Agenda - Council - 06/09/2009 - Laserfiche WebLink

Home

CASE # '1 AUTHORIZE COST -SHARING AGREEMENT WITH ACRRA FOR FINAL DESIGN FOR THE NORTHSTAR COMMUTER RAIL STATION IN RAMSEY By: Kurtis G. Ulrich, City Administrator Background: In April 2008, the City Council authorized a Cost-Sharing Agreement with Anoka County Regional Railroad Authority (ACRRA) for Preliminary Environmental Review, Design, and Negotiations with BNSF for the Northstar Commuter Rail Station in Ramsey at a cost (the Ramsey contribution) not to exceed $87,134, which was 50% of the total amount. The funding source was excess revenue from the 2007 budget year. The preliminary plan has now been completed and the next step is to move to a final design. During the time the cost-sharing was approved for preliminary plans, it was noted that the Anoka County Board's had recently approved a quarter cent sales tax to fund transit improvements. This new funding stream provided revenue to metro transit projects on a competitive basis. The Fridley Northstar station was the recipient of over $10 million in 2009 for construction. Discussion: The rail authority Executive Director, Tim Yantos, has requested that the City submit a request for funding to the rail authority and to identify funding sources. In a subsequent discussion with Commissioner Berg, he mentioned that the Rail Authority's action on this item would set a funding precedent for other stations in the system, and suggested that the City's best opportunity for immediate support would be to propose a 50/50 funding split for final design, the same cost sharing as the preliminary design. Moving forward with the final design would allow the Ramsey Northstar Rail station to be in a truly "shovel ready" position in order to quickly take advantage of various funding opportunities that become available. Otherwise, there will be a 3 to 6 month timeframe for the preparation of final design plan. Final design plans will also allow the City to get a more detailed construction cost estimate, which would also be helpful in reviewing funding sources. Finally, with a final design for the station in process, the City solidifies the fact that the rail station continues to be a priority project that is moving forward, which will have a positive impact on Ramsey Town Center area businesses and land prices. Staff is therefore seeking approval for a 50% cost sharing agreement that would require the City to front 50% of the costs of the preliminary environmental review, design, and negotiations with BNSF at a cost of not to exceed $150,000. The total final design is estimated to be approximately $300,000. Staff is proposing that the $150,000 be funded by the Landfill Trust Fund, which has a current balance of approximately $3.6 million. The Landfill Trust Fund could then be reimbursed through future land sale proceeds.