DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Minnesota Department Of Transportation Contract Number 1064779 For Federal Participation In Advance Construction Funding For Reconstruction Of County State Aid Highway 42 (150th Street W) From Redwood Drive To 147th Street In Apple Valley, County Project 42-163
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RESOLUTION
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WHEREAS, to provide a safe and efficient transportation system, Dakota County is proceeding with County Project (CP) 42-163, the reconstruction of County State Aid Highway 42 from Redwood Drive to 147th Street; and
WHEREAS, by Resolution No. 22-144 (April 5, 2022), the Dakota County Board of Commissioners authorized approval of grant application submittals for the 2022 Regional Federal Funding Solicitation and Rebuilding American Infrastructure with Sustainability and Equity Grant program; and
WHEREAS, on January 25, 2023, Dakota County was approved for the federal Surface Transportation Block Grant program for CP 42-163 in the amount of $6,540,000 for the 2027 construction; and
WHEREAS, on October 27, 2026, Minnesota Department of Transportation (MnDOT) Contract Number 1064779 was furnished to County staff for signatures to accept the grant funds.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager, or delegate, to execute Minnesota Department of Transportation Contract Number 1064779 for federal participation in advance construction funds for CP 42-163 (State Projects 019-642-068 and 186-020-041), with anticipated federal reimbursement of $6,540,000, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That pursuant to Minn. Stat. § 161.36, the Commissioner of Transportation is hereby appointed as Agent of Dakota County to accept as its agent, federal aid funds which may be made available for eligible transportation related projects.
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BACKGROUND
The Federal Highway Administration (FHWA) and MnDOT require federally funded projects receiving more than $5 million to use Advance Construction (AC) procedures. Under AC, the County temporarily uses County State Aid and other local funds to cash flow eligible project costs until federal obligation authority is available. Once MnDOT obtains federal obligation authority for the project, MnDOT will convert the project from AC status to federal funding and will reimburse Dakota County for federally eligible costs. This process allows MnDOT to manage statewide federal cash flow while enabling the County to proceed with construction on schedule.
This approach is consistent with advance construction agreements previously executed on Dakota County transportation projects, including County Project (CP) 9-46, CP 42-82, and CP 63-25. The AC agreement does not change the total amount of federal funding available for CP 42-163 but establishes the timing and method of reimbursement. MnDOT Contract Number 1064779 prescribes the responsibilities of both parties and formally appoints MnDOT as the County’s agent for accepting and disbursing federal transportation funds, as authorized under Minn. Stat. §161.36. Execution of this agreement is required before construction authorization and reimbursement of federal funds can occur.
Construction of CP 42-163 is planned to begin in 2027 and occur over two construction seasons.
RECOMMENDATION
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Staff recommends execution of Minnesota Department of Transportation agreement number 1064779 or federal participation in advance construction for County Project 42 163.
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FINANCIAL AND STAFFING IMPACTS
The Transportation Capital Improvement Program Budget includes $25,238,728 for CP 42-163. There is sufficient project budget available to fund the construction costs before eligible federal costs are reimbursed. There are no staffing impacts associated with this action.
|
Funding Source |
Total Approved Budget |
Available Budget |
|
Transportation Fund |
$141,470 |
$459 |
|
Cities |
$3,097,002 |
$2,631,175 |
|
Sales and Use Tax Fund |
$14,710,256 |
$12,211,582 |
|
Federal |
$6,540,000 |
$6,540,000 |
|
Transportation Advancement Account |
$750,000 |
$750,000 |
|
Total |
$25,238,728 |
$22,133,216 |
PREVIOUS BOARD ACTION
22-144; 4/5/22
ATTACHMENTS
Attachment: Location Map
CONTACTS
Department Director: Erin Laberee
Author: Saeed Kanwar