferred from the scheduled Highway 112 and Highway 71B interchange if the City agrees to transfer its financial commitment from Garland project to the Highway 112 and Highway 71B interchange project which is scheduled for 2013; and WHEREAS, such an agreement to transfer the City's financial commitment ensures that federal and state funding pledged to the Garland Avenue project will not be lost. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby agrees to accept the Arkansas Highway and Transportation Department's offer to transfer some of their money designated for the Highway 112 and 71B interchange project in order to complete the Garland Avenue widening and improvement project if the City transfers its Garland Avenue project commitment to the Highway 112 and 7I B interchange project scheduled for 2013 and authorizes Mayor Jordan to sign any agreement needed to effectuate this proposal. PASSED and APPROVED this 18'x' day of January, 201 1. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer RESOLUTION NO. 102-06 A RESOLUTION EXPRESSING THE WILLINGNESS OF THE CITY OF FAYETTEVILLE TO PARTICIPATE IN PARTIAL FUNDING OF THE PROPOSED WIDENING OF HIGHWAY 112 FROM HIGHWAY 112 SPUR NORTH. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas, hereby expresses its willingness to participate in the partial funding of the proposed widening of Highway 112 from Highway 112 Spur north (Wedington Drive to Melmar Street). Section 2. That the City Council of the City of Fayetteville, Arkansas, hereby expresses its willingness to pay 50% of the construction cost for this project up to a maximum of $1,500,000.00, and 100% of costs associated with right-of-way acquisition and utility adjustments . ., RKJTR , -->('•'C,\I Y O, SG�c •. PASSED and APPROVED this 6th day of June, 2006. APPROVED: By: ATTEST: By: :FAYETTEVILLE: r.r. c �y� CD 9Sy:KA1,1*•. �`* ARKANSAS STATE HIGHWAY RECEIVED AND NOV 15 2010 TRANSPORTATION DEPARTMENTem, OF fAYGi TEVILLH MAYOR'S OFFICE Dan Flowers Director Phone (501)509-201)0 Fax (501)599.2400 The Honorable Lioneld Jordan Mayor of Fayetteville 113 West Mountain Fayetteville, AR 72701 November 12, 2010 P.O. Box 2261 Little Rock, Arkansas 72203-2261 (900.,\I(K0N5ASIIIOH WAYS.COM Dear Mayor Jordan: Reference is made to your September 9, 2010 letter requesting an updated cost estimate for the proposed reconstruction and widening of Highway 112 in Fayetteville. In accordance with my September 28, 2010 response to you, plan revisions and an updated cost estimate have been made. The construction cost is now estimated to be approximately $3.9 million. In your letter you noted that the City has committed to pay for all right of way and utility costs and for $1.5 million of the construction costs. The Department has committed to pay for preliminary and construction engineering and $1.5 million for construction. Therefore, in order to complete the entire project, approximately $900,000 of additional funds wit be needed for construction. The Department is willing to fund this additional amount provided the City acquires the right of way and begins the utility relocation by September 1, 2011: This will allow us to include the project in the FY 2011 construction program. If this is acceptable to the City, the right of way process can begin. If you have any questions or need additional information, please contact Phil McConnell at (501) 569-2301. c: Commissioner Dick Trammel Director Assistant Chief Engineer -Design Assistant Chief Engineer -Planning Roadway Design Right of Way Environmental Sincerely, Frank Voz Deputy Director and Chief Engineer ARKANSAS STATE HIGHWAY AND TRANSPORTATION .DEPARTMENT Dail PIovber+ Director Phone (,ti 11, 569-200(! Iti1x (501) 50) 2100 The Honorable Lioneld Jordan Mayor of Fayetteville 113 West Mountain Fayetteville, AR 72701 January 11, 2011 P.O.Roy22(4 Luile Ruck. ;Arkmts;u 72203-2201 \l'WW_AR K,\N',\SIIIUIi'. \1'\t'O\; Dear Mayor Jordan: Reference is made to our recent discussion regarding the City's partnering commitment for improvements to Highway 112 extending north of the North Street/Highway 112 Spur intersection in Fayetteville (Job 040489). While we cannot proceed with the project and allow the City to defer payment until Fiscal Year (FY) 2013, we are willing to proceed with the project in FY 2011 using Federal -aid funds and State match and transfer the City's commitment to Job 040584, Hwy. 112 & Hwy. 718 Interchanges Interim Impvts. (Fayetteville). This project is currently scheduled for FY 2013 and is estimated to cost approximately $11.8 million (construction only). The City's partnering commitment for Job 040584 would be for the actual cost of right of way acquisition and reimbursable utility adjustments plus the $1.5 million commitment for construction on Job 040489. If transferring the City's current partnering commitment on Job 040489 to Job 040584 is acceptable, please advise and we will prepare the necessary agreements to confirm this cornmitment. If you have any questions, please advise. Sincerely, Frank Vozel Deputy Director and Chief Engineer c: Commissioner Dick Trammel Director Assistant Chief Engineer -Planning Assistant Chief Engineer -Design Right of Way Roadway Design Programs and Contracts District 4 Chris Brown, City Engineer