1d-1. TH 101: Approve Resolution for Advancement of Funds0
CITY OF
CgAIVHASSEN
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
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Phone: 952.227.1120
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Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
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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
t7' FROM: Paul Oehme, Director of Public Works /City Engineer`
DATE: November 13, 2012
s
SUBJ: TH 101(Lyman Boulevard to Pioneer Trail) Improvement Project
No. 12 -06: Approve Resolution for Advancement of MSAS Funds
PROPOSED MOTION
"Approve Resolution for Advancement of MSAS Funds."
City Council approval requires a simple majority vote of the City Council
present.
BACKGROUND
In 2010, the City was awarded Federal STP funds to make improvements to this
section of TH 101. The Federal funds however do not cover all the construction
costs nor does it pay for the indirect costs such as design and construction
administration. Since this is currently a State of Minnesota trunk highway which
will be jurisdictionally transferred to Carver County once the improvements are
made, the State is planning to pay for the majority of the project costs the Federal
funds do not cover through the State Turnback account. However, MnDOT does
not have turnback funds available in 2013 when the project is planned to be
constructed to cover their financial obligation to the project. The plan is to
advance Municipal State Aid funds through the City's Municipal State Aid
account and MnDOT will pay the advanced funds back to the Municipal State Aid
account in 2016 when turnback funds are programmed to be available. This
advancement will not impact the City's ability to advance its Municipal State Aid
funds for other projects in the future.
To minimize the risk to the City if turnback funds are not available in future
years, MnDOT Metro District has agreed to repay the balance of the advancement
with its District funds.
Attachment: Resolution
Chanhassen is a Community for Life - Providing forToday and Planning for Tomorrow
CITY OF CHANHASSEN
CARVER COUNTY, MINNESOTA
DATE: November 13, 2012 RESOLUTION NO: 2012-
MOTION BY: SECONDED BY:
A RESOLUTION FOR ADVANCEMENT OF MSAS FUNDS FOR
THE HIGHWAY 101 (LYMAN BOULEVARD TO PIONEER TRAIL)
IMPROVEMENT PROJECT NO. 12 -06
WHEREAS, the City of Chanhassen is planning to implement Municipal State Aid
Street Project 194 - 010 -011 in 2013 that will require State Aid funds in excess of those available
in its State Aid Construction Account, and in the Flexible Highway Account (Municipal
Turnback Account); and
WHEREAS, City of Chanhassen is prepared to proceed with the construction of Project
194 - 010 -011 through the use of an advance from the Municipal State Aid Street Fund to
supplement the available funds in their State Aid Construction Account, and in the Flexible
Highway Account (Municipal Turnback Account); and
WHEREAS, the advance is based on the following determination of estimated
expenditures:
Account Balance as of date 10/30/12 $ -0-
Total Estimated Disbursements (194- 010 -011) $ 3,000,000
Advance Amount (amount in excess of acct balance) $ (3,000,000)
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, City of Chanhassen acknowledges advance funds are released on a first -
come- first -serve basis and this resolution does not guarantee the availability of funds; and
WHEREAS, based on current statutes, appropriation practices, and funding levels,
Municipal Turnback Account funds are expected to be available in 2016 to repay an advance
from Municipal State Aid Street Fund; and
WHEREAS, Minnesota Department of Transportation's Metropolitan District has
agreed, by the attached letter from Scott McBride, MNDOT Metropolitan District Engineer, to
Julie Skallman, State Aid Engineer, dated October 10, 2012, to repay the advance with district
funds if the Municipal Turnback Account does not receive appropriations sufficient to repay the
advance.
NOW, THEREFORE, BE IT RESOLVED by the Chanhassen City Council that the
Commissioner of Transportation is hereby requested to approve this advance for financing
approved City of Chanhassen Municipal State Aid Street Project 194- 010 -011 in an amount up to
$3,000,000.00 to be repaid by the Municipal Turnback Account 91DM in 2016. The
Commissioner of Transportation hereby authorizes repayments from subsequent accruals to
Chanhassen's Municipal State Aid Street Construction Account from future year allocations until
fully repaid should the Municipal Turnback Account not receive appropriations sufficient to
repay the advance, and should Minnesota Department of Transportation's Metropolitan District
fail to repay the advance.
Passed and adopted by the Chanhassen City Council this 13'' day of November, 2012.
ATTEST:
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
YES NO ABSENT
0
Minnesota Depart of Transportation
Metropolitan District
Waters Edge
1500 West County Road .132
Roseville, MN 5511.3
October 30, 2012
Julie Skaliman
State Aid Engineer
State Aid for Local Transpotation Division
Transportation Building
395 John Ireland Blvd
Saint Paul, MN 55155
Dear Julie Skallman:
RE: MSAS Advance Repayment
SP 194 -010 -011, 1009 -22
Minnesota Highway 101
City of Chanhassen
City of Chanhassen intends to request an advance of funds from the Municipal State Aid
Street Fund for State Project 194 -010 -011, a local federal project on Minnesota Highway 101.
The city is leading this project which will result in a transfer of roadway jurisdiction to Carver
County. The limits of the construction project and transfer are from Lyman Boulevard to Pioneer
Trail.
In lieu of the availability of all funds needed for construction of the project in 2013, the city
will request a municipal fund advance of up to $3,000,000. Repayment of funds advanced to the
city is planned for year 2016 from future allocations to the Municipal Turnback Account (MTB).
Funds sufficient to repay the total advance amount are included in Metro District's 2016 tumback
funding program. Metro District State Aid Office will request allocation of the funds to the MTB
account through State Aid for Local Transportation division for inclusion in the commissioner's
recommendations to the governor's fiscal year 2016 -2017 biennial budget. Attached is a
description and schedule for request and repayment of the funds from the Flexible Highway
Account to the MTB.
If, for any reason, sufficient funds are not allocated to the Municipal Turnback Account to
repay the advance, Metro District will repay the balance of the advance with its district funds.
District Engineer
C: Paul Oehme, Public Works Director /City Engineer, City of Chanhassen
Rick Nonaas, Assistant State Aid Engineer, SALT