Adopt Resolution #20-125 Authorizing Local Partnership Program Grant Application for Riverdale Drive Extension - Llama Street to Bowers Drive, Improvement Project #20-05.

Purpose:
The purpose of this case is to adopt Resolution #20-125 authorizing a Local Partnership Program (LPP) grant application for the maximum allowable amount of $710,000 to fund a portion of the costs to extend Riverdale Drive west from Llama Street to Bowers Drive, which has been designated as Improvement Project #20-05. 

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.
 
Included in the Highway 10 Access Planning Study implementation plan is project #1-1-5, which calls for Riverdale Drive to be extended between Llama Street and Bowers Drive, south of U.S. Highway 10/169, to support future development in the immediate area. A copy of the Highway10 Access Planning Study implementation plan is included in the application attached to this case.  The application also includes a figure showing the general scope of the improvements as currently proposed, though it is important to note that the alignment of Riverdale Drive and/or Bowers Drive can be revised during final design.
 
A new residential development located east of Bowers Drive and south of U.S. Highway 10/169 is proposed for construction in 2021.  Also, a new commercial development is being proposed in the same area.  These developments will require Riverdale Drive to be extended between Llama Street and Bowers Drive.  The developers therefore preliminarily agreed to share in these improvement costs as shown in attached Resolution #20-065.

Grant funding in an amount up to $710,000 is currently available through the Minnesota Department of Transportation (MnDOT) Local Partnership Program (LPP) for MnDOT fiscal year 2022.  The purpose of the MnDOT LPP grant program is to provide funds to assist local agencies in addressing problems on the Trunk Highway system that are of concern to local agencies but are typically not large-scale or critical enough that they are directly selected as projects in the regular MnDOT Road Program. Selected projects must:

• Provide a clear benefit to the Trunk Highway system as well as to the local community
• Be developed and administered by the local agency
• Have preliminary design, final design, right-of-way and utility relocation costs (as appropriate) paid for by the Local Agency
• Be designed to MnDOT Trunk Highway standards

 
A copy of the solicitation letter for the MnDOT fiscal year 2022 LPP grant program, which includes more detailed information, is attached to this case.  As noted in the letter, local agencies will be notified whether they were awarded the requested LPP funds in late August or early September, 2020.  Funds for selected projects will become available July 1, 2021. Projects that are awarded funding must be let by June 30, 2022.
 
Since LPP funds are only issued to the City at the time the project is substantially complete, the City must carry all project costs to be paid through LPP funds until the project is considered substantially complete and payment can be processed. 

The total project costs are estimated at $3,618,000, with the roadway, trail and storm sewer construction costs estimated at $1,675,000. The City is requesting $710,000 of the $1,675,000 in eligible construction costs.

Notifications are not required for this case. 

Observations:
Applications for funding under the 2022 Local Partnership Program solicitation were due June 3, 2020.  In order to meet this deadline Staff was not able to discuss details of this application with either the Public Works Committee or the City Council in advance.  Staff is therefore requesting authorization to apply for the LPP funds after-the-fact. 
 
Alternatives:
Adopt Resolution #20-125 authorizing a Local Partnership Program (LPP) grant application for the maximum allowable amount of $710,000 to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05. 

As noted in the attached LPP grant application package, the estimated construction costs for the proposed improvements is $2.722 million. 

Bolton and Menk, Inc. prepared and submitted the LPP grant application at a not-to-exceed fee of $9,500, which is included in the indirect project costs and will be shared among the project funding partners.  Final cost splits have yet to be approved by the funding partners, which includes the City and will therefore require Council approval.  The preliminary cost share framework is included in attached Resolution #20-065. 

City staff recommends adopting Resolution #20-125 authorizing a Local Partnership Program (LPP) grant application for the maximum allowable amount of $710,000 to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, and to designate the improvements as Improvement Project #20-05.  

Adopt Resolution #20-125 authorizing a Local Partnership Program (LPP) grant application for the maximum allowable amount of $710,000 to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05.