09-12-95 PRMEMO
TO: Otsego Parks Commission
FROM: Merland Otto
DATE: September 12, 1995
STATUS OF ISTEA GRANTS
FY 96
On September 5th, we received Mn/DOT review comments on the Project
Memorandum (submitted 2/16/95). The comments are not extensive but do require
a revised schedule, a description of design elements, and change to metric units.
After revising, ten copies of the Project Memorandum need to be re -submitted.
I also spoke with Mike Tardy, District State Aid Engineer with MnDot, to get a better
idea of cash flow for budget purposes:
Salient points are:
Sometime around June 1, 1996 Mn/DOT would request the City's share for the
project ($61,525.).
• Mn/DOT administers project funds.
• Mn/DOT wants the project bid as one, not two projects.
• Land would need to be secured prior to award of contract.
• They anticipate a policy change in next 2-3 months that allows for costs within
MSA ROW's for Bike Trail Construction. Engineering fees for the ISTEA project
that can be attributed to MSA improvement could then be funded with MSA
funds. Roughly speaking this would be about half of the engineering costs
(est. @ $37,800 in application).
Quandary
The FY '96 project of $246,100 includes a Federal share of $184,575 plus:
61,525. Local share of construction
23,500. Land Acquisition
49,220. *Engineering (20% of construction)
$134,245. Total City Cost
* Approximately 1/2 could be funded w/MSA funds.
The City does not, at this time, have $134,000 to fund the project.
Options
1) No build Alternative - withdraw from grant program - give up $184,000. In all
likelihood would probably lose FY '98 ISTEA project since it builds on FY '96.
2) Bond for local share FY 96, FY 98 projects.
3) Defer project for FY 97 letting, assuming money would be available in early
1997. Project would need to be completed by October 1, 1997. FY '98 then
immediately follows.
4) Revise project to one of the following options:
Existing
Total Construction Project:
$246,100.
ISTEA
184, 575.
City Construction Costs
61,525.
Engineering Fees (20%)
49,220.
Land
23,500.
Total City Costs:
$134,245.
A) Reduce construction by cost of Engineering in original Application.
$246,100 - 37,800 = $208,300.
ISTEA FUNDS 156,225.
City Construction Costs 52,075.
Engineering Fees (20%) 41,660.
Land 23,500.
Total City Costs: $117,235.
B) Reduce Project by reducing original City cost of $61,525 by $37,800
originally projected engineering costs.
City share would then be $23,725. If this is 25% of Project construction,
the project would be $94,900. This would be less than the minimum
$100,000 project and would NOT be a viable option.
C) Use MSA Funds for engineering and meet obligations of total construction
(existing project of $246,100).
Local share outside of MSA funding would be approximately $134,250 -
25,000 = $109,250.
D) Use MSA funds for engineering and meet obligations of reduced project
(option A - project of $208,300).
City share outside of MSA funding would be approximately $117,235 -
25,000 = $92,235.
A copy of the project schedule excepted from the Project Memorandum is attached.
Action Required:
The City Council needs to make a decision on whether and how to meet the City's
share of the project.
If appropriate, the project schedule needs to be revised prior to re -submittal of the
Project Memorandum.
The Project Memorandum needs final approval prior to beginning negotiations for land
acquisition.
The PRC should make a recommendation to City Council for their consideration.
This application was for $317,700 with $238,275 Federal and $79,425 City share
plus engineering and land acquisition.
File: OT73.MEM
V. SCHEDULING AND PROJECT MANAGER
Schedules
The following project schedule is proposed:
ACTIVITY
Project Memorandum
PS&E
Land Acquisition for Offroad Trails (Phase II)**
Letting Date
Phase I Construction Start
Substantial Completion Phase I
Phase II Construction Start
Substantial Completion Phase II
Construction Completion
*Dependent on ISTEA funding availability.
**This can be accelerated to single phase if necessary.
Project Manager
DATE
February 14, 1995
May 15, 1995
September 15, 1995
June 30, 1995*
July 30, 1995*
September 15, 1995
July 15, 1996
October 30, 1996
November 15, 1996
Name
: Merland Otto
Title
: Landscape Architect
Address
: Hakanson Anderson Associates, Inc.
222 Monroe Street
Anoka, MN 55303
Phone
: (612) 427-5860
3
9/30
CITY OF
TSEGO
8899 Nashua Avenue N.E. ON THE GREAT RIVER ROAD (612) 441-4414
Elk River, MN 55330 Fax: (612) 441-8823
September 27, 1995
lr.John Bolduc
9070 Ochoa Circle NE
Otsego, ININ 55330
RE: YOUR LETTER OF RESIGNATION FROM THE
PARK AND RECREATION COMMISSION
Dear .John:
This letter is to thank you for your interest in the Park and Recreation Commission
and for your time to apply and interview for the position.
The City Council considered your letter at the Council Meeting of September 25,
1995 and approved your resignation. The Council would like to thank you
personally for being a civic minded citizen and if your schedule permits, please
consider applying for a position on one of our Boards or Commissions at a future
date.
Sincerely,
CITY OF OTSEGO
Norman F Freske, Mayor
eb
CC: Mayor and Council
Otsego Boards and Commissions
Otsego Staff
Professional Staff
File