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STAFF ORIGINATOR: CITY COUNCIL MEETING DATE: TOPIC: ACTION REQUIRED: BACKGROUND AGENDA ITEM 6F Michael Grochala October 12, 2004 Consideration of Resolution No. 04 -146 Requesting Mn /DOT Municipal Agreement Funding for Lake Drive /I -35W Improvements Simple Majority The Lake Drive /I -35W interchange currently experiences severe backups at the off ramps due to operational issues with the stop - controlled intersections. Additionally, the south ramps are not aligned across from one another and uncontrolled private accesses exist immediately south of the ramps. The poor function of the interchange has been documented in correspondence between the City, Mn /DOT and Metropolitan Council over the last 8 to 10 years. As part of the proposed Legacy at Woods Edge project, a traffic analysis and preliminary design for Lake Drive were completed that identified the roadway improvements necessary to improve existing conditions and accommodate the proposed development. The estimated cost of improvements to Lake Drive including signalization and ramp realignment is approximately $2,400,000. The Minnesota Department of Transportation (Mn /DOT) offers a municipal agreement program, which provides funding for city initiated projects. The program offers up to $500,000 for construction purposes and a pro -rated share of funding for construction engineering. Following discussions with Mn /DOT and Anoka County, City staff is of the opinion that the project has a high potential for funding. The application deadline is Friday, October 15th. Based on eligible funding items, staff is proposing to request $540,000 from the municipal agreement program for state fiscal year 2006 (July 2005 to June 2006). Award of the funding, which is typically made in January or February, provides the City with additional flexibility regarding funding of Lake Drive improvements. The dollars could be used to offset the proposed city share of "interim improvements" or could be rolled into the funding package for an overall interchange improvement project.