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MEMORANDUM
TO: Mayor Hedberg and Members of the Prior Lake City Council
FROM: Frank Boyles, City Manager
DATE: September 16, 2014
RE: Special City Council Meeting on Tuesday, September 16, 2014
A Special City Council Meeting has been scheduled and notice posted for Tuesday,September 16, 2014
at 4:45 p.m.There is one item for discussion: Highway 13/ 150th St. Intersection Improvement Project.
An agenda report, resolution, and cost sharing agreement are attached in Dropbox for your infor-
mation. Please let me know if you have any questions.
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CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 16, 2014
AGENDA#: 1
PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AFFIRMING OPTION 513 FOR
THE 150TH STREET/TH 13 IMPROVEMENT PROJECT AND ADOPTING A
COST SHARING AGREEMENT WITH THE CITY OF SAVAGE
DISCUSSION: Introduction
The purpose of this agenda item is to consider approval of an agreement with the
City of Savage regarding cost for the 150th Street and TH 13 Improvement Project.
A resolution is included for that purpose.
History
At the September 8th, City Council meeting. The City Council selected alternative
513 for the for the construction of a full access intersection at 150th Street and High-
way 13. While it was clearly acknowledged that this option was more expensive,
the Prior Lake City Council felt it provided the best and safest intersection configu-
ration in the long term. Savage by contrast, was comfortable with the Zinran inter-
section as well as it's more modest cost. The previous week, Savage selected op-
tion 6D which places the signal at Zinran and 150th Street. The background mate-
rials regarding this topic were provided with the agenda report on September 8th
and remains available in the city dropbox or under the document center of the City
website.
Current Circumstances
In an effort to obtain consensus on the roadway alignment and retain MNDOT
funding for a project in 2015, staff has been working to develop a cost share
agreement that would allow us to proceed with the signalization project at 150th
Street (Concept 5B). The general terms of the agreement include the City of
Prior Lake's commitment to cover the City of Savage's share of the construction
cost difference between Concepts 5B and 6D. Additionally, the City of Prior Lake
would agree to cover any increase in land acquisition costs above those currently
included in the engineers cost estimate for Concept 5B. The city attorney's office
has recently acquired land from a church and residential property in Savage.
They examined the allocations proposed in the project and found them to be re-
alistic in their experience. Of course the final purchase results are all that matter.
Like all City projects, the bids received will determine the actual costs. If the
bids are unreasonably high, the funding partners may elect not to proceed. A
subsequent cooperative agreement will address the process, timeline, and roles
of each funding partner.
Concept 513 contemplates changes in traffic patterns at Oakland Beach/Zinran and
Glascow to improve the safety of the corridor. The intersection of Rustic Road and
Highway 13 will remain the same. In this alternative Glascow would be relocated
to connect to 150th Street. The vehicles using Glascow would use the new signal-
ized intersection to access highway 13. Oakland Beach/Zinran would be con-
verted to a right in / right out. Depending on movements, some Zinran drivers
would use the new 150th Intersection. Oakland Beach drivers could use the un-
changed Rustic Road intersection or the new 150th intersection for some traffic
movements. While improvements at Rustic Road will not take place with this pro-
ject, the signal at 150th and Highway 13 will assist in providing gaps in traffic for left
turn movements.
Safety for church users, school traffic, and the general public will be greatly im-
proved with the 5B concept. Pedestrian facilities (trails and sidewalks) contem-
plated with this concept will also greatly improve crossing of Highway 13 and gen-
eral pedestrian travel along this portion of the Highway 13 corridor. We will work
with the church and neighborhoods to address safety concerns during the design
process.
Conclusion
The City Council has already determined that the more expensive 150th intersec-
tion is better. In order to proceed with this project, it must determine tonight if it is
willing to enter into the cost sharing agreement with Savage to allow the project to
move forward.
ISSUES: This agreement is one final attempt to agree on a project concept for delivery of
a project in 2015. If the City Councils of Prior Lake and Savage do not reach
agreement on the selected concept a project can not proceed. MNDOT has ad-
vised us that the funds will be reallocated if this agenda item is not approved by
both City Councils. If that happens, the probability of receiving the same size al-
lotment anytime soon is low. It took approximately four years to set up funding
with MNDOT for this project.
Additional bonding would be needed to fund the added amounts for this project.
This will result in tax Levy increases in future City budgets.
FINANCIAL The estimated cost for option 5B is $6,502,000. The MNDOT contribution is pro-
IMPACT: posed to be $2,102,000. Savage's portion would be $1,771,500 (computed as half
the remaining cost for option 6D). The difference between 5B and 6D is $857,000
and would be included in Prior Lake's share of the costs. In addition, the City of
Prior Lake is responsible for right of way costs exceeding the $862,000 estimate
contained in the engineer's report. The City Attorney's office has recently acquired
church and residential property. Based upon that experience, they believe the
right of way cost estimate is realistic for land acquisition purposes. City staff are
also estimating $200,000 in water and sewer system updates, which have been
reflected in the CIP to replace hydrant valves and services if necessary. Funds for
this work are reflected in the utility fund..
The City of Prior Lake cost for this project is estimated at $2.83 Million based on
the cost allocation formula reflected in the cost sharing agreement and including
the $200,000 in estimated utility updates. The additional $427,500 of new City of
Prior Lake allocation would be funded by MSA, street oversizing, and tax levy.
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ALTERNATIVES: 1. Approve a Resolution Reaffirming Option 5B for the TH 13 and 150th Street Im-
provement Project and adopting a cost sharing agreement with the City of Sav-
age.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Alternative#1
MOTION:
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RESOLUTION 14-xxx
A RESOLUTION REAFFIRMING OPTION 5B FOR THE HIGHWAY 13/150TH STREET IMPROVEMENTS
AND ADOPTING A COST SHARING AGREEMENT WITH THE CITY OF SAVAGE
Motion By: Second By:
WHEREAS, improving the safety of the Trunk Highway 13/150th Street intersection is a high priority for the
cities of Prior Lake and Savage and the Minnesota Department of Transportation; and
WHEREAS, the 2014-2018 Capital Improvement Program identifies the improvement of the Trunk Highway
13/150th Street intersection in 2015; and
WHEREAS, the City of Savage and the Minnesota Department of Transportation have also programmed
the improvement of the Trunk Highway 13/150th Street intersection into their capital
improvement plans for construction in 2015; and
WHEREAS, Short Elliot and Hendrickson ("SEH") prepared a Preliminary Design Study Report dated
February 12, 2010. The cost of the study was shared equally by the cities of Savage and Prior
Lake; and
WHEREAS, SEH prepared the TH 13 at 150th Street Area Alternatives Analysis dated August 27, 2014;
and
WHEREAS, several concepts have been presented for the design of the improvements; and
WHEREAS, at a joint Prior Lake and Savage workshop on September 2, 2014 the various alternatives
were discussed; and
WHEREAS, at the following Council meeting in Resolution No. R-14-106, Savage adopted alternative
6D; and
WHEREAS, the Prior Lake City manager is recommending that the Prior Lake City Council adopt
alternative 513 and that Prior Lake pay the cost difference between 5B and 6D plus all
acquisition costs above the estimate provided by SEH for 56 as set forth in the attached cost
sharing agreement("Cost Sharing Agreement"); and
WHEREAS, Savage is willing to proceed with alternative 513 on the condition that Prior Lake enter into the
attached Cost Sharing Agreement.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
as follows:
1. The recital set forth above are incorporated herein.
2. The City Council hereby reaffirms Resolution No. 14-134 which adopted alternative 5B.
3. The City Council hereby approves the Cost Sharing Agreement between the City of Prior Lake and the
City of Savage regarding Highway 13/150th Street Improvements.
4. The City Council hereby authorizes the Mayor and City Manager to execute the attached Cost Sharing
Agreement on behalf of the City of Prior Lake.
PASSED AND ADOPTED THIS 16th DAY OF SEPTEMBER, 2014.
VOTE Hedberg Keeney McGuire Morton Soukup
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
http://splash/teams/am/October 4 2010109 16 14(Tuesday)Special Meeting/091614 Resolution Reaffirming Highway 13-150th selection of 5B.docx
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COST SHARING AGREEMENT
BETWEEN THE CITY OF PRIOR LAKE
AND THE CITY OF SAVAGE
REGARDING HIGHWAY 13/150TH STREET IMPROVEMENTS
THIS COST SHARING AGREEMENT("Agreement")is entered into between the CITY
OF PRIOR LAKE,a Minnesota municipal corporation(hereinafter referred to as "Prior Lake") and
the CITY OF SAVAGE, a Minnesota municipal corporation (hereinafter referred to as "Savage"),
with the parties collectively hereinafter referred to as the "Cities or"Parties".
WHEREAS, Savage, Prior Lake and the Minnesota Department of Transportation
("MnDOT") are working cooperatively to design and construct improvements to Highway 13 at
the Trunk Highway 13/150th Street intersection(the "Project");
WHEREAS, several alternatives for the improvements have been prepared and
presented to the Cities by their consultant Short Elliot Hendrickson(SEH);
WHEREAS, MnDOT will provide funding in the amount of Two Million One Hundred
Two Thousand and 00/100 Dollars ($2,102,000.00) if the Cities agree upon either option 5B, 5G,
6C or 6D, with the remaining funding provided by the Cities;
WHEREAS, it was anticipated that the remaining funding for the Project would be
shared equally by the Cities; and
WHEREAS, SEH estimated the project costs for all alternatives including 5B and 6D.
Attached hereto as Exhibit A is the August 27, 2014 estimate of SEH for four project alternatives
including 5B and 6D. The estimated Project costs include construction, engineering and right of
way/easement costs (hereinafter"Estimated Project Costs");
WHEREAS,the SEH August 27, 2014 Estimated Project Costs for alternative 5B is
$6,502,000 which included $862,000 for right of way/easement costs;
WHEREAS,the SEH August 27, 2014 Estimated Project Costs for alternative 6D is
$5,645,000;
WHEREAS, the Estimated Project Costs for alternative 5B contemplated that each City
would pay $2,200,000;
WHEREAS,the difference in Estimated Project Costs between alterative 6D and 5B, is
$857,000;
WHEREAS, at a joint Prior Lake and Savage workshop on September 2, 2014 the
various alternatives were discussed. At the City of Savage City Council meeting following
the workshop,the Savage City Council adopted a Resolution selecting alternative 61);
WHEREAS, at Prior Lake City Council meeting on September 8, 2014 the Prior Lake
City Council adopted a Resolution selecting alternative 5B; and
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WHEREAS, Savage is willing to proceed with alternative 5B on the condition that Prior
Lake enter into this Agreement.
NOW, THEREFORE, in consideration of their mutual covenants the parties agree as
follows:
1. PROJECT COST
In consideration of Savage's adoption of alternative 513, Prior Lake agrees to pay the
entire difference between the Estimated Project Costs of alternatives 5B and 6D, which is
$857,000. The payments to be made by each City for the Estimated Project Costs are as follows:
Prior Lake: $1,771,500 (1/2 cost of 6D after MnDOT contribution)
$ 857,000 (Difference between cost of 5B and 6D)
Total $2,628,500
Savage: $1,771,500 (1/2 cost of 6D after MnDOT contribution)
Total $1,771,500
2. PROJECT COST - OVERRUNS.
If the actual final project costs, ("Final Project Costs") excluding for this purpose right of
way/easement costs ("Acquisition Costs")but including construction and engineering costs,
exceeds $5,640,000 ($6,502,000—$862,000 [Acquisition Costs] = $5,640,000) each City shall
pay one-half of the Final Projects Costs incurred above $5,640,000. In the event that Final
Project Costs as defined in this paragraph plus Acquisition Costs are less than$6,502,000 Prior
Lake's contribution as set forth in paragraph 1 above shall decrease by the amount the Final
Project Costs plus Acquisition Costs less than $6,502,000,provided in no event shall Prior Lake
pay less than what Savage is required to pay.
3. ACQUISITION ESTIMATE.
The Estimated Project Costs for alternative 5B include Acquisition Costs of$862,000. In
consideration of Savage's adoption of alternative 513, Prior Lake agrees to pay toward the project
all acquisition costs in excess of$862,000. Acquisition Costs include in addition to the land
costs, attorney's fees, and if necessary court and commissioner hearing costs.
4. MISCELLANEOUS PROVISIONS.
A. Remedies/Damages. In the event of a breach of the Agreement,the Cities have such rights
and remedies as it may have at law or equity for any breach of this Agreement including specific
performance provided however neither party shall be entitled to recover punitive,indirect, special,
consequential or incidental damages. The prevailing party in any litigation or arbitration shall be
entitle to an award of its reasonable attorney's fees.
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B. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement
supersedes all oral agreements and negotiations between the parties relating to the subject matter
hereof as well as any previous agreements presently in effect between the parties relating to the
subject matter hereof. Any alterations,amendments,deletions,or waivers of the provisions of this
Contract shall be valid only when expressed in writing and duly signed by the parties, unless
otherwise provided herein.
C. Mediation. Each dispute, claim or controversy arising from or related to this agreement
shall be subject to mediation as a condition precedent to initiating arbitration or legal or equitable
actions by either party. Unless the parties agree otherwise, the mediation shall be in accordance
with the Commercial Mediation Procedures of the American Arbitration Association then
currently in effect. A request for mediation shall be filed in writing with the American Arbitration
Association and the other party. No arbitration or legal or equitable action may be instituted for a
period of 90 days from the filing of the request for mediation unless a longer period of time is
provided by agreement of the parties. Cost of mediation shall be shared equally between the Cities.
Mediation shall be held in the City of Prior Lake or City of Savage unless another location is
mutually agreed upon by the parties. The parties shall memorialize any agreement resulting from
the mediation in a mediated settlement agreement, which agreement shall be enforceable as a
settlement in any court having jurisdiction thereof.
D. Severability. The provisions of this Agreement are severable. If any portion hereof is, for
any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not
affect the remaining provisions of this Agreement.
E. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota.
F. Counter2arts. This Agreement may be executed in multiple counterparts, each of which
shall be considered an original.
IN WITNESS WHEREOF,this Agreement has been executed as of the day and year first
above written.
[Remainder of Page Intentionally Left Blank. Signature Pages Follow.]
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CITY OF PRIOR LAKE
BY:
Kenneth L. Hedberg, Mayor
BY:
Frank Boyles, City Manager
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CITY OF SAVAGE
By:
Janet Williams, Mayor
By:
Barry Stock, City Administrator
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EXHIBIT A
SEH August 27,2014
TH 13 and 150th Street Area Safety Improvements-2015 Project
Concept Cost Comparison 27-Aug-14
150th Signal Zlnran Signal
Cost Element Concept SBs Concept SGs Concept 6C' Concept 6D°
Construction' $ 4,700,000 $ 4,900,000 $ 4,400,000 $ 4,400,000
Engineerine $ 940,000 $ 980,000 $ 880,000 $ 880,000
Subtotal $ 5,640,000 $ 5,880,000 $ 5,280,000 $ 5,280,000
R/W31' $ 862,000 $ 862,000 $ 241,000 $ 365,000
Total $ 6,502,000 $ 6,742,000 1$ 5,521,000 $ 5,645,000
Notes
1.Construction cost for Concepts 58 and 5G includes Bethesda Church Site remediation
2. Design and construction administration assumed 20%
3.Additional right of way need for stormwater retention and treatment Is undetermined
4.Temporary construction easements not yet identified
S.Concept 5B-Signal at 150th Street with"tight curves"on Cates Lake Drive
6.Concept SG-Same as 58,but extended northerly on TH 13 to include a NB left turn lane to Rustic Road
7. Concept 6C-Signal at Zinran with 20 degree Intersection skew
8.Concept 6D Signal at Zinran with 10 degree intersection skew
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