VII.2. Subordinate Funding Agreement – 04 Southwest LRT; Elverum (CR20107-023) January 31, 2017 Council Report 2017-023
SUBORDINATE FUNDING AGREEMENT 04– SOUTHWEST LRT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Subordinate Funding
Agreement (SFA 04) 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. The
additional work is committed to through a Subordinate Funding Agreement.
Subordinate Funding Agreement 04 includes several locally-requested improvements: the
extension of utilities down the new 17th Avenue, signal work at Excelsior Boulevard related to
the Artery project, and enhancements to the Downtown Hopkins Station plaza including
irrigation, additional lighting and concrete work.
Staff has reviewed and approved the cost estimates, which will be used as the basis for
payment to the Metropolitan Council. Payment will be made as follows: 25% 30 days after
notice to proceed, 50% on February 1, 2018, and the remaining 25% on February 1, 2019.
Primary Issues to Consider
The items included in SFA 04 were discussed with the City Council on previous occasions and
are viewed as prudent in order to meet the overall goals of the City.
Supporting Information
• Subordinate Funding Agreement (SFA 04)
___________________________
Kersten Elverum
Director of Planning & Development
Financial Impact: $771,584 Budgeted: Y/N __Y___ Source: Utility and PIR Funds
Documents (CIP, ERP, etc.): _______________________________________
Page 1
Reference Numbers:
SWLRT Project: 61001
Metropolitan Council: 14I059D
City of Hopkins: _____________
PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT
MASTER AGREEMENT: Master Funding Agreement – City of Hopkins
PARTIES TO AGREEMENT: Metropolitan Council (“Council”)
City of Hopkins (“City”)
SUBORDINATE FUNDING AGREEMENT
City of Hopkins – 04 (Local 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 scopes includes Locally Requested Capital Improvements, hereby referred to as
“Local Work,” for which the City will fund.
4. The Parties desire to enter into this SFA in order to provide funding for construction of the
City’s Local Work.
NOW, THEREFORE, in reliance on the statements in these recitals, the Parties hereby agree as
follows:
1. Amount of Authorized Funding. The total for all Local Work (described in Exhibit A) plus
administration costs shall be in the amount of $771,584.
2. Payment. The funds shall be payable in full in accordance with the payment schedule set forth
in Exhibit A. Any changes to the scope or budget needed to construct the Local Work will be
addressed through change orders funded through a separate Change Order SFA to be entered
into by the City and Council prior to award of the civil construction contract.
Page 2
3. Project Budget. The budget for the Council’s activities described in this SFA is provided in
Exhibit A. City funds provided for this SFA may only be used to fund the Council’s costs for
activities to be directly incurred within the described Specific Description of Funding
Authorization and as detailed in the MFA.
4. Specific Description of Funding Authorization. Activities to be performed by the Council’s
construction contractor and funded by the City include construction of the Local Work
identified on Exhibit A.
5. 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 B.
unless terminated earlier consistent with the terms of the MFA.
6. Entry onto Easements. The Parties hereby grant to each other the right to enter onto property
and any easements and rights-of-way that the Parties may have obtained for construction of
the Local Work in order to fulfill obligations under this SFA.
7. Ownership/Maintenance. Unless otherwise noted on Exhibit A, and after substantial
completion of the Local Work, the Local Work shall become property of the City and all
associated warranties and guarantees provided by the Council’s contractor(s) performing work
on the Local Work shall become the property of the City. Upon the City becoming the owner
of the Local Work, the City will be responsible for operation and maintenance of the Local
Work.
8. Project Management. Except for the City’s responsibilities outlined in Exhibit B, 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 Local Work. All
Local Work 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 B, for the Project.
The Council will actively pursue and manage each warranty identified for the duration of the
warranty.
9. Incorporation. The terms, conditions, and definitions of the MFA are expressly incorporated
into this SFA except as modified herein.
[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 Local Work, Payment Schedule, and Budget Detail
Local
Work Name Description Bid Amount
14a 17th Avenue Water
Main and Sewer
Includes installing water main and
sanitary sewer within the proposed
SWLRT construction of 17th
Avenue South.
$393,679
14b
Traffic Signal
Improvements at 8th
Avenue and Excelsior
Boulevard
Includes installing three traffic
signal poles and APS on the
northeast, northwest, and southwest
corners of the Excelsior Boulevard
and 8th Avenue intersection.
$245,861
14c
Downtown Hopkins
Station Plaza
Enhancements
Includes expanding the existing
irrigation system at the Downtown
Hopkins Station Plaza with a drip
type system, providing additional
foundations and conduit for
additional lighting and power
receptacles to be installed by the
City, and upgraded pavement along
the ‘spur’ pathway.
$109,571
Bid Total $749,111
Administration (3%) $22,473
SFA Total $771,584
Payment Schedule for Local Work
Payment
# Payable on or before: Amount
1
30 Days Following SWLRT
Project Civil Contract Notice to
Proceed
25%: $192,896
2 February 1, 2018 50%: $385,792
3 February 1, 2019 Remaining balance: $192,896
1/25/2017
Originator: City of Hopkins
22-Dec-16
Description:
Bid item Description Quantity Units Unit Price Bid Total
134 Hydrant 1 EA -7,661.80 -7,661.80
135 6" Valve Box 1 EA -946.59 -946.59
138 6" Gate Valve 1 EA -2,655.22 -2,655.22
Total Cost :($11,264)
Bid item Description Quantity Units Unit Price Bid Total
1000 8" DIP Watermain 446 LF 62.65 27,941.90
1004 12" DIP Watermain 1023 LF 128.43 131,383.89
1010 8" PVC Sanitary line 1062 LF 21.89 23,247.18
1012 8" PVC Cap End 6 EA 331.52 1,989.12
1022 18 x 12 DIP Watermain Joint
Tee
1 EA 4,174.00 4,174.00
1025 12" x 8" Cross Watermain 3 EA 1,368.05 4,104.15
1027 8 x 6 250 PSI Mech Joint Tee 1 EA 1,231.36 1,231.36
1028 12 x 6 DIP Watermain Joint
Tee
1 EA 1,895.83 1,895.83
1030 DIP 8" End Cap 5 EA 564.86 2,824.30
1031 Cap Watermain at Removal
limit
1 EA 708.13 708.13
1032 12" 45' Bend Watermain 2 EA 674.47 1,348.94
1033 8" Gate Valve 6 EA 3,794.29 22,765.74
1034 Hydrant 1 EA 7,661.86 7,661.86
1035 6" Valve Box 1 EA 946.59 946.59
1036 Watermain Cap for future
connection
1 EA 2,531.30 2,531.30
1037 Connect to Existing
Watermain
1 EA 2,896.74 2,896.74
1038 6" Gate Valve 1 EA 2,655.22 2,655.22
1039 12" Butterfly Valve and Box 1 EA 4,490.41 4,490.41
1040 Sanitary Structure 60 VLF 476.05 28,563.00
1080 Cap for Sanitary line future
connection
1 EA 1,265.65 1,265.65
1090 Cathodic Prot Magn Anods 17
lb package&Splices
62 EA 692.42 42,930.04
1092 Cathodic Prot Flush to Grade
Testing Station
12 EA 829.36 9,952.32
1094 Insulated Flanges 2 EA 2,655.21 5,310.42
Total Cost :$332,818
Bid Risk 10%$32,155
Construction Direct Cost (Base Year 2015):$353,710
Local Work 14a - 17th Ave Watermain and Sewer
Installation of a water main and sanitary sewer generally located under 17th Avenue starting from Excelsior Boulevard then southward
to the second intersection, and installation of a water main from the intersection heading east to the limits of the Metro Transit Park and
Ride site to an existing main in the City of Hopkins.
LRCI #14 17th Ave Waterman and Sewer
Base Project
Construction - Direct Cost
1/25/2017
Percentage Increase Cost
2%$7,074
2%$7,074
1%$3,537
Total Cost:$17,685
Cost Comments
$371,395 Base Year (2015)
$393,679 YOE (2017)
Percentage Increase Cost
3%$11,810
$405,490Total Additional Cost for Local Work 14a - 17th Ave Watermain and Sewer:
Construction Cost with Escalation to YOE (3% per year)
Administration
Base Year Construction Cost
Administration
Description
Total Construction Costs
Description
Description
Inspection
Survey/Stake
Material Testing
Construction - Indirect Costs
1/3/2017
Originator: City of Hopkins
3-Jan-17
Description:
Bid item Description Quantity Units Unit Price Bid Total
100 Signal -1 LS -156,402.11 -156,402.11
Total Cost :($156,402)
Bid item Description Quantity Units Unit Price Bid Total
6100 Signal 1 LS 357,219.47 357,219.47
Total Cost :$357,219
Bid Risk 10%$20,082
Construction Direct Cost (Base Year 2015):$220,899
Percentage Increase Cost
2%$4,418
2%$4,418
1%$2,209
Total Cost:$11,045
Cost Comments
$231,944 Base Year (2015)
$245,861 YOE (2017)
Percentage Increase Cost
3%$7,376
$253,237Total Additional Cost for Local Work 14b - 8th & Excelsior Traffic Signals:
Description
Inspection
Survey/Stake
Material Testing
Total Construction Costs
Description
Base Year Construction Cost
Construction Cost with Escalation to YOE (3% per year)
Administration
Description
Administration
Construction - Indirect Costs
Local Work 14b - 8th & Excelsior Traffic Signals
Includes installing three traffic signal poles and APS on the northeast, northwest, and southwest corners of the Excelsior Boulevard and
8th Avenue intersection.
Construction - Direct Cost
Base Project
Upgraded 8th & Excelsior Traffic Signals
Originator: City of Hopkins
12-Jan-17
Description:
Bid item Description Quantity Units Unit Price Bid Total
1020 Walk Standard -12322 SF $4.41 -$54,340.02
1040 Sidewalk Special (Colored
Standard) type A
-4143 SF $1.62 -$6,711.66
1041 Walk Standard for type A -4143 SF $4.42 -$18,312.06
1060 Sidewalk Special Type B
Integrally Colored
-2016 SF $1.86 -$3,749.76
1061 Walk Standard for Type B
Integrally
-2016 SF $4.41 -$8,890.56
1370 Install Light Poles -2 EA $3,552.80 -$7,105.60
1375 Install Fixtures -2 EA $1,514.69 -$3,029.38
Total Cost :($102,139)
Bid item Description Quantity Units Unit Price Bid Total
120 Walk Standard 13774 SF $4.42 $60,881.08
130 Class 5 Agg- 4" Compacted-
Btwn Integ Color Conc
670 SF $1.20 $804.00
139 Walk Standard for type A 4908 SF $4.42 $21,693.36
140 Sidewalk Special (Colored
Standard) Type A
4908 SF $1.62 $7,950.96
154 Formwork Btwn Special Conc
type B, C
394 SF $6.33 $2,494.02
159 Walk Standard for type B 1153 SF $4.42 $5,096.26
160 Sidewalk Special Type B
Integrally Colored
1153 SF $1.86 $2,144.58
161 Walk Standard for type C 463 SF $4.42 $2,046.46
162 Sidewalk Special Type C
Integrally Colored
463 SF $2.28 $1,055.64
220 Subsurface Drip Irrigation 4668 SF $6.25 $29,175.00
305 Tree Uplight Conduit - Wire
Circuit
402 LF $18.47 $7,424.94
306 Tree Uplight Concrete Base 10 EA $1,500.00 $15,000.00
308 Conduit Only - Ped Light Pole 212 LF $9.63 $2,041.56
309 Conduit Only - GFI Receptacle
Circuit
457 LF $9.63 $4,400.91
310 Conduit Only - Lit Bollard
Circuit
343 LF $9.63 $3,303.09
311 Conduit Only - Art Piece
Circuit
162 LF $9.63 $1,560.06
330 Pole Bases 2' Diam 5' depth 3 EA $1,602.77 $4,808.31
Local Work 14c - Downtown Hopkins Station Plaza Enhancements
Includes expanding the existing irrigation system at the Downtown Hopkins Station Plaza with a drip type system, providing additional foundations
and conduit for additional lighting and power receptacles to be installed by the City, and upgraded pavement along the ‘spur’ pathway.
Construction - Direct Cost
Base Project
Hopkins Station Plaza Enhancement
334 GFI Bases 2' Diam 5' depth 3 EA $1,602.77 $4,808.31
336 Lit Bollard Bases 18'' Diam 5'
depth
6 EA $1,234.23 $7,405.38
355 Handhole 2 EA $1,373.75 $2,747.50
Total Cost :$186,841
Bid Risk 10% $8,470
Construction Direct Cost (Base Year 2015): $93,173
Percentage Increase Cost
2% $1,863
2% $1,863
1% $932
Total Cost:$4,659
Cost Comments
$97,831 Base Year (2015)
$109,571 YOE (2019)
Percentage Increase Cost
3% $3,287
$112,858
Construction - Indirect Costs
Total Additional Cost for Local Work 14c - Downtown Hopkins Station Plaza Enhancements:
Description
Inspection
Survey/Stake
Material Testing
Total Construction Costs
Description
Base Year Construction Cost
Construction Cost with Escalation to YOE (3% per year)
Administration
Description
Administration
EXHIBIT B
Procedures for Inspection & Acceptance of Local Work
The Council shall be responsible for constructing all Local Work 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 Local Work for compliance with Contract
Documents prior to the City’s acceptance of the Local Work 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 Local Work.
b. The Council shall notify the City of the date on which the inspection-point has been
achieved and the Local Work 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 Local Work 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 Local Work is defective, and the actions which, in the
opinion of the City, must be taken to make the Local Work 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 Local Work, the Council
shall require its contractor to make corrections. The Council shall notify the City when the
Local Work 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 Local
Work. 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 Local Work within the time specified in this Exhibit
shall be deemed to waive the City’s right to inspect the Local Work. The City’s failure to
inspect the Local Work, 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 Local Work 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 Local Work in accordance with
the Inspection Process outlined above.
b. After the joint inspection, the City shall provide the Council written
acknowledgment that the Local Work has been completed and are suitable for its intended
use and the City’s maintenance responsibilities related to the Local Work will begin.