Template revised September 22, 2016 COMMISSION AGENDA MEMORANDUM Item No. CTION ITEM May 23, 2017 Amount of this request: 595,000 Total estimated project cost: 595,000 ACTION REQUESTED EXECUTIVE SUMMARY JUSTIFICATION ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, DETAILS Established in 1998, the FAST Partnership has pursue funding for high priority transportation impr ovements along the Puget Sound corridor between Everett and Tacoma. FAST is a partnership of state, local, and regional agencies, including Puget Sound ports, and the railroads. Its goals are to improve mainline rail capacity and connectivity, elimina te roadway chokepoints where rail and arterial roads intersect, provide safe rail crossings in communities, and establish reliable truck links between ports, rail yards, and freight distribution centers. Phase 1 of the S. 228 Street Corridor is open to traffic and provides access from the Kent valley up the west hill to I 5. Phase 2, a grade separation at the BNSF crossing is also open to traffic, completed in 2009 , with Port participation of $595,000 Phase 3 of S. 228 St Corridor is fully funded and t he Port funding of $595,000 is approximately 3% of the project cost , leveraging other federal, state and local funds Scope of Work he City of Kent will construct a grade separation at the UP rail lines on S 228 St to complete e corridor connection between 84 Avenue S and Military Road/I 5. The Puget Sound Gateway program completion of SR509 will also improve connections to this local corridor. Schedule The City anticipates completing final design in 2017. Construction is estimated to begin early and ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Status Quo Do not authorize new greement , refresh ing the 2009 Agreement. Cost Im plications he Port has budgeted $595,000 for this, so that funding would be available for alternative investment. Pros (1) Since the City did not construct the overpass within the timeframe of the original agreement, the Port is no longer required to make this payment. Cons (1) he Port would not fulfill our partnership responsibility as anticipated for this FAST Corridor investment, as outlines in the 2002 FAST Corridor Phase 2 agreement. (2) City of Kent would need to seek replacement funding from other partners. This is not the recommended alternative. ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, Alternative 2 Authorize the Interi m Chief Execu tive Officer to Execute the Agr eement with the City of Kent to contribute $595,000 for the S. 228 Street Overpass. Cost Implications: $595,000 funding is included in the Port Plan of Finance as Public Expense. Pros (1) Fulfills our partnership agreement in the FAST Corridor Partnership (2) Consistent with Port funding plan (CIP#C001786, Project ID 104247). Cons (1) Forecloses investments in alternative public expense projects. This is the recommended alternative. FINANCIAL IMPLICATIONS Cost Estimate /Authorization Summary PROJECT COST Public Expense Total City of Kent S. 228 St. Phase 3 Participation 595,000 Budget Status and Source of Funds The 2016 Plan of Finance includes $ ,000 for this project as a future use of tax levy fund. Financial Analysis and Summary CIP Category / Project Type Regional Transportation / Freight Mobility Effect on business performance (NOI after depreciation Spending on this project will be expensed as incurred, as a non operating expense over the city’s construction period. IRR/NPV (if relevant) CPE Impact ATTACHMENTS TO THIS REQUEST (1) Presentation slides (2) Draft agreement PREVIOUS COMMISSION ACTIONS OR BRIEFINGS April 21, 2009 The Commission held Second Reading and passed Resolution 3615 , authorizing the CEO to enter into Agreements with the Cities of Seattle and Kent, and make a direct Port contribution of $1690,000 plus Port staff and consulting resources to FAST Corridor P hase 2 project in Seattle and Kent. April 14 , 2009 The Commission First Reading of Resolution 3615, as above.