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Home My WebLink AboutR-2006-033 authorizing City Manager to execute applications, certifications and agreements re: Public Works Trust Fund loan for $3,A RESOLUTION RESOLUTION NO. R-2006- 33 authorizing the City Manager to execute applications, certifications and agreements pursuant to an application for a construction loan from the Washington State Public Works Trust Fund in the amount of $3,000,000 for Grade Separation Project improvements to Lincoln Avenue and B Street. WHEREAS, the City of Yakima has determined that railroad grade separations are needed at Lincoln Avenue and B Street for health, safety and well being of the people; and WHEREAS, the cost of construction of these grade separations are eligible for Washington State Public Works Trust Fund loan financing; and WHEREAS, the amount of local match funds provided will allow the City a generous interest rate of 0.5% on the $3 million loan; and WHEREAS, it is necessary that certain conditions be met as part of the application process; and WHEREAS, RCW 43.155.060 requires that the project will be advertised for competitive bids and administered according to standard local procedure; and WHEREAS, the loan will not exceed the maximum amount allowed by the Board of eligible costs incurred for the project; and WHEREAS, the City of Yakima certifies that it meets these requirements, and further that it intends to enter into a loan agreement with the Public Works Board, provided that the terms and conditions for a Public Works Trust Fund loan are satisfactory to both parties; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manger is duly authorized to sign the application, loan agreements and amendments, and other documents relating to the Grade Separation Project for Lincoln Avenue and B Street for the 2006 — 2007 Public Works Trust Fund loan program. ADOPTED BY THE CITY COUNCIL this 7th day of March, 2006 ATTEST: David Edler, Mayor City Clerk TO: FROM: SUBJECT: MEMORAND UM February 12, 2006 K. Wendell Adams, P.E., City Engineer Bob Desgrosellier, Senior Engineer J1' Freight Summit and Interview on 12/7/2005 The summit video is no longer available, however, I did forward you the PowerPoint from Andrew Johnsen that he sent to Page Scott. I have called the Clerk's Office asking if they have a copy of the summit and so far, they do not have a copy of it. However, I have reproduced my notes from the Q & A portion of the summit that I took during Mr. Johnsen's presentation. Bob's notes: After Mr. Johnsen's presentation, the following came up during the Q&A period: Senator Deccio asked Mr. Johnsen if the rail through Yakima would be returned to a short line again? Mr. Johnsen said: "No. Contrary to that, since they sold the line to Central Washington RailRoad (CWRR) they have bought it back. It has a big future and is an integral part of the system for BNSF's future." When asked about the future of Stampede Pass, Mr. Johnsen stated that: "the future shows modest growth for this pass. It is a steep pass but it is well positioned to be a well-suited corridor for the ports and built for container cars, (but that) there is a need to crown the stampede Pass Tunnel (for double -stacking)." Senator Deccio asked "what is the number of trains over Stampede Pass heading to Pasco?" Mr. Johnsen responded: "8 to 12." The Chamber of Commerce Representative asked Mr. Johnsen about the business plan regarding Stampede Pass and with the grade separation projects (in Yakima). Mr. Johnsen answered: "Yes, definitely. BNSF will be a contributor to the solution and yes for a financial contribution. BNSF sees it as a safety benefit too." Although the main video may not exist anymore, I was able to acquire the video that YCTV took during the lunch hour on 12/7/05. I have transcribed highlights of the 30 -minute interview and present those here: Present: Allison Smith, Port of Tacoma, Howard Granger, Port of Seattle, Jim Toomey, Port of Pasco and Andrew Johnsen, BNSF. When asked of projected traffic at the ports, Howard Granger stated that the ports will double their freight activity by 2020 mostly due to Asia and China cargo. Traffic actually is up 20% in 2005 over 2004. On the same questions, Allison Smith stated that container traffic had doubled before in 13 years and has since doubled again in the last 5 years. Also, Jim Toomey talked about the Freight Mobility Board working toward meeting the needs of the State and to mitigate increased traffic volumes of rail and truck freight. Andrew Johnsen offered that BNSF is planning for the increases of freight traffic. All other rail routes in the state are near or at capacity while currently Stampede Pass has 8 to 12 trains per day. Stampede Pass is their growth opportunity and is important to their rail capacity equation. They had to invest a lot of money to bring Stampede Pass back. The long tunnel on this pass allows only single stack cars currently. This route is best equipped to ship non - grain trains, as they are not as heavy. The weight of grain cars would mean the need for many more locomotives to bring a heavier train over the pass. Grain trains would be best to bring through the Columbia Gorge. Stampede Pass would be very suited to double -stack trains but the tunnel would need to be crown cut. BNSF would like this crown -cutting as soon as possible, it's a question of available resources. Mr. Johnsen also offered: Stampede Pass is a steep pass. BNSF has tested and it takes 7 to 8 locomotives to pull a train over it. Of course they could double the capacity with double stacking with the same length of train. When asked if it could lead to more trains, Mr. Johnsen added: for the short term it makes a viable option. It still represents growth and capacity opportunity in Washington State. Stevens Pass is slated to reach capacity in 2010. The ports added that Southern California is at capacity. Mr. Toomey said there are good points regarding the other grade separation projects along the Stampede Pass route. When asked what is the driving force behind the increases, Mr. Johnsen responded that yes, it is revenue and profit motivated. The Pacific Northwest is well positioned. BNSF has invested over $150 million in Washington in 2005 and is looking for a return on their investment. This will come not only from Asian markets but to meet grain needs and those shipping increases. The ports added that we are missing a market if we let empty containers be shipped back to the Pacific Rim. We have the opportunity to fill these trains and ships with our products. What of the number of trains slated to come through Yakima? Critics say the city is coming up with these increased train numbers on their own. Nothing was really in reply to this but Mr. Johnsen sis add that FMSIB is a good evaluator of the needs and trends in growth and freight activity across the state. 2 • oreign : ailouts or U.S. Airlines. GM: Its Death Is Exaggerated r FEBRUARY 13, 200 WWW.FORBES.CO GLOBAL TRADE HAS RAILROADS HUMMING AGAIN. NORFOLK SOUTHERN I5 LEADING THE WAY. Wick Moorman Chief Executive RBXBCBGJ ******MAUTO*f5-DIGIT 98901 4FR80008066508/1# 00001 11JAN07 1322 ACQUISITIONS DEFT 20995 YAKIMA ULY REGL LIB F137 102 N THIRD ST 99 YAKIMA WA 98901-2759 Norfolk S The boom in global trade has made the rail business hot again. is leading the way by adding technology, marketing and customer service to a sooty old business 's 5 -mile long art, Ind. looks Heaps of rusting arrels and stacks of d ties e dreary expanse. f brown struggle through coarse gravel. The trains are shipping flat - panel televisions and other things that did not even exist a decade ago. So where is the railroad's new technology? Look above the drab boxcars sparsely covered with chipped paint and the 120 train tracks into a glass -walled control tower at the center of the yard. There sit five operations workers behind twinkling computer screens. It is here that Norfolk Southern has finally learned how to run a railroad. All railroad companies are booming these days, thanks to the rise in oil prices, which has made rail -shipped coal more attractive, and to the flattening of the world's economy, which has sent steel, grain and televisions coursing around the globe. U.S. railroads did 1.7 trillion ton -miles of traffic last year, up 2.4% from 2004. Norfolk Southern is shipping these goods more efficiently than competitors like CSX and Union Pacific because it decided to haul a 19th - century business into the 21st. Norfolk's logistics—involving the use of algorithms that search for the shortest routes, fastest tracks and fewest han- dlings—essentially got the trains to run on time. Remarkably, that hoary concept had been ignored by the industry until Norfolk made it a priority. Just a few Nor- folk advances: Carload volume is up 14% since 2000, but the number of cars needed to move that volume has dropped 11%. Average speed is up 7% to 22 miles per hour. Average time in the yard, called dwell time, is down 7% to 23 hours. Indeed, Norfolk's system is so far 96 F OR B E S• February 13, 2006 ahead of other railroads' that it sells its software to rivals. The ultimate compe- tition, after all, is trucks. All of this has made Norfolk's recent performance recall the Jay Gould era: Its revenues grew 17% during the most recent four quarters (through September 2005) to $8.2 billion. Profits have grown 66%, from $700 million to $1.2 billion. Nor- folk Southern's discipline gives it the best net margins of the U.S. railroads. Its 14% bests Burlington Northern's 12%, CSX's 11% and Union Pacific's 6%. The company's share price is up 85% since the beginning of 2004. Norfolk's new chief executive officer embodies his company's transformation. Since its maiden run (a 6 -mile route near Charleston, S.C.) on Christmas Day 1830, the company has been overseen by bankers, operation chiefs and even tax lawyers. On Nov. 1, 2005 Charles (Wick) Moorman took over. He was formerly head of information technology. "We were once the Internet of our day, and now we are again as relevant as we have ever been," says Moorman, 53. Haven't we heard this before? Sure, but Moorman and many on Wall Street argue that this isn't just a cyclical upswing. As manufacturing has moved abroad, more finished goods need to crisscross the country from ports. Sourcing of parts and materials is also ever more global. WI/ NOM 033U These trends are unlikely to retreat. Norfolk, like the rest of the railroad industry, spent a half -century in a siege mentality, slouching along by shrinking and slashing costs, tangled in rat's -nest mergers and wrestling with its feather- bedding unions. In 1955 a million people worked for the big U.S. railroads; now just 160,000 do (29,000 at Norfolk). Yet while productivity boomed—ton-miles moved per employee have increased to 11 million from just 600,000 in 1955—the industry was unable to raise prices from 1980 to 2004. It suffered from overcapac- ity and bad service, and the newly dereg- ulated trucking industry was siphoning trains to run on a tight schedule and thereby move more trains through the system faster and more reliably. To the train industry this concept was revolutionary. "I came from the `We're the railroad, we'll get to your load when we're ready' days," says Brig A. Burgess, a second -generation rail man who started with the company 30 years ago building bridges and is now in charge of Norfolk Southern's busiest region, which encom- passes most of the upper Midwest. "This was a huge change." Like most railroads, Norfolk Southern used to run on an ad hoc basis—a train would leave the yard when it was ready. cars were sitting on Norfolk Southern's tracks, the higher the fees charged to those companies. And, of course, the delay might rankle customers whose stuff was sitting on the tracks for an extra day. Moorman wanted a technology answer, so he bought software from a small firm called MultiModal Applied Systems. Norfolk Southern was looking to determine how it could best deliver its cars—by avoiding unnecessary stops, finding the best meeting points for the cars and making the fewest trips to switching yards. Two months of waybills, or 2.5 million shipping orders, were inputted into the software. Rail -carried shipping container traffic is up 380/0 since 2001. customers. It was rare when a large rail- road earned even its cost of capital. In 2000 Norfolk's David Goode, then chief executive (now chairman), had had enough. "We were losing business, and we were losing pricing power, too," Goode says. "The only way to change the game was to concentrate very hard on improv- ing our service—that's the basic product we have—so we could sell it better." While competitors pulled in reins, Norfolk Southern continued to spend on engineers and conductors, despite Wall Street's frowns. Most importantly, Goode assembled a group of employees under Moorman to overhaul how the company ran its network. The goal: To get the There were schedules, sure, but they were written in pencil. If a yardmaster was faced with a so-called light train, one with just 60 cars, he might let it sit in the yard for another day until another 60 cars bound for the same location came in. The yardmaster assumed he was saving the company money by not using a crew and fuel to run a light train. But the long train brought costs of its own. Ten trains would arrive in the span of two hours, then there would be none for eight hours. Locomotives and crews got bunched up in yards when they were needed elsewhere, so the company had to pay for extra crews to move the locomo- tives around. The longer other railroads' The finding: waste and inefficiency. For instance, sections of different trains headed from Birmingham, Ala. to Allen- town, Pa. would follow each other, getting joined at stops along the way, such as Lin- wood, N.C. and Lynchburg, Va. The sys- tem didn't know that the complete train to Allentown could have been put together in Birmingham. "We could get the train going in the right direction, but we didn't know where it was ultimately going to end up," explains Bryan Harres, who runs the Atlanta operation center. "All we were seeing was where the car was wanting to go next. We didn't know if we had 5 cars or 50 cars going to that same final desti- F OR B E S• February 13, 2006 99 1" Birmingham ,` Knoxville Allentown �JRoanoke • • nation." Starting in 2002, the new soft- ware could accomplish that task. The software also worked to reroute trains around trouble spots that could delay delivery. Planners assigned "imped- ance" values to points in the network. A big switching yard like Elkhart would Railway Rulers Last year Norfolk Southern went through the entire exercise again, this time developing software internally that can now continually adjust to changing or temporary conditions and suggest new trains, routes and times. In July, for exam- ple, while the Elkhart yard was rebuilding The system also allows the company to price its service better. Now sales represen- tatives can see if a new customer's cars can easily hitch onto a direct train or whether they will need to take a more circuitous, and costly, route. The company says the two operating The West Coast haulers, Union Pacific and Burlington Northern, are the biggest. Next, the two East Coast players, then the Canadians. The Big Six railroad revenues, most recent 12 months, In billions of USD $5.9 Canadian National have a low value, because it could handle a lot of traffic quickly, while a small yard would have a high value. Double -track rail would have a low value, and single- track sections a high value. The software would then add up the impedances just like an electrical engineer adding up impedances in an amplifier circuit. 100 F O R B E S• February l3, 2006 26 miles of track, the system diverted 500 cars a day to other yards. Customers did- n't notice. When Hurricane Katrina hit, the system rerouted trains scheduled to be switched in New Orleans, and later shuffled new trains into the schedule to haul thousands of mobile homes from Elkhart to Louisiana. $8.6 CSX overhauls cost $5.8 million and resulted in annual sav- ings of $100 million. Once the train is rolling through the system, it is gov- erned by another array of computer programs. A car in a yard that is in danger of missing its train will show up yellow on the system in front of those folks in the Elkhart control tower, so they will know to move it quickly to its train. New tools are also being given to the dispatcher. Now dispatchers can view only the traffic in their region. Under the new system, software will analyze the entire Norfolk network every hour and, to keep traffic flowing efficiently, suggest changes in speed, rout- ing and train meeting places. Burgess has been able to tap into the company's systems to discover countless minor, easily fixable problems. He found to s, ig s. that a furniture maker near Elkhart would let cars full of wood sit on tracks every year at the same time, clogging the rail sidings. It turns out the furniture maker would buy a whole year's supply of wood when the price was good but didn't have the space or the manpower to unload the big shipments. Norfolk South- ern simply provided storage for the cus- tomer's cars off the network. "What we found is that customers need help fixing $13.2 Union Pacific ��I.riw s12.a f f SLIM FILMS FOR FORSES Burlington Northern Santa Fe Sources: Bloomberg; Reuters. their own problems," says Burgess. Timeliness has also allowed Norfolk Southern to get more business from its traditional rival, trucking companies. As measured by ton -miles, trucks controlled 32% of the nation's freight in 2002, the most recent year statistics are available, while trains delivered 28%. By value, though, trucks hauled 64% of the market, to trains' 4%. But the trucking industry has been beset with a chronic shortage of drivers, rising fuel costs, clogged highways and new federal rules that reduce the number of hours truckers can drive. So, slowly, trains are starting to take business from trucks. Even trucking companies them- selves, like Schneider National and JB Hunt, are turning more to rail. They drop containers onto flatbed rail cars, then pick them back up on the far side. This truck -to -train traffic is up 18% since 2002. On a train one crew of two men can haul hundreds of 40 -foot con- tainers. A train can carry a ton of goods 202 miles on a gallon of fuel, while a truck can take it only 59 miles. Also, rail- roads don't pay as much fuel tax as truck- ing companies. Fair enough, since the taxes pay for asphalt. Paul Bergant, who runs JB Hunt's intermodal business, said his company began using Norfolk Southern in 1998 and now puts 250,000 loads a year on its 1111111 , tracks. "That's faith," he says. "As they have improved their reliability and ser- vice, it has allowed us to move more and more with them." James Ginochio, Toyota's U.S. rail logistics manager, says any haul shorter than 500 miles will almost certainly go by truck, and anything longer than 1,000 miles by rail. Distances in between are up for grabs. "On a short -distance move, the more they can tighten their consistency and performance, the more business they can get," he says. Norfolk's growth presents Moorman with his next problem. Technology notwithstanding, at some point Norfolk Southern, and the country's other rail- roads, will have to build. Moorman's answer: Go east. He wants Norfolk Southern to be the primary rail carrier for imported goods from East Coast ports. The West Coast ports are clogged, so Moorman thinks more container ships carrying Asian goods bound for the Midwest and East will dock east of the Mississippi. The port of Norfolk is undergoing an $880 million expansion that it hopes will attract the ships. Nor- folk Southern is spending up to $100 million to upgrade its main route from Norfolk to Columbus, Ohio, where it is building a yard at the old Rickenbacker Air Force Base to offload the double - stacked containers. (The federal highway bill includes an additional $90 million for this project.) "We are going to have the shortest high-capacity route from the port of Norfolk into the Midwest, and we think that that will pay big divi- dends for us," he says. Norfolk Southern's slick systems and tight schedules don't make it immune to a slowing economy, a dip in coal demand or pullbacks in Asian trade. But provided it manages all the newfound traffic smoothly, investors may see gains from a railroad company the likes of which haven't been seen in decades. "There were a couple of times during my 40 -year ca- reer where people wouldn't have given very good odds on the private rail system even surviving," Chairman Goode says. "But now the business is established in a growth pattern, and it's got legs." F F O R B E S• February 13, 2006 101 "SONY CREATED THE WALKMAN, HANDYCAM AND PLAY - STATION, WHAT COULD THEY POSSIBL NEED FROM FRANCE?" • Presentation City of Yakima Railroad Grade Separations Desired Outcomes That the Participant Will Attain ■ Clear understanding of how we got here ■ Confidence in justification for the project - Demand - Technical - Public Safety ■ Clear understanding of the remaining process ■ General understanding of how and when impacted properties will be addressed - What can be considered IOC04 • aatorno.....gorn 1,ka. 4(5.0*A10A11..arl.C.,, up. Cr:if .•;"6.7./"..."1:=*"."'""..".. ••• • 4,4 •••• .01•.0,==. rot" 428.11 qba, wm• S..1. ie Peet Nab II it obiVb131C .eiertSg, 4:84 3fivu IACKWARD CLAICI 25 ran i. ^ hod I. alt g:;gztrzr a:v.= ...Or...a Ratio Ittaryiare 4=2"' a TO. sava In X* Orr ran at IS& OS 10401, Jan Igo boo • Irraoratra nom 14.•404.2= lOy.t.atxtra tr. `NO. aas. a4 4...00414 0.• Va. Nora.' raw.. 1.141.......Otlar. Oat arr.. row. au** Nam 4,11411.4 wog .a.avl u. 8.1.4.0.404.444..... ,09,44,44 aR araloao111044....1.. ba rea. arriot Oa O • 19.101100 ma or afta. avarrory...a.. ...a a rt. ma... Ear tee Nwmarra. 04140; Moon, praapiratiarrnea. On, ams41 at sigl_ aalit. Tactroaue:„ • " ..14444.44.1.1nro ..00 4 or. • 114444.40tro. arp4.1.4. .,+'.".",-,.............,.......,,...y........-rv...* With :1114-mPalStb°1rrtl,la7---'---.C14,51tettil."e6"''' ---- --m--alroa *.a‘ ............ arra ......... 4.2... : .......,...i.7..... 4 ara............ C. ...4............ a........'''- ...... - .....-.. carrl.........4-004. ........Vr......ora....."*.' ........,...._,O.........,-...... ..4.....a. ....rig.' 4 „..„. ......... ..: ....,., rt........ a47p.. .........4... .+41...1 .. .........er.7. tor'''. ....... *arr. ....... to ..............' ..,.:44.0.4:, ..w....... - P'l Yakima Grade Separations - Historic, Timeline • Late 1800's - Railroad is built and the city of Yakima is built around it • Late 1940's - Grade separation study conducted by the city of Yakima • Late 1940's - Walnut Street underpass is constructed • Early 1950's - Overpass is proposed at B Street but later abandoned due to local resistance • Mid 1960's - Nob Hill overpass is constructed • Late 1960's - Underpass at Yakima Avenue and overpasses at B Street and Lincoln Avenue are proposed, but again abandoned due to local resistance • Early 1970's - Underpass at Walnut Street is rebuilt • Early 1980's - Auburn to Pasco railroad mainline is closed • • • • • • Yakima Grade Separations -Historical Ti e|iOe • 1996 Aubum to Pasco railroad mainline is reopened with $135 million investment by Burlington Northern o 1998 - City of Yakima proposes elevated rail from Wainut Street to | Street at a cost of $80 million • 2000 - State rejects application to help fund the elevated rail effectively eliminating that solution from further consideration " 2001 - The City undertakes a study to determine the most feasible ways . to eliminate at grade crossingsetAaohofthe7nemahningat-guada crossings. Overpasses are proposed at Mead and Washington. underpasses at Yakima, B, Lincoln and !. and closure at D • Late 2001 - A proposal for underpasses at Yakima, B, and Lincoln is presented to the public as the first crossings to be constructed Yakima Grade Separations - Historical Timeline • 2002 to 2003 The Yakima underpass is dropped due to local opposition and preliminary design is completed for underpasses at B and Lincoln • 2004 to Present - Funds for tho B and Lincoln underpasses are raised and environmental documentation is prepared. Both activities are nearly completed • Present to 2007 - Complete final design ~ 2007ho2003- Construct B Streeand UnoonAvenue"derpaanoo ' - ° Future - Fropose other grade separations if the need and funding materializes ace Transportation Board ■ Stampede Pass railroad operations cease in 1983 • In 1996 BNRR seeks STB approval to reopen Stampede Pass for transcontinental rail service through Yakima • STB approves reopening the line with no Environmental Impact Statement and with no limit on the number of trains per day through the city. • The City of Yakima, along with other cities, requests mitigation in the form of grade separations for public safety, traffic, noise, and air quality • Testimony before Congressional railroad sub committee regarding impacts and mitigation Clean Air ActAttainment ■ Idling vehicles and locomotives • Federal requirements and conformity • Federal funds and economic health • • • 4 • • • Testimony/Affidavit of Richard A,Zais'Jr. (4-2 997) • 1 submit this affidavit, not to oppose re-establishment of BN's transcontinental rail service through Yakima, but to show that the Surface Transportation Board (STB) failed to do its job in protecting the environment and public safety interests at stake. The STB failed to consider other route alternatives, failed to require adequate mitigation, and failed to find significant enviponrnonta| impacts from the STB`sUackaion allowing � ^' to send ten ormore nlile-longtrains adevU]rnuOh Yakima, rail lines d]athaye-p�sAenthis sortcfraU-for some fifteen years. Testimony/Affidavit of Richard A. Zais, Jr. (4-21-1990 • The STB failed to properly assess the full impact of BN's operations on the community by refusing to hold public hearings in the region and conduct a thorough and complete environmental impact statement. The STB failed to provide adequate time for all affected agencies and municipalities to respond to their artificial deadlines, and to analyze the impact on the public. 5 Testi ny/A idit of Richard A. Zais, , ((4-21--1997 • BN currently sends 4 transcontinental trains a day through Yakima. Each train produces 12-14 minutes of severe automotive congestion and blockage of critical intersections downtown. At ten trains a day, downtown will be congested for a total period of up to 140 minutes per day, about 10% of the time. This has tremendous environmental impacts in the form of restricting emergency vehicle response to public service calls, noise, air pollution, safety and traffic circulation problems, harm to downtown business: and impacts on our investment and effort to develop the motel and historic district downtown. Testimon /A d v of Richard A. Zais, r. (4-21-1 7j • BN officials told representatives of the Yakima County Development Association in August 1995 that "most" of its Stampede Pass traffic "may bypass the Yakima Valley" and use the Milwaukee Road route instead. BN spokesperson David Hatzenbuhler noted this was because the "shortest" most efficient route is the one that makes the most sense." In fact, at this time BN told Yakima officials that sending its long-haul trains through Yakima would produce adverse effects. WCRC owner, Nicholas Temple said: " BNSF was arguing for the Lind to Ellensburg route and was telling (City of Yakima officials) how bad it would be for... • • • 6 • • • Teshmony/A fidavit of Richard A. Zais, Jr. (4-21-1997) • ...the Yakima Valley if they (BN) did not get their wish, "and" BN has argued that the additional train traffic which would result from the opening of the Stampede Pass would be an unwelcome burden to the Yakima Valley." September 12, 1996 letter from Nicholas Temple to Chief of Police Don Blesio Testmony/Affidavit of Richard A. Zrds. Jr. (4211997) On or about April 3, 1996, BNSF spokesman Richard Russack informed the press BN's plans as follows: • BNSF wants to reopen (the Stampede Pass line) now because of the rapid growth of shipping from the Far East at the ports of Tacoma and Seattle. Most of the containerized cargo from trans -Pacific ships is placed on railroad cars and sent east to Chicago and beyond. 7 Tes idavit ot Richard A.Zais,Jr. /4-21- 7' • The impacts on the City of Yakima from increase long distance freight train service can be mitiabed. The traffic and emergency services impacts would be substantially diminished by construction of grade separations at the mjor arterial railroad crossings, such as B Street and Lincoln Avenue. The City Engineer estimates that it will cost up to $40 militon to construct arterials/railroad grade separations at these locations. Testimony/Affidavit of Richard A. Zais,Jr, '4-21'1997) • The impacts on Yakima of four transcontinental trains a day are severe. Impacts of ten trains a day will be worse. Impacts of twenty trains a day or more would be devastating without grade crossing separations. • • • � • • • ntermodal Densities Loaded EIMftnue Empty 8 tiftVievenue Empty 3 UM Railer & Bare nn Source: BNSF Source: BNSF 9 US Railroad Performance: 1964 -2003 Source: Association o American Railroads Washington State Railroad Grade Separation iinc 09� Construction Completed or Under Construction • SR 509/Port of Tacoma Rd - City of Tacoma ■ SR 519/Royal Brougham - City of Seattle ■ 3rd Street SW - City of Auburn • South 277th Street - Cities of Kent and Auburn ■ South 180th Street - City of Tukwila* ■ California Street - Port of Everett ■ Columbia Center Blvd City of Kennewick ■ 41st Street/Riverfront Pkwy - City of Everett • South 196th Street - City of Kent • Ainsworth Avenue/SR 397 - City of Pasco • 8th Street East (Stewart Road) at BNSF - Pierce County ■ Valley Mall Blvd. - City of Union Gap * Underpass similar to proposed B Street and Lincoln Avenue TTri rnnccpc • • • 10 • t • shincjton State Railroad Grade Separation In Planning or Design Stages ■ Stewart Road at Union Pacific - City of Pacific * • Shaw Road - City of Puyallup ■ D Street - City of Tacoma ■ Bridging the Valley (19 Separate Projects) - Spokane Regional Transportation Council ■ East Marginal Way - Port of Seattle ■ North Canyon Road Extension -Pierce County • Lincoln Avenue - Port of Tacoma ■ 228th, 212th and Willis (6 Separate Projects) City of Kent ■ Strander Blvd/SW 27th - City of Renton • Washington and Edison Streets - City of Kennewick ▪ M Street - City of Auburn * Underpass similar to proposed B Street and Lincoln Avenue Trs LOT 1 I I A1 DOW1 TiNK ClUALIMATION THerlitaauTS, 4X as 8.2 wastcrioN SRO Sal laSSPECTION P taUfaSST TO A SECIAIrrr *Grum-eta rat rata SOlarACE TaANSKATATIOal BOER - SIGMA 54780S-8000 TAX 01-2004 ill. 1411 I 1 ii4A; I1isalviii1341-"' 1.11111/5 fiff)';', INT/:111) ____05354„,=m02.1 7,,,NESS V.14:CE011Malll • • • 12 • • • e513 a INSPECT Yakima Fire Department 2004 Station 91 Incidents 13 Fire Time/Temperature Curve 100 - 90 80 - 70 60 50 40 30 20 10 Cardiac Arrest Chance of Survival (% Success/Time) 0 3 4 5 6 7 8 9 10 Time in Minutes • • 14 • • • YAKIMA POLICE DEPARTMENT Raitro ad Analysis aped CAC*iC�iVBdB OAdirip YAKIMAPOLICE DEPARTMENT 2005 Calls for Service CAN * AS SAll LT DOMES TIC • F16NT o WEAPON CADS i1 1 15 Railroad Crossings in Yakima • • • 16 • • • FINAL CONFIGURATION OF GRADE SEPARATION PROJECTS 17 ENV RaROAD BRIDGE RETWNG WAIL EAts#7SED FF.DNT ST. BKI CROSS SECTION ALONG THE UNDERPASS r5w B STREET NEAR 1ST AVENUE (LOOKING WEST) LINCOLN AVENUE NEAR 1ST AVENUE (LOOKING WEST) PRFTPRI Tr A! TERNATIVE TYPICAL CPON • • • 18 • • • 19 Access Detail Area 1 1st Avenue BNSF Mainline Track BNSF RR Bridge ill i111111}1111111IH HI 11111'11111111:11f11111I1I11111111;1 BNSF Meanies Trade l(Illf€IilliHIllllH+l-111111111111111111111111111111111 • 20 • • • Access Detail Area 3 1st Avenue c- $NSF RR erklge E3NSF Mane Track fI 1,-i+LIFIMH111111:111+1MI!!!!!!!!4 21 • • • Project ncing ESTIMATED TOTAL PROJECT COST (as of January 2006) $31'030'000� Committed Funding State Freight Mobility Strategic nvestment Board (FMSIB) $7.000.000 City of Yakima (DirectAflocation of Federal Funds) $2.000.000 Federal Highway Administration (FHWA) ^^ $14`250.080 State Transportation Improvement Board (TIB) $2.500.000 BNSF Railway S1.500.000 TOTAL COMMITTED FUNDING $ 27,250,000 Funding Pending Port of Seattle and Tacoma $200.000 State Transportation Improvement Board (TIB) $3.680.000 Total Funding Pending $3'780.000 TOTAL FUNDING $ 31,030,000 * Roadway construction prices ave increased 21 % in the ast two years (Source: American Road and Transportation Builders Association) °° Includes Front Street ,eao0nmem, utility replacement & historic brick pavers OLD NORTH HISTORIC RENOVATION PROJECT Next Steps March 2006 - Complete National Environmental Policy Act (NEPA) Environmental Assessment (EA) • March and April 2006 - Public Comment on the EA • April and May 2006 - Complete State Environmental Policy Act (SEPA) Environmental Impact Statement (EIS) Process • , May 2006 - Determination to Proceed with Property Acquisitions and Settlements and to Complete Final Design June 2006 to February 2007 — Acquire Properties and Complete Construction Contract Documents February to April 2007 — Bid and Award Construction • May 2007 to April 2009 — Construct Underpasses 24 �m a e�••�awx w-9-1. hw•&sti+wv *ii w�hwTNeN Y `. j-Y"id66_-Y .01. .. .. FryTvi•airi5 Oiliiiiiiii"•T•iii' 'iti -X'7Kfi""-Ml fiS Cr .. SSL?. ...... , ) w. ix rw Kirov —q�gir--47 _'—P•.•mj_ i' hrY diw'i3 {'i'�%8 FNaw•i3u1'in1!,p.__M i .�:Y+. `ti; ir'i {i5< �_—•«"fM�"' Z, C•b a4'tar W�s,P�X §s�b�pW Y W �.Kfawf4 M•. wrn Fr�nlAYnnv ._2^� d f"1><F'�i+1F,ii+rAiirww�x+rXifio Til. ir�i.Ly1Yi. owawYa IF ix. °M Sc,e ➢yw it New �� i4r'rT 'Ya is H �3NW-iiiN MRY , _ 5Gi6id T»i� "q "••hx-ra era -• Yi3YiiT ri '.vZie. rye iii 4 Meir •�� 'G i7i�•i'i"3s T5itlk"F'1i( W +i fid. I • ¢ •s•rir ..f.�W sFr ifw&eT. T ilYi M�l�+-'aP•ww 13e"lion. Yitii'v�dB -Irr�Y.�we-im rnbLtbi6 _ •w. T _._ -nr • ,nit. 4•, N "'YwY�p:is.&bSiF+�p""R1 y "'_3iiGmn M�TiT'•9.i larww'i3'4. 4 :iiitiS iw. 1•SN" �iY�v""Yi w•i RAN 1L1s6/i •• Aaii<> tiFii' 7,"i %voYrY•'iw •1RP-•_ . wwp -_ _ q tlnweb6RawRir�.- �`._-r' ��Yni"ilYN'�'.'�ota__ ?•ear.... ,—, Next Steps March 2006 - Complete National Environmental Policy Act (NEPA) Environmental Assessment (EA) • March and April 2006 - Public Comment on the EA • April and May 2006 - Complete State Environmental Policy Act (SEPA) Environmental Impact Statement (EIS) Process • , May 2006 - Determination to Proceed with Property Acquisitions and Settlements and to Complete Final Design June 2006 to February 2007 — Acquire Properties and Complete Construction Contract Documents February to April 2007 — Bid and Award Construction • May 2007 to April 2009 — Construct Underpasses 24 • Sources other than the City are convinced ra traffic across Washington State wili continue to rise' • BNSF invested $135,000,000 to reopen the Stampede Pass line which includes the main line through Yakima. Their other two east/west routes across Washington State are at or near capacity. • The Ports of Tacoma and Seattle continue to build and expand. These ports depend on rail traffic across Washington State 10 serve ships to and from the Pacific Rim. • BNSF has plans to make improvements to the Stampede Pass tunnel in order to allow for increased capactty On numerous occasions, 8NGFo#ioim|s have provided projections that indicate steady growth in rail traffic for yearsto come. = Cities across Washington State have completed p have projects underway to minimize the impact of increased train Even at current levels of rail traffic through Yakia, this project is a sound inVestynent' • With justjustthe 8 10 12 trains coming through Yakima today, we have public safety, air quality and traffic congestion issues that need 10 be solved. The grade separation pject resolves today's issues AND takes into account the potential for more rail traffic in the future. • This project will provide an important match for the Front Street historic da|i oki project. Funding from the Grade Separation projectvviU contribute approximately $2 million for Front Stnaet oea|ignnnont. utility replacement and historio street pavers. • As currently planned only 6 45% of the total cost of this projectject will come m discionary federal transportation dollars available 10 the CityThe remaining A3.55%must be returned to the fund ~~' agencies if the project project is not bulit. Even at current levels of rail traffic through Yakim,l, this project is a sound investment. • Approximately $21 mililon dollars will be spent on construction and of that an estimated 65% ($13.6 million) will stay in the local economy. Now isthe time ho complete this important project: • BNSF can make irovements on their Stampede Pass route that will increase train trafflc much more quickly (18 — 24 months) than we can fund, design and build a solution to mitigate the problem (10years plus) • We are 8 years into the planning and design of this p'aot. Concessions have been made; (Le. Yakima Avenue is no Ionger part of this pjact). We have secured 90% of the funding naded to build thi • We have strong bisupport for this project in Congress and from agencies in Washington DC and Olympia To date we have been awarded $25million ipstate and federal —^ transportation '�~ dollars. We��our s�(�� State transportation dollars in the future wiU depend upon our abitity to fottow through on our ptans. • • 26 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of: March 7, 2006 PURPOSE: Consideration of a Resolution authorizing the City Manager to execute documents and agreements pursuant to a loan application to the Washington Public Works Trust Fund (PWTF) for $3 million to provide cash flow for the Grade Separation Project at Lincoln Avenue and B Street. SUBMITTED BY: K. Wendell Adams, City Engineer William Cook, Dept. of Community and Economic Development CONTACT PERSON/TELEPHONE: K. Wendell Adams, P.E., City Engineer Engineering Division Manager / 575-6111 SUMMARY EXPLANATION: The Community Economic Development Department respectfillly requests permission to apply for a $3 million (0.5% interest) construction loan from the state Public Works Trust Fund to supplement the 2007-8 Grade Separation Project for improvements to Lincoln Avenue and B Street. This project will require pay estimates of up to $3 Million per month the first few months after construction begins. By securing a PWTF loan the City will be able to use the funds for cash flow during construction and then pay off the loan with reimbursable grant funding after construction is complete. Continued Resolution X Ordinance _ Contract _ Other: PowerPoint and Memo Funding Source: Fund 392 — Capital Improvement Fund Approval for Submittal: Cify Manager STAFF RECOMMENDATION: Adopt Resolution. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2006-33 1 Page Two In the first phase of the project, PWTF loan dollars will be used to assist with cash flows to the Capital Improvement fund, and later can be used to fill any remaining funding shortfalls that may occur on the project. Using PWTF would allow the City to have a reserve cash flow position that could be paid back at the end of the project with obligated grant dollars or the City could choose to pay back the PWTF loan dollars over time at an annual interest rate of 0.5%. Debt service for the loan could either come from gas tax allotment funds or some other source eligible for capital improvement funds. If the loan is paid back in full at the end of the project, there would be no interest paid on the loan and the City would have used these funds totally interest free. Please find the attached PowerPoint presentation that was presented to several concerned business owners and the most recent elected City Councilmen There is also an attached memo that documents statements made by Andrew Johnson from BNSF in a recent Freight Mobility Conference. Please contact me if additional information is needed. 2