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HomeMy WebLinkAbout4.h. Approve State Aid Agency Agreement { # �� 1TEM *******#�*****�**�t******�******,t,�**MEMO*�****�*�*****+k*********�*�*������*�t DATE: APRIL 11� 1990 TO: MAYOR & COUNCZL MEMBERS C/O ADMINISTRATOR JILR FROM: CITY ENC3INEER/PUBLIC WORRB DIRECTOR HEFT RE: ITEM FOR THE APRIL 17� 1990 CQUNCIL AGENDA CONSENT AGENDA Ap�rove State Aid Aqen� Aqreement This item consist of approving the attached State Aid Agency Agreement. TY�is memo provides some background on this item and alsa recommended action for Council to consider. The Office of State Aid is requestinq that we adopt this State Aid Agency Agreement. The agreement basically refers to dealing with Federal Aid Urban (FA11) Funding for such projects, In reality, the City af Rosemount will never see a FAU project because all the cities eligible for FAU funds (that includes all cities eligible for State Aid Funds) have their monies collected and distributed by the Metropolitan Council. Because af this fact I have not presented this annual renewal to Council far the last two years. However, the Office of State Aid has advised me that they referenced four sections of this agreement on the one page agreement that will reimburse us for proportion of the State Aid computer cost. In essence State Aid has told me that because they reference the State Aid Agency Agreement in the Computer Cost Sharing Agreement they have to have a signed copy of the State Aid Agency Agreement on file to make the cost sharing agreement legal. As a point of interest, we need to submit this State Aid Agency Agreement before the end of May, which was the deadline for state aid reimbursement for the computer systems. Recommended action for Council to consider is to approve the State Aid Agency Agreement and authorize the Mayor & City Glerk to sign the agreement. MINNESOTA DEPARTMENT QF TRANSPORTATION OFFICE OF STIATE AID TRANSPORTATIDN BOILDINC3 ST. PAUL, MINI+IESO�TA 55155 March 30, 1990 Phone: (612) 296-9874 Richard Hefti Rasemaunt City Engineer P. O. Box 455 1367 - 145th Street Rosemount, MN 55p68 Subject: Approval and Execution of State Aid Aqency Agreement Dear Mr. Hefti: As part of the C,ity Engineer's Automation computer purchase informatian package sent to you by letter datsd September 20, 1989, a single sheet agreement for reimbursement of 60 percent of the cost of the S�andard Paakage of computer items was included. The reim}aursement agreement, makes reference to the Mn/DOT, Offi�e of State Aid Agency Agreement, which has not been approved by your city council and executed by city officials. Enclosed with this letter are two copies of tt�e Agency Agreement which must be app�oved and executed, and retu�ned to this offiee far further approval and execution before your request far reimbursement for the computer purchase can be processed. If you have any questions about this process, please feel free �o contact John Wheeler in the Office of State Aid at (612) 296-7679. Sincerely, d��t�✓��i,� Gordon M. Fay 5�ate Aid Engineer Enclosure cc: File: John Wheeler ._- � ',� U��� .�_:,-?`*!��vK� � i'- � i � Y . � . Revised 12/19�8 Office of State Aid MINNES�TA DEPARTMENT OF TRANSPORTAtION AGENCY AGREEMENT This Agreement made and entered into by and between the City of herein after referred to as the "City" and the Commissioner of Transportation of the State of Minnesota hereinafter referred to as the "Conmissioner", WITNESSETH: WHEREAS, pursuant to M.S. 161.36 the City desires the Commissioner to act as its agent in dccepting federal aid on the City's behalf, for road and bridge constructian dnd in contracting for the construction, impravement or maintenance of raads or brid�es financed either in whole or part with federal money5; and WHEREAS, M.S. 161.36, Subdivision 2, requires that the terms and conditions of the agency be set forth in an agreement; NOW, TNEN, IT IS AGREED: -I- That pursuant to M.S. 161.36, the City does hereby appoint the Cortmissioner its agent with respect to all federally funded projects, to accept and receive a11 federal funds made available for said projects and to let contracts pursuant to law for the construction and improvement of local roads and bridges. -1- � f I Each contract wili be in accordance with plans and special provisions for said projects on file in the Oepartment of Transportation, State Transportation Building, St. Paul , Minnesota 55155, and the latest edition of "Standard Specifications for Construction" and all amendments thereof, which said plans, special provisions and specifications are made a part of this agreement by reference as though fully set forth herein. In the letting of said contract, it is here6y agreed that the following procedures shall be followed, to-wit: A. The Comnissioner shall cause the advertisements calling for bids on said work to be published in the "Construction Bulletin". He shall also cause advertisements for bids to be published in the officially designated newspaper of the City. Said advertisement or call for bids shall specify that sealed proposals or bids will be received by the City Purchasing Agent of on behaif of the Comnissioner as agent of said C.ity. Proposals, plans and specifications shall be available for� the inspection of prospective bidders at the office of the Cepartment of Transportatian, St. Paul , Minnesota 55155, and at the office of said City Purchasing Agent and the advertisement shall so state. The bids received in response to said advertisement for bids shall be opened for and on behalf of the Cortmissioner by a Dfstrict Engineer of the Department pf Transportation or such other engineer of the Oepartment of Transportation as may be from time fio time selected by the Commissioner. After said bids sha11 have been opened, the City council shalt first consider the same and thereupon -2- transmit to the Comnissioner all bids received together with its recommendation that the lawest bid submitted by a responsible bidder be accepted or that all bids be rejected. Upon receipt of all said bids, the Cornmissioner shall duly cause all of said bids to be tabulated and shall thereupon determine who is the lowest responsible bidder and shali award the contract to the lowest responsible bidder or shall re�ect all bids. B. The Commissioner shall supervise and have c�arge of the construction of said projects after the same has been let. The City agrees to furnish its City Engineer or other registered engineer and assign him to the active supervision and direction of the work to be performed under any contract let for the afores�id pro�ects. Said engineer so assigned shall act under the supervision and direction of the Comnissioner. The City further agrees to furnish such other personnel, services, supplies and equipment as shall be necessary in order to properly supervise and carry on said work. C. The Commissioner may make changes in the plans or the character of the work as shall be recomnended by the engineer in charge of the work. If he concurs in such recommendations, the Comnissioner may enter into, for and on behalf of the City, supplemental agreements with the contractor for t�e performance of any extra work or work occasioned by �ny necessary, advantageous, or desirable change in plans or construction. It is understood by the City that the Commissioner cannot personally investigate and pass �udgement an the various items of extra work and plan changes necessary and desirabte during the construction of -3- the projects but that he must delegate such duties to engineers under his supervision and control that are employed by the Minnesota Qepartment of Transportation, The City does hereby authorize these engineers, so delegated by the Commissioner, to enter into, for and on behalf of the City, the supplemental agreements specified in the preceding paragraph hereof. p. The City hereby authorizes its City Engineer, for and on behalf of the City, from time to time, during the progress of the work on said projects, to request the Comnissioner to furnish for use on said projects specific engineering services to be performed by skilled employees of the Minnesota Department of Transportation. The Comnissioner may but is not obligated to furnish the services so requested. If the Comnissioner in compliance with such request . shall furnisfi for the use of the City on said projects the services of any Minnesota Department of Transportation employee, then and in that event, the City agrees to reimburse the Trunk Highway Fund for the full cost and expense of the furnishing of s�ich services including all costs and expenses of any kind or nature� whatsoever arising out of, connected with, or incidental to the furnishing of such services. E. The Comnissioner shall receive the funds to be paid by the City and the funds to be paid by the United States as federal aid funds for said pro�ects and to pay therefrom when due any and all sums that may become due the contractor to whom the contract is awarded, and upon final completion and acceptance of the work, to pay from said funds the final estimate to said contractor for said work. —4— , � � F. The Commissioner shall perform on behalf of the City all other acts and things necessary to cause said pro�ects to be completed in a satisfactory manner. G. The Commissioner ma� enter into any agreement for and on behalf of the City with the United States or any officer or agent thereof that may be required or necessary for the purpase of procuring and actually causing to be paid the federal aid funds available for said projects and to that end to bind and comnit the City in such a9reement to the performance of any and all things required by any law of the United States or of any rule and regulation issued by federal authority pertaining thereto necessary far the purpose of procuring and having paid the federal aid available for said projects. H. It is the policy of the United States Oepartment of Transportation and the Minnesota Department of Transportattan that Disadvantaged Business Enterprises as defined in 49 CFR, Part 23, and the Surface Transportation and Uniform Relocation Assistance Act for 1987, shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with federal funds. Consequently, the requirements of 49 CFR, Part 23, apply to this agreement. In this regard, the Comnissioner and the City sha11 take all necessary and reasonabte steps in accordance with 49 CFR, Part 23, to insure that Uisadvantaged Business Enterprises have the maximum oppvrtunity to compete for and perform on contracts and subcontracts. The Comnissioner and the City shall not discriminate on the basis of race, color, national origin,or sex in the award and performance of federally funded contracts. -5- . � Failure to carry out the above requirements shall constitute a breach of this agre�ment and may result in termination af the agreement or other such remedy that the CQrtmissioner deems appropriate. i . The Cortnnissioner may perfarm on behalf of the City any other and further acts as may be necessary or required under any law of the United States or of any rule or regulation issued by proper federal authority in arder to cause said pro,iects to b$ completed and to obtain and receive the federal aid made availabie therefor. -II- The City agrees that it will from time to time, after the execution of this agreement, mak�e such reports, keep such records and perform such work in such manner and time as the Canmissioner shall from time to time request and direct so as to enable the Commissioner as its agent to collect for it the federal aid sought. Sa1d records and reports shall be retalned by the City in accordance with the Commissioner's record retention schedule for federal aid pro�ects. '�III� It is anticipated tfiat the United States will pay to the Commissioner as the agent of the City, the federal aid funds available to said City toward the construction of said pro�ects. It is further anticipated that the contracts to be let by the Cortrnissioner as the agent of the City, for the construction of said projects sha�l provide that the contractor, as the work progresses, shall , from time to time, be paid partial payments designated 1n said c�ntract as partial estimates and on the completion and -6- acceptance of said work to be paid a final payment designated in said contract as a final estimate for all work performed. The City further agrees that any City funds and/or Municipal State Aid Funds to be applied to any co�tract covered by this agreement sMall be deposited with the Commissioner in accordance with Minnesota Rules Chapter 882Q.1500 Subp. 3. At regular monthly intervals after contractors shall have started work under contracts let by the Comnissioner as agent for the City for the construction of said pro�ects, the engineer assigned to and in charge of said work shall prepare partial � estimates in accordance with the terms of said contracts �let for said projects and the procedures established by the Office of Construction and Contract Administration Minnesota Dep�rtment of Transportation. The said engineer in charge of said work sfiall immediately after prepari�g each partial estimate, transmit the same to the Commissioner in duplicate. Each partial estimate shall be certified by the engineer in charge and by the contractor performing such work. The said engineer assigned to and in charge of said work shall also prepare and submit to the Commissioner the final estimate data, together with the required pro3ect records in accordance with the terms of said contracts let for said pro�ects. Quantities listed on said partial and final estimates shall be documented in accordance with the guidelines set forth in the applicable documentation manual . After the approved final estimate has been submitted to the Commissioner, the City will pay to the -7- Commissioner any additional amount which together with the federal funds received for that project wi1T be sufficient to pay all the contract costs of the project. -IV- When the contractor shall have compTeted the work on said pro3ects, the City agrees to inspect the same and forthwith upon the completion of said inspection advise the Commissianer whether or not the work performed should be, by the Comnission�r as its agent, accepted as being performed i� a satisfactory manner. In the event the City should, after said inspection, recortmend to the Commissioner that he should not accept said work, then the City shall at the time such recomnendation is made specify in particularity the defects in said work and the reasons why the work should not be nccepted. It is further agr�ed that any recormnnendations made by the City are not binding on the Ccmmissioner but that he shall have the right to determine whether or not the work has been acceptably performed and to aecept or re�ect the work performed under any said contract. _�_ It is further agreed that the decision of the Comnissioner on the several matters herein set forth shall be final , binding and conclusive on the parties hereto. -VI- It is anticipated that the entire cost of said pro�ects is to be paid from funds made available by the United States, by way of federal aid, and by the City. If for any reason the United States fails to pay any part of the cost or expense of said pro�eGts, then -S- and in that event the City agrees to pay the same. The City further agrees to pay any and all claims or demands of any kind or nature whatsoever arising out of or incidental to the performance of the work under any contract let for said pro�ects in the event that the United States does not pay the same, and in all events, agrees to save the State of Minnesota and the Cor�nissioner from said claims and fram any claims arising out o� this agreement and to pay any and all expenses and costs c�nnected with said projects or the construction thereof which the United States does not pay. -VII- The City further agrees that: A. All right�of�way acquisit9nn and relocaLion will be condu�t�d i� accordance with 49 CFR Part 25. Procedures imptementing this . regulation are contained in Mn/DOT State Aid Manual Chapter 5- 892.310. (Additional guidance may be obtained by referring to the FHWA's Real Estate Acquisition Guide for Local Public Agencies). B. If the City receives total direct �nd indirect federal assistance of: 1. �100,000 or more per year, the City agrees to obtain a financiat and compliance audit made in accardance with the Single Audit Act of 1984 (P,L. 98-502) and Office of Management and Budget (OMB) Circular A-128. The law and circular provide that the audit ' shall cover the entire operations of .the City government or, at the option of the City gavernment, it may eover departments, agencies or establishments that received, expended, or atherwise administered federal financial assistance during the year. However, -9- if the City government receives 525,000 or more in General Revenue Sharing Funds in a fiscal year, it sha11 have an audit af its entire , operations. 2. Between $25,OQ0 and $lOQ,000 per year, the City agrees to obtain either - a. a financial and compliance audit made in accordance with the S9ngle Audit Act of 1984 and OMB Circular A-128, or b. a financial and compliance audit of all federal funds. The audit must determine whether the subrecipient spent federal assistance funds in accordance with applicable laws and regulations and the audit must be made in �ecordance with any federal laws and regulations governing the federal proqrams the subrecipient partieipates in. ' , Audits shall be made annually unless the state or local - government has, by January 1, 1987 a constitutional or statutory requirement for less frequent audits. For those governments, the cognizant agency shall permit biennial audits, covering both years, if the government so requests. It shall also honor requests for biennial audits by gover�ments that have an administrative policy calling for audits less frequent than annual , but only for fiscal years beginning before January 1, 1987. The audit shall be made by an independent auditor. An independent auditor is a state or local government auditor or a public accountant who meets the independent standards specified in the General Accaunting Office's Standards for Audit of Governmental Organizations, Pregrams, Activities, and Functions._ -1Q- . The audit report shall state that the audit was performed in accordance with the provisions of OM6 Circular A-128 (or A-110 as applicable) . The audit report shall include: 1) The auditor's report on financial statements and on � schedule of federal assistance; the financial statements; and a schedule of federal assistance, showing the total expenditures for each federal assistance program as identified in the Catalog of Federal Domestic Assistance. Federal programs or grants that have not been assigned a catalog number shall be identified under the caption "other federal assistance". 2) The auditor's report on the study and evaluation of internal control systems must identify the organizat�on's significant internal accounting controls, and those controls designed t4 provide reasonable assurance that federal programs are being managed in compliance with laws and regulations. It must also identify tfie controls that were �valuated, the controls that were not evaluated, and the material weaknesses identified as a result of the evaluation. 3) The auditor's report on compliance containing; a) A statement of positive assurance with respect to those items tested for compliance, including compliance with law and regutatians pertaining to financial reports and claims for advances and reimbursements; b) Negative assurance an those items not tested; c) A surtunary of all instances of noncompliance; -11- . d) An identificativn of total amounts questioned, if any, for each federal assistance awarded, as a result of noncompliance; e) A statement on the status of corrective actian taken on prior findings; and f) Refer to the use of the standards required by the Minnesota LegaT Compliance Audit Guide for Local Governments, prepared by the Office of the State Auditor. The purpose af this guide is to establish compliance guldelines for verification by . auditors auditing political subdivisions of the state. In addition to the audit report, the recipient shall provide comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and cortmients on the status of corrective action taken on prior findings. If corrective action is not necessary, a statement describing the reason it is not should accompany the audit report. The City aqrees that the grantor, the Legislative Auditor, and any independent auditor designated by the qrantor sha11 have such access to grantee's records and financial statements as may be necessary for the grantor to comply with the Single Aadit Act and OMB Circular A-128. Required audit reports must be filed with the Office of the 3tate Auditor, Single Audit Division and state agencies providing federai assistance, within six months of the City's fiscal year end. If a federal cognizant audit agency has been assigned for the City, copies of required audit reports will be f�led with that agency also. -12- � . � � . � .. ' . . � . . ....4, . . . � City of Recommended for Approvai By Mayor Director, Office of State Aid Date Date Attest: Approved as to Form and Execution Gity Clerk Special Assistant Attorney General Oate Date State of Minnesota ' Comnissioner of Transportation Date (Seal) -14- , , , MINNESOTA DEPARTMENT OF TRANSPORTATION FEDERAL AID FORM N0. III � Be 1t resa�ved that pursuant to section 161.36, Subdivision 1 through 6, Minnesota Statutes, the Comnissioner of Transportation be appointed as agent of the City of to let as its agent, eontracts for the construction of local roads and bridge, and the Mayor and the City ckerk are hereby authorized and directed for and• on behaTf of the City to execute and enter into a contract with the Comnissioner of Transportation preseribing the terms and conditions of such contracts in the form as set forth and contained in "Minnesota Department of Transportation Agency Agreement" � copy of which said agreement was before the City Council , assumjng on behalf of the City all of the obligations therein contained. (SEAL) (Submit in dupTicate) Note: Attach certification by City Clerk with each copy of resolution.