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  ITEM 19.       
Meeting Date: 10/13/2020  
Submitted For: Trevor Ebersole
Department: Transportation  

Subject
REIMBURSEMENT AGREEMENT WITH RRB BEVERAGE OPERATIONS INC FOR THE DESIGN, CONSTRUCTION AND FUNDING OF THE TRAFFIC SIGNAL AT PEORIA AVENUE AND REEMS ROAD
Presented by: Trevor Ebersole, Director, Transportation
Purpose and Recommended Action
This is a request for City Council to authorize and direct the City Manager to enter into a Reimbursement Agreement with RRB Beverage Operations, Inc. for cost participation in the construction of a new traffic signal at the intersection of Peoria Avenue and Reems Road.
Background
The Peoria Avenue and Reems Road intersection is an existing four-way intersection of two arterial streets controlled with stop signs and is located within the jurisdictions of Glendale, Surprise and Maricopa County.  The traffic impact analysis for the RRB Beverage Operations, Inc. project on the southeast corner found that a traffic signal is warranted at this intersection.  The general practice for allocating the cost of a new traffic signal is twenty-five percent (25%) for each corner of the intersection.  
 
The developer has completed design plans for this new signal and will complete the construction as part of their off-site improvements in accordance with their Development Agreement.  The City of Surprise will own, operate and maintain the signal once construction is complete and the project is accepted.
Analysis
This Reimbursement Agreement outlines the process and amounts for reimbursement to RRB Beverage Operations, Inc. The developer is solely responsible for the cost of the signal design.  Upon substantial completion and acceptance of the traffic signal improvements, the City will reimburse RRB Beverage Operations, Inc. for seventy-five percent (75%) of the net project cost.  If the net project cost exceeds $300,000, the City will reimburse sixty-two and one-half percent (62.5%) for those costs in excess of $300,000. 
 
The City will seek repayment from the Maricopa County Department of Transportation and the City of Surprise for the amount paid to RRB Beverage Operations Inc., LLC based on an Intergovernmental Agreement.
 
Previous Related Council Action
On February 26, 2019, C19-0175 (Development Agreement) established with MPBCRB, LLC, for the development of real property located at 10501 North Reems Road.  This agreement allowed for a partnership to locate RRB Beverage Operations Inc. to Glendale.
 
The City of Surprise is responsible for the operation and maintenance of the traffic signal at Peoria Avenue and Reems Road per the IGA previously presented to Council.
 
Community Benefit/Public Involvement
This agreement will allow for the proportionate sharing of the cost of a new traffic signal at the intersection of Peoria Avenue and Reems Road.  The installation of this traffic signal will allow commercial and residential vehicles, and pedestrians to safely travel between industrial and residential developments. 
 

Fiscal Impact
Fiscal Year: FY2020-21
Fiscal Year Amount Requested: $375,000
Budgeted Y/N?: N
Account: 40204529-550100
Transfer Required? Y/N: Y
If Yes, what account will be used?: 20503212-599991
Budget and Financial Impacts:
The construction of the signal will be completed and initially paid for by the developer. The City will reimburse the developer for 75% of their net costs. If the net signal cost is over $300,000, the city will reimburse the costs over $300,000 at 62.5%. A budget transfer is required from HURF Contingency (20503212-599991) into CIP Project number CIPST21035 - Reems and Peoria Traffic Signal to fund the project. 
 
The City’s experience is that new traffic signals can cost up to $500,000 to construct. The requested $375,000 will cover reimbursement to the developer should fees exceed the developer’s construction estimate. The City will seek repayment of these reimbursement funds from the City of Surprise and Maricopa County based on an IGA with the two agencies.
 
Attachments
Reimbursement Agreement
Exhibit A Traffic Signal Control Plans
Exhibit A


    

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