5.7. SR 05-02-2005
Item 5.7.
13065 Orono Parkway
Elk River, MN 55330
April 27, 2005
File #: 800110J-0068
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River MN 55330
RE: MNDOT RIGHT OF WAY AGREEMENT FOR TYLER S1REET
Dear Council Members:
Attached is a MnDOT Agency Agreement for the participation in the purchase of right of
way for Tyler Street (Twin Lakes Road). The reason this agreement is coming to you at this
late date, several years after Twin Lakes Road has been constructed, is that as we have been
trying to complete the federal paperwork and maximize the use of the federal grant for this
project, MnDOT has discovered that the right of way agreement previously approved by the
City Council has lapsed. Therefore, in order to get the remaining approximately $100,000 of
federal money released for the purchase of right of way along the Twin Lakes Road
Corridor, the City Council needs to adopt a new agency agreement. Attached for your
consideration is a resolution which authorizes the Mayor and the City Administrator to
execute the attached agreement.
I will be in attendance at your May 2, 2005 City Council meeting should you have any
questions regarding this issue.
Sincerely,
Te2~
City Engineer
Phone: 763.635.1000
Fax: 763.635.1090
s: \Engineer\200S Memos \04 27 05 cc MnDOT rowagmt.doc
www.cLelk-river.mn.us
RESOLUTION 05-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING MINNESOTA DEPARTMENT OF
TRANSPORTATION AGENCY AGREEMENT NO. 86472 FOR FEDERAL
PARTICIPATION IN RIGHT OF WAY FOR S.P. 204-133-02 AND 71-613-08
WHEREAS, the City of Elk River has received federal aid funds for the acquisition of
right of way and construction of Tyler Street (Twin Lakes Road).
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota:
1. That pursuant to Minnesota Stat. Sec. 161.36, the Commissioner of
Transportation be appointed as Agent of the City of Elk River to accept as its
agent, federal aid funds which may be made available for eligible transportation
related projects.
2. That the Mayor and the City Administrator are hereby authorized and directed
for and on behalf of the City to execute and enter into an agreement with the
Commissioner of Transportation prescribing the terms and conditions of said
federal aid participation as set forth and contained in "Minnesota Department of
Transportation Agency Agreement No. 86472", a copy of which said agreement
was before the City Council Board and which is made a part hereof by reference.
Passed and adopted this 2nd day of May, 2005.
Stephanie A. Klinzing, Mayor
ArrEST:
Joan M. Schmidt, City Clerk
Mn/DOT Agreement No. 88036
STATE OF MINNESOTA AGENCY AGREEMENT
BETWEEN
DEPARTMENT OF TRANSPORTATION
AND
CITY OF ELK RIVER
FOR FEDERAL PARTICIPATION IN RIGHT OF WAY
FOR
S.P. 204-133-02 and 71-613-08; M.P. HPP MN51(001)
This agreement is entered into by and between City of Elk River ("City") and the State of
Minnesota acting through its Commissioner of Transportation ("Mn/DOT"),
Pursuant to Minnesota Statutes Section 161.36, the City desires Mn/DOT to act as the
City's agent to accept and disburse federal funds for the construction, improvement, or
enhancement of transportation financed in whole or in part by federal funds, hereinafter referred
to as the "Project"; and
The City has a federal aid project to purchase right of way for the Tyler Street(MSAS
133)from 171 st Avenue NW(MSAS 132) to CSAH 12, hereinafter referred to as the "Right-of-
way Acquisition"; and
The Right-of-way Acquisition is eligible for the expenditure of federal aid funds, and is
identified in Mn/DOT records as State Project 204-133-02 and 71-613-08, and in Federal
Highway Administration ("FHW A") records as Minnesota Project HPP MN51(001); and
Agreement no. 79058 was written to provide the federal funds for Right-of-way
Acquisition, however the agreement expired prior to a bill being submitted. In the meantime, the
funds for right-of-way were transferred back and forth to the construction funds. Construction
costs were less than anticipated thus there is a desire on the part of the city to use the remaining
federal funds to cover eligible right-of -way acquisition costs for the project; and
Mn/DOT reqUIres that the terms and conditions of this agency be set forth In an
agreement.
THE PARTIES AGREE AS FOLLOWS:
1. DUTIES OF THE CITY.
A. DESIGNATION. The City designates Mn/DOT to act as its agent to accept and
disburse federal funds made available for the Project.
Agreement no. 88036
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B. ELIGIBILITY / COSTS. The estimated cost of the Right-of-way Acquisition IS
$113,778.64.
1. It is anticipated that 80% (capped at $ 91,022.91) of the cost of the Right-of-way
Acquisition is to be paid from federal funds made available by the FHW A, and
that the remaining 20% will be paid by the City. The City will pay any part of the
cost or expense of the work that the Federal Highway Administration does not
pay.
2. Any costs incurred by the City prior to authorization, will not be eligible for
federal participation.
3. Eligible cost and expense, if approved, may consist of the following:
a) The cost of purchasing right-of-way for the project.
b) The direct labor charges for City employees for the time that said employees
are engaged in the work to be performed by the City pursuant to this
agreement. Said labor charges may include the prorata share of "labor
additives" applicable to said labor charges. Costs to the City of "labor
additives" consisting of holiday pay, vacation, sick leave, retirement, pension,
unemployment taxes, compensation and liability insurance, lost time charges
and similar costs incidental to labor employment will be reimbursed only
when supported by adequate records.
c) The applicable equipment rental charges for City owned equipment used by
the City and mileage charges for employee owned vehicles used by the City
on the work to be performed pursuant to this agreement, at rates reflective of
the City actual cost.
d) Expenditures for materials, supplies, mechanical data processing and
equipment rental, limited to the actual expenditures for the purposes of this
agreement.
e) The cost incurred by the City to employ outside forces to perform any or all of
the work pursuant to this agreement is subject to the provisions of section LD.
SUBLETTING.
f) Purchase price, appraisal fees incurred by the City, appraisal fees incurred by
the property owner ($1500 maximum), condemnation costs, title work, title
insurance, recording fees, and closing costs.
g) A credit will be required for any building sales or rental income.
4. Expenditures for general administration, supervision, maintenance and other
overhead or incidental expenses of the City are not eligible for federal
participation.
Agreement no. 88036
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5. Acceptability of costs under this agreement will be determined in accordance with
the cost principles and procedures set forth in the applicable Federal Acquisition
Regulations, Contract Cost Principals and Procedures, 48 Code of Federal
Regulations (CFR) 31 which is hereby incorporated by reference and made a part
of this agreement.
6. For costs expected to exceed $ 113,778.64, the City must request the preparation
and execution of a supplement to this agreement, prior to incurring such costs.
C. STAFFING.
1. The City will designate a publicly employed registered engineer or land
surveyor, ("Project Engineer"), to be in responsible charge of the Project and
to supervise and direct the work to be performed under any construction
contract let for the Project. If City elects to use a private consultant for
engineering services, the City will provide a qualified, full-time public
employee of the City, to be in responsible charge of the Project. The services
of the City to be performed pursuant to this agreement may not be assigned,
sublet, or transferred unless the City is notified in writing by MnlDOT that
such action is permitted under 23 CFR 1.33 and 23 CFR 635.105 and state
law. This written consent will in no way relieve the City from its primary
responsibility for performance of the work.
2. During the progress of the work on the Project, the City authorizes its Project
Engineer to request in writing specific engineering and/or technical services
from MnlDOT, pursuant to Minnesota Statutes Section 161.39. Such services
may be covered by other technical service agreements. If MnlDOT furnishes
the services requested, and if MnlDOTrequests reimbursement, then the City
will promptly pay MnlDOT to reimburse the state trunk highway fund for the
full cost and expense of furnishing such services. The costs and expenses will
include the current MnlDOT labor additives and overhead rates, subject to
adjustment based on actual direct costs that have been verified by audit.
Provision of such services will not be deemed to make MnlDOT a principal or
co-principal with respect to the Project.
3. The City will furnish the personnel, services, supplies, and equipment
necessary to properly supervise, inspect, and document the work for the
Project.
D. SUBLETTING. The City will prepare request for proposals in accordance with
Minnesota law and applicable Federal laws and regulations.
1. The City will solicit proposals after obtaining written notification from
MnlDOT that the FHW A has authorized the Proj ect. Any Proj ect advertised
prior to authorization will not be eligible for federal reimbursement.
Agreement no. 88036
-3-
2. This written consent will in no way relieve the City from its primary
responsibility for performance of the work. Subcontractor agreements must
contain all appropriate terms and conditions of this agreement.
E. CONTRACT ADMINISTRATION.
1. The City will request approval from Mn/DOT for all costs in excess of the
amount of federal funds previously approved for the Proj ect prior to incurring
such costs. Failure to obtain such approval may result in such costs being
disallowed for reimbursement.
2. The City will prepare reports, keep records, and perform work so as to enable
Mn/DOT to collect the federal aid sought by the City. The City will retain all
records and reports in accordance with Mn/DOT's record retention schedule for
federal aid projects.
3. Upon completion of the Project, the Project Engineer will determine whether the
work will be accepted.
F. PAYMENTS.
1. The entire cost of the Project is to be paid from federal funds made available by
the FHW A and by other funds provided by the City. The City will pay any part of
the cost or expense of the Project that is not paid by federal funds.
2. The City may request partial payments not more than once each thirty (30) days.
The Project Engineer will certify the amount of each partial estimate.
3. The invoice and supplements thereto, will contain all details that may be
necessary for a proper audit. Such details will consist of at least the following:
(a) A breakdown oflabor by individual, classification, dates and hours
worked times the applicable rate to arrive at a total dollar amount for each
individual.
(b) The labor additive may be applied to total labor dollars, not including
overtime labor dollars.
(c) The equipment charges shall be broken down by type of equipment times
the applicable rate and dates used to arrive at total equipment charges.
(d) A detailed breakdown of outside services used and supporting invoices.
Documentation that costs of outside services have been paid.
(e) Detail for materials, supplies, and other items with the description, units,
and unit prices included in the invoice. If materials or supplies are
purchased from an outside source, a copy of that invoice should be
Agreement no. 88036
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included.
(f) The invoices will include 100% of eligible charges applicable to the
Right-of-way Acquisition so that the prorata share of federal and City
participation can be applied to the total costs.
4. Following certification, by the Project Engineer, of the final estimate, the City
may request reimbursement for costs eligible for federal funds. The City's request
will be made to Mn/DOT and will include a copy of the certified final estimate
along with the required records.
5. Reimbursement of costs under this agreement will be based on actual costs, but
limited to eligible items.
G. LIMITATIONS.
1. The City will comply with all applicable Federal, State, and local laws,
ordinances, and regulations.
2. Nondiscrimination. It is the policy of the Federal Highway Administration and
the State of Minnesota that no person in the United States will, on the grounds of
race, color, or national origin, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity
receiving Federal financial assistance (42 U.S.c. 2000d). Through expansion of
the mandate for nondiscrimination in Title VI and through parallel legislation, the
prescribed bases of discrimination include race, color, sex, national origin, age,
and disability. In addition, the Title VI program has been extended to cover all
programs, activities and services of an entity receiving Federal financial
assistance, whether such programs and activities are Federally assisted or not.
Even in the absence of prior discriminatory practice or usage, a recipient in
administering a program or activity to which this part applies, is expected to take
affirmative action to assure that no person is excluded from participation in, or is
denied the benefits of, the program or activity on the grounds of race, color,
national origin, sex, age, or disability. It is the responsibility of the City to carry
out the above requirements.
3. Workers' Compensation. Any and all employees of the City or other persons
while engaged in the performance of any work or services required or permitted
by the City under this agreement will not be considered employees of Mn/DOT,
and any and all claims that may arise under the Workers' Compensation Act of
Minnesota on behalf of said employees, or other persons while so engaged, will in
no way be the obligation or responsibility of MnlDOT. The City will require
proof of Workers' Compensation Insurance from any contractor and sub-
contractor.
Agreement no. 88036
-5-
H. AUDIT.
1. The City will comply with the Single Audit Act of 1984 and Office of
Management and Budget (OMB) circular A-l33 including amendments and
successors thereto, which are incorporated herein by reference.
2. As provided under Minnesota Statutes Section 16C.05, subdivision 5, all books,
records, documents, and accounting procedures and practices of the City are
subject to examination by the United States Government, MnlDOT, and either the
Legislative Auditor or the State Auditor as appropriate, for a minimum of six
years. The City will be responsible for any costs associated with the performance
of the audit.
1. MAINTENANCE. The City assumes full responsibility for the operation and
maintenance of any facility constructed or improved under this Agreement.
J. CLAIMS. The City will pay any and all lawful claims arising out of or incidental
to the performance of the Project work. The City acknowledges that MnlDOT is
acting only as the City's agent for receipt and disbursement of federal funds, and
not as a principal or co-principal with respect to the Project. In all events, the City
will indemnify MnlDOT and hold MnlDOT harmless from any claims arising out
ofthe Project.
II. DUTIES OF MnlDOT.
A. ACCEPTANCE. MnlDOT accepts designation as Agent of the City for the
receipt and disbursement of federal funds and will act in accordance herewith.
B. PROJECT ACTIVITIES. MnlDOT will make the necessary requests to the
FHW A for authorization to use federal funds for the Proj ect, and for
reimbursement of eligible costs pursuant to the terms of this agreement.
C. PAYMENTS.
1. MnlDOT will receive the federal funds to be paid by the FHW A for the Project,
pursuant to Minnesota Statutes 9 161.36, Subdivision 2.
2. MnlDOT will review and sign each partial pay request. Following certification of
the partial estimate, MnlDOT will reimburse the City, from said federal funds
made available to the Project, for each partial payment request, subject to the
availability and limits of those funds.
3. Upon completion of the Project, the City will prepare a final payment request in
accordance with the terms of this agreement. MnlDOT will review and certify the
final payment request with a [mal audit.
4. No more than 90% of the reimbursement due under this agreement will be paid
until completion of the final audit and approval by MnlDOT's authorized
Agreement no. 88036
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representative.
5. In the event MnlDOT does not obtain funding from the FHW A or other funding
source, or funding cannot be continued at a sufficient level to allow for the
processing of the federal aid reimbursement requests, the City may continue the
work with local funds only, until such time as Mn!DOT is able to process the
federal aid reimbursement requests.
D. AUTHORlTY. MnlDOT may withhold federal funds, where MnlDOT or the
FHW A determines that the Project was not completed in compliance with federal
requirements.
E. INSPECTION. MnlDOT, the FHW A, or duly authorized representatives of the
state and federal government will have the right to audit, evaluate and monitor the
work performed under this agreement. The City will make available all books,
records, and documents pertaining to the work hereunder, for a minimum of seven
years following the closing of the construction contract.
III. AUTHORIZED REPRESENTATIVES. Each authorized representative will have
responsibility to insure that all payments due to the other party are paid pursuant to the
terms of this agreement.
A. The City authorized representative for the purposes of administration of this
agreement is Terry Maurer, City of Elk River, Court International Building, 2550
University Avenue West, Suite 400N, St. Paul, Minnesota 55114 or his successor.
B. MnlDOT's authorized representative is Lynnette Roshell, Minnesota Department
of Transportation, State Aid for Local Transportation, Mail Stop 500, St Paul, MN
55155, phone 651.282.6479, or her successor.
IV. TORT LIABILITY. Each party is responsible for its own acts and omissions and the
results thereof to the extent authorized by law and will not be responsible for the acts and
omissions of any others and the results thereof. The Minnesota Tort Claims Act,
Minnesota Statutes Section 3.736, governs MnlDOT liability.
V. ASSIGNMENT. Neither party will assign or transfer any rights or obligations under this
agreement without prior written approval ofthe other party.
VI. AMENDMENTS. Any amendments/supplements to this Agreement will be in writing
. and executed by the same parties who executed the original agreement, or their
successors in office.
VII. TERM OF AGREEMENT. This agreement is be effective upon execution by appropriate
State officials, pursuant to Minnesota Statutes Section 16C.05, and will remain in effect
for three (3) years from the effective date or until all obligations set forth in this
agreement have been satisfactorily fulfilled, whichever occurs first.
Agreement no. 88036
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VITI. TERMINATION. This agreement may be terminated by the City or Mn/DOT at any
time, with or without cause, upon ninety (90) days written notice to the other party. Such
termination will not remove any unfulfilled financial obligations of the City as set forth in
this Agreement. In the event of such a termination the City will be entitled to
reimbursement for Mn/DOT-approved federally eligible expenses incurred for work
satisfactorily performed on the Project to the date of termination subject to the terms of
this agreement.
Agreement no. Sg036
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed intend to
be bound thereby.
STATE ENCUMBRANCE VERlFICA TION
Indi,:,idual)f~es that funds have been encumbered as
requrredpY,M . tat. ~ 16A.I~d 16C.05.
( ./ . l
,l /A
By: . ;
Dat6: t/. 2 rz, 2 tio:J
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CFMS Contract No. A- .5"-- '7 o! 7
DEPARTMENT OF TRANSPORTATION
By:
Title: Director,
State Aid for Local Transportation
Date:
COMMISSIONER OF ADMINISTRATION
CITY By:
City certifies that the appropriate person(s)
have executed the contract on its behalf as required by Date:
applicable resolutions, ordinances, or charter
proVISIOns
By:
Date:
Title:
By:
Date:
Title:
Agreement no. 88036
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