Approve Tinklenberg Group Proposal for Additional Professional Services

Attached is a proposal by the Tinklenberg Group to continue to provide service to the City for the next three months in an effort to secure funding for the Highway 10/ Armstrong Interchange.   Part of this proposal includes the additional services important to secure comprehensive funding plan for the Armstrong Interchange project.  

The goal of the current effort is to see that the Armstrong Interchange is initiated as a Design/Build/Finance project this year - at least one full year sooner than currently proposed and eliminating one year's worth of inflationary and other cost increases, plus providing the City a year advance on the development benefits of the interchange.

The funding resources include city and county funds, federal grant funds, MnDOT TED or other grant funds, MnDOT special appropriations, County Transit Improvement Board funds, and state bonding funds.  The City has an interest in minimizing any additional local contributions.

Mr. Tinklenberg noted in his proposal that the total amount of dollars available from all the sources listed above is significantly greater than the estimated cost of the project; a fact which allows the project to absorb possible reductions in any of the funding categories.  Since these funding resources become available at a variety of times over the next two years, an alternative funding interim funding package could hasten the start of construction.

Staff recommends that the City extend its contract with The Tinklenberg Group for a period of three months (June through August 2013). The purpose for the extension as follows:  1)  to continue efforts with MnDOT regarding the benefits of using the gap financing tool and positioning Armstrong as a demonstration project; 2)  to persuade Anoka County to support the project by authorizing the County HRA to function as the bonding agency for the sale of the tax exempt bonds associated with the project; 3) to convince MnDOT, on the basis of the county's willingness to act as the bonding agency, to proceed with the Armstrong Interchange as a Design/Build/Finance project and to initiate it this year; 4) to maintain political pressure on the Governor and the project MnDOT Commissioner to do the project; and 5) to follow up with Klobuchar, Franken, Nolan and Waltz on federal grant funding support and on the use of the gap financing tool.

Alternatives include:

Authorizing a three month extension to The Tinklenberg Group contract for professional services to continue efforts to secure funding for the Armstrong interchange, or negotiate a lesser effort on behalf of the consultant at a lower rate.

Since this project has significant momentum, staff recommends continuation of the level of effort outlined in the proposal.  It will be a positive benefit to the City to have the consultant continue to monitor this effort at a high level.

OR

Not extending the contract and continuing to work on the Armstrong Interchange project as we are currently doing.  Staff would not recommend this option at this time as it would be a reduction of effort at a critical phase of this project.  This project is the City's number one transportation priority at this time.

Approve the three month extension to The Tinklenberg Group contract for professional services to continue efforts to secure funding for the Armstrong interchange as outlined in the proposal.