Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Wagner, Assistant City Manager
Date:	July 30, 2010
RE:	Grant Application for Federal Railroad Administration High-Speed Intercity Passenger Rail (HSIPR) Program to Fund Final Construction Plans for Santa Fe Station Project

Please place the following item on the August 3, 2010 City Commission meeting agenda:

Approve submittal of a grant application for the Federal Railroad Administration High-Speed Intercity Passenger Rail (HSIPR) Program to fund final construction plans for Santa Fe Station Project

Background:

The City of Lawrence is currently working with the BNSF Railway on the acquisition of the Santa Fe Station, located at 413 E. 7^th Street, to enable its restoration and preservation.  In December 2009, the City Commission authorized the submittal of an approximately $600,000 Transportation Enhancement Grant application to complete phase 1 of the improvements, focusing on critical items and ADA improvements.  The Kansas Department of Transportation is expected to announce the TE grant recipients in early August. 

FRA Grant Opportunity:

Staff recently became aware of the High-Speed Intercity Passenger Rail (HSIPR) Program through the Kansas Department of Transportation staff.  The HSIPR Program is a highly-competitive grant program aimed at improving service for passenger rail. Over $200 million is available from this grant source. Preliminary design activities are eligible to be funded through the program. Applications are due August 6. 

As the City Commission is aware, the TE grant program, to which the City has submitted an application, requires a 20% City match on the construction and also requires 100% of the design costs be paid by the City.  For the phase 1 project, the design costs are estimated at $58,000.  Total design costs for all phases of the Santa Fe Station project are estimated at $112,563.  The HSIPR Program may be a way to receive grant funds to decrease the City’s design costs for the project. 

Staff is suggesting that the City Commission consider authorizing an application requesting the HSIPR fund 77% of the design costs with a total City match of $25,000, or 23%. This would enable the entire project, both Phase 1 and Phase 2 to be fully designed with final construction plans completed to enable the City to proceed with construction in the event that either the TE grant or other grant funds are received to advance the project.  The HSIPR Grant would need to be administered through the State of Kansas, as the City of Lawrence is not an eligible fund recipient.  Therefore, a City-State funding agreement would be required if this grant is received. 

In the event that either the TE Grant is not received, or the BNSF Station transfer does not occur, the construction plans could still remain viable for future opportunities.  However, this is a consideration that the City Commission may want to weigh as it considers authorizing this submittal. 

Requested Action:

Authorize staff to submit the application with a City match of $25,000 and authorize the Mayor to sign a letter making the commitment of City funds should the grant be received.