Adopt Resolution #20-308 Authorizing Local Road Improvement 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 #20-308 authorizing a Local Road Improvement Program (LRIP) grant application up to the maximum amount of $1,125,000 to fund a portion of eligible construction costs to extend Riverdale Drive between Llama Street and Bowers Drive, and authorizing Staff to retain Bolton and Menk, Inc. in an amount not-to-exceed $3,600 to prepare and submit the LRIP grant application.  

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.

Two new developments are now proposed in the area generally east of Bowers Drive and south of U.S. Highway 10/169. Capstone Homes proposes to begin construction in 2021 on a new residential development called Riverstone South. A new commercial development is also being proposed in the same area, though the construction schedule of this development is currently unknown. Both developments require Riverdale Drive to be extended between Llama Street and Bowers Drive to provide a safe access route with sufficient capacity to serve the new developments.  This extension of Riverdale Drive will also serve the existing residential properties along Bowers Drive.
 
Both developers preliminarily agreed to share in the improvement costs as outlined in attached Resolution #20-065, approved March 24, 2020. As shown, the preliminary funding program included $710,000 in Minnesota Department of Transportation (MnDOT) grant funds. On June 6, 2020, Council adopted attached Resolution #20-125 authorizing a Local Partnership Program (LPP) grant application in the maximum allowable amount of $710,000 to fund this portion of the project costs. The application was submitted but the project was not awarded any of the requested LPP grant funds.
 
On December 2, 2020, Staff received a solicitation for another MnDOT grant program that this project is eligible to receive grant funding from, which is the Local Road Improvement Program (LRIP). This program provides funding for cities to construct, reconstruct or recondition local city streets that have statewide or regional significance. LRIP has a maximum award amount of $1,125,000 to fund capital construction costs for eligible projects but not for engineering, right of way, or other non-construction related costs.
 
The proposed Riverdale Drive improvement project meets the following nine required criteria and is therefore eligible to be selected for LRIP funding.

1. Eligibility. The project must be a local road construction, reconstruction, or reconditioning project under one of the three accounts established in the LRIP.
2. Operations and Safety. Address a transportation deficiency and/or improve safety on local roads.
3. Regionally Significant. Demonstrate the regional significance of the route by being classified as a minor collector or higher unless it meets one of the following criteria; a) identified in a regional plan as a farm-market artery, b) part of a 10-ton route system, c) part of an economic development plan, d) serves as a regional tourist destination, e) provides capacity or congestion relief to a parallel trunk highway or county road, and f) is a connection to the regional system, trunk highway, or a county road.
4. Be supported by council and other local agencies impacted by the project.
5. Consider availability of other funding sources.
6. Be non-controversial. Projects should have minimum problems or issues that could delay the letting and construction such as right of way acquisition, railroad, and historical impacts.
7. Expected useful life. Include permanent elements of the roadway corridor and have a minimum expected life of the project of 10 years.
8. High Impact. Provide letters of support from other local agencies or public/private parties impacted by the improvement.
9. Projects would be anticipated for construction letting in years 2021 – 2023.

 
A copy of the solicitation letter for the LRIP grant is attached and includes more detailed information.
 
The tentative LRIP grant award schedule is as follows;

• October 21, 2020 - Governor signed bonding bill into law
• November 18, 2020 - LRIP Advisory Committee meeting #1 conducted
• December 2, 2020 - Released LRIP solicitation
• March 3, 2021 - Applications due
• Late April, 2021- LRIP Advisory Committee meeting #2 to award project funding
• May, 2021 - Announce project awards

Letters of support will be requested from MnDOT and Anoka County for submittal with the application package.  

Notifications are not required for this case.  

Observations:
Trunk utility construction will also be needed to serve the new developments since they are within the Municipal Urban Services Area (MUSA). These trunk utilities are proposed to be constructed as part of the Riverdale Drive Improvements and will be paid for using Sewer and Water Funds. Both developers will be required to contribute to the cost of these trunk utilities at the time of development through trunk utility fees, which will require future Council approval. 

Alternatives:
Adopt Resolution #20-308 authorizing a Local Road Improvement Program (LRIP) grant application up to the maximum amount of $1,125,000 to fund a portion of eligible construction costs to extend Riverdale Drive between Llama Street and Bowers Drive, and authorizing Staff to retain Bolton and Menk, Inc. in an amount not-to-exceed $3,600 to prepare and submit the LRIP grant application.   

The previous LPP grant application prepared by Bolton & Menk, Inc. for the proposed improvements included estimated construction costs of $2.722 million and estimated project costs of $3,618,000. Eligible roadway, trail and storm sewer construction costs were estimated at $1,675,000. Staff therefore anticipates requesting the maximum grant amount of $1,125,000 since LRIP funds may be requested for the full construction cost of a project, up the maximum amount. While LRIP funding does not require a local match, as noted above the application must consider the availability of other funding sources.

Bolton and Menk, Inc. previously prepared and submitted the LPP grant application at a not-to-exceed fee of $9,500. Many of the materials produced by Bolton & Menk to prepare the LPP application can be used in the LRIP grant application package so the attached proposal includes a not-to-exceed fee of $3,600. Grant application costs are included in the indirect project costs and can 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 future Council approval.
 
If awarded, LRIP grant funds will be issued to the City to reimburse construction costs as work tasks are completed. The City would therefore need to pay construction costs as work is completed and the contractor requests payment per the terms of the contract, which is typically monthly, then the City can request reimbursement from MnDOT for all costs associated with completed work.  

Staff recommends adopting Resolution #20-308 authorizing a Local Road Improvement Program (LRIP) grant application up to the maximum amount of $1,125,000 to fund a portion of eligible construction costs to extend Riverdale Drive between Llama Street and Bowers Drive, and authorizing Staff to retain Bolton and Menk, Inc. in an amount not-to-exceed $3,600 to prepare and submit the LRIP grant application.  

Adopt Resolution #20-308 authorizing a Local Road Improvement Program (LRIP) grant application up to the maximum amount of $1,125,000 to fund a portion of eligible construction costs to extend Riverdale Drive between Llama Street and Bowers Drive, and authorizing Staff to retain Bolton and Menk, Inc. in an amount not-to-exceed $3,600 to prepare and submit the LRIP grant application.