Consideration and Approval of Grant Agreement: City of Flagstaff and Federal Rail Administration INFRA Grant Agreement for the Downtown Mile Safety and Connectivity Improvement Project.
 

1. Approve the Downtown Mile Safety and Connectivity Improvement Project (Project) Infrastructure of Rebuilding America (INFRA) Grant Agreement (Agreement) between the City of Flagstaff and Federal Rail Administration (FRA). 

• In 2022, the City of Flagstaff and BNSF Railway partnered on a U.S. Department of Transportation INFRA grant application to fund the Downtown Mile Safety and Connectivity Improvement Project. 
• The City was notified in the fall of 2022 that the application was successful and City Council awarded the design phase services contract in October 2022.
• The Project team has been working with the FRA and partner agencies on design development and NEPA clearance over the past several years and we are approaching 90% plans stage this summer.
• The project authorization deadline is September 2025, and this executed agreement is required for authorization.

Project construction is funded by the following agencies:

• U.S. Department of Transportation - $32,460,000 (Federal share)
• City of Flagstaff - $16,172,000 (City match)
• BNSF Railway - $11,250,000 (Match contribution)
• Arizona Department of Transportation: $3,000,000 (AZ SMART Fund match)
• MetroPlan Grant - $490,000

Current FY2024-25 funding is $10,051,365 and FY2025-26 funding is anticipated to be $6.5 million, account # 409-09-427-3520-1-4421 with total project cost of $63.4 million

Flagstaff City Council approved the original design contract for the Project on October 18, 2022 and approved Change Order #2 on March 5, 2024. The team held a project public meeting in June 2023.

1. Approve the grant agreement as presented. 
2. Reject the agreement and direct staff to renegotiate terms with FRA. This option may jeopardize the awarded federal funding.

The Downtown Mile Project is a suite of City Capital transportation and stormwater projects that surround the BNSF rail corridor in downtown Flagstaff. The projects share proximity, constraints with building under and around the railroad, and opportunities for funding partnerships and construction efficiency. The individual projects were aligned into the overall project scope out of a need to help fund mitigation impacts to rail operations from the construction of the Rio de Flag project, to expedite delivery of the City's multimodal projects, and to provide opportunity to BNSF to construct a third main rail line, which instituted their support for Project funding and approval for construction. The Project components include: 

• Florence to Walnut Pedestrian Underpass – Construction of a pedestrian underpass to the west of the ADOT B40/Milton Road Underpass/BNSF rail bridge. Proposed to connect Florence Street and Walnut Street with a grade-separated pedestrian tunnel in an area of active trespassing. 
• ADOT B40 Milton Road Underpass/BNSF Rail Bridge Reconstruction – The existing two-track bridge structure over Milton Road will be replaced and the location of the underpass will be shifted to the north in alignment with the proposed permanent third main line of the BNSF tracks. The bridge will include a span arrangement that will allow for the future ADOT corridor expansion, including multimodal improvements. Additionally, the proposed structure shall provide a minimum of 16’-8” vertical clearance as required by current ADOT and BNSF standards. 
• Rio de Flag Pedestrian Underpass – This grade-separated pedestrian underpass will be constructed under the BNSF corridor and adjacent to the Rio de Flag flood control concrete box culvert. It will be tied into the future Mountain Line Downtown Connection Center site located on Phoenix Avenue. 
• Beaver Street and San Francisco Street At-grade Crossing Safety Improvements – Will include at-grade crossing safety improvements associated with two one-way streets that intersect with the BNSF corridor adjacent to the current Amtrak station. These improvements are focused particularly on enhancing safety for pedestrians.
• Community Rail Safety Plan - A rail safety plan in accordance with Federal Railroad Administration guidelines will be delivered during design. 

In addition, alignment and support for these projects will greatly benefit delivery of the Rio de Flag Flood Control Project and the Lone Tree Overpass Project.

There are several pending items in reference to the environmental mitigation measures (pages 6 and 10) and administrative program designations (page 15). The NEPA document has yet to be completed and is on a concurrent schedule with execution of this grant agreement. Both the NEPA and approved grant agreement are required to be submitted to FRA by May 2025. The mitigation section will be completed at that time. In order to maintain schedule for obligation in September 2025 and keep the grant awarded funding secure, staff is recommending approval at this time with this section undetermined. If the Grant Agreement significantly changes, we will come back to council for approval of the revised Grant Agreement and/or a Grant Agreement Amendment.

Priority Based Budget Key Community Priorities and Objectives

• Deliver outstanding services to residents through a healthy, well maintained infrastructure system.

Regional Plan

• Improve mobility and access throughout the region.
• Improve transportation safety and efficiency for all modes.
• Promote transportation infrastructure and services that enhance the quality of life of the communities within the region.
• Increase the availability and use of pedestrian infrastructure, including FUTS, as a critical element of a safe and livable community.

Carbon Neutrality Plan

• Encourage vibrancy, appropriate density, and attainability in existing neighborhoods, so that more residents live within walking distance of their daily needs. 
• Create inclusive networks for walking and biking that are continuous, attractive, safe, comprehensive, and convenient for people of all ages.

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