Title
A Resolution Authorizing the Mayor to Execute and Administer an Intergovernmental Agreement Between the Pikes Peak Rural Transportation Authority, El Paso County, The City of Colorado Springs, and Copper Ridge Metropolitan District Concerning Reimbursement for The Powers Boulevard Extension
Presenter:
Gayle Sturdivant, P.E., City Engineer/Interim Public Works Director
Travis Easton, P.E., Deputy Chief of Staff
Randy Helms, Councilor, PPRTA Board Chair
Body
Summary:
The Copper Ridge Metropolitan District (District) intends to issue bonds to advance construction of the Powers Blvd Extension from SH83 to Voyager Pkwy (Project). The Project is a PPRTA-3 regional “A-list” project to be funded with PPRTA revenues allocated to the City of Colorado Springs (City) and El Paso County (County), with funds starting to become available in 2025. The District’s efforts would advance the start of the project and afford an opportunity for a more effective and efficient project delivery. The District proposes an agreement with the PPRTA, City, and County to reimburse the District for authorized costs up to $140M, subject to annual budgeting and appropriations, and includes the City’s oversight of the reimbursement.
Background:
The Powers Blvd Extension - SH83 to Voyager Pkwy project (Project) is a PPRTA-3 regional “A” list capital project, which could begin to be funded by the PPRTA-3 in 2025 with City of Colorado Springs (City) and El Paso County (County) allocations for capital projects. The Copper Ridge Metropolitan District (District) has already funded and built the Powers Blvd section between I-25 to Voyager Parkway. The District would like to advance construction of Powers Blvd between Voyager Pkwy and SH83 now by issuing bonds. The District intends to issue bonds during the summer of 2023 to fund construction of the Project. Construction is anticipated to start later this year with the initial work focused on the Powers Blvd and Voyager Pkwy interchange (see map).
The PPRTA does not have bonding authority and must pay as funding is available. Leveraging the District’s bonding capabilities would result in more effective and efficient project delivery, by constructing the project sooner and in more logical and complete phases.
The District proposes an Intergovernmental Agreement (IGA) between the District, the PPRTA, the City, and the County to establish a reimbursement plan for authorized Project costs. The City and County will allocate PPRTA-3 capital funds, subject to annual budgeting and appropriations, over a period of up to 10-years starting in 2025 to reimburse the District for authorized Project costs. The authorized project costs are engineering, and construction costs the Project would normally incur if lead by the City or County. The District would not be reimbursed for any non-authorized costs, such as finance charges.
Reimbursement would be allowed for only authorized engineering and construction costs associated with the Project. The IGA states the City will be in the lead role to review statements provided by the District for reimbursement. The City will verify reimbursement requests consist of allowable costs only. Once verified, the PPRTA will reimburse the District directly as PPRTA funding is available. Staff anticipates including the City Auditor’s office in the verification process as needed.
The IGA identifies the amount of PPRTA capital funding that could be available for reimbursement of authorized Project costs, and the timeline for funding availability. Funds anticipated for reimbursement are considered in the following four (4) parts:
1. The City will allocate a total of $72M, or $7.2M annually for the 10-year PPRTA-3 capital authorization, for the purpose of reimbursing authorized Project costs unless funding is no longer needed.
2. The County will allocate a total of $31M, or $3.1M annually for the 10-year PPRTA-3 capital authorization, for the purpose of reimbursing authorized Project costs unless funding is no longer needed.
3. The City may allocate an additional $18.5M, or $1.85M annually for the 10-year PPRTA-3 capital authorization, for the purpose of reimbursing authorized Project costs unless funding is no longer needed, to offset potential PPRTA-2 contingency funding allocated by the City to advance Marksheffel Rd construction, also a PPRTA-3 regional “A-list” project.
4. If additional PPRTA-2 contingency funding is available after funding all PPRTA-2 “A-list” projects and these funds are appropriated by the PPRTA Board of Directors for the Project, which is a PPRTA-2 “B-list” project, then up to $18.5M could be available to reimburse authorized Project costs unless funding is no longer needed.
These funds are subject to annual budget and appropriation by the PPRTA Board. The IGA guarantees a total of $103M available reimbursement of authorized Project Costs. Other PPRTA funding may be available, but in no case exceeds a total of $140M.
The attached IGA has been reviewed by the City and County staff members, the PPRTA staff, and the attorneys for all four parties to the agreement. The PPRTA Citizen’s Advisory Committee (CAC) and Board of Directors voted to approve the IGA on June 7, 2023, and June 14, 2023, respectively.
If the IGA is not approved, the Project would be delayed for several years, and the costs would escalate with inflation and changes in the construction industry. Staff recommends entering into the IGA.
Previous Council Action:
N/A
Financial Implications:
There are no implications to the City’s General Fund. The project was planned for and budgeted ahead of the PPRTA-3 approval process.
City Council Appointed Board/Commission/Committee Recommendation:
The PPRTA Citizen’s Advisory Committee (CAC) and Board of Directors voted to approve the IGA on June 7, 2023, and June 14, 2023, respectively.
Stakeholder Process:
N/A
Alternatives:
Disapprove the resolution and delay the construction start of the Powers Blvd Extension - SH83 to Voyager Pkwy project.
Recommended Action
Proposed Motion:
Recommend Approving the Resolution Authorizing the Mayor to Execute and Administer an Intergovernmental Agreement Between the Pikes Peak Rural Transportation Authority, El Paso County, The City Of Colorado Springs And Copper Ridge Metropolitan District Concerning Reimbursement for The Powers Boulevard Extension.
Summary of Ordinance Language
N/A