ITEM 5.1 MacIver MSA FundsCITY OF
0 t� ezo
MINNESOTA Cy
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
November 13, 2017
PRESENTER(S)
REVIEWED BY:
ITEM #:
City Engineer Wagner
City Administrator Flaherty
5.1
AGENDA ITEM DETAILS
RECOMMENDATION:
Approve Resolution 17-94 Advancing Municipal State Aid Street Funds for construction of 85 th St and
Maciver Ave Extensions
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND USTIFICATION:
City council has determined construction of 85 1h St and Maclver Ave (state aid streets) is a priority to be
completed in 2018 due to the ever increasing traffic on local streets (83 rd St, 80th St, and Mason Ave) and
the opening of the Prairie View School. Due to the availability of funds within the Municipal State Aid
account, municipalities are allowed to advance state aid funds up to five times their annual construction
allotment. Basically, this borrowing ahead would be reimbursed by the City using future state aid
construction allotments until the advancement is paid back. Financially, this is the best option for the City
as other options such as bonding include soft costs and interest payments while advancement of state aid
funds amounts to a 0% interest loan with no soft costs.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2017-94
• Engineers Estimate
• Location Map
• Request to Reserve Advance Funding
• Otsego State Aid Account Summary
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2017-94 requesting Municipal State Aid Street Funds Advancement
BUDGET INFORMATION
FUNDING: BUDGETED:
State Aid Yes
RESOLUTION NO. 2017-94
MUNICIPAL STATE AID STREET FUNDS ADVANCE RESOLUTION
WHEREAS, The Municipality of Otsego is planning to implement Municipal
State Aid Street Project(s) in 2018 which will require State aid funds in excess of
those available in its State Aid Construction Account, and
WHEREAS, said municipality is prepared to proceed with the construction
of said project(s) through the use of an advance from the Municipal State Aid
Street Fund to supplement the available funds in their State Aid Construction
Account, and
WHEREAS, the advance is based on the following determination of
estimated expenditures,
Account Balance as of date 8/15/2017
Less estimated disbursements:
Project # 217-112-02
Project # 217-102-08
Project # 217-102-09
Project # 217-113-01
$430,788.54 actual
$365,000.00 est.
$2,000,000.00 est.
$1,150,000.00 est.
Total Estimated Disbursements
$1,456,380.00
(Final 7 oth St.)
(85 th St. Reclaim)
(85 th St)
(Maciver Ave)
$3,945,788.54
Advance Amount (amount in excess of acct balance) $2,489,408.54
WHEREAS, repayment of the funds so advanced will be made in
accordance with the provisions of Minnesota Statures 162.144, Subd. 6 and
Minnesota Rules, Chapter 8820.1500, Subp. 10b, and
WHEREAS, the Municipality acknowledges advance funds are released on
a first come -first -serve basis and this resolution does not guarantee the availability
of funds.
NOW, THEREFORE, BE IT RESOLVED THAT THE COMMISSION OF
TRANSPORTATION, be and is hereby requested to approve this advance for
financing approved Municipal State Aid Street Project(s) of the Municipality of
Otsego in an amount up to $2,489,408.54. 1 hereby authorize repayments from
subsequent accruals to the Municipal State Aid Street Construction Account of
said Municipality from future year allocations until fully repaid.
I HEREBY CERTIFY that the above is a true and correct copy of a
resolution presented to and adopted WHEREAS, the advance is based on the
following determination of estimated expenditures by the Municipality of Otsego,
County of Wright, State of Minnesota, at a duly authorized Municipal Council
Meeting held in the Municipality of Otsego, Minnesota on the 13 th day of
November, 2017, as disclosed by the records of said Municipality on file and of
record in the office.
Adopted by the City Council of the City of Otsego this 13 th day of November,
2017.
Motion By:
Second By:
All in Favor:
Those Opposed:
CITY OF OTSEGO
BY:
Jessica L. Stockamp, Mayor
ATTEST:
Tami Loff, Clerk
TY
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MINNESOTA g
2018 State Aid Project
85th Street 46'Wide Street Construction
(Nashua Ave to Madver Ave)
Estimated
Item Description
2" Wear Course
5220.006
Tons
$
70.00
$
365,400.42
2" Base Course
6525.0075
Tons
$
65.00
424,125.49
3" Bit Path
1876.875
Tons
$
75.00
$
140,765.63
4" Concrete Sidewalk
0
SF
$
4.50
$
-
Curb Removal
1000
LF
$
3.50
$
3,500.00
Remove Pavement
2316.6667
SY
$
4.00
$
9,266.67
Mill 11/2" Deep
50
SY
$
5.00
$
250.00
Tack Oil
2320.0027
Gallons
$
3.00
$
6,960.01
Class 3/4 Agg Base
49724.5
Tons
$
12.50
$
621,556.25
Class 5 Agg Base
13957.432
Tons
$
7.50
$
104,70.74
Bituminous (Driveways)
8
Ton
$
100.00
$
800.00
Class 5 (Driveways)
88
Ton
.$
15.00
$
1,320.00
Common Excavation
55752
CY
$
4.00
$
223,008.00
Soil Corrections
50176.8
CY
$
5.00
$
250,884.00
Erosion Control
1
LS
$
25,000-00
$
25,000.00
Seeding
5.914674
Acre
$
200.00
$
1,182.93
Curb and Gutter
19118.4
LF
$
12.00
$
229,420.80
Storm Sewer
1
LS
$
450,000-00
$
450,000-00
Signage
1
LS
$
3,500.00
$
3,500.00
Striping
38784
LF
$
0.10
$
3,87L8L40
Mobilization
Construction Total
ROW
15.75
Acres
$
85,964.98
30,000.00
$
$
$
85,964.98
2,951,464.31
472,363.64
Wetland Bank Purchase
0.2
Acres
$
21,780.00
$
4,356.00
Overhead
MiA
15%
$
JL*�'
442,71L9L65 J
I .
Hakanson
UlAnderson
TY
4,1ro Ot e OF 0
MINNESOTA g
2018 State Aid Project
Madver Avenue Street 46'Wide Street
Construction
(80th Street to 85th Street)
Hakanson
I-IdAnderson
Estimated
Extended
Total
Item Description
Quantity
I
PTo
Cost
per Unit
r
Per Unit
2" Wear Course
'I
1513.71
n s
�!
$
710.00
$
105,959.70
2" Base Course
1892.1375
Tons
$
65.00
$
122,988.94
3" Bit Path
1876.875
Tons
$
75.00
$
140,765.63
4" Concrete Sidewalk
0
SF
$
4.50
$
-
Curb Removal
100
LF
$
3.50
$
350.00
Remove Pavement
0
SY
$
4.00
$
-
Mill 11/2" Deep
50
SY
$
5.00
$
250.00
Tack Oil
672.76
Gallons
$
3.00
$
2,018.28
Class 3/4 Agg Base
14419.231
Tons
$
12.50
$
180,240.39
Class 5 Agg Base
13957.432
Tons
$
7.50
$
104,680.74
Bituminous (Driveways)
Ton
$
100.00
$
-
Class 5 (Driveways)_
Ton
$
15.00
$
-
Common Excavation
18584
Cy
$
4.00
$
74,336.00
Soil Corrections
16725.6
CY
$
5.00
$
83,6 . 28.00
Erosion Control
I
LS
$
25,000.00
$
25,000.00
Seeding
1.72
Acre
$
200.00
$
343.03
Curb and Gutter
5544
LF
$
12.00
$
66,528.00
Storm Sewer
1
LS
$
150,000.00
$
150,000.00
Signage
I
LS
$
1,250.00
$
1,250.00
Striping
2585
LF
$
0.10
$
5.00
2,585.00
Mobilization
LS
$
31,827.71
$
9771
31,9"2771
$
1,092,751.41
Construction Total
ROW
Z.b/
I Acres
1 $
30,000-00
1 $
80,000.00
Wetland Bank Purchase
0
Acres
$
21,780.00
$
-
overhead
15%
5
163,912-71
n. 071-1 M
Hakanson
I-IdAnderson
TY OF
0
ot�
MINNESOTfg
46'Streets - Option 2
Statp Aid - CIP
Year
Fund Balance
Project
70th St SA Reimbursement #1
Estimated Cost
($104,3821
Projected Revenue
70th St SA Reimbursement #2
($258,929)
2014
$1,614,798
$493,335
Nashua Ave MS SA Reimbursement #1
($165,411)
70th St SA Reimbursement #3
($158,051)
70th St SA Reimbursement #4
($286,154)
2015
$1,421,360
$546,225
70th St SA Reimbursement #5
($794,850)
70th St SA Reimbursement #6
($442,509)
2016
$886,581
$560,677
70th St SA Reimbursement #7
($430,779)
85th St (Page to 84th St) Reclaim
($365,000)
2017
$1,004,749
$589,483
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Design
($100,000)
85th St (Nashua Ave to Mason Ave) ROW
($775,000)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($2,000,000)
2018
($76,547)
$590,890
85th St (Nashua Ave to Mason Ave)Design,
Observation, Staking and Contract Admin
($500,000)
2019
($1,985,657)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($2,100,000)
$620,434
2020
($3,465,223)
85th St (Nashua Ave to McIver Ave) &
Maciver Ave (80th to 85th) Construction
($200,000)
$651,456
2021
($3,013,767)
85th St (Nashua Ave to Page Ave)
Microsurface
($140,000)
$684,029
2022
($2,469,738)
No Scheduled Project Yet
$0
$718,230
2023
($1,751,508)
No Scheduled Project Yet
$0
$746,959
2024
($1,004,548)
No Scheduled Project Yet
$0
$776,838
2025
($227,711)
No Scheduled Project Yet
$0
$807,911
2026
$580,201
Queens Ave Reclaim
($300,000)
$840,228
2027 $1,120,428
Assumption on revenue of 5% increase per year based on population growth of City through 2022 then 4%
Project Costs of projects inflated for inflation at a rate of 3% per year
** City is allowed to advance encumber upto 5 times their annual allotment —
2,954,448.75
111712017C:\Users\Tami.OTSEGO\AppData\Locai\Microsoft\Windows\lNetCache\Content.outlook\AWONKCQK\2018 CIP State
Aid2018 CIP State Aid 1
REQUEST TO RESERVE ADVANCE FUNDING
The Municipality of Otsego requests that the amount of $2,489,408.54 be reserved from the
Municipal State Aid Street Construction Fund for the State Aid Projects listed below.
Project # 217-102-009
Project # 217-113-001
MUNICIPAL APPROVAL
A Municipal Council Resolution authorizing the advance funding is attached or has been
previously submitted.
Municipal Engineer
STATE AID APPROVAL
Construction funds in the amount of $
reserved rom the Municipal State Aid Street Construction Fund.
State Aid Finance
original retained in SAF Finance file, one copy to Municipal Engineer
Date
has been approved and
Date