Virginia City approves multiple street project steps and funding applications, alters Sixth Avenue timeline

The Virginia City committee of the whole on Oct. 21 approved multiple actions to advance street, drainage and utility projects across several corridors and altered the schedule for the large Sixth Avenue reconstruction to reduce duplicate disruption.

Key decisions and context - Sixteenth Street South: The committee directed staff to meet with the Minnesota Department of Transportation (MnDOT) to discuss repair needs on Sixteenth Street South (the portion running from Southern Drive along Highway 53 to Sixth Avenue) and authorized staff to proceed with a local partnership funding application to MnDOT for Sixteenth Street South improvements.

- Sixteenth Avenue culverts and professional services: Committee members discussed three large culverts under Sixteenth Avenue, one of which is collapsed and two of which are failing; they moved to obtain a cost analysis and discuss funding mechanisms. The committee approved a professional services agreement with SEH for design, geotechnical work and bidding documents for the Sixteenth Avenue culvert project, not-to-exceed $40,450 (including an up-to-$5,000 allowance for potential easements).

- Sixth Avenue project and Albert funding: The committee authorized applying for the MnDOT local road improvement program ("Albert" funding) for the Sixth Avenue street improvement project with an application up to $1,500,000. Staff explained the larger Sixth Avenue corridor will be phased across seasons and years; the committee approved altering the project timeline so preliminary work (temporary water connections and limited prep) occurs this summer and the bulk of construction happens in later phases, avoiding tearing the corridor up twice.

- State aid allocation and Fourteenth/Twentieth (Southern Drive/Chestnut corridor): Staff explained municipal state aid accounting and a prior commitment of roughly $1.2 million for the Fourteenth and Twentieth project. The committee approved maximizing state aid application to that project (using available state aid funds up to the eligible amount) and agreed that residual state aid funds should be earmarked for the next state-aid eligible project, which staff identified as Sixth Avenue.

- Stormwater watershed analysis grant: The committee moved and supported submitting an application to the Minnesota Pollution Control Agency (MPCA) for a stormwater watershed analysis grant (up to $500,000 with a 10% local match) that could fund smoke testing and other watershed analyses across the city.

Why it matters: Committee members and staff emphasized the need to balance construction efficiency, funding availability and public inconvenience. Staff said delaying major construction to consolidate work would reduce duplicate disruption and could increase opportunities to secure additional grant or bonding funds. Several motions were moved and supported and advanced for council-level action or handled at committee as noted.

Speakers and roles: Matt Reeve from SEH (city engineer of record) presented project and design details; Jim (public works/public utilities staff) and city finance staff explained phasing, state aid mechanics and budgeting. Multiple councilors moved and supported actions (including Councilor Johnson, Councilor Motley, Councilor Bach Schneider and Councilor Freely). The committee asked staff to notify affected residents about the altered Sixth Avenue schedule.

Next steps: Staff will file the MnDOT Albert funding application, submit the MPCA watershed grant application, proceed with SEH professional services work on the Sixteenth Avenue culverts and prepare detailed funding breakouts and schedules for council review. The committee asked finance staff to earmark leftover state aid for the Sixth Avenue project to prevent the funds being spent elsewhere.