Loading...
HomeMy WebLinkAbout4D - Transit Financial Assist. CITY COUNCIL AGENDA REPORT MEETING DATE: March 6, 2002 AGENDA #: 4D PREPARED BY: Susan Walsh, Assistant City Manager AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE METROPOLITAN COUNCIL FOR TRANSIT CAPITAL FINANCIAL ASSISTANCE DISCUSSION: Historv: In November 2001 the Metropolitan Council informed city staff of its intention to reimburse the City for the purchase of the City's two new transit buses for the Laker Lines bus service that went into effect on January 1, 2002. In July 2001 the City placed an order with Grande American Bus Sales for two Blue Bird L TC-37 transit buses for a total amount of $443,684. The buses were delivered to Grande American Bus Sales in Anoka this past week. Current Circumstances: Under the consent agenda for Council approval is the purchase order and invoice for the two buses in the amount of $443,684. The City has invoiced the Metropolitan Council for reimbursement of this amount. To complete the arrangement between the City and the Metropolitan Council, the City Council needs to approve the attached agreement that outlines the conditions for the City to receive the funds from the Metropolitan Council. With the assistance of the City Attorney, staff is currently reviewing and clarifying some of the conditions and clauses of the agreement with Metropolitan Council staff members. In order that we can move forward with reimbursement from the Metropolitan Council, staff recommends that the Mayor and City Manager receive authorization to executive this Agreement subject to the City Attorney approving the Agreement. Conclusion: Council approval of the attached Agreement will allow the City to receive reimbursement for the purchase of the City's two new transit buses. FISCAL IMPACT: There is no negative impact to the budget since the Metropolitan Council will reimburse the City for the full purchase price of the two transit buses. Bus acquisition in this fashion was previously approved by the City Council. ALTERNATIVES: (1) Adopt a Resolution Authorizing the Mayor and City Manager to Enter Into an Agreement with the Metropolitan Council for Transit Capital financial Assistance. (2) Deny the Resolution 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 I:\ASSTCM\PRIOR LAKE TRANSIT\MET CO~~~~~ BiPT~ RECOMMENDED MOTION: REVIEWED BY: (3) Take no action and provide staff with specific direction. I:\ASSTCM\PRIOR LAKE TRANSIT\MET COUNCIL GRANT AGND RPT.DOC RESOLUTION 02- 30 RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE METROPOLITAN COUNCIL FOR TRANSIT CAPITAL FINANCIAL ASSISTANCE Motion By: Second By: WHEREAS, the City Council authorized the purchase of two Blue Bird L TC-37 transit buses for a total costs of $443,684; WHEREAS, the City of Prior Lake requested capital financial assistance from the Metropolitan Council for the purchase of the two transit buses; WHEREAS, the Metropolitan Council has agreed to reimburse the City in the amount of $443,684 as outlined in the Agreement between the Metropolitan Council and the City of Prior Lake. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that:. 1. The recitals set forth above are incorporated herein, 2. The City Council hereby approves the Agreement with the Metropolitan Council for Transit Capital Assistance subject to final approval by the City Attorney. PASSED AND ADOPTED THIS 6th DAY OF MARCH, 2002. Haugen Haugen Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska YES NO Frank Boyles, City Manager 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Contract No. SG-Ol-125 AGREEMENT BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF PRIOR LAKE FOR TRANSIT CAPITAL FINANCIAL ASSISTANCE THIS AGREEMENT is entered into by THE METROPOLITAN COUNCIL, ("the Council"), and THE CITY OF PRIOR LAKE, ("the Grantee"). WHEREAS, the Council is authorized by Minnesota Statutes section 473.39 to issue bonds to provide funds to implement the Council's transit capital improvement program ("the Transit Crp"); and WHEREAS, the Transit crp provides for funding of capital projects such as vehicle acquisition or refurbishment, public transit and support facilities, computer/communication equipment acquisition, transit equipment acquisition, and demonstration projects to assist in providing safe and convenient access to transit services; and WHEREAS, the Council is authorized by Minnesota Statutes section 473.375 to provide financial assistance to operators of public transit in the metropolitan area; and WHEREAS, the Grantee is an eligible recipient for transit capital financial assistance and has applied to the Council for a transit capital grant; and WHEREAS, the proposed project is consistent with the Council's Transit CIP, and the Council desires to assist the Grantee by the award of a transit capital grant. NOW, THEREFORE, the Council and the Grantee agree as follows: I. DEFINITIONS 1.01 "Project" means the entire work eff0l1 funded in whole or in part by Council grant funds, described in Exhibit A. 1.02 "Council bond proceeds" means funds received by the Council from the intended issuance of Metropolitan Council general obligation bonds to accomplish the Council's Transit crp. II. GRANT AMOUNT, GRANT PERIOD, AND PAYMENT OF PROCEEDS 2.01 Grant Amount. The Council agrees to make available to the Grantee during the grant period a total grant amount of $443,684.00 for the purpose of performing the Project set forth in Exhibit A, which is attached to and incorporated in this agreement. In no event will the Council's obligation under this agreement exceed the total grant amount. The Council shall bear no responsibility for any cost overruns which may be incurred by the Grantee in the performance oftbe Project. 2.02 Grant Period. The grant period shall commence upon the execution of this agreement and remain in force and effect until June 1, 2002. After that date, all grant funds which have not been -1- v expended shall revert to and become part of the Council's Transit Capital Fund and may be reallocated or expended by the Council for other transit capital projects. 2.03 Reimbursement Payments of Grant Proceeds. Except as provided in paragraph 2.04, all payments to the Grantee shall be made on a Reimbursement basis following submission by the Grantee to the Council of satisfactory documentation of grant-eligible expenditures. All documentation of expenditures shall be submitted in a form acceptable to the Council. The Council shall reimburse all grant eligible expenditures not in excess ofthe total grant amount within thirty (30) days of the receipt of satisfactory documentation from the Grantee. The documentation shall be subject to review and acceptance orrejection by the Council's Regional Administrator. Documentation shall be deemed to be accepted if it is not rejected in writing within ten (10) working days of receipt. 2.04 Joint Payment of Large Expenditures. In the event of an anticipated grant-eligible expenditure in a liquidated amount in excess of $50,000, the Grantee may request a check from the Council for payment of grant proceeds made out jointly to the Grantee and to the contractor or vendor to whom the grant eligible payment is owed. The Council shall issue such a check within thirty (30) days of receipt of satisfactory documentation from the Grantee of a grant-eligible expenditure in excess of $50,000. All documentation shall be submitted in a form acceptable to the Council. The documentation shall be subject to review and acceptance or rejection by the Council's Regional Administrator. Documentation shall be deemed to be accepted if it is not rejected in writing within ten (10) working days of receipt. The Grantee's endorsement on the check will be deemed to be a certification by the Grantee that the full amount ofthe check is for payment to the joint payee on the check and that no pOJiion of the proceeds of the check will be paid to or retained by the Grantee. 2.05 Reimbm'sement Request/Progress Reports. To obtain reimbursement under this agreement, the Grantee shall submit a Reimbursement Request/Progress Report on forms provided by the Council. Reimbursement Request/Progress Reports may be submitted once per month, but must be submitted at least semi-annually by December 1 and .Iune 1 of each calendar year ofthe grant period. The Grantee shall describe the activities undertaken in connection with the grant and shall provide sufficient documentation of grant-eligible expenditures and such other information as the Council's staff reasonably requests. 2.06 Council Fund Requirement. Notwithstanding anything to the contrary in this agreement, the payment of grant proceeds shall be made by the Council within the time frames specified in this aIiicle only if the Council has adequate transit bond funds on hand at the time that payment is due. The Grantee acknowledges that, at the time of execution ofthis grant agreement, the Council may not have issued the Council bonds, the proceeds of which will be used to fund the Council portion of this agreement, III. AUTHORIZED USE OF GRANT PROCEEDS 3.01 Project Costs. The costs of performing the Project as detailed in Exhibit A after June 14,2000, and before expiration ofthe grant period are eligible for payment or reimbursement out of grant proceeds. 3.02 Professional Services Costs. The costs of legal, engineering, architectural, construction site management, design services, soils testing, preparing bidding or proposal specifications, or project management services directly necessary to perform the Project are eligible for payment or reimbursement out of grant proceeds, Such services must be performed by outside firms or individuals, Direct staff costs incurred by the Grantee for these types of services are not grant-eligible costs. The amount of grant -2- ~ proceeds which may be used for these professional services costs must not exceed three percent (3%) of the total grant amount. 3.03 Administ,"ation Costs of Grant. The Grantee agrees to maximize the use of its own personnel and internal services in taking the steps necessary to perform the Project and minimize the administrative costs associated with the perfonnance of the Project. Grant proceeds may not be used to fund any grant administrative costs. 3.04 Regional Use. The Grantee agrees to perform, operate, and maintain the Project capital assets in a manner consistent with the Council's Transit CIP, Transportation Policy Plan, and other Council-adopted regional transportation policy. The Grantee further agrees that it will not adopt any rules or restrictions hindering regional use of the Project capital assets or sell or remove the Project capital assets from regional use without the express written consent of the Council, either during the grant period or for a period oftwelve (12) years following. IV. ACCOUNTS, RECORDS, AND AUDIT REQUIREMENTS 4.01 Separ"ate Account; Records. The Grantee agrees to establish and maintain a separate account for the Project and to maintain accurate and complete records and accounts relating to the receipt and expenditure of any and all grant funds. Such accounts and records shall be kept and maintained for a period of at least six (6) years following the expiration of the grant period, All costs charged to the Project must be supported by proper documentation, including properly executed payrolls, time records, invoices, contracts, or vouchers, evidencing in detail the nature and propriety of the charges. 4.02 Project Asset Reco,"ds. The Grantee shall maintain a current vehicle record file for each vehicle purchased in whole or in pm1 with grant funds, whether owned by the Councilor the Grantee, and shall make the files available for inspection by the Council upon request and at the conclusion of this regional use period stated in paragraph 3.04. Each file shall include at a minimum: 1. Vehicle identification number; 2. Vehicle maintenance and repair history, including description of maintenance and repair performed, vendor or facility completing the work, cost, date, and mileage; 3. Vehicle equipment check log; 4, Documentation that preventive maintenance was performed according to the schedule established by the vehicle manufacturer and approved by the Council; 5. Vehicle maintenance requests with the date submitted by drivers, including what action was taken and when; 6. Vehicle pre-trip inspection log, signed by the driver. The vehicle maintenance history provided to the Council need not include minor maintenance items, e.g., lights, mirrors, upholstery, and other minor items, 4.03 Audit. The above accounts and records of the Grantee are subject to audit by the Council and may be inspected on the Grantee's premises or otherwise by individuals designated or -3- 11 authorized by the Council at any time following reasonable notification during the grant period and for a period of six (6) years thereafter. V. GENERAL CONDITIONS 5.01 Consultation. The Grantee agrees specifically to review and solicit recommendations and advice from the Council's staff at the earliest possible time if and when the Grantee expects that the following will or may occur: a. Tbe costs for any pOJiion oftbe Project will be bigber than tbe Grantee's projected costs for that portion oftbe Project; or b, The total cost of the Project will exceed the total grant amount. I f the Grantee, for any reason, determines that the Project or any portion of it should not be undertaken, or that there should be a change in the scope or costs of the Project or any pOliion of it, tbe Grantee shall submit to the Council's Regional Administrator a statement describing the situation and giving the reasons for the Grantee's determination. Tbe Grantee may, simultaneously with the submission oftbe statement or within a reasonable time thereafter, recommend for Council approval alternative projects, activities, uses, expenditures, or allocations of grant funds. 5.02 Compliance With Law. The Grantee agrees to comply with the provisions of all applicable state and fed era] laws, including tbose laws pertaining to tbe use of bond proceeds. This grant is financed witb bonds issued in accordance with Federal arbitrage restrictions. The Grantee will not use the grant funds in any way wbicb would cause the bonds to be classified as "Arbitrage Bonds" under tbe Internal Revenue Code. The Grantee will not take any action that would adversely affect the exemption from federal income taxation of the bonds or omit to take any action necessary to maintain such tax exempt status. Further, the Grantee agrees that it is the Grantee's obligation and responsibility, and not the Council's, to comply with all other laws, regulations, and rules relating to activities undertaken in performing the Project. 5.03 Liability. Each party agrees that it will be responsible for its own acts and the results thereof to the extent authorized by law and shall not be responsible for the acts of the other party and the results thereof. TheCounci]'s ]iability shall be governed by the Minnesota Municipal Tort Claims Act, Minnesota Statutes chapter 466, and other applicab]e law. 5.04 Amendments. The terms ofthis agreement may be changed by mutual agreement of the pmiies. Changes shall be effective only upon execution of written amendment(s) signed by authorized representatives of the Council and the Grantee. 5.05 Title to Equipment and Vehicles; Lease Back. The parties agree that, upon acquisition of vehicles by the Grantee using funds granted under this agreement, the Grantee will transfer title to the vehicles and associated equipment purchased with grant funds to the Council at no charge to the Council. The Grantee and the Council agree to execute any documents necessary to effectuate this transfer oftitle. For good and valuable consideration of one dollar ($1) per vehicle per year, receipt of which is hereby acknowledged, the Council will lease the transferred vehicles and associated equipment back to the Grantee for exclusive use by the Grantee in regional public transit service in compliance with paragraph 3.04 of this agreement. Title to equipment and vehicles that are purchased with grant funds and not transferred to the Council must remain in the Grantee's name for the time period indicated in paragraph -4- lJt 3.04, The Grantee shall take reasonable measures to protect and defend the Council's and the Grantee's title interests and shall keep the vehicles and equipment free and clear of any liens, encumbrances, or other claims. 5.06 Ope,"ations and Maintenance. The Grantee is responsible for proper inspection, cleaning, and maintenance of the Project assets purchased in whole or in paJi with grant funds, whether title is held by the Councilor the Grantee. The Grantee agrees to be responsible to operate and maintain the Project assets in good working order for the time period indicated in paragraph 3.04 and to be responsible for any costs of operation and maintenance ofthe Project assets. 5.07 Risk of Loss. The Grantee must procure auto liability and physical damage coverage at full replacement value on vehicles owned by the Council and leased back to the Grantee under this agreement. The Council must be named as an additional insured under the policy. As to equipment and vehicles that are not transferred to the Council as provided in this agreement, the Granteebears the risk of loss of" damage to, or destruction of any equipment and vehicles purchased with grant funds and any buildings or other improvements to land accomplished in whole or in pali with grant funds, At a minimum, the Grantee shall secure appropriate insurance or establish a fund for appropriate self- insurance'to cover full replacement value and to protect the Council's investment of regional funds for the time period indicated in paragraph 3.04. 5.08 Equal Oppo,.tunity; Affirmative Action. The Grantee agrees to comply with all applicable laws, rules, and regulations relating to nondiscrimination and affirmative action in public purchase, involvement, and use. In particular, the Grantee agrees not to discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, sexual orientation, national origin, marital status, disability, status with regard to public assistance, membership or activity in a local civil rights commission, or age, and to take affirmative action to insure that applicants and employees are treated equally with respect to all aspects of employment, rates of pay and other forms of compensation, and selection for training. In addition, the Grantee agrees to include affirmative action and equal employment provisions in any written contract entered into after the date of execution ofthis agreement which involves the provision of work or services which will be paid for in whole or in part out of the grant proceeds. 5.09 Permits, Bonds, and App,.ovals. The Grantee is responsible for obtaining all applicable local and state licenses, permits, bonds, and authorizations necessary for performing the Project. 5.10 Acknowledgments. The Grantee shall appropriately acknowledge the financial assistance provided by the Council in any promotional materials, press releases, reports, and publications relating to the Project. 5.11 Construction. This agreement is intended to assist in implementing the Council's Transit ClP and Transportation Policy Plan/Development Guide Chapter and shall be interpreted consistently with them. 5.12 Effect of Project Close-out. The Grantee agrees that Project close-out does not invalidate continuing obligations imposed on the Grantee by this agreement. Project close-out does not alter the Council's authority to disallow costs and recover funds on the basis of a later audit or other review, and does not alter the Grantee's obligation to return any funds due to the Council as a result of later refunds, corrections, or other transactions. -5- ~ IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their duly authorized representatives. METROPOLITAN COUNCIL Approved as to form: By: Regional Administrator Office of General Counsel Date: CITY OF PRIOR LAKE By: Its: Date: By: Its: Date: 01 125-00.doc -6- ~