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VII.2. Subordinate Funding Agreement 05 - Southwest LRT; Elverum (CR2017-005) December 27, 2016 Council Report 2017-005 SUBORDINATE FUNDING AGREEMENT 05—SOUTHWEST LRT Proposed Action Staff recommends adoption of the following motion: Move to approve Subordinate Funding Agreement (SFA 05) between the City of Hopkins and the Metropolitan Council. With this motion the Subordinate Funding Agreement will be executed. Overview As a city involved in the design and construction of the SW LRT project, Hopkins is an interested party in how the line is developed. Throughout the planning and design, the City of Hopkins has recommended items that are necessary to fully-connect and enhance the project’s benefits. Some of those items were not included in the project base budget, but are included in the bid package for the project based on demonstrated local financial support. In August 2015, the City of Hopkins passed Resolution 2015-057, committing $30,000 in funding support for a stairway portion of the Blake Road Regional Trail underpass. The Subordinate Funding Agreement (SFA) further commits the City of Hopkins to pay $30,000 towards the construction of the stairway. Primary Issues to Consider The stairway is an important element to the overall design and function of the trail underpass, allowing users to exit closer to Blake Road and the SW LRT station platform. The City has previously committed to this work, and the SFA is the legal agreement to assure the work is included in the bid package. Supporting Information • Subordinate Funding Agreement (SFA 05) _____________________________ Kersten Elverum Director of Planning & Development Financial Impact: $30,000 Budgeted: Y/N __Y___ Source: Municipal State Aid Funds Related Documents (CIP, ERP, etc.): _______________________________________       Page 1  Reference Numbers: SWLRT Project: 61001 Metropolitan Council: 14I059E Hopkins: ______________   PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT   MASTER AGREEMENT: Master Funding Agreement – Hopkins   PARTIES TO AGREEMENT:  Metropolitan Council (“Council”)  Hopkins (“City”)     SUBORDINATE FUNDING AGREEMENT Hopkins – 05 (Base Project Work - Construction)     This Subordinate Funding Agreement (“SFA”) with the City of Hopkins is entered into by and between the above named Parties. WHEREAS:   1. The Parties entered into a Southwest Light Rail Transit Project (“Project”) Master Funding Agreement (“MFA”) effective on April 1, 2015. 2. The Parties provided in the MFA that certain aspects of funding for the Project would be determined in subsequent SFAs.   3. The Project scope includes certain investments that are part of the base Project, hereby referred to as “Base Project Work,” for which the City will fund. 4. On August 18, 2015, the City passed Resolution 2015-057, Resolution Committing Funding Support for a Stairway Portion of the Blake Road Regional Trail Underpass – A SWLRT Project Locally Requested Capital Investment, committing support for this Base Project Work Construction. 5. The Parties desire to enter into this SFA in order to provide funding for construction of the City’s Base Project Work. NOW, THEREFORE, in reliance on the statements in these recitals, the Parties hereby agree as follows: 1. Amount of Authorized Funding. The total City commitment for all Base Project Work (described in Exhibit A) shall be in the amount of $30,000. 2. Payment. The funds shall be payable in full in accordance with the payment schedule set forth       Page 2  in Exhibit B. 3. Project Budget. City funds provided for this SFA may only be used to fund the Council’s costs for activities directly related to the work described in Exhibit B and as detailed in the MFA. 4. Project Activity Periods. The project activity period for the purposes of this SFA shall be effective upon execution and shall terminate on the later date of: a) the date all costs under this SFA have been paid, b) the City’s inspection and acceptance of the Local Work, in accordance with the procedures outlined in Exhibit C unless terminated earlier consistent with the terms of the MFA. 5. Ownership/Maintenance. Unless otherwise noted on Exhibit A, after substantial completion of the Base Project Work, the Base Project Work shall become property of the City and all associated warranties and guarantees provided by the Council’s contractor(s) performing work on the Base Project Work shall become the property of the City. Upon the City becoming the owner of the Base Project Work, the City will be responsible for operation and maintenance of the Base Project Work. 6. Project Management. Except for the City’s responsibilities outlined in Exhibit C, the Council shall perform, direct, and supervise all construction, contract administration, and inspection that the Council deems required or necessary and appropriate to complete the Base Project Work. All Base Project shall be performed by the Council or the Council’s contractors, as directed by the Council, in accordance with the Contract Documents, defined in Exhibit C, for the Project. The Council will actively pursue and manage each warranty identified for the duration of the warranty. 7. Incorporation. The terms, conditions, and definitions of the MFA are expressly incorporated into this SFA. [Remainder of page intentionally left blank; signature page to follow]       Page 3  CITY OF HOPKINS METROPOLITAN COUNCIL By: By: Its: Its: Date: Date: By: Its: Date:         EXHIBIT A Description of Base Project Work Name Description Trail Underpass Stairs at Blake Road Includes one set of stairs from street level on Blake Road to the Cedar Lake Trail underpass         EXHIBIT B – Payment Schedule Payment # Payable on or before: Contribution Amount 1 30 Days Following SWLRT Project Civil Contract Notice to Proceed $15,000 2 February 1, 2018 $15,000 Total Base Project Work Amount: $30,000         EXHIBIT C Procedures for Inspection & Acceptance of Base Project The Council shall be responsible for constructing all Base Project at the sole cost and expense of the City, in accordance with the contract specifications, drawing, and change orders (“Contract Documents”). The City shall have the right to review and inspect, at its sole cost and expense exclusive of this SFA, the as-built condition of all Base Project for compliance with Contract Documents prior to the City’s acceptance of the Base Project from the Council. Inspection Process: a. The Council shall provide the City with seven (7) days advance notice of the date on which the Council anticipates reaching an inspection-point for any Base Project. b. The Council shall notify the City of the date on which the inspection-point has been achieved and the Base Project is available for the City’s inspection. The City shall complete its inspection, at its sole cost and expense exclusive of this SFA, within seven (7) days from the date of such notice that the Base Project has reached an inspection-point. c. The City shall provide the Council with written notice of any work that does not strictly conform to the Contract Documents (“Defective Work”) identified by the City in its inspection within seven (7) days from such inspection. The City’s notice of Defective Work must specify the reason(s) the Base Project is defective, and the actions which, in the opinion of the City, must be taken to make the Base Project conform to the Contract Documents. The Council shall in good faith take reasonable steps to address the Defective Work specified in the City’s notice. d. If the Council concurs with the City’s opinion regarding Base Project, the Council shall require its contractor to make corrections. The Council shall notify the City when the Base Project identified by the City as Defective Work has been corrected, and the City shall have up to five (5) business days to conduct an inspection of the corrected Base Project. Upon such further inspection, the City shall either provide a further notice of Defective Work, or a notice that the Defective Work has been corrected. The process shall repeat until the Defective Work is in compliance with the Contract Documents. Disagreements between the Council and the City with respect to the existence of Defective Work shall be resolved in accordance with the Dispute Resolution process outlined in the Master Funding Agreement. e. The City’s failure to inspect the Base Project within the time specified in this Exhibit shall be deemed to waive the City’s right to inspect the Base Project. The City’s failure to inspect the Base Project, or to notify the Council of Defective Work within the time specified in this Exhibit shall be deemed a waiver of the City’s right to request any further changes.         Substantial Completion and Acceptance: a. The Council will provide the City with written notice of the substantial completion after the Council determines that all of the Base Project to be constructed pursuant to this SFA have progressed to the point it is sufficiently complete and in accordance with the Contract Documents. Together, the Parties will inspect the Base Project in accordance with the Inspection Process outlined above. b. After the joint inspection, the City shall provide the Council written acknowledgment that the Base Project has been completed and are suitable for its intended use and the City’s maintenance responsibilities related to the Base Project will begin.