5.9. SR 08-21-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
En . eerin Au st 21, 2006
Item Description
Agreement for Improvement to County Highway 40
Item Number
5.9.
Prepared by
Ter Maurer, Ci
Reviewed by
Introduction
As the Council is aware, we have been working with Sherburne County for quite some time on
the upgrade of County Highway 40 (Cleveland Avenue). Previously, the City Council has
reviewed a draft agreement for completion of County road upgrades in the City of Elk River. It is
now time to consider the formal agreement for County Highway 40.
Discussion
Sherburne County opened bids for the County Highway 40 upgrade on Tuesday, August 1, 2006.
The low bidder was Dresel Contracting in the amount of $2,153,000. The portions of the
construction that the City is obligated to pay for include watermain, which runs under almost the
entire length of County Highway 40, the curb and gutter and 500/0 of the storm sewer at the north
end where an urban section was requested by the City from the intersection of CSAH 13 down to
the main entrance to River Park Addition, and the total cost of the trail along the urban section of
roadway. Based on the low bid, the estimated cost of the City's portion of this project is
$650,000. It should be noted that these costs are for construction only. The agreement does not
require the City to pay overhead costs associated with these improvements.
According to the agreement, the City is obligated to pay 950/0 of the cost based on the low bid
once the bill is submitted from the County. After completion the City will be billed for the actual
cost of construction minus previous payments. This is similar to the Municipal State Aid funding
protocol. The agreement also indicates that the City will provide construction oversight for the
watermain and curb and gutter portions of the project. This was negotiated with the County,
since the County's field staff are not familiar with these types of consttuction.
According to the agreement, the County will be responsible for maintaining the roadway and
drainage systems. The City will be responsible for the maintenance of the watermain and
snowplowing of the trails.
Finally, the draft agreement has been previously reviewed by City Attorney Chris Johnson for
legal format. Mr. Johnson had no objections to the standard format of this agreement.
Financial Impact
As stated previously, the City's financial obligation to this project is $650,000. The funding
source to pay this amount will come over time in assessments to developing properties for
watermain and fees for street construction.
Attachments
Attached is the Agreement for Improvement of County Highway 40 in the City of Elk River,
Minnesota (S.P .71-596-04)
Action Requested
Approval of the Agreement and authorization for the Mayor and City Administrator to sign the
agreement.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\EngineerImprovProj\2006 Improvement Projects \County Highway 40\07 31 06 cc memo Co Agmt.doc
AGREEMENTFORTHEI~ROVEMENTOFCOUNTYROAD40
IN THE CITY OF ELK RIVER, MINNESOTA
(S.P. 71-596-04)
This Agreement made and entered into this , 2006, by and between the County of
Sherburne, State of Minnesota, a political subdivision of the State of Minnesota, 13880
Highway 10, Elk River, Minnesota 55330, hereinafter referred to as the "County", and the
City of Elk River, 13065 Orono Parkway, Elk River, Minnesota 55330, hereinafter referred to
as the "City".
WITNESSETH
WHEREAS, the parties of this Agreement have long exhibited concern for the safety of the
public traveling on County Road 40, and,
WHEREAS, the County has received federal TEA-21 funds to improve the roadway from
essentially a gravel road to two (2) 12-foot paved driving lanes, each with eight-foot paved
shoulders; and
WHEREAS, the City is experiencing development in this area of the City and therefore,
desires to provide utilities to Project area; and
WHEREAS, the parties agree that the County shall cause the construction of the
improvements of County Road 40; and
WHEREAS, the Sherburne County Public Works Department has prepared plans and
specifications for Project Number S.P. 71-596-04, which plans and specifications are dated
June 21, 2006, and which are on file in the office of the County Engineer; and
WHEREAS, the City has provided appropriate plans and specifications to be included in the
County's plans and specifications; and
WHEREAS, the parties agree that it is in their best interest that the cost of said project be
shared.
NOW, THEREFORE, IT IS MUTUALLY STIPULATED AND AGREED:
I. PURPOSE
The parties have contracted for the purpose of constructing the roadway, drainage, and
utilities associated with County Road 40, described in the plans and specifications numbered
S.P. 71-596-04 on file in the office of the Sherburne County Engineer and incorporated herein
by reference.
II. METHOD
The County shall cause the construction of Sherburne County Project Number S.P. 71-596-04
in conformance with said plans and specifications. The County shall do the calling for all
bids and the acceptance of all bid proposals.
III. COSTS
The contract costs of the work, or if the work is not contracted, the cost of all labor , materials,
normal engineering costs and equipment rental required to complete the work, shall constitute
the actual "construction costs" and shall be referred to herein.
"Estimated costs" are good faith projections of the costs, which will be incurred for this
project. Actual costs may vary and those will be the costs for which the relevant parties will
be responsible.
The estimated construction cost of the total project is $2,153,000 (Two Million One Hundred
Fifty- Three Thousand Dollars). Federal funds available for the project are capped at
$719,104, whicll will be applied entirely for County costs. Above that amount, the County
will pay an estimated amount of $1,433,896 (One Million Four Hundred Thirty-Three
Thousand Eight Hundred Ninety-Six Dollars) to cover the remainder of the County's portion
of the project. The County will pay the cost for all roadway grading, paving, access road and
driveway replacements and/or improvements, intersection improvements, and drainage
systems (including half (50%) of the cost of the storm sewer).
The City shall pay the entire cost of utilities, including any water and sanitary sewer, curb and
gutter, the cost of constructing any trails on or adjacent to the County's roadway easement,
and half (50%) of the cost of the storm sewer. The estimated total cost for the City's portion
of the project is $650,000 (Six Hundred Fifty Thousand Dollars).
The County will provide construction staking, construction observation, and contract
administration for the project. The City will provide construction observation/oversight for
the water main, sanitary sewer, and curb and gutter portions of the project.
Upon award of the contract, the City shall pay to the County, upon written demand by the
County, ninety-five percent (95%) of its portion of the cost of the project estimated at 617,500
(Six Hundred Seventeen Thousand Five Hundred Dollars). The City's share of the project
shall include only construction and construction engineering expense and does not include
any administrative expenses incurred by the County.
Upon final completion of the project, the City's share of the construction cost will be based
upon the actual construction costs. If necessary, adjustments to the initial ninety-five percent
(95%) charged will be made in the form of credit or additional charges to the City's sllare.
Also, the remaining five percent (5%) of the City's portion of the construction costs shall be
paid.
IV. TERM
This Agreement shall continue until terminated as provided herein.
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 County
in conformance with State laws.
VII. STRlCT ACCOUNTABILITY
A strict accounting shall be made of all funds and report of all receipts and disbursements
shall be made upon request by either party.
VIII. TERMINATION
This Agreement may be terminated by either party at any time, with our 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 (2) 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 roadways, shoulders,. drainage systems, and remainder of
the roadway easement shall be the sole responsibility of the County.
B. Maintenance of any pavement markings shall be the sole responsibility of the
County.
C. Snow plowing of the roadway shall be the sole responsibility of the County.
D. Maintenance of the water main and sanitary sewer shall be the sole
responsibility of the City.
E. Maintenance, including snow plowing, of any trails will be the sole
responsibility of the City.
x. NOTICE
For purposes of delivery of any notices hereunder, the notice shall be effective if delivered to
the County Administrator of Sherburne County, 13880 Highway 10, Elk River, Minnesota
55330, on behalf of the County, and the City Administrator of Elk River, Orono Parkway, Elk
River, Minnesota 55330, on behalf of the City.
XI. INDEMNIFICATION
The County and the City 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
It is understood and agreed that the entire agreement of the parties is contained herein and that
this Agreement supercedes 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 of this Agreement have hereunto set their hands on the
dates written below:
COUNTY OF SHERBURNE
By:
Dated:
ATTEST:
By:
Dated:
Terry Nagorski
Chair, Sherburne County Board
Brian Bensen
County Administrator
RECOMMENDED FOR APPROVAL
By:
Dated:
John M. Menter, P.E.
Public Works Director
APPROVED AS TO FORM AND EXECUTION
By:
KatWeen Heaney
County Attorney
Dated:
CITY OF ELK RIVER
By:
Dated:
By:
Dated:
By:
Dated:
By:
Dated:
Stephanie Klinzing
Mayor, City of Elk River
Lori Johnson
City Administrator
Terry Maurer, P.E.
City Engineer