Adopt Resolution #21-304 Authorizing Assessment Agreement Preparation and Ordering Plans and Specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive

Purpose:
The purpose of this case is to adopt Resolution #21-304 authorizing Assessment Agreement preparation and ordering Plans and Specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive.

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

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.
 
The City has since accepted these funds via Resolution #21-267. Projects that are awarded funding must be let by June 30, 2023.

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. 
 
Because LPP grant funds are being utilized as source of funding these improvements, MnDOT will require a significantly more complex plan review process that will extend the anticipated plan approval schedule to the summer of 2022. This means these improvements may not be substantially complete until the fall of 2022.  However, this is a worse case scenario and Staff will work with MnDOT to streamline this schedule as much as possible.   
 
 

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. 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 cost share framework between the City and these two developers is being considered for approval earlier this evening by the City Council.  If Council approves of the cost share framework, an Assessment Agreement must be prepared to capture the costs from one or both developers. Staff proposes to prepare the Assessment Agreement with the assistance of the new City Attorney, and to bring the Assessment Agreement back for future Council approval, before bids are accepted and a contract for construction is awarded.
 
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 #1:
Motion to adopt Resolution #21-304 authorizing Assessment Agreement preparation and ordering Plans and Specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive.   
 
Alternative #2:
Motion of other.
 

Bolton and Menk, Inc. prepared and submitted the attached proposal for preparing plans and specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive, at a not-to-exceed fee of $89,024, which is included in the indirect project costs and will be shared among the project funding partners per the approved cost share framework.  

On October 19, 2021, the Public Works Committee discussed this and unanimously recommended City Council approval of the cost share framework and preparing an Assessment Agreement to capture the developer’s cost shares.
 
Staff recommends alternative #1.  

Adopt Resolution #21-304 authorizing Assessment Agreement preparation and ordering Plans and Specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive.