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HomeMy WebLinkAbout5B - Payment for CR 21 Extension o~ PRIO/t t '" ~ 4646 Dakota Street S.E. U ~: Prior Lake, ~~~ 55372-1714 ~INNESO~~ CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: MARCH 1,2010 58 STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PAYMENT FOR CR 21 EXTENSION PROJECT SAP 70-621-024 DISCUSSION: Introduction The purpose of this agenda is for the City Council to authorize payment to Scott County for the CR 21 Extension Project. Historv On April 6, 2009 the City Council approved resolutions 09-053 and 09-054 approving Cooperative Agreements for the CR 21 Extension Project and the related transit improvements. The Cooperative Agreement allocates project costs between the City and County. Current Circumstances The County has bid the project and construction began last fall with completion scheduled for summer 2012. In accordance with the Cooperative Agreement the County is billing the City in two installments of $274,047.95 for a total of $548,095.90. The first payment is due now with the second installment due by December 31, 2010. Conclusion Staff recommends payment be made in the amount of $274,047.95 to Scott County for the CR 21 Project at this time and the second installment be paid after December 1, 2010. ISSUES: There are no issues related to this request. The requested total amount of $548,095.90 is $581,904.10 less than the Cooperative Agreement estimate of $1,130,000. The primary reasons the City's share of the cost is lower is because the County received additional Federal Stimulus funding and reallocated the Stimulus Funding to this project which benefited the cities of Prior Lake and Shakopee. The City of Prior Lake's non-utility related costs are $163,368.94 for this $20 million road project. FINANCIAL IMPACT: The following table shows the costs previously approved as part of the Cooperative Agreement and the costs based on the bids received: I Roadway Construction Construction County Eng/Adm/Construction Svs City Admin/Bonding (3%+actual) Federal Aid I Street Lights/City Entrance Mon ** I Total CA Cost* $694,000.00 $146,000.00 $25,000.00 -$215,000.00 $100,000.00 I $750,000.00 I Bid Cost I $417,078.00 I $87,586.38 I $16,000.00 I -$341,295.44 I $100,000.00 I $279,368.94 I www.cityofpriorlake.com :BhQoe~~4447.9800 / Fax 952.447.4245 *Cooperative Agreement Costs **Bid Future By City Directly The following table shows the budget funding for the roadway construction: Roadway Funding Source Street Oversize Fund I Municipal State Aid I Water Quality Fund I Street Reconstruction Bonds I Total Proposed Funding $100,000.00 $74,368.94 $50,000.00 $55,000.00 $279,368.94 The following table shows the utility costs previously approved as part of the Cooperative Agreement and the costs based on the bids received: I Utility Construction I Construction I County Eng/Adm (13%) I City Admin (3%) I Total CA Cost $490,000.00 $15,000.00 $30,000.00 $535,000.00 Bid Cost I $340,466.34 I $44,260.62 I $10,200.00 I $394,926.96 I The following table shows the budget funding for the utility construction: I Utility Funding Source I Trunk Reserve Fund I Total Proposed Funding I $394,926.96 I $394,926.96 I The total project cost for the City is $674,295.90 and the total amount payable to the County is $548,095.90. This amount reflects a distribution of Federal Funds including ARRA Stimulus Funds in the amount of $341,295.44 for the City of Prior Lakes share. The final costs are less than originally budgeted and the funding is available. The approval also includes reimbursement of $26,200 for City Costs. That amount includes $24,550 for City Staff time associated with project administration and engineering and an estimated $1,650 to cover bonding costs associated with the project. ALTERNATIVES: 1. Approval of a Resolution Authorizing payment to Scott County for the CR 21 Extension Project SAP 70-621-024. 2. Table this Resolution for a specific reason 3. Deny the Resolution. RECOMMENDED Alternative NO.1. MOTION: 2 O~ PR10~ t ~ 4646 Dakota Street S.E. U ~ Prior Lake, MN 55372-1714 try ~llVNESO~ " RESOLUTION 10-XXX A RESOLUTION APPROVING THE PAYMENT TO SCOTT COUNTY FOR THE CR 21 EXTENSION PROJECT SAP 70-621-024 Motion By: Second By: WHEREAS On April 6, 2009 the City Council approved a Cooperative Agreement with Scott County for the CR 21 Extension Project, SAP 70-621-024 ("the project"); and WHEREAS, The project has been bid and construction has begun; and WHEREAS, The Cooperative Agreement requires the City to reimburse the County for certain costs for the project; and WHEREAS, The City of Prior Lake's street and storm sewer cost share is allocated as follows: I City Roadway Construction Costs I Construction I County Eng/Adm/Construction Svs I City Admin/Bonding (3%+actual) I Federal Aid I Street Lights/City Entrance Mon I Total City Cost I $417,078.00 I $87,586.38 I $16,000.00 I -$341,295.44 I $100,000.00 I $279,368.94 I Total Roadway Costs Payable to County = $163,368.94 The proposed City funding sources for this project are identified below: City Funding Source Street Oversize Fund Municipal State Aid Water Quality Fund (Stormwater) Street Reconstruction Bonds Total City Funding Funding I $100,000.00 I $74,368.94 I $50,000.00 I $55,000.00 I $279,368.94 I The City of Prior Lake's utility cost share is allocated as follows: I City Utility Costs I Utility Construction I County Design/Administration Cost (13%) I City Engineering/Administration (3%) I Total City Cost $340,466.34 $44,260.62 I $10,200.00 I $394,926.96 I R:\Council\2010 Agenda Reports\03 01 1 O\CR 21 Paymwtvtlr.r~B~B'fl~'tlake.com Phone 952.447.9800 / Fax 952.447.4245 The proposed City funding sources for the utility portion of the project are identified below: I City Funding I Trunk Reserve (Sewer & Water) I Total City Funding $394,926.96 $394,926.96 Total Utility Construction Costs Payable to Scott County = $384,726.96 ; and WHEREAS, The City of Prior Lake is obligated to reimburse Scott County $548,095.90 of which $274,047.95 is due at this time and $247,047.95 is due after December 1,2010 for the CR 21 Extension project as shown above. 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. Construction costs will be recorded in the Construction Fund (#501-48366). 3. City Staff is authorized to request $74,368.94 from the City's Municipal State Aid Account for the project to be deposited in Construction Fund Account #501-33419. 4. City Staff is authorized to transfer the following amounts from the funds designated below to Construction Fund Account #501-39203: o Trunk Reserve Fund: $394,926.96 (#502-49303) o Street Oversize Fund: $100,000 (#503-49303) o Water Quality Fund: $50,000 (#602-49303) 5. City Staff is authorized to include $55,000 in Street Reconstruction Bonds for this project as part of the 2010 Bond sale. Proceeds from the bond sale will be deposited in the Construction Fund. 6. City Staff is authorized to transfer $24,550 from Construction Fund Account #501-39203 to General Fund Account #101-34109 to reimburse city administration costs. PASSED AND ADOPTED THIS 1st DAY OF MARCH 2010. YES NO Myser Hedberg Erickson Keeney Millar Myser Hedberg Erickson Keeney Millar Frank Boyles, City Manager R:\Council\2010 Agenda Reports\03 01 10\CR 21 Payment Resolution.doc