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HomeMy WebLinkAbout07125ORDINANCE NO. 7125 AN ORDINANCE APPROVING AN AMENDMENT TO THE PROJECT COOPERATION AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE CITY OF PUEBLO FOR THE ARKANSAS RIVER FISHERIES HABITAT RESTORATION PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the City Council of Pueblo has the authority on behalf of the City of Pueblo to enter into agreements with the federal government for the purpose of undertaking public projects involving local and municipal interests; and WHEREAS, the Arkansas River Fisheries Habitat Restoration, Pueblo, Colorado, Section 206, Aquatic Ecosystem Restoration Project (hereinafter referred to as the "Project ") has been authorized to be undertaken by the Department of the Army (the "Government ") by Section 206 of the Water Resources Development act of 1996, P.L. 104 -303 and it is in the best interests of the City and its residents to cooperate with the Government in undertaking the Project; and WHEREAS, the City and Government entered into a project cooperation agreement for implementing the Project on April 8, 2002 and desire to amend the responsibilities, cost sharing and other terms of cooperation for the Project; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 _ The amendment to the Project Cooperation Agreement (the "Agreement ") between the City and Government dated April 12, 2004, a true copy of which is attached hereto, is hereby approved in accordance with its terms, provided however, that neither this Ordinance nor any provision of the Agreement shall constitute, nor be deemed to constitute, an obligation of future appropriations by the City Council, nor a general obligation or other indebtedness or multiple - fiscal year direct or indirect City debt or other financial obligation within the meaning of Article X, §20 of the Colorado Constitution or other debt limitations under law. SECTION 2 Attachment 1, Modified Project Costs attached hereto, is hereby approved and consented to. SECTION 3 The President of the City Council is authorized and directed to execute the amendment to the Agreement in the name of and on behalf of the City and the City Clerk shall attest same. INTRODUCED March 22, 2004 BY Michael Occhiato Councilperson Background Paper for Proposed ORDINANCE 33 AGENDA ITEM # DATE: MARCH 22, 2004 DEPARTMENT: COMMUNITY DEVELOPMENT /JIM MUNCH PLANNING DEPARTMENT /CATHY GREEN TITLE AN ORDINANCE APPROVING AN AMENDMENT TO THE PROJECT COOPERATION AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE CITY OF PUEBLO FOR THE ARKANSAS RIVER FISHERIES HABITAT RESTORATION PROJECT AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve an amendment to the Project Cooperation Agreement with the U.S. Army Corps of Engineers for the Arkansas River Fisheries Habitat Restoration authorized to be undertaken by the Department of the Army Section 206 of the Water Resources Development Act of 1996? RECOMMENDATION Approval of the Ordinance. BACKGROUND The City of Pueblo entered into a project cooperation agreement (PCA) for the Arkansas River Fisheries Habitat Restoration Project on April 8, 2002. The PCA defines the responsibilities, cost sharing and other terms of cooperation for the Project. The Army Corps is allowing the City to claim a portion of the cost of the sanitary sewer replacement project ($44,293), and the City's staff costs for project design and real estate acquisition ($84,651) as part of the Real Estate acquisition costs. Additionally, the City's cost to assist in the plantings and removal of non- native plants ($319,543) is being credited as an in -kind project cost. The increase in the City's in -kind costs will result in a reduction in the City's cash payments to the Army Corps by $370,950. For more details please refer to the attached Department of the Armys March 3, 2004 letter. FINANCIAL IMPACT The amendment to the PCA increases the City's financial commitment as the Local Project Sponsor to $2,582,844 for the River Habitat project. The value of the real estate provided for the project and the funds being paid the project partners provide all but $230,000 of the local project partner expenses. See the attached revised Arkansas River Legacy Project budget. PCA Amendments The term "work -in- kind" as and General Provisions) of dated April 8, 2002, shall invasive plant species and the design of the fish pas follows: presented in Article I.L. (Definitions the Project Cooperation Agreement (PCA; be amended to include the removal of tree guard construction in addition to sage. Article I.L. shall be amended as "L. The term "work -in- kind" shall mean: (1) the design of a fish passage at the Southern Colorado Power diversion structure to allow safe navigation by small watercraft, as approved by the South Pacific Division Engineer in a memorandum dated 5 April 2002; (2) the removal of invasive plant species; and (3) the tree guard construction delivered and ready for use prior to the proposed tree planting. The work -in -kind will be closely coordinated with the U.S. Army Corps of Engineers, Albuquerque District design team so that it can be integrated into the overall project construction drawings and specifications. The work -in -kind includes implementation of the authorized improvements as well as planning, engineering, design, supervision and administration, and other activities associated with implementation, but does not include the implementation of betterments or the provisions of lands, easements, rights -of -ways, relocations, or suitable borrow and dredged or excavated material disposal areas associated with the work -in- kind." Article II.D.4. (Obligations of the Government and the Non - Federal Sponsor), of the Project Cooperation Agreement (PCA) dated April 8, 2002, shall be amended to reflect that the Government has determined that the work -in -kind is compatible with the Project and has approved a credit in the estimated amount of $354,543 for implementation of such work by the Non - Federal Sponsor. Article II.D.4. shall be amended as follows: "4. The Government has determined that the work -in -kind is compatible with the Project and has approved a credit in the estimated amount of $354,543 for implementation of such work by the Non - Federal Sponsor. The affording of such credit shall be subject to an on -site inspection by the Government to verify that the work was accomplished in a satisfactory manner and is suitable for inclusion in the Project. The actual amount of credit shall be subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. To afford such credit, the Government shall apply the credit amount toward any additional cash contribution required under paragraph D.2. of this Article. The Non - Federal Sponsor shall not receive credit for any amounts in excess of such additional cash contribution, nor shall the Non - Federal Sponsor be entitled to any reimbursement for any excess credit amount. In no event shall the Non - Federal Sponsor perform work -in -kind that would result in either the credit afforded under this paragraph exceeding 100 percent of the Non - Federal Sponsor's share of total project costs or the credit afforded under this paragraph, plus the value of lands, easements, rights -of -ways, relocations, and suitable borrow and dredged or excavated material disposal areas for which the Government affords credit in accordance with Article IV of this Agreement, exceeding 35 percent of total project costs." IN WITNESS WHEREOF, the parties hereto have executed this amendment to the Project Cooperation Agreement (PCA) dated April 8, 2002, which shall become effective upon the date it is signed by the Department of the Army. THE DEPARTMENT OF THE ARMY THE CITY OF PUEBLO, a municipal corporation BY: ��+.r� BY: Dana R. Hurst Randy hurston Lieutenant Colonel - _ City Council President District Engineer DATE: DATE: q ATTESTED BY City rk APPROVED AS TO FORM: Ci / ty Atto ey a Attachment 1 Total Project Cost . . . . . . . . . . . . . . . . . $7,379,554 Project Features E & D . . . . . . . . . . . . . . $ 1 Construction . . . . . . . . . . . $ 3,299,365 Adaptive Management . . . . . . . $ 175,000 Tree and Shrubs Plantings . . . . $ 447,000 Supervision & Administration (S&A) $ 214,459 Contingency (10 %) . . . . . . . . $ 329,936 LERRD . . . . . . . . . . . . . . $ 877,600 Project Coordination . . . . . . $ 84,651 Work -In -Kind (WIK): Fish Passage . . . . . . . . $ 35,000 Invasive Plant Removal. . . . $ 300,000 Tree Guards . . . . . . . . . $ 19,543 Total $ 7,379,554 Total Est Non - Federal Cost . . $2,582,844 LERRD . . . . . . . . . . . . . . . . . $ 877,600 Work -In -Kind (WIK) Fish Passage . . . . . . . . . . . $ 35,000 Invasive Plant Removal . . . . . . $ 300,000 Tree Guards . . . . . . . . . . . $ 19 Project Coordination . . . . . . . . . $ 84,651 Subtotal $ 1,316,794 CASH . . . . . . . . . . $ 1,266,050 Non - Federal Total $ 2 Cost Share Requirements Federal Allocations (65% Cost Share) . . . . . . . . . $4,796,710 Non - Federal Cost (35% Cost Share) . . . . . . . . . $2,582,844 Total Project Cost. . . . $7,379,554 +Y DEPARTMENT OF THE ARMY ALBUQUERQUE DISTRICT, CORPS OF ENGINEERS 4101 JEFFERSON PLAZA NE ALBUQUERQUE NM 87109 -3435 0 3 MAR 2004 Planning, Project and Program Management Division Mr. Lee R. Evett City Manager City of Pueblo 1 City Hall Place Pueblo, CO 81003 Dear Mr. Evett, As you may be aware, we have received and are currently evaluating contractor proposals for award of the Arkansas River Fisheries Habitat Restoration, Pueblo, Colorado,�Section 206, Aquatic Ecosystem Restoration Project. Based on these proposals and updated information provided by Mr. Scott Hobson concerning the City's costs for real estate, relocations and work -in -kind, the estimated total project costs have changed. As discussed with Mr. Hobson, the total project costs are now estimated to be $7,379,554 (as_ shown on Attachment 1), an increase of $788,554 over the estimate presented in Article VI.A. (Method of Payment) of the Project Cooperation Agreement (PCA), dated April 8, 2002. The revised cash contribution required from the City of Pueblo is estimated to be $1,266,050, a decrease of $370,950 from the estimate presented in the PCA. The decrease in the City's cash contribution is attributed to additional Non - Federal project management and work -in -kind estimates. The PCA must be amended to reflect the additional project costs. The changes to the PCA are enclosed in Attachment 2. The City's cost.for this project is 35 percent of the total project costs. The Federal cost -share for this project is limited by law to $5,000,000. As you can see in Attachment 1, the estimated Federal cost is very close to this limit. If the final project cost exceeds the Federal limit, the City must pay the costs beyond that limit. The City's estimated cash contribution was calculated based on the current estimates for the value of lands, easements, rights -of -way, relocations, disposal areas (LERRD) and work -in -kind. The City's final cash requirement may increase or decrease upon final accounting of the value of the LERRD and work -in -kind. I am requesting that the City of Pueblo provide a letter stating that the City concurs with the current cost estimate and agrees to the amendment to the PCA. This letter is required before we are able to award a construction contract. Thank you for your attention to this matter. Should you have any questions please contact me at (505) 342 -3261 or my Project Manager, Mr. Ramon Macias, III, at (505) 342 -3326. Sincerely, -`� Cynthia Nielson \ Deputy District Engineer for Project Management Enclosures Project 1. Arkansas River Habitat Improvements 2. Cxeenway & Nature Center - Environmental Education Area - Natural Resource Restoration - Raptor Center Improvements Nature Trails & Interpretive Signs 3. Trail System Improvements - Replace 6 miles of trails - St. Charles Mesa Trail Connection - Trail signs - Pueblo West Trail 4. Environmental Education Sites - Overton Wildlife Viewing Area - Conduit Trail Area 5. Pueblo Zoo Improvements - Colorado River Otter Exhibit -Trail Connection From River Trail 6. Riverfront Parks & River Access - Riverfront park - River access points - Kayak Course PROJECT COST - Phase 1 Note: $1.00 = $1 million dollars Amendment #5 Pueblo Arkansas River Corridor Project Project Budget CORPS LOCO TE21 ST. PARKS ST. TRAILS DOW CITY INatlNO COUNTY RKY. WrN. CDBG BOWW OTHER TOTAL 4.796 $ 1.478 $ 0.124 $ OA23 $0.230 $0.323 $ 0.210 $ 0.053 $ 0.143 $ 7.380 $ $ $ 0.120 0.020 0.030 $0.035 $0.015 $0.010 $ $ $ 0.015 .0.015 0.010 0.132 $ $ 0.060 . 0.050 $ $ $ .0.352 0.050 0.100 $ 0.137 i '0.30 $ 0.017 $0.055 $ 0.075 $ 0.053 OA91 $ 0.007 $ 0.735 $ 0.035 $ 0.020 $ 0.015 $0.010 $ 0.025 $ 0.020 -$ $ 0.025 0.100 $ 0.005 $ $ 0.030 0.045 $ $ 0.010 0.010 $ $ 0.040 0.060 $ 0.175 $0.045 $ 0.030 $ 0.100 $ 0.350 • $ 0.015 $ 0.015 4.796 $ 2.000 $ 0.30 $ 0.144 $ 0.015 $0.115 10.400 $0.323 $ 0.400 $ 0.053 $ 0.053 0.223 $ 0.335 $ 8.957 $0.10 = $100 thousand dollars $0.01= $10 thousand dollars