ACTION REQUESTED:
Title
Communication from City Manager and Director of Public Works with a Request to Approve an Intergovernmental AGREEMENT between the City of Peoria and County of Peoria for the RECONSTRUCTION and JURISDICTIONAL TRANSFER of WILLOW KNOLLS ROAD and ALLEN ROAD INTERSECTION, from the County Highway System to the Municipal Street System. (Council District 5)
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BACKGROUND: The City of Peoria and County of Peoria having been working on an intergovernmental agreement and jurisdictional transfer of the County’s share of the Willow Knolls and Allen Roads intersection. The desired outcome was to identify a solution that would not only allow for the intersection to be constructed this year, but to do so without creating the need to raise taxes in future years. A number of meetings were held to develop a plan to accomplish this. As noted below, a design-build project delivery method is needed to meet the schedule. Financial solutions were conceived through the use of design-build. IDOT has previously prohibited the use of MFT dollars and any federal dollars on design-build projects. PPUATS had previously awarded $1.274M (80%) in Surface Transportation Urban (STU) federal funding for construction of the intersection in State FY 2022.
The recommendation achieves the outcomes while improving pedestrian safety and access.
1. Intersection will be constructed in 2018 (at least substantially).
2. City will accept jurisdictional transfer (JT) of the intersection as is at the beginning of the project.
3. City will be the lead agency and will design and construct the intersection using the design build project delivery method. This project method is needed to meet the time constraints of building the intersection this year.
4. Roundabout and additional improvements focused on pedestrian safety will be given priority in the design.
5. City will select vendor(s) with County participating in selection process.
6. City will hold all contracts with vendors for both governments. Both governments are party to all contracts.
7. County will fund 100% of the project cost.
8. City and County will jointly review all pay requests and track work progress in the field.
9. County will pay vendor upon request from the City.
10. County will structure a loan due from the City for 50% of the total project cost.
a) Loan will have an interest rate of 3.0%.
b) Loan will be amortized over 10 years with the City paying only interest the first 5 years.
c) First payment due in 2019 with exact date to be determined upon project completion.
d) Final amortization schedule set upon completion of the project with final total project cost.
e) No penalty to the City for paying off the loan early.
f) The County would use reserves from the “Keystone” Fund to pay the City’s share.
11. City and County will aggressively pursue repurposing of County’s STU allocation for this project.
12. Recommendation is to have the STU allocation repurposed to the County’s portion of Glen Avenue (Knoxville to Sheridan) and scheduled for State FY2022.
13. No County or City bridge or road projects are compromised or delayed by this project.
14. Items #1 - #13 memorialized in an IGA to be adopted by the City Council and County Board.
15. 50% County Share: Not To Exceed $1.8 M from Employee Health Fund
a) 10-year or less amortization at 0.0% interest
b) County pays Employee Health Fund back from Matching Tax Fund
c) No increase in Matching Tax property tax Rate needed, but current rate of 2.4424¢ must be maintained
d) Annual payment from Matching Tax to Employee Health is $225,000 if the full $1.8 M is used.
e) Will recalculate annual payment and amortization schedule at completion of project.
f) First payment due December 1, 2019 and each subsequent year until paid in full.
FINANCIAL IMPACT: The interest payment on the loan will be factored into the 2019 City of Peoria budget.
NEIGHBORHOOD CONCERNS: The transfer of ownership from County to City will not affect the neighborhoods.
IMPACT IF APPROVED: The City will take jurisdiction of the subject road, and will receive funds from Peoria County to be used for the Willow Knolls/Allen intersection improvement.
IMPACT IF DENIED: Willow Knolls and Allen Road will be continued to be patched and continue to fall further into disrepair.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
2. Grow Peoria
3. Beautiful Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Have an efficient government.
3. Grow employers and jobs.
DEPARTMENT: Public Works