Consider Recommendation to City Council to Order Traffic Study for Bunker Lake Boulevard Reconstruction - Armstrong Boulevard to Ramsey Boulevard

Purpose:
The purpose of this case is to consider a recommendation to the City Council to order a Traffic Study for the proposed reconstruction of Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard.
 
Background:
In April of 2005, a Joint Powers Agreement (JPA) was executed between the City of Ramsey and Anoka County defining required public works improvements related to the Ramsey Town Center development, now referred to as The COR.  Two amendments have been executed since, one in February of 2009, and the other in February of 2012.  A copy of the executed JPA, including the two amendments, is attached.
 
The required public works improvements, which total slightly more than $13,000,000 in 2005 dollars, are generally intended to be constructed in four separate phases per the JPA. Individual project cost summaries are included in Schedules A through C.  The JPA outlines the requirements of each party as related to the design and construction of the improvements, allowable use and access to County-owned properties and highways, and other terms and conditions.
 
Phase 1 identifies required improvements to Ramsey Boulevard from Highway 10 to 1,000 feet north of Bunker Lake Boulevard including expansion to a four lane divided highway with turn lanes and signal system modifications at Highway 10, railway crossing upgrades, and signal systems installed at Sunwood Drive and Bunker Lake Boulevard.  This work has been completed.
 
Phase 2 identifies required improvements to Armstrong Boulevard from Highway 10 to 1,000 feet north of Bunker Lake Boulevard including expansion to a four lane divided highway with turn lanes and signal system modifications at Highway 10, railway crossing upgrades, and signal systems installed at Sunwood Drive and Bunker Lake Boulevard.  This work has been completed.
 
Phase 3 is one of the larger and more costly improvements required by the JPA.  This work includes the expansion of Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard to a four lane divided highway with turn lanes and construction of signal systems at Center Street and Sunwood Drive.  This project was estimated to cost $3,170,109 in 2005.  This work has not been completed and was originally intended to be completed in 2007 based on anticipated development, but was delayed when development slowed in the late 2000’s.
 
Phase 4 identifies required improvements to Sunfish Lake Boulevard from Highway 10 to 1,000 feet north of Bunker Lake Boulevard including expansion to a four lane divided highway with turn lanes and signal system modifications at Highway 10, railway crossing upgrades, and a signal system installed at Bunker Lake Boulevard.  This work has been completed.
 
In the fall of 2019, Anoka County Highway Department staff informed City staff they want to expand Bunker Lake Boulevard to a four lane divided highway between Sunfish Lake Boulevard and Armstrong Boulevard in anticipation of the need for a reliever route due to the work proposed to Highway 10 through the cities of Coon Rapids (adding a third lane to Highway 10 in each direction) and Anoka (the Anoka Solution improvements).  Anoka County is starting to explore their right of way needs related to expanding Bunker Lake Boulevard between Sunfish Lake Boulevard and Ramsey Boulevard, and asked that the City of Ramsey begin designing the required improvements for Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard per the JPA.
 
City Staff began developing a Request for Proposals (RFP) to solicit engineering services for completing a traffic study and preparing plans and specifications for improvements to Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard.  Before presenting a draft RFP to the City Council to request authorization to solicit proposals from Anoka County approved engineering consultants, the Public Works Committee was asked to recommend City Council approval of the request on November 19, 2019.
 
On November 19th the Public Works Committee questioned why the terms within the JPA require the City to finance and reconstruct County Road 116/Bunker Lake Boulevard, and why the City should be responsible for building and financing the improvements.  If so, the Committee felt the City should have additional say in which access points are allowed onto the roadway.
 
The Committee directed Staff to gather additional information as follows;

1. What is the history of the terms and conditions within the JPA?
2. Contact Anoka County to discuss options for renegotiating the JPA to find efficiencies and opportunities for additional access onto Bunker Lake Boulevard.

 
Update on JPA Terms and Conditions
City Staff contacted the City’s former Public Works Director, who was primarily charged with executing the JPA on behalf of the City of Ramsey, to inquire why the City agreed to upgrade the County Road to a 4-lane section.  His response was that this was the proposed design per the mitigation section (Appendix C) of The COR AUAR (see italicized text below).
 
ITEM 21. TRANSPORTATION
 
Bunker Lake Boulevard (formerly Industry Avenue)—widen to five lane cross section west of Ramsey Boulevard to provide two through lanes in each direction and a left turn lane/center median.
 
Update on Anoka County Discussions
City Staff contacted Anoka County Engineer Joe MacPherson.  Though the County Engineer was open the idea of discussing the renegotiation of terms within the JPA regarding the reconstruction of Bunker Lake Boulevard and the number of allowable accesses to it, he first wanted to review the JPA with some of his staff and would get back to us.  However, he also was quick to point out that Anoka County’s cost share would need to be renegotiated if the scope of the improvements change due to the renegotiations.  As of the time this case was prepared, City staff has not received a return call.
 
During a meeting with the County Engineer on February 12, Staff asked if Anoka County would be open to conducting a traffic study in advance of final design for the purpose of verifying the necessary scope of the improvements based on existing and proposed traffic volumes, turning movements, and land uses.  It was discussed that there have been many changes since the AUAR and JPA were executed and that a 4-lane road may no longer be necessary.  The County Engineer confirmed that he thought this made sense and that he would support this.
 
Staff then asked if Anoka County would consider partnering with the City on a traffic study for the entire segment of Bunker Lake Boulevard between Armstrong Boulevard and Sunfish Lake Boulevard, which could offer cost-savings due to economies of scale and would ensure that the entire corridor was being studied consistently since the same engineer would be completing the study.  The County Engineer expressed his willingness to consider this, and asked City Staff to send an email with such a request that he could share with his County Board on Friday to seek their approval.  Staff submitted an email on February 13th is awaiting a reply.
 
Update on Anoka County Contributions to JPA Required Improvements
In 2005, the City issued a $4,335,000 bond on behalf of Anoka County for their share of improvements to County Roads within The COR identified in the Ramsey Town Center (RTC) Alternative Urban Area-wide Review (AUAR) and Joint Powers Agreement (JPA).  Each year the city invoices Anoka County for their share of the bond payments.  To date, the city has invoiced the county a total of $4,666,704.14, of which the County has paid $4,328,193.88 (their 2020 payment has not yet been received).  Their annual payments go into the respective debt service fund used to pay the principal and interest payments in June and December of the respective year.  These annual payments from Anoka County will end in 2025 when the bond expires.  Thus, five (5) payments of $338,510.26 each are still outstanding from the county, which totals $1,692,551.30.  The city must continue to pay this debt so this amount cannot be renegotiated.
 
Update on Availability and Use of TIF Funds
TIF funds are available to help fund the reconstruction of Bunker Lake Boulevard north of The COR between Ramsey and Armstrong Boulevards.  TIF 1 has an available balance of $1,100,000, of which $1,000,000 is designated to help fund this project.  TIF 2 has an available balance of $2,200,000, of which $1,500,000 is designated to help fund this project.  TIF 14 has an available balance of $575,000, of which $1,150,000 is designated to help fund this project.  It should be noted that TIF 14 has an existing 10 year rule date of November 28, 2021, which means that in order for project expenses to be 100% eligible for TIF 14, the work must be complete and payment must be made by November 28, 2021.

Staff anticipates this case will take approximately 20 minutes to present and respond to questions.

Observations:

Additional information, if available, will be presented during the meeting.

 

Alternatives:

Alternative #1– Motion to recommend that the City Council order a Traffic Study for the proposed reconstruction of Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard.

Alternative #2 – Motion of other.

Staff estimates that a traffic study required to help define the scope of the proposed improvements should take no more than two months to complete at a cost no to exceed $20,000.  Attached is a copy of the project summary sheet from the adopted 2020 – 2029 CIP, which identifies estimated project costs and proposed funding sources.

Staff recommends alternative #1 to allow the project to keep moving forward to ensure funds from TIF 14 can be captured in full. 

Motion to recommend that the City Council order a Traffic Study for the proposed reconstruction of Bunker Lake Boulevard between Armstrong Boulevard and Ramsey Boulevard.