Item 6d Memo
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 6d Date of Meeting January 13, 2009 DATE: December 24, 2008 TO: Tay Yoshitani, Chief Executive Officer FROM: Charlie Sheldon, Managing Director, Seaport Dakota Chamberlain, Manager, Project Management, Seaport SUBJECT: East Marginal Way Grade Separation Project Update BACKGROUND The East Marginal Way Grade Separation project proposal was initiated by the Port in the mid 1990s as a solution to anticipated delays to general traffic in the vicinity of East Marginal Way and Duwamish Avenue south of Spokane Street. At this location, rail activities associated with increases in containerized shipping, due to the Port's Terminal 5 and 18 expansions, are expected to result in unacceptable delays for general and port truck traffic in the near future. The project alleviates these delays by constructing a new overpass over the existing BNSF Railroad and Union Pacific Railroad tracks at Duwamish Avenue. (See attached graphic.) The project is an integral component of the Freight Action Strategy (FAST) Corridor, a partnership of public and private organizations, including the Port of Seattle. The FAST Partnership's mandate is to improve freight mobility and mitigate its impact on local communities in the Everett to Tacoma corridor. On April 11, 2006, the Commission provided project-wide authorization for all project-related activities, and approved a total of $34,500,000 (including grants and contributions from FAST Partners) in funds for the project. Since then, the project has substantially completed the following activities: Permitting, right-of-way acquisition, design processes, advance construction work, including demolition of existing buildings and utility relocations. Since 2006, the construction world has seen major increases in costs. Rising real estate values impacted project costs as did delays in utility relocation. Current estimates place the total cost of the project at $50.7 million, compared to $33.5 million two years ago. The project is about to meet its next major milestone - advertisement of the major construction contract(s) related to the bridge structure. This briefing is to inform the Commission of the current status of the project, to answer questions in preparation for a future request for authorization to advertise and award major bid contracts, and to increase the amount authorized for the project by $17.2 million to a total of $50.7 million. COMMISSION AGENDA T. Yoshitani, Chief Executive Officer January 9, 2009 Page 2 of 3 FUNDING Current Seaport thinking is to reallocate some funds from the committed CIP 800259, South T- 25 Container Yard and all funds from the public transportation project C100845, East Marginal / Spokane Transportation Hub to cover the additional cost of the East Marginal Way Grade Separation Project. Further, the Port has specifically applied for $16 million in federal stimulus package dollars, which if received, would be applied directly to this project as funding for the additional cost. p:\corporate\comm\commrec\mtgmemos\2009\jan 13, 2009 rm\6d.doc
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