Consider approval of Master Cooperation, Funding and Delegation Agreement for the Ramsey Rail Station

Over the course of the last six months, the Ramsey City Administrator and Public Works Director have participated on the Ramsey Rail Station Project Management Team (PMT). The purpose of this case is to provide the Council an update on those meetings and receive City Council approval of the Master Cooperation, Funding and Delegation Agreement which was given to the City Council in draft form at work session on April 26, 2011. The most recent agreement is attached for your convenience. If a more recent version comes to us we will forward that to you before the City Council meeting on Tuesday night.

The Northstar Ramsey Rail Station has been identified as a high priority by the Ramsey City Council during the strategic planning session that was held earlier this year. Within the last 2 years, the City of Ramsey has partnered with the Anoka County Regional Rail Authority (ACRRA) by jointly completing the design, cost estimates and environmental documentation of the rail station.

On April 26, 2011, the City Council was also provided a copy of a sample agreement to enter into the transit taxing district which would be a requirement to begin rail service. This is consistent with the Metropolitan Council's requirements and past practice when transit is introduced to an area that is not currently in the transit taxing district.

The Master Cooperation, Funding and Delegation Agreement which will be between Metropolitan Council, Anoka County Regional Rail Authority and City of Ramsey covers issues with respect to the implementation, construction, ownership and operation of the proposed project. It also generally defines the scope of the project and delegates the responsible parties as far as cost, construction administration and operation. In this case, the project is generally budgeted at $14.3 million (which does include the skyway connection to the parking ramp) and is defined as:

Right of way from BNSF
Payment to design support, construction, and project management contractors
Staffing costs directly incurred by this project

It also defines the contributions to the project as follows:
 
State              $4.00 million
Met Council    $1.30 million
ACRRA            $1.30 million
CTIB               $3.00 million
City                 $4.75 million

The ACRRA will bid the project, the Metropolitan Council will administer the project and manage the construction and ultimately own and operate the rail station.

There will be a few other agreements that will be necessary for the City Council to consider to proceed with the construction of the rail station. They are as follows:
•A Master Cooperation, Funding and Delegation Agreement which will be between Metropolitan Council, Anoka County Regional Rail Authority and City of Ramsey. This is the agreement that is being considered tonight.
•The attached agreement with the Metropolitan Council for the entrance into the transit taxing district. A draft agrement is attached is being negotiated at this time. Any comments regarding this agreement should be forwarded to the City Administrator or Public Works Director.
•A Lease Agreement to discuss the parameters of maintenance. Most of the stations are owned and operated by the Metropolitan Council except the parking lot adjacent to the Anoka Rail Station. Attached is a copy of the Anoka Lease to give you an idea of the types of issues that that will be discussed.

Staff recommends approval of the attached Master Cooperation, Funding and Delegation Agreement for the Ramsey Rail Station contingent upon successful negotiation of the transit taxing district and lease agreements subject to the review and approval of the City Administrator and City Attorney.

City Funding for the rail station contribution is outlined as follows:
TIF 1 - $650,000
TIF 2 - $4,100,000 (Will need to set up an interfund loan from Landfill Fund for TIF Increment from 2012 & 2013)
This removes TIF funding for the McKinley Street Project near Commercial Asphalt

Motion to approve the attached Master Cooperation, Funding and Delegation Agreement for the Ramsey Rail Station contingent upon successful negotiation of the transit taxing district and lease agreements subject to the review and approval of the City Administrator and City Attorney.