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2005-09-20 CC Minutes I-94 WorkshopA�Ibcrtvillc ALBERTVILLE CITY COUNCIL I-94 Project Workshop September 20, 2005 Albertville City Hall 7:00 PM PRESENT: Mayor Donald Peterson, Council members LeRoy Berning, John Vetsch, Ron Klecker and Tom Fay, City Engineer Mark Kasma, Assistant City Engineer John Huseby, City Attorney Mike Couri, Northland Securities -Financial Advisor Paul Donna, Finance Director Tina Lannes, MNDOT Representative Terry Humbert, Wright Council Engineer Wayne Fingalson, and City Administrator Larry Kruse. The goal of the workshop was to gain council consensus on the vision for the future of I-94 Access at CSAH 19 and CSAH 37 interchanges. A number of interchange alternatives have been considered and the options have been narrowed to 3 viable alternatives that MNDOT and FHWA would agree with. Option 3 was selected by the council as the vision for Albertville, Option 3 is a full C-D road concept that would provide full high speed access to both CSAH 19 and CSAH 37 in both directions on I-94. Due to the high cost of this option and the current lack of outside funding sources the council has opted for a phasing plan that would deal with immediate and near term traffic needs. This would allow the council to pursue other funding options and reserve funds for future improvements as the City of Albertville grows. An extensive interactive discussion and calculation of assessments and tax levy impacts was held. The cost of Option 3 is estimated at $20 million, if the city were to pay for these on their own the debt burden on the city would be significant and probably equal an amount not acceptable to the average Albertville resident and business. I-94 PROJECT UPDATE Jaimison Sloboden from SEH presented the three interchange options that FHWA and MnDOT concurred with as long-term viable solutions. These options include: • Option "Y' Option 3 is a full Collector -Distributor (C-D) Road System that would provide the highest speed service to both CSAH 37 and CSAH 19 interchanges in both directions. The estimated cost for this interchange is $20 million. • Option "2b" Option 2b is a partial C-D Road System that would provide direct high-speed service to the CSAH 19 interchange; the CSAH 37 interchange would have I-94 access from I-94 west by going through the CSAH 19 signals. The estimated cost for this option is $17 million. • Option `B" Option B is a full interchange with direct access to I-94 at CSAH 19 and a half interchange at CSAH 37 (west ramps closed). The estimated cost for this option is $7 million. MACity Council\Council Minutes\2005 Minutes\Workshop\M 09-20-05 Workshop.doc City of Albertville City Council Minutes September 20, 2005 Page 2 of 4 Option "Y Full CD V $20M Option "2b" Full CD at CR 37 $17M Option "B" Full 19 1 /2 CR 37 $7M 2. The no -build option was presented and discussed to reinforce the need for changing the access configuration of the Albertville Interchanges. The primary failure point would be the intersection of CSAH 19 and CSAH 37. This is due to the greatest demand occurring at CSAH 19 to and from I-94 east. The turning traffic that would occur at the CSAH 19/CSAH 37 intersections would result in the need to expand CSAH 19 to an 8-lane Road and CSAH 37 would need to be a 5-lane road, the right-of-way impacts would be significant to adjacent properties. The No -build option assumed that Naber Avenue was not in place. The traffic demand on the CSAH 37 west ramps was 3,900 vehicles on each ramp or 7,800 total two-way traffic. 3. The Build options were presented from an ADT perspective; traffic is more balanced on the local road system. The build ADT's included an access at Naber Avenue. The traffic demand on CSAH 37 west ramps in Option 2b was 2,000 vehicles on each ramp or 4,000 total two-way traffic. In option B, the demand for CSAH 37 from west I-94 is served by traffic existing on CSAH 19 and and either turning north to 70th Street or south to CSAH 37. Detailed operations modeling indicated that Option B would operate in 2030. 4. In all build scenarios the I-94 bridges over CSAH 19 would need to be replaced to accommodate the needed turn lanes for a full interchange at CSAH 19. A phasing discussion was held; it may be possible to construct Option `B" as the interim project and work towards Option 3 as funding becomes available. ENGINEER PEER REVIEW John Huseby of Bolton and Menk, Inc. provided a memo discussing the peer review of SEH's work to date. The issues he discussed included: 1. Interstate Access Request (IAR) Process. He discussed the Interstate Access Request Process and indicated that the Freeway Study Report prepared by SEH was not an actual IAR it did address the 8 policy items required in IAR. 2. Review and Comment of SEH Report. a. Purpose and Need b. Report Summaries (graphic and Text) c. Peak Hour Traffic d. Technical Review of Model 3. Other Comments M_ACity Council\Council Minutes\2005 Minutes\Workshop\M 09-20-05 Workshop.doc City of Albertville City Council Minutes September 20, 2005 Page 3 of 4 WRIGHT COUNTY COMMENTS — WAYNE FINGALSON Wayne Fingalson, County listened to the presentations and agreed the cost of I-94 Improvements is significant for a small City. Fingalson stated the County will be hosting a Transportation meeting soon and Albertville is invited to make a presentation to the County on CSAH 19 and I- 94 improvements to see if they can be prioritized into the County's five year plan. Fingalson said the County is financially challenged with a lot of transportation demands. The County Board has for the first time considered bonding rather than pay as you go. Fingalson thanked the Council for their work on the North East Wright County Transportation Study and their efforts to resolve transportation issues. TINKLENBERG GROUP UPDATE — DAN KROM Dan Krom, of the Tinklenberg Group gave an update on funding stating the City has been awarded $800,000 in Federal Funds and they are working with Congress on additional appropriations. Regardless of the outcome of the phasing, Mr. Krom sees the need to continue lobbying efforts to obtain additional funds. MR. Krom fielded several questions on the federal outlook on funds. FINANCIAL ADVISOR COMMENTS — PAUL DONNA Financial Advisor Paul Donna reviewed the fiscal impact to the City for projects ranging from $7 million to $20 million. Donna shared an interactive worksheet with the council, which showed the levy impact with various assessment assumptions. Donna stated the I-94 project is a huge project for a small city and stressed that it is important for the City to develop a financial plan which preserves the City's bond rating. MnDOT COMMENTS- TERRY HUMBERT Mr. Humbert stated they are agreeable to Option B, Option 2b and Option 3, and that the Option 2b and Option 3 could be phased north and south. Humbert explained that the State would participate some in replacement of bridges with the amount based on the depreciated value of the asset. Humbert stated that the Kadler Interchange was not on anyone's radar for the next one or two decades, as there is a significant amount of local street improvements that would need to be constructed south in St. Michael and north into Otsego, and possibly including a Mississippi River bridge crossing. CITY ADMINISTRATOR KRUSE'S COMMENTS City Administrator Kruse stated he too understands and supports the council's goal to maintain full access at both CSAH 19 and CSAH 37. Kruse stated he has felt uncomfortable with project costs when it topped the $10 million dollar amount, and is very concerned about the fiscal impact of what may be an even larger project. Kruse remains optimistic about the City's ability to garner additional outside funds but cautioned the City Council that it must be willing to levy and fund the ultimate project, less any assistance the City might receive. Kruse emphasized that if the City has to pay for the majority of a $20 million dollar projects, the fiscal impact for a small city like Albertville would be huge. M_ACity Council\Council Minutes\2005 Minutes\Workshop\M 09-20-05 Workshop.doc City of Albertville City Council Minutes September 20, 2005 Page 4 of 4 COUNCIL VIEWS Mayor Peterson polled each council member to hear the council's preference and concerns of each option. Mayor Peterson, Council member Fay and Klecker all stated they understand and support the desire for the larger more expensive project, however find it necessary to phase it in — in such a way that it is affordable. All three favored seeking the Federal Access Approval for Option B, Option 2b and Option 3, with the latter two being able to be split into two separate phases (north and south). Council member Berning favored the more expensive $20 million dollar project (Option 3), with the ability to split the project north and south and hoped to garner a significant amount of additional funding from the City of Otsego, County, State and Federal Government. Council member Vetsch favored none of the above and spoke in favor of a Kadler interchange. All of the Council agreed Albertville should meet with the City of Otsego to make sure we hear their concerns and offer them the opportunity to help build the more extensive project thus achieving their goals to maintain full access at CSAH 37. The meeting ended with the consensus for S.E.H. to pursue a Federal Access Request for a what ultimately may be a full collector distributor road (Option 3), with initial phasing to include the shifting of the westerly ramps on CSAH 37 to the east side of CSAH 19 (Option B). The Council noted that if adequate funds become available from other partners including assessments from local developed commercial property, undeveloped commercial property, and financial participation from the City of Otsego, Wright County, State of Minnesota and Federal Transportation Administration the Council's willingness to consider building towards the full CD system (Option 3) in affordable increments. S.E.H. Engineer Jamison Sloboden stated he felt he had adequate direction to continue to work toward the Federal Access Permit and continued work on the Environmental Worksheet. The scope of work should be completed in February, 2006. There being no further comments the meeting was adjourned at 11:00 p.m. Donald Peterson, Mayor Larry R. Kruse, City Administrator MACity Council\Council Minutes\2005 Minutes\Workshop\M 09-20-05 Workshop.doc