DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Accept Local Road Improvement Program Grant Funding Assistance And Demonstration Of Full Funding For 117th Street Reconstruction Of County State Aid Highway 32, County Project 32-65
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PURPOSE/ACTION REQUESTED
Authorize the acceptance of State of Minnesota (State) bonding dollars, which will be administered by the Minnesota Department of Transportation (MNDOT) for costs associated with the adopted 2024-2028 Capital Improvement Program (CIP) budget for County State Aid Highway (CSAH) 32 (117th Street East) at Trunk Highway (TH) 52/117th Street Interchange, County Project (CP) 32-65 (City Project No. 2016-17; State Project [SP] 019-632- 051, SP 178-020-032, SP 019-671-007, and SP 1907-127) (Attachment: Location Map).
SUMMARY
To provide a safe and efficient transportation system, the City of Inver Grove Heights, in cooperation with Dakota County, is proceeding with CP 32-65. The project will reconstruct 117th Street East from CSAH 71 (Rich Valley Boulevard) to the TH 52/117th Street Interchange. The project is a part of the larger CSAH 32 network in Dakota County, which connects Interstate 35W in Burnsville to TH 52 in Inver Grove Heights. The corridor serves a high volume of freight traffic. The purpose of the project is to meet 10-ton design standards, enhance transportation system efficiency and mobility, reduce access points, improve pavement conditions, and facilitate the phased development of an essential east-west transportation corridor within the region.
Minnesota Management and Budget (MMB) requires documentation of the total project cost (total capital costs) and identification of the source and status of all funding. If additional financing is needed to complete a project beyond the amount of the state appropriation plus matching requirements specified in the appropriation bill, the grantee must demonstrate that all funding is in place to complete the project. This is the "full funding requirement" addressed in Minn. Stat. §§ 16A.502 and 16A.695, subd. 6.
Given that the project's cost estimate exceeds the initial projection, the County and City must demonstrate their capability to cover the additional amount. Additional financing is required to successfully complete CP 32-65 beyond the amount allocated in the 2024 CIP. As the lead agency, the County must demonstrate that it has all the necessary financing to bring the project to fruition, as stipulated in Minn. Stat. §§ 16A.502 and 16A.695, subd. 6. This commitment must be in place before the grant can be available. The County must also authorize the acceptance of State bonding dollars for the project and ensure all necessary documentation and approvals are obtained.
RECOMMENDATION
recommendation
Staff recommends that the Dakota County Board of Commissioners authorize the Physical Development Director to accept the State bonding grant funding and ensure all necessary documentation and approvals are obtained according to the state requirements for CP 32-65.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2024 Transportation CIP includes a total of $23,460,000 for the project. A future budget amendment will be necessary at the time of bidding.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, to provide a safe and efficient transportation system, the County and the City are proceeding with County Project 32-65 (City Project 2016-17; State Project [SP] 019-632- 051, SP 178-020-032, SP 019-671-007, and SP 1907-127); and
WHEREAS, the project will reconstruct 117th Street East from County State Aid Highway (CSAH) 71 (Rich Valley Boulevard) to the Trunk Highway (TH) 52/117th Street Interchange; and
WHEREAS, the purpose of the project is to meet 10-ton design standards, enhance transportation system efficiency and mobility, reduce access points, improve pavement conditions, and facilitate the phased development of an essential east-west transportation corridor within the region; and
WHEREAS, under the provisions contained in Minnesota Laws of 2023, Chapter 72, Article 1, Section 16, Subdivision 13, the State of Minnesota appropriated $5,000,000 in General Obligation bonds for a grant to the City of Inver Grove Heights (City) or Dakota County (County) "to perform final design, acquire right-of-way, acquire easements, and reconstruct 117th Street from Rich Valley Boulevard (Dakota County Road 71), including intersection improvements thereto in both directions up to 1,500 feet, to approximately 800 feet east of U.S. Highway 52 to improve safety, mobility, and traffic conditions. This appropriation includes the cost for relocation and construction of public utilities on 117th Street, including sanitary sewer, water main, and storm sewer facilities"; and
WHEREAS, the adopted 2024-2028 Capital Improvement Program budget for County Project 32-65 includes $1,678,410 from Transportation Advancement Account and $8 ,047,590 from Transportation Sales Tax; and
WHEREAS, the County has the legal authority to apply for financial assistance and the institutional, administrative, and managerial capability to ensure adequate acquisition, construction, maintenance, and protection of the proposed project; and
WHEREAS, the County has not incurred any reimbursable expenses prior to the effective date of the session law providing the state appropriation; and
WHEREAS, the County has not violated any Federal, State, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest, or other unlawful or corrupt practice; and
WHEREAS, upon approval of its application by the state, the County may enter into an agreement with the State of Minnesota for the above referenced project and certifies that it will comply with all applicable laws and regulations as stated in the contract agreement.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners, in cooperation with the City of Inver Grove Heights, hereby pledges to complete the project if it exceeds the total funding provided by the proposed $5,000,000 grant from the Minnesota Department of Transportation; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby approves the financial capability to provide any required matching funds and that for the purposes of financing the 117th Street Reconstruction project, the source of County’s matching funds in the amount of $2,700,000 shall be from the Dakota County Transportation Sales Tax Special Revenue Fund and will not include other State funding sources; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Dakota County Physical Development Director to execute such grant agreements as are necessary to implement the project on behalf of the County.
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PREVIOUS BOARD ACTION
12-365 7/31/12
23-075; 2/28/23
ATTACHMENTS
Attachment: Location Map
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: John Sass