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4646 Dakota Street SE
`~INNESO~P Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: NOVEMBER 15, 2010
AGENDA #: 5G
PREPARED BY: JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES
DIRECTOR
PRESENTER: JANE KANSIER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE
MAYOR AND CITY MANAGER TO ENTER INTO AN AMENDMENT TO
THE COOPERATIVE AGREEMENT WITH THE METROPOLITAN
COUNCIL FOR THE PURCHASE OF A BUS AS PART OF THE JOBS
ACCESS REVERSE COMMUTE (JARC) GRANT FUNDS
DISCUSSION: Introduction
The purpose of this agenda item is to receive City Council approval of the
First Amendment to the Cooperative Agreement with the Metropolitan
Council for the purchase of a coach bus with Jobs Access Reverse
Commute (JARC) grant funds. The Cooperative Agreement, approved on
October 19, 2009, sets out the obligations of the City and the Metropolitan
Council with respect to the acquisition, lease and operation of a coach bus
funded by a JARC grant from the FTA and Prior Lake's local match. This
amendment clarifies the specific percentages listed in the FTA grant. It
does not change the amount the City will pay for the bus purchase and
operations.
History
The City of Prior Lake, in partnership with the City of Shakopee, applied for
a Jobs Access Reverse Commute (JARC) grant. We were awarded
$436,000 to create the BlueXpress Reverse Commute project, which will
provide a transportation alternative to workers in the central cities to
available jobs in suburban Shakopee and Prior Lake. The project involves
the purchase of a coach bus and the operation of at least three additional
reverse routes to and from downtown Minneapolis.
The Metropolitan Council has an existing contract with MCI, Inc. for the
manufacture and delivery of 26 coach buses. As part of their contract, the
Metropolitan Council has an option to purchase additional vehicles under
the same terms, conditions and specifications as the initial purchase. The
Metropolitan Council has agreed to exercise one of its options and will
purchase one coach bus using the FTA JARC funds and Prior Lake's local
match.
Since the City is the official applicant of this grant, we must enter into a
cooperative agreement with the Metropolitan Council to arrange for our
share of the bus purchase. The City of Shakopee has approved a separate
agreement to share equally in the cost of the local match.
Current Circumstances
The JARC bus has been delivered and is being prepared for service. We
expect to place the bus into service in December, 2010.
Conclusion
The Metropolitan Council has requested approval of this amendment to the
approved Cooperative Agreement. The amendment is primarily for
administrative purposes and has no impact on the amount of grant funds
that will be received, or on the cost to the City of Prior Lake. The City
Attorney has reviewed the agreement and has not expressed any
concerns.
ISSUES: This amendment will clarify the percentages listed in the FTA grant. It will
not impact the cost to the City.
FINANCIAL The City of Shakopee and the City of Prior Lake will share equally in the
IMPACT: cost of the local match for the purchase of the bus. The funds for this
match have been included in the 2010 CIP, and will be taken from the
Transit fund. The Finance Director has reviewed this source to ensure the
funds are available.
ALTERNATIVES: 1. Adopt a resolution approving the First Amendment to a Cooperative
Agreement with the Metropolitan Council for the purchase of a coach
bus with JARC Grant funds.
2. Deny the proposed resolution.
3. Other action as directed by the City Council.
Alternative 1. A motion and second to adopt a a resolution approving the
First Amendment to a Cooperative Agreement with the Metropolitan
it for the purchase of a coach bus with JARC Grant funds.
RECOMMENDED
MOTION:
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4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 10-xxx
A RESOLUTION APPROVING THE FIRST AMENDMENT TO A COOPERATIVE AGREEMENT WITH
THE METROPOLITAN COUNCIL FOR THE PURCHASE OF A BUS WITH JOBS ACCESS REVERSE
COMMUTE (JARC) GRANT FUNDS
Motion By:
Second By:
WHEREAS, The City of Prior Lake and the Metropolitan Council have a shared interest in planning
and providing efficient transit services to the residents of Scott County; and
WHEREAS, The City of Prior Lake and the Metropolitan Council have, through prior undertakings,
jointly participated in completing a Unified Transit Management Plan ("UTMP") that
recommends various transit capital and service improvements in Scott County; and
WHEREAS, Based on recommendations in the UTMP, the Metropolitan Council, acting in its role as
the Twin Cities Metropolitan Planning Organization submitted an application to the
Federal Transit Administration ("FTA") for grant funds under the FTA's Job Access
Reverse and Commute grant program (JARC) pursuant to 49 U.S.C. Section 5316. The
Council's application included the purchase of a coach bus that would be used by Prior
Lake for public transit service; and
WHEREAS, For the purchase of the coach bus, Prior Lake has agreed to provide the local match for
the JARC grant; and
WHEREAS, To expedite the acquisition of the bus, the Metropolitan Council will exercise an option for
an additional coach bus under an existing contract with MCI, Inc. The purchase of the
bus will be paid for using the proceeds of the FTA JARC grant and from funds Prior Lake
has agreed to contribute for the local match; and
WHEREAS, The City of Prior Lake and the Metropolitan Council entered into a Cooperative
Agreement to set forth the terms and conditions pertaining to the coach bus acquisition
and the lease of the bus to Prior Lake for public transit purposes on October 19, 2009;
and.
WHEREAS, The Metropolitan Council has requested approval of the First Amendment to the
Cooperative Agreement to clarify the match percentages listed in the FTA grant; and
WHEREAS, The First Amendment to the Cooperative Agreement does not impact the cost to the City
of Prior Lake.
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 the First Amendment to the Cooperative
Agreement.
3. The City funding source for this purchase shall be as follows:
o Transit Services Account # 603-49804-530.
PASSED AND ADOPTED THIS 15TH DAY OF NOVEMBER, 2010.
YES NO
M ser M ser
Erickson Erickson
Hedber Hedber
Keene Keene
Millar Millar
Frank Boyles, City Manager
2
FIRST AMENDMENT TO COOPERATIVE AGREEMENT
BETWEEN THE METROPOLITAN COUNCIL AND
THE CITY OF PRIOR LAKE
The Metropolitan Council {"Council") and the Ciiy of Prior Lake ("Prior Lake") agree thaf
the Cooperative Agreement for the Acquisition of a Coach Bus with Jobs Access Reverse
Commute Grant Funds shall be amended in the following particulars:
1. RECITALS, Section 4 is hereby deleted and replaced with the following:
For the purchase of the coach bus, Prior Lake has agreed to provide the local match for
the JARC grant. The grant can be used to finance 75.2% of the cost to manufacturer, deliver
and inspect a coach bus up to $376,000 ("Maximum Grant Amount"}. Prior Lake agrees to pay
for a minimum of 24.8% of the cost to manufacture, deliver and inspect a coach bus
2. Article 4, BUS MANUFACTURE, DELIVERY AND INSPECTION, Section B (3), is
hereby deleted.
3. Article 4, BUS MANUFACTURE, DELIVERY AND INSPECTION, Sections C (1) (B)
and C (2}, are hereby deleted and replaced with the following:
C (9} (B) 75.2% of the total cos# to manufacture, deliver and inspect the coach bus.
C (2) Local Match. Prior Lake has an obligation under this Agreement to share in the
cost of the coach bus, delivery and inspection cost (collectively "Coach Bus Costs.") Prior Lake
will provide a minimum of 24.8% of the Coach Bus Costs from sources other than FTA funds,
i.e., not less than $924.000.00 against the Maximum Grant Amount. The eligibility and use of
matching funds shall be governed by applicable federal law, regulations and guidance. If the
final Coach Bus Costs are less than the Maximum Grant Amount, the required 24.8% local
match shall be reduced to 24.8 % percent the final Coach Bus Cos#s. If the final Coach Bus
Cos#s exceed the Maximum Grant Amount, plus the 24.8% local match contributed by Prior
Lake, Prior Lake will be responsible for the additional costs.
4. Article S, FEDERAL FUNDING, is hereby deleted and replaced with the following:
Prior Lake acknowledges and agrees that the Council's payment of funds under this Agreement
is contingent on the Council receiving grant funds from the FTA. If, for any reason, the FTA
reduces the amounf of the Council's FTA JARC Grant, or otherwise fails to pay any part of the
cost or expense in this Agreement, Prior Lake agrees to pay those costs and expenses.
Notwithstanding any other provisions of this Agreement, in the event the FTA rescinds funding
for the FTA JARC Grant, the Council may immediately terminate this Agreement by written
notice to Prior Lake, and Prior Lake shall pay to the Council, if payments are due to MCI for
completed work, up to but in no event exceeding 24.8% of the Maximum Grant Amount.
5. Ratification. The remaining provisions of the above-referenced agreement shall remain
in #ull force and effect without change except as amended above.
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IN WITNESS WHEREOF, the parties have caused this amendment fo be executed by
their duly authorized representatives. This amendment is of#ective upon final execution by bosh
parties.
APPROVE AS TO FORM:
City Attorney/Date
Approved as to form:
CITY OF PRIOR LAKE
By:
Title: -Mike Myser, Mayor
Date:
A#test:
Title: Frank Boyles, City Manager
Date:
METROPOLITAN COUNCIL
By:
Office of General Counsel Regional Administrator
Date:
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