Adopt Resolution #19-249 Authorizing Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant
Application for Ramsey Gateway Highway 10 Improvements.

Purpose:
The purpose of this case is to adopt Resolution #19-249 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $10,000 to prepare an application for funding up to $25 million through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant program for Highway 10 Ramsey Gateway improvements.

Background:
In September of 2014, the Cities of Ramsey and Anoka, in partnership with the Minnesota Department of Transportation (MnDOT), the Anoka County Highway Department, and the Metropolitan Council, completed the Highway 10 Access Planning Study.  This Study included an Implementation Plan that identified 21 proposed improvement projects along the Highway 10 corridor through Anoka and Ramsey.  Each of the identified projects were prioritized in the implementation plan as immediate, short-term, mid-term, or opportunity/ development/safety driven projects.  On October 28, 2014, the Ramsey City Council adopted the Highway 10 Access Planning Study, thereby supporting the mutual goals and objectives of the various agencies to improving the operations and safety of Highway 10 in balance with local community values.
 
After the Highway 10 Access Planning Study was completed, the City of Anoka hired Bolton and Menk to develop a City approved design for improvements to Highway 10 through the City of Anoka.  This plan, called the Anoka Solution, resulted in $85 million worth of proposed improvements to Highway 10 including grade-separated intersections at Fairoak Avenue and Thurston Avenue, frontage road connections on both sides of Highway 10, and improvements to the existing grade-separated intersection of Main Street and Highway 10.  After developing this plan, the City of Anoka effectively and successfully applied for external funding through numerous state and federal grant programs and recently announced the project is fully funded with construction scheduled to start in 2022.
 
The City of Elk River was also recently awarded full funding for grade-separating all intersections along Highway 169 through the City.  This means the City of Ramsey will have the only two at-grade signalized intersections on US 10/169 once Anoka and Elk River complete their improvements to Highways 10 and 169.
 
Last year, the City of Ramsey hired Bolton and Menk to develop a plan for improvements to Highway 10 through the City of Ramsey.  Since then, City Staff have been working with Staff from Bolton and Menk, Anoka County, the Minnesota Department of Transportation, the Federal Highway Agency, and the City of Elk River to develop a plan for improving Highway 10 through the City of Ramsey to improve operations and safety consistent with the Highway 10 Access Planning Study.  This plan, called the Ramsey Gateway, proposes grade separation improvements on Highway 10 at the intersections of Sunfish Lake Boulevard and Ramsey Boulevard, frontage roads on both sides of Highway 10, and grade separation improvements for the Burlington Northern Santa Fe (BNSF) railway crossing of Ramsey Boulevard and Sunfish Lake Boulevard.  These proposed improvements are currently estimated to cost up to $140 million. 
 
Phase 1 of the Ramsey Gateway plan, the planning phase, is nearing completion.  Phase 2 of the Ramsey Gateway plan, the design phase, will develop the preliminary design and estimated construction costs.  Staff is currently discussing the process for transitioning from Phase 1 to Phase 2 with the other agencies.  
 
To ensure the City of Ramsey is able to construct the Ramsey Gateway Highway 10 Improvements near the end of or immediately following the improvements to Highways 10 and 169 through the cities of Anoka and Elk River, applications for external funding should be submitted as soon as opportunities arise.  These opportunities occur throughout the year so Staff feels it is important to apply early and often to ensure the Ramsey Gateway Highway 10 Improvements can be funded as quickly as possible.
 
An opportunity currently exists to apply for federal grant funds through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant program.  This program leverages private, state and local investments to support safety enhancements and general improvements to infrastructure for both intercity passenger and freight railroads. The U.S. rail network is central to the success of the American economy, carrying more than 1.8 billion tons of freight valued at nearly $800 billion annually, and over 31.7 million passengers on Intercity Rail Passenger Transportation services.
 
Congress authorized the CRISI grant program to invest in a wide range of projects within the United States to improve railroad safety, efficiency, and reliability; mitigate congestion at both intercity passenger and freight rail chokepoints; enhance multi-modal connections; and lead to new or substantially improved Intercity Passenger Rail Transportation corridors. Rail safety projects include, but are not limited to, grade crossing enhancements, rail line relocations and improvements, and deployment of railroad safety technology. Eligible work also includes regional rail and corridor planning, environmental analyses and research, workforce development, and training.
 
The CRISI Program is authorized under Section 11301 of the Fixing America's Surface Transportation (FAST) Act, Public Law 114-94 (2015); 49 U.S.C. 22907 and funds are provided in the 2019 Appropriation.
 
Available Funds
The total funding available for awards is $244,621,500. There are no predetermined minimum or maximum dollar thresholds for awards. The Federal Railroad Administration (FRA) anticipates making multiple awards with the available funding.  FRA strongly encourages applicants to identify and include other state, local, public, or private funding or financing to support the proposed project in order to maximize competitiveness.  The application will request funding up to $25 million since a typical railway grade-separation project costs around $25 million.
 
Cost Sharing
The Federal share of total costs for projects funded under this notice will not exceed 80 percent, though FRA will provide selection preference to applications where the proposed Federal share of total project costs is 50 percent or less. The estimated total cost of a project must be based on the best available information, including engineering studies, studies of economic feasibility, environmental analyses, and information on the expected use of equipment and/or facilities.
 
Application Deadline
Applications for funding under the 2019 CRISI solicitation are due no later than 5:00 p.m. EDT, October 18, 2019.

Notifications are not required for this case.

Observations:
If authorized, this would be the second grant application submitted for the Highway 10 Ramsey Gateway improvements.  On May 28, 2019, Council authorized applying for up to $25 million for the Ramsey Gateway improvements through the FY 2019 Better Utilizing Investments to Leverage Development (BUILD) grant program.  Funds awarded through the FY 2019 BUILD program must be expended by September 30, 2026.  At this time it is not known if the City was awarded funding from the BUILD grant program.
 
Upon Council authorization to submit an application for funding through the CRISI program, letters of support for the Ramsey Gateway Highway 10 Improvements previously obtained from local businesses, Anoka County, the Minnesota Department of Transportation, Burlington Northern Railroad, Met Transit, and members of Congress and the Senate, will be submitted with the application.
 
In 2017, the City applied for a federal FASTLANE grant and though the City was not successful with that application, Staff did request an audit of our application.  During the audit we were informed that while we were not awarded funding, neither do the vast majority of first time applicants.  We were also informed that chances of award increase each time an application is resubmitted due to their increased familiarity with the project, and due to the increased feedback on how to enhance future application to increase the chances of being awarded funding.
 
If the City is unsuccessful in securing funds under the FY 2019 CRISI grant program, the application can be re-purposed to apply for future CRISI program funds, or other available funding sources such as Corridor Investment Management Strategy (CIMS), Corridors of Commerce (COC), Local Road Improvement Program (LRIP), Local Partnership Program (LPP), Transportation Economic Development (TED) and Transportation Economic Development Infrastructure (TEDI).

Alternatives:
Adopt Resolution #19-249 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $10,000 to prepare an application for funding up to $25 million through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant program for Highway 10 Ramsey Gateway improvements.

The current estimated cost for constructing the proposed improvements along the Highway 10 corridor through the City of Ramsey is $140 million.  If the City is successful in obtaining the requested grant funds, a 20% local match will be required. This local match can be funded in many ways, including the use of Local Road Improvement Program funds, MSA funds, etc.  A share of the local match could also come from Anoka County.  Applicants are encouraged to identify other public and/or private funding sources that will be leveraged to contribute to the capital costs of the project.  Staff will further identify the source(s) of the local match amount while working with Bolton and Menk to complete the application. Local cost share requests would require future Council approval.

Bolton and Menk, Inc. submitted a proposal to the City of Ramsey on September 27, 2019 for preparing the application in an amount not-to-exceed $10,000.  A copy of the proposal is attached.  Anoka County has offered to pay for 75% of the application costs, or up to $7,500.  The Minnesota Department of Transportation will not contribute to the costs.  The City’s share of the application costs will be limited to a maximum of $2,500.  City costs are proposed to be taken from the Public Improvement Revolving (PIR) fund.

City staff recommends adopting Resolution #19-249 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $10,000 to prepare an application for funding up to $25 million through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant program for Highway 10 Ramsey Gateway improvements to ensure the City is able to complete the Highway 10 Ramsey Gateway improvements as soon as possible.

Adopt Resolution #19-249 authorizing Staff to utilize Bolton and Menk at a cost not-to-exceed $10,000 to prepare an application for funding up to $25 million through the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Transportation Grant program for Highway 10 Ramsey Gateway improvements.