ITEM 3.11 Resolution 18-740tCITY o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
November 13, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Flaherty
3.11
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RECOMMENDATION:
Approve Resolution 18-74 Advancing Municipal State Aid Street Funds for construction of 85th St and
MacIver Ave Extensions
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
City council has determined construction of 85th St and MacIver Ave (state aid streets) is a priority to be
completed in 2019 due to the ever increasing traffic on local streets (83`d 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 2018-74
• Request to Reserve Advance Funding
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2018-74 requesting Municipal State Aid Street Funds Advancement
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund #403 — Municipal State Aid for Construction Yes
RESOLUTION NO. 2018-74
MUNICIPAL STATE AID STREET FUNDS ADVANCE RESOLUTION
WHEREAS, The Municipality of Otsego is continuing construction of
Municipal State Aid Street Projects in 2019 which will require State Aid funds in
excess of those available in its State Aid Construction Account, and
WHEREAS, said municipality is prepared to continue with the construction
of said projects 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 10/29/2018
Less estimated disbursements:
Remainder Project # 217-102-009
2018 (tied) # 217-113-001
(To Be Submitted)
2019 Project # 217-102-009
(tied) # 217-113-001
Total Estimated Disbursements
$84,423.35
$554,377.50
$4,100,000.00
$4,654,377.50
Advancement Amount $4,569,954.15
(amount of disbursements in excess of acct balance)
Max Allowed Adv Amount (5 x $655,706) $3,278,530.00
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 $3,278,530.00. 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 13th day of
November, 2018, 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 13th day of November,
2018.
Motion By:
Second By:
All in Favor:
Those Opposed:
CITY OF OTSEGO
BY:
Jessica L. Stockamp, Mayor
ATTEST:
Tami Loff, Clerk
REQUEST TO RESERVE ADVANCE FUNDING
The Municipality of Otsego requests that the amount of $3,278,530 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.
Otsego City 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