Purpose:
The purpose of this case is to adopt Resolution 14-08-171 approving Agency Agreement No. 06607, which is attached to this case.
 
Upon executing this agreement, the City will be authorized to advance construct the portion of the Mississippi River Trail (MRT) along the south side of Riverdale Drive between Traprock Street and Armstrong Boulevard this fall.  This portion of the MRT was originally proposed to be constructed in State Fiscal Year (SFY) 2016 (July 1, 2015 to June 30, 2016) using Federal grant funds so the use of local funds will be required until Federal funds are released in SFY 2016.

Background:
On March 25th, 2014, Council approved proceeding with advance construction of portions of the MRT by authorizing the use of up to $18,000 from the Park Trust Fund for Bolton & Menk to prepare the necessary Project Memorandum (PM).  Since then, the PM was prepared, MnDOT's Federal Aid office approved the PM, and the grant funding has been secured.
 
On June 24th, 2014, Council approved using up to $62,676 from the Park Trust Fund to allow Bolton & Menk to complete the necessary engineering work for preparing construction plans and specifications and bidding the portion of the MRT along Riverdale Drive from Armstrong Boulevard, east to the 'outfall trail' where the MRT project currently under construction terminates.  Bolton & Menk has since completed plans and specifications and bids are currently being advertised for constructing this portion of the MRT this fall.  Bids are scheduled to be opened at 10 am on Tuesday, September 16^th, and Council will be asked to accept the bids and award a construction contract on Tuesday, September 23^rd, 2014.

Observations:
There will be benefits associated with proceeding with advance construction of this portion of the MRT through the Riverdale Drive Reconstruction/Extension project in 2014, as well as the portion of the MRT through the Highway 10 & Armstrong Boulevard Interchange project in 2015.  First, advance construction will allow each segment of the MRT to be constructed in orderly progression from east to west, meeting user expectations and resulting in less disruption to the public due to concurrent construction activities.  Second, there will be cost savings due to avoiding redundant costs typically incurred when completing separate projects.
 
Phase 2 of the MRT located west of the Armstrong Boulevard Interchange through the Wayside Rest Area, will be constructed in SFY 2016 as currently programmed.

Alternatives:
Alternative Actions:

1. Motion to adopt Resolution 14-08-171 approving Agency Agreement No.06607 for advance construction of Mississippi River Trail Phase 1, SP 199-090-001.
2. Motion denying adoption of Resolution 14-08-171 at this time.  If this alternative is selected, the portion of the MRT along the Riverdale Drive Extension/Reconstruction project would likely be constructed at the same time as the portion within the Armstrong Boulevard Interchange project in 2015 or 2016, depending on future Council action.

Construction costs for this portion of the MRT are estimated at $220,000. Staff anticipates that 80% of these costs will be reimbursed with awarded grant funds in SFY 2016. Staff proposes using the Park Trust Fund to pay for advance constructing portions of the MRT.  Any funds recovered in SFY 2016 would then be deposited back into this account.

The not-to-exceed engineering cost for Bolton & Menk to complete all necessary engineering work for this portion of the MRT, which is not reimbursable using awarded grant funds, is $80,676.  As noted earlier, Council approved the use of up to $18,000 on March 25^th, and up to $62,676 on June 24^th, from the Park Trust Fund for the engineering work.

In an effort to limit project costs, staff will continue to look for opportunities to complete portions of the construction administration, staking, and inspections in-house.