IV.11. Subordinate Funding Agreement 07 – Southwest LRT; Beekman (CR2017-103)July 26, 2017 Council Report 2017-103
SUBORDINATE FUNDING AGREEMENT 07– SOUTHWEST LRT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Subordinate Funding
Agreement (SFA 07) 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 constructed. 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 can be included as an addendum to the
construction contract, based on demonstrated local financial support. The additional work is
committed to through a Subordinate Funding Agreement.
Subordinate Funding Agreement 07 involves design work for a pipe that would be put in place under
the LRT tracks. The purpose of the pipe would be to allow for the conveyance of storm water under
the LRT tracks in the future to increase development opportunities and realize regional storm water
treatment. The casing could potentially be used for other elements that need to be brought south of
the line. Putting the pipe in place today will allow for flexibility in the future when disrupting the LRT
line is not possible.
The cost to design this improvement is $10,300. The cost estimate for the construction of the pipe is
currently at $80,000 – $100,000. That cost estimate will be refined through the design process. A
separate SFA for construction will be considered in a separate Council action. The City of
Minnetonka will share in the cost based on the percentage of property in Minnetonka that would
benefit from the future storm water treatment. Minnetonka is also willing to participate in the design
cost on a 50/50 basis.
Primary Issues to Consider
The items included in SFA 07 were discussed with the City Council at work session and are viewed
as prudent in order to meet the overall goals of the City.
Supporting Information
• Subordinate Funding Agreement (SFA 07)
___________________________
Kersten Elverum
Director of Planning & Development
Financial Impact: $10,300 Budgeted: Y/N __N___ Source: Utility and PIR Funds
Documents (CIP, ERP, etc.): _______________________________________
Page 1 of 4
Reference Numbers:
SWLRT Project: 61001
Metropolitan Council: 14I059G
City of Hopkins: ___________
PROJECT: SOUTHWEST LIGHT RAIL TRANSIT PROJECT
MASTER AGREEME NT: Master Funding Agreement – City of Hopkins
PARTIES TO AGREEMENT: • Metropolitan Council (“Council”)
• City of Hopkins (“City”)
SUBORDINATE FUNDING AGREEMENT
City of Hopkins – SFA7 (Shady Oak Stormwater Pipe Design)
This Subordinate Funding Agreement (“SFA”) Number 7 is entered into by and between the
above-named Parties.
WHEREAS:
1. The Parties entered into a Southwest Li ght Rail Transit Project (“Project”) Master Funding
Agreement (“MFA”), effective January 29, 2015.
2. The Parties provided in the MFA that certain aspects of funding for the Project or components
related to but not part of the Project would be determined in subsequent SFAs.
3. The Parties desire to enter into this SFA to transfer City funds to reimburse the cost for Council
activities for professional services and the Council’s administrative fee to produce design
plans, and develop engineer’s construction cost estimates for a Hopkins stormwater pipe which
would allow for stormwater conveyance under the proposed light rail transit (“LRT”) tracks
without disturbing LRT operations in the future.
4. The engineer’s construction cost estimate will be used as a basis for negotiating a change order
with the Council’s civil construction contractor. The cost to construct Shady Oak stormwater
pipe through a change order will ultimately be determined by the Council’s civil construction
contractor.
Page 2 of 4
5. Subsequent SFA(s) must be entered into with the City to address construction of the Shady
Oak stormwater pipe.
NOW, THEREFORE, in reliance on the statements in these recitals, the Parties hereb y agree as
follows:
1. Maximum Amount of Authorized Funding. The cost for the Council’s professional services
and administration activities authorized by this SFA shall not exceed $10,300.00 unless
authorized in a subsequent agreement or an amendment to this SFA.
2. Project Budget. The budget for the Council’s activities described in this SFA is provided as
Exhibit A. City funds provided for this SFA may only be used for reimbursing the Council’s
costs for activities directly incurred within the described Specific Description of Funding
Authorization and as detailed in the MFA.
3. Specific Description of Funding Authorization. The activities to be performed by the
Council and reimbursed by the City include the development of design plans and engineer’s
construction cost estimate for Shady Oak stormwater pipe.
4. Release of Design Plans. If the City do es not enter into an SFA with the Council to construct
the Shady Oak stormwater pipe through a change order, but requests the Council to release the
Shady Oak stormwater pipe design plans to the City for the purpose of current or future use of
the plans, the Council shall release the design plans provided an amendment to this SFA or a
subsequent agreement is executed by the parties to address indemnification, liability, claims,
access, copyright, and related issues as a result of the release of the Shady Oak stormwater
pipe design plans.
5. Property Acquisition. It is not anticipated that any additional property rights must be acquired
to construct Shady Oak stormwater pipe. However, if additional property is needed, acquisition
is the responsibility of the City.
6. Project Activity Periods. The project activity period for the purposes of this SFA shall be
effective upon execution and shall terminate on the date all costs under this SFA have been
reimbursed, unless terminated earlier consistent with the terms of the MFA.
7. No Guarantee of Construction. This SFA describes terms requiring the City to reimburse
the Council’s cost for design activities associated with the Shady Oak stormwater pipe. It does
not guarantee that the Shady Oak stormwater pipe will be constructed. The City and the
Council acknowledge that nothing in this SFA shall require the Council to take any action or
make any decision that will prejudice or compromise any review or decision-making processes
required under state and federal environmental review laws, regulations or rules. The Parties
intend this SFA to be interpreted consistent with statutory and other legal authorities, including
but not limited to the Minnesota Environmental Policy Act and the National Environmental
Policy Act. The Parties agree that this SFA does not limit the alternatives or mitigative
measures that the Council may undertake in the development and construction of the Project.
Page 3 of 4
The Council retains the right to make decisions and necessary approvals associated with
Project requirements.
8. Incorporation. The terms, conditions, and definitions of the MFA are expressly incorporated
into this SFA.
CITY OF HOPKINS METROPOLITAN COUNCIL
By: By:
Its:
Its:
Date: Date:
By:
Its:
Date:
Page 4 of 4
Exhibit A
SFA Budget – Shady Oak Stormwater Pipe Design
Scope Cost
Design Cost
The scope of this SFA includes designing and
preparing Bid Documents for: Shady Oak BMP
box culvert (aka Stormwater Pipe)
100% design of a 55 LF 4'x7' concrete box
culvert with a plug wall on each end under the
LRT guideway at the 5th Street crossing.
Design of relocated 10" PVC Watermain
conflict
Updated Civil, track, utility plan sheets
Design calculation sheets
QA/QC documentation
Excludes design of future vaults
$10,000
3% Administrative Fee $300
Maximum Amount of Authorized Funding $10,300