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1b. Lyman Boulevard: Approve Resolution for Advancement of Funds 10° MEMORANDUM CITY OF TO: Todd Gerhardt, City Manager - CHAN HAS SEN FROM: Paul Oehme, Director of Public Works /City Engineer 7700 Market Boulevard DATE: November 8, 2010 41,Q PO Box 147 Chanhassen, MN 55317 SUBJ: Lyman Boulevard Improvements, Phase 1— Project No. 06 -03: Approve Resolution for Advancement of Municipal State Aid Funds Administration Phone: 952.227.1100 Fax: 952.227.1110 PROPOSED MOTION Building Inspections "The City Council approves a resolution for advancement of Municipal State Aid Phone: 952.227.1180 Fax : 952.227.1190 Funds for Lyman Boulevard Improvements, Phase 1 — Project No. 06 -03." Engineering City Council approval requires a simple majority vote of the City Council present. Phone: 952.227.1160 Fax: 952.227.1170 BACKGROUND Finance Phone: 952.227.1140 In November, 2007, the City Council approved a resolution for advancement of state Fax: 952.227.1110 aid funds for Lyman Boulevard Improvements, Phase I the amount of $1,500,000. This amount was the maximum amount of funds the City could request at this time. Park & Recreation Phone: 952.227.1120 DISCUSSION Fax: 952.227.1110 Recreation Center The advancement of state aid funds for this project is to help pay for the City's 2310 Coulter Boulevard portion of the improvements. The City was responsible for 45% of the project cost Phone: 952.227.1400 based on the Master Agreement for Lyman Boulevard with the County. The total Fax: 952.227.1404 cost to the City for the project is $4,387,000. However, the County has not finalized the project and there may be additional right of way costs due to one property owner Planning & contesting the value of the purchase of land. At this time, staff feels the City should Natural Resources Phone: 952227,1130 advance state aid to cover the known costs of the project. The amount requested to Fax: 952.227.1110 advance is $950,000. Public Works Cities can request advancement of state aid funds, without interest, if the state aid 1591 Park Road account has enough funds to cover the requests. It is estimated the City will have a Phone: 952.227.1300 deficit in our state aid account for two years if these funds are advanced. The Capital Fax: 952.227.1310 Improvement Plan does not have any projects planned in the next two years so Senior Center advancement of funds will not delay any other projects. Phone: 952.227.1125 Fax: 952.227.1110 The remaining funds necessary to pay for the project came from the Arterial Collector Development Fund, Park Dedication Fund, Surface Water Utility Fund, Water Utility Web Site Fund and Sanitary Sewer Utility Fund. www.ci.chanhassen.mn.us Attachment: Resolution g: \eng \public \_2000 -2009 public projects \_2006 projects \06 -03 lyman imp (powers to th 41) \110810 bkgd adv msa funds 2nd req.doc Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: November 8, 2010 RESOLUTION NO: 2010 - MOTION BY: SECONDED BY: RESOLUTION FOR MUNICIPAL STATE AID FUNDS ADVANCE FOR LYMAN BOULEVARD IMPROVEMENTS, PHASE I PROJECT NO. 06-03 WHEREAS, the Municipality of Chanhassen implemented a Municipal State Aid Street Project in 2008 which required State Aid funds in excess of those available in its State Aid Construction Account, and WHEREAS, said municipality has constructed said project through the use of an advance from the Municipal State Aid Street Fund to supplement the available funds in their State Aid Constructiop Account, and WHEREAS, the advance is based on the following determination of estimated expenditures: Account Balance as of date 10/20/10 $ 73,820.00 Project No. 06 -03 Total Estimated Disbursement $ 950,000.00 Advance Amount (amount in excess of acct. balance) $ 876,180.00 WHEREAS, repayment of the funds so advanced will be made in accordance with the provisions of Minnesota Statutes 162.14, Subd. 6 and Minnesota Rules, Chapter 8820.1500, Subp. 10b, and WHEREAS, the Municipality acknowledges advance funds are released on a first- come -first -serve basis and this resolution does not guarantee the availability of funds. NOW, THEREFORE, BE IT RESOLVED that the City of Chanhassen request that the Commissioner of Transportation approve this advance for financing approved Municipal State Aid Street Project of the Municipality of Chanhassen in an amount up to $950,000.00 and hereby authorize repayments from subsequent accruals to the Municipal State Aid Street Construction Account of said Municipality from future year allocations until fully repaid. Passed and adopted by the Chanhassen City Council this 8 day of November, 2010. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT