Adopt Resolution #19-125 Authorizing BUILD Grant Application for Highway 10 Ramsey Gateway Improvements

Purpose:
The purpose of this case is to adopt Resolution #19-125 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $15,000 to prepare an application for funding in the maximum amount of $25,000,000 through the Better Utilizing Investments to Leverage Development (BUILD) grant program for the Ramsey Gateway improvements.

Background:
In September of 2014, the Cities of Ramsey and Anoka, in partnership with the Minnesota Department of Transportation (MnDOT), the Anoka County Highway Department, and the Metropolitan Council, completed the Highway 10 Access Planning Study.  This Study included an Implementation Plan that identified 21 proposed improvement projects along the Highway 10 corridor through Anoka and Ramsey.  Each of the identified projects were prioritized in the implementation plan as immediate, short-term, mid-term, or opportunity/ development/safety driven projects.  On October 28, 2014, the Ramsey City Council adopted the Highway 10 Access Planning Study, thereby supporting the mutual goals and objectives of the various agencies to improving the operations and safety of Highway 10 in balance with local community values.
 
After the Highway 10 Access Planning Study was completed, the City of Anoka hired Bolton and Menk to develop a City approved design for improvements to Highway 10 through the City of Anoka.  This plan, called the Anoka Solution, resulted in $85 million worth of proposed improvements to Highway 10 including grade-separated intersections at Fairoak Avenue and Thurston Avenue, frontage road connections on both sides of Highway 10, and improvements to the existing grade-separated intersection of Main Street and Highway 10.
By developing this plan, the City of Anoka was able to pursue external funding from numerous sources and recently released a notice that the project is fully funded with construction set for 2022 and 2023.
 
The City of Elk River was also recently awarded funding for grade-separating the intersections along Highway 169 through the City of Elk River.  This means the City of Ramsey will have the only two at-grade signalized intersections on US 10/169 once these projects are complete.
 
Last year, the City of Ramsey hired Bolton and Menk to develop a City of Ramsey approved plan for improvements to Highway 10 through the City of Ramsey.  Staff from the City and Bolton and Menk have since been working with Staff from Anoka County, the Minnesota Department of Transportation, the Federal Highway Agency, and the City of Elk River, to develop a plan for improvements to Highway 10 through the City of Ramsey to increase operations and safety consistent with the Highway 10 Access Planning Study.  This plan, called the Ramsey Gateway, proposes grade separation improvements on Highway 10 at the intersections of Sunfish Lake Boulevard and Ramsey Boulevard, frontage roads on both sides of Highway 10, and grade separation improvements for the Burlington Northern Santa Fe (BNSF) railway crossing of Ramsey Boulevard.  Based on the range of options currently being reviewed with the public, the proposed improvements to Highway 10 will cost somewhere between $90 and $150 million. 
 
Phase 1 of the Ramsey Gateway plan, the planning phase, will be complete within the next couple of months.  Phase 2 of the Ramsey Gateway plan, the design phase, will develop the preliminary design and estimated construction costs based on the approved plan.
 
To ensure the City of Ramsey is in a position to construct improvements along Highway 10 through Ramsey soon after the cities of Anoka and Elk River complete their improvements, City staff believes it is prudent to begin submitting applications for external funding as soon as possible as the opportunities arise.  These opportunities occur at different times of the year so Staff feels it is important to apply early and often to ensure our project can be fully funded within the next several years.
 
An opportunity currently exists to apply for federal funds through the Better Utilizing Investments to Leverage Development, or “BUILD Transportation grants” program.  The Consolidated Appropriations Act of 2019 appropriated $900 million to be awarded by the Department of Transportation (“DOT”) for National Infrastructure Investments. This appropriation stems from the program funded and implemented pursuant to the American Recovery and Reinvestment Act of 2009 and is known as the BUILD program. Funds for the FY 2019 BUILD Transportation grants program are to be awarded on a competitive basis for surface transportation infrastructure projects that will have a significant local or regional impact.  A copy of the Notice of Funding Opportunity is attached.
 
The BUILD grant program is generally the same program as the previous Transportation Investments Generating Economic Revenue (TIGER) grant program.  The 2019 BUILD Transportation grants have a maximum award amount of $25 million, and no more than $90 million can be awarded to a single State.  Additionally, not more than 50 percent of funds will be awarded to projects located in urban and rural areas, respectively.  BUILD Transportation grants may also not be less than $5 million, except for projects located in rural areas where the minimum award size is $1 million.  All FY 2019 BUILD funds must be expended by September 30, 2026.
 
Applications must be submitted on-line through Grants.gov by 8:00 PM E.D.T. on July 15, 2019.  The City Engineer will submit the application.

Notifications are not required for this case.

Observations:
Upon City Council authorization to submit an application for the FY 2019 BUILD grant program, Staff will request letters of support from Anoka County, the Minnesota Department of Transportation, and local businesses.  Congressional letters of support will also be requested.
 
In 2017, the City applied for a federal FASTLANE grant.  Though the City was unsuccessful with that application, Staff did request an audit of our application and was informed that though the application was unsuccessful the vast majority of applicants are not awarded funds with their first application, and that our chances of award increase each time we submit an application due to increased familiarity with our project.
 
If the City is unsuccessful in securing funds under the 2019 BUILD program, the application can be re-purposed to apply for future BUILD program funds, or other available funding sources.  Such programs include Transportation Economic Development (TED), Corridor Investment Management Strategy (CIMS), Corridors of Commerce (COC), Local Road Improvement Program (LRIP), and the Local Partnership Program (LPP), formerly known as the Cooperative Agreement program.

Alternatives:
Alternative #1 - Adopt Resolution #19-125 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $15,000 to prepare an application for funding in the maximum amount of $25,000,000 through the BUILD grant program for the proposed Ramsey Gateway improvements.

Alternative #2 - Deny adoption of Resolution #19-125 at this time.

The current estimated cost for constructing the proposed improvements along the Highway 10 corridor through the City of Ramsey is $125 million.  If the City is successful in obtaining the requested grant funds of $25,000,000, a local match will be required.  Staff is currently working with the Minnesota Department of Transportation and Anoka County to verify proposed funding sources and cost splits.  City match funds could come from the Public Improvement Revolving Fund, but any local cost share requests would require future Council approval.

Bolton and Menk, Inc. submitted a proposal to the City of Ramsey for preparing this application at an amount not-to-exceed $15,000.  A copy of the proposal is attached.
 
City staff submit the application on-line prior to the submittal deadline.

City staff recommends approving alternate #1 to ensure the City of Ramsey is positioned to complete the Ramsey Gateway improvements as soon as possible.

Motion to adopt Resolution #19-125 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $15,000 to prepare an application for funding in the maximum amount of $25,000,000 through the BUILD grant program for the proposed Ramsey Gateway improvements.