Agenda - Council - 10/26/2021 - Laserfiche WebLink

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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. Because LPP grant funds are being utilized as source of funding these improvements, MnDOT will require a significantly more complex plan review process that will extend the anticipated plan approval schedule to the summer of 2022. This means these improvements may not be substantially complete until the fall of 2022. However, this is a worse case scenario and Staff will work with MnDOT to streamline this schedule as much as possible. Notification: Notifications are not required for this case. Time Frame/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. 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 cost share framework between the City and these two developers is being considered for approval earlier this evening by the City Council. If Council approves of the cost share framework, an Assessment Agreement must be prepared to capture the costs from one or both developers. Staff proposes to prepare the Assessment Agreement with the assistance of the new City Attorney, and to bring the Assessment Agreement back for future Council approval, before bids are accepted and a contract for construction is awarded. 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 #1: Motion to adopt Resolution #21-304 authorizing Assessment Agreement preparation and ordering Plans and Specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive. Alternative #2: Motion of other. Funding Source: Bolton and Menk, Inc. prepared and submitted the attached proposal for preparing plans and specifications for Improvement Project #20-05, Riverdale Drive Extension, Llama Street to Bowers Drive, at a not -to -exceed fee of $89,024, which is included in the indirect project costs and will be shared among the project funding partners per the approved cost share framework. Recommendation: On October 19, 2021, the Public Works Committee discussed this and unanimously recommended City Council approval of the cost share framework and preparing an Assessment Agreement to capture the developer's cost shares. Staff recommends alternative #1.