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Home My WebLink About112-14 RESOLUTIONRESOLUTION NO. 112-14 A RESOLUTION TO AUTHORIZE A PAYMENT OF $3,500,000.00 TO THE ARKANSAS STATE HIGHWAY AND TRANSPORTATION DEPARTMENT REPRESENTING AN INITIAL PAYMENT OF THE CITY'S PORTION OF CONSTRUCTION, RIGHT OF WAY ACQUISITION AND UTILITY RELOCATION COSTS RELATED TO THE WIDENING OF HIGHWAY 112 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 approves a payment of $3,500,000.00 to the Arkansas State Highway and Transportation Department representing an initial payment of the City's portion of construction, right of way acquisition, and utility relocation costs related to the widening of Highway 112. PASSED and APPROVED this 17th day of June, 2014. APPROVED: ATTEST: By, NELD N, ayor AynGth By: SONDRA E. SMITH, City Clerk/ r tirl'r ,, t% '.\- . • G\T Y 0,c `.,-c"'- � AYE1rEV!LL E:3'" 6� R e i a ..,,` %� Chris Brown Submitted By City of Fayetteville Item Review Form 2014-0243 Legistar File Number June 17, 2014 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Action Required: Development Services Department A Resolution to Approve a Payment of $3.5 Million to the Arkansas State Highway and Transportation Department. Does this item have a cost? $3,500,000.00 Yes Cost of this request 4520.9555.5809.00 Account Number 06035.2200 Project Number Budgeted Item? Yes $28,612,500.00 Category or Project Budget $8,520,036.00 Funds Used to Date $16,592,464.00 Remaining Balance Budget Adjustment Attached? Transportation Bond Street Impts Program or Project Name Street Improvements Program or Project Category Street Sales Tax 2013 Fund Name Previous Ordinance or Resolution # 18-11 Original Contract Number: Com „fits: r -2 -Lo►Y V20130812 CITY OF ayelA�viNSAS lle MEETING OF JUNE 17, 2014 TO: Mayor and City Council CITY COUNCIL AGENDA MEMO THRU: Don Marr, Chief of Staff Jeremy Pate, Development Services Director FROM: Chris Brown, City Engineer DATE: May 30, 2014 SUBJECT: Resolution to Approve a Payment of $3.5 Million to the Arkansas Highway and Transportation Department RECOMMENDATION: Staff recommends approval of the resolution authorizing payment of $3.5 million to the Arkansas Highway and Transportation Department, as requested by the AHTD. The Transportation Committee reviewed this proposal at the May 27, 2014 meeting and also recommends approval. BACKGROUND: 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. The Highway 112 (Garland Avenue) Project, from North Street to Melmar, is included in the City's Transportation Bond Program, with an original 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. The current estimate for the City's obligation is $4.2 million. In 2011, due to a cash flow issue in the bond program, the AHTD allowed the City to defer payment on the Highway 112 project by transferring the City's obligation to a future AHTD project planned at Highway 112 and the 1-49 (then 1-540) interchange. The City Council by Resolution 18-11 (attached) accepted the AHTD's proposal. DISCUSSION: Payment of the City's approximately $4.2 million obligation was expected to be required in 2013; however, due to delays in the Hwy 112/1-49 interchange project, payment is not expected to be required until mid -2015. This delay has created another problem related to the bond program funds, in that the funds from a bond issue must be spent in a timely manner to avoid potential IRS penalties. Therefore, staff requested that the AHTD invoice the City for a portion of our Mailing Address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov obligation so that we can spend these funds that have been allocated to the Highway 112 project. BUDGET/STAFF IMPACT: This project is budgeted through the Transportation Bond Program, and adequate funds are available for this payment. Attachments: Resolution 18-11 Copy of Letter from AHTD requesting payment. 2 RESOLUTION NO. A RESOLUTION TO AUTHORIZE A PAYMENT OF $3,500,000.00 TO THE ARKANSAS STATE HIGHWAY AND TRANSPORTATION DEPARTMENT REPRESENTING AN INITIAL PAYMENT OF THE CITY'S PORTION OF CONSTRUCTION, RIGHT OF WAY ACQUISITION AND UTILITY RELOCATION COSTS RELATED TO THE WIDENING OF HIGHWAY 112 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 approves a payment of $3,500,000.00 to the Arkansas State Highway and Transportation Department representing an initial payment of the City's portion of construction, right of way acquisition, and utility relocation costs related to the widening of Highway 112. PASSED and APPROVED this 17th day of June, 2014. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer ARKANSAS STATE HIGHWAY AND TRANSPORTATION DEPARTMENT Scott E. Bennett Director Telephone (501) 569-2000 Voice/TTY 711 The Honorable Lioneld Jordan Mayor of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 May 26, 2014 P.O. Box 2261 Little Rock, Arkansas 72203-2261 Telefax (501) 569-2400 www.arkansashighways.com Re: Job BB0414 F.A.P. IM-NHPP-540-1(262)66 Porter Rd. -Hwy. 112/71B Widening & Intchng. Impvts. (F) Washington County Dear Mayor Jordan: As you are aware, the City has transferred their partnering commitment from Job 040489 to provide $1.5 million for construction and to pay for the Right -of -Way acquisition and Utility Relocation costs to the referenced project. The development of right of way plans is nearing completion, and appraisals and acquisitions are scheduled to begin this fall. Utility adjustments should then begin in early -2015. If utility adjustments are completed in a timely manner, the project should be ready to let to contract by mid -2015. At this time, the Department requests an initial payment in the amount of $3,500,000.00 from the City for this project. Please submit a check in the amount of $3,500,000.00 (made payable to the Arkansas State Highway and Transportation Department) to this office. If you have any questions, please contact Carlos Meredith in our Programs and Contracts Division at (501) 569-2261. Sincerely, c: Assistant Chief Engineer -Planning Programs and Contracts Transportation Planning and Policy Fiscal Services (2) Right of Way District 4 Job BB0414 'C' File Mr. Chris Brown, Fayetteville City Engineer 026e* adee4 alph J. Hall Deputy Director and Chief Engineer RESOLUTION NO. 1841 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 7113 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 18`h day of January, 2011. APPROVED: By: LIO 4ELD J isrAN, Mayor ATTEST: 0'01010 41,, SONDRA E. SMITH, CityClerk/Traeasli YE1 1 EVILLE IT:',. 9 THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS -accessfayetteuine.arg 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 Q 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 Mehnar, 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 3rd 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, S1.5 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. 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 . PASSED and APPROVED this 6th day of June, 2006. APPROVED: By: ATTEST: ?-•,C;�GCC O�`'SG��. ;Q : FAYETTEVILLE: ,,'''h,;;;'G j ON,a.`��. ONDRA SMITH, City Clerk ARKANSAS STATE HIGHWAY AND TRANSPORTATION DEPARTMENT Dan 1 InwCrs Director Phone (01) 569.20M lax 1501 l S(<) 2:100 The Honorable Lioneld Jordan Mayor of Fayetteville 113 West Mountain Fayetteville, AR 72701 Dear Mayor Jordan: January 11, 2011 P.O. Bo \ 2261 Little Rock. Arkans;ts 72203. 2261 www.:RkANsAst III t :`:Aysl'l m 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. 71B Interchanges Interim lmpvts. (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 commitment. If you have any questions, please advise. 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 Sincerely, Frank Vozel Deputy Director and Chief Engineer ARKANSAS STATE HIGHWAY RECEIVED AND NOV 15 2010 TRANSPORTATION DEPARTMENTCi. or FAYE� rt -v,„ MAYORS OFFICE Dan Flowers Director Phone (501) 509-2000 Fax (5011 509.2400 The Honorable Lioneld Jordan Mayor of Fayetteville 113 West Mountain Fayetteville, AR 72701 November 12, 2010 P.U. Box 2261 Little Rock, Arkansas 72203-2261 W W W.ARKAN SASI nOH W AYS.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 will 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