1. City of Las Cruces Resolution No. 10-317 Novation of Cooperative Project Agreement between the City and New Mexico Department of Transportation

2. BACKGROUND Novation: the substitution of a new legal obligation for an old one. Merriam-Webster Dictionary

3. Main Street Plaza I Completed Main Street (South) Main Street (North) Currently Under Construction Main Street Plaza Phase II Griggs Ave Las Cruces Ave Lucero Ave

4. BACKGROUND May, 2009 Resolution 09-278 approved cooperative agreement with the NMDOT for the Statewide Transportation Improvement Program (STIP) FY08/09 to fund: –$1,176,000.00 for right of way acquisition and reconstruction of Main Street from Griggs Ave. to Lohman Ave. May, 2010 Resolution 10-265 approved amending initial agreement. Agreement never signed by NMDOT. New Novation Agreement forwarded by NMDOT for approval. New agreement is essentially the same with minor format and time changes. No change in funding.

5. BACKGROUND The novation agreement requires that all NMDOT certifications be approved & submitted by Aug.15, 2010 prior to authorization of funding by FHWA. Anticipated start of construction for south project is the Summer of 2011. Start of south project will coincide with completion of north project.

6. Congressional Appropriations 2010 Federal Appropriation$1,176,000 *2010 Pending Federal Appropriation*$500,000 TOTAL$1,676,000 * Awaiting Signed Agreement

7. Council Options Option 1 –Accept and authorize entering into a Novation of Cooperative Agreement with NMDOT to fund the Main Street Reconstruction project in the amount of $1,176,000. Option 2 –Reject the Novation of Cooperative agreement and use other funds for the project. Option 3 –Reject the existing Novation to the Cooperative agreement and prior to submission.