Consider Advance Construction of Portions of the Mississippi River Trail

In 2009 and 2011, City Council authorized the application for Transportation Enhancement grant funding for constructing the Mississippi River Trail (MRT) across the city.  The 2009 grant application requested funds for constructing an easterly segment of the MRT connecting the City of Anoka’s MRT (on King’s Island) to the Mississippi West Regional Park.  Then the 2011 grant application requested funds for constructing the westerly segment from the Mississippi West Regional Park to city limits west of MnDOT’s Wayside Rest facility.  Both of these competitive grant applications for Federal funds were successful.
 
The eastern project from the City of Anoka to the Mississippi West Regional Park was awarded for construction and is scheduled to be completed in 2014.  The western segment of the MRT grant in Ramsey was awarded in 2011 in the amount of $1,120,000 for State fiscal year 2016, which runs from July 2015 through June 2016.  These Transportation Enhancement projects, administered by MnDOT to Federal construction standards, have a grant cycle with a 'call' for proposals each year, with the monies generally available 4 to 5 years from award.  This was the case with both of these two MRT projects.

While grant applications are written with the best information available at the time, conditions can change in the years between award and implementation.  The purpose of this case to highlight the favorable change in conditions, and receive Council approval to proceed with a plan to advance construct portions of the MRT, concurrent with certain roadway improvements in a manner that doesn't jeopardize the two reimbursement grants.
 

 In 2012, the City of Ramsey received approval to proceed with the easterly segment of the MRT, with westerly termini at the 'outfall trail' consistent with one of the alignments depicted within the original grant application (attachment 1).  Since then, a Cooperative Agreement project was approved for the reconstruction of Riverdale Drive from Armstrong Boulevard to the cul-de-sac east of  Alpaca Street.  This same project includes the extension of Riverdale Drive from the east end of the reconstruction project to Traprock Street.  The easterly MRT project will be timed such that when the extension of Riverdale Drive is complete, the trail will be paved immediately thereafter to the location of the outfall trail, meeting the terms of the grant award, and thus being eligible for reimbursement.

The Riverdale Drive Extension/Reconstruction project easily accommodates the MRT grant-funded project without concern for eligibility to receive reimbursement - as the required Project Memorandum had previously been approved authorizing the construction.  However, the westerly MRT project has not been approved for construction.  This presents a practical problem, as the city  would be in the position of inconveniencing residents and business owners for the Riverdale Drive reconstruction in 2014 - only to receive subsequent approval for the westerly MRT project, with more construction activity to occur in exactly the same right-of-way. Further, the city would pay for all the same traffic control signage and other similar redundant costs.

The other change in condition that occurred since the 2011 MRT award is significant progress on the Armstrong Interchange project. Similar to the above construction sequencing, the desire would be to construct a portion of the westerly MRT project with the interchange construction project to maximize efficiencies for all stakeholders.  However, because the MRT  grant is Federally funded, not only would the necessary early notification documents and Project Memorandum need to be completed in advance of the bid documents and bidding (with other approvals as well); all elements of the MRT project would need to meet Federal standards. It would therefore be more cost efficient for the city to pay for advance construction of the MRT with the interchange, than it would be to separately perform the work with grant monies after the interchange is constructed.  Plus, there would be the public appearance of project completion, only to witness traffic control signage coming down, then going back up at a later date, with the same grading, redundant mobilization, restoration, etc.

Given the above challenges relating to the MRT, Staff feels that it is best to proceed with advance construction of the MRT through both the Riverdale Drive Extension/Reconstruction and Armstrong Boulevard Interchange projects.  As implied, this would authorize the city to proceed with construction of these segments of the MRT using local funds initially, and understanding that the reimbursement would not occur until sometime during State fiscal year 2016. 
 
Staff met with MnDOT administrators of the Federal funds for the MRT project and believes that there is a possibility that the entire $1,120,000 may be retained for the westerly MRT project if advance construction is authorized as part of the required Project Memorandum. As noted earlier, the City would be required to advance fund the two segments of the MRT that are constructed in advance, but then be reimbursed from the awarded grant funds during State fiscal year 2016.

Another point may be made here, and that is that the Federal funds and processes for approvals are very stringent and if the city were to pave trail segments outside of explicit MnDOT approval, it may be cause for the scope of the grant award to be such that the $1.12 million dollar grant award would be completely rescinded.  At a minimum, absent an approved Project Memorandum, any trail paving performed before approvals would not be eligible for reimbursement.  Given that the Riverdale Drive Extension/Reconstruction project is proposed to be constructed in 2014, and likewise bids could be let for the Armstrong Boulevard Interchange in the fall of 2014, time is of the essence.

If Council authorizes staff to advance construct the two segments of the westerly MRT as proposed, the city will need to advance fund construction.  Estimated construction costs for these two segments totals $250,000.  However, staff anticipates that these costs will be reimbursed with awarded grant funds in SFY 2016 (July 1, 2015 to June 30, 2016).  Staff proposes using the Park Trust Fund to pay for the advance construction of the two trail segments.  Any funds recovered in SFY 2016 would then be deposited back into this account.

The estimated cost for Bolton-Menk to prepare the necessary early notification documents and Project Memorandum for the westerly MRT segment is $18,000.  Staff also proposes paying for this work from the Park Trust Fund.  This work is not reimbursable using awarded grant funds.
 
In an effort to limit project costs, staff will review our ability to complete all or portions of the project design, preparation of plans and specifications, and construction administration, staking, and inspections.

Staff recommends authorizing advance construction of the MRT segments through the Riverdale Drive reconstruction/Extension project in 2014, and through the Highway 10 & Armstrong Boulevard Interchange project in 2015. 

The remaining MRT segment west of the Armstrong Boulevard Interchange would then be constructed in 2016 as currently programmed.  This would result in each segment of the westerly MRT project being constructed in orderly progression from east to west which would meet user expectations, result in less disruption to the public due to concurrent construction, and also save the City money due to avoiding redundant costs that are typically incurred with separate projects.  Authorization would also be needed to prepare the necessary early notification documents and Project Memorandum for the west section of the MRT.  In this instance, Staff recommends using Bolton-Menk due to their familiarity with the MRT as they completed the Project Memo and design for the easterly project.
 

Motion to approve/deny proceeding with MnDOT authorization for advance construction of portions of the Mississippi River Trail, including authorization for Bolton-Menk to prepare the necessary early notification documents and Project Memorandum for the westerly section of the MRT.