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HomeMy WebLinkAbout8C CH21 and TH13 Construction Cooperative Agreement with Scott County Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 22, 2019 AGENDA #: 8C PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A CONSTRUCTION COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR COST SHARING OF THE CH21/TH13 CORRIDOR IMPROVEMENT PROJECT (CITY PROJECT #TRN19-000001) GOAL AREA AND OBJECTIVE: DISCUSSION: Transportation & Mobility 1. Focus on key corridors that take advantage of collaboration with state and county projects. Introduction The purpose of this agenda report is to enter into a construction cooperative agreement with Scott County for cost-sharing of the CH21 and TH13 corridor improvement project within the City of Prior Lake. History In 2016, Scott County applied for funding for improvements to State Highway 13 and County Highway 21. The application was approved, and federal funding was programmed for this project for the year 2019. The Preliminary Design process was initiated in early 2017. Scott County contracted with the engineering firm of Bolton & Menk to lead this process. As part of the development of a preliminary design, a Project Management Team (PMT) was created to provide input and facilitate public engagement on design concepts for these improvements. The public engagement process began on June 29, 2017 at an open house where the public was asked to provide direction on the project purpose, goals, objectives, history, opportunities, and impacts on the project area. Based on this information seven project goals were established: 1. Enhance vehicle mobility on major transportation corridors 2. Maintain and enhance local roadway system 3. Safely accommodate all users along the major transportation corridors 4. Provide a comprehensive network for nonmotorized transportation that is compatible with the major transportation corridors 2 5. Provide infrastructure improvements compatible with the natural and human environment 6. Develop a financially responsible infrastructure implementation plan 7. Preserve and enrich the character of Downtown Prior Lake Based on these project goals, multiple project alternatives were developed by the PMT. During the public engagement process, the PMT took the feedback they received and spent more time evaluating the alternatives and further reduced the alternatives down to four. The PMT ultimately recommended Alternative A-2 be selected to move forward with final design. This recommendation was provided to the City Council on November 6, 2017 during the regular scheduled City Council meeting. At that meeting, the City Council approved Resolution 17-180 approving the PMT recommendation of Alternative A-2 for the design of the CH21 and TH13 improvement project. Current Circumstances The final design of the project has been underway since the approval of the preferred alternative. As part of the design process, four new advisory committees were created. They are the Downtown Character Advisory Committee, the Construction Advisory Committee, the Downtown Prior Lake Construction Advisory Committee, and the South Lake Village Construction Advisory Committee. The role of the Downtown Character Advisory Committee was to provide a recommended streetscape layout for the project. The Construction Advisory Committee provided input on the proposed construction staging for the project. The Downtown Prior Lake and South Lake Village Construction Advisory Committees provided specific input on how the construction will impact businesses in those locations. These committees will also be involved with project communications during construction. These four committees met several times in 2018 and their input was incorporated into the final design. An open house was held on May 16, 2018 to present the status of the final design to the public. The presentation included information pertaining to the construction staging, construction communication strategy, and proposed streetscaping. After the open house, the street scaping was further refined and presented to the City Council at a work session that was held on June 18, 2018. Conclusion The final design is now 100% complete. Scott County is requesting that the City Council authorize the Mayor and City Manager to execute a Construction Cooperative Agreement outlining the City’s cost share of the proposed improvements. City Staff recommend approval of the attached resolution authorizing the Mayor and City Manager to enter into a Construction Cooperative Agreement with Scott County for the CH21/TH13 Corridor Improvement Project. 3 ISSUES: The cost split for this project is consistent with the original Scott County policy that has been in place for many years. The County is in the process of updating their cost share policy, but those revisions have not yet been adopted and implemented so they are not included in this agreement. One of the more significant proposed changes to the cost share policy by the County is to split the cost of right-of-way acquisition evenly between the County and the City. Since the cost share policy was not revised prior to this agreement, the cost of right-of-way acquisition is being completely covered by the County. The City is providing the property on the northwest corner of Main Avenue and CH21 formerly known as Flowers Naturally to the project. The proposed Construction Cooperative Agreement does not provide any credit to the City for providing this property. However, the City and County are continuing to work together to transfer ownership of the properties along the south side of CSAH 42 between Commerce Avenue and Rutgers Street from the County to the City under the condition that the property be used for future commercial development and supporting infrastructure. It is the staff’s intent to bring this agreement to the city council at the February 4, 2019 meeting. Each party paid costs associated with their respective properties and the agreement is intended to reflect this fact so that neither party will be responsible for payment except for the relevant improvements at such time they are built. FINANCIAL IMPACT: When this project was presented to the City Council on August 6, 2018 for approval of the plans, the estimated City costs were broken down as follows; Construction $ 800,000 Program Delivery (25% of Construction) $ 200,000 Sewer & Water $ 350,000 Aesthetics $ 800,000 Total $2,150,000 As the project has continued to move forward the City’s estimated costs have increased slightly. The Capital Improvement Plan that was adopted by the City Council in 2018 included $2,350,000 for this project. The Construction Cooperative Agreement that is before the City Council this evening includes a total City cost of $2,030,694. Keep in mind that this is based on the current engineer’s estimate and will be adjusted based on actual bids. The cost will also fluctuate based on the final quantities once the construction work is completed. 4 The City will have additional costs associated with this project including the demolition of the Flowers Naturally building and relocating the City’s digital message sign currently located at the intersection of CH21 and Arcadia. The demolition costs, including associated professional services, will be approximately $120,000 and the current estimates for relocating the message sign are approximately $60,000. Based on these estimates and the cost share agreement with the County, the total City cost is estimated to be $2,210,694. ALTERNATIVES: 1. Approve a resolution authorizing the Mayor and City Manager to enter into a Construction Cooperative Agreement with Scott County for cost sharing of the CH21 and TH13 Corridor Improvement Project. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED MOTION: A motion and a second for approval of Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A CONSTRUCTION COOPERATIVE AGREEMENT WITH SCOTT COUNTY FOR COST SHARING OF THE COUNTY ROAD 21 AND STATE HIGHWAY 13 IMPROVEMENT PROJECT Motion By: Second By: WHEREAS, Scott County has identified the CH21 and TH13 Intersection Improvement Project within the City of Prior Lake for construction in 2019; and WHEREAS, the cost to complete this project is proposed to be partially funded by the City of Prior Lake; and WHEREAS, Scott County has prepared a Construction Cooperative Agreement outlining the financial obligations of the City for this project. 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 hereby authorized to enter into the Construction Cooperative Agreement with Scott County for cost sharing of the CH21 and TH13 Intersection Improvement Project. 3. The City Council authorizes funding for this project as shown: Tax Levy $1,000,000 MSA $1,000,000 Water Utility $ 100,000 Sewer Utility $ 250,000 $2,350,000 4. Construction costs will be recorded in the Construction Fund (#501-43500.00-55010.00 TRN19-000001) for the CH21/TH13 Intersection Improvement Project. 5. The City Council authorizes the intent to issue General Obligation Bonds for this project. 6. Proceeds from the bond sale will be deposited in the Construction Fund. 7. The City has determined to make a declaration of official intent (“Declaration”) to reimburse certain estimated costs for this project from proceeds of bonds expected to be in an amount not to exceed $1,020,000 in accordance with the Internal Revenue Service Reimbursement Regulations (Treasury Reg. 1.150-2). 8. The City may declare other separate statements of reimbursement intent in connection with specific public improvements projects as they are initiated under Minnesota Statutes, Chapters 429 and 475, or for other capital projects, with the understanding that such additional declarations of reimbursement intent will supplement this resolution. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. PASSED AND ADOPTED THIS 22ND DAY OF JANUARY 2019 VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager County Project No. CP 21-27 City of Prior Lake County of Scott 1 CONSTRUCTION COOPERATIVE AGREEMENT THIS AGREEMENT, made and entered into this ____th day of January, 2019, is by and between the County of Scott, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "County" and the City of Prior Lake, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "City". RECITALS: A. County and the City seek to improve County Highway (CH) 21 by reconstructing the CH 21/TH 13 intersection in Prior Lake including on CH 21 from West Ave intersection to Franklin Trail E which will reconstruct intersections at Main Ave, Duluth Street and TH 13/Pleasant St as partial ¾ intersections, add roundabouts at TH 13 and Arcadia Ave intersections, add turn lanes, replace trails/sidewalks, add pedestrian amenities including ADA upgrades and transit amenities. The Project also includes grading, paving, curb and gutter, storm sewer, sanitary sewer and other related improvements (collectively hereinafter referred to as the Project). B. The above described Project lies within the corporate limits of the City. C. The County Engineer has prepared an estimate of quantities and unit prices of material and labor for the above described Project and an estimate of the total cost for contract work in the sum of Ten Million Two Hundred and Eighty One Thousand Nine Hundred Forty Seven dollars and no cents. D. It is contemplated that said improvement work shall be carried out by the parties under the provisions of Minn .Stat. Sec. 162.17, subd. 1. NOW, THEREFORE, IT IS HEREBY AGREED: 1. The recitals above are incorporated herein. 2. The County shall advertise for bids for the work and construction of the aforesaid Project, No. CP 21-17, receive and open bids pursuant to said advertisement and enter into a contract (“Contract”) with the successful bidder at the unit prices specified in the bid of such bidder, according to law in such case provided for counties. The Contract will include the plans and specifications prepared by the County or its agents, which plans and specifications are by this reference made a part hereof. County Project No. CP 21-27 City of Prior Lake County of Scott 2 3. County shall have overall authority to administer the Contract and inspect the construction of the Contract work for the Project. County shall have ultimate authority in initiating and determining change orders, supplemental agreements and final quantities. The City Engineer shall cooperate with the County Engineer and his staff at their request to the extent necessary, but shall have no other responsibility for the supervision of the work other than the City’s utility work which is included in the project. The City Engineer shall supervise and shall have the authority in initiating and determining change orders, supplemental agreements and final quantities for the City utility work in the City’s right of way. The County will provide reasonable accomodations for said utility work. 4. City shall reimburse the County for its share in the construction cost of the Contract work as apportioned and set forth in the Notes column of the Division of Cost Summary attached and incorporated as Exhibit "B". It is further specifically agreed that the estimate referred to in this agreement is only a preliminary estimate of the construction cost for the Contract work on the Project and that the unit prices set forth in the Contract and the final quantities as measured by the County Engineer shall govern in computing the total final Contract construction cost for apportioning the cost of the Project according to the provisions of this paragraph. 5. The City further agrees to pay a share of additional costs calculated as a percentage of the City's share of the total Contract construction cost, as follows: a. Engineering, which includes planning, design and preparation of plans and specifications, at ten percent (10%); b. Construction Engineering, which includes the complete staking, inspection and supervision of the construction, excluding the Munipal Utility Construction Engineering costs, at eight percent (8%); c. Municipal Utility Construction Engineering costs at four percent (4%); d. Contract Administration at three percent (3%). 6. City agrees to provide any and all permanent or temporary right-of-way at no cost to the County on any property currently owned by the City and needed by Scott County for the completion of the Project. 7. City shall, at its own expense, remove and replace all City owned signs that are within the construction limits of the Project. 8. Upon completion of the Project, City shall maintain all aesthetic elements constructed with the Project and all aesthetic corridor lighting constructed with the Project at sole cost to the City. If City does not maintain such elements the County shall be entitled to remove such elements and restore the corridor to the then current County design standards upon 15 days written notice and opportunity to cure. County’s cost for removal, including all labor, equipment and materials costs, will be chargable to City. 9. County shall maintain standard intersection lighting. County Project No. CP 21-27 City of Prior Lake County of Scott 3 10. The City shall provide and/or perpetuate an adequate electrical power supply to the all lights installed as part of this Project and shall provide and/or continue to provide necessary electrical power for its operations at the sole cost and expense of the City. 11. Upon completion of the Project, the City shall, at sole cost to the City, maintain all trail and sidewalks constructed with the Project including snow, ice control and debris management. 12. Upon completion of the Project, the City, at sole cost to the City, shall maintain all sanitary and storm sewer appurtenances, including all storm water ponds. 13. Initial pavement striping and markings shall be included as part of the Project. The County shall be responsible for all subsequent pavement striping and markings on its county roads as required after the initial work and shall be responsible for one hundred percent (100%) of those subsequent related costs. The City shall be responsible for all subsequent striping and markings on its city roads, including pedestrian markings across its roadways, as required after the initial work and shall be responsible for one hundred percent (100%) of those subsequent related costs. 14. Upon completion of the work, the County shall maintain and repair the Rectangular Rapid Flashing Beacon (RRFB) at the sole cost and expense of the County. The City shall provide and/or perpetuate an adequate electrical power supply to the RRFBs installed as part of this Project and upon completion of said RRFB installations shall provide and/or continue to provide necessary electrical power for its operations at the sole cost and expense of the City. 15. County reserves the right not to issue any permits for a period of five (5) years after completion of the Project for any service cuts in the roadway surfacing of the County Highway included in the Project for any installation of underground utilities which would be considered as new work; service cuts shall be allowed for the maintenance and repair of any existing underground utilities. 16. A future County Global Maintenance Agreement, upon execution, may supercede maintenance responsibilities stated in this Agreement. 17. The City shall, based on the Contract price, deposit with the Scott County Treasurer one hundred percent (100%) of the estimated City's share of the construction and additional engineering costs as set forth in this Agreement as payment within thirty (30) days after award of Contract or execution of this Agreement, whichever is later. The final amount of the City's share of construction and additional engineering costs of the Project shall be determined upon completion of the Project and any amount remaining due to the County shall be reflected in the County's final, itemized, statement of the Project costs submitted to the City. In the event the initial payment exceeds the City's share of these final costs, such overpayment shall be returned to the City by the County. County Project No. CP 21-27 City of Prior Lake County of Scott 4 18. The County Engineer shall prepare monthly progress reports as provided in the specifications. A copy of these reports shall be furnished to the City monthly. 19. Since each party is a political subdivision of the State of Minnesota, each party shall maintain general liability and automobile liability coverage protecting itself, its officers, agents, employees and duly authorized volunteers against any usual and customary public liability claims to the limits prescribed under Minn. Stat. Sec. 466.04 and Workers’ Compensation in accordance with the Minnesota statutory requirements. Said policies shall be kept in effect during the entire term of this Agreement. 20. All records kept by the City and the County with respect to the Project shall be subject to examination by the representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the activities of the County or City pursuant to this Agreement shall be governed by Minnesota Statutes Chapter 13, as amended, and the Minnesota Rules implementing such Chapter now in force or hereafter adopted. 21. Neither party, its officers, agents or employees, either in their individual or official capacity, shall be responsible or liable in any manner to the other party or any other person or entity for any claim, demand, damages, action or cause of action of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of the described obligations, work, maintenance, restoration, repair or replacement work by the other party, or arising out of the negligence of any contractor under any contract let by the other party for the performance of said work; ; and each party agrees to defend at its sole cost and expense, indemnify, save, keep and hold harmless the other party for any claim, demand, action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising in connection with or by virtue of performance of its own work as provided herein. Each party’s obligation to indemnify th e other under this clause shall be limited in accordance with the statutory tort liability limitation as set forth in Minnesota Statutes Chapter 466.04 to limit each party’s total liability for all claims arising from a single occurrence, including the other party’s claim for indemnification, to the limits prescribed under 466.04. It is further understood and agreed that the Parties’ total liability shall be limited by Minnesota Statute Section 471.59, Subdivision 1(a) as a single governmental unit. 22. It is further agreed that any and all employees of each party and all other persons engaged by a party in the performance of any work or services required or provided herein to be performed by the party shall not be considered employees, agents or independent contractors of the other party, and that any and all claims that may or might arise under the Worker's Compensation Act or the Unemployment Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a County Project No. CP 21-27 City of Prior Lake County of Scott 5 consequence of any act or omission on the part of said employees while so engaged shall be the sole responsibility of the employing party and shall not be the obligation or responsibility of the other party. 23. The provisions of Minn. Stat. Sec. 181.59 and of any applicable local ordinance relating to Civil Rights and discrimination and the affirmative action policy statement of Scott County shall be considered a part of this Agreement as though fully set forth herein, including Exhibit A, which is attached and hereby incorporated. 24. Pursuant to Minn. Stat. Sec. 16C.05, subd. 5, the books, records, documents, and accounting procedures and practices of the County and City pursuant to this Agreement shall be subject to examination by the County, City and the State Auditor. Complete and accurate records of the work performed pursuant to this Agreement shall be kept by the County and City for a minimum of six (6) years following termination of this Agreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the County or the City regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the County or City notifies each party in writing that the records no longer need to be kept. 25. The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts located with the County of Scott, State of Minnesota. Litigation, however, in the federal courts involving the parties shall be in the appropriate federal court within the State of Minnesota. 26. In the event any provision of this Agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability would cause the Agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 27. The County’s Authorized Agent for the purpose of the administration of this Agreement is Miranda Chard, Program Specialist, or her successor. Her current address and phone number are Scott County Highway Department, 600 Country Trail East, Jordan, MN 55352, (952) 496-8043. 28. The City’s Authorized Agent for the purpose of the administration of this Agreement is Jason Wedel, or his successor. His current address and phone number are 4646 Dakota St SE, (952) 447-9832. Any change in name, address, or telephone shall be noticed to the other party. County Project No. CP 21-27 City of Prior Lake County of Scott 6 IN TESTIMONY WHEREOF, The parties hereto have caused this Agreement to be executed by their respective duly authorized officers as of the day and year first above written. CITY OF PRIOR LAKE (SEAL) By And Kirt Briggs, Mayor Frank Bolyes, City Manager Date Date COUNTY OF SCOTT ATTEST: By By Lezlie A. Vermillion, County Administrator Barb Weckman Brekke Chair of Its County Board Date Date Upon proper execution, this agreement RECOMMEND FOR APPROVAL: will be legally valid and binding. By By Jeanne Andersen, Assistant County Attorney Anthony J. Winiecki, County Engineer Date Date EXHIBIT A EXHIBIT B Division of Cost Summary Exhibit C