Adopt Resolution #17-05-120 Authorizing Municipal Agreement Program Funding Application for Highway 10 North Frontage Road Improvements - Ramsey Boulevard to Sunfish Lake Boulevard

Purpose:
The purpose of this case is to adopt a resolution authorizing City staff to submit a funding application for up to $710,000 from the Minnesota Department of Transportation (MnDOT) Metro Municipal Agreement Program.  These funds would fund a portion of the costs to construct frontage road improvements north of U.S. Highway 10 and to realign westbound U.S. Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard.

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 (APS).  This Study includes an Implementation Plan that identifies 21 proposed improvement projects along the Highway 10 corridor through Anoka and Ramsey that have been prioritized as immediate, short-term, mid-term, or opportunity/development/safety driven projects.
 
The proposed frontage road improvements north of U.S. Highway 10, including the realignment of westbound U.S. Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard, is prioritized as an immediate need in the Highway 10 Access Planning Study. Attached are two pages from the Study including the proposed improvements layout and implementation plan.

On October 28th, 2014, the 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.

This improvement project removes twenty (20) private accesses on Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard, resulting in safety, congestion and mobility improvements for traffic on US Highway 10.  This improvement project also supports the proper sequencing for other proposed improvements along Highway 10 that are identified in the Highway 10 Access Planning Study, including improvements to the intersections of U.S. Highway 10 & Ramsey Boulevard, and U.S. Highway 10 & Sunfish lake Boulevard.
 
These improvements provide a critical local system connection along the north side of Highway 10.  These improvements are acceptable to most adjacent businesses since they are needed to support other improvements along Highway 10.
 
City staff is requesting City Council authorization to submit an application for up to $710,000 in grant funding from the MnDOT Metro Municipal Agreement Program for the proposed improvements.  Applications are due June 7th, 2017.  Attached is a copy of the MnDOT Metro Municipal Agreement Program project solicitation letter.

Notifications are not required for this case.

Observations:
This is the first external funding application proposed for this project.  Typically, external funding requests are most successful after other funds have been secured to augment requested funds. The likelihood of MMA funds being awarded for this project are therefore small, but by applying for MMA funds now we will be better positioning next year’s application for success.  In the meantime, staff will continue to research and apply for other external funding for the proposed improvements.
 
This is the same program the City received funding from to help extend Riverdale Drive, not once but twice.  This proposed project should also rank very high.
 
Alternatives:
Alternative #1 - Adopt Resolution #17-05-120 authorizing City staff to submit a grant fund application for the maximum amount of $710,000 from the MnDOT Metro Municipal Agreement Program to construct frontage road improvements north of U.S. Highway 10 and to realign westbound U.S. Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard.
 
Staff supports this alternative.

Alternative #2 - Deny adoption of Resolution #17-05-120 at this time.
 
Staff does not support this alternative.

The City’s 2017 - 2026 Capital Improvement Program identifies estimated project costs for these improvements to be $12,900,000 based on 2019 construction costs.  These improvements should be eligible for grant funding up to $710,000 through the MnDOT Metro Municipal Agreement Program since the improvements provide a clear benefit to the Trunk Highway system, in addition to the local community.
 
Other applicable funding sources identified in the Highway 10 Access Planning Study include the Right-of-way Acquisition Loan Fund (RALF), Municipal State Aid System (MSAS) funds, Trunk Highway (TH) funds, and Corridor Investment Management (CIMS) funds.  Local Road Improvement Program (LRIP) funds were not identified in the Study but may be eligible.  Staff will continue to research and pursue all available external funding opportunities.
 
Local match funds will be required if the City is successful in obtaining the requested grant funding.  Local match funds can be applied to engineering and construction costs, as well as right-of-way acquisition costs.  The minimum amount of required local match funds is estimated to be about $1,200,000 based on funding award requirements of other available funding programs.  If awarded, the MMA funds could be applied to the City’s local cost share, leaving roughly another $490,000 in local match costs, which could be pulled from the Public Improvement Revolving Fund.  Local match costs will be better defined as staff continues to apply for other external funding.  It is important to note that all local cost share requests will require future Council approvals.
 
City staff will complete as much of the application as possible in-house but the services of Bolton & Menk may be required to assist in the preparation of application materials.  Such assistance is estimated to cost less than $2,500.

City staff recommends adopting Resolution #17-05-120 authorizing City staff to submit an application for $710,000 in grant funding from the MnDOT Metro Municipal Agreement Program to construct frontage road improvements north of U.S. Highway 10 and to realign westbound U.S. Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard.

Adopt Resolution #17-05-120 authorizing City staff to submit a grant fund application for the maximum amount of $710,000 from the MnDOT Metro Municipal Agreement Program to construct frontage road improvements north of U.S. Highway 10 and to realign westbound U.S. Highway 10 between Ramsey Boulevard and Sunfish Lake Boulevard.