ITEM 4.1 MNDOT agreementIV
ots111.r o
MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Public Works
Ron Wagner, City Engineer
January 12, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Ron Wagner, City Engineer
Lori Johnson, City Administrator
4.1
AGENDA ITEM DETAILS
RECOMMENDATION:
City Staff recommends approval of Resolution #15-04 and signing of an agreement with MNDOT which
allows for MNDOT to act as the City's agent in accepting federal aid in connection to the 70th Street
Project and the City advance construction prior to Federal funding becoming available.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
MNDOT requires cities to enter into agreements authorizing MNDOT to receive and disburse
transportation related federal funds. This agreement also allows the City to advance the construction of
the project prior to the availability of the federal funds. The City is agreeing to pay any construction
costs prior to the federal funds becoming available October 1, 2015 and that any portion above the
federally eligible $800,000 amount will be paid by the City. The City will be using State Aid and county
funds to pay the remainder of the project costs.
SUPPORTING DOCUMENTS: X ATTACHED NONE
• Letter from MNDOT
• MNDOT Agreement No. 07453 — State of Minnesota Agency Agreement
between the MNDOT and the City of Otsego for Federal Participation in Advance Construction
for S.P. 217-112-002 and 086-637-033; MP STPM 8615(153)
• Resolution 2015-04
MOTION:
Motion to Approve Resolution 2015-04 and enter into an agreement with MNDOT which allows for
MNDOT to act as the City's agent in accepting federal aid in connection to the 70th Street Project and
advance construction prior to Federal funding becoming available.
BUDGET INFORMATION
FUNDING:
Federal Aid
State Aid
County Funds
ACTION TAKEN
BUDGETED: XYES
M
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
�"Esor
oleyo Minnesota Department of Transportation
A 'a State Aid for Local Transportation
395 John Ireland Boulevard, MS 500
Op -rV y, Saint Paul, MN 55155
December 30, 2014
Ron Wagner
Otsego City Engineer
3601 Thurston Avenue
Anoka, MN 55303-1063
SUBJECT: SP 217-112-002 and 086-637-033, STPM 8615(153))
Martin Farms Avenue
Agency Agreement No. 07453
Dear Mr. Wagner:
Attached are three copies of the agency agreement between the City of Otsego and
MnDOT, which allows for MnDOT to act as the City's agent in accepting federal aid in
connection with the above referenced project.
This agreement is for Advance Construction, because you wish to begin construction
of the project prior to the year it is designated in the STIP, City of Otsego. The project
will be converted to "real" funds in Federal fiscal year 20FY or sooner as funds are
available.
Please review and if approved, have all three copies signed. A City Council resolution
similar to the example attached, must be passed. The certified resolution should then
be placed as the last page in each of the three copies of the agreement. Please
verify that the person/title authorized to sign as stated in the resolution, corresponds
to the signature (person/title) on the signature page. Please return all three copies of
the agreement to me for MnDOT signatures. A fully executed copy will be returned to
you. If you have any questions or need any revisions, please feel free to contact me
at 651.366.3822.
Sincerely,
eyn,tte Roshell, PE
Proj8ct Development Engineer
Enclosures
cc: Kelvin Howieson--DSAE
File
E MnDOT Agreement No. 07453
STATE OF MINNESOTA AGENCY AGREEMENT
BETWEEN
DEPARTMENT OF TRANSPORTATION
AND
CITY OF OTSEGO
FOR FEDERAL PARTICIPATION IN ADVANCE CONSTRUCTION
FOR
S.P. 217-112-002 and 086-637-033; M.P. STPM 8615(153))
This agreement is entered into by and between City of Otsego ("City") and the State
of Minnesota acting through its Commissioner of Transportation ("MnDOT"),
Agency Agreement No. 99957 which has been executed between the City and
MnDOT, appoints MnDOT as the City's agent to receive and disburse transportation related
federal funds, and sets forth duties and responsibilities for letting, payment, and other
procedures for a federally funded contract let by the City; and
Pursuant to Minnesota Statutes Section 161.36, the City desires MnDOT to act as
the City's agent to accept and disburse federal funds for the construction, improvement, or
enhancement of transportation financed in whole or in part by federal funds; and
The City is proposing a federal aid project to construct roadways and trail
improvements in the Martin Farms Avenue area to Odean Avenue, hereinafter referred to as
the "Project"; and
The Project has been determined to be eligible for the expenditure of federal aid
funds and is programmed in the approved federally approved STIP for the fiscal year 2016;
and the project is identified in MnDOT records as State Project 217-112-002 and 086-637-
033, and in Federal Highway Administration ("FHWA") records as Minnesota Project STPM
8615(153)); and
The City desires to proceed with the construction of the project in advance of the
year it is programmed for the federal funds; and
It is permissible under Federal Highway Administration procedures to perform
advance construction of eligible projects with non-federal funds, with the intent to request
federal funding for the federally eligible costs in a subsequent federal fiscal year, if sufficient
funding and obligation authority are available; and
The City desires to temporarily provide City State Aid and/or other local funds in lieu
of the federal funds so that the project may proceed prior to the fiscal year designated in the
STIP; and
MnDOT requires that the terms and conditions of this agency be set forth in an
agreement.
(MI]DOT Agreement No. 07.153)
P•r_c I
THE PARTIES AGREE AS FOLLOWS:
DUTIES OF THE CITY.
A. The City will let a contract and construct the Project in accordance with
Agency Agreement No. 99957. Payment provisions for federally eligible
costs will be as stated herein.
B. It is estimated that the total cost of the Project is $ 3,722,913 and that the
anticipated federal funding will be $ 800,000. The remaining share will be
paid by the City.
C. The City will pay any part of the cost or expense of the Project that is not paid
by federal funds.
D. Request for reimbursement of the federal aid share of the federally eligible
costs can be made any time after the work is completed, however payment
may not be made until after October 1, 2015. It could be earlier if funding and
obligation authority are available (subject to the Area Transportation
Partnership (ATP) policy).
E. If the project is converted to federal funding before completion and final
acceptance, requests for reimbursement will occur as partial estimates in
accordance with Agency Agreement No. 99957.
F. Under Minnesota Statutes § 16C.05, subd. 5, the City's books, records,
documents, and accounting procedures and practices relevant to this
Agreement are subject to examination by the State and the State Auditor or
Legislative Auditor, as appropriate, for a minimum of six years.
DUTIES OF MnDOT.
A. MnDOT will make the necessary requests to the FHWA for authorization to
use federal funds for the Project and designation as an Advance Construction
project.
B. MnDOT will request the conversion of the Project to federal funding of eligible
costs, when funding and obligation authority are available.
C. At such time that the project is converted to federal funding and such funding
is received by MnDOT, MnDOT will reimburse to the City the federal aid
share of the federally eligible costs, previously provided by the City.
Reimbursement for City State Aid funds used in lieu of federal funds, will be
deposited in the City's State Aid Account. Reimbursement for other City
funds used in lieu of federal funds will be forwarded to the City.
III. AUTHORIZED REPRESENTATIVES. Each authorized representative will have
responsibility to administer this agreement and to ensure that all payments due to the
other party are paid pursuant to the terms of this agreement.
(b1nDOT Agreement No. 07453)
Page 2
A. The City authorized representative is Ron Wagner, Otsego City Engineer,
3601 Thurston Avenue, Anoka, MN 55303-1063, phone 763-427-5860, or his
successor.
B. MnDOT's authorized representative is Lynnette Roshell, Minnesota
Department of Transportation, State Aid for Local Transportation, 395 John
Ireland Boulevard, Mail Stop 500, St Paul, MN 55155, phone 651-366-3822,
or her successor.
IV. TORT LIABILITY. Each party is responsible for its own acts and omissions and the
results thereof to the extent authorized by law and will not be responsible for the acts
and omissions of any others and the results thereof. The Minnesota Tort Claims Act,
Minnesota Statutes Section 3.736, governs MnDOT liability.
V. ASSIGNMENT. Neither party will assign or transfer any rights or obligations under
this agreement without prior written approval of the other party.
VI. AMENDMENTS. Any amendments/supplements to this Agreement must be in
writing and be executed by the same parties who executed the original agreement,
or their successors in office.
VII. TERM OF AGREEMENT. This agreement will be effective upon execution by the
City and by appropriate State officials, pursuant to Minnesota Statutes Section
16C.05, and will remain in effect for five (5) years from the effective date or until all
obligations set forth in this agreement have been satisfactorily fulfilled, whichever
occurs first.
VIII. TERMINATION. This agreement may be terminated by the City or MnDOT at any
time, with or without cause, upon ninety (90) days written notice to the other party.
Such termination will not remove any unfulfilled financial obligations of the City as set
forth in this Agreement. In the event of such a termination the City will be entitled to
reimbursement for MnDOT-approved federally eligible expenses incurred for work
satisfactorily performed on the Project to the date of termination subject to the terms
of this agreement.
Remainder of this page left intentionally blank
(MnDOT Agrectnent No. 07453)
Page 3
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
intending to be bound thereby.
CITY
City certifies that the appropriate person(s)
have executed the contract on its behalf as required
by applicable resolutions, ordinances, or charter
provisions
By:
Date:
Title:
By:
Date:
Title:
Page 4
DEPARTMENT OF TRANSPORTATION
By:
Title: Director _
State Aid for Local Transportation
Date:
COMMISSIONER OF ADMINISTRATION
0
Date:
(MnDOT Agreement No. 07453)
RESOLUTION NO. 2015-04
RESOLUTION FOR AGENCY AGREEMENT
THIS RESOLUTION, passed this 12th day of January, 2015, by the City of
Otsego in Wright County, Minnesota.
BE IT RESOLVED, that pursuant to Minnesota Stat Sec. 161.36, the Commissioner of
Transportation be appointed as Agent of the City of Otsego to accept as its agent,
federal aid funds which may be made available for eligible transportation related
projects.
BE IT FURTHER RESOLVED, the Mayor, Jessica Stockamp and the City Clerk, Tami
Loff are hereby authorized and directed for and on behalf of the City to execute and
enter into an agreement with the Commissioner of Transportation prescribing the terms
and conditions of said federal aid participation as set forth and contained in "Minnesota
Department of Transportation Agency Agreement No. 07453", a copy of which said
agreement was before the City Council and which is made a part hereof by reference.
*Titles of persons authorized to sign on behalf of the City*
City of Otsego Mayor, Jessica Stockamp
City of Otsego City Clerk, Tami Loff
Adopted by the council this 12th day of January 2015.
Motioned By:
Seconded By:
All in Favor:
Those Opposed:
Jessica Stockamp, Mayor
Tami Loff, Clerk
STATE OF MINNESOTA
COUNTY OF WRIGHT
I hereby certify that the foregoing Resolution is a true and correct copy of the Resolution
presented to and adopted by the City of Otsego at a duly authorized meeting thereof
held on the 12th day of January, 2015 as shown by the minutes of said meeting in my
possession.
Tami Loff, Clerk
Notary Public
My Commission expires
(SEAL)