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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/15/2016 - RESOLUTION 2016-087 AFFIRMING ITS INTENT TO SHAREAgenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY November 15, 2016 City Council STAFF Mark Jackson, PDT Deputy Director Rick Richter, Director of Infrastructure Services SUBJECT Resolution 2016-087 Affirming Its Intent to Share Costs for Improvements to the Interstate 25 (I-25) and Prospect Road Interchange Improvements as a Part of the Colorado Department of Transportation's North I-25 Corridor Improvements Project. EXECUTIVE SUMMARY The purpose of this item is to affirm Council’s support of the City’s intent to share in costs for improvements to the Prospect-Interstate 25 (I-25) interchange with the Colorado Department of Transportation (CDOT). This funding partnership would allow for significant cost efficiencies and inclusion into CDOT’s overall base case project of Northern Colorado improvements to I-25. City staff is exploring funding partnership tools, including a proportional share of cost from key stakeholders/property owners proximate to the interchange. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The Colorado Department of Transportation (CDOT) will make improvements to Interstate 25 (I-25) in Northern Colorado, beginning in 2017, with actual construction commencing in 2018 and ending in 2020. Planned improvements include repair or replacement of two bridges, expansion of a third managed lane in each direction, slip ramps and a park and ride at Larry Kendall Parkway in Loveland. No interchange improvements are identified as part of the $237 million effort. Project boundaries are SH-14 (Mulberry) to the north and SH- 402 (Loveland) to the south. The City of Fort Collins has, to date, committed $2.25 million of local funds in support of this project as part of the 2017-2018 budget, and also agreed to remit an additional $2.2 million in funds over the next five years to Larimer County to be used for CDOT’s I-25 improvements. The interchange at Prospect Road and I-25 is aging infrastructure that is currently failing in level of service (congestion) at peak periods of travel. Existing and planned development in the area are exacerbating congestion issues. City of Fort Collins staff has worked closely with CDOT during preliminary design phases to ensure improvements to the interchange meet the City’s needs, design standards, and integrate with the City’s road network. City staff has also been working with private land interests proximate to the interchange to discuss public-private funding partnerships that could accelerate needed improvements. CDOT is using a Design-Build project management approach to the I-25 project. This combined project management approach allows for possible economies of scale and cost efficiencies that could expand the scope of the project improvements. CDOT has indicated that if the City of Fort Collins is willing to partner on funding to improve the Prospect/I-25 interchange, there is a window of opportunity for the interchange improvements to be included in its base case project scope. A statement of intent to partner with CDOT is Agenda Item 12 Item # 12 Page 2 required before it issues the Request for Proposals (RFP) in early 2017. Funds for the City’s share of improvements to the Prospect/I-25 interchange have yet to be identified or appropriated. CITY FINANCIAL IMPACTS This Resolution does not require nor commit this Council to identify and appropriate City of Fort Collins funds at this time. The City of Fort Collins is expected to contribute financially to the cost of improving the interchange in order for CDOT to incorporate the project into the North I-25 Improvements Project. Staff anticipates that 50% of the interchange costs will need to be borne by the City, other regional agencies, and private property owners and development interests. Funds will need to be identified and appropriated in the 2018-2020 timeframe, and committed by way of an Intergovernmental Agreement (IGA) between the City and CDOT prior to final Request for Proposals, specifying time frames and amounts of funds needed. Initial estimates of project costs (with enhanced urban design features) range from $33.5 million (modified improvements) to $41.5 million for the full Environmental Impact Statement (EIS) improved configuration. Incorporating the interchange improvements into the larger North I-25 Improvement Project results in significant cost efficiencies and economies of scale. Inclusion of the interchange project results in a reduction of preliminary cost estimates to $28.5 million for interim improvements and $35.5 million for full configuration. Staff anticipates funding support from local private property owners and other municipalities. It is difficult to estimate the City’s share, given the uncertain contributions of others, but estimates range from $9 million to $12 million. Given current fund balances and revenue projections, staff does not anticipate the ability to support a project of this size with fund balance reserves and anticipates the need to borrow these funds in early 2018 after the project costs and funding partners have been identified. Combining funds from public agencies and private interests results in a lower cost improvements to the aging interchange in a quicker time frame. BOARD / COMMISSION RECOMMENDATION Council expressed interest in considering the Resolution as part of the discussion of CDOT’s I-25 project at its October 25 work session discussion. PUBLIC OUTREACH CDOT held numerous public open houses and listening sessions as part of the North I-25 Environmental Impact Statement (EIS) (2011), where designs of the Prospect/I-25 interchange were presented. Conceptual design of the interchange was approved in 2011with the Record of Decision (ROD). ATTACHMENTS 1. Project Interchange Task Force Letter, November 2, 2016 (PDF) 2. Work Session Summary, October 25, 2016 (PDF) ATTACHMENT 1 ATTACHMENT 2 -1- RESOLUTION 2016-087 OF THE COUNCIL OF THE CITY OF FORT COLLINS AFFIRMING ITS INTENT TO SHARE COSTS FOR IMPROVEMENTS TO THE INTERSTATE 25 (I-25) AND PROSPECT ROAD INTERCHANGE IMPROVEMENTS AS A PART OF THE COLORADO DEPARTMENT OF TRANSPORTATION'S NORTH I-25 CORRIDOR IMPROVEMENTS PROJECT WHEREAS, Interstate 25 (I-25) serves as the primary north-south highway connection for Northern Colorado including Fort Collins and is the primary route for the City's regional connectivity to commerce, health care, education and employment; and WHEREAS, the Colorado Department of Transportation (CDOT) will make improvements to Interstate 25 (I-25) in Northern Colorado beginning in 2017, with actual construction commencing in 2018 and ending in 2020; and WHEREAS, planned improvements to I-25 between SH-14 (Mulberry) and SH-402 (Loveland) include repair or replacement of two bridges, expansion of a third managed lane in each direction, and slip ramps and a park and ride at Larry Kendall Parkway in Loveland (the "North I-25 Improvements Project"); and WHEREAS, the City has committed $2.25 million of local funds in support of the North I-25 Improvements Project as a part of the 2017-2018 budget and agreed to remit an additional $2.2 million in funds over a five-year period to accelerate the Project pursuant to Resolution 2016-077, which authorized the Mayor to execute an Intergovernmental Agreement for Funding I-25 Improvements with Larimer County and seven other municipalities; and WHEREAS, no interchange improvements are currently identified as part of the North I- 25 Improvements Project; and WHEREAS, the interchange at Prospect Road and I-25 (the "Prospect Road Interchange") is aging infrastructure that is currently failing in level of service (congestion) at peak periods of travel, with existing and planned development in the area that is exacerbating congestion issues; and WHEREAS, City staff has worked closely with CDOT during preliminary design phases for the North I-25 Improvements Project to ensure that future improvements to the interchange can be made to meet the City’s needs, design standards, and integrate with the City's road network; and WHEREAS, City staff has also been working with private land interests proximate to the Prospect Road Interchange to discuss public-private funding partnerships that could accelerate needed improvements to the Prospect Road Interchange; and WHEREAS, CDOT is using a design-build project management approach to the North I- 25 Improvements Project, which allows for expansion of the scope of the project improvements to include needed improvements to the Prospect Road Interchange; and -2- WHEREAS, CDOT has indicated that if the City of Fort Collins is willing to partner on funding to improve the Prospect Road Interchange, there is a window of opportunity for the interchange improvements to be included in the base case project scope for the North I-25 Improvements Project, which is likely to result in significant cost efficiencies and economies of scale for the Prospect Road Interchange improvements and urban design augmentation features; and WHEREAS, combining funds from public agencies and private interests to complete the Prospect Road Interchange improvements with CDOT's North-I-25 Improvements Project will result in a lower cost for improvements to the aging interchange in a quicker timeframe; and WHEREAS, CDOT held numerous public open houses and listening sessions as part of the North I-25 Environmental Impact Statement (EIS) (2011), where designs of the Prospect Road Interchange were presented and conceptual design of the Interchange improvements was approved in 2011with the Record of Decision; and WHEREAS, at City Council's October 25, 2016, work session, Council discussed this opportunity to explore public-private funding partnerships to accomplish the Prospect Road Interchange improvements and Councilmembers expressed interest in considering a resolution stating Council’s intent that the City share costs for such improvements; and WHEREAS, Council intends to share such costs subject to further definition of the improvements to be completed, the costs of such improvements, the appropriate allocation of such costs among public and private entities realizing a benefit from such improvements and appropriation of funds in future budget cycles. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Sectioni 2. That the City Council hereby supports the concept of including the Prospect Road Interchange improvements in CDOT's North I-25 Improvement Project and intends to share in funding for the Prospect Road Interchange Improvements through cooperative public-private funding provided by the City and others benefitted by such improvements. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of November, A.D. 2016. _________________________________ Mayor ATTEST: _____________________________ Chief Deputy City Clerk