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Council authorizes ODOT-led agreement for Loveland Madera Road Phase 2; USPS right-of-way issue could push project to 2028
Summary
The council voted 7–0 to authorize an ODOT Local Public Agency agreement for the Loveland Madera Road Phase 2 project. Staff said the project’s scope is about $6.2 million with a federal cap near $4.6 million, leaving roughly a $2.0 million local gap that may be largely covered by OPWC funding; a right-of-way matter with the U.S. Postal Service may delay the project until 2028.
The Loveland City Council unanimously approved a resolution to authorize the city manager to execute an ODOT-led Local Public Agency (LPA) agreement for the Loveland Madera Road Phase 2 project.
Staff described the project scope as originally estimated around $6.2 million with a federal funding cap of about $4.6 million, leaving an approximate $2.0 million shortfall for which staff has applied for OPWC funding. Staff reported that OPWC indicated by phone that the project is likely to receive funding covering approximately 51% of the local gap, which would markedly reduce the city’s out-of-pocket share.
Council discussion centered on schedule risk created by right-of-way acquisition from the U.S. Postal Service. Staff explained that when a federal agency sees a recorded right-of-way acquisition involving the Postal Service, ODOT may exercise authority that could delay their decision by up to 12 months; that pause has created the potential for a 2028 start rather than the earlier schedule. Council members asked for clarification about whether the 12-month pause had been triggered; staff replied the formal ODOT-triggered contact with USPS had not yet occurred.
Staff also noted the estimate at Stage 2 includes a contingency of roughly 25% to cover inflation and other unknowns tied to the 2028 schedule, and that utility relocations discovered during design increased the estimated cost beyond the initial scope.
The resolution to execute the LPA was called and carried by roll call, 7 to 0. Staff will continue coordination with ODOT and OPWC and will return updates as agreements and right-of-way matters are finalized.
Next steps: staff will follow up with USPS and ODOT, confirm OPWC funding in writing, and refine the final scope and schedule for council consideration.
