Item Coversheet
CITY COUNCIL STAFF REPORT
Monday, February 22, 2021

 

Subject

Approve Amendment to Joint Powers Agreement of the Trunk Highway 5 Regional Trail & Underpass
Section CONSENT AGENDA Item No: D.8.
Prepared By
Jerry Ruegemer, Park and Recreation DirectorFile No: 

PROPOSED MOTION

The City Council approves the First Amendment to the Joint Powers Agreement for the City of Chanhassen's share of the cost participation of the Trunk Highway 5 Regional Trail and Underpass for a 5-year payment schedule to reimburse Carver County.

 

Approval requires a Simple Majority Vote of members present.

SUMMARY

In June of 2020, the City Council passed and authorized an increase in budgeted expenditures related to the City of Chanhassen's share (25%) of the Highway 5 Regional Trail and Underpass from $1,200,000 to $1,681,549.  Increased construction expenditures exceeded the $1,200,000 that was approved on July 2, 2019 with the original Joint Powers Agreement with the City and Carver County.  At the June, 2020 City Council meeting the city and county agreed upon a 5-year payment schedule for the remaining balance of the construction project expenses.  The city's share of the completed 2020 construction costs totaled $497,746.28 which was paid to Carver County. 

 

Breakdown of Payment Schedule

 

2020: Four Hundred Ninety-Seven Thousand, Seven Hundred Forty-Six Dollars and Twenty-Eight Cents ($497,746.28)

2021: Seven Hundred Two Thousand, Two Hundred Fifty-Three Dollars and Seventy-Two Cents ($702,253.72) payable commensurate with invoices for work completed in 2020 and 2021 but invoiced in 2021, and Ninety-Six Thousand, Three-Hundred and Nine Dollars and Seventy-Seven Cents for work completed and invoiced in 2021. ($96,309.77)

2022: Ninety-Six Thousand, Three-Hundred and Nine Dollars and Seventy-Seven Cents ($96,309.77)

2023: Ninety-Six Thousand, Three-Hundred and Nine Dollars and Seventy-Seven Cents ($96,309.77)

2024: Ninety-Six Thousand, Three-Hundred and Nine Dollars and Seventy-Seven Cents ($96,309.77)

2025: Ninety-Six Thousand, Three-Hundred and Nine Dollars and Seventy-Seven Cents ($96,309.77)

Payment Total:   One Million, Six-hundred Eighty-One Thousand, Five Hundred and Forty-Eight Dollars and Eighty-Six Cents ($1,681,548.86).

The First Amendment of the Joint Powers Agreement with Carver County illustrates the schedule and terms for the 5-year interest free loan for the City of Chanhassen's share to complete the project.  

RECOMMENDATION

The City Council approves the First Amendment to the Joint Powers Agreement for the City of Chanhassen's share of the cost participation of the Trunk Highway 5 Regional Trail and Underpass for a 5-year payment schedule to reimburse Carver County.

ATTACHMENTS:
Description
JPA First Amendment
JPA Original