Agenda - Council - 09/14/2021 - Laserfiche WebLink

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$98,000 less than the full amount requested. If accepted, the funds will become available on July 1, 2022. Projects that are awarded funding must be let by June 30, 2023. A copy of the award notification letter is attached. Since LPP funds are only issued to the City at the time the project is substantially complete, the City must carry all project costs to be paid through LPP funds until the project is considered substantially complete and payment can be processed. Notification: Notifications are not required for this case. Observations/Alternatives: Observations: The extension of Riverdale Drive between Llama Street and Bowers Drive is needed to support future development in this area. Capstone Homes currently proposes to begin construction in 2022 on the first phase of Riverstone South, a 244-unit residential development east of Bowers Drive and south of U.S. Highway 10/169. Commercial development is also proposed in the area between U.S. Highway 10/169 and the proposed extension of Riverdale Drive, though the City has not received any commercial development proposals for this area at this time. These developers have preliminarily agreed to share in the costs to extend Riverdale Drive due to the benefit they will receive from the improvements. A preliminary cost share framework between the City and these two developers was approved by the City Council in January 2021, which included an estimated MnDOT grant funding component. Now that this amount is known, Staff revised the cost share framework and discussed it with these developers on September 8. Staff now intends to present the revised cost share framework to the Public Works Committee on September 23 and request a recommendation for City Council approval of the revised cost share framework on September 28, 2021. Upon Council adoption of Resolution #21-267, Staff will submit a copy of the executed resolution to MnDOT formally acknowledging the City's acceptance of the awarded grant funds. Alternatives: Alternative Action 1: Motion to adopt Resolution #21-267 accepting $612,000 in MnDOT grant funds through its State fiscal year 2023 Metro Local Partnership Program to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05. Alternative Action 2: Motion of other. Funding Source: As noted in the attached LPP grant application package, estimated construction costs for the proposed improvements is $2,749,000. Total project costs are estimated at $3,650,000. Bolton and Menk, Inc. prepared and submitted the LPP grant application at a not -to -exceed fee of $1,900, which is included in the indirect project costs and will be shared among the project funding partners. Final cost splits have yet to be approved by the funding partners, which includes the City and will therefore require future Council approval. Recommendation: Staff recommends adopting Resolution #21-267 accepting $612,000 in MnDOT grant funds through its State fiscal year 2023 Metro Local Partnership Program to fund a portion of the costs to extend Riverdale Drive between Llama Street and Bowers Drive, designated as Improvement Project #20-05. Action: