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Date
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July 23, 2007
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Agenda Item No. 24 Roll Call No. Communication No. 07-448 Submitted by: Jeb E. Brewer, P.E. City Engineer |
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AGENDA HEADING:
Authorizing Issuance of Self-Certification of Financial Capability to the Corps of Engineers for the Principal Riverwalk Project.
SYNOPSIS:
This action authorizes the
Finance Director to sign a self-certification of financial capability to the
Corps of Engineers for the Principal Riverwalk project and finds that the terms
of the draft Project Cooperation Agreement are in proper form. The self-certification is required by the
Corps of Engineers before entering into a Project Cooperation Agreement. The Project Cooperation Agreement will
provide for the construction of a cost-shared project using
FISCAL IMPACT:
Amount: $19,427,100
Funding Source: The
non-Federal cost share for the project is estimated at $19,427,100. City cash costs are limited to $3,035,000 for
the Corps of Engineer’s defined project.
These funds are included in the 2007-2008 CIP, Page Park-23, Riverwalk,
PKS162, TIF.
The current Corps of
Engineer’s cost estimate, including non-Federal cost share and Des Moines
Recreational River and Greenbelt funding, is $37,259,700. Principal Life Insurance Company and the Des
Moines River Front Development Authority have committed to funding the
remainder of the project, estimated at $4.8 million, through a third party
agreement to be executed in conjunction with the Project Cooperation
Agreement. Funding Source: The non-Federal cost share for the project is
estimated at $19,427,100. This includes
the following: $11,594,500 of
work-in-kind credit for eligible design and construction costs incurred,
$3,029,500 credit for the value of land incorporated into the project, and an
estimated $4,803,100 for required cash contribution. City costs are limited to $3,035,000 for the
Principal Riverwalk project. These funds
are included in the 2007-2008 CIP, Page Park-23, Riverwalk, PKS162, TIF.
The
current Corps of Engineer’s cost estimate of $37,259,700, includes the
non-Federal cost share of $19,427,100 and Federal funding from the
ADDITIONAL INFORMATION:
The Corps of Engineers has requested a Self-Certification of Financial Capability that confirms the City’s ability to satisfy the obligations described in the Project Cooperation Agreement (PCA). A draft PCA has been provided that includes the responsibilities of the Corps of Engineers and the City for financial obligations and work related to the project. In turn, an agreement with Principal Life Insurance Company and the Des Moines River Front Development Authority (RDA) that assigns responsibilities for funding and participating in the project has been prepared and approved to form. The RDA and Principal intend to execute the agreement once the Corps of Engineers provides a complete PCA.
The Corps of Engineers defined project is
$37,259,700. Portions of the defined
project have already been completed, including design work and construction of
the
The Corps of Engineers defined project cost estimate does
not include all of the Principal Riverwalk.
The following items are not included in the Corps of Engineer’s defined
project estimate: Brenton Skating Plaza,
Hansen Company Triangle, donated artwork, or the full value of projects
constructed with other Federal funds, such as the Riverpoint Trail,
The design of
remaining Riverwalk projects is being finalized. Construction of the remaining Riverwalk
project components is dependant on receiving additional funding. Should
PREVIOUS COUNCIL ACTION(S):
Date: October 24, 2005
Roll Call Number: 05-2600
Action: Vision Iowa
Program Grant Award Agreement for the construction of the Rediscovering the
Rivers Project including the Principal Riverwalk and Meredith Riverpoint
Trail. (Council
Communication No. 05-596) Moved by Hensley to adopt. Motion Carried 7-0.
Date: April 25, 2005
Roll Call Number: 05-1062
Action: Intergovernmental
28E Agreement with the Des Moines Riverfront Development Authority, for
planning, constructing and maintaining riverfront improvements in the Downtown
area. (Council
Communication No. 05-230) Moved by Hensley to adopt. Motion Carried 7-0.
Date: March 22, 2004
Roll Call Number: 04-599
Action: Execution of a Design Agreement with the Department of the Army for design of the Principal Riverwalk and related agreement with Principal Life Insurance Company. (Council Communication No. 04-153). Moved by Hensley to adopt. Motion Carried 6-1. Nays: Brooks.
Date: August 25, 2003
Roll Call Number: 03-2011
Action: Regarding
the Principal Riverwalk and Riverfront use items (including letter of
assurance to the Corps of Engineers).
(Council
Communication No. 03-422). Moved by
Vlassis to adopt. Motion Carried
6-1. Absent: McPherson.
BOARD/COMMISSION ACTION(S): NONE
ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:
Project Cooperation Agreement
with the Corps of Engineers and agreement with Principal Life Insurance Company
and the Des Moines River Front Development Authority for responsibility of
non-federal sponsor financial obligation and work related to the Des Moines
Principal Riverwalk Project.