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Federal Highway Administratioin_Commitment Letter Historic Millwork DistrictMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Commitment letter to Federal Highway Administration DATE: August 31, 2010 MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Michael C. Van Milligen Dubuque krflati Afl-A edcal y 2007 In March of 2010, the City of Dubuque was notified that the Historic Millwork District Streetscape and Utilities Project was the recipient of a $5.6 million TIGER (Transportation Investment Generating Economic Recovery) Grant. Veenstra & Kimm, Inc. (V &K) was retained by the City in June of 2009 to design the street and utilities for the Millwork Strict. Since the notification of the grant award, V &K, City staff and the Federal Highway Administration (FHWA) have been working together on a grant agreement. Sarah Berman with FHWA is requesting the City supply a letter of commitment for any funds above and beyond the $5.6 million TIGER grant needed to do the core project. The City will not be committing to a specific dollar amount but is only committing to supplying funds above and beyond the $5.6 million, if needed. Currently the engineer's estimate for the core project is $5,766,975. The City has approximately $1.5 million in the budget available for these improvements, which will allow the City to not only provide this guarantee, but to fund some of the items that will be bid as alternates. City Engineer Gus Psihoyos recommends City Council approval of the commitment letter to be sent to Sarah Berman of FHWA. I concur with the recommendation and respectfully request Mayor and City Council approval. Gus Psihoyos, City Engineer Masterpiece on the Mississippi TO: FROM: SUBJECT: DATE: INTRODUCTION BACKGROUND DISCUSSION Michael C. Van Milligen, City Man Gus Psihoyos, City Engineer Commitment Letter to FHWA August 30, 2010 10th Street Reconstruction — Jackson to Elm Washington Street Reconstruction — 9 to 1 1 th Jackson Street Reconstruction — 7 to 11 Jackson Street Trail — 5 to 7th 10 Street Streetscaping — Main to Jackson 1 1 th Street Utilities — Jackson to Elm Dubuque btriti All- AmdlcaCity I 2007 This memo requests the signing of a commitment letter to be sent to Ms. Sarah Berman of the Federal Highway Administration (FHWA). In March of 2010 the City of Dubuque was notified that the Historic Millwork District streetscape and Utilities Project was the recipient of a $5.6 Million TIGER (Transportation Investment Generating Economic Recovery) Grant. Veenstra & Kimm, Inc. (V &K) was retained by the City in June of 2009 to design the street and utilities for the Millwork District. Since the notification of the grant award, V &K, City staff and FHWA have been working together on a grant agreement. Sarah Berman with FHWA in Washington is requesting the City supply a letter of commitment for any funds above and beyond the $5.6 million TIGER grant needed to do the core project. The core project is the following: The City will not be committing to a specified dollar amount. The City is only committing to supplying funds above and beyond the $5.6 million, if needed. Currently the engineer's estimate for the core project is $5,766,975. As part of the bidding process, Engineering and FHWA propose the use of bid alternates. This allows the City some STREETS TIGER FUNDING (FHWA) ADDITIONAL CITY FUNDING REQUIRED BASED ON ENGINEER "S ESTIMATE Core Project Streets $5,600,000 $166,975 9 Street Streetscape — White to Washington $380,000 9 Street Streetscape — Main to White $570,000 8 Street Reconstruction - White to Jackson $550,000 7 Street Reconstruction — White to Washington $750,000 Elm Street Streetscape — 9 to 11th $250,000 1 1 th Street Streetscape — White to Elm $590,000 Jackson Street Streetscape — 11 to 12th $100,000 Washington Street Streetscape — 11 to 12th $100,000 flexibility to add additional streets to be improved if the bid prices fall within the City's budget. Below is a summary of the current City budget for the Historic Millwork District and engineer's estimates for different alternates. These streets are listed in the desired priority order for redevelopment in the Historic Millwork District. The City has approximately $1,500,000 in sanitary sewer, stormwater and water funds currently budgeted that can be used towards the alternates listed above. This list was developed in consultation with the major property owners in the Millwork District, Dubuque Mainstreet, IADOT and City staff. This list also reflects the development desired as part of the Historic Millwork District Master Plan that was adopted in 2009. Engineering has recently received notification that the State Historic Preservation Office (SHPO) has signed off on the Historic Millwork District Project as having No Adverse Effect to Historic Properties. FHWA is expected to sign the Categorical Exclusion the week of August 30 Once this is signed, V &K will be allowed to proceed with final design of the streets and utilities. The final funding agreement with FHWA is expected to be signed by the end of September 2010. Currently, Engineering expects the project to be let for bid in mid October 2010. ACTION REQUESTED I request you sign the attached commitment letter to Ms. Sarah Berman, FHWA- Washington. Let me know if you have any questions. Cc: Jenny Larson, Budget Director Teri Goodman, Assistant City Manager David Heiar, Economic Development Director Aaron DeJong, Assistant Economic Development Director Laura Carstens, Planning Services Manager Jon Dienst, Civil Engineer II Masterpiece on the Mississippi To: Ms. Sarah Berman Agreement/Contracting Officer Office of Acquisition Management Federal Highway Administration DATE: September 7, 2010 SUBJECT: Commitment Letter for ESL - 2100(660) -7s -31 Ms. Berman, The City of Dubuque appreciates the opportunity to work with FHWA on the Historic Millwork District Streetscape and Utilities project. The City is committed to funding costs for the core project above and beyond the $5.6 million TIGER grant from USDOT. The core project was described in the Preliminary Terms Sheet and Technical Proposal. If you should have any questions regarding this project, please call Jon Dienst in the City of Dubuque Engineering Office at (563)- 589 -4104 or email him at jdienstCa�cityofdubuque.orq. Attchs. Cc: Tom Parham, FHWA Greg Roth, Veenstra & Kimm, Inc. Jon Dienst, P.E., City of Dubuque Jenny Larson, City of Dubuque City Manager's Office City Hall 50 W. 13th Street Dubuque, Iowa 52001 563.589.4110 563.589.4205 (fax) www.cityofdubuque.org Sincerely, Michael C. Van Milligen City Manager City of Dubuque