00-0807R

RESOLUTION AUTHORIZING AN AMENDMENT TO THE AGREEMENT WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION AUTHORIZED BY RESOLUTION 00-0581, DECREASING THE ESTIMATED COST THEREOF TO THE CITY BY $135,000.

BY COUNCILOR STOVER:

RESOLVED, that the proper city officials are hereby authorized to execute an amendment to that agreement with the state of Minnesota approved by Resolution No. 00-0581, a copy of which amendment is on file in the office of the city clerk as Public Document No. __________________, for the construction of turning lanes, traffic control signals and utilities at the intersection of Trunk Highway No. 53 and Trunk Highway No. 194 and for the revision of the Joshua Avenue intersection at the above-mentioned intersection under State Project No. 6915-104 and State Aid Project No. 118-010-023, decreasing the amount payable by the city to state thereunder by $135,000.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize an amendment to the city's contract with Mn/DOT which would reduce the amount the city is obligated to reimburse the state for the local share of the costs associated with the road construction project at Trinity Road, Central Entrance and Joshua Street and the related improvements for the Opus/Home Depot project.

Normally, in a project such as the Trinity Road, Central Entrance and Joshua Street Project, Mn/DOT would contract for the entire cost of the project, including the road design work ("preliminary engineering") and the city would enter into a contract with Mn/DOT to reimburse the state for the city's share of all those costs. However, in the case of this project, because of anomalies in state funding, Mn/DOT requested that the city enter into a contract for the preliminary engineering work and agreed that the city would get a credit against the city's share of construction costs equal to Mn/DOT's share of the preliminary engineering costs. On this basis the city entered into a contract with SEH, Inc., to do the preliminary engineering for the entire project.

During the course of the design work, soils conditions were discovered on the construction site which required a substantial increase in the amount of engineering services required to engineer the portions of the project for which the state was responsible; after discussions with SEH, the state and SEH agreed that SEH was entitled to an additional $135,000 to compensate them for the additional work. However, since SEH had contracted with the city and not the state, the problem was to get the additional compensation from Mn/DOT to SEH.

The best method to accomplish this is to reduce the amount the city has to pay the state as its share of the project's construction costs by $135,000 and to have the city increase the amount the city has to pay SEH under its engineering contract by $135,000. The result is that SEH is compensated for its additional work and there is no increased cost to the city.