ITEM 3.11 Fund Agreementrel-11-1-0
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DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
January 13, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Engineer Wagner
City Attorney Kendall
3.11
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the Funding Participation and Construction
Agreement between the City and Wright County.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
Wright County is actively preparing to make improvements to County State Aid Highway (CSAH) 39 from
CSAH 42 (Parrish Avenue) to Odean Avenue. The improvement project includes: roadway expansion to four
lanes, roundabouts, trail construction, drainage, and other miscellaneous improvements.
The cost participation and allocation between the County and the City of Otsego are consistent with the
Cost Participation Policy adopted by the County in 2014. The most recent estimates from the County,
indicate the cost share assigned to the City being approximately $1.44 million, not including engineering
overhead or right-of-way acquisition. For reference, the total project costs are approximately $8.08 million.
City Attorney Kendall and City Engineer Wagner have reviewed this agreement, with no comments.
SUPPORTING DOCUMENTS ATTACHED:
* Funding Participation and Construction Agreement (No. 19-55)
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: ;
Motion to approve the Funding Participation and Construction Agreement between Wright County and the
City of Otsego.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund #414 — Capital Improvements Revolving Yes
AGREEMENT NO. 19-55
WRIGHT COUNTY
DEPARTMENT OF HIGHWAYS
FUNDING PARTICIPATION AND CONSTRUCTION AGREEMENT
BETWEEN
THE COUNTY OF WRIGHT
and
THE CITY OF OTSEGO
For
CONSTRUCTION OF IMPROVEMENTS FOR:
County State Aid Highway (CSAH) 39 — (locally known as 951 Street NE)
CP 086-039-182
FOUR LANE EXPANSION PROJECT
GRADING & BASE, SURFACING, ROUNDABOUTS,
& BIKE TRAIL/PATHWAY IMPROVEMENTS
December 3, 2019
COOPERATIVE AGREEMENT
THIS AGREEMENT, made and entered into by and between the County of Wright, Minnesota,
acting by and through its County Board of Commissioners hereinafter referred to as the "County" and the
City of Otsego, Minnesota, acting by and through its City Council, hereinafter referred to as the "City".
WITNESSETH:
WHEREAS, plans and specifications will be prepared by the County for the improvement of
County State Aid Highway (CSAH) 39, known locally as 95th Street NE, from approximately Odean
Avenue to CSAH 42, and said construction plans are designated as CSAH 39 Improvements, and the
length of the improvement is approximately 1.25 miles, and
WHEREAS, CSAH 39 provides east -west mobility and connectivity through the northern part of
Wright County from Monticello to State Highway 101 in Otsego. Increased population has resulted in
higher traffic volumes along the CSAH 39 corridor that requires addressing safety, access, and mobility
needs of this corridor. The improvements to CSAH 39 are centered on providing safety improvements
while increasing the efficiency of the traffic operation and will include transforming the rural two-lane
highway to a divided four -lane urban highway, and
WHEREAS, the improvements are consistent with the short-term improvements identified on the
County's list of Local Option Sales Tax Projects (approved by the County Board in June of 2017) and the
County's current Highway Five Year Construction Plan. The County's Cost Participation Policy, dated
May 2014 will govern the cost participation between the City and County for the project, and
WHEREAS, The proposed improvements indicated above will be included in one (1) contract to
be administered by the County and will consist of, but is not limited to, grading & base construction,
roundabout construction, bituminous surfacing, bike trail/pathway construction, storm sewer/drainage
improvements, and other miscellaneous improvements within the corporate limits of Otsego. It is planned
that the construction will occur over two (2) construction seasons (CSAH 42 to Page Ave. in 2020; and
Page Ave. to Odean Ave. in 2021), and
NOW THEREFORE, IT IS MUTUALLY AGREED AND UNDERSTOOD THAT:
Article 1
The County shall construct or cause to be constructed an improvement project including,
roadway, roundabout, bike trail/pathway, drainage, and other miscellaneous improvements upon or along
CSAH 39 (95th Street NE) within the City limits in accordance with the approved plans and specifications
as prepared by the County, and on file at the office of the County Engineer. The plans will be prepared in
accordance with MnDOT State Aid standards.
Article 2
It is agreed that upon completion of and acceptance of the work as to quantity and quality by the
County, the County Engineer shall determine the actual amount that the County will invoice the City in
accordance with the following funding participation schedule:
1. CSAH 39 (95"' Street NE) Construction Costs:
The cost participation is consistent with the Cost Participation Policy adopted by the County
Board on May 6, 2014, and shown in the Appendix of this Agreement. The County will acquire
necessary right-of-way for this project.
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2. Storm Sewer Costs:
It is agreed that upon completion of the project, the City will own/maintain the storm sewer
system and storm water ponds along CSAH 39 which includes meeting the MS4 requirements of MPCA.
This ownership/maintenance shall not commit the City to replacing or relocating any portion of said
storm sewer made necessary as a result of a future reconstruction of CSAH 39. Funding for the storm
sewer system & ponding will be split between the City and County at 50% each.
3. Bituminous Trail/Pedestrian Pathway:
The County will acquire the necessary right-of-way for the construction of this project, including
any additional right-of-way for the City trail, if needed. The City will reimburse the County all right-of-
way costs associated with the trail. This includes, but is not limited to permanent easement, temporary
easement, damages due to loss of trees/shrubs, legal fees, etc. The City will own and maintain the trail
after it is constructed. The trail will be subject to the requirements in the County's Right -of -Way
Ordinance for Management of the Public Right -of -Way Under the County's jurisdiction, for facilities
located within the highway right-of-way.
4. City Utilities/Landscaping,/Other:
It is agreed that all City utilities (watermain, sanitary sewer, etc.) and all landscaping items
requested by the City and included in the project will be subject to the County's Right -of -Way Ordinance
for facilities.
Engineering Costs:
The County will provide engineering services (with staff and/or consultants) for design, construction
administration and inspection of this project. The County will not participate in any engineering costs
incurred by the City that are necessary for the City to assess their portion of the project costs (Feasibility
Studies, hearings, legal expenses, etc.). The City will reimburse the County for engineering services for
the City's portion of the project based upon the following table. The final reimbursement will be computed
using the appropriate % below times the City's portion only of the contract construction cost.
From
$ 0 thru $50,000
up
to 18%
of City's Portion
Over
50,000 thru 100,000
up
to 16%
of City's Portion
Over
100,000thru 250,000
up
to 13%
of City's Portion
Over
250,OOOthru 500,000
up
to 11%
of City's Portion
Over
500,OOOthru Indefinite
up
to 10%
of City's Portion
The County shall prepare a preliminary estimate of construction cost for the project. The
preliminary cost estimate shall identify both the City's share and County's share of cost for the project
based upon this funding agreement. This preliminary construction cost estimate shall be attached to this
funding agreement.
It is intended that the work outlined above in Article Two is to be done by a contractor on a unit
price basis through a contract duly let by the County. At such time as the County awards a contract, the
County will prepare a new estimate of the City's share of the construction cost based on the unit prices
bid by the County's contractor. A copy of such revised cost estimate will be forwarded to the City.
Article 4
The County shall be responsible for all field inspection of construction (including required testing
at intervals outlined in the latest MnDOT State Aid for Local Transportation Materials Control Schedule,
which is included in the project proposal), quantities, and contractor performance for the road
improvement project. Testing for highway construction items will be paid for by the County and testing
for all City items (all City utility, trail, City requested landscaping, etc.) will be paid for by the City.
Article 5
The County shall invoice the City for 95% of the City's cost share after the construction contract
is awarded by the County. The remaining City share will be invoiced after the final completion construction.
The City shall reimburse the County within 45 days of receipt of the invoice from the County.
Upon awarding the construction contract by the County, a copy of the bid schedule breakdown of
the City's portion of the project shall be forwarded to the City. Upon 100% completion of the work, the
County shall forward to the City a copy of a cost breakdown identifying the City's cost participation,
based on this agreement.
Article 6
The City shall take ownership of the trail/bikepath and be responsible for all associated
maintenance and future repairs of the trail/bikepath. The City is required to fill out a R/W Permit for the
trail/pathway within the CSAH 39 right-of-way. The County will waive the permit fee since the
construction will be in conjunction with this project.
Article 7
The City shall indemnify, save and hold harmless the County and all of its agents and employees
of any form against any and all claims, demands, actions or causes of action of whatever nature or
character arising out of or by reason of the execution or performance of the work provided for herein to
be performed by the City. The County shall indemnify, save and hold harmless the City and all of its
agents and employees of any form against any and all claims, demands, actions or causes of action of
whatever nature or character arising out of or by reason of the execution of performance of the work
provided for herein to be performed by the County.
Article 8
It is further agreed that any and all full-time employees of the County and all other employees of
the County engaged in the performance by any work or services required or provided for herein to be
performed by the County shall be considered employees of the County only and not of the City and that
any and all claims that may or might arise under Workmen's Compensation Act of the State of Minnesota
on behalf of said employees while so engaged and any and all claims made by any third parties as a
consequence of any act or omission on the part of said County employees while so engaged on any of the
work or services provided to be rendered herein shall be the sole obligation and responsibility of the
County.
It is further agreed that any and all full-time employees of the City and all other employees of the
City engaged in the performance by any work or services required or provided for herein to be performed
by the City shall be considered employees of the City only and not of the County and that any and all
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claims that may or might arise under Workmen's Compensation Act of the State of Minnesota on behalf
of said employees while so engaged and any and all claims made by any third parties as a consequence of
any act or omission on the part of said City employees which so engaged on any of the work or services
provided to be rendered herein shall be the sole obligation and responsibility of the City.
Article 9
Before this agreement shall become binding and effective it shall be approved by the City
Council of Otsego and it shall also be approved by the County Board and such other officers as law may
provide.
IN TESTIMONY WHEREOF the parties have duly executed this agreement by their duly
authorized officers and caused their respective seals to be hereunto affixed.
COUNTY OF WRIGHT
Recommended for Approval:
County Engineer
APPROVED:
Chair, County Board
County Administrator
County Attorney
CITY OF OTSEGO
Recommended for Approval:
City Engineer
APPROVED:
Mayor, City Council
City Administrator
City Attorney
Date Date