Agenda Packets - 2008/03/10 - Laserfiche WebLink

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Mounds View, Minnesota Project No: 435-08131-0 2008 Street Maintenance Project Page 5 Project Financing It is the understanding of this Report that financing for this project will be provided from the Street Improvement Fund (City Fund No. 285-4470-7050). City Staff has indicated that the approved 2008 budget included allocation for a street maintenance project consistent in size and scope with the project proposed in this Report. As previously noted, financial participation from the City of Spring Lake Park will be expected for a portion of the improvements described, due to joint ownership of Hillview Road and Lakeside Lions Park. Assuming an even cost split between the two cities for the improvements on those facilities, a summary of the estimated financial responsibility of each towards the project is shown in the following table: Summary of Project Financing City Amount Mounds View $ 176,130.00 Spring Lake Park 5,470.00 Total Estimated Project Cost $ 181,600.00 Possibility of Joint Project with Spring Lake Park In 2007, the City of Spring Lake Park proposed a Street Maintenance Project that was very similar in scope to the project proposed by Mounds View. The cities decided to combine their projects in the interests of convenience, consistency, and potential cost savings. Through the use of a Joint Powers Agreement both cities realized a savings by sharing project development costs such as preparation of the construction documents, advertising, bidding, and preparation of contracts. In addition, the higher volume of work in the combined project resulted in lower construction prices being received from bidders. Spring Lake Park is again proposing a Street Maintenance Project for 2008 in their City. Through discussions with Staff from both cities it has been determined that the schedules and other characteristics of the projects being considered in each are compatible, and both cities are interested in pursuing a joint project. At their meeting on February 11, 2008, the Mounds View City Council directed Staff and the City Attorney to prepare a Joint Powers Agreement for a combined project. The Agreement is currently being drafted, and is scheduled to be brought to the Mounds View Council on March 10, 2008. If approved, it would be submitted to Spring Lake Park for consideration at their City Council meeting of March 17, 2008. Similar to 2007, the 2008 Street Maintenance Project proposed in Mounds View is larger in size than the project proposed in Spring Lake Park. Therefore, Mounds View has again offered to be the lead agency on the project. As such they would handle the project bidding, contract award, and administration of construction payments, among other things. The Agreement being prepared will propose that arrangement between the cities, as was done in the Agreement for the 2007 project. It should be noted that although a joint project is anticipated, in the event that it does not occur this Report can still be used as the basis for Mounds View to proceed with a separate 2008 Street Maintenance Project.