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Home My WebLink About5N - McKenna Road and CR 42 Intersection Signal Construction O~ PRIO~"~ C . ~ 4646 Dakota Street S.E. U ~ Prior Lake, MN 55372-1714 ~~''J CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 15, 2009 AGENDA #: 5N PREPARED BY: STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR THE MCKENNA ROADICR 42 INTERSECTION SIG- NAL CONSTRUCTION DISCUSSION: Introduction The purpose of this agenda item is to seek authority for the Mayor and City Manager to execute the County's Standardized Cooperative Agreement for the McKenna Road and CR 42 Intersection Signal construction. Historv. As part of the Shepherds Path and Wilds Ridge North project CR 42 was recon- structed at McKenna Road for installation of a traffic signal at a later date. The traffic study completed for the River Valley YMCA indicated that a signal would be needed upon full operation of the facility to ensure intersection safety. In 2008 the City included this signal in our Transportation Plan for design in 2009 and construction in 2010. Because the project met the requirements for American Recovery and Rein- vestment Act (stimulus) funding it was submitted by the City for consideration earlier this year. In April of 2009 the City Council authorized SEH to complete the signal design for the intersection. Current Circumstances This project is under final consideration for $175,000 of Federal stimulus fund- ing which requires it to begin construction this year. For that reason it is impor- tant for the City to execute a Cooperative Agreement with Scott County for con- struction of the signal to ensure sufficient time to construct the project if funding is received. ISSUES: If the City does receive stimulus funding for this project it will need to be com- pleted immediately. Therefore having the Cooperative Agreement in place will allow for the project to proceed along the necessary time frame to be completed in accordance with funding requirements. Should the City not receive funding, construction will not be completed in 2009 and the project funding and timing will be considered as part of the 2010-2014 CIP. www.cityofpriorlake.com R\Council\2009 Agenda Reports\06 15 09\cIfJ2Q~~~~.Wal<A~~Qa.locFax 952.447.4245 The Cooperative Agreement is in the County's Standard format which has pre- viously been reviewed by the City Attorney. FINANCIAL IMPACT: The total project cost is estimated to be $290,000. The City has already en- tered in to a contract with SEH in the amount of $16,000 for design. The re- maining $274,000 will be reimbursed to the County who will bid and manage the project as the City does not have this expertise in-house. The City did not budget funding for the construction of the signal in 2009. The current stimulus funding identified is $175,000 which leaves $115,000 to be funded by the City. The City's transportation plan identified the use of Munici- pal State Aid and tax levy funds to pay for the project in 2010. However, it should be noted that construction would have been dependent on final costs of the CR 12 and CR 21 projects which the City has already committed to com- plete with the County. The City currently has $425,000 in our State Aid Road- way construction account. Depending on final MnDOT review, it is estimated that a minimum of $75,000 will be eligible for use on this project leaving a need for $40,000 in additional funds. Because there is no tax levy funding available in 2009 for this project, staff proposes to utilize Street Oversize funds for con- struction and reimburse the account in 2010 by including the $40,000 as part of the bond request. Included in the resolution is a declaration of official intent to issue bonds for an estimated cost of $115,000 less any Municipal State Aid reimbursed to the ac- count as part of the project. In order to satisfy federal regulations and state statute the City Council must adopt a resolution that provides a notice of intent to bond. The resolution is necessary if the City intends to reimburse itself for costs incurred on a project that will be funded by bonds but for which bonds have yet to be issued. The approval of this resolution only approves the City's intent to bond. It does not approve the sale of bonds. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution authorizing the Mayor and City Manager to execute a Cooperative Agreement with Scott County for McKenna Road and CR 42 In- tersection Signal Project. 2. Table the Resolution for a specific reason. 3. Deny the Resolution. RECOMMENDED Alternatives # 1 :::f;JfiL Frank Boyles, City fJe:" R:\Council\2009 Agenda Reports\06 15 09\CR 42 - McKenna Signal Agenda.doc O~ PRIO~" ~ ~ t ;p u ~ '" ~lNNESO~~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-XXX A RESOLUTION APPROVING THE COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR THE CR 42 AND MCKENNA ROAD INTERSECTION SIGNAL PROJECT SAP 201-118-001 WHEREAS WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Second By: With the opening of the YMCA later this year the traffic volumes at the McKenna Road and CR 42 intersection will exceed signal warrants; and The City may receive $175,000 in American Reinvestment and Recovery Act funds (ARRA); and The funding requires construction to begin in 2010; and In order to be in position to receive the funding and meet timeline requirements it is in the City's best interest to execute a Cooperative Agreement with the County for the project; and The Mayor and City Manager are authorized to execute a Cooperative Agreement with Scott County for the CR 42 and McKenna Road Intersection Signal Project; and The final design has been completed in accordance with County and State standards; and If the City does not receive ARRA funds the signal project will not be constructed in 2009 and Staff will bring a revised project funding resolution back for City Council consideration in the future; and The City of Prior Lake's signal cost share is estimated to be $274,000 plus design costs already contracted directly with SEH in the amount of $16,000, Total $290,000; and The City has determined to make a declaration of official intent ("Declaration") to reimburse certain estimated costs from proceeds of bonds in accordance with the Internal Revenue Service Reimbursement Regulations (Treasury Reg. 1.150-2). R:\Council\2009 Agenda Reports\06 15 09\CR 42 - Mc~~~rBP18~fake.com Phone 952.447.9800 / Fax 952.447.4245 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein 2. The Mayor and City Manager are authorized to execute a Cooperative Agreement on behalf of the City with Scott County for the CR 42 and McKenna Road Intersection Signal Project. 3. The City will reimburse Scott County an estimated $274,000 for the project. 4. Construction costs will be recorded in the Construction Fund (#501-48367-501) 5. Funding from the American Recovery & Reinvestment Act Funds ($175,000) and Municipal State Aid ($75,000) will be recorded in the Construction Fund. 6. City staff is authorized to transfer $115,000 from the Street Oversize Fund to the Construction Fund as an interfund loan to cash flow this project. Once the project is completed Staff is directed to reimburse the Street Oversize Fund with any State Aid eligible costs reimbursed to the City. 7. The City reasonably expects to reimburse the expenditures not funded by the American Recovery & Reinvestment Act and Municipal State Aid from the proceeds of bonds. Upon receipt of bond proceeds, any remaining balance due to the Street Oversize Fund will be reimbursed. 8. Staff shall include in the 2010 bonding request the funding needed to fully reimburse the Street Oversize Account $115,000 ($99,000 - Construction, $16,000 Design) less any Municipal State Aid reimbursed to the account as part of the project. 9. The City Engineer is authorized to sign the CR 42/McKenna Intersection Signal Project Plans. PASSED AND ADOPTED THIS 15TH DAY OF JUNE 2009. YES NO I Haugen Erickson Hedberg LeMair Millar Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2009 Agenda Reports\06 15 09\CR 42 - McKenna Resolution.doc