Adopt Resolution #21-267 Accepting Local Partnership Program Funding for Riverdale Drive Extension - Llama Street to Bowers Drive, Improvement Project #20-05

Purpose:
The purpose of this case is to adopt Resolution #21-267 accepting $612,000 in awarded grant funds from the Minnesota Department of Transportation (MnDOT) through its State fiscal year 2023 Metro Local Partnership Program (LPP), which will be used to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, 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, supporting future development in the immediate area. A copy of the Highway 10 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 proposed improvements, though it is important to note that the alignment of portions of Riverdale Drive and/or Bowers Drive may be revised during final design.

City Council authorized Staff to apply for up to $710,000 in state fiscal year 2023 grant funds through MnDOT’s Local Partnership Program (LPP) per attached Resolution #21-149. The purpose of this 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 2023 LPP grant program, which includes more detailed information about the program, is attached to this case.
 
On September 3rd MnDOT notified City Staff that the City was awarded $612,000 in LPP grant funding, which is $98,000 less than the full amount requested. If accepted, the funds will become available on July 1, 2022. Projects that are awarded funding must be let by June 30, 2023. A copy of the award notification letter is attached.

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.   

Notifications are not required for this case.  

Observations:
The extension of Riverdale Drive between Llama Street and Bowers Drive is needed to support future development in this area. Capstone Homes currently proposes to begin construction in 2022 on the first phase of Riverstone South, a 244-unit residential development east of Bowers Drive and south of U.S. Highway 10/169.  Commercial development is also proposed in the area between U.S. Highway 10/169 and the proposed extension of Riverdale Drive, though the City has not received any commercial development proposals for this area at this time. 

These developers have preliminarily agreed to share in the costs to extend Riverdale Drive due to the benefit they will receive from the improvements. A preliminary cost share framework between the City and these two developers was approved by the City Council in January 2021, which included an estimated MnDOT grant funding component. Now that this amount is known, Staff revised the cost share framework and discussed it with these developers on September 8. Staff now intends to present the revised cost share framework to the Public Works Committee on September 23 and request a recommendation for City Council approval of the revised cost share framework on September 28, 2021.   
 
Upon Council adoption of Resolution #21-267, Staff will submit a copy of the executed resolution to MnDOT formally acknowledging the City’s acceptance of the awarded grant funds.  

Alternatives:
Alternative Action 1:
Motion to adopt Resolution #21-267 accepting $612,000 in MnDOT grant funds through its State fiscal year 2023 Metro Local Partnership Program to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05.  
 
Alternative Action 2:
Motion of other.  

As noted in the attached LPP grant application package, estimated construction costs for the proposed improvements is $2,749,000. Total project costs are estimated at $3,650,000.

Bolton and Menk, Inc. prepared and submitted the LPP grant application at a not-to-exceed fee of $1,900, 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 future Council approval.  

Staff recommends adopting Resolution #21-267 accepting $612,000 in MnDOT grant funds through its State fiscal year 2023 Metro Local Partnership Program to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05.  

Adopt Resolution #21-267 accepting $612,000 in MnDOT grant funds through its State fiscal year 2023 Metro Local Partnership Program to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05.