DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Amendment Of Resolution No. 26-279 And 2026 Transportation Capital Improvement Program Budget And Authorization To Accept State Active Transportation Program Grant And Execute Grant Agreement For County Projects 28-69 And 56-14
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RESOLUTION
body
WHEREAS, Dakota County is implementing multimodal improvements along County State Aid Highway (CSAH) 28 (80th Street), County Project (CP) 28-69, and CSAH 56 (Concord Boulevard), County Project (CP) 56-14, under State Project (SP) 019-090-027; and
WHEREAS, by Resolution No. 23-066 (February 7, 2023), the Dakota County Board of Commissioners authorized staff to apply for Rebuilding American Infrastructure with Sustainability and Equity (RAISE) federal discretionary grant funding; and
WHEREAS, by Resolution No. 23-485 (October 24, 2023), the Dakota County Board of Commissioners accepted RAISE grant funding and advanced projects within the Mississippi River Greenway initiative; and
WHEREAS, by Resolution No. 26-279 (June 23, 2026), the Dakota County Board of Commissioners approved execution of the construction contract for State Project 019-090-027 and amended the 2026 Transportation Capital Improvement Program Budget by $2,219,808 to fully fund project construction, contingency, and soft costs; and
WHEREAS, Dakota County has applied to the Commissioner of Transportation for a grant from the Active Transportation Account; and
WHEREAS, the Commissioner Transportation has given notice that funding for this project is available; and
WHEREAS, the amount of the grant has been determined to be $500,000 by reason of the lowest responsible bid;
WHEREAS, the Minnesota Department of Transportation’s (MnDOT) Final Funding Participation Distribution dated August 17, 2026, confirms that federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE), Congressional Directed Spending (CDS), National Park Service Alternative Transportation Program (NPS ATP), and State Active Transportation (AT) funds may not exceed 80% of federally eligible construction costs, and therefore requires a redistribution of federal and County State Aid Highway (CSAH) funds between CP 28-69 and CP 56-14; and
WHEREAS, Dakota County has applied to the Commissioner of Transportation for a grant from the State Active Transportation Account, the Commissioner has given notice that funding is available, and the amount of the grant has been determined to be $500,000 by reason of the lowest responsive and responsible bid.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby amends Resolution No. 26-279 and amends the 2026 Transportation Capital Improvement Program Budget for County Project 28-69 and County Project 56-14 as follows:
Expense (Project Totals) - Amended Total Expense
CP 28-69: $0
CP 56-14: $0
Total Expense: $0
Revenue - CP 28-69 (Project 2000273)
RAISE Grant: ($348,523)
CSAH (2026): $348,523
Total CP 28-69 Revenue: $0
Revenue - CP 56-14 (Project 1001580)
RAISE Grant: $348,523
CSAH (2026): ($348,523)
Total CP 56-14 Revenue: $0
; and
BE IT FURTHER RESOLVED, that Dakota County does hereby agree to the terms and conditions of the grant consistent with Minnesota Statutes, section 174.38, and will pay any additional amount by which the cost exceeds the estimate, and will return to the Active Transportation Account any amount appropriated for the project but not required ; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby accepts the $500,000 State Active Transportation Program grant and authorizes the County Manager, or delegate, to execute the State Active Transportation Program Grant Agreement, any amendments, and any related federal or state grant documents associated with State Project 019-090-027, subject to approval by the County Attorney’s Office as to form.
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BACKGROUND
On February 7, 2023, the County Board approved Resolution No. 23-066, authorizing staff to apply for Rebuilding American Infrastructure with Sustainability and Equity (RAISE) federal discretionary grant funding. On October 24, 2023, the County Board approved Resolution No. 23-485, accepting RAISE grant funding and advancing the Mississippi River Greenway initiative. On June 23, 2026, the County Board approved Resolution No. 26-279, executing the construction contract for State Project 019-090-027 and amending the 2026 Transportation Capital Improvement Program Budget by $2,219,808.
A 2026 Transportation Capital Improvement Program (CIP) amendment was adopted to distribute RAISE, Congressional Directed Spending (CDS), National Park Service Alternative Transportation Program (NPS ATP), and State Active Transportation (AT) funding across CP 28-69 and CP 56-14. After project bidding, the Minnesota Department of Transportation issued its Final Funding Participation Distribution on August 17, 2026, confirming that federal transportation funds-including RAISE, CDS, and STBG-may not exceed 80% of federally eligible construction costs. MnDOT also determined that other awarded federal or state grant funds cannot be used as the local match as originally planned. As a result, federal and County State Aid Highway (CSAH) funding must be redistributed between CP 28-69 and CP 56-14 to comply with federal match requirements and grant agreement rules.
This action also amends Resolution No. 26-279 to update the funding sources and federal match structure consistent with MnDOT’s Final Funding Participation Distribution dated August 17, 2026.
No additional County local funds are required beyond the $348,523 CSAH reallocation between the two projects.
MnDOT’s Final Funding Participation Distribution also establishes the basis for the $348,523 redistribution reflected in this RBA. MnDOT determined that federal funds for CP 28-69 may not exceed eighty percent of the project’s federally eligible construction cost of $1,742,614. This limits RAISE participation on CP 28-69 to $1,394,091 and requires a local twenty-percent match of $348,523, which must be provided through CSAH. Because MnDOT did not allow Dakota County to use CP 56-14 as the federal match source for CP 28-69, the County must reassign $348,523 between RAISE and CSAH on both projects to comply with federal match rules. This correction is to finalize MnDOT’s funding participation and to execute the State Active Transportation grant agreement for State Project 019-090-027 without delaying project delivery.
The updated amendment maintains the previously approved project totals while correcting the distribution of federal, state, and local funds to align with MnDOT’s verified participation limits and eligibility requirements. Execution of the State AT Program Grant Agreement is also required to make AT funds available to Dakota County under Minn. Stat. §174.38 and to support completion of SP 019-090-027.
RECOMMENDATION
recommendation
Staff recommends amending Resolution No. 26-279 and the 2026 Transportation Capital Improvement Program Budget for County Projects 28-69 and 56-14 to reallocate $348,523 between RAISE and County State Aid Highway funding, accepting a $500,000 State Active Transportation Program grant, and authorizing execution of the grant agreement for State Project 019-090-027.
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FINANCIAL AND STAFFING IMPACTS
The proposed amendment would not change the approved totals for County Projects 28-69 and 56-14. It would move $348,523 in RAISE funding from CP 28-69 to CP 56-14 and move $348,523 in County State Aid Highway funding from CP 56-14 to CP 28-69. The action would also accept $500,000 in State Active Transportation Program funding.
CP 28-69 - CURRENT APPROVED
|
Funding Source |
Approved |
Available |
|
CSAH |
$40,530 |
$48 |
|
Wheelage |
$144,477 |
$0 |
|
Transportation Fund Balance |
$4,490 |
$0 |
|
City |
$77,304 |
$0 |
|
RAISE |
$1,150,000 |
$1,150,000 |
|
TOTAL |
$1,416,801 |
$1,150,048 |
CP 28-69 - NEW PROPOSED AMENDED
|
Funding Source |
Amended |
Available |
|
CSAH |
$40,530 + 348,523 = $389,053 |
$348,571 |
|
Wheelage |
$144,477 |
$0 |
|
Transportation Fund Balance |
$4,490 |
$0 |
|
City |
$77,304 |
$0 |
|
RAISE |
$1,150,000 − 348,523 = $801,477 |
$801,477 |
|
TOTAL |
$1,416,801 |
$1,150,048 |
CP 56-14 - CURRENT APPROVED
|
Funding Source |
Approved |
Available |
|
CSAH |
$1,090,793 |
$0 |
|
Sales & Use Tax |
$107,182 |
$31,670 |
|
Transportation Fund Balance |
$51,469 |
$0 |
|
NPS Grant |
$500,000 |
$500,000 |
|
RAISE |
$1,150,000 |
$1,150,000 |
|
TOTAL |
$2,899,444 |
$1,681,670 |
CP 56-14 - NEW PROPOSED AMENDED
|
Funding Source |
Amended |
Available |
|
CSAH |
$742,270 |
($348,523) |
|
Sales & Use Tax |
$107,182 |
$31,670 |
|
Transportation Fund Balance |
$51,469 |
$0 |
|
NPS Grant |
$500,000 |
$500,000 |
|
RAISE |
$1,150,000 + 348,523 = $1,498,523 |
$1,150,000 |
|
TOTAL |
$2,899,444 |
$1,681,670 |
There is no staffing impact.
PREVIOUS BOARD ACTION
23‑066; 2/7/23
23‑485; 10/24/23
26‑279; 6/23/26
ATTACHMENTS
Attachment: Final Funding Participation Distribution
Attachment: Project Location Map
Attachment: State Active Transportation Program Grant Agreement
CONTACT
Department Director: Erin Laberee
Author: John Sass