HomeMy WebLinkAbout6.g. Resolution Approving the Advance of Funds to MVTA to Begin Construction of The Rosemount Depot Park and Ride ROSEI\4OUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Regular Meeting: December 6, 2011
AGENDA ITEM: Resolution Approving the Advance of
Funds to MVTA to Begin Construction of AC DA SECTION:
the Rosemount Depot Park and Ride c �.Vi.
PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. b.s.
ATTACHMENTS: Resolution APPROVED BY:
0DJ
RECOMMENDED ACTION: Approve the attached resolution for the advance of funds to
MVTA to begin construction of the Rosemount Depot Park and Ride
BACKGROUND
In 2009, the City and MVTA (Minnesota Valley Transit Authority) worked together on a federal grant
application to help fund a park and ride facility in Downtown Rosemount on City -owned land just south
of City Hall. The grant was approved for MVTA for program year 2013. The City and MVTA have been
working to try to move up the project schedule so that construction can occur in 2012. There is a
reasonable chance that federal funding could be made available a year early, in 2012, if one or more other
projects fall behind schedule for any reason. However, this may not be known until March, 2012. In
order to keep planning and design for the project moving, MVTA has inquired if the City would agree to
advance approximately $750,000 (the federal grant share of the project) for about one year in the event
that no federal funding could be secured before 2013. The attached resolution would indicate the City's
approval of this request. MVTA says that with state reductions in transit funding, their fund balance
would not be able to provide advance funds for the project. The Met Council typically picks up the local
matching share for the project and they have confirmed to MVTA staff that they could provide their
match a year early in 2012 if needed.
DISCUSSION
If advance funding from the City is needed, our intention would be to create a construction project
account within our capital improvement budgets for this project. While this account would have, a
$750,000 shortfall for up to a year; it would float on the larger capital improvement fund balance of the
City which exceeds $4 million. The City's capital funds are to fund future capital needs for equipment,
streets, and buildings and the majority of our funds will not be needed before 2013. Therefore, our capital
budgets as a whole would not have a deficit at the end of 2012, but rather a temporary reduced fund
balance. The net loss to the City may be about one year of interest on $750,000, which at today's
investment rates is not significant, and is offset by the probability that the project construction cost would
increase by more than the lost investment income if construction must wait until 2013.
RECOMMENDATION
It is recommended that the City Council approve the attached resolution which is subject to a written
financial agreement with MVTA for the reimbursement of the advanced funds. The agreement will be
brought to the Council for approval prior to release of advance funds.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. 2011 - 99
A RESOLUTION APPROVING THE ADVANCE OF FUNDS TO MVTA TO BEGIN
CONSTRUCTION OF THE ROSEMOUNT DEPOT PARK AND RIDE
WHEREAS the Minnesota Valley Transit Authority (MVTA) was awarded funding from
Congestion Management Air Quality ( CMAQ) for the construction of the Rosemount Depot
Park and Ride facility, purchase of fleet and service improvements for expanded services for
the City of Rosemount; and
WHEREAS the CMAQ funding is approved for the program year of 2013; and
WHEREAS the City wishes to expedite the start of construction to the year 2012;
WHEREAS the City desires to advance funds to MVTA in order for construction to begin in
2012 that will be reimbursed when said CMAQ funding becomes available.
NOW THEREFORE BE IT RESOLVED that, after appropriate examination and due
consideration, the governing body of the City approves the advancement of funds to the
MVTA for construction of the Rosemount Depot Park and Ride facility within the City of
Rosemount to begin in the year 2012, pending an agreement with the MVTA.
ADOPTED this 6 day of December, 2011, by the City Council of the City of Rosemount.
William H. Droste, Mayor
M aLu
Amy Domeier, City Clerk
D