FY 2016 Tiger VIII Discretionary Grant Application

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FY 2016 Tiger VIII Discretionary Grant Application Project Information Summary San Joaquin Rail Access to Opportunity: PROJECT NAME: Passenger, Freight, Port Type of Freight Rail – Intermodal Connector Application Location Stockton and Lathrop, California Area Urban Amount $9.0 million Requested Sponsoring San Joaquin Council of Governments Organization Andrew T. Chesley Executive Director San Joaquin Council of Governments 555 E. Weber Ave, Stockton, CA 95202 Contact Information (209) 235-0444 (direct) [email protected] Project Website: www.sjcog.org/TIGER i Executive Summary The San Joaquin Rail Access to Opportunity project will improve passenger, commuter, and freight rail mobility in Northern California, and the growing San Joaquin County area. It will also enable job growth in one of the most economically distressed areas in the United States. This project, a partnership of the San Joaquin Council of Governments (SJCOG) and Union Pacific Railroad (UP), will generate public benefits by reducing the route miles freight trains must travel to reach their destinations and by reducing freight traffic congestion in two major regional passenger and commuter rail corridors. The project will enable growth to continue at the Port of Stockton and the economically disadvantaged cities of Stockton and Lathrop, California. The project has two components, one each at: Stockton Lathrop Each component consists of a new connection between two The two projects main tracks, which cross or approach each other, that components have large historically were independent routes. These connections will public benefits. Most of enable these formerly independent main tracks to function as these benefits accrue to: a cohesive network for passenger and freight trains. Individually and together, the two project components Rail provide the positive public benefits quantified in this Passengers application. SJCOG and UP selected these two project components from a menu of possible project components in Local order to deliver the maximum benefit for rail passengers, to Residents increase freight rail capacity for the ports of Stockton and Oakland, and to improve quality of life in Stockton and Lathrop. Quality of life improvements include reduced grade Motorists crossing delay for motorists and pedestrians, reduced air emissions, and increased transportation capacity required for job growth in the region. SJCOG and UP also selected these two project components because they have high benefits in relation to their cost, do not have complex construction requirements, and have well-progressed design and permitting. SJCOG and UP are collaborating together on this proposed public-private partnership because of the overall benefits realized by constructing these improvements. The public benefits of the project accrue to rail passengers, local residents, and motorists. The private ii benefit of freight movement generated by the project is represented by UP’s contribution of $5.29 million, or 31 percent of the total project cost. Construction of this project will present opportunities for increased mobility and connectivity throughout San Joaquin County, and the Northern California Megaregion. Passenger and commuter rail reliability is essential for those residing and working in the region and for building ladders of opportunity for disadvantaged groups. The project is aligned with San Joaquin County’s economic development and regional transportation plans, which seek to enhance existing rail infrastructure in order to improve rail network efficiency and capacity, including safe, reliable transportation of the public, while also improving the local economy through economic growth, job retention, and job creation. Table ES-1 below illustrates the summary of monetized benefits, showing that the San Joaquin Rail Access to Opportunity project provides positive public benefits. For a total project cost of $17.3 million, the public benefits total $27.9 million (discounted, 7%). This project is well positioned to meet and Table ES-1: Summary of Benefits for the exceed all of the TIGER program's schedule Project’s Two Components guidelines. Prior to this TIGER application, UP invested $4.18 million toward Outcome Benefits construction of the project’s two components, consisting of $0.25 million Economic $15.7 M spent for engineering and $3.93 million to Competitiveness purchase right-of-way. In order to complete the project, $17.29 million is required. UP will provide an additional $5.29 million. UP Quality of Life $5.1 M has also secured $3 million in Trade Corridor Improvement Funds (TCIF), for the project, from the Northern California Trade Coalition Environmental $7.1 M (which will be recommending final approval Sustainability to the California Transportation Commission this year). Total Benefits $27.9 M SJCOG is requesting $9 million in funds from + this year’s TIGER Grant opportunity, complementing the $3 million in state funds Benefit Cost Ratio 1.93 and $5.29 million in UP funds already $ secured for these project components. Note: All cost estimates in this table are in 2015 dollars, using a 7 percent real discount rate. iii Contents Cover Page ................................................................................... Error! Bookmark not defined. Executive Summary ............................................................................................................... iii 1.0 Project Description ....................................................................................................... 1 1.1 About San Joaquin Council of Governments ............................................................................. 1 1.2 The Transportation Need .................................................................................................................. 1 1.3 Beneficiaries ........................................................................................................................................... 6 1.4 Ladders of Opportunity ..................................................................................................................... 6 2.0 Project Location ............................................................................................................ 7 3.0 Project Parties ............................................................................................................. 10 4.0 Project Costs, Funds, Sources, and Uses .................................................................. 10 4.1 Project Costs and Funding Sources ............................................................................................. 10 4.2 Detailed Budget Breakdown and TIGER Fund Allocation .................................................... 11 5.0 Primary Selection Criteria .......................................................................................... 12 5.1 State of Good Repair ........................................................................................................................ 13 5.2 Economic Competiveness ............................................................................................................... 14 5.3 Quality of Life ...................................................................................................................................... 15 5.4 Environmental Sustainability .......................................................................................................... 16 5.5 Safety ...................................................................................................................................................... 17 6.0 Secondary Selection Criteria ..................................................................................... 17 6.1 Innovation ............................................................................................................................................. 17 6.2 Partnership ............................................................................................................................................ 17 7.0 Results of Benefit Cost Analysis ................................................................................ 19 8.0 Project Readiness ....................................................................................................... 20 8.1 Technical Feasibility ........................................................................................................................... 20 8.2 Financial Feasibility ............................................................................................................................ 21 8.3 Project Schedule ................................................................................................................................. 22 8.4 Required Approvals (NEPA, Planning Approvals, and Other Reviews/Approvals) ..... 23 8.5 Mitigation .............................................................................................................................................. 25 9.0 Federal Wage Rate Certification ............................................................................... 28 10.0 Standard Form 424 (Application for Federal Assistance) ...................................... 28 Appendices Appendix A: Federal Wage Rate Certification Appendix B: Letters of Support Appendix C: BCA Appendix D: Cost Estimate Appendix E: Engineering Design iv 1.0 Project Description 1.1 About San Joaquin Council of Governments The San Joaquin Council of Governments (SJCOG) is the project applicant and grant recipient for the San Joaquin Rail Access to Opportunity
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