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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..