City of Blue Earth

1 CITY OF BLUE EARTH 2 MINUTES 3 SPECIAL CITY COUNCIL MEETING 4 WEDNESDAY, APRIL 24 2013 5:15 P.M. 5 6 CALL TO ORDER 7 8Mayor Scholtes called the meeting to order at 5:15 P.M. 9 10 ROLL CALL 11 12Mayor Scholtes noted that Councilmembers Gaylord, Brod, 13Erichsrud, Gartzke and Haase were present. Councilmembers 14Huisman was excused. Staff members present: City Administrator 15Kathy Bailey and City Engineer Wes Brown. 16 17 PUBLIC PRESENT 18 19General Manager of Light and Water Department Tim Stoner. 20 21 DETERMINATION OF A QUORUM 22 23Quorum present. 24 25 PLEDGE OF ALLEGIANCE 26 27Mayor Scholtes led the pledge of allegiance. 28 29 30 OLD BUSINESS 31 32Mayor Scholtes reported that Light and Water General Manager Tim 33Stoner had presented a signed copy of Resolution 13-15 that 34states Blue Earth Light and Water enter into Mn/Dot Agreement No. 3502941 with the City of Blue Earth and the State of Minnesota 36Department of Transportation. 37 38City Administrator Kathy Bailey reported that a copy of the full 39agreement was received and emailed to all Councilmembers for 40review. 41 42City Engineer Wes Brown reported that after receiving version 43number 3 with itemized construction costs (see attachment “A”) 44they were able to reach an agreement. Brown explained that the 45original draft starting total local share that Mn/DOT was 46requesting was $1,843,000.00. The cost has been brought down to

1 1 1$1,652,000.00. The current cost split is based on alternate 2number 1 which is the concrete alternate. Brown explained that 3it will depend on which alternate is selected after the bidding 4is complete and the bids as listed, are based on estimated unit 5prices. 6 7Brown began by explaining item number 1 in the amount of 8$454,120.05 which is the standard bid roadway items. This is for 9all of the costs for 3rd Street, pavement, curb and gutter, base 10work, storm sewer on 3rd Street, all patching for pavement, sod, 11sidewalk, everything related to the sewer and water work was 12included in this line item. Brown verified that amount is 13representative for the proper quantities associated with the City 14and Light and Water share of the work giving $371,178.35 City 15share and $82,941.70 the Light and Water share. This amount is 16for patching from the water main. The City’s share includes all 17of 3rd Street plus sewer patching plus the storm sewer on 3rd 18Street. Brod wanted to know if the $454,000.00 is for 1 city 19block which is 3rd Street west of 169 and east of 169. Brown 20explained no it is just the west side and not only includes 3rd 21Street and 3rd Street storm sewer; it includes patching along the 22entire 169 corridor on side streets. 23 24Brown noted that the $75,000.00 credit is M/DOT’s share of 3rd 25Street storm sewer and street costs based on the drainage area. 26Brown reported that they had calculated their share to be 27approximately $55,000.00 so they are providing a $75,000.00 28credit. 29 30Brown explained the $45,591.40 was related to the 1st Street leg 31of the roundabout at Leland Parkway. Brown reported that Mn/Dot 32had based this cost based on a signalized intersection where 33there would be equal legs each direction. The roundabout works 34differently so Mn/DOT has revised the way they calculate 35intersections. This number is still based on the original method 36and credited the city $60,663.05 to cover the 1st Street leg and 37some of the Construction Engineering costs. 38The $259,548.00 is for corridor lighting not in the roundabout. 39This cost is related to the Light and Water’s portion. Brown 40explained that the $25,000.00 is cost related to a decorative 41pole in the round about that cost more than typical Mn/Dot 42standard lighting. The $80,000.00 credit is Mn/Dot’s 43participation for state share cost of corridor lighting based on 44a percentage used on every project. Brod remarked that it is 45essentially a credit against the $259,548.00. 46

1 2 1Brown explained that he has taken the $20,000.00 and prorated the 2amount between the Light and Water and City based on the cost 3share included in the contract compared to the Cities. 4 5Brown explained that there is a construction engineering cost of 68% that Mn/DOT has a policy that any work that they inspect and 7administrate and do materials testing, staking the local agencies 8are charged for that work which is 8% of the subtotal of 9$564,000.00. Brown noted that he had questions with that charge 10because some of the items are related to the sewer and water but 11they have credited the $20,000.00 to offset some of those fees. 12 13$529,592.00 is the City sanitary sewer cost that does not include 14surface restoration. Brown added that part of this cost will be 15covered by PFA funding. 16 17$473,381.00 is the water cost to Blue Earth Light and Water 18Department. Similarly, Mn/Dot charges 4% construction 19engineering cost for work administered but they are not 20necessarily doing inspection and staking because Bolton and Menk 21will be doing the inspection and staking for the sewer and water 22work so instead of 8% it was reduced to 4%. 23 24Total amount calculated for the City’s share is $854,000.00 that 25will be paid to Mn/DOT and $798,000.00 for Light and Water to pay 26to Mn/DOT for a grand total of $1,028,000.00. Brown added that 27there are some engineering costs too that are figured into the 28grand total. Brown noted that these numbers are fixed amounts. 29 30Bailey reported that Mn/DOT is scheduled to open bids on Friday, 31April 26th so we should know the low bidder by Monday. 32 33Brown concluded that he was comfortable with the maintenance 34language as presented. Bailey added that the drainage area 35questions have been addressed with the maps as provided in the 36agreement. Councilmember Erichsrud questioned the start date of 37the construction. Brown said that it should begin as soon as 38contracts are approved. Councilmember Brod questioned what would 39happen if the City said no to the project. Bailey responded that 40the State might just overlay the road. Scholtes said that the 41cost for the City’s part of the project is not that bad 42considering the infrastructure that will be upgraded. Bailey 43agreed and noted that in the last 3 years there has been inlets 44that have collapsed and that will not improve with time and the 45costs continue to increase. 46

1 3 1Mayor Scholtes addressed the consideration of Resolution 13-16 2that the City of Blue Earth enter into Mn/DOT agreement No. 02941 3with the Blue Earth Light and Water and the State of Minnesota, 4Department of Transportation for the following purposes: 5 6To define maintenance and cost share responsibilities and to 7provide payment by the City to the State of the City’s and Blue 8Earth Light and Water and Water’s share of the costs of the 9grading, alternate concrete or bituminous surfacing, drainage, 10roundabouts, municipal utilities and lighting construction and 11other associated construction to be performed upon, along and 12adjacent to Trunk Highway 169 from County State Aid Highway No. 1352 to 1,515 feet north of County State Aid Highway No. 44 within 14the corporate City limits under State Project No. 2207-32. 15 16Motion by Gaylord, second by Erichsrud to approve Resolution 13- 1716 to enter into an agreement No. 02941 with Mn/DOT as presented. 18The motion passed unanimously. 19 20Motion by Erichsrud, second by Gaylord to adjourn the Special 21Council meeting. Mayor Scholtes adjourned the meeting at 5:31 22P.M.