02-24-2020-R - Laserfiche WebLink

Home Browse Search

Page 1 of 2 DATE: February 24, 2020 TO: Honorable Mayor and City Councilmembers David Perrault, City Administrator FROM: Todd Blomstrom, Public Works Director/City Engineer SUBJECT: Funding Advance Request for Municipal State Aid Funds Budgeted Amount: Actual Amount: Funding Source: N/A $1,321,273.32 MSA Construction Allotment Council Should Consider The City Council is requested to consider adoption of the attached Resolution Requesting a Municipal State Aid Street Funds Advance. Background/Discussion On September 16, 2019, the City Council Work Session included a discussion of the status of Municipal State Aid (MSA) funding for street projects. This discussion included a review of funding for the 2018 Old Snelling Trail and Water Main Project. When the project was awarded, the project funding plan assumed $1.47 million would be derived from MSA funds. However, construction funds were not available at the time of contract award, and a funding request was not submitted to the State Aid office to receive future construction allotment payments. Based on Council direction during the work session, staff began the process to request a MSA funding advance from the City’s future construction allotment to allow the City to reconcile the funding for the Old Snelling Trail and Water Main project. The State Aid office has reviewed the request and notified the City to provide a City Council resolution outlining the amount and conditions of the funding advance as the next step in the process. A resolution is provided in Attachment A. Budget Impact A Municipal State Aid advancement of $1.32 million from future annual construction allotments would provide the necessary funding to reconcile the 2018 Old Snelling Trail and Watermain CONSENT ITEM – 7D MEMORANDUM