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1c. TH 5 Underpass Imp: Approve Funding Agreements and LUP0 CITY OF CHANAASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Paul Oehme, Director of Public Works /City Engineer DATE: April 23, 2012 p SUBJ: TH 5 Underpass Improvement at Minnewashta Parkway, PW067132b: 1. Approve Funding Agreements with the University of Minnesota Landscape Arboretum and City of Victoria 2. Approve Limited Use Permit with the Minnesota Department of Transportation (MnDot) PROPOSED MOTION "The City Council approves funding agreements with the University of Minnesota Landscape Arboretum and City of Victoria and approves a Limited Use Permit with the Minnesota Department of Transportation for the TH 5 Pedestrian Underpass at Minnewashta Parkway." City Council approval requires a simple majority vote of the City Council present. BACKGROUND On January 27, 2012, MnDot opened bids for the TH 5 improvements. On October 24, 2011, the City Council approve a resolution for a DNR local trail grant application. This application was select for funding. On April 11, 2011, the City Council held a public hearing for the TH 5 improvements MnDot is planning for the summer of 2012. On June 8, 2009, the City Council approved a resolution for a transportation enhancement federal fund grant for a pedestrian underpass of TH 5 at the Minnewashta Parkway intersection. This grant application was selected for funding in 2010. DISCUSSION The staff is requesting the City Council consider approving funding agreements with the University of Minnesota Landscape Arboretum and City of Victoria for the TH 5 pedestrian underpass at Minnewashta Parkway. Currently, there is not a lot of Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Todd Gerhardt TH 5 Underpass Improvement Project April 23, 2012 Page 2 pedestrian movement from Minnewashta Parkway to the Minnesota Landscape Arboretum. However, the Arboretum wants to encourage more "walk -up" traffic and is planning to make internal capital improvements for this to happen. The City has partnered with the Arboretum to encourage the general public to utilize this facility. Chanhassen residents will be able to cross TH 5 at Minnewashta Parkway with a safe grade- separated connection to gain access to the Arboretum. The pedestrian underpass will allow the University of Minnesota Landscape Arboretum to become an extension of the City's park system for all to enjoy. The City of Victoria is planning to connect their trail system to the underpass and to the Lake Minnetonka LRT Regional Trail. The City secured funding from a Federal and Minnesota DNR grant to help pay for the underpass improvements. The Minnesota Department of Transportation completed the design of the underpass and bid out the project at no cost to the City. They also will be completing the construction administration and inspection of the underpass with the TH 5 improvements. The total construction cost for the underpass is $723,012.79. There was approximately $51,859.90 of indirect cost associated with the project. These costs included grant application preparation appraisal and easement acquisition and construction administration costs. The federal grant is eligible to pay for $578,410.23 of the construction cost. The DNR grant will help pay for $100,000.00 of the project. The remaining cost of the construction and indirect costs the grant funds will not cover is $96,463.46. Therefore each agency will contribute $32,154.49 to the project. The City of Chanhassen funding portion is proposed to be paid for out of the Park Dedication Fund. As you are aware, these funds are acquired as a fee from developers when new developments are built in the City. The two agreements are slightly different because they were reviewed at different times and by the agencies respective attorneys which requested different language in the agreement. The city attorney has reviewed the agreements and finds them acceptable. Staff is also requesting the City Council consider approving a resolution for a Limited Use Permit for the pedestrian underpass. The Limited Use Permit states the City will operate and maintain the underpass. This is the same permit the City has approved for the new underpass to be constructed this fall at TH 41 and the Minnewashta Regional Park and the underpass on TH 5. Attachments: 1. Funding agreements with the University of Minnesota Landscape Arboretum and City of Victoria 2. Resolution gAeng \pub1ic \pw067b2b th 5 underpass \bkgd 042311 appr funding agreements & lup.doc AGREEMENT THIS AGREEMENT is made and entered into this day of , 2012, by and between the REGENTS OF THE UNIVERSITY OF MINNESOTA, a Minnesota constitutional corporation, whose address is c/o Real Estate Office, Suite 424, Donhowe Building, 319 15 Avenue SE, Minneapolis, Minnesota 55455 ( "UofM ") and the CITY OF CHANHASSEN, a Minnesota municipal corporation, whose address is 7700 Market Boulevard, Chanhassen, Minnesota 55317 ( "Chanhassen "). RECITALS A. The parties have agreed to participate in funding the construction of the Trunk Highway 5 and Minnewashta Parkway Trail Underpass, which will provide a pedestrian/bicycle underpass beneath Trunk Highway 5 linking planned bicycle /pedestrian improvements in the University of Minnesota Landscape Arboretum with the trail systems of Chanhassen and the City of Victoria, as shown on the attached Exhibit A (the "Project "). B. Chanhassen has applied for and has been awarded a maximum of $979,200 in Federal Transportation Enhancement Funds for the Project subject to a twenty percent (20 %) match requirement. Chanhassen will use its best efforts to secure additional grant funding. C. The estimated project cost which reflects The Minnesota Department of Transportation ( "MnDOT ") latest construction estimates is $850,000. D. All reasonable efforts will be made to have the Project constructed in 2012. E. Chanhassen intends to enter into an agreement (the "Contract ") with MnDOT to have the Project designed, bid and constructed (as part of State Project # 1002 -89). NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PROJECT COST. "Project Cost" means the following actual, out -of- pocket costs associated with the Project: costs required to be paid pursuant to the Contract, costs of soil testing, engineering fees, acquisition of an easement on the north side of Truck Highway 5 from Faith Lutheran Church, the Arboretum land license paid to the UofM pursuant to a separate agreement, and appraisal fees. The following costs shall not be included in the Project Cost: the cost to prepare grant applications, legal fees, and travel costs. Each party agrees to pay its own legal fees. 2. MnDOT CONTRACT. Chanhassen will use its best efforts to enter into the Contract. 3. COST ALLOCATION. The UofM agrees to reimburse Chanhassen one third (1/3) of the twenty percent (20 %) match requirement for the Project Cost up to a maximum of 16105901 RNK:11 /17/2011 $52,000.00, such amount to be paid in accordance with Section 4 of this Agreement which Chanhassen will apply towards payment of the Project Cost. 4. PAYMENT. Chanhassen will act as the paying agent for all Project Cost including all payments to MnDOT. Chanhassen, in turn, will bill the UofM for its share of the Project Cost in accordance with the cost allocation. Upon presentation of an itemized claim and any other reasonable supporting documentation requested by the UofM, the UofM shall reimburse Chanhassen for its share of the Project costs within thirty (30) days from the receipt of the claim and all other reasonable supporting documentation required by the UofM. If any portion of an itemized claim is questioned, the remainder of the claim shall be promptly paid, and accompanied by a written explanation of the amounts in question. Notwithstanding anything in this Agreement to the contrary, the UofM's obligations to reimburse Chanhassen for its share of the Project Cost are subject to the following conditions: A. Chanhassen uses its best efforts to secure additional grant funding; and B. Chanhassen enters into the Contract. 5. PROJECT OWNERSHIP. Upon completion of the Project the Project shall be owned and maintained by Chanhassen. 6. EMPLOYEE STATUS. Any and all persons engaged in the work to be performed by one party shall not be considered employees of the other party, and any and all claims that may or might arise out of the employment context on behalf of employees while so engaged, and any and all claims made by any third party as a consequence of any act or omission on the part of employees while so engaged on any of the work contemplated herein shall not be the obligation or responsibility of the other parry. 7. AUDITS. Any books, records, documents, and accounting procedures and practices of a party that are related to the Project are subject to examination by the other party and either the Legislative Auditor or the State Auditor as appropriate. The parties agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 8. INDEMNIFICATION. Each party will be responsible for their own acts and omissions and the result thereof to the extent authorized by law. 9. DATA PRACTICES. All data created, collected, received, maintained or disseminated for any purpose in the course of this Agreement is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. 10. INTEGRATION. The entire and integrated agreement of the parties contained in this Agreement, together with that certain Temporary Construction Agreement and that certain License Agreement between the parties, shall supersede all prior negotiations, representations, or agreements between the parties regarding the Project; whether written or oral. 161059v01 RNK:11/17/2011 IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written. REGENTS OF THE UNIVERSITY OF IG r CITY OF C Thomas A. Furlong, Mayor AND Todd Gerhardt, City Manager DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (652) 452 -5000 RNK 16105901 RNK:11 /17/2011 U o N O Exhibit A AGREEMENT THIS AGREEMENT is made and entered into this day of , 2012, by and between the CITY OF VICTORIA, a Minnesota municipal corporation, whose address is 7951 Rose Street, Victoria Minnesota ( "Victoria ") and the CITY OF CHANHASSEN, a Minnesota municipal corporation, whose address is 7700 Market Boulevard, Chanhassen, Minnesota ( "Chanhassen "). RECITALS A. The parties have agreed to participate in funding the construction of the Trunk Highway 5 and Minnewashta Parkway Underpass (the "Project "). B. Chanhassen has applied for and has been awarded a maximum of $979,200 in Federal Transportation Enhancement Funds for the Project subject to a twenty percent (20 %) match requirement. Chanhassen will attempt to secure additional grant funding. C. The estimated project cost which includes the Minnesota Department of Transportation ( "MnDOT ") latest construction estimates is $774,873.69. D. All reasonable efforts will be made to have the Project constructed in 2012. E. Chanhassen intends to enter into an agreement with MnDOT to have the project constructed with State Project # 1002 -89. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1. PROJECT COST. Project cost means all costs associated with the Project including a contract with MnDOT, soil testing, engineering fees, the cost to prepare grant applications, acquisition of easements, the Arboretum land license, appraisal fees and legal fees. 2. MnDOT CONTRACT. Chanhassen will endeavor to enter into a contract with MnDOT to design, bid and construct the Project. 3. COST ALLOCATION. Victoria agrees to pay Chanhassen $32,154.49, which Chanhassen will apply towards payment of the Project Cost. 4. PAYMENT. Chanhassen will act as the paying agent for all Project costs including all payments to MnDOT. Chanhassen, in turn, will bill Victoria for the Project costs in accordance with the cost allocation. Upon presentation of an itemized claim Victoria shall reimburse Chanhassen for its share of the Project costs within thirty (30) days from the presentation of the claim. If any portion of an itemized claim is questioned, the remainder of the claim shall be promptly paid, and accompanied by a written explanation of the amounts in question. 161058v01 RNK:11 /17/2011 5. PROJECT OWNERSHIP. Upon completion of the Project the Project shall be owned and maintained by Chanhassen. Chanhassen shall maintain the facility consistent with generally accepted standards utilized by governmental entities for similar facilities, unless the parties agree to a different standard. The facility shall remain open for use by the public unless otherwise agreed to by the parties. Upon reasonable notice, Chanhassen may close the facility to conduct maintenance activities. In addition, upon reasonable notice either party may restrict general public access for special events. 6. EMPLOYEE STATUS. Any and all persons engaged in the work to be performed by one party shall not be considered employees of the other party, and any and all claims that may or might arise out of the employment context on behalf of employees while so engaged, and any and all claims made by any third party as a consequence of any act or omission on the part of employees while so engaged on any of the work contemplated herein shall not be the obligation or responsibility of the other party. 7. AUDITS. Any books, records, documents, and accounting procedures and practices of a party are subject to examination by the other party and either the Legislative Auditor or the State Auditor as appropriate. The parties agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. S. INDEMNIFICATION. Each party will be responsible for their own acts and omissions and the result thereof to the extent authorized by law. 9. DATA PRACTICES. All data created, collected, received, maintained or disseminated for any purpose in the course of this Agreement is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. 10. INTEGRATION. The entire and integrated agreement of the parties contained in this Agreement shall supersede all prior negotiations, representations, or agreements between the parties regarding the Project; whether written or oral. 161058v01 RNK:11 /17/2011 IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first above written. STATE OF MINNESOTA ) ( ss. COUNTY OF GLGo ) CITY OF VICTORIA BY: / IJ, 4J A ..) Mary 1-fer Thun,Mayor AN Jennifer tsch, City' Clerk The foregoing instrument was acknowledged before me this day of 4,0r; ( , 2012, by Maly Pefskbcree - ` ALA.. and by jeoni l e, sck the MCLc o f and C / C le k, of the CITY OF VICTORIA, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Nola J. Dickhausen Notary Public =s✓ : Minnesota t Ny Commission Expires January 31.2011 • 161058v01 RNK:11 /17/2011 CITY OF CHANHASSEN STATE OF MINNESOTA ) ( ss. COUNTY OF CARVER ) IC Thomas A. Furlong, Mayor v Todd Gerhardt, City Manager The foregoing instrument was acknowledged before me this day of , 2012, by Thomas A. Furlong and by Todd Gerhardt, the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 Telephone: (652) 452 -5000 RNK NOTARY PUBLIC 161058v01 4 RNK:11 /17/2011 TH 5 Pedestrian Underpass at Minnewashta Parkway City Project # PW 0676213 SP # 1002 -89 Cost Split per (3) Agency $32,154.49 Chanhassen, Victoria & Arboretum Jan 26th Letting MnDot Bid Amount $723,012.79 20% local Match $144,602.56 Federal Grant Application $9,000.00 Church Easement $20,399.20 Appraisals $900.00 Arboretum ROW $9,993.50 MnDot Engineering (8%) $11,568.20 Total Project Cost Estimate $774,873.69 Federal Grant Funds - $578,410.23 DNR Grant Funds - $100,000.00 Total Local Share Estimate $96,463.46 Cost Split per (3) Agency $32,154.49 Chanhassen, Victoria & Arboretum Data is considered Non - public prior to project award. - 1 - REVISED SCHEDULE "I" Agreement No. 00396 City of Chanhassen S.P. 1002 -89 T.H. 5 =121) Preliminary: December 28, 2011 S.P. 194- 010 -010, S.P. 194- 010 -012 Revised: February 17, 2012 S.A.P. 010- 611 -010, S.A.P. 010- 613 -007 Fed Proi. STP -BR- TEA -HSIP 1012(083) Roadwa , pedestrian tunnel, bike trail, sidewalk, retaining wall, and drainage construction to start approximately Aril 15, 2012 under State Contract No. 120002 with S M HENTGEST & SONS INC. located on T.H. 5 from approx. 1,000' west of Minnewashta Parkway to approx. 2,300' east of Minnewashta Parkwa and on Minnewashta Parkway from T.H. 5 north approx. 550' and on Lone Cedar Lane from E.S. 0 +08.00 to E.S. 6 +80.60. CITY COST PARTICIPATION TOTALS S.P. 194- 010 -012 S.P. 194- 010 -010 FEDERAL AID Federally Aided Federally Aided MATCH 10% Match 20% Match From Sheet No. 5 138,217.68 1,243,959.08 From Sheet No. 7 144,602.56 578,410.23 Construction Subtotals $138,217.68 $144,602.56 $1,822,369.31 Anticipated Total City Construction Costs $2,105,189.55 Construction Engineering (8 %) 11,057.41 11,568.20 145,789.55 Construction+ Construction Engineering Subtotals $149,275.09 $156,170.76 $1,968,158.86 1) Total City Obligation $2,273,604.71 Total Anticipated Federal Aid $1,968,158.86 2 Total City Obligation mimes Anticipated Federal Aid $305,445.85 (1) Amount of total City obligation as described in Article 5.1 of the Agreement (2) Amount of advance payment as described in Article 5.2 of the Agreement Data is considered Non - public prior to project award. - 1 - CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: April 23, 2012 RESOLUTION NO: 2012- MOTION BY: SECONDED BY: APPROVE RESOLUTION FOR A LIMITED USE PERMIT TO CONSTRUCT, OPERATE, AND MAINTAIN A PEDESTRIAN TRAILIUNDERPASS WITHIN THE ADJACENT TO TH 5 AT MINNEWASHTA PARKWAY PW067B2b WHEREAS, the City of Chanhassen is a political subdivision, organized and existing under the laws of the State of Minnesota, and WHEREAS, the City Council of the City of Chanhassen has approved a plan to construct a pedestrian trail /underpass adjacent to and under TH 5 at Minnewashta Parkway to promote the orderly and safe crossing of the highway; and WHEREAS, the State of Minnesota Department of Transportation (MnDOT) requires a Limited Use Permit for the construction and utilization of said pedestrian trail /underpass. NOW, THEREFORE, BE IT RESOLVED by the Chanhassen City Council: 1. Hereby enters into a Limited Use Permit with MnDOT to construct, operate, and maintain a pedestrian trail /underpass adjacent to and under TH 5 of the State of Minnesota. The City of Chanhassen shall construct, operate, and maintain said trail /underpass in accordance with the Limited Use Permit granted by MnDOT. Passed and adopted by the Chanhassen City Council this 9 th day of April, 2012. ATTEST: Todd Gerhardt, City Manager Thomas A. Furlong, Mayor YES NO ABSENT