8d. Memo
R509 Project MOU
r COMMISSION AGENDA MEMORANDUM Item No. 8d ACTION ITEM Date of Meeting October 25, 2022 DATE : October 18, 2022 TO: Stephen P. Metruck, Executive Director FROM: Eileen Francisco, Director of Aviation Project Management Group Eric ffitch, Senior Government Relations Manager SUBJECT: Washington State Department of Transportation State Route 509 Completion Project Stage 2 Memorandum of Understanding Amount of this request: $0 Total estimated project cost: $30,050,000 ACTION REQUESTED Request Commission authorization for the Executive Director to execute an agreement with the Washington State Department of Transportation (WSDOT) supporting the completion of Stage 2 of the State Route (SR) 509 Completion Project as part of the Puget Sound Gateway Program. EXECUTIVE SUMMARY The Puget Sound Gateway Program includes two projects: the SR 509 Completion Project in King County and the SR 167 Completion Project in Pierce County. WSDOT is working toward issuing a Request for Proposal for the construction of Stage 2 of the SR 509 Completion Project. Since a portion of project is within the Port of Seattle corporate boundary, a Memorandum of Understanding (MOU) between WSDOT and the Port has been developed establishing framework for coordination throughout the duration of the project. The Port has certain design requirements or requests to be incorporated into the construction of the project, which include property access from South 200th Street, Southern Airport Expressway (“South Access”) forward compatibility, signage on South 188th Street, detention pond treatment, landscaping, and maintenance of traffic. JUSTIFICATION The Port of Seattle and the Northwest Seaport Alliance consider the completion of the Puget Sound Gateway Program to be critical to a vital freight corridor that supports the movement of goods to and from our seaport facilities and our Seattle-Tacoma International Airport. The program provides direct freight links between our facilities and key distribution centers and improves regional mobility for goods that arrive in the Puget Sound from Eastern Washington and states along the US supply chain’s northern tier that are bound for international destinations. Template revised January 10, 2019. COMMISSION AGENDA – Action Item No. 8d Page 2 of 4 Meeting Date: October 25, 2022 In addition to the economic benefits of improved freight mobility, any upgrades to the transportation network in the congested Puget Sound region have significant community benefits as well. Communities in South King County, around the SR 509 corridor, have seen the challenging impacts of passenger and cargo growth through the airport and in the region. Upgrading the transportation network that serves their community, is another important reason the Port supports the Puget Sound Gateway Program. DETAILS In 2018 the Port entered into a local funding and phasing MOU with WSDOT and other local agency partners. This MOU identified the Port as one of eighteen local agency partners committed to providing funding commitments supporting the completion of the Puget Sound Gateway Program. The Puget Sound Gateway Program includes two projects: the SR 509 Completion Project in King County and the SR 167 Completion Project in Pierce County. The SR 509 Completion Project is to be completed in three stages: • Stage 1a: WSDOT partnered with Sound Transit’s Federal Way Link Extension project to build a new SR 99 bridge near South 208th Street and new walls to reduce noise to nearby neighborhoods. The partnership reduces construction impacts by building both projects at the same time. Work is expected to be complete in late 2022. • Stage 1b: This stage is also called the SR 509/I-5 to 24th Avenue South – New Expressway Project and builds the first mile of new SR 509 Expressway, new I-5 ramps, new 24th Avenue South interchange, and a new bridge. • Stage 2: This stage is also called the SR 509/24th Avenue South to South 188th Street – New Expressway Project, is the project's final stage. WSDOT will build the remaining two miles of new SR 509 Expressway, reconfigure SR 509 interchanges at South 188th and South 160th Streets, and add a southbound auxiliary lane on I-5 between SR 516 and South 272nd Street. In 2020 the Port entered into an Interlocal Agreement with WSDOT that identified the Port’s financial commitment in support of the SR 509 Completion Project. The Interlocal Agreement identified $15 million in funding to support the first phase with a commitment no earlier than December 2023. It also identified up to an additional $15 million in funding for the second phase with a payment schedule to be determined by both parties. An additional $50,000 has also been identified for staff costs to support of the design and construction of the SR 509 Completion Project. This request is to support the execution of a MOU that includes a number of design and construction components for Stage 2 of the SR 509 Completion Project. This MOU is essential to support WSDOT’s procurement of the design-build team and includes requirements for runway protection zones, South 194th Street local access, forward compatibility for the Southern Airport Expressway (“South Access”), signage on South 188th Street, landscaping, maintenance of traffic strategies, detention pond treatments, and South 200th Street property access. The SR 509 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8d Page 3 of 4 Meeting Date: October 25, 2022 Completion Project will also require permanent and temporary construction easements on Port property but these actions do not require Commission authorization. Schedule Stage 1a is currently in construction with work expected to be complete in late 2022. Stage 1b is also in construction with work expected to be complete in 2025. Stage 2 is in preliminary engineering with work expected to be complete in 2028. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 – Do not support the SR09 Completion Project Cost Implications: $17,000 in expense costs to date Pros: (1) Lower financial contribution by the Port Cons: (1) Does not support improvements to the vital freight corridor that supports the movement of goods to and from our seaport facilities and SEA (2) The Port would violate its Interlocal Agreement with WSDOT and the MOU with other local governments supporting the Puget Sound Gateway Program (3) The Port would potentially compromise its relationship with the Washington State Legislature This is not the recommended alternative. Alternative 2 – Support the SR 509 Completion Project Cost Implications: $30,050,000 Pros: (1) Supports the SR 509 Completion Project (2) Provides improvements to the vital freight corridor that supports the movement of goods to and from our seaport facilities and SEA (3) Consistent with the Interlocal Agreement and MOU supporting the Puget Sound Gateway Program Cons: (1) Higher financial contribution by the Port This is the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA – Action Item No. 8d Page 4 of 4 Meeting Date: October 25, 2022 FINANCIAL IMPLICATIONS Annual Budget Status and Source of Funds The $30 million Port contribution is currently written into the Port’s Plan of Finance. The initial $15 million contribution is scheduled to begin no sooner than December of 2023. The funding source for this agreement would be the tax levy or general obligation bonds. The timeframe for the remaining $15 million Port contribution was based on the timeline put forward by the Washington State Legislature in their 2017-2019 transportation budget. Since the project was accelerated that disbursement is being reviewed. Once defined the original Interlocal Agreement will be amended and will be part of a future Commission action and briefing later in 2023. ATTACHMENTS TO THIS REQUEST (1) Draft memorandum of understanding PREVIOUS COMMISSION ACTIONS OR BRIEFINGS January 7, 2020 – The Commission authorized the Executive Director to execute an Interlocal Agreement with WSDOT regarding the SR 509 Completion Project October 22, 2019 – The Commission conducted the second reading and passed Resolution 3762, a resolution to surplus and sell real property to WSDOT in support of the SR 509 Completion Project October 8, 2019 – The Commission introduced Resolution 3762, a resolution to surplus and sell real property to WSDOT in support of the SR 509 Completion Project, and conducted the public hearing May 22, 2018 — The Commission authorized the Executive Director to execute the Puget Sound Gateway Local Funding and Phasing MOU with other agency partners November 22, 2017 – The Commission convened a roundtable on “Increased Travel to and from the Airport over the next 20 years” which included a briefing on the Puget Sound Gateway Program Template revised June 27, 2019 (Diversity in Contracting).
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