05-13-2026 Council Packet - Laserfiche WebLink

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Staff Report To: Mayor Fischer and Members of the City Council From: Eric Seaburg, City Engineer Date: May 13, 2026 Re: MnDOT Agency Agreement (Contract No. 1062987) Federal Participation in Advance Construction for Little Canada Road Project. Action To Be Considered: Motion to approve, table, or deny the following: • Resolution authorizing an Agency Agreement with MnDOT for Federal Participation in Advance Construction (MnDOT Contract No. 1062987) for the Little Canada Road Project. Background: The city is moving forward with the Little Canada Road Improvements Project with federal funding. Because the federal share is over $5,000,000, MnDOT requires the city to enter into a specific type of agreement called an Agency Agreement for Federal Participation in Advance Construction. In simple terms, this agreement is needed so the project can keep moving while the timing of federal reimbursement is coordinated through MnDOT. By approving MnDOT Contract No. 1062987, the City formally designates MnDOT as the City’s agent (under Minn. Stat. 161.36) to handle the federal funding paperwork for this project. MnDOT will work with the Federal Highway Administration to authorize the federal funds and, when available, reimburse the City for the federal share of eligible project costs that the City pays upfront. The agreement estimates the total project cost at $9,359,000, with anticipated federal funding of $6,296,500. The City remains responsible for the local share and for any costs that are not eligible for federal reimbursement. Approving the agreement is necessary so the city can receive the federal reimbursement and continue delivering the project on schedule. This agreement remains in effect for up to five (5) years (or until the project’s federal funding obligations are completed) and uses the processes already established in the City’s existing federal funds agency agreement with MnDOT (Contract No. 1052070) for bidding, construction administration, and reimbursement. Source Of Funds: The project includes an anticipated federal share of $6,296,500 (to be reimbursed when obligation authority is available) and a local share for remaining costs and any non-eligible items. The project is included in the City’s Capital Improvement Plan; staff will continue to monitor cash-flow timing associated with advance construction and subsequent federal reimbursement.