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Home My WebLink AboutApproving an Interlocal agreement with the City of Mishawaka, RE: the construction of public improvements to Douglas RdRESOLUTION 3940-09 Passed by the Common Council of the City of South Bend, Indiana January 12, 20 O~g Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana January 13, 20 0~ Approved and signed by me January 13, 2009 City Clerk ~~ Q RESOLUTION NO. 3 9 `f a - O A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING AN INTERLOCAL AGREEMENT WITH THE CITY OF MISHAWAKA, INDIANA CONCERNING THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS TO DOUGLAS ROAD WHEREAS, Indiana Code § 36-1-7-1 et seq. ("Interlocal Cooperation Act") provides that a power that may be exercised by an Indiana political subdivision and by one or more other governmental entity may also be exercised by one or more entity on behalf of the other or jointly, upon the entities entering into a written agreement that has been approved by proper resolution; and WHEREAS, the City of South Bend ("South Bend") and the City of Mishawaka ("Mishawaka") are each municipal corporations existing and operating as political subdivisions of the State of Indiana as defined by Ind. Code § 36-1-2-13 and are authorized enter into a interlocal agreement pursuant to Ind. Code § 36-1-7-4; and WHEREAS, Mishawaka and South Bend now desire to enter into an agreement providing for road improvements on Douglas Road at the corporate limits of the cities of South Bend and Mishawaka ("Project") which agreement is attached hereto and incorporated herein as Exhibit "A "; and WHEREAS, the Agreement meets the requirements of Ind. Code § 36-1-7-3. NOW, THEREFORE, AND IN ACCORDANCE WITH THE AUTHORITY GRANTED BY THE CITY OF SOUTH BEND INDIANA, UNDER INDIANA CODE §36-1-7-1 ET SEQ., BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: Section I. The Common Council of the City of South Bend has considered and hereby approves and ratifies the Interlocal Agreement By and Between the City of South Bend, Indiana and the City of Mishawaka, Indiana related to the Douglas Road Project that is attached hereto as Exhibit "A ", and authorizes the Mayor or the City Controller to execute the Interlocal Agreement on behalf of the City of South Bend. Section 2. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. ,.~ PRESENTED ` ~12- ~~ E ~:L~T. AP~itOVEG 1~i70PTE!~ ~ -\Z- 09 Me`m6er, South Bend 3'~~~~i~rk'~ ~~fice JAPE - 7 2009 J(3nN VOCflD'c CITY CLERK, SQ. 6END, IN. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 09-07 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING AN INTERLOCAL AGREEMENT WITH THE CITY OF MISHAWAIG4, INDIANA CONCERNING THE CONSTRUCTION OF CERTAIN PUBLIC IMPROVEMENTS TO DOUGLAS ROAD Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Ann Puzzello Chairperson, Committee of the Whole EXHIBIT "A" INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF MISHAWAKA, INDIANA, AND THE CITY OF SOUTH BEND, INDIANA (Douglas Road Project) THIS AGREEMENT, is entered into and made effective the day of 20 ~, by and between the City of Mishawaka, Indiana, and the City of South Bend, Indiana. RECITALS WHEREAS, the City of Mishawaka ("Mishawaka") and the City of South Bend ("South Bend") .are each municipal corporations existing and operating as political subdivisions of the State of Indiana as defined by Ind. Code § 36-1-2-13 and are authorized enter into. a interlocal agreement pursuant to Ind. Code § 36-1-7-4; and WHEREAS, Mishawaka and South Bend desire to enter into an agreement providing for road improvements on Douglas Road at the corporate limits of the cities of South Bend and Mishawaka ("Project"); and NOW, THEREFORE, in consideration of the mutual promises and obligations in this Agreement, the adequacy of which is hereby acknowledged, the Parties agree as follows: I. PURPOSE The Project incorporated herein. is more generally depicted at Exhibit "A" attached hereto and Although benefiting both cities, the majority of the project is located in South Bend. South Bend has performed extensive due diligence on the project in working with consultants prior to the execution of this agreement. South Bend has considerable experience in employing engineering consultants and administering similar construction contracts. Given the circumstances and general location of the project, Mishawaka wishes to utilize the expertise and experience of South Bend's staff and Board of Public Works in letting .and overseeing any such contracts reasonably necessary to carry out and accomplish the Project. II. PROJECT FUNDS AND DUTIES 2 F:\.*.\Projects\BPW\Douglas Road_Interlocal Agreement_SB Mishavvaka_V2_081229.doc a. Budget. The total cost of the Project is anticipated not to exceed the sum of $3.1 Million ("Project Cost") based upon actual costs incurred to date and bids received for road construction. In general, South Bend and Mishawaka shall apportion the Project Cost as follows: South Bend $1.7 Million Mishawaka $1.4 Million Mishawaka's share of the Project Cost shall be in the form of a loan to the City of South Bend and direct contribution as described in Section II, below. A more detailed description of the Project budget is attached hereto and incorporated herein as E.rliibit "B" ("Source and Use of Project Funds"). b. Duties of South Bend. South Bend hereby agrees as follows: i. South Bend has retained Abonmarche Consultants, Inc., a consulting engineering firm with the expertise in design and construction of similar projects. Working through the developer selected for the Project, Holladay Corporation, Abonmarche Consultants has prepared the plans and specifications for the Project. The plans and specifications have been shared with the Mishawaka City Engineer for review and comment. ii. To expedite the Project, South Bend has paid certain costs] which shall be deducted from South Bend's above-listed pro-rata share of the Project Cost. South Bend shall pay the balance of its pro-rata share of the Project Cost in accordance with this Agreement. iii. Subject to the Project Funds identified for the Project as described in Ex/~ibit "B ", South Bend shall enter into any construction contracts or make right of way or easement or other purchases reasonably necessary to complete the Project. iv. South Bend shall supervise and administer all necessary contracts with the design consultant and any construction contractor. v. The Controller for the City of South Bend shall have the duty of receiving, discharging, and accounting for all the monies of this joint undertaking and shall make payments upon authorization from South Bend's Board of Public Works. 3 F:1.*.\Projects\BPW\Douglas Road_Interlocal Abreement_SB Mishawaka_V2_031229.doc vi. The Mayor or the Controller for the City of South Bend shall be authorized to execute this Agreement on behalf of the City of South Bend, Indiana. c. Duties of Mishawaka. Mishawaka hereby agrees as follows:. i. Mishawaka shall pay its pro-rata share of the Project Cost to the Controller for the City of South Bend with said monies to be used in accordance with this Agreement. Such pro-rate share shall include the .following: Direct contribution of funds for construction of 300 ft of $175,000.00 roadway located in Mishawaka Direct contribution of % cost of conduit for Metronet $75,000.00 located in Mishawaka and connecting Mishawaka from unincorporated areas Loan of funds from Grape Road TIF to Douglas Road TIF $1,150,000.00 Mishawaka Tota! Pro-Rata Share .8'1,400,000.00 ii. As condition of the loan of fiords from the Grape Road .TIF, Mishawaka agrees to accept repayment over a term not to exceed twenty (20) years at an annual interest rate of 5% ("TIF Loan"). The TIF Loan shall be paid as first priority and there shall be no pre- payment penalty. The intent of this provision is that once South Bend makes its annual payment to Mishawaka, and such payment is current, South Bend is not barred .from using funds for other purposes permitted by law. III. ADMINSTRATION This Agreement shall be administered by the Board of Public Works for the City of South Bend. Contract modification or adjustments that modify the construction cost on the project shall be subject to the approval of all parties to the Agreement via facsimile or email. Upon completion of the construction project, a final audit shall be performed by the City of South Bend. All costs in excess of the stated Project Cost shall be shared by all parties on a pro-rata basis. Changes within one jurisdiction for the primary benefit of that jurisdiction shall be paid for by the applicable jurisdiction and shall not be subject to cost sharing. South Bend shall advise all parties to the agreement of any contract modifications or change orders that modify the final construction cost of the Project via e-mail or facsimile. Upon completion of construction of the Project, a final audit shall be preformed by South Bend and presented to Mishawaka for review and approval. Any approved costs in excess of the stated Project Cost shall be shared on a pro-rata basis by the Parties. Changes within one jurisdiction for the primary benefit of that jurisdiction 4 F:\.*.\Projects\BPW~Douglas Road_lnteriocal Agreement_SQ Mishawaka V2_031229.doc shall be paid for by the applicable jurisdiction and shall not be subject to cost sharing. Both Parties agree to make payment to South Bend for the full amount of the change order(s) and. supplemental agreement(s) within a period not to exceed thirty (30) days from receipt of final invoice. IV. DURATION This Agreement shall go into effect when it has been approved by the legislative bodies of the City ofSouth Bend, and the Board of Public Works and Safety of the City of Mishawaka, respectively, and the Agreement has been recorded with the St. Joseph County Recorder. The .Agreement shall terminate on the later of (i) substantial completion of the Project or (ii) 2029. [SIGNATURE PAGE FOLLOWS] 5 F:\.*.\Projects\BPW\Douelas Road_Interlocal Agreement_SB Misliawaka _v2_031229.doc Date: , 20_ Date: , 20, CITY OF MISHAWAKA, INDIANA CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS AND SAFETY ignature ignature ary est, resi ent rinte ame an it e (Signature Page to Interlocal Agreement By and Between City of ~Llishativaka, Indiana and City of South Bend Indiana related to the Douglas Road Project) 6 P:\. •.\Projects\BPW\Douglas Road Interlocal Agreernent_SB Mishawaka V2 081229.doa Filed In C1~rrt'a ®ffiCe JAtJ -_7 20C9 ~oi~N vooROE CITY CLERK, So• BEND, IN. E.rliibit «A„ Pro.{ect Description a a~ r - At~„'`Y ~ ti;~, c~~~~~ ~ fin ~ i ~ ;~" L 9:Cr^~L~ y } ,,c,~T'ci ib ~y~ ~, ,+'L ! ~y :,~ Alf`" J.HC '~~ 1'y~ C<a ~ ,:"~. i ~ rL b a r W { jl ~ ~ ,p ~ '. ~' - ~~ J +i}~ ~r` 1 ~ -e / ,~~ t ~,:c '+..,e :'6 s .rte ~~ r r, ~" ~ ~ t t b g .~'~~? fi~ee'' ~ ~ ' ~ 4~~ ~° ~ ~ ~ _~ ~, t , ~~~ . , ri° ~ ~+'' ~ f~ ~ chi !.,. G +lf .--~ ~`~ati:. 'tSt~^4. ~ - I ~- y ° ' - :• ~ ~ p y~ y.t .:.rte b~ ~~ ~ /-~" ~y~lj ~~l ~~ '2 ~-~r 4 t .r; ~-: i ~ 4 '~ o b,}•~y ,yr r s., f f ~ r f ~ ~t $ 6~ ~~ l~ ~' I ~ T" 6 ~. . ~ i t ~ ~ ~ " ~~C`E`~,'d~ ~ ', •~ re ,_!'f I` ~~_ ~y 'S.~F,Y~ ~z. ~ i ~C - ~-t '~! F~~'~t ~-~k ~ ya~i ?a~ ~Y.ly ~ \~R!) ~~ ~ ~ ~r 'x f ~ iF ~ i f ~ i _ ~ , ~~ .f,~,.~. , j~ ~ "'/::.~ ~' ~fi ~ f 1 ~~, , .Se'l'f . R° n~ ~ b y.~ F ~r sir eb~r ~sxrX a? ~« ~ ` a., ~ i~Ki~~i a""y'' ~y<y J ~- ( ~.~}~{ r~~ a%~ ~ t7~' _R.-' ~`4 'Y~M -s~J ~~ ~i~"l ~ ~,~: ~y*e,-.$It i 9'` ~ l.:q~ tb ~jFa,,y"Lp ~ ~.,~~ r,~~ ~j. ',: ~ fX q'~ ~ ~ 3'r ~ ~r .~ ~ r r~ rT ~~T ~` >`.i~t - ~~~ ~~,Y.l~i..~A~'Iq"zKe-~ r.~ "c.3 1 ~~ ~" > tiL ^e~ ~X q¢ t't a r a'r ~`~~ ~ ~'1 ". ': r -i -~c i°ti~t.~~ ~y ~ ~ ~~_~ - *> ~q, - , f ~J lI" !~ ` . r = ` `*. ''`~~..=` ~ 4ti.. w[~ k~. ;r'1', ~ ",`s.~y~~.kr ~l '' d '"P~:•qf ~ F .1 ~Y ~ ~ yp v ~: ,1- ,a. k}x "t Y ~ tC ~ ~*" 1 ` i~~ ;/ ~r~ yi ~ r '•~ ~~f t~~ ~` J`1(.7 ~ l.y~ ~ K ;~~+..i~y~ "' C`"~ ~"+a'~,p+jy.'w.k ice/ 1 .....~ ! y { , :.... ,~ ~ur,~f E''~l~L,"~ ~~-. ,51.Cl~~iz_~-.T. 'C~ `'" ~° ~ ` ~ ~ ~ ~ '_ .SL.~.'t `+rr Fi6~~ Ita ~i~+'a'~ ~f~ice ~~~,r; v~;~s~~ Exhibit "B" Source and Use Of Project Funds Source of Funds South Bend Major Moves Funds Loan $1,000,000.00 South Bend. Sewer Capital Funds Grant 700,000.00 Mishawaka Loan from Grape Road TIF 1,150,000.00 Mishawaka Grant of Funds 250,000.00 Total Source of Funrls $3,100,000.00 Use of Funds Engineering $275,000.00 Right-ot=Way 298,041.00 Construction 2,383,594.00 Construction Contingency 143,365.00_ Total Use of Ftrnds $3,100,000.00 ~,;. 'Zf ~li .. F"IiC"': 4t3 l~Gl ~~'~ €~:" r 0 ~;r k - 7 2009. 1200 COUNTY-CITY BUILDING 227 W. ~EFFERSON BOULEVARD SODTH BEND, INDIANA 46601-1830 PxoNE574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~ ECONOMIC DEVELOPMENT ,JEFFREY V. GIBNEY EXECUTIVE DIRECTOR January 7, 2009 South Bend Common Council Fourth Floor Council Chambers 400 County-City Building South Bend, IN 46601 Dear Council Member: The attached bill for your consideration and approval will approve the Interlocal Agreement between South Bend and Mishawaka for the widening of Douglas Road. Financing for this project is in part coming from a loan from Mishawaka in the amount of $1,150,000. This loan will be repaid over 20 years with 5% interest from TIF revenues generated by development in the Douglas Road TIF area. Mishawaka will also provide $250,000 for payment of project expenses directly related to Mishawaka. City of South Bend Major Moves funds in the amount of $1,000,000 and $700,000 of South Bend Sewer Capital will also be used to fund this project. The Major Moves funds are to be reimbursed with 5% interest from the area's TIF revenues. You may recall when this TIF area was established it was for the purpose of stimulating development and to pay for the widening of Douglas Road which was necessary to spur the development. I, will make the presentation to the Council at your January 12th meeting. If you have any questions, please call me at 235-9339. Sin relyp ,, .-vim L ~ / Donald E./Inks Director Economic Development cc: Jeff Gibney Filed In Clerk's Qf~ice JA~d - 7 2009 JOHN VOORDE CfTY CLERK, S0. BEPtD, IN. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM ~t , PAMELA C. MEYER DONALD E. INKS MANAGEMENT 'V 574/235-9660 - 5741235-9371 ELIZABETH LEONARD ~ FAX: 574/235-9697 574/235-9371