HomeMy WebLinkAbout2009-073 Council Resolution•
Council MemberStoltz introduced the following resolution and moved its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 09-73
RESOLUTION APPROVING JOINT POWERS AGREEMENT
WITH COUNTY OF ANOKA
I -35E1 CSAH 14 (MAIN STREET) INTERCHANGE RECONSTRUCTION
WHEREAS, the City of Lino Lakes, and the County of Anoka agree it is in the best
interest of the traveling public to reconstruct the Interchange of I -35E and County State
Aid Highway 14 (Main Street) including the bridge over I -35E, hereinafter referred to as
the "Project"; and
WHEREAS, the City and County consider it mutually desirable to proceed with the
preliminary engineering & environmental documentation, final design, land acquisition,
construction, and construction engineering & administration for the reconstruction of the
Project; and
WHEREAS, the City and County agree that the cost of land acquisition and the non -
state, non - federal share of the construction of the Project be shared; and
WHEREAS, the County and City both agree to pursue additional funding sources to
minimize the burden to both the City and County; and
WHEREAS, the parties agree that it is in their best interest that the cost of the final
design study be shared; and
WHEREAS, Minnesota Statutes section 471.59 authorizes political subdivisions to enter
into joint powers agreements.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LINO LAKES, MINNESOTA:
1. The City Council hereby approves the Joint Powers Agreement with the County
of Anoka for the Reconstruction of the Interchange of I -35E and County State Aid
Highway 14 (Main Street) and authorizes the Mayor and City Clerk to execute
said agreement on behalf of the City.
•
ne Bartell, Qity CI
J
Adopted by the Lino Lakes City Council this 511 day of October, 2009.
The motion for the adoption of the foregoing resolution was duly seconded by Council
Membep' Donnell and upon vote being taken thereon, the following voted in favor
thereof:
Stoltz, O'Donnell, Reinert, Gallup, Bergeson
The following voted against same:
none
Whereupon said resolution was declared duly passed and adopted.
STAFF ORIGINATOR:
CITY COUNCIL
MEETING DATE:
TOPIC:
ACTION REQUIRED:
BACKGROUND
AGENDA ITEM 1A (ii)
Michael Grochala
October 5, 2009
Consideration of Resolution No. 09 -73
Approving Joint Powers Agreement with Anoka
County for Construction- I- 35E/CSAH 14 (Main
Street) Interchange
Simple Majority
Anoka County is preparing to move forward with construction of the 35E /CSAH 14
interchange pending approval of a Joint Powers Agreement (JPA) with by the City of
Lino Lakes. The purpose of the JPA is to stipulate the county and city responsibilities
for construction and more importantly the cost sharing structure for the project.
With the execution of the agreement all the agency funding will be in place for the
project. The total estimated project cost, including engineering and land acquisition is
$22,025,000. Funding for the project is as follows:
City of Lino Lakes
Anoka County
State of Minnesota
Federal Government
Total
$ 4,241,833
$ 3,017,334
$ 1,220,833
$13,545,000
$22,025.000
As noted in the agreement the city share of construction and land acquisition, after
application of federal and state funds, will be 60% and the county 40 %. Any cost over
runs or under runs will be based on this same percentage. Additionally, any additional
funding received would be applied consistent with this formula.
The agreement does include additional opportunities for the city to earn credits based
toward our share. City and county staff have explored options including county road
turnbacks and land in lieu of cash for a future salt storage /truck garage. The credit
option provides the city with a "contingency" to address potential overruns, assessment
adjustments if necessary or as an interim financing source.
The city's share of the project funding will be paid by special assessments to benefitting
property owners. However, nearly 80% of the proposed assessment amount is
•
expected to by deferred because the land falls into one of the following categories: 1)
green acres; 2) senior citizen; or 3) unplatted /undeveloped land.
This severely limits the revenue stream necessary to fund any debt issued for the
project. As a result staff has worked with Anoka County to develop a payment schedule
to accommodate the city's situation.
Upon issuance of the county bonds the city will issue to the county a general obligation
improvement note. Under the proposed payment schedule the city will make interest
only payments over the first five years. Principal and interest payments will be made
over the following 10 years. A service charge representing approximately 75 basis
points will be applied to the bond rate to cover the county's financing costs. The service
charge is weighted toward the end of the payment period. The agreement allows for the
city to reduce the service charge by prepaying the debt anytime. The city also agrees to
apply prepayments of any deferred assessments directly to paying down the obligation.
The above referenced terms are more fully described in Section III.F.5 of the attached
Joint Powers Agreement.
As previously noted the majority of assessments will be deferred. However,
approximately 20% will be available, following certification, for debt service purposes.
The city's municipal state aid street funds will be used as an interim funding source to
cover the remaining balance until such time as the deferred assessments are received.
Based on the analysis by Springsted Inc., additional revenues will be required in years
2020 through 2024 to fund debt service obligations. The amount is estimated at a total
of $810,000 over the four years. These revenues may come in the form of deferred
assessments being paid. Additionally, the city also has alternatives available through
the JPA to help reduce this potential short fall.
Representatives from Sprinsted Inc. will be present at the meeting to review the
financing plan and address council questions.
RECOMMENDATION
Staff is recommending approval of the JPA with Anoka County.
ATTACHMENTS
1. Resolution No. 09 -73
2. Joint Powers Agreement
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Anoka County Contract No.
JOINT POWERS AGREEMENT
FOR THE RECONSTRUCTION OF
COUNTY STATE AID HIGHWAY 14 (MAIN STREET) AND I -35E INTERCHANGE
COUNTY PROJECT NO. S.P. 02- 614 -28
THIS AGREEMENT is made and entered into this day of
2009, by and between the County of Anoka, a political subdivision of the State of Minnesota,
2100 Third Avenue, Anoka, Minnesota 55303, hereinafter referred to as "County ", and the
City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota 55014, hereinafter
referred to as the "City ".
WITNESSETH
WHEREAS, the parties to this agreement agree it is in the best interest of the traveling
public to reconstruct the Interchange of I -35E and County State Aid Highway 14 (Main Street)
including the bridge over I -35E, hereinafter referred to as the "Project "; and,
WHEREAS, the parties to this agreement consider it mutually desirable to proceed with
the preliminary engineering & environmental documentation, fmal design, land acquisition,
construction, and construction engineering &.administration for the reconstruction of the Project;
and,
WHEREAS, Anoka County has jurisdiction over County State Aid Highway 14 (Main
Street); and,
WHEREAS, the Minnesota Department of Transportation (MnDOT) has
jurisdiction over I -35E; and,
WHEREAS, the parties and MnDOT have entered into a separate agreement for the
preliminary engineering and environmental documentation ( MnDOT Agreement No. 89335);
and,
WHEREAS, the County has obtained Federal Funds for the preliminary engineering and
environmental documentation ( MnDOT Agreement No. 88479); and,
WHEREAS, the County has obtained Federal Funds for the fmal design (MnDOT
Agreement No. 92714); and,
WHEREAS, the County has obtained State resources for the construction engineering &
administration (MnDOT Agreement No. 94579); and,
DRAFT JPA 10 -02 -09
WHEREAS, the parties and MnDOT have entered into a separate agreement for the
maintenance of traffic control signal system for the Project (MnDOT Agreement No. 94607M);
and,
WHEREAS, the parties agree that it is in their best interest that the cost of said land
acquisition required for the Project be shared; and,
WHEREAS, the parties agree that it is in their best interest that the cost of the non - state,
non - federal share of the construction of the Project be shared; and,
WHEREAS, the County and the City both agree to pursue additional funding sources to
minimize the burden to both the County and the City; and,
WHEREAS, Minn. Stat. § 471.59 authorizes political subdivisions of the state to enter
into joint powers agreements for the joint exercise of powers common to each.
NOW, THEREFORE, IT IS MUTUALLY STIPULATED AND AGREED:
I. PURPOSE
The parties have joined together for the purpose of the reconstruction of the interchange
of I -35E and County State Aid Highway 14 (Main Street) including the bridge over I -35E. The
County project number for the reconstruction is S.P. 02- 614 -28. Said engineering plans will be
filed in the office of the Anoka County Highway Department and incorporated herein by
reference.
II. METHOD
The parties and MnDOT have provided for the preliminary engineering & environmental
documentation for the Project via MnDOT Agreement No. 89335; and,
The County shall provide all professional services for the final design required for the
Project in conformance with federal and state aid standards; and,
The County shall provide all professional services for the land acquisition required for
the Project in conformance with the Uniform Relocation Assistance and Real Property Policies
Act; and,
The County shall cause the construction of the Project in conformance with said plans
and specifications. The County shall do the calling for all bids and the acceptance of all bid
proposals; and,
The County shall provide all construction engineering & administration services required
for the Project.
2
•
III. COSTS
A. The contract cost of the work, or if the work is not contracted, the cost of all labor,
materials, reimbursable utility relocations, normal engineering costs and equipment rental
required to complete the work shall constitute the actual "construction costs" and shall be
so referred to herein. "Estimated costs" are good faith projections of costs which will be
incurred for the Project. Actual costs may vary from the estimated costs and actual costs
are what the parties are responsible for.
B. Participation in the cost of the final design for the Project is as follows:
1. The estimated fmal design costs for the Project are $912,500 as shown in the
attached Exhibit A.
2. The Project has been awarded an appropriation of federal funds for fmal design.
i. Federal HPP funds capped at $730,000.
3. The County shall pay One Hundred percent (100 %) of the remaining final design
cost after federal funds have been applied. The cost to the County is $182,500.
C. Participation in the cost of land acquisition for the Project is as follows:
• 1. The estimated land acquisition costs for the Project are $5,600,000 as shown in .
the attached Exhibit A.
•
2. The County shall pay for forty percent (40 %) of the cost of the land acquisition.
The cost to the County is $2,240,000.
3. The City shall pay for sixty percent (60 %) of the cost of the land acquisition. The
cost to the City is $3,360,000.
D. Participation in the cost of construction for the Project is as follows:
1. The estimated construction costs for the Project are $14,000,000 as shown in the
attached Exhibit A.
2. The Project has been awarded two amounts of federal funds for construction.
i. Federal STP funds capped at $5,775,000 (20% local match required).
ii. Federal ARRA funds capped at $6,825,000.
3. The County agrees to contribute forty percent (40 %) to the remaining
construction cost after federal and state funds have been applied. The estimated
local cost (total cost less federal and state funds) of the construction is $1,435,000
as shown in Exhibit A. The cost to the County is $574,000.
3
•
4. The City agrees to contribute sixty percent (60 %) to the remaining construction
cost after federal and state funds have been applied. The estimated local cost
(total cost less federal and state funds) of the construction is $1,435,000 as shown
in Exhibit A. The cost to the City is $861,000.
E. Participation in the cost of the construction administration & administration required for
the Project is as follows:
1. The estimated construction administration & administration costs for the Project
are $1,200,000 as shown in the attached Exhibit A.
2. The County has entered into an agreement with MnDOT for in -kind construction
engineering & administration services to be provided by MnDOT.
3. The County shall pay One Hundred percent (100 %) of the remaining construction
engineering & administration costs if they occur. The cost to the County is $0.
F. The Payment from the City to the County shall be as follows:
1. The total estimated cost of the City's share of the Project is $4,241,833.
2. The City has previously paid for the preliminary engineering & environmental
documentation for the Project via MnDOT Agreement No. 89335 in the amount
of $20,833.
3. The remaining costs for the City's share of the Project are estimated at
$4,221,000.
4. The County will initially bear the City's remaining share of the costs associated
with the Project.
5. The City's remaining share of its costs, plus interest and service charges accrued
by the County to carry the City's debt, will be due and payable as follows. Upon
issuance by the County of bonds to finance a portion of the Project (the "County
Bonds ") the City will issue and deliver to the County a General Obligation
Improvement Note (the "City Note ") substantially in accordance with the terms
described in this Section.
a) Amount. The City Note will be issued in the original principal that
compensates the County for the City's remaining share of Project
costs ($4,221,000), along with the City's allocated share of costs of
issuance of the County Bonds (including underwriter's discount).
The parties currently expect that the principal amount of the City
Note will be approximately $4,370,000, but the actual principal
amount will be determined at the time of sale of the County Bonds.
•
b) Security. The City Note will be issued under Minnesota Statutes,
Chapter 429 and the City Charter, and will be secured primarily by
special assessments levied against property in the city benefited by
the Project, and will be further secured by the City's full faith and
credit.
c) Payment Schedule. The payment schedule for the City Note will be
substantially as shown in Exhibit B hereto, subject to adjustment
based on the actual terms of the County Bonds.
d) The City Note will include the following additional terms:
Optional Redemption. The City may pre -pay the City Note in
whole or in part on any date. Prepayments will be applied in
reverse order of maturities on the City Note. The prepayment
amount will be the outstanding principal amount (or relevant
portion thereof) of the City's allocable share of the County Bonds.
For any maturity or portion thereof that is prepaid under this
Section, the parties agree and understand that the "County fee"
shown in column [4] of Exhibit B (or allocable portion thereof, if
only part of maturity is prepaid) is not paid, and the prepayment
amount is only the sum described above.
ii. Mandatory Redemption. The parties agree and understand that a
substantial portion of the assessments levied against benefited
property are expected to be deferred under various provisions of
Minnesota law (referred to as "Deferred Assessment "). If the City
receives pre - payments of any such Deferred Assessments, the City
shall apply such prepayments toward redemption of the City Note,
in accordance with the terms described in clause (i) above.
6. As a credit to the City's share of the cost of the Project, and as executed under
separate agreements, the following items may be used to reduce the City's share
or to apply for the City's repayment schedule:
a) A $300,000 credit for the turnback of County Road 153 (Lilac Drive)
from the County to the City;
b) The appraised value of land provided by the City to the County as
accepted by the County for its purposes.
IV. TERM
This Agreement shall continue until terminated as provided hereinafter.
V. DISBURSEMENT OF FUNDS
• All funds disbursed by the County or City pursuant to this Agreement shall be disbursed
by each entity pursuant to the method provided by law.
VI. CONTRACTS AND PURCHASES
All contracts let and purchases made pursuant to this Agreement shall be made by the
City and County in conformance to the State laws.
VII. STRICT ACCOUNTABILITY
A strict accounting shall be made of all funds and report of all receipts and shall be made
upon request by either party.
VIII. TERMINATION
This Agreement may be terminated by either party at any time, with or without cause,
upon not less than thirty (30) days written notice delivered by mail or in person to the other
party. If notice is delivered by mail, it shall be deemed to be received two days after mailing.
Such termination shall not be effective with respect to any solicitation of bids or any purchases
of services or goods, which occurred prior to such notice of termination. The City shall pay its
pro rata share of costs which the County incurred prior to such notice of termination.
IX. MAINTENANCE
A. Maintenance of the completed watermain, sanitary sewer, storm sewer, and detention
basins (including ponds and their outlet structures and grit chambers /collectors) shall be
the sole obligation of the City.
B. Maintenance of all trails and sidewalks, including snow plowing, shall be the sole
responsibility of the City.
C. Maintenance of streetlights and cost of electrical power to the streetlights shall be the sole
obligation of the City.
D. Maintenance of the completed signals and signal equipment shall be determined by
separate agreement (MnDOT Agreement 94607M or its successor).
X. NOTICE
For purposes of delivery of any notices herein, the notice shall be effective if delivered to
the County Administrator of Anoka County, 2100 Third Avenue, Anoka, Minnesota 55303, on
behalf of the County, and to the City Administrator of Lino Lakes, 600 Town Center Parkway,
Lino Lakes, MN 55014, on behalf of the City.
6
•
XI. INDEMNIFICATION
The City and County mutually agree to indemnify and hold harmless each other from any
claims, losses, costs, expenses or damages resulting from the acts or omissions of the respective
officers, agents, or employees relating to activities conducted by either party under this
Agreement.
XII. ENTIRE AGREEMENT REQUIREMENT OF A WRITING
It is understood and agreed that the entire agreement of the parties is contained herein and
that this Agreement supersedes all oral agreements and all negotiations between the parties
relating to the subject matter thereof, as well as any previous agreement presently in effect
between the parties to the subject matter thereof. Any alterations, variations, or modifications of
the provisions of this Agreement shall be valid only when they have been reduced to writing and
duly signed by the parties.
• IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands on
the dates written below.
COUNTY OF ANOKA CITY OF LINO LAKES
By: By:
Dennis D. Berg, Chair John J. Bergeson
County Board of Commissioners Mayor
Dated: Dated:
ATTEST
By: By:
Terry L. Johnson
County Administrator City Administrator
Dated: Dated:
RECOMMENDED FOR APPROVAL
By: By:
Douglas W. Fischer, P.E. Michael Grochala
County Engineer Community Development Director
Dated: Dated:
APPROVED AS TO FORM
By: By:
Dan Klint
Assistant County Attorney Its: City Attorney
Dated: Dated:
•
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Ad Graphics.xlsOverview
•
CITY OF LINO LAKES, MINNESOTA
Development Escrow Ad Graphics
Billing Summary 801 -2364
Description
Date Amount
Developer Deposits
Taylor Corporation 7/3/2007 $10,000.00
Transfer from S.T. Escrow 7/31 /2007 $4,452.33
Site Plan Review Fee
Total $14,452.33
Total $0.00
Administration
TKDA 8/13/2007 $1,274.74
Jeff Smyser - July hours 8/31/2007 $65.90
TKDA 9/10/2007 $692.78
TKDA 10/8/2007 $502.98
TKDA 3/24/2008 $138.88
TKDA 5/27/2008 $69.44
TKDA 11/10/2008 $875.03
TKDA 12/8/2008 $1,678.69
TKDA 12/31/2008 $138.88
TKDA 4/13/2009 $135.55
TKDA 5/14/2009 $135.55
TKDA 7/27/2009 $135.55
TKDA 8/24/2009 $67.78
TKDA 9/28/2009 $138.10
Other
Total $6,049.85
Total $0.00
Ad Graphics.xls
Development Escrow 1 10/2/2009
•
JOINT POWERS AGREEMENT
FOR THE RECONSTRUCTION OF
CSAH 14 /I -35E Interchange Project Costs
Cost Splits
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City Payment of Total Payments by
County Fee City
(3) +(4)
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2,000 90,978
2,000 127,125
2,000 127,125
2,000 127,125
2,000 127,125
5,000 520,125
10,000 527,715
15,000 529,115
120,000 533,990
25,000 537,993
30,000: 546,093
35,000 547,893
45,000 558,943
60,000 573,830
90,000 607,750
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125,125 125,125
125,125 125,125
125,125 125,125
125,125 125,125
515,125 515,125
517,715 517,715
514,115 514,115
513,990 513,990
512,993 512,993
516,093 516,093
512,893 512,893
513,943 513,943
513,830 513,830
517,750 517,750
$5,737,923 $5,737,923
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Prepared by Springsted Incorporated (10/2/2009)