ITEM 6.2TY Or-
ot C1 go
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT,
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
October 22., 2012
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
Andy MacArthur, City Attorney
6.2 Joint Powers Agreement
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend approval of the Joint Powers Agreement Between the City of Otsego and the City of Rogers
TH 101/ AH 144 Interchange Improvement Project (Agreement).
—Regarding
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACK GROU N D/J USTI F I CATI ON
In 2011 the City of Rogers requested that the City of Otsego participate financially in the upfront
planning costs for the TH101/CSAH144 interchange improvements. On June 13, 2011, the City Council
by resolution committed to funding $100,000 beca use of the benefit this improvement ha s to tsego's
residents. The resolution directed that Otsego enter into a joint powers agreement with Rogers for this
purpose.
This week Steve Stahmer., Rogers City Administrator, sent a Joint Powers Agreement for the interchange
project requesting that it be approved by Otsego as the project is proceeding. The project schedule
states that the bids will be let this December; construction will begin in the spring with completion
scheduled for 2014. Although the initial discussion contemplated Otsego's full $100,000 payment at the
time of bid letting, Rogers has agreed to change the payment structure to delay payment until a notice
to proceed has been issued to the contractor at which time one half of tsego's payment is due. The
other half is due when the project is substantially complete which will be sometime in 2014.
SUPPORTING DOCUMENTS; X Ei ATTACHED NONE
List;
0 Joint Powers Agreement Between the City of Otsego and the City of Rogers Regarding TH
101/C AH 144 Interchange Improvement Project
0 Design Drawing
0 Resolution 2011-30 A resolution related to formation of an agreement between the City of
Rogers and the City of Otsego
0 June 13, 2011, City Council minutes
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to approve the Joint Powers Agreement Between the City of Otsego and the City of Rogers
Regarding TH 101/ SAH 144 Interchange Improvement Project
BUDGET INFORMATION
FUNDING: BUDGETED: Xii YES
Included in the adopted CIP
NO
ACTION TAKEN
ci APPROVED AS REQUESTED o DENIED D TA13LED o OTHER (List changes)
COMMENTS:
JOINT POWERS AGREEMENT
BETWEEN THE CITY OF OTSEGO
AND THE CITY OF REBS
REGARDING TH 101 /C SAH 144
INTERCHANGE IMPROVEMENT PROJECT
THIS AGREEMENT made and entered into this 22 nd day of October, 2012, by and
between the city of Otsego ("Otsego") and the city of Rogers ("Rogers"), both of which are
municipal corporations under the laws of Minnesota.
RECITALS
WHEREAS, Otsego and Rogers desire to construct a grade separated interchange at the
intersection of TH 101 and CSAH. 144 (the "Project"); and
WHEREAS, the city of Otsego and the city of Rogers recognize the benefit of regional
planning and advocacy for transportation improvements through their contintied support of the
TH 10 1 and Interstate 94 Coalitions; and
WHEREAS, the construction of the TH 101 flyover of South Diamond Lake Road in
Rogers and construction of interchanges at CSAH 36, CSAH 37, CSAH 42 and CSAFI 39 in
Otsego have greatly improved the traveling safety and travel time of local business, school, and
residential traffic and the ability for commuter traffic to pass through and move more quickly to
esi
cities north of Rogers and Otsego; and
WHEREAS, the intersection. of TH 101 and CSAH 144 is the last at grade intersection
fo r TH 10 1 b etwe en I-94 and the city of E I k Diver; and
WHEREAS, future construction of an interchange at TH 101 and CSAH 144 would
improve safe and efficient travel for area residents, students within ISD 728 attending Hassan
Elementary School, Rogers Middle School and Rogers High School, and regional commuter
traffic by eliminating an at grade intersection; and
WHEREAS, MnDOT has awarded the city of Rogers $9,200,000 in Safety and Mobility
(SaM) funds towards construction of a grade separated interchange at TH 101 and CSAH 144
estimated to cost $22,000,000 and has committed to provide ffinding for other soft costs
including design and construction to complete this project; and
WHEREAS, the city of Rogers was awarded $7,000,000 in STP (Surface Transportation
Program) Federal Funds through the Metropolitan Councit for this project; and
I
WHEREAS, the proposed TH IOI/CSAH 144 interchange project has clearly
demon strated local and regional benefit to communities located along the TH 101 corridor
including Otsego; and
WHEREAS, the city of Rogers, in conjunction with Hennepin County and MnDOT, has
completed the public involvement, envirol-flnental. documentation, and layout review and the
project will receive approval on those items in December 2012; and
WHEREAS, the city of Rogers has initiated right-of-way acquisition for the project; and
WHEREAS, MnDOT has commenced design with a bid letting proposed for December
2013; and
WHEREAS, the project is scheduled for construction and completion in 2014.
NOW, THEREFORE, in consideration of the mutual undertakings herein expressed,
Otsego and Rogers agree as follows:
1. PURPOSE
The purpose of this Agreement is to set forth the tern -is of the agreement Otsego and
Rogers have reached regarding the design, construction and financing of the Project, in
accordance with Minnesota Statutes, section 471.59.
11. AGREEMENT
Rogers, in conjunction with Hennepin County and MnDOT, shall be responsible
for the design, construction and financing of the entire Project.
2. Otsego, in recognition of the regional benefit to their residents has agreed to
participate in the funding of the local share of the project in a lunip suni amount
of $100,000 to be paid as follows:
a. Half ($50,000) paid at issuance of the Notice to Proceed to the contractor,
estimated in early 2014.
b. Half ($50,000) paid at substantial completion of the Project, estimated in
the fall, 2014.
Rogers will invoice Otsego for the payment when these events occur.
Except for the limited participation of providing funding support, Otsego has no
other liability, responsibility, or obligation related to the Project.
3. Rogers agrees to fully indemnify, defend, and hold harmless Otsego, its officers,
agents, and employees from any claims, losses, costs, expenses or damages, of
whatever nature including reasonable attorney's fees, resulting from the acts or
2
omissions of Rogers and/or its officers, agents, or employees Related to this
Agreement or the Project.1t is understood and agreed that the entire agreement of
the parties is contained herein and that this Agreement supersedes all oral
agreements and all negotiations between the parties relating to the subject matter
thereof, as well as any previous agreen-tent presently in effect between the parties
regarding the subject matter thereof. Any alterations, variations, or modifications
of the provisions of this Agreement shall be valid only when they have been
reduced to writing and duly signed by the parties.
4. For purposes of delivery of any notice required by this Agreement, the notice
shall be effective if delivered by certified or registered U.S. mail, postage prepaid,
or hand delivered to:
a. As to Otsego: City of Otsego
13400 90t" Street NE
Otsego, iN/IN 55330
Attn: City Administrator
b) As to Rogers: City of Rogers
22350 South Diamond Lake Road
Rogers, MN 55374
Attn: City Administrator
5. This Agreement shall be interpreted under the laws of Minnesota.
IN WITNESS WHEREOF, Otsego and Rogers have caused this Agreement to be
executed on their behalf by their appropriate officers.
Dated: , 2012. CITY OF OTSEGO
Jessica Stockanip, Mayor
And by:
Tanii Doff, City Clerk
3
Dated: .2012. CITY OF ROGERS
And by:
Jay Buntitig, Mayor
Stacy Doboszenski, City Clerk
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RESOLUTION NO.: 2011 - 30
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION RELATED TO FORMATION OF AN AGREEMENT BETWEEN THE CITY OF
ROGERS AND THE CITY OF OT EGO.
WHEREAS, the City of Otsego and the City of Rogers recognize the benefit of regional
planning and advocacy for transportation improvements through their continued support of the
TH 101 and Interstate 94 Coalitions; and,
WHEI EA # the construction of the TH 10 1 flyover of South Diamond bale Road in
Rogers and construction of interchanges at CSAH 36, CSAH 37, CSAH 42 and CSAH 39 in
Otsego has improved the ability for commuter traffic to pass through and move more quickly to
cities north of Rogers and Otsego; and,
WHEREAS, the intersection of TH 101 and CSAH 144 is the last at grade intersection
for TH 10 1 between 1-94 and the City of Elk River; and}
WHEREAS, future construction of an interchange at TH 101 and CSAH 144 would
improve safe and efficient travel for area residents, students within ISD 728 attending Hassan
Elementary School, Rogers Middle School and Rogers High School, and regional commuter
traffic by eliminating an at grade intersection; and,
WHEREAS, Mn/DoT has awarded the City of Rogers $9,200,000 in Safety and Mobility
(Salve) funds towards con trurcti n of a grade separated interchange at TH 10 1 and CSAH 144
estimated to cost $22,000,000 and has committed to provide funding for other soft costs
including design and construction to complete this project; and,
WHEREAS, the City of Rogers and Hennepin County need to provide a letter of financial
commitment to Mn/DoT by 30 June 2011 agreeing to a local share of $3,000,000 for the project
to continue forward in development and construction; and,
WHEREAS, because the Salk funding does not fully fund the project, the City of Rogers,
Frith the support of Mn/Dot and Hennepin County, will be applying for surface transportation
program (STP) grant funding through the Metropolitan Council; and,
WHEREAS, the competitive STP grant application would be strengthened by the
formation of a partnership of communities benefiting from the improvement, and,
WHEREAS, the City of Rogers has committed funding to complete the Salk and STP
applications and has initiated preliminary environmental and interchange justification and
concept level drawings required by the Metropolitan Council to advance the project forward;
and,
WHEREAS, further project development will be necessary to achieve Mn/DoT layout
approval and meet requirements set forth in the Salk funding guidelines; and,
WHEREAS, the proposed TH I 01/CSAH 144 interchange project has clearly
demonstrated local and regional benefit to communities located along the TH 101 corridor
including Otsego.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego that it
is in the best interest of the City of Otsego to develop and enter into a Joint Powers Agreement
to participate in the successful delivery of the proposed TH 101/CSAH 144 interchange project
as an important regional transportation improvement.
MOTION BY: CM SCHARBER
SECOND BY: W DARKEMqAI-D
ALL IN FAVOR: MAYOR STOCKMP: COU NCILMEMBERS: SCHARBER, DARKEMVALD, SCHRSEDER
THOSE OPPOSED: CM HEIDNER
ADOPTED by the City Council of the City of Otsego this 13t" day of June, 2011.
CITY OF OTSEGO
BY:
JeUca Sto6k�amp, Mayor
ATTEST:--�,iuv6t7m 4,000
Tami Loff, City Clerk v
City COUncill Meeting June 13,, 2011, Page 3.
Mr. Bclow is asking the City Council to look at other options on how they penalize. He said that
they are different than a liquor store where they don't sell a high volume of liquor. Mr. Bulow
said surrounding communities have little or no penalties. Mr. Bulow said that Wright County is
not prosecuting the individual as they said they would so it makes it hard on the business
owners. CM Darkenwald asked for list on what penalties have been imposed in the past. The
City Council directed to City staff to provide a list of past penalties and check with surrOUnding
cities regarding their penalties for the July 27th City Council meeting.
102 Closed session for Attorney/Client privilege -MOVED TO ITEM 13,1,
10.3 Proposed agreement for Attorne 6
City Attorney MacArthur said that Couri,, MacArthur and Suppe, PLLP is dissolving. Mi..
MacArLhur said he hopes to continue to work with the City and he presented a proposal for
legal service through his company MacArLhur Law Office LLC.
CM Heidner motioned to approve Resolution 2011-29 approving legal service
contract with MacArthur Law Office LLC and terminating any relationship with the
predecessor firm to Courl, MacArthur & Ruppe,, PLLP, Seconded by CM Schroeder,. All
in favor, Motion carried.
11. Council Items.
11.1 —Approve Resolution 2011-25 accepting a donation frorn TRSA.
Mayor Stockamp said she will be abstaining.
CM Darkenwald motioned to approve Resolution 2011-25. Seconded by CM
Schroeder. Motion carried 4-0. Mayor Stockamp, abstained.
11.2 Rogers TH1011CSAH 44 projerf%
City Planner Licht presented the request for City Council action. CM Darkenwald said they were
originally asking for more. City Planner Licht said originally Rogers was requesting $400,000.
CM Heidner said he doesn't think this is Otsego` s responsibility and he can't support this.
CM Scbarber motioned to approve Resolution 2011-30 related to formation of an
agreement between the City of Rogers and the City of Otsego and directed City staff
to begin negotiations of a Joint Powers Agreement. Seconded by CM Darkenwald.
Motioned carried 4-1. CM Refiner opposed.
113 Scharber and Sons invoice,
CM Scharber said he will be abstaining. City Planner Licht said this invoice is for the Used trailer
approved at the City Council meeting on May 23, 2011 and paid for out of the Capital
Equipment Fund.
CM Darkenwald motioned to approve invoice. Seconded by CM Ilei dner, Motioned
carried 4-0. CM Scharber abstained.
12. Gary.Groen, Finance Director.
No items,
13, Tami Loff, City Clerk.
131 Closed session for Attorney/Client privilege.
City Attorney MacArthur recommends closing the meeting regarding GCI Capitol and threatened
litigation regarding Waterfront East.
CM Scharber motioned to close at 8:08 PM. Seconded by CM Darkenwaid. All in
favor. Motion carried, h