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115412003063488 • • 86/25/2803 18:35:38 RM Filed 8 Recorded in Official Records of CHRULYN STRLEY PULRSKI COUNTY t RESOLUTION NO. 11,541 CIRCUIT /COUNTY CLERK Fees $29.08 2 3 A RESOLUTION TO APPROVE AN INTERLOCAL 4 COOPERATION AGREEMENT BETWEEN THE CITY OF LITTLE 5 ROCK, ARKANSAS, PULASKI COUNTY, ARKANSAS, AND THE 6 CITY OF NORTH LITTLE ROCK, ARKANSAS, FOR PURPOSES 7 OF FUNDING A LIGHT RAIL SYSTEM THAT WILL OPERATE 8 BETWEEN THE TWO CITIES; AND FOR OTHER PURPOSES. 9 10 WHEREAS, Act 430 of 1967, as amended, provides for interlocal 11 cooperation agreements between various political subdivisions of the State of 12 Arkansas, and 13 WHEREAS, the City of Little Rock, Arkansas, the City of North Little 14 Rock, Arkansas, and Pulaski County, Arkansas, (collectively referred to as the 15 "Governments') have cooperated in the development of a light rail system 16 between the two cities as a part of an overall intercity transit system (the "River 17 Rail ") , and 18 WHEREAS, the Central Arkansas Transit Authority ( "CATA ") has agreed 19 to oversee the development of such a system, and to accept federal grant monies 20 necessary to assist in the construction of the River Rail, and 21 WHEREAS, the Governments and CATA (collectively referred to as the 22 "Parties ") desire to formalize the agreement for funding of this project, 23 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF `ec4ycac ca ue„ r 24 DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: e r r 400 O 4 r [PACE 1 Of 81 M O , Resolution Inledocal Agreement for construction or River nail Project °Co , 0 0 1 Section 1. Duration of the Agreement. This Agreement, and any 2 amendments, shall be in full force and effect as long as the River Rail is under 3 development, construction, and operation. 4 Section 2. Purpose of the Agreement. The purpose of this Agreement is to 5 fulfill a determination by the Governments that the construction and operation 6 of the River Rail will provide a vital element of the public mass transportation 7 system operated by CATA, and will further secure and develop tourism and will 8 stimulate and enhance the economic growth and well -being of the cities of Little 9 Rock and North Little Rock and the County. 10 Section 3. Role of CATA. In order to fulfill the purpose of this 11 Agreement, the Governments have requested CATA act as their agent and take, 12 cause and perform any and all steps and actions, necessary, required or 13 desirable, to accomplish the planning, development, design, implementation, 14 construction, erection, installation, ownership, operation, repair, renovation, 15 equipping, and maintenance of the River Rail. 16 Section 4. Reservation to the Governments as to Appropriations. 17 Notwithstanding any other provision of this Agreement, each of the 18 Governments reserve to themselves the authority to review the annual budget 19 and operation plans that CATA proposes for the River Rail, and: (i) to approve 20 the annual assessment for CATA necessary to assure such operation of the River 21 Rail; or, (ii) to decide not to fund the individual Government's assessment for the 22 River Rail, in whole or in part, as proposed by CATA. 23 Section 5. Manner of Financing this Agreement. In addition to the 24 funding mechanisms and history of the River Rail as set forth in Exhibit A to this 25 Resolution, the Parties agree as follows: [PAGE 2 OF 81 Resolution Interloaal Agreement for Construction of River Rail Po ject 0 0 1 (a) To induce CATA to incur and fully perform the Authority's Rail 2 Undertakings, the Governments covenant and agree with each other and with 3 CATA and the Federal Transportation Administration ( "FTA "), that each of the 4 Governments has paid and will continue to pay one third (1 /3rd) of the River Rail 5 Undertakings, as that term is defined below, including but not limited to, (i) 6 paying 1 /3rd each of the sum of $3,595,923.00, representing the difference between 7 the Federal Rail Project Funding and the projected cost to complete the Rail S Project, (ii) together with such other and additional money as is necessary to 9 complete construction of the Rail Project and (iii) that each of the Governments 10 will perform their portion of the assurances given in connection with the Rail 11 Project Grants. For purposes of this Agreement, "River Rail Undertakings' shall 12 mean all incurred obligations, track work, contingency costs, and operation 13 expense, for Phase I of the River Rail project as more carefully described in 14 Exhibit A to this Resolution. 15 (b) (1) As to any additional Phase of the River Rail, one third (33 16 1/3 %) of the capital costs shall be financed by Pulaski County, one - fourth (25 %) 17 shall be financed by the City where the tracks are not located, and forty-one and 18 two- thirds percent (41 2/3 %) shall be financed by the City where the tracks are 19 located; 20 (2) As to any additional Phase of the River Rail, the operating 21 costs shall be financed by each of the Governments contributing one third (33 22 1/3 %) of the costs of operation; 23 (3) It is understood between the Governments that for the first 24 expansion of the River Rail beyond Phase II, the City of North Little Rock shall 25 be given deference, and the first right of refusal, to locate this phase of the project 26 within the corporate limits of the City of North Little Rock. [PAGE 3 OF 81 Resolmion Inter; Agreement for Construction of River Rail Project 0 0 1 Section 6. Distribution of Assets Upon Complete or Partial Termination. 2 Although the Parties intend to operate the River Rail as a unified system, upon a 3 decision of the Parties to terminate this Agreement, then the assets of the River 4 Rail shall be divided as follows: 5 (a) The initial division will be in accordance with any provision of 6 federal law applicable because of the federal government grants to help build the 7 system, or to help to operate and maintain the system; 8 (b) All outstanding debts of CATA for the development, design, 9 construction, or operation of the system shall then be paid; 10 (c) Any remaining assets shall be divided between the 11 Governments with each individual government receiving one -third (33 1/3 %) of 12 the assets, or if it is impractical to so divide the remaining assets, by the sale of 13 the assets in accordance with any federal, state, or local laws or regulations, and 14 a similar division of the net proceeds of such sale. 15 Section 7. Authority to Amend this Agreement as Required. The Parties 16 shall have the authority to amend the terms and conditions of this Agreement as 17 necessary. 18 Section 8. Commitment to Make Appropriations. The Governments, to 19 the extent permitted by Arkansas law, commit that in furtherance of the this 20 Agreement they shall make and adopt such appropriations ordinances and 21 resolutions as are deemed necessary to carry out the agreements set forth herein 22 in the manner and time required by law. 23 Section 9. Effective Date of Agreement. The Parties shall considered 24 themselves bound by this Agreement upon the Date that the governing body of 25 each individual party has adopted a resolution in substantially the same form as 26 this resolution; provided, that the Parties understand this Agreement shall not be [PAGE 4 OF 81 Resolution tntedool Agreement for Construdion of River Rail Projed 0 0 I in full force and effect under Arkansas law until it has been reviewed by the 2 Attorney General of the State of Arkansas in accordance with the provisions of 3 Ark. Code Ann. § 25 -20 -104 (Michie Repl. 2002). 4 Section 10. Phases of the River Rail. For purposes of this Agreement, 5 and the discussions of the Parties to date, the following Phases are described as 6 follows: 7 (a) Phase I shall be the initial planning, engineering, and 8 development of the River Rail, including the purchase of the cars for the system, 9 and the construction of a storage barn in North Little Rock, Arkansas, the 10 acquisition of right -of -way, the construction of track over the Main Street Bridge 11 across the Arkansas River, and the initial laying of track; 12 (b) Phase II means the extension of the River Rail in the City of 13 Little Rock, Arkansas, to and including an extension along 3rd Street to the Heifer 14 International headquarters site; 15 (c) Additional Phases shall be numbered and named as agreed 16 upon by the Parties. 17 Section 11. Mayor and Clerk Authorized to Execute Formal Agreement. 18 The Mayor and City Clerk are authorized to execute a formal agreement with 19 Pulaski County, Arkansas, the City of North Little Rock, Arkansas, and CATA 20 that complies with the terms and conditions set forth in this Resolution. 21 Section 12. Severability. In the event any title, section, paragraph, item, 22 sentence, clause, phrase, or word of this resolution is declared or adjudged to be 23 invalid or unconstitutional, such declaration or adjudication shall not affect the 24 remaining portions of the resolution which shall remain in full force and effect as 25 if the portion so declared or adjudged invalid or unconstitutional was not 26 originally a part of the resolution. [PAGE 5 OF 81 Resolufion loterlocal Agreement for Construction of River Rail Project 0 1 Section 13. Repealer. All laws and parts of laws inconsistent with the 2 provisions of this resolution are hereby repealed to the extent of such 3 inconsistency. 4 ADOPTED: June 17, 2003 5 ATTEST: APPROVED: 6 7 8 Na cy W od, City Clerk 9 APPROVED AS TO LEGAL FORM: 10 12 Thomas M. Carpenter V 13 City Attorney 14 // 15 // 16 // 17 // 18 // 19 // 20 21 // 22 23 // 24 // 25 // 26 // 27 // [PAGE 6 OF 81 Resolution Interlocal Agreement for Construction of River Rail Project Ji4bailey, Mayor 0 0 1 EXHIBIT A 2 Description of River Rail and Funding History to Date. K 4 The Parties made and entered into the following agreements with the FTA: 5 (a) AR -03 -0014, AR -90 -0047 and Appropriated but not Funded STP, HHP 6 and FY 03 §5309 and FY 03 Earmark,hereinafter referred to as the "Rail Project 7 Grants "; which Rail Project Grants evidence an agreement by FTA to pay to the 8 Authority up to $15,539,875.00 of the projected total cost expected to be incurred 9 in connection with construction of the Rail Project, hereinafter referred to as the 10 "Federal Rail Project Funding "; and, 11 (b) CATA proceeded with the planning, design and construction of the 12 Rail Project and made and entered into the following, with approved change 13 orders as of March 20, 2003, to -wit: 14 1) Agreement for Preliminary Engineering 15 Services (which has been fully performed and paid): $259,032.00 16 2) Agreement for Final Engineering Design 17 Services (which has been fully performed and paid): $1,288,000.00 18 3) Agreement for Manufacture and Delivery of Three 19 (3) Trolley Cars, which upon completion cost: $2,567,060.00 20 4) Contract for Construction of Trolley Barn $1,089,164.00 21 5) Contract for Construction of Modifications 22 to the Main Street Bridge $1,602,260.00 23 6) Agreement for Engineering Services 24 during construction phase $705,000.00 25 7) Agreement for Project Manager Services $225,000.00 26 8) Program Grants Management Services $149,000.00 [PAGE 7 OF 81 Resolution Interlocal Agreement for Construction of River Rail Project C I the foregoing totaling $7,884,516.00. 2 (c) To complete construction of the Rail Project the Authority has (i) 3 received a Bid in response to its Invitation To Bid Number 2002 -07 which Bid, if 4 awarded by the 151h day of April, 2003, would result in a Contract for the 5 Construction of the Trackwork and Overhead Catenary System for the Rail 6 Project at a Contract Price of $10,980,000.00, hereinafter referred to as the 7 "Trackwork Contract ", and (ii) budgeted the sum of $635,000.00 for S contingencies, hereinafter referred to as the "Contingencies Costs" (the 9 Trackwork Contract and Contingencies Costs being herein collectively referred 10 to as the "Remaining Phase I Projected Costs'; and, 11 (d) In addition to the Remaining Phase I Projected Costs to complete 12 construction of the Rail Project, the Authority has projected that the initial annual 13 operating cost for the Rail Project will be approximately $400,000.00, however it 14 is acknowledged that the actual operating cost may vary widely from that 15 projection (the cost of operating and maintaining the River Rail). 16 17 18 19 // 20 // 21 22 // 23 // 24 // 25 // 26 [PAGE 8 OF 8] Resolution Interlocal Agreement for Construction of River Rail Project