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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/23/2016 - EXISTING LEMAY AVENUE/VINE DRIVE INTERSECTION ANDDATE: STAFF: August 23, 2016 Timothy Kemp, Civil Engineer III WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION The existing Lemay Avenue/Vine Drive intersection and the realigned Lemay Avenue/Suniga Road intersection. EXECUTIVE SUMMARY The purpose of this item is to update Council of the project status for realigned Lemay Avenue and Suniga Road, and to discuss design elements, construction funding, and phasing options. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED City staff is presenting traffic and train delay information, concepts of the bridge over the Burlington Northern Santa Fe (BNSF) railway, and funding options. City staff is seeking direction on options for construction funding and feedback regarding the bridge. 1. What direction does Council have regarding the options presented for construction funding? 2. What feedback does Council have on the bridge over the Burlington Northern Santa Fe railway? BACKGROUND / DISCUSSION Lemay Avenue realignment and intersection improvements have been prioritized as the City’s number one Transportation Capital Improvement Project. The improvements will construct a new road and intersection (future Suniga Road and Lemay Avenue) slightly north and east of the existing Vine Drive and Lemay Avenue intersection. The Lemay Avenue realignment and grade separation has been on the City’s Master Street Plan for nearly 30 years and is a critical infrastructure improvement needed to address existing transportation deficiencies and neighborhood livability issues. The existing intersection operations continue to degrade which has led to increased safety, congestion, and access problems for local residents, BNSF railway, emergency services, and the travelling public. Project Goals  Community Revitalization - Complete critical transportation improvements that will enhance connectivity for local neighborhoods to employment, schools, goods and services. Existing residents suffer from the constraints of congestion on a daily basis.  Safety and Multi-Modal Connectivity - Foster a safe, connected, resilient and accessible system for all modes of travel to key activity centers, access to high frequency transit service, and bicycle and pedestrian facilities.  Commerce and Accessibility Improvements - Construction of the improvements will reduce congestion along existing roadways and the BNSF rail corridor, which in turn helps improve railway switching operations and the ability to move goods and services efficiently throughout northeast Fort Collins. August 23, 2016 Page 2  Expandable Network for the Future - This project is a key element for the future of the Mountain Vista area. The project will be phased to address existing operational and connectivity issues now, and expandable in the future as subsequent development adds capacity to the transportation system. Unlike most railroad crossings within Fort Collins, the existing Vine and Lemay intersection is greatly impacted due to the proximity of the BNSF and Great Western switching yard along Vine Drive. Through discussions with BNSF, there are no plans to move the switching yard or switching operations from this location. Additionally, the existing intersection is severely congested with limited options to expand through lanes or turn capacity due to proximity to houses and driveways. The project will include multi-modal and landscape improvements on existing Lemay, after this section of roadway is downgraded to a local street. Current Tasks City staff is currently working on an Alternatives Analysis to determine the best plan to appropriately serve the project area and increase safety to meet the needs of existing residents and the travelling public. The Alternatives Analysis will consider options including the following:  The grade separation of realigned Lemay Avenue at the BNSF crossing  A roundabout versus signalized intersection at realigned Lemay Avenue and Suniga Road  Construction phasing, construction estimates, and funding scenarios  Cost/benefit of constructing realigned Lemay Avenue as a 2-lane arterial, expandable to a 4-lane arterial in the future as subsequent development adds capacity to the transportation system Staff is currently negotiating right-of-way and easement acquisitions on the Kederike parcel (northeast of the existing Vine and Lemay intersection), in conjunction with City Stormwater and the Northeast College Corridor Outfall (NECCO) project. Construction will begin this fall on the NECCO project which will install large-diameter storm sewer along future Suniga Road and build regional detention/water quality ponds on the Kederike parcel. Council previously approved Ordinance No. 124, 2015 and 029, 2016 in support of these City efforts. Outreach and Public Engagement  February 2016 Public Open House at Streets Facility - 122 people signed in for the event  February 2016 presentation to the Transportation Board  May 2016 presentation to the Futures Committee  May 2016 presentation to the Council Finance Committee  August 10, 2016 Lincoln Neighborhood Ice Cream Social  Ongoing, numerous meetings with property owners in the area  Upcoming this fall o Neighborhood meetings with Andersonville and Alta Vista o Public Open House #2 o Additional presentations to boards and commissions  Project website is available at: <http://www.fcgov.com/engineering/vine-lemay.php> Grant Opportunities The City has an excellent track record with securing federal grants to aid in the design and construction of our projects. This project is not located on a state Highway or a North Front Range Metropolitan Planning Organization (NFRMPO) “regionally significant corridor”. This has hindered the City’s ability to secure grant funding. Staff will continue to look for opportunities, but it is unlikely we will be able to obtain federal funds. Staff has submitted 3 times for TIGER funding, most recently in April 2016, with no success to date. August 23, 2016 Page 3 ATTACHMENTS 1. Location Map (PDF) 2. Public Meeting Summary (PDF) 3. Tolling Option Memo (PDF) 4. Powerpoint presentation (PDF) ATTACHMENT 1 ATTACHMENT 2 AECOM Technical Services, Inc. 9400 Amberglen Boulevard, Austin, TX 78729 T 512-454-4797 F 512-454-6499 A Trusted Global Environmental, Health and Safety Partner - 1 – Memorandum Date: August 9, 2016 To: City of Fort Collins, CO From: AECOM project team Subject: Lemay Avenue at E. Vine Drive Toll Feasibility Study Introduction This project memorandum summarizes analysis of the financial feasibility of tolling the grade-separated segment of realigned Lemay Avenue. The following assumptions were made: x All electronic tolling with one toll gantry on the bridge x No toll barriers with unimpeded traffic flow x Customers will have either transponder or video billing x Customers will be fined for non-payment violation x Use regional/national private tolling service The Project is expected to provide the following benefits: x Closure of at-grade rail crossing for enhanced operations and safety x Reduction in number and severity of accidents at intersection and rail crossing x Reduced journey times and improved journey time reliability x Improved distribution of traffic from/to Downtown Fort Collins x Reduction in air/noise pollution Traffic & Revenue Analysis Traffic & revenue forecast includes a projection of future traffic volumes under the proposed project configuration and an estimation of annual revenues with the assumed tolling policy. x Existing traffic counts were collected from the City of Fort Collins website including annual daily counts and peak hour turning movement counts at the intersection. x The daily traffic growth rate is derived from population and employment growth in the region. x We assume that, during the 50 years project cycle, the traffic will grow at 2% annual compound rate for the first 15 years, 1% for the second 15 years, and 0.5% for the remainder 20 years. x It is assumed the Project will complete construction and be open to traffic in Year 2020. A total of 50 years is assumed to be the tolling period for the purpose of analysis. x Toll rate for the Lemay grade separation is assumed to be 35 cents for opening year 2020 and escalate with inflation (equivalent to about 1-minute time savings for work related travel and about 1.5-minute time savings for leisure travel). x We assumed through traffic volumes will remain as is with no toll diversion. Also no reduction is applied for ramp up periods since existing route has few viable alternatives. ATTACHMENT 3 AECOM Technical Services, Inc. 9400 Amberglen Boulevard, Austin, TX 78729 T 512-454-4797 F 512-454-6499 A Trusted Global Environmental, Health and Safety Partner - 2 – x Future traffic forecast and revenues were calculated and tabulated and the project is expected to generate $87 million in toll revenue over a 50-year period. Project Cost x Upfront construction cost includes $25 million construction cost + $3 million tolling system cost x Toll system maintenance cost is assumed $200,000 a year and escalate at CPI rate. Based on industry practice, the feasibility study also assumes a lifecycle replacement of electronic system every 7 years that is equal to $1 million. x This feasibility study considers toll operation costs in both electronic transponders incurring 8 cents per transaction plus a 2.5% merchant fee and video billing costs. Financial Analysis x The value of the project was assessed using the Net Present Value (NPV) of the discounted cash flows for a 30-year analysis period with a Weighted Average Cost of Capital (WACC) as the discounted rate. A WACC of 4.5% is assumed to be consistent with municipal funding backed by toll revenue stream. There is no consideration of financing requirements such as Debt Service Coverage. Construction cost is assumed to escalate at 3.0%, higher than the 2.0% Retail Price Index which is Federal Reserve goal. x The Net Present Valuation analysis demonstrates that the project does not meet typical market criteria for funding secured on a future toll revenue stream, even when roadway and bridge maintenance costs are not considered in the analysis. Substantial public sector funding would be required to close the funding gap. Tolling Project Risks 1. Political acceptability: The project will require strong advocates and legal authority to overcome the dual obstacles of this Project being the first toll project in Fort Collins and a possible perception of double taxation: tax plus tolls. AECOM Technical Services, Inc. 9400 Amberglen Boulevard, Austin, TX 78729 T 512-454-4797 F 512-454-6499 A Trusted Global Environmental, Health and Safety Partner - 3 – 2. Achieving Local Buy-In: The communities immediately adjacent to the proposed toll road will likely need to use the toll road on multiple occasions each day. The improved safety provided by the elimination of the at-grade rail crossing will be assessed against the effect on net household income. Local buy-in would likely be improved if the project were part of a safety program in which all improvements were tolled. 3. Schedule: Introducing tolling could impact the schedule for completion of the project. o Environmental justice: The specific effects of tolling on communities would be considered as part of an environmental re-evaluation. o Funding: The use of toll revenue financing could accelerate the implementation of the project. 4. Net Revenue: This conceptual analysis has used a rational economic model to assess the potential diversion of traffic due to tolling. Public perception may increase or decrease that diversion of traffic. As the first toll road in Fort Collins, initial market penetration of transponders might be slow, increasing toll operations costs for a facility that offers no economies of scale. Partnership with an existing toll entity could help to mitigate these risks and costs. Disclaimer This technical memorandum is for a high level feasibility study only. The traffic and revenue forecasts are subject to change. It is AECOM’ opinion that the toll revenue projections are reasonable at this level and that they have been prepared in accordance with accepted practice. However, given the uncertainties within the current international and economic climate, it is important to note the following limitations: x This report presents the results of AECOM’ consideration of the information available as of the date hereof and the application of AECOM’ experience and professional judgment to that information. It is not a guarantee of any future events or trends. x The traffic and toll revenue forecasts will be subject to future economic and social conditions, demographic developments and regional transportation construction activities that cannot be predicted with certainty. x The projections contained in this report, while presented with numeric specificity, are based on a number of estimates and assumptions which, though considered reasonable to us, are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of the client and cannot be predicted with certainty. In many instances, a broad range of alternative assumptions could be considered reasonable. Changes in the assumptions used could result in material differences in projected outcomes. x AECOM’ toll revenue projections only represent its best judgment and AECOM does not warrant or represent that the actual toll revenues will not vary from its projections, estimates, and forecasts. x If, for any reason, any of these conditions should change due to changes in the economy or competitive environment, or other factors, AECOM’ opinions or estimates may be affected. x This technical memorandum is for the limited purpose of providing information to the City of Fort Collins, and is not intended and is not to be used or read to provide any municipal advisory advice or otherwise used in connection with the offering of any securities that may be issued in connection with the Lemay/Vine Grade Separation Project and no person or entity other than the City of Fort Collins, is authorized or permitted to rely on this report without the express written consent of AECOM. 1 Vine and Lemay – Council Work Session Engineering Department August 23, 2016 ATTACHMENT 4 Presentation Overview 2 • Crossing Conditions • Traffic Impacts • Alternatives Analysis • Construction Funding Public Outreach 3 • Public Open House at Streets Facility – 122 people signed in • Transportation Board Presentation • Futures Committee • Council Finance Committee • Multiple Events associated with Lincoln Avenue Corridor • More Public Engagement Events this Fall Existing Deficiencies 4 • Safety, Congestion, Delay, and Air Quality Issues • Neighborhood Livability, Access, and Connectivity Concerns • Substandard Multi- Modal Infrastructure Total Blockage Duration by Month 5 0 18 36 March April May June July Aug Sept Oct Nov Dec Jan Feb March BNSF - Drake and McClelland Crossing BNSF - Vine and Lemay Crossing Blockage (Hours) 27 9 Impacts - Current Traffic Operations 6 • 10 Minute or Greater Train Blockage occurs nearly once per day • Traffic System Impacts – Lemay / Vine – Lemay / Conifer – Lemay / Lincoln Influence Area Preliminary Alternatives Analysis 7 Current Status and 2016 Goals 8 • Property Owner and Neighborhood Meetings, Public Open Houses, Boards and Commissions • Preliminary Design (30% Plans) • Right-of-Way and Easement Acquisitions north of Vine Drive • Alternatives Analysis Report for Council Consideration, Fall 2016 Financial Picture (Full Build Out) 9 Project Funding Current Appropriation Capital Expansion Fee (Street Oversizing) BNSF Contribution Local Street Obligation Unfunded $16 M - $18 M $5.0 M $1.5 M $1.0 M $0.5 M Total Project Cost: $24 M - $26 M Potential Funding Sources 10 Traditional Methods to Fill the Funding Gap • Budgeting for Outcomes and Mid Budget Processes • $2.0 M Offer Submitted for 2017 / 2018 Budget • Renewal of Community Capital Improvement Tax • Evaluation of Federal Grants – Unsuccessful with Three (3) TIGER Applications – Low Probability of Large Format Grant Opportunities – Not on Regional, State or Federal Roadway System Potential Funding Sources 11 Less Traditional Methods to Fill the Funding Gap – Expansion of Capital Expansion Fee – Reserves to “front” Local Street obligations – New Sales Tax Options • 5-year 1/4 Cent or Dedicated, Sun Setting 1/10 Cent – Tolling Option (Summary Memo in AIS Packet) – “Trip Shed” Fee (Development Contributions) Next Steps 12 • Continued City-wide Outreach and Public Engagement • Presentations to Boards and Commissions • Finalize Alternatives Analysis Report • Continued Property Owner Meetings • Lemay Local Street Design and Input (Buckingham to Vine) • BNSF and Public Utilities Commission Meeting (late Fall, 2016) Questions 13 • What direction does Council have regarding the options presented for construction funding? • What feedback does Council have on the bridge over the BNSF Railway?