92-7873R25
RESOLUTION NO. 7873
RESOLUTION OF THE CITY OF RICHFIELD
ACCEPTING CONDITIONS OF THE MAY 5, 1992
LETTER OF INTENT (MEMORANDUM OF UNDERSTANDING)
FROM W.M. CRAWFORD REGARDING THE 77th STREET PROJECT
WHEREAS, the Minnesota Department of Transportation (MnDOT)
and the City of Richfield (City) have been negotiating for over
two years toward an Agreement on the 77th Street Project
(Project) details and funding; and
WHEREAS, MnDOT and .City wish to express their intent with
respect to the basic elements of the anticipated contractual
relationship.
NOW, THEREFORE, BE IT RESOLVED, that the conditions of the
Letter of Intent .(Memorandum of Understanding) are acceptable to
the City as an expression of our intent with respect to the basic
elements of the anticipated contractual relationship between
MnDOT and the City.
Adopted this 20th day of May, 1992.
s
Martin J. irsch Mayor
Attest:
Thomas P. Ferber City Clerk
~,~N"~q Minnesota Department of Transportation
,~o ~
$ ~ Metropolitan District
Transportation Building
St. Paul, Minnesota 55155
~~ TFIPa~ Oakdale Office, 3485 Hadley Avenue North, Oakdale, Minnesota 55128
Golden Valley Office, 2055 North Lilac Drive, Golden Valley, Minnesota 55422
Reply to
Telephone No
May 20, 1992
Mr. Jim Prosser
City Manager
City of Richfield
6700 Portland Avenue South
Richfield, Minnesota 55423
Re: Letter of Intent Relating to I-494 Access Restrictions
and 77th Street Projects
Dear Mr. Prosser:
For some time, Mn/DOT and Richfield have been discussing various
improvements relating to highway I-494 in the City. These
improvements to I-494 involve restricting access to and from I-494.
This reduced access may be in the form of:
1. High Occupancy Vehicle (HOV) access only during peak hours at
some ramps;
2. Temporary improvements to move the 12th Avenue ramps to
Portland Avenue; and
3. Total reconstruction of I-494 resulting in the removal of
Nicollet Avenue access and moving the 12th Avenue ramps to
Portland Avenue.
We have also been discussing the 77th Street Project which involves
construction of a remote frontage road for I-494 from I-35W across
T.H. 77 to replace the frontage road which may be lost as a result
of the reconstruction of I-494. For purposes of this letter, I
will refer to the 77th Street Project from 35W to T.H. 77 as Part
I of the 77th Street Project. The current concept plans for the
77th Street Froject are attached to this letter as attachment(s) A.
It is currently estimated that the cost of Part I improvements, not
including project development costs, will be $20 Million. Part II
of the 77th Street Project will include an underpass under T.H. 77,
the connection of 77th Street to 24th Avenue, and north ramps to
T.H. 77.
An Equal Opportunity Employer
Mr. Jim Prosser
May 20, 1992
Page Two
Part II is estimated to cost $13 Million. The details of
improvements resulting in access restrictions to I-494 have not yet
been determined.. However, the City has indicated its agreement
with the general concept of these access restrictions provided both
Parts of the 77th Street Pro''ject are constructed first.
Recently, Federal money has been made available for use on the 77th
Street Project through two appropriations, one in the amount of
$9.24 Million which is currently available, and another in the
amount of $11.6 Million ',which will be made available in
installments between 1992 and 1997. With these two appropriations,
the cumulative amount of Federal money available for the years 1992
through 1997 would be as follows:
1992 10,168,000
1993 12,302,400
1994 14,436,800
1995 ', 16,571,200
1996 18,705,600
1997 ', 20,840,000
These Federal dollars may only be used for 80$ of eligible project
costs; 20$ must be paid locally. With respect to such 20~ of
eligible costs and with respect to any ineligible costs of the
project as described in attachment(s) A, we have agreed that 75$
would be paid by the State 'and 25$ paid by the City, except as
modified below.
The City understands that,
Project, it is desirable f
extent reasonably possible as
the frontage road for I-49
Street. Occasions at which t
a reorientation include act
conditional use permits, va
rezoning, C-3 site plan revi~
subdivisions. The City is
reorientation if it has so
State's intentions with resF
in anticipation of the 77th Street
r all parties to encourage, to the
tlawful, that existing business along
reorient their businesses to 77th
.e City may be able to influence such
on on petitions or applications for
~iances, off-street parking permits,
a, transitional activity permits, and
~illing to attempt to encourage such
e assurances from Mn/DOT about the
;ct to 77th Street.
Also, in anticipation of the 77th Street Project, the City has
already expended approximately $1.98 Million for acquisition of
right-of-way. Both parties recognize that early acquisition of the
necessary right-of-way is advantageous to both the City and the
State. The City is prepared to continue to acquire right-of-way
Mr. Jim Prosser
May 20, 1992
Page Three
and is, currently preparing an environmental assessment on the
project. Assuming a finding of no significant impact in the
environmental assessment process, the City wishes to continue to
acquire right-of-way but is unwilling to do so without a clear
statement by Mn/DOT of its intent with respect to the 77th Street
Project, its scheduling, construction and funding. Plans for the
project are not yet sufficiently developed to enter into a final
cooperative agreement for construction of the project.
Nevertheless, Mn/DOT agrees that it would be desirable for the City
to continue with its right-of-way acquisition activity.
Therefore, the purpose of this letter is to state Mn/DOT's intent
with respect to the 77th Street project, and the basic elements of
the anticipated contractual relationship between Mn/DOT and the
City for the project, which intent is as follows:
1. Mn/DOT will, in cooperation with the City, make necessary
funds available and enter into a cooperative agreement with
the City for the construction of Part I of the 77th Street
Project.
2. Both Parts of the 77th Street Project will be completed before
commencement of construction of any of the restrictions on
access to I-494 described above. The City will agree to
access restrictions as described earlier in this letter,
provided both Parts of the 77th Street Project are constructed
first .
3. As much of the two Federal appropriations described above as
is necessary to complete all of the 77th Street project shall
be so used, first for Part I and then for Part II, before any
of such funds are devoted to another use.
4. Part I of the 77th Street Project, as depicted in
Attachment(s) A will include costs which are eligible for
Federal participation (eligible costs) and those which are not
(ineligible costs). The Federal share of eligible costs will
be 80$; the local share of eligible costs will be 20$. The
City will pay 25$ of the sum of: the local share of eligible
costs plus all ineligible costs. The State will pay the
remainder of such costs. It is understood that the $1.98
Million already spent by the City are not eligible costs and
will not count toward the local share of eligible costs.
Nevertheless, Mn/DOT will adjust its participation so that all
of the $1.98 Million will be recognized by the State for
purposes of satisfying the City's obligation for the City's
share of Part I project costs. Therefore, the City will have
Mr. Jim Process
May 20, 1992
Page Four
4. no obligation for Part'I project costs until the sum of the
local share of eligib'ile costs plus all ineligible costs
exceeds $7.92 Million. However, the City's overall
contribution shall not ~e less than the $1.98 Million. already
expended; and in the event $1.98 Million exceeds 25$ of the
sum of the local share'~Iof eligible costs plus all ineligible
costs, the additional money expended by Richfield may not be
carried over to another project.
5. The City will not be expected or obligated to participate
financially in Part II ', of the 77th Street Project or any of
the improvements necessary to accomplish the restrictions to
I-494 access described above except to the extent typically
and customarily required to be paid by cities for such
projects. ',
6. Upon approval of a finding of no significant impact in the
environmental assessment, or other satisfactory completion of
the environmental review process, the City may commence right-
of-way acquisition using Federal and State funds in
cooperation with, and with the prior written authorization of,
the Off ice of State Aid.
7. The City will be the lealld agency for right-of-way acquisition,
planning and construction of the 77th Street Project, all
through the Office of State Aid. The lead agency for Part II
will be determined at a later date by agreement of the
parties.
8. Construction of both Parts of the 77th Street Project shall be
so scheduled that they 'will be completed by the end of 1995,
or as soon thereafter as available funding permits.
9. The City will not be obligated to "front end" any acquisition,
project development, construction, or other costs except for
activities voluntarily ,undertaken by the City in cooperation
with the Office of State Aid. The .City will develop
procedures with the !Office of State Aid for prompt
reimbursement of authorized expenditures by the City such as
right-of-way acquisition costs.
10. Prior to execution of a cooperative agreement, the City will
not expend any funds for purposes other than. right-of-way
acquisition and project', development without the prior written
approval of Mn/DOT.
Mr. Jim Processer
May 20, 1992
Page Five
11. The City will follow Federal procedures in all activities
related to the 77th Street Project so that, to the greatest
extent possible, no opportunities for use of Federal funds
will be lost.
12. Nothing herein is intended to alter obligations of the City
which are ordinarily and customarily included in cooperative
agreements for construction of projects of this type, to pay
for defective, unsatisfactory or unauthorized work.
This letter of intent serves as Mn/DOT's commitment to the City of
Richfield on the project development, cost sharing. and
construction. Due to statutory limitations, I cannot commit to
spend State funds that have yet to be appropriated. by the State
Legislature, therefore the States commitment is contingent upon
legislative approval of funding through the appropriation process.
If the conditions specified in this letter .are acceptable to the
City of Richfield, please send a City Council Resolution to that
effect to me.
Si er ,
,~
i
Willia M. ra
Metro Division
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U5,'2U%92 11:29 FAY 612 861 9"~9 CITY-RICHFIELD
PRELIMIIV.AR~ BUDGET ~'OR 77TH
STREET PROJECT.
FUNDING SOURCES
Federal Funds $20,000
State Funds '59,000-510,000
cxt~ rrSA Funds s2,~oo-s3,ooo
$33,000,000
TOTAL Ft7NDII~IG ..............',....._...................$33,OQO.OOd
EXPENSES
35W TO PORTLAND -- PHASE Y - 1992-1 9~
R-O-W & Relocation 56,610,000
Construction $4,4$0,000
Consultant Services ' 5800,000
In-house Services- ', 550,000
SUB-TOTAL $11,910,000
PORTLAND TO CEDAR -- PHASE 'III -- 1993-1.994
R-O-W ~ Relocation 54,242,400
Construction ', $2,'737,600
Consultant Services $50Q,000
In-House Services ' 540,000
StJB-TOTAL I $7,520,000
CEDAR TQ 24TH AVE _ - -- PHASE III -1994-1995
R-O-W & Relocation ', $2,950,000
COnStructlOA $8,50(7,QOO
Consultant Services 52,100,000
In-House Services $20,000
SUB-TOTAL 513,570,000
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TOTAL COST I35w TO 24TH AvE .........................$33,000,000