Title
Resolution to Approve an Agreement with the Michigan Department of Transportation for the Stone School Road Improvements Project ($3,445,200.00)
Memorandum
Attached for your review and approval, please find a resolution that approves an agreement between the Michigan Department of Transportation (MDOT) and the City of Ann Arbor for the construction phase of the Stone School Road improvements Project. The agreement defines the cost sharing of the construction, as well as each party's rights and responsibilities.
Budget/Fiscal Impact
The Engineer's Estimate for the project's construction is $4,920,820.75. The estimated total cost of the project is $6,950,000.00. In total, the City will be receiving approximately $1,475,700.00 in federal funds for this project. The federal funding will be used to fund participating roadway construction expenses such as curb and gutter construction, sidewalk, asphalt pavement, and other similar work items. The City will be funding portions of the roadway construction and related appurtenances, the water main, storm water, and sanitary sewer portions of the project, as well as the necessary design, construction engineering, and material testing costs. Funding for this project is available in the appropriate approved capital budgets. The project is being performed as an Advance Construct project through MDOT. The Advance Construct funding mechanism requires the city to interim finance the federal share of the project's participating construction costs and be reimbursed by MDOT at a later date. For this project, the federal funds will be reimbursed in the State's FY15. We have used this form of project financing successfully on many projects in the past.
The storm water quality management portion of this project will be financed with State Revolving Funds (SRF). Staff is currently working through the loan approval process with the Washtenaw County Water Resources Commissioner's office. The reason for financi...
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