8/9/2019 April 20, 2010 Request For Council Action Drexel Interchange

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APPROVAL REQUEST FOR

COUNCIL ACTION

MEETINGDATE

April 20, 2010

REPORTS ANDRECOMMENDATIONS

State of Wisconsin Department of TransportationState/Municipal Agreement(s) for a Highway

Improvement Project: 27th Street (STH 241); DrexelAvenue Interchange

ITEM NUMBER

Attached are copies of an Intergovernmental Memorandum of Understanding with the City and CDA of Oak Creek, which was approved by the Franklin Common Council on June 16, 2009 and the CDA on June 18, 2009;a State/Municipal Agreement for 27th Street and another for IH 94 Drexel Avenue Interchange, both dated

November 17, 2009 and delivered to the Director of Administration by the Department of Transportation on November 30, 2009; and a State/Municipal Agreement for 27th Street delivered to the City Attorney on January29, 2010. At the time of approval of the Memorandum of Understanding, the terms of which were the result of the State Legislators for Franklin and Oak Creek working with the Department of Transportation, therepresentatives were very hopeful that the terms would ultimately be acceptable to the Department for incorporation into the Departments standard form highway improvement agreements for 27th Street withFranklin and Oak Creek and for the IH 94 Drexel Avenue Interchange with Oak Creek. Following the receipt of the Departments proposed agreements in November and January, City staff worked with RepresentativeStones Office, which was working with the Department, to determine why the terms of the proposedagreements did not match the terms in paragraph IV. of the Memorandum. Ultimately, Departmentrepresentatives met with the Mayor, City Engineer and City Attorney on March 30, 2010 and advised that whileDepartment superiors have the final decision-making responsibility, the Department does not accept the terms of the Memorandum, that any construction of the Drexel Avenue Interchange would require a municipal cost share

payment of $500,000 from Franklin to the 27th Street project which it otherwise would not pay under standardmunicipal cost share requirements or directly to the Drexel Interchange project (assuming the in placeagreements providing for payments from Oak Creek in the amounts of $3,750,000 and $500,000 and from

Northwestern Mutual Life Insurance Company in the amount of $1,600,000; and assuming no other party would pay the remaining $500,000), and that the deadline for any agreement to be made is May 1, 2010.Representative Stone and his staff and the Common Council President and the City Attorney again met withDepartment representatives on April 12, 2010, with the same result and information, other than that Oak Creek was also meeting with the Department on April 16, 2010 to discuss whether the Oak creek 25% contributionshould be reduced by an amount in excess of $500,000, due to a reduction in the total project cost from about$15,000,000 to $12,860,000 which issue is expected to be on the Oak Creek Common Council meeting agendathis date.

COUNCIL ACTION REQUESTED

The Mayor informed the Wisconsin Department of Transportation Southeast Region Director at the March 30,2010 meeting that the Departments position on the Memorandum of Understanding and this subject matter would be placed before the Common Council for any action it deemed appropriate before the stated deadline.

8/9/2019 April 20, 2010 Request For Council Action Drexel Interchange

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