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HomeMy WebLinkAbout11-494 NOVEMBER 8, 2011 11-494 RESOLUTION (CARRIED___7-0_____LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF OSHKOSH AND TOWN OF NEKIMI FOR COST SHARING ASSOCIATED WITH THE REPAVING OF POBEREZNY ROAD IN 2012 INITIATED BY: CITY ADMINISTRATION BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Agreement with the Town of Nekimi for Cost Sharing associated with the Repaving of Poberezny Road in 2012, is hereby approved and the proper City officials are hereby authorized to execute and deliver the agreement in substantially the same form as attached hereto, except that a fixed schedule for 15 years useful life of the pavement shall be included together with a mechanism to allow for exceptions to that schedule based upon the actual condition of the pavement at the time of annexations, any changes in the execution copy being deemed approved by their respective signatures, and said City officials are authorized and directed to take those steps necessary to implement the terms and conditions of the Agreement. Money for this purpose is hereby appropriated from: Acct. No. 315-0410-7480-00000 Street Improvement Fund Expenditures CITY HALL 215 Church Avenue P.O.Box 1130 Oshkosh54903--1130 City of Oshkosh MEMORANDUM OfHKOJH Date: November 3, 2011 To: Mayor & City Council From: Mark A. Rohloff, City Manager 4,-- Subject: INTERGOVERNMENTAL AGREEMENT WITH TOWN OF NEKIMI FOR REPAVING OF POBEREZNY ROAD BACKGROUND Over the past couple of years, EAA has approached the city and the Town of Nekimi regarding the repaving of Poberezny Road. As Poberezny Road is the main entrance into the EAA grounds, particularly AirVenture, EAA has always been concerned about the appearance of Poberezny Road to visitors. While we share EAA's concerns over the condition of Poberezny Road, over 90% of the road is actually in the Town of Nekimi, over which the city has no jurisdiction. At the same time, the DOT has recognized that Poberezny Road does provide secondary benefit to the USH 41 corridor, as Poberezny Road is sometimes used as a bypass when accidents occur on USH 41. As a result, the DOT has indicated its willingness to fund half of the estimated $1.2 million needed to repave this road. After numerous discussions with the Town of Nekimi, they were willing to fund up to $300,000 of the remaining $600,000 local share. EAA was willing to fund another $100,000, and city staff estimated that the city's share would be approximately $50,000, leaving a gap of approximately $150,000 to fund this project. ANALYSIS The Town of Nekimi is concerned that should they pave the road in areas subject to annexation, the town will have paid for road improvements that would actually be in the City of Oshkosh. I certainly understand this concern, and therefore, I suggested that the city would agree to reimburse the town for the remaining value of any road that was annexed into the city at some point in the future. Furthermore, to close the $150,000 funding gap, I suggested that each of the entities (i.e., city, town and EAA) contribute an additional $50,000 up front for this project. The additional $50,000 paid by the city would be a "down payment" towards future annexations. The respective attorneys for both entities have drafted an intergovernmental agreement for the Council's approval review. While some final details still need to be worked out, the concept is similar to what is described above. This prospective agreement puts both governmental agencies in the best position to get the road done and have a fair funding formula. The Wisconsin Department of Transportation has been waiting for some indication from the Town of Nekimi that they are willing to enter into an agreement with the DOT to get Poberezny Road into their project plans for 2012 construction. As a result, staff is asking the Council to approve this agreement in principle as presented. Staff asks that the Council give it latitude to work out any final arrangements that may be necessary to finalize this deal between the city, town and the Wisconsin DOT. tit Mayor & City Council November 3, 2011 Page 2 FISCAL IMPACT Staff has budgeted $110,000 in the 2012 Capital Improvements Program (CIP) to fund the city's upfront share of the project. As properties along Poberezny Road are annexed into the city in the future, the city will pay a proportional share of the remaining value of these improvements. The additional $45,000 to $50,000 that the city is funding up front will be used as a credit. For every 950 feet that is annexed into the city, the city will have to contribute approximately $55,000 in current dollars. This amount will decrease as the road depreciates over time. Given the current state of the economy, and no development plans on the horizon along Poberezny Road, I do not expect the city to incur any financial impact for at least five years. MAR/j do INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF NEKIMI AND THE CITY OF OSHKOSH REGARDING POBERENZY ROAD Intergovernmental Agreement ("Agreement") between the Town of Nekimi, Wisconsin, a Wisconsin town ("Town") and the City of Oshkosh, Wisconsin, a Wisconsin municipality ("City").. RECITALS A. The Town and the City each have territory containing real estate with frontage along Poberenzy Road, which is the east frontage road to U.S. 41 that runs between STH 26 and STH 44 in Sections 3 and 10,Tl7N - R16E, Town of Nekimi, Winnebago County, Wisconsin ("Road"). B. The State of Wisconsin Department of Transportation ("WDOT") is in the process of reconstructing U.S, 41 from four to six lanes from STH 26 to Breezewood Lane. The WDOT has identified the Road as a possible relief route when major incidents occur on U,S. 41.. The parties agree that the condition of the Road has deteriorated and is in need of repair. The WDOT is proposing resurfacing approximately two miles of the Road from Waukau Avenue to STH 26. A copy of the agreement describing the proposed highway improvement project is attached and incorporated by reference ("Project"). The WDOT is willing to perform the Project, subject to the Town participating at a local level not to exceed $600,000.. C. The Town is willing to participate in the Project in an amount not to exceed $350,000. The City has expressed its willingness to participate at a local level not to exceed $100,000. The Experimental Aircraft Association("EAA"), which is the owner of real estate contiguous to a substantial portion of the Road along the Project is also willing to participate in an amount not to exceed $150,000. D. The Town and the City are entering into this Agreement pursuant to Wis. Stat., § 66.0301 . This Agreement is intended to be binding upon future Town Boards and City Councils in accordance with its terms. In consideration of the above recitals, and other good and valuable consideration mutually acknowledged by the parties, it is agreed as follows: 1. WDOT Agreement. The Town shall execute the WDOT Highway Improvement Project agreement, attached, upon the occurrence of the following events, which constitute conditions precedent(a) the execution of this Agreement by the City, (b) receipt of a legally- binding written instrument from the EAA committing the EAA to a Project participation payment of at least $150,000, and (c) the issuance of a promissory note by the Town pursuant to Wis. Stat., § 67.12(12), or such similar statute authorizing the Town to issue a debt instrument in an amount not less than the Town's share of the Project of$350,000, The Town does hereby obligate itself to the issuance of one or more debt instruments in the amount of$350,000, unless prohibited by an elector referendum or an order issued by a court of competent jurisdiction. 2. Participation Levels. The participation levels for the Project are as follows: Town ofNekimi $350,000; City of Oshkosh$100,000; and EAA $150,000. 3, Additional City Participation, The City originally offered to participate in the Project in the amount of$55,000. This $55,000 amount was calculated by reference to the property that is currently occupied by Fox Valley Technical College, which is currently located within the City. The City is willing to contribute an additional $45,000 at this time in order that the total local participation by the City, the Town and EAA may satisfy the $600,000 required local contribution required by the WDOT.. The City acknowledges and agrees that annexations that may occur subsequent to the effective date of this Agreement may require additional financial contributions from the City in excess of the City's initial $100,000 contribution. These additional City obligations, if any, shall be payable to the Town and shall be determined through the application of a formula using the frontage of the Road currently in the City and occupied by Fox Valley Technical College as compared to the total length of the Road included in the Project. The parties stipulate that the current City frontage along the Road represents $55,000 of the total $600,000 local share. The City will be given credit for the $45,000 additional contribution it is making pursuant to this Agreement as annexations occur.. The City will be required to make additional payments to the Town after this $45,000 amount has been applied. The City's future obligations to the Town as a result of subsequent annexations will be reduced based on the remaining useful life of the Road at the time when annexations occur. If the parties fail to agree on the extent of the remaining useful life of the Road at the time when annexations occur, the dispute shall be referred to the WDOT whose determination shall be final and binding on the parties. 4. Special Assessments. The Town and the City reserve all rights to specially assess the benefitting properties pursuant to Wis.. Stat., § 66.0703,together with such other statutory authority through which the Town and the City may levy and collect special assessments upon the benefitted property. All rights are reserved. 5. Other Agreements. Unless specifically modified by this Agreement,the Town and the City acknowledge that nothing herein is intended to amend, modify or supersede other intergovernmental agreements previously executed by the parties. 6. Binding Effect. This Agreement shall bind and accrue to the benefit of the parties and their successors. This Agreement is for the exclusive benefit of the parties and shall not be deemed to give any legal or equitable right, remedy or claim to any other person or entity. 7. Authority. Each party represents that it has the authority to enter into this Agreement and that all necessary procedures have been followed to authorize this Agreement. Further, each person signing this Agreement represents and warrants that he or she has been authorized to do so by their respective principals. 8 Dispute Resolution.. As stated above, disputes regarding the remaining useful life of the Road shall be referred to the WDOT. All other disputes relating to the interpretation or enforcement of this Agreement shall be resolved through binding arbitration administered by the State of Wisconsin - Department of Administration, Division of Intergovernmental Relations- Municipal Boundary Review office, unless such other dispute resolution administration agency is mutually agreed upon by the parties. Page 2 of 3 9, Miscellaneous. This Agreement shall be liberally construed to accomplish its intended purposes. The parties acknowledge that the language contained in this Agreement is the product of various individuals representing various interests. Therefore, ambiguities shall not be construed against the drafter of this document. This Agreement may be executed in one or more counterparts, each of which shall constitute an original. Facsimile signatures shall be deemed the same as original signatures. This Agreement shall take effect upon the last date of execution, below.. TOWN OF NEKIMI By: Town Chairperson Date: Attest: Town Clerk CITY OF OSHKOSH By: City Manager Date: By: City Clerk Page 3 of 3 DATE: July 20 2011 STATE / MUNICIPAL ..REEMENT l.D.: 1120-10-85 FORA HIGHWAY: US 41 LENGTH: 0 HIGHWAY IMPROVEMENT PROJECT LIMITS: STH 26- Breezeood Lane COUNTY: Winnebago FILE: 06-14 The signatory Town of Nekimi hereinafter called the Municipality, through its undersigned duly authorized officers or officials, hereby requests the State of Wisconsin Department of Transportation, hereinafter called the State, to initiate and effect the highway or street improvement hereinafter described The authority for the Municipality to enter into this agreement with the State is provided by Section 86 25(1 ).. (2), and (3) of the Statutes. NEEDS AND ESTIMATE SUMMARY: Existing Facility (describe and give reason for request): US 41 will be reconstructed from four to six lanes from STH 26 - Breezewood Lane US 41 has reached its capacity and upgrading capacity will meet the future needs of the travelling public alone with improving safety Proposed Improvement (nature of work): Poberenzy Road is the east frontage to US 41 that runs between STH 26 and STH 44 Poberenzy Road can be a US 4 I relief route when major incidents on the freeway The condition of Poberenzy Road has deteriorated and need of repair Under this project,approximately 2 miles of Poberenzy Road from Waukau Avenue to STH 26 the existing asphalt surface will be pulverized and laid back down as base 4" of new asphalt will be placed as a new riding surface In the southern portion of Poberenzy Road, a portion of road will be excavated and 6"of breaker run material will be placed with 10" of base course to improve the road core Beam guard ends will be upgraded to current standards and the box culvert C-70-33 will be widened to the west to accommodate the new roadway surface Describe non-participating work included in the project contract: n/a Describe other work necessary to finish the project completely which will be undertaken independently by the Municipality: n/a PHASE ESTIMATED COST Total Federal /State Municipal Estimated Cost Funds % Funds Design 20,000 20;000 100% 0 0% Construction (Participating): Normal Participating Priority 1 Funding 1,200,000 600,000 50 600,0009` 50% Priority 2 Funding_ If> 1,200,000** 0 100% 0 0% TOTAL COST 1,220,000 620,000 600,000 DISTRIBUTION: The Town of Nekimi participation level is capped at 5600,000 maximum, ** If the actual bid exceeds $1,200,000 WisDOT will fund the overage. This request is subject to the terms and conditions that follow and is made by the undersigned under proper authority to make such a request for the designated Municipality and upon acceptance by the State shall constitute agreement between the Municipality and the State Signed for and in behalf of Municipality Name Title Date • TERMS AND CONDITIONS: I The initiation and accomplishment of the improvement will be subject to the applicable Federal and State regulations 2 The Municipality will pay to the State all costs incurred by the State in connection with the improvement which exceed Federal/State financing commitments or are ineligible for Federal/State financing. 3 Funding of each project phase (preliminary engineering, real estate. construction, and other) is subject to • inclusion in an approved program. Federal aid and/or State transportation fund financing will be limited to participation in the costs of the following items as specified in the estimate summary: a) The grading. base, pavement, and curb and gutter. b) Catch basins and inlets for surface water drainage of the improvement with connections to the storm sewer main. c) Construction engineering incidental to inspection and supervision of actual construction work. 4. Work necessary to complete the improvement to be financed entirely by the Municipality or other utility or facility owner includes the following items: None 5 As the work progresses, the Municipality will be billed for work completed which is not chargeable to Federal / State funds Upon completion of the project, a final audit will be made to determine the final division of costs. 6 If the Municipality should withdraw the project, it will reimburse the State for any costs incurred by the State in behalf of the project. 7 The work will be administered by the State and may include items not eligible for Federal / State participation S The Municipality will at its own cost and expense: a) Maintain all portions Poberenzy Road after construction is completed Future pavement upgrades will be the responsibility of the Town. 9 Basis for Local Participation: WisDOT will pay for 100% of the design cost- WisDOT and Town of Nekimi will participate 50% each for the construction costs of pulverizing and relaying Poberenzy Road and placing a new asphalt layer riding surface The Town of Nekimi 50°, portion will be capped at a maximum participation of $600,000 Any amount over$1,200,000 shall be funded by WisDOT..