Agenda - Council - 05/23/2017 - Laserfiche WebLink

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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. Notification: Notifications are not required for this case. Observations/Alternatives: 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. Funding Source: 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. Recommendation: