Agenda - Council Work Session - 01/17/2012

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Parks to discuss this potential project, impacts to their respective properties, and their long term plans and utility needs. Based upon Council direction and the outcome of these property owner meetings, staff can then develop a project that meets the needs of all. Outlined in this case and attachments are several alternatives for consideration; including: 1. Accepting the MnDOT grant and completing the roadway extension only. Under this scenario we would have to directly acquire the needed right -of -way, which has been estimated at $150,000 using Anoka County assessed values. 2. Accepting the MnDOT grant and acquiring the necessary right -of -way in exchange for utility extensions. The watermain component is fairly straight forward and includes an extension from the intersection of Armstrong Boulevard and Riverdale Street to Traprock Street, which would then be further extended and looped back into the system with a subsequent project extending the frontage road to Ramsey Boulevard. The sanitary sewer component could be accomplished in a couple of different ways; either a gravity extension to the western boundary of the Hope Fellowship property, or a force main system extended to a location on the Hope Fellowship or County Park property that would give us the greatest flexibility for use in the future. 3 Turning down the MnDOT grant and completing the frontage road extension with the interchange project. Recommendation: Staff is seeking Council direction on whether or not to accept the MnDOT cooperative agreement, and how we should go about acquiring the right -of -way necessary to complete the project. Staff believes the gravity sewer extension would be the best course of action at this time because it accomplishes several key items: 1. Utility extension to secure the needed right -of -way for the frontage road extension 2. Completely rebuilt Riverdale Drive from Armstrong to Traprock 3. Ability for the existing properties along Riverdale Drive to immediately connect to the sanitary sewer 4. Flexibility in the use of the sanitary sewer, which can be realized as development occurs in the area to the east Funding Source: In order to accept this MnDOT cooperative agreement the City would need to commit all remaining funds to complete the project, estimated at $866,000. Right -of -way acquisition is estimated at $150,000, which could potentially be eliminated if the City can reach agreements with the impacted property owners for dedication in exchange for improvements. The segment of Riverdale Drive, from Armstrong Boulevard to Alpaca Street, is currently shown in the street inventory as needing an overlay in 2012. If Council should decide to extend utilities in exchange for right -of -way dedication, we could forego this improvement until 2013 and include assessments and the utility enterprise funds as possible funding options as well. Depending on the outcome of City reconstruction initiative, funding under that program could also be used for a portion of this project. Riverdale Drive is contained within the City's municipal state aid (MSA) system, so funding from that source is also an option. Staff has also identified another MnDOT program that could fund a portion of this project, the Local Road Improvement Program (LRIP). A resolution of support for this program was approved by the City Council on January 10, 2012, and staff will be submitted an application seeking $500,000 from this program by the February 3, 2012 deadline. A couple of funding scenarios are attached for you review and consideration. An additional consideration could be to utilize the Economic Development Authority due to the potential benefit to both existing businesses as well as future growth within the COR. Council Action: Based upon discussion. Attachments