HomeMy WebLinkAbout4.h. Approve State Aid Agency Agreement {
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*******#�*****�**�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
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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:
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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.
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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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.
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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
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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.
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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,
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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._
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.
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;
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.
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.
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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)
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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.