BACKGROUND:
On April 1, 2009, the City entered into a Reimbursement Agreement with the Coachella Valley Association of Governments (CVAG) to prepare a Project Study Report (PSR) for a new interchange along Interstate 10 (I-10) at Da Vall Drive. In this agreement, CVAG agreed to cover 100% of the project costs up to $1,300,000. In 2011, CVAG requested all work on the PSR cease due to funding limitations.
On March 14, 2018, City Council approved the re-opening of the Da Vall Drive/I-10 Interchange Project (Project) to complete the PSR and authorized requesting CVAG for additional funds. On June 4, 2018, CVAG approved an amendment to the Reimbursement Agreement for $190,000 to cover Caltrans oversight on the PSR.
On August 1, 2018, a Notice to Proceed (NPT) was given to TY Lin to re-start project.
The City authorized T.Y. Lin International to complete their scope of services within the previously approved amount in accordance with their contract dated May 27, 2009.
City Staff also entered into a Cooperative Agreement with Caltrans on May 10, 2019, attached, to allow Caltrans to provide oversight on the Project Initialization Document (PID) & PSR and requires the City to be the Project sponsor and responsible to fund their work (estimated at $190k).
Since this time, T.Y. Lin International has been diligently delivering the scope of work and expects the final Project Study Report to be approved in April, 2022. As part of the scope of services, T.Y. Lin International agreed to perform a Value Engineering Analysis to evaluate potential cost saving changes to the scope of the Project. This analysis was completed in December 2021. This analysis is required by the Federal Highway Administration for this size project on the Interstate System, however, Caltrans typically plans for this analysis to be done at the beginning of the Project Approval Phase, rather than at the end of the PSR Phase. As such, the current Cooperative Agreement does not include any scope or budget for Caltrans to accept the Value Analysis that was prepared.
DISCUSSION:
Caltrans has provided a draft of the Amendment No. 01 for the Cooperative Agreement, 08-1680, that has been approved by Caltrans Headquarters and includes the additional scope necessary to accept the Value Engineering Analysis with the Project Study Report Phase. With this additional scope of work, Caltrans is requiring an additional $20,000 be added to the oversight budget. City Staff had discussions with CVAG about this Amendment No. 01. As of today, it is expected that the City and CVAG have adequate funding in the current Reimbursement Agreement to accommodate this additional $20,000.
Staff is requesting that the City Council approve Amendment No. 01 to the Cooperative Agreement, 08-1680, dated May 10, 2019, in the amount of $20,000, between Caltrans and the City of Cathedral City related to the Da Vall Drive/I-10 Interchange Project; and authorize the City Manager to execute Amendment No. 01.
FISCAL IMPACT:
When the City Council approved the re-opening of the Project, the City amended the reimbursement agreement with the Coachella Valley Association of Governments (CVAG) so that it would include the additional oversight budget for Caltrans to review and approve the Project Study Report. The CVAG Reimbursement Agreement currently funds 100% of the Project Study Report Phase up to $1,490,000.
City Staff had discussions with CVAG about this Amendment No. 01. As of today, it is expected that the City and CVAG have adequate funding in the current Reimbursement Agreement to accommodate this additional $20,000. CVAG was supportive of considering any additional cost overruns on the Reimbursement Agreement that are determined after Project Study Report Phase is complete. •Total Cost = $20,000
•CVAG Funds = $20,000
The Project is currently identified and funded from the FY 2021-22 and 2022-23 Capital Improvement Program Da Vall/1-10 Interchange Project 331-100-150-156-8600-8601 with all costs reimbursed by CVAG.