Council leans to proceed with Safe Routes to School bids despite federal funding uncertainty

City staff urged the Richfield City Council on June 10 to proceed with a scheduled bid opening for the federally funded Safe Routes to School (SRTS) project on 70th Street adjacent to Centennial Elementary, even while noting a small risk that federal funds could be rescinded.

Joe Powers, Richfield city engineer, told the council the project was awarded $635,000 in federal Surface Transportation Block Grant funds through the Metropolitan Council and would construct a trail connecting the Centennial Elementary campus to the regional trail on Cedar Avenue. The overall estimated project cost is just over $1.1 million, including consultant and local participation costs.

Powers said MnDOT is acting as the intermediary under a delegated contract process (DCP) and already holds the federal funds, which reduces the risk of the U.S. Department of Transportation reclaiming the money. He explained that the federal funds cover up to 80% of construction costs but are capped at $635,000, and that the city had budgeted roughly $305,000 in local construction participation plus about $125,000 already spent in consultant fees.

Staff presented a contingency plan in case the federal funding is rescinded after work begins: defer programmed projects funded from the city’s franchise fee fund (money collected on utility bills and earmarked for right‑of‑way work) to cover the potential gap. Staff recommended moving ahead with the bid opening and award, with the contingency funding strategy in place.

Council discussion focused on balancing the small funding risk against the benefit of completing the project before the school year. One councilor said, “Risks are low, and I hope that that is the way it will work out,” and argued that delaying the project by redesigning it or waiting could push the construction out by about five years. Another council member, who said they live across from Centennial Elementary, emphasized the project’s priority for pupil safety and urged timely action.

Staff noted the bids were scheduled to be opened June 12 and award considered at the June 24 council meeting, with an aggressive construction schedule intended to finish most work before school begins in the fall. The council did not take a recorded roll‑call vote on a specific motion during the discussion; council sentiment supported proceeding with the scheduled bid opening and using the franchise fee contingency if federal funds were later rescinded.

The council’s direction allows staff to continue with the bid opening and return to council for final award and any budget adjustments required if federal reimbursement becomes uncertain.