Adopting a Resolution authorizing Agency Agreement No. 1063586 with the Minnesota Department of Transportation for Federal Participation in the 18th Avenue SW Reconstruction Project - Project No. J7346.

Pursuant to Minnesota Statute 161.36, Local Governments designate the Minnesota Department of Transportation (MnDOT) to act as the Local Government's agent in accepting federal funds on the Local Government's behalf for the construction, improvement, or enhancement of transportation financed in whole, or in part, by the Federal Highway Administration (FHWA).

The 18th Avenue SW Reconstruction is to be constructed over two construction seasons, 2027 and 2028, from 40th St SW to Mayowood Rd SW. This agreement is necessary for MnDOT to act as our agent and to approve the advance construction funds that are identified for 2028. Without authorizing this agreement, the City cannot request 2028 funding until after October 1, 2027.

The bid opening is scheduled for October 20, 2026, with construction award anticipated in November 2026.

This agreement allows the City to continue to deliver the 18th Avenue SW Reconstruction Project with the 2028 funds that were awarded to the project, in advance of 2028. This agreement is also necessary to allow MnDOT to act as the agent to pass the federal funding on to the City.

December 11, 2023: Council Meeting – Intergovernmental Agreement with Olmsted County for design and construction of Reconstruction of County Rd 147 (18th Ave SW) - Project No. J7346
February 21, 2024: Council Meeting – Professional Services Agreement with Bolton and Menk for design services for the Reconstruction of County Rd 147 (18th Ave SW) - Project No. J7346
July 23, 2024: Open House No. 1
January 15, 2025: Open House No. 2 March 3, 2025: Council Meeting – Geometric Layout for 18th Avenue SW Reconstruction – Project No. J7346
September 22, 2025: Council Meeting – Initiate Property Acquisition for 18th Avenue SW Reconstruction – Project No. J7346
October 20, 2025: Council Meeting - Initiation of Condemnation for Reconstruction of 18th Ave SW from Mayowood Rd SW (CR 125) - Project No. J7346
January 21, 2026: Council Meeting - Contract with Hugo's Tree Care, Inc for tree clearing for the Reconstruction of 18th Avenue SW from Mayowood Rd SW (CR 125) - Project No. J7346
June 1, 2026: Council Meeting - Authorizing the Advertisement for Bids for the Reconstruction of 18th Avenue SW Reconstruction - Project No. J7346

This agreement is required for the City to receive federal funds for this project. The following are the estimated funding sources/amounts based on the Engineers Estimate. Actual funding will be based on bids.

The estimated construction cost for this project is $21,700,000. An additional 25% is included to account for design, construction contingencies, right-of-way acquisition, and construction administration, bringing the estimated project costs to $27,125,000. The City and County have secured $9,581,000 dollars in federal funding. The remainder of the funding will be a cost share between the City and County in with accordance with the City-Olmsted County Cost Share Intergovernmental Agreement for CR 147. The City's anticipated funding sources and amounts include:

Sanitary Utility - $640,000

Water Utility - $882,000

Storm Water Utility - $1,426,000

Electric Utility - $3,000,000

Transportation Advancement Account - $780,000

Street Reconstruction (J2200) - $3,700,000

No alternative actions are suggested at this time.