#04 - Cost Share Agreement for CSAH 13 Improvements

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Staff considered completing this work under a separate contract administered through the City of Lake Elmo. After consideration it was determined that by partnering with Washington County to complete the work, we would be able to capture an economy of scale through their contract for better pricing and also be relieved of any costs for mobilization, restoration, and traffic control costs that comes along with excavating to install the insulation. Key elements of the agreement are as follows: • The total estimated construction cost is $3,246,408.72. • The total estimated cost share participation by Lake Elmo is $57,334.80. • The city’s estimated cost share is not fixed. The agreement outlines the elements of the project that the City will be responsible for, the invoicing and payment terms, and indicate that the City share will be based on the actual costs incurred for those project elements. • Project changes can be made and approved solely by the County, and the costs assigned to the City by the County in accordance with the County Cost Participation Policy. The County must obtain concurrence from the City regarding cost changes that exceed a 10% contingency over the estimated City cost share. FISCAL IMPACT: The County is requesting cost participation in the project by the City of Lake Elmo for the actual construction costs for specified project components and line items, plus a prorated share of the project engineering and construction administration costs. The current estimated cost share participation by Lake Elmo is $57,334.80. The actual cost share will be determined once the project is complete, and the final costs are known. The City intends to finance the improvements with payment from Water Fund. The City’s share of the costs, as assigned by the County, include costs to excavate down to the the watermain, place insulation, and replace the embankment material. Costs for mobilization, restoration, grading, and traffic control will all be borne by Washington County. OPTIONS: • Approve the County Agreement. • Do not approve the County Agreement. This will result in Lake Elmo pursuing a separate project to insulate the watermain. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, a Resolution approving the Cooperative Agreement between the City of Lake Elmo and Washington County for Construction Cost of CSAH 13. If removed from the consent agenda, the recommended motion for the action is as follows: Motion to approve Resolution No. 2025-042 Approving Cooperative Agreement between the City of Lake Elmo and Washington County for Construction Cost of CSAH 13. ATTACHMENTS: 1. Resolution Approving Cooperative Agreement Between the City of Lake Elmo and Washington County for Construction Cost of County State Aid Highway (CSAH) 13, Agreement No. 17410 2. Cooperative Agreement Between the City of Lake Elmo and Washington County for Construction Cost of County State Aid Highway (CSAH) 13, Agreement No. 17410 3. Project Location Map