City Council Meeting Date: August 5, 2019
To: Mayor and City Council
City Administrator
From: Sean M. Simonson, Engineering Manager
David E. Bennett, Public Works Director/City Engineer
Title
Consideration of Resolution Requesting Advance Funding from MnDOT for the Construction of Municipal State Aid (MSA) Street Project 2018STRT-A38, Spring Creek Road Reconstruction, and MSA Street Project 2018STRT-A39 Spring Creek Bridge Replacement Project.
Body
Action Requested:
The City Council considers approving the attached Resolution Requesting Advance Funding from Minnesota Department of Transportation through the City of Northfield State Aid Construction Account for the Spring Creek Road Reconstruction, 2018STRT-A38 and the Spring Creek Bridge Replacement Project 2018STRT-A39.
Summary Report:
The City of Northfield is a qualifying Minnesota State Aid Street system (MSAS) City. Therefore, the City of Northfield receives a yearly allocation from the Highway User Tax Distribution (HUTD) fund to its Municipal Construction Account for use on the City of Northfield’s designated State Aid Street system. Both Spring Creek Road and the Spring Creek Bridge are part of the City of Northfield’s MSAS system. The allotment is based on a state statue established distribution formula and the City screening boards.
M.S. 162.14, Subd 6 provides for municipalities to make advances from future year’s allocations for expediting construction. This process not only helps reduce the construction cash balance, but also allows municipalities to fund projects that may have been delayed due to funding shortages. These advances will be repaid from the next year’s allocation until fully repaid. The passing of this resolution is a required step to receive the State Aid Advance Funds.
Alternative Options:
City Council could decide not to pursue the resolution; however, additional means of funding would have to be explored to complete the projects.
Financial Impacts:
The City of Northfield currently has $785,979.11 available in its MSAS Construction Fund. It is currently estimated to require $777,144.78 in MSA funds to complete the Division Street and Seventh Street Reconstruction and Washington Street Mill and Overly Project. Additionally, it is estimated to require $567,623.90 in MSA funds to complete the Spring Creek Road Reconstruction, and $478,460.00 to complete the Spring Creek Bridge Replacement Project. Therefore, the City of Northfield is requesting $1,037,249.57 in advance funding from MSAS. Advancement is limited to five times the municipalities’ last construction allotment. The City of Northfield received an allocation of $663,721.00 for the calendar year 2019, therefore, the City of Northfield is eligible for $3,331,860.50 in advance funds. This advance funding process was also utilized funding the 2018 Division Street and Washington Street MSA project.
Tentative Timelines:
Staff will submit the resolution to MnDOT as soon as it is approved to earmark the funds for the upcoming construction project.