Project Name: Twin Ports Interchange (TPI) Reconstruction Project Was an INFRA application for this project submitted previously? Yes If yes, what was the name of the project in the previous application? TPI Phase I1 Previously Incurred Project Cost $2,500,000 Future Eligible Project Cost $201,500,000 Total Project Cost $204,000,000 INFRA Request $50,000,000 Total Federal Funding (including INFRA) $77,600,000 Are matching funds restricted to a specific project component? No Is the project or a portion of the project currently located on National No Highway Freight Network? Is the project or a portion of the project located on the NHS? Yes • Does the project add capacity to the Interstate system? Yes • Is the project in a national scenic area? No Do the project components include a railway-highway grade crossing or Yes grade separation project? New bridge; ID • If so, please include the grade crossing ID. not yet assigned Do the project components include an intermodal or freight rail project, or freight project within the boundaries of a public or private freight rail, No water (including ports), or intermodal facility? If answered yes to either of the two component questions above, how much of requested INFRA funds will be spent on each of these project $0 components? State(s) in which project is located Minnesota Small or large project Large Urbanized Area in which project is located, if applicable Duluth, MN--WI Population of Urbanized Area 120,378 Is the project currently programmed in the: • TIP Yes • STIP Yes2 • MPO Long Range Transportation Plan Yes • State Long Range Transportation Plan Yes3 • State Freight Plan? Yes3 If selected, would you be interested in participating in a new environmental No4 review and permitting approach?
1 Submitted in April 2016 and December 2016 as a FASTLANE Grant application. The project has since been refined as reflected in this INFRA application. 2 The I-35/27th Avenue West interchange is included in the 2018-2021 STIP for 2021. The other elements of the TPI reconstruction project are included in the TIP for future years and will be added to the STIP. 3 These plans do not list individual projects, but the TPI reconstruction project aligns with the plans’ goals. 4 The Federal Highway Administration determined that a Categorical Exclusion is the appropriate level of environmental documentation for this project as the potential for significant social and environmental impacts is minimal. Therefore, MnDOT anticipates that permitting can be accommodated within the project schedule.
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Table of Contents 1. Project Description...... 1 1.1. Introduction ...... 1 1.2. Project Components ...... 2 1.3. Project History ...... 6 1.4. The Issues ...... 7 2. Project Location ...... 8 3. Project Parties ...... 11 3.1. Applicant and Lead Agency ...... 11 3.2. Project Partners ...... 11 4. Grant Funds, Sources, and Uses of Project Funds ...... 11 5. Merit Criteria ...... 13 5.1. Criterion #1: Support for National or Regional Economic Vitality ...... 13 5.2. Criterion #2: Leveraging Federal Funding ...... 16 5.3. Criterion #3: Potential for Innovation ...... 17 5.4. Criterion #4: Performance and Accountability ...... 18 6. Project Readiness ...... 19 6.1. Technical Feasibility ...... 20 6.2. Project Schedule ...... 21 6.3. Required Approvals ...... 22 7. Large/Small Project Requirements ...... 25 List of Figures Figure 1: Project Location ...... 1 Figure 2: Project Components ...... 3 Figure 3: Pile Deterioration ...... 4 Figure 4: Map of Transportation Issues ...... 5 Figure 5: Routes of Diverted Port-Related Truck Traffic...... 6 Figure 6: Traffic Backups ...... 7 Figure 7: Duluth, MN and Superior, WI ...... 8 Figure 8: Regional Rail Connectivity ...... 10 Figure 9: Wind Turbine Transport on Local Streets ...... 15 Figure 10: TPI Reconstruction Project Schedule ...... 21 List of Tables Table 1: Construction Budget by Project Component ...... 12 Table 2: TPI Reconstruction Project Construction Budget and Funding Source ...... 12 Table 3: TPI Reconstruction Project Requested and Secured Funding Sources ...... 12 Table 4: Benefit-Cost Analysis Results by Discount Rate ...... 13 Table 5: MnDOT Funding Targets for SFY 2018-2021 ...... 16 Table 6: TPI Reconstruction Project Milestones ...... 22 Table 7: Possible Risks and Mitigation Strategies ...... 24 Table 8: Large Project Requirements ...... 25
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List of Attachments Attachment A: Letters of Support Attachment B: Documentation of Non-Federal Funding Commitments Attachment C: Benefit-Cost Analysis Attachment D: Detailed Schedule
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1. Project Description 1.1. INTRODUCTION The Minnesota Department of Transportation (MnDOT), in coordination with the Duluth- Superior Metropolitan Interstate Council (MIC) and the Cities of Duluth and Superior, is seeking $50,000,000 in INFRA Grant funds to aid in completion of the Twin Ports Interchange (TPI) reconstruction project in Duluth, St. Louis County, Minnesota. The Twin Ports of Duluth, Minnesota and Superior, Wisconsin are located at the west end of Lake Superior and the Great Lakes St. Lawrence Seaway System and serve as the world’s largest fresh water port. The TPI is the critical infrastructure that allows the Port of Duluth-Superior to function as the economic hub for the region, supporting rural communities across northern Minnesota and Wisconsin (see Figure 1). The TPI reconstruction project will rebuild and modernize deteriorated highway infrastructure connecting the National Highway System (NHS) with the Clure Public Terminal and the Duluth Intermodal Terminal. These terminals are part of an innovative public-private partnership between the Duluth Seaway Port Authority (DSPA) and its terminal operators (Lake Superior Warehousing Figure 1: Project Location and Duluth Cargo Connect) with Canadian National Railway (CN). With the requested INFRA Grant funding, MnDOT will address safety and critical infrastructure deficiencies and support the Twin Ports as a revitalized and growing center for economic activity. The TPI reconstruction project will build on other recent federal and state investments in the port to chart a course for increased regional and national growth, competitiveness, and connectedness to urban and rural areas.
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Specifically, MnDOT will 1) replace 16 oversize and overweight (OSOW) permit restricted bridges, 2) replace seven non-redundant bridges, 3) eliminate four mainline bridges with innovative at-grade road design, and 4) eliminate blind/short merges, left exits, and obsolete geometrics that result in high crash rates. These actions, consistent with INFRA goals, will: Improve freight mobility and efficiency that will support regional economic vitality Restore the first and last mile connection to the NHS that is critical to supporting commerce and economic growth Improve traffic safety and reduce congestion that will improve movement of people and freight (16% crash rate reduction) Create sustainable infrastructure that will reduce traffic delays, reduce future bridge maintenance costs, and reduce deterioration on local streets Without federal assistance, state funding would be reprioritized to replace bridges individually in their current configuration as funding allowed, and MnDOT would miss the opportunity to create the intended safety and freight efficiency benefits that reconfiguring the TPI would provide. 1.2. PROJECT COMPONENTS The project includes three interchanges that operate together to provide access to the port and other area businesses; these interchanges include I-35/I-535/US 53, I-35/27th Avenue West, and I-535/Garfield Avenue (circled on Figure 1). Construction will include four components as shown in Figure 2 and described below. 1.2.1. COMPONENT 1: LOCAL ROAD NETWORK – COURTLAND STREET CONNECTION As MnDOT began evaluating the need for the TPI project, several project partners identified the need for a local street connection between the 27th Avenue West interchange and Garfield Avenue/Railroad Street, parallel to I-35. The Courtland Street connection will serve OSOW loads and local and tourist traffic, acting as an alternate route for I-35 and mutually benefitting the freight industry, local businesses, tourists, the City of Duluth, and the State of Minnesota. Because the TPI reconstruction project is anticipated to require up to four construction seasons, maintaining efficient traffic operations and an efficient OSOW route will be critical to maintaining access for freight, businesses, and residents. The Courtland Street connection will maintain access to parcels that would otherwise be landlocked during construction, and it will provide a reliever route for local traffic to divert from the I-35 mainline during construction. The Courtland Street connection is planned to be constructed first, prior to other TPI project components. The Courtland Street connection will extend the existing street to the northeast, passing under the I-535 ramp bridges connected to I-35, bridging over the BNSF railyard, and tying into Garfield Avenue near the existing Railroad Street intersection. The street design will meet City of Duluth standards for a city street and will be designed for OSOW loads. Duluth will take ownership of Courtland Street after the project is complete. After completing this connection, Courtland Street and Railroad Street will provide an approximate ¾ mile parallel route to I-35, strengthening connections between the port, NHS, downtown Duluth, the Western Lake
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Superior Sanitary District (WLSSD) wastewater treatment and transfer facilities, and to properties along Courtland and Railroad Streets, including industrial and tourist areas. On the south end, Courtland Street will connect to a reconstructed interchange at I-35 and 27th Avenue West. The I-35/27th Avenue West/Courtland Street interchange will be reconstructed to accommodate the additional truck volumes and turning movements expected to use Courtland Street. Pedestrian and bicycle facilities will be incorporated into the interchange design to support safe and efficient multimodal, local travel. Figure 2: Project Components
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1.2.2. COMPONENT 2: INTERSTATE IMPROVEMENTS – TWIN PORTS INTERCHANGE I-35 is the region’s central artery and is a four-lane divided highway. It was constructed in 1969 as part of the TPI and includes four mainline bridges. Over 250,000 square feet of the I-35 mainline surface area (roughly 2,200 linear feet) is currently built on bridge structure between approximately Miller Creek and the Garfield Avenue overpass. These bridges were constructed due to poor soils in the area. Figure 3: Pile Deterioration The ramps that make the interchange connections from I-35 to I-535 and US 53 include an additional 18 bridges. Of these 18 bridges, 14 are weight restricted and seven are non-redundant, restricting access to the TPI for OSOW loads. The four mainline bridges have experienced significant corrosion to the piling and have required emergency repairs, frequent inspections, and an extended emergency closure of I-35 southbound immediately adjacent to the project location, which lacks any alternate route. Due to changes in freight vehicle sizes, traffic volumes and patterns, interstate geometrics, and bridge conditions, reconstruction of the interchange is required. The I-35/I-535/US 53 interchange also has several geometric deficiencies that make it the interchange with the fourth highest crash rate in the state, accounting for more than one crash per week (MnDOT Office of Traffic Safety and Technology). These deficiencies are shown in Figure 4 and include left exits and blind merge points with short weave distances. Component 2 of the TPI will be reconstructed after the Courtland Street connection (Component 1). The reconstructed I-35/I-535/US 53 interchange will accommodate existing and anticipated future traffic volumes and patterns, replace four bridges with an at-grade and divided interstate roadway, and replace the remaining 14 weight-restricted ramp bridges that connect I-35, I-535, and US 53. 1.2.3. COMPONENT 3: REGIONAL AND LOCAL ACCESS – US 53 BRIDGES US 53 is a critical freight route to northern Minnesota and intersects I-35 as the west approach to the interchange. The part of US 53 within the TPI reconstruction project consists of six concrete box girder bridges constructed in 1972. The US 53 bridges provide access and connectivity for local, regional, and international traffic. One US 53 mainline bridge is in poor condition (with a National Bridge Inventory (NBI) rating of 4) due to several shear cracks near an abutment and throughout the length of the concrete box girders near the piers. These cracks are a major concern for the future capacity of this bridge. This bridge also has cracking of the bottom and sides of the box girder near the abutment, which is causing significant spalling and delamination. Two associated bridges on the 21st Avenue West ramps have similar issues and are in fair condition (NBI ratings of 5).
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The other US 53 Figure 4: Map of Transportation Issues mainline bridge is in a similarly deteriorated condition and has an NBI rating of 5. The deck has map cracking on the surface and cracking and delamination with rust staining on the bottom side or top of the interior of the box girder. The US 53 bridges will be reconstructed as the third component of the TPI project to maintain and enhance local and regional connectivity, while minimizing overall disruption to the region and its economy. 1.2.4. COMPONENT 4: PORT ACCESS TO THE INTERSTATE AND NATIONAL HIGHWAY SYSTEMS – I-535/ GARFIELD AVENUE INTERCHANGE The I-535/Garfield Avenue interchange is the primary access point for the Port of Duluth- Superior, including the Clure Public Terminal, the Duluth Intermodal Terminal, and other growing freight-related businesses along Garfield Avenue (one company, Altec, is currently adding 100 new jobs to its Garfield Avenue facility). This
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interchange was constructed in 1969, and it has geometric deficiencies that lead to recurring congestion and crashes that lead to non-recurring congestion. It also has weight restricted bridges that restrict access to I-535, I-35, and US 53 for OSOW loads to and from the Port of Duluth-Superior. OSOW loads must travel several miles on local streets to reach the next interstate access, resulting in increased costs for shippers and inconvenience for the local community (see Figure 5 for routes of diverted truck traffic). Reconstructing these bridges will allow overweight permit loads to more efficiently reach the interstate. It will also eliminate the short weave distances at these ramps (see Figure 4). Figure 5: Routes of Diverted Port-Related Truck Traffic
1.3. PROJECT HISTORY Most of the 33 bridges located within the TPI were built in 1969, a time when engineering technology provided limited options for construction in/over poor soils and prior to water quality and stormwater management requirements. These structures are nearly 50 years old and approaching the end of their useful life. Additionally, when the I-35/I-535 interchange was constructed, US 53 was not intended to connect with the interchange or interstate system. However, after experiencing the undesirable impacts from no I-35/US 53 connection, MnDOT added it in 1972. The I-35/US 53 connection
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has an unusual configuration because of its location relative to the BNSF railyard, the Lincoln Park neighborhood, the St. Louis Bay, steep topography, and the in-place I-35/I-535 infrastructure. Today, considerations for the interchange design include much larger traffic volumes, larger and heavier trucks, and different traffic patterns. Design standards for bridges and roads have also improved substantially in the past 50 years. MnDOT began studying the TPI in 2009 after the state’s 20-year bridge planning process indicated that major rehabilitations and/or replacement would be required for the TPI bridges by the mid- to late 2020s and would need to be completed before the Blatnik Bridge replacement (just east on I-535 and planned for construction in 2028). In addition, following the 2007 I-35W bridge collapse in Minneapolis, the Minnesota Legislature directed MnDOT to have contracts in place to replace or make structurally redundant all fracture critical (non-redundant) bridges by June 30, 2018. The TPI includes seven non-redundant bridges. MnDOT previously submitted two FASTLANE Grant applications for the TPI reconstruction project, one in April 2016 and one in December 2016. The first application included in-kind replacement of the I-35/I-535/US 53 interchange and bridge replacements at the I-535/Garfield Avenue interchange, requesting $145 million in federal funds for a $244 million project. The project definition was refined for the December 2016 application, adding the Courtland Street extension and scaling the request back to cover only Phase 1 of the project (Courtland Street, I-35 mainline, and key ramp bridges), requesting $45 million in federal funds for a $120 million project phase. Since that time, the project has been further refined to maximize benefits (safety; mobility of local traffic, freight, and OSOW loads; and maintenance efficiency) and minimize costs. The current application proposes to construct the full project, which is required to maximize benefits, requesting $50 million in INFRA Grant funds to construct this $204 million project. 1.4. THE ISSUES The TPI is currently not able to serve existing freight needs, projected freight growth, or provide safe travel for all modes, choking the region’s commerce. As described in Section 1.2, issues include structurally and geometrically deficient highway interchanges and an incomplete local roadway network. First/last mile freight access to the interstate and NHS cannot be achieved without replacing the weight restricted bridges at the I-35/I-535/US 53 and Garfield Avenue/I-535 Figure 6: Traffic Backups interchanges. Figure 4 illustrates the existing structural and geometric deficiencies that the TPI reconstruction project will address. The project will reconstruct the weight restricted bridges, which will allow OSOW permit loads to more efficiently reach the interstate. The project also increases safety by reducing existing bottlenecks and correcting ramp configurations that contribute to high crash rates. These improvements
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will facilitate intermodal freight and OSOW movements between the port and regional, national, and international destinations, enhancing economic development opportunities for the region. 2. Project Location The Twin Ports region is located at the west Figure 7: Duluth, MN and Superior, WI end of Lake Superior and includes Duluth, Minnesota and Superior, Wisconsin (pictured in Figure 7). Duluth is built on steep, rocky hills above and to the northwest of Lake Superior and the St. Louis Bay. The region’s central artery, I-35, runs from southwest to northeast in a narrow corridor between the hills and the water and is one of the nation’s principal North American Free Trade Agreement (NAFTA) trade corridors. The TPI is at the center of the region and connects the I-35 central artery to I-535, US 53, and US 2. I-535 and US 2 provide crossings over the St. Louis Bay and connect Duluth and Superior. US 2 crosses northern Wisconsin and northern Minnesota, connecting the Twin Ports region to destinations east and west. US 53 extends from central Wisconsin to Superior and north through northeastern Minnesota to the Canadian border (see Figure 1). In the center of the highways and rail lines serving the Twin Ports is the Port of Duluth-Superior. The Port of Duluth-Superior anchors one of the most important intermodal hubs in North America due to its central location and proximity to the Great Lakes. The region’s potential was recognized over 150 years ago, when access to the Great Lakes and the vision of early railroad development cemented Duluth as an early player in the transportation business with an emphasis on railroads and shipping. An abundance of natural resources, from forest products to minerals and grain, moved through the community and around the world. Due to its unique attributes, the Twin Ports has continued to develop as a leader in the US intermodal transportation business. Primarily a natural resources port, the docks handle a diversified commodities base ranging from coal, iron ore, grain, limestone, cement, salt, and wood pulp, to steel coil, wind turbine components, and other industrial equipment. This activity has catalyzed the formation of a diverse industrial and manufacturing hub, with multiple firms surrounding the port in both Minnesota and Wisconsin. Manufacturers, commercial trucking companies, and other businesses contribute approximately 30-40 percent of the freight activity going in and out of the port’s industrial zone, and support over 11,500 jobs that depend on cargo shipments entering and leaving the port.5 Furthermore, as of 2011, the port supported
5 Economic Impacts of the Port of Duluth-Superior, 2011
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over 17,000 direct and induced jobs that generated over $2 billion in economic activity in Minnesota and Wisconsin. Today, the Port of Duluth-Superior is the largest volume port on the Great Lakes, the 18th largest volume port in the US, and the second largest dry bulk port in the US. Located at the head of the Great Lakes St. Lawrence Seaway System, the Port of Duluth-Superior is mid- America's gateway to global trade. It serves as an intermodal hub for domestic and international cargo, and it is the largest marine gateway for US trade with Canada, the number- one trade partner of Minnesota, Wisconsin, and the US. The DSPA owns and operates the Clure Public Terminal located within the Port of Duluth-Superior. Since the opening of the Duluth Intermodal Terminal in March 2017, the DSPA via Duluth Cargo Connect also facilitates freight transfer through the new terminal and provides value-added services not available at most intermodal yards on 90 percent of containers passing through the port. Wind energy products and forest products have both contributed significantly to the 400 percent growth in port loads over the last 10 years. Currently, the Clure Public Terminal handles 25,000 to 28,000 individual truck loads on and off the port per year. CN, in partnership with the DSPA, opened the Duluth Intermodal Terminal at the Clure Public Terminal in March 2017. By its fifth year of operation (2021), the Duluth Intermodal Terminal will add another 45,000 or more truck loads, for a total of over 70,000 truckloads per year from the two DSPA-managed terminals. Together with the more than 25 other freight-related businesses currently operating around the port, these operations contribute significantly to the daily average of 5,320 heavy commercial vehicles that pass through the TPI. The success of the new intermodal hub depends on effective “first- and last-mile” connections between the intermodal terminal and the interstate highway that the TPI reconstruction project will provide. It is projected that approximately 125 additional trucks per day will be picking up or dropping off loaded containers, transporting these containers to and from local and regional locations, and transporting empty containers once the new terminal is at capacity (2021). The Duluth Intermodal Terminal offers better and less expensive transportation options for importers and consumers, domestic cargos, and exports. The regional Twin Ports market has major production centers for forest and agricultural products including paper, wood products, dairy products, potatoes, grain products, packing, and poultry products, among others. The terminal will make it easier and less expensive to export these products to growing Asian markets. Lake Superior Warehousing Co., Inc., which recently increased its staff size from 12 to 28 employees, has served as the Public Terminal operator since 1991. With a world-class reputation for safe, efficient handling of dimensional and heavy-lift cargo, Duluth has become a preferred transshipment hub for wind turbine components and, with over 360,000 square feet of warehouse capacity, a North American distribution center for numerous companies, predominantly in the forest products industry. The new Duluth Intermodal Terminal offers better and less expensive transportation options for importers and consumers, domestic cargos, and exports. In addition to the confluence of highways, this shoreline corridor also includes four Class I railroads: CN, BNSF, CP, and UP. They provide direct connections to the region from the west
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and east coasts, Canada, the Gulf of Mexico, and the Twin Cities of Minneapolis and St. Paul. The Twin Ports connection to the CN rail network is especially significant. The CN network runs between Prince Rupert and Vancouver, British Colombia to the west; Chicago, Illinois and Halifax, Nova Scotia to the east; and New Orleans, Louisiana to the south (see Figure 8). Figure 8: Regional Rail Connectivity
Prior to the opening of the Duluth Intermodal Terminal in March 2017, all containerized freight between Asia and the Minnesota-Wisconsin bi-state region was transported through two intermodal hubs: one in Minneapolis/St. Paul and the other in the Chicago area. The new Duluth Intermodal Terminal now provides a more direct and more economical option. Terminal use has already exceeded projections and will continue to grow which emphasizes the importance of the TPI project to facilitate economic growth in this region. The Twin Ports have been recognized consistently for their importance as an anchor of economic growth, sustainability, and competitiveness in the region. In 2013, the DSPA was awarded a $10 million TIGER Grant, as well as an almost $1 million grant from the Minnesota Department of Employment and Economic Development (DEED) and appropriations from MnDOT to conduct a major adaptive reuse and redevelopment project on Garfield Pier (Dock C&D). In addition to re-establishing the dock's structural integrity, this project connected the 28-acre site to existing road access and rail infrastructure, thus expanding the port’s capacity to handle growing cargo volumes. Apart from the port’s economic impact from the cargo and shipping industry, the tourism and higher education sectors generate $957 million and over $600 million of economic impact to the region, respectively. The Twin Ports communities are home to over 120,000 residents and over 20,000 college students who attend six higher education facilities in the area. In addition,
10 approximately 3.5 million tourists and conventioneers visit the Twin Ports each year to take advantage of the vast array of popular and unique recreational, tourist, and business opportunities offered throughout the year. 3. Project Parties 3.1. APPLICANT AND LEAD AGENCY The applicant and lead agency for the TPI reconstruction project is MnDOT District 1. 3.2. PROJECT PARTNERS The development of this project has been planned in partnership with the City of Duluth and the Duluth-Superior Port Authority (DSPA). The DSPA has been instrumental in articulating the needs of the freight community, projecting the growth potential of freight businesses, and understanding the current and potential users of the roadway network. The City of Duluth has also been a key collaborator on the Courtland Street connection and understanding the impact of diverted OSOW traffic on local streets. Both parties strongly support the implementation of the TPI project. MnDOT has the support of many other government agencies and representatives, organizations, and business in Minnesota and Wisconsin that have participated in planning, review, and support of the TPI. They include: Senators Klobuchar and Franken Duluth Local Initiatives Support Representative Nolan Corporation Governor Dayton Lake Superior Warehousing Wisconsin Department of Transportation Ericson Trucking and Logging MIC Kirscher Transport DSPA Graymont Cities of Duluth and Superior Perkins Specialized Transportation Midwest Shippers Association Contracting
Letters of support from these partners and supporters are included in Attachment A. 4. Grant Funds, Sources, and Uses of Project Funds MnDOT District 1 has developed a TPI funding strategy that draws on several dedicated and competitive sources. The District is committed and positioned to leveraging the federal funding provided by this grant to begin construction in 2019, and has the required matching funds to support the project. If any of the requested grant funds are not awarded, the resulting funding gap would be bridged by shifting funds from other state funded projects. The total project cost is $204 million. Of that, $2.5 million are previously incurred expenses and $201.5 million are future eligible costs. Table 1 provides a cost breakdown by project component, Table 2 provides additional detail on project costs and funding sources, and Table 3 provides a summary of funding sources. Documentation of non-federal funding commitments is provided in Attachment B.
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Table 1: Construction Budget by Project Component Component Estimated Cost Component 1: Courtland Street Connection and 27th Avenue West Bridge $25,000,000 Component 2: Mainline I-35 from 27th Avenue West to Garfield Avenue $108,000,000 Overpass and Interchange Ramps Component 3: US 53 Bridges $44,000,000 Component 4: Garfield Avenue Bridges $27,000,000 Table 2: TPI Reconstruction Project Construction Budget and Funding Source Share of INFRA Grant Other Federal Non-Federal Project Component Subtotal Project Funds Funds Funds Mobilization $5,304,000 2.6% $1,397,800 $771,600 $3,134,500 Demolition/Site Work $25,908,000 12.7% $6,828,000 $3,769,000 $15,311,000 Roadway $8,976,000 4.4% $2,365,600 $1,305,800 $5,304,600 Wall $16,728,000 8.2% $4,408,600 $2,433,500 $9,885,800 Bridge $85,272,000 41.8% $22,473,100 $12,405,200 $50,393,700 Drainage $1,224,000 0.6% $322,600 $178,100 $723,400 Signals, Signs, and $7,956,000 3.9% $2,096,800 $1,157,400 $4,701,800 Pavement Markings Traffic Control and $13,872,000 6.8% $3,655,900 $2,018,100 $8,198,000 Staging Project Contingency $24,480,000 12.0% $6,451,600 $3,561,300 $14,467,200 Engineering $14,280,000 7.0% $0 $0 $14,280,000 Total $204,000,000 100% $50,000,000 $27,600,000 $126,400,000 Table 3: TPI Reconstruction Project Requested and Secured Funding Sources Funding Source Amount Percent Status Federal Funding INFRA Grant $50,000,000 24.5% Requested TIGER Discretionary Grant $21,600,000 10.6% Requested Minnesota Highway Freight Program $6,000,000 2.9% Secured Federal Funding Subtotal $77,600,000 38.0% -- State Funding Transportation and Economic Development Program $5,000,000 2.5% Requested MnDOT District Consultant Set-Aside $9,300,000 4.5% Secured MnDOT District Right-of-Way Set-Aside $2,000,000 1.0% Secured Minnesota Chapter 3 Bonds $64,000,000 31.4% Secured Corridors of Commerce $22,100,000 10.8% Requested6 Statewide Performance Program Funds $24,000,000 11.8% Requested6 State Funding Subtotal $126,400,000 62.0% -- Total $204,000,000 100% --
6 Requested in 2019 budget
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5. Merit Criteria 5.1. CRITERION #1: SUPPORT FOR NATIONAL OR REGIONAL ECONOMIC VITALITY 5.1.1. BENEFIT-COST ANALYSIS Supporting information on the benefit-cost analysis for the TPI reconstruction project is included in Attachment C. Project Costs The current I-35/I-535/US 53 interchange is nearing the end of its useful life and must be replaced. The current TPI infrastructure is crumbling, presents growing safety issues, and will require maintenance and emergency repair costs that significantly exceed redesign and replacement costs. The TPI reconstruction project costs total $204 million and will be expended from 2019 through 2022. Replacing the interchange components over time without the TPI reconstruction project (the No-Build scenario) would cost $224 million and would be expended between 2023 and 2036. Net project costs are the difference between the TPI reconstruction project costs and the No-Build costs. As shown in Table 4, the net present value (NPV) of the net project costs vary depending on the discount rate. With a 7 percent discount rate, the NPV is $39.8 million, and using at a 3 percent discount rate the NPV is $14.2 million. Project Benefits Project benefits result from three principal sources: Elimination of costs resulting from overweight loads being forced to use local streets rather than directly accessing the interstate highway system (see Figure 5) Reduced traffic delays for local commuter, business, and tourist traffic Cost savings from reduced travel times for growing truck traffic volumes serving the new intermodal terminal at the Port of Duluth-Superior As shown in Table 4, project benefits total $207.4 million using a 7 percent discount rate and $364 million using a 3 percent discount rate. Benefit-Cost Ratio The benefit-cost ratio measure of cost-effectiveness (net benefits over net project costs) is 4.2 using a 7 percent discount rate and 24.5 using a 3 percent discount rate. Table 4: Benefit-Cost Analysis Results by Discount Rate 7% Discount Rate 3% Discount Rate Total Benefits $207,478,601 $364,015,563 Total Net Project Cost $39,836,781 $14,248,736 Total Net Benefits $167,641,821 $349,766,827 Benefit-Cost Ratio 4.2 24.5
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5.1.2. RESTORING THE GOOD CONDITION OF INFRASTRUCTURE THAT SUPPORTS COMMERCE AND ECONOMIC GROWTH The TPI is aging and badly needs to be replaced to continue to safely and effectively transport people and freight in the Twin Ports region and the broader upper North Central US. Built in 1969, these bridges consist of over 750,000 square feet of surface area. In the 1960s, 45- and 48-foot trucks were the norm, and corrosion resistant materials for bridge construction had not yet been developed. Currently, 63-foot trucks are typical, and the OSOW loads that commonly leave the port can be in excess of 200 feet. There are 33 bridges included in the TPI reconstruction project, six are on the US 53 approach to the TPI, three are at the Garfield Avenue/I-535 interchange, two at 27th Avenue West interchange, and 22 in the I-35/I-535/US 53 interchange. Of these 33 bridges, 16 are weight restricted and seven are non-redundant. Due to the weight restrictions on these bridges, OSOW freight cannot directly reach an interstate and trucks transporting these loads must navigate city streets, adding costs, time delays, and inconvenience to residents and businesses and compromising safety on local roads (see Figure 5). Without this project, the current state of the interchange will continue to limit freight movement and continue to restrain the economic potential of the Port of Duluth-Superior. Reconstructing the TPI will also eliminate the interchange’s geometric deficiencies, including left exits and blind merge points with short weave distances, that make it the interchange with the fourth highest crash rate in the state (MnDOT Office of Traffic Safety and Technology). Even with growing traffic volumes, an annual crash reduction of 16% is anticipated due to these improvements. The TPI reconstruction project will address issues related to deteriorating and outdated infrastructure and safety by: Eliminating or replacing all 33 bridges in the project area with structures that meet current design standards and accommodate current truck sizes and OSOW loads Reducing the total bridge surface area by over 50 percent, substantially decreasing bridge maintenance needs and the frequency of traffic disruptions for inspections, maintenance, repairs, and future replacements Modernizing the geometrics of the interchanges by relocating exits to the right, eliminating weave areas by providing lane continuity, and removing blind merge areas 5.1.3. IMPROVING CONNECTIONS TO THE TRANSPORTATION NETWORK TO SUPPORT THE MOVEMENT OF FREIGHT AND PEOPLE The Port of Duluth-Superior is surrounded by industrial and manufacturing businesses accounting for approximately 30 to 40 percent of the port’s freight activity and supporting over 17,000 direct and induced jobs. The presence of safe, modern infrastructure is critical for spurring economic growth and creating jobs. The TPI reconstruction project will allow businesses to take full advantage of the growing economic opportunities at the port and attract new clients. This project will contribute directly to economic growth, sustainability, and competitiveness in the area. As discussed in Section 2, the Port of Duluth-Superior is a critical element in regional,
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national, and international supply chains, and sits at the center of a regional industrial and manufacturing hub. The TPI’s aging and deficient infrastructure inhibits the efficient transportation of freight from the port to the NHS. For example, weight restrictions on the majority of bridges in the project area and the size-limiting geometrics of the interchange mean that OSOW freight cannot directly Figure 9: Wind Turbine Transport on Local Streets reach an interstate and trucks transporting these loads must navigate city streets. The existing TPI cannot support overweight permit loads, and the growing volume of such cargo moving through the port to the upper Midwest, such as wind turbine components and equipment for the western oil fields, causes them to be diverted through local streets on the steep hills of Duluth to reach the highway system. During 2015 and 2016, there were over 1,300 OSOW single use permits issued to and from the port, averaging about two to three OSOW loads per day that were diverted to local streets. Given recent and growing investment in the port, such as the newly-added Duluth Intermodal Terminal, demand for first- and last-mile efficiency is projected to grow. After its first six months of operation, the Duluth Intermodal Terminal was on track to exceed its planned capacity projections for 2017. The original market analysis projected 45,000 to 50,000 containers per year to be achieved by 2021, and updated projections predict additional growth to 60,000 to 65,000 container lifts per year by 2023. Given the projected growth at the Duluth Intermodal Terminal, the amount of diverted freight traffic will continue to increase if the TPI is not reconstructed. Movement of cargos through the local street system diminishes competitiveness for multiple reasons. It raises the cost of using the port for shippers, adding an estimated three hours to each move. These delays are compounded by the regular need to remove utilities and signal poles from the routes when moving large cargo. In order for the region to attract and retain business, it is essential that the Twin Ports be able to offer its partners efficient first- and last- mile transportation of their goods. Additionally, frequent backups from 5th Avenue West north of the TPI also delay freight movement. The many trucking-related businesses located adjacent to Bayfront Park and along Railroad Street have primary access to the interstate via 5th Avenue West; the frequent major events at Bayfront Park, the Duluth Entertainment Convention Center (DECC), and the Canal Park area, which are also accessed from I-35 at 5th Avenue West, result in significant delays to these freight haulers. These factors combine to create increased costs, time delays, and an overall chilling of the economic potential of the port. Delays in project construction will only continue to have a drain on economic potential and the State’s maintenance resources.
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The TPI reconstruction project will address these issues by: Eliminating weight restrictions that prevent OSOW loads from accessing the NHS directly, dramatically increasing the efficiency of first- and last-mile freight transportation; the Garfield Avenue/I-535 interchange is the keystone component that will provide direct port access for OSOW loads to the interstate and NHS Providing the Courtland Street Connection from the Garfield Avenue/Railroad Street intersection over the rail yard to the 27th Avenue West interchange. The Courtland Street Connection will provide businesses along Courtland Street, Garfield Avenue, and Railroad Street an alternate route to access their sites so they can avoid the 5th Avenue West interchange, thus improving travel time reliability for both freight movement to/from the port and for other traffic through the TPI. 5.2. CRITERION #2: LEVERAGING FEDERAL FUNDING Federal funds are requested for the TPI reconstruction project through the TIGER and INFRA grant programs. As shown in Table 3, $77.6 million in federal funds have been requested, or 38 percent of the total project cost. The remaining 62 percent will be funded through non-federal (state) sources. $75.3 million in state funds have been secured for this project. Non-federal project funding will be maximized by drawing on nine different State of Minnesota funding programs. Approximately 50 percent of the District’s annual budget is from state funds. For a summary of MnDOT’s funding targets for State Fiscal Years (SFY) 2018-2021, see Table 5. Table 5: MnDOT Funding Targets for SFY 2018-20217 SFY Federal Funding Federal Share State Funding State Share Total Funding MnDOT District 1 2018 $38,207,000 49% $39,219,000 51% $77,426,000 2019 $41,811,000 51% $40,578,000 49% $82,389,000 2020 $47,713,000 55% $38,600,000 45% $86,313,000 2021 $37,393,000 54% $32,200,000 46% $69,593,000 Total $165,124,000 52% $150,597,000 48% $315,721,000 MnDOT Statewide 2018 $441,492,000 62% $265,908,000 38% $707,400,000 2019 $447,200,000 63% $268,200,000 37% $715,400,000 2020 $447,700,000 63% $266,100,000 37% $713,800,000 2021 $454,100,00 63% $266,600,000 37% $720,700,000 Total $1,790,492,000 63% $1,066,808,000 37% $2,857,300,000 MnDOT’s 10-year Capital Highway Investment Plan (CHIP) identifies funding priority for the state’s NHS bridges on a performance basis. The system goals include addressing nonredundant designs, like the I-35W bridge that collapsed, and on maintaining the number of poor condition bridges at or below the established performance target. The TPI project’s bridges are prioritized for funding in Minnesota because of the infrastructure design and condition.
7 Source: MnDOT Office of Transportation System Management 2018-2021 Funding Guidance
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INFRA funding will allow MnDOT to address the entire interchange replacement needs in one project, significantly reducing overall project costs and impacts on the region’s economy. If INFRA funding is not provided, the TPI would need to be constructed in pieces as allowed by available funds, and MnDOT would miss the opportunity to create the needed economic, safety, and cost-efficiency benefits that would result from consolidating the improvements into one project. MnDOT develops operations and maintenance costs based on pavement and bridge management needs. These needs are reviewed yearly and incorporated into the District’s long and short term investment plans. MnDOT estimates that the annual TPI inspection and maintenance costs will be substantially less because of significantly less bridge surface area (50 percent less because of the TPI project). The I-35 mainline portion of the project alone comprises 0.74 percent of the total MnDOT bridge inventory and one-third of the TPI bridge surface area. Removal of just the mainline bridges will reduce annual inspection and maintenance cost by $74,000-$111,000 annually. Other maintenance and operation benefits of advancing this funding include: Advancing the replacement of the bridges 15 to 16 years, eliminating ongoing maintenance issues and the risk of emergency repairs or a major bridge failure Improving short and long-term bridge conditions. The 33 bridges in the TPI project comprise nearly 2 percent of Minnesota’s bridge deck area. The project will significantly reduce the amount of bridge deck in the project area, and significantly improve the condition of the bridge decks. Minimizing congestion, delays, and traffic diversion on local streets for freight and general traffic caused by lane closures for frequent TPI bridge inspections and repairs 5.3. CRITERION #3: POTENTIAL FOR INNOVATION 5.3.1. PROJECT DELIVERY METHOD MnDOT has chosen to use the Construction Manager/General Contractor (CMGC) contracting process to expedite delivery of the TPI reconstruction project. CMGC is an excellent fit for the TPI project, allowing the CMGC to be a part of the design team to maximize design and construction efficiency, minimize cost, recognize and mitigate risks, and decrease delay for freight and general traffic. The collaborative CMGC process enhances the delivery of effective and efficient construction opportunities and allows the design team to evaluate the NEPA alternatives with contractor costs for alternatives and mitigation measures, significantly increasing the efficiency and effectiveness of avoidance and mitigation discussions. CMGC input into design, constructability, risk, and staging will increase efficiency, allowing MnDOT to reconstruct the project area’s entire NHS infrastructure within the identified budget. Advantages of the CMGC delivery method include: Fostering innovation Higher design and construction quality Increased flexibility Optimized schedules Strong cost controls and certainty Enhanced collaboration Lower cost growth Integrated Value Engineering More effective management of risk Improved constructability
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5.3.2. GEOTECHNICAL ENGINEERING Based on a review of historic soil borings, MnDOT will explore one or more innovative geotechnical engineering solutions for the TPI reconstruction project to reduce project costs. The foundation soils in the project area consist of a shallow sand fill layer followed by variable deep deposits of soft clay with some organic (peat) layers on top of dense foundation soils. Innovative geotechnical solutions such as lightweight fill and column supported embankments will allow MnDOT to replace all mainline bridges in the project area with embankments, resulting in significant construction and long term maintenance cost savings. The basic design of a Column Supported Embankment (CSE) includes a Load Transfer Platform (LTP) consisting of layers of compacted granular material and geosynthetic reinforcement, which in turn is supported on columns. In between the columns, the soft compressible soils will see little loading and undergo minimal settlement, greatly reducing the overall embankment settlement. For column support, there are several different options available including driven steel piles, driven timber piles, and grouted auger holes. MnDOT is also a pioneer in avoiding embankment settlement through the use of lightweight fill, in the form of Expanded Polystyrene or Geofoam, an innovative construction method in unconsolidated soils. Geofoam embankments can be designed with no net load on the underlying foundation soils, which translates to insignificant settlements. 5.3.3. DRAINAGE I-35, I-535 and the TPI are located at the base of the Duluth hillside and adjacent to Lake Superior. While the TPI reconstruction project will not increase impervious area, it does provide excellent opportunities for stormwater treatment. The drainage from US 53 and the hillside must pass through the TPI area before reaching Lake Superior. While conventional stormwater treatment is not possible due to the soft soils and high water table, the geotechnical fills on I-35 afford new opportunities for water treatment. Possibilities include filtering the stormwater through the fill or installing stormwater containment structures in the high fills under I-35. The retention of stormwater in these areas would assist in managing the flow down to the port, which experiences stormwater overflows during heavy rain events. 5.4. CRITERION #4: PERFORMANCE AND ACCOUNTABILITY MnDOT has a long history of successfully delivering large, complex projects with highly compressed schedules. MnDOT’s recent experience designing and constructing the $238 million US 53 Relocation Project in Virginia, Minnesota in half the time of a standard design-bid-build project demonstrates MnDOT’s accountability and commitment to set and manage project performance goals to meet required milestones. For example, activities were advanced concurrent with design to reduce the time to move plans/specifications to advertisement from 10 weeks to just two days, and bid opening to contract execution from five weeks to six days. The tools used to achieve success on US 53 will be integral to successfully implementing the TPI reconstruction project, specifically focusing on schedule management and building partnership between MnDOT, the contractor, and the design team.
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5.4.1. P6 SCHEDULE MANAGEMENT MnDOT will ensure it starts project construction within 18 months of obligation of the INFRA funds (actual target is June 2019 construction, which is less than 18 months after anticipated obligation) by aggressively managing the project schedule from design development through construction using P6 schedule management software and project management practices including: Completing in depth project scoping including Risk Registers Assigning timeline and responsible party for every task, including major milestones, and implementing recovery plans to address the unexpected and maintain critical scheduled milestones Using P6 to identify critical path conflicts, create risk contingency plans, and provide bi-weekly report cards to all staff 5.4.2. CMGC MnDOT’s Office of Innovative Contracting supports the use of CMGC for this project based on recent experience and the flexibility it provides to allow non-traditional or concurrent work flows to accelerate project delivery. MnDOT views CMGC as a partnership with the contractor and design team that fosters collaboration and leads to efficiency and accountability. MnDOT will collaborate with the CMGC contractor and design team to determine the most efficient way to deliver the project in terms of schedule, cost, and minimizing disruption to the highway users and to minimize, reduce, and deal with schedule and cost risks. Other controls that will be implemented include incentive/dis-incentive specifications for major project milestones, risk assessment workshops throughout the project to establish confidence interval cost estimates, an independent value engineering workshop at 30 percent design, an Independent Cost Estimator (ICE) and an external cost estimator will assist in controlling project costs, and a “lessons learned” workshop will be conducted based on other CMGC experiences. Critical milestones for the preliminary engineering including scoping, the environmental document, and permits have been included in the schedule. It is anticipated that the project will have four work packages matching the four project components, which may be designed and/or constructed concurrently to meet project goals and grant requirements. 6. Project Readiness Construction of this project will begin in 2019 utilizing the CMGC alternate delivery method. MnDOT District 1 has experience with CMGC and recently completed a $238 million CMGC project (US 53 between the cities of Virginia and Eveleth) on an accelerated time schedule. The alternative delivery method of CMGC added the benefit of incorporating contractor innovation and efficiency in design, construction methods, and traffic staging to develop the most cost- effective design and accelerated construction on the time sensitive and technically challenging US 53 project. An ICE was a valuable tool to validate the CMGC cost estimates and assess construction means and methods. Because of the traffic impacts associated with this project, accelerated bridge construction techniques will be incorporated to ensure that freight and general traffic delays are avoided or
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minimized. The Federal Highway Administration’s (FHWA) Every Day Counts (EDC) initiatives will influence project planning and development, including alternate intersections, Performance Based Practical Design, and the consideration of prefabricated bridge components and ultra- high performance concrete. 6.1. TECHNICAL FEASIBILITY Conceptual engineering, public involvement, and the environmental process began in mid-2016 using state funds. Work completed to date includes design surveys, wetland delineation, traffic counts, noise level data collection, preliminary right-of-way work, subsurface utility engineering (SUE), environmental studies (regulated waste and Phase I Environmental Site Assessment), traffic modeling, and conceptual layouts.8 Contracts are executed to continue work in each of these areas, including development of layouts and continuation of the environmental process. Once a preferred alternative is identified, MnDOT has funded and will complete the geometric layouts and geotechnical analysis and begin preliminary bridge design. 6.1.1. BASIS OF DESIGN MnDOT began studying the TPI in 2009 after the state’s 20-year bridge planning process indicated that major rehabilitations and/or replacement would be required in the mid to late 2020s for the TPI. In addition, the Minnesota Legislature directed MnDOT to have contracts in place to replace or retrofit all fracture critical (non-redundant) bridges such that they are structurally redundant by June 30, 2018, and there are seven non-redundant bridges in the TPI. An initial interchange planning study was completed in 20119 that identified three basic alternatives: take no action, maintain the existing interchange, or replace the interchange with new geometrics. This study did not define a preferred alternative but set the stage for further stakeholder involvement and discussion. As conceptual design advanced, the project purpose was defined as improving the functionality (structural and geometric deficiencies) of the TPI to improve the flow of traffic and freight between the Port of Duluth-Superior and local, regional, and international destinations. The TPI reconstruction project has been evaluated against four objectives consistent with the project purpose: (1) improve freight mobility, (2) reduce traffic delay and congestion, (3) improve safety, and (4) minimize long-term maintenance costs. Using these four objectives and performance-based practical design, MnDOT is moving forward with preliminary engineering for the project. 6.1.2. BASIS OF COST ESTIMATES The cost estimate is based on the following: Components 1 through 4 of the TPI (Figure 2) are the basis for the cost estimates shown in Table 1 and Table 2. Roadway/bridge areas are computed based on conceptual layouts
8 Technical documentation is available on the project website at http://www.dot.state.mn.us/d1/projects/twin-ports- interchange/technicaldocuments.html 9 Interchange Planning Study Final Report: I-35/I-535/TH 53 “Can of Worms” Interchange Planning Study. Available at http://www.dot.state.mn.us/d1/projects/twin-ports-interchange/technicaldocuments.html.
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High risk items, such as potential soil contamination, were analyzed and estimated separately, and included in the estimates Unit prices are based on recent bid prices from similar MnDOT projects Percentages are based on MnDOT historic project information and adjusted for local project specific details A 12 percent risk contingency was added based on conceptual project definition 6.1.3. STATEMENT OF WORK The detailed project schedule is included in Attachment D and provides an outline of the scope of work to be completed for the TPI reconstruction project and demonstrates the resources and processes MnDOT has committed to ensure the project is ready to start construction in 2019. The conceptual layout for the TPI include modern geometrics and bridge designs that address the traffic flows, decrease crashes, and minimize delays. Recent traffic counts and forecasts are complete, and MnDOT has confirmed the number of lanes in the layout. Crash analysis has been conducted and confirms the public’s concerns about the left exits and short merge areas. MnDOT bridge engineers are addressing OSOW loads by analyzing routes and developing design criteria for pavement and bridges. The project team has hosted two day-long workshops with geometrics, bridge, traffic, and geotechnical experts to optimize designs. MnDOT has continued refining and vetting the workshop designs with each of its functional groups. Technical challenges include the geotechnical conditions (poor soils) and management of stormwater (high water table). The soils are poor in the TPI project area, and the water table is high, only 1 foot below the surface. The project area includes extensive foundation boring records and additional borings are in progress. MnDOT has extensive experience with poor soils and surface water management throughout the corridor, as most of I-35 in Duluth is built on unstable soils with complex drainage issues. The involvement of the contractor via the CMGC contracting process will aid in efficient design and construction. 6.2. PROJECT SCHEDULE Conceptual design (10 percent) is complete, and environmental review and preliminary engineering are underway and are scheduled for completion in April 2018 and January 2019, respectively. MnDOT will start procurement of the CMGC and final design contract in January 2018 and allow 12 months to complete preliminary design. Because of the CMGC project delivery method, multiple, independent work packages will be awarded in 2019, after completing design and securing permits. Work in 2019, includes constructing Courtland Street (Component 1). Figure 10: TPI Reconstruction Project Schedule
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Table 6: TPI Reconstruction Project Milestones Milestone Start Date Completion Date Conceptual Design (10%) June 2016 November 2017 Environmental Review and Approval July 2016 April 2018 Designer Procurement and Contract Execution January 2018 April 2018 CMGC Procurement and Contract Execution January 2018 April 2018 Design February 2018 January 2019 Right-of-Way Acquisition March 2018 December 2018 Permits Submitted and Final Approvals September 2018 January 2019 Agreements Executed -- December 2018 Municipal Consent -- July 2018 CMGC Work Package Issued -- April 2019 Construction June 2019 December 2022 6.3. REQUIRED APPROVALS 6.3.1. ENVIRONMENTAL PERMITS AND REVIEWS MnDOT has completed most of the environmental field work necessary to evaluate the project impacts. Nearly all of the project will be constructed within current NHS right-of-way and will not expand the footprint; Courtland Street is the exception, which will be constructed on City and railroad property. The Courtland Street corridor has soil contamination and is adjacent to two eligible historic railroad corridors, Duluth Missabe and Iron Range Railroad and the Lake Superior and Mississippi Railroad. MnDOT is completing the required environmental documentation in coordination with the FHWA. A Planning and Environmental Linkage (PEL) Study is in process, and, once federal funding is identified, a Categorical Exclusion will be completed with FHWA approval. The project environmental documents will be complete in 2018. The project will be authorized by the FHWA as a Project of Division Importance (PODI). If TIGER and INFRA funding are awarded, project construction will begin in 2019. Permits for the project could potentially include: Minnesota Department of Natural Resources (DNR) – Waters. The reconstruction of the Miller and Coffee Creek culverts provide an opportunity for creek enhancements, which is supported by the DNR, so the permit is likely to be issued. US Army Corps of Engineers (USACE) – Wetlands. Wetland impacts are expected to be minimal and the new USACE transportation general permit is simplified for projects with less than five acres of wetland impacts. Minnesota Pollution Control Agency (MPCA) – National Pollutant Discharge Elimination System (NPDES). This permit is required on all construction projects to address temporary and permanent stormwater and erosion control. Railroads – With five railroads in the vicinity, agreements for flagging and other possible interruptions could represent issues, but based on railroads’ support such issues should be minimized. BNSF has reviewed the preliminary concept for the new
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bridge over the rail yard for Component 1 (the connection between Courtland Street and Railroad Street). Major concerns for the bridge are vertical and horizontal clearances. Added security to the rail yard is a benefit to all. MnDOT has held public meetings since June 2016 in an effort to raise awareness about the project needs and to obtain input from the local community, cities, and businesses in the area. MnDOT has also engaged business groups and had exhibits at local community events. MnDOT has held several meetings with stakeholders to exchange details regarding local user needs. Comments received from these efforts have been evaluated, and changes have been incorporated into the design to address concerns previously noted in the application (geometric and structural deficiencies, access). 6.3.2. STATE AND LOCAL APPROVALS Municipal consent is needed when either the capacity (number of lanes) is being changed or right-of-way is being acquired. For the Courtland Street connection (Component 1), new right- of-way will be needed; therefore, municipal consent from the City of Duluth will be sought. Since the City of Duluth has indicated its support (see letter of support in Attachment A), municipal consent is not anticipated to be an issue. While approvals are not required from other local agencies, the project has extensive support. As demonstrated in Attachment A, MnDOT has support for this project from the Cities of Duluth and Superior, MIC, DSPA, and many area businesses. The City of Duluth is working in partnership for Component 1 (the Courtland Street connection) and will take jurisdiction over the new street segment when complete. The DSPA is also working in partnership with MnDOT to define the freight needs in the area and generate support for the project. 6.3.3. FEDERAL TRANSPORTATION REQUIREMENTS AFFECTING STATE AND LOCAL PLANNING Connections 2040: The Duluth-Superior Long Range Transportation Plan (MIC, October 2014) includes three of the four components of the TPI reconstruction project. The interchanges at I- 535/Garfield Avenue and I-35/27th Avenue West are included as mid-term projects (2020-2024), and the reconstruction of the I-35/I-535 interchange is included as a long-term project (2025- 2040). The Courtland Street connection is not included in this plan. MnDOT District 1’s Draft 10-Year Capital Highway Investment Plan (CHIP) (2018-2027) (MnDOT, June 2017) also includes elements of the TPI reconstruction project. The I-35/27th Avenue West interchange, US 53 approach bridges, and I-535/Garfield Avenue interchange are identified as projects in 2021, 2023, and 2024, respectively. MnDOT’s 2018-2021 State Transportation Improvement Program (STIP) includes the I-35/27th Avenue West interchange as a 2021 project. The other elements of the TPI reconstruction project are included in the CHIP and Transportation Improvement Program (TIP) for future years and will be added to the STIP. 6.3.4. ASSESSMENT OF PROJECT RISKS AND MITIGATION STRATEGIES The project is an important part of the state’s highway program, and the State of Minnesota has a long history of successful management of such projects. Based on the risks and mitigation strategies shown in Table 7, there appear to be no risks that cannot be managed and mitigated
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effectively. A limited number of risks to project implementation and completion exist. Table 7 presents these risks, as well as the strategies and plans to mitigate them if they occur.
Table 7: Possible Risks and Mitigation Strategies
Risk Description Mitigation Strategy
Impact Likelihood
Treatment of The area potentially Environmental Phase I studies indicate hazardous or includes hazardous or contaminants. Disposal areas within 10
contaminated contaminated soils miles of project; costs included in the
High High
materials project estimate
Lead paint on existing Assessments have been completed, and
bridges demolition plan will include techniques High High to capture and dispose of the lead paint
Environmental Environmental A categorical exclusion document is approvals could documentation must be being prepared for the project
delay project completed by spring 2018 Low High
to meet schedule
Environmental permits Agency coordination with permitting
must be obtained before authorities will be conducted during Low construction can begin High preliminary engineering
Noise mitigation The northwest portion of Noise analysis has been initiated and will may be required the project is adjacent to be completed as part of the
residential properties Low environmental review process Medium
Historic and Two potentially historic The project will span the entire railroad future railroad and a planned passenger corridor. Bridge piers will be placed to
impacts may rail are within the project avoid railroad impacts. Low adversely affect limits Low design and cost
Right-of-way and Agreement required to Coordination between MnDOT and railroad utilize railroad right of railroad authorities is ongoing
agreements way for proposed Low High Courtland Street
Utilities may Sanitary sewer and gas Subsurface utility engineering has been impact design, main are in project area completed
schedule, and Low
cost Medium
Cost overruns Escalation of project cost The project will use CMGC to engage the due to uncertainties in contractor during the design process to
the existing conditions or minimize changes during construction Medium construction Medium and maximize efficiency
24 7. Large/Small Project Requirements Table 8: Large Project Requirements Large Project Determination Response 1. Does the project generate national Yes, as described in Section 5.1. The project will or regional economic, mobility, remove barriers to freight accessing the interstate and safety benefits? NHS, improving congestion and mobility for businesses, residents, and tourists. Updating the infrastructure and modernizing geometrics will result in an annual crash reduction of 16 percent. 2. Is the project cost-effective? Yes, as discussed in Section 5.1.1. The benefit-cost ratio is 4.2 with a discount rate of 7 percent and 24.5 with a discount rate of 3 percent. 3. Does the project contribute to one Yes, this project contributes to the following goals: or more of the goals listed under 23 (1) Safety – see Section 5.1.2 USC 150? (2) Infrastructure condition – see Section 5.1.2 (5) Freight movement and economic vitality – see Section 5.1.3 (6) Environmental sustainability – see Section 5.3.3 (7) Reduced project delivery delays – see Section 5.3 4. Is the project based on the results of Yes, documentation of preliminary engineering preliminary engineering? activities is available on the project website.10 5a. With respect to non-Federal Yes, as shown in Table 3. To date, $75.3 million in state financial commitments, does the funds have been secured for the project. project have one or more stable and dependable funding or financing sources to construct, maintain, and operate the project? 5b. Are contingency amounts available Yes, the project budget includes $24,480,000 in to cover unanticipated cost contingency (12% of the total budget) (see Table 2). increases? 6. Is it the case that the project cannot Yes. As discussed in Section 5.2, it will not be possible be easily and efficiently completed for MnDOT to address the entire interchange in one without other Federal funding or project without INFRA funding. Without federal INFRA financial assistance available to the funding, MnDOT will likely allocate funding from 2022- project sponsor? 2036 to address the condition of the bridges in this interchange. If INFRA funding is provided, MnDOT is committed to allocate new funds or reprioritize existing projects to provide the required match. 7. Is the project reasonably expected Yes, construction will begin in June 2019. See the to begin construction not later than detailed project schedule Attachment D. 18 months after the date of obligation of funds for the project?
10 http://www.dot.state.mn.us/d1/projects/twin-ports-interchange/technicaldocuments.html
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Attachment A: Letters of Support
AMY KLOBUCHAR MINNESOTA
COMMITTEES: AGRICULTURE, NUTRITION, AND FORESTRY "Enited States ^tnate COMMERCE. SCIENCE, WASHINGTON, DC 20510 AND TRANSPORTATION JOINT ECONOMIC COMMITTEE JUDICIARY
RULES AND ADMINISTRATION
September 20, 2017
The Honorable Elaine Chao Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SB Washington, DC 20590
Dear Secretary Chao:
I write in support of the Minnesota Department of Transportation's(MnDOT) application for funding through the Infrastructure for Rebuilding America(INFRA) program for the Twin Ports Interchange project. The funding would be used to make important safety Improvements and facilitate increased freight movement through the Port of Duluth-Superior.
The Port of Duluth-Superior is the largest port on the Great Lakes, hosting approximately 1,000 vessels and handling an average of 35 million short tons of cargo per year. The port plays an important role in the region's economy and supports industries from agriculture to manufacturing. The Twin Ports Interchange project will help ensure the expected growth of freight traffic over the coming years is handled safely and efficiently.
INFRA funding would allow MnDOT to begin work to replace the 1-35/1-53 5/Highway 53 interchange and improve the I-535/Garfield Avenue interchange, allowing for better access to the port for multimodal freight shipping. Making these improvements will increase direct access to the interstate system for port traffic. By modernizing the outdated configuration of the interchange and improving the flow of traffic, the project will result in a safer, more efficient interchange.
I strongly support MnDOT's application for funding through the INFRA program. Thank you for your consideration.
Sincerely,
lobuchar tates Senate
RICHARD M. NOLAN COMMIITEEON AGRICULTURE
AND RISK MANAGEMENT
C011tSUIV.&tlON AND FDAIEStftV WASHINGTON OFFICE 2366 �AY8UftN HOUSIE Orna BUIU>ING. WAStt11(GTOP\I.DC 20515 COUWIITEE ON TRANSPORTATION AND 12021n�211 INFRASTRUCTURE AVIATION NOLAN.HOUSE.GOV FACEBOOK.COMI\JSREPRICKNOLA>J September I 4, 20 I 7 The HonorableE laine Chao Secretary of Transportation United States Department of Transportation I 200 New Jersey A venue, SE Washington, D.C. 20590 Dear Secretary Chao: I am pleased to submit this Letter of Support for the Minnesota Department of Transportation's (MnDOT) application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally Significant Freight and Highway Projects (INFRA) program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of Duluth-Superior to regional, national, and international destinations. The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located at the south shore of Lake Superior and at the north end of 1-35, one of the nation's principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: 1-35, US-53, and US-2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of 1- 35 and 1-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. Thank you for your consideration of Mn DOT' s application. I firmly believe this project will preserve the economic competitiveness for the city of Duluth and its surrounding areas, improve highway safety, and boost the efficiency of the Duluth Seaway Port. Sinc 7') Member/1t !of Congressf. OUlUTH OFFICE BRAINERD OFFICE CENTER CITY OFFICE CH SHOlM OFFICE 11 EAST Suf'fJUOII SnlEET, Sun! 125 501LAUREL SfflE l t 313 N MA•N Sr ROOM 174 316 WU.Tl.AKI Snu:n ,1 DULUTH, MN 55802 911AINEIIP,MN 56401 C[NTUI OTY MN 55012 CHt$HCLM. MN 55719 l'>tONE 12181464-5095 PHON( (218' 454-4078 PHONE. {2181491-:)131 P,,ON[ 1218) 491-3114 STATE OF MINNESOTA Office of Governor Mark Dayton 130 State Capitol ♦ 75 Rev. Dr. Martin Luther King Jr. Boulevard ♦ Saint Paul, MN 55155 October 16, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Letter of Support — Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: I fully support the Minnesota Department of Transportation's INFRA grant application to fund the Twin Ports Interchange Reconstruction Project. This project will improve highway truck freight movement on Interstate-35 and Interstate-535. It will provide direct access to the interstate highway system for truck traffic, now diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase highway traffic safety by reducing current bottlenecks and outdated interchange configuration. New pedestrian and bicycle accommodations will safely connect local communities to the beautiful Lake Superior waterfront. These highway improvements will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Twin Ports of Duluth- Superior to regional, national, and international destinations. The Duluth-Superior Twin Ports facility is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, which is the number-one trade partner with Minnesota and the nation. It is also the second largest dry bulk port in the U.S. The proposed transportation improvements will greatly improve safety and mobility on the interstate mainline and ramps and improve access to and from regional businesses that will encourage economic growth in this part of the region. Voice: (651) 201-3400 or (800) 657-3717 Fax: (651) 797-1850 MN Relay (800) 627-3529 Website: http: / / governor.state.mn.us An Equal Opportunity Employer Printed on recycled paper containing 15% post consumer material and state government printed The Honorable Elaine Chao October 16, 2017 Page 2 The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: 1-35, US-53, and US-2, and four Class 1 railroads: Canadian National, Burlington Northern — Santa Fe, Canadian Pacific and Union Pacific. I appreciate your consideration of this project. If you have any questions, please contact Minnesota Department of Transportation Commissioner Charlie Zelle at 651- 366-4800 or [email protected] . Duluth-Sup�rior Metropolitan Interstate Council Guiding the Future of Transportation for the Twin Ports Area August 17, 2017 J The Honorable Elaine Cha6 Secretary of Transporta��n , United States Department of Transportation 1200 New Jersey, Avenue, SE Washington, DC 20590 221 West Subject: Letter of Support - Twin Ports Interchange Reconstruction Project First Street Nationally Significant Freight and Highway'Proje_cts (INFRA) Funding Application Duluth, MN Dear Secretary Chao: 55�02 Qn behalf of the Duluth-Superior Metropolitan Interstate Council (MIC), we are pleased tel 218:-529-7541 to submit this L�tter of Support for the Minnesota D�p�utment of Transport�tion' s fax 218-529-7592 application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally SignificantFrei ght and Highway Projects (INFRA) program. www.dsmic.org This project will facWtate int�rmodal freight and oversize, overweight (OSOW) movem�nts-between the rapidly growing Port of D;u_luthSuperior lo regional, nationalr. and international destinations. ,The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways'for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located atthe south shore of Lake Superior and at the north end of I-35, one of the nation's principal :f;'JAFTA trade corridors. The Twin Ports are served by three major Duluth-Superior highway corridors between Minnesota- and Wisconsin: I-35, US-:-53, and US-2, and four ur.banarea Class I railroads: CN, Bf.JSF, CP and UP. communities' cooperating in This project will improve outdated geometrics and load capacity on ramps and the planning and I mainline of I-35 and I-535. It will provide direct acceps to the Interstate system for ,truck development traffic that currently is diverted to local streets, at significant costs to shippers and ' through a joint f ·, disruption to the local businesses and residents. The _project will increase safety by' venture of the reducing thecurrent bottl�necks and outdated interchange configuration·. When Arrowhead Regional Development Commission and the Northwest Regional Planning Commission ARDC is an equq.l opportunityemployer August 31, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Letter of Support – Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: On behalf of Duluth Local Initiatives Support Corporation (Duluth LISC), I am pleased to submit this Letter of Support for the Minnesota Department of Transportation’s application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally Significant Freight and Highway Projects (INFRA) program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of Duluth-Superior to regional, national, and international destinations. The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located on the western tip of Lake Superior, one of the nation’s principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: I-35, US-53, and US-2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of I- 35 and I-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. LISC is a national leader in the development and implementation of place-based strategies to revitalize and create sustainable communities. As the nation’s largest nonprofit community development intermediary, LISC works in 31 local urban sites and over 65 rural programs to help DULUTH LOCAL INITIATIVES SUPPORT CORPORATION 202 W. SUPERIOR ST. STE 401, DULUTH, MN 55802 * PHONE: 218/727-7761 * FAX: 218/727-7769 WWW.LISC.ORG/DULUTH build the capacity of neighborhood residents to revitalize their own communities. We do this by partnering with a broad range of private, public and nonprofit organizations, and providing financial, technical, policy advocacy and convening support to build healthy, sustainable communities throughout the country. We are pleased that MnDOT is partnering with LISC to seek ways to leverage critical infrastructure investments to increase manufacturing job creation opportunities for the Duluth community. This application represents an example of our new partnership. The interchange improvements present a significant economic development opportunity. LISC is especially interested in the opportunity to link workforce development training to the creation of career pathways which will result in increased career and income asset building opportunities within our community. The initiatives within this grant application supports our priorities to invest in efforts that stimulate economic development, grow jobs, and create opportunities for Duluth and Superior residents to build incomes, assets, and career opportunities. We strongly support MnDOT’s application for these funds. Thank you for your consideration, and please feel free to contact me with any questions. Sincerely, Pam Kramer Executive Director Duluth LISC DULUTH LOCAL INITIATIVES SUPPORT CORPORATION 202 W. SUPERIOR ST. STE 401, DULUTH, MN 55802 * PHONE: 218/727-7761 * FAX: 218/727-7769 WWW.LISC.ORG/DULUTH September 12, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Letter of Support – Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: On behalf of Midwest Shippers Association I would like to submit this Letter of Support for the Minnesota Department of Transportation’s application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally Significant Freight and Highway Projects (INFRA) program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of Duluth-Superior to regional, national, and international destinations. The Port of Duluth- Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located on the western tip of Lake Superior, one of the nation’s principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: I-35, US-53, and US- 2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of I-35 and I-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. The Midwest Shippers Association is a regional agricultural trade organization made up of a diverse range of agribusinesses involved in exporting premium specialty and commodity grains, oilseeds and grain ingredients worldwide. Our member exporters nearly all rely on containerized shipping to their customers overseas. We have been working to support and collaborate with Duluth’s admirable effort to bring container shipping service to the Twin Ports for at least three years. We have been excited to see the Duluth/CN Rail development get started, and we have had members use the service. But we also believe, the project is still new, in its infancy, and holds the potential to be a larger contributing force for the northern Minnesota, Red River Valley and western Wisconsin region and beyond. We also have been an active supporter of efforts to reinvigorate agricultural grain shipping on the Great Lakes to overseas markets from ports like Duluth. These major rail and water shipping infrastructure improvements at Duluth inherently also involve and require dependable highway access for trucking and drayage. We extend our support for public investment to support for the Duluth transportation system’s further development, in as much as our organization continues to provide our logistical and marketing support for the port’s development. The initiatives within this grant application support our goals to expand the range of shipping options for agricultural exporters who are seeking to serve their overseas customers in an ever more competitive global market. Maintaining and improving highway service at the Twin Ports will serve the needs of our multi-state region’s vital agricultural shipping and trading sector. Thank you for your consideration and approval of this application. Sincerely, Bruce Abbe President & CEO Midwest Shippers Association KIRSCHER lRANSPORT 2001 North 9th Avenue Virginia, Minnesota 55792 (218) 749 5100 (800) 377 9228 September 6, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Letter of Support - Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: On behalf of Kirscher Transport, I am pleased to submit this Letter of Support for the Minnesota Department of Transportation's application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally Significant Freight and Highway Projects (INFRA) program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of Duluth-Superior to regional, national, and international destinations. The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located at the south shore of Lake Superior and at the north end of 1-35, one of the nation's principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: 1-35, US-53, and US-2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of 1-35 and 1-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. Our Organization performs heavy haul transportation in the Northern Minnesota area. The initiatives within this grant application support needs for necessary infrastructure repairs to our local communities to allow safer travel for us and the public, and will allow more suitable routes of travel in and out of the Port of Duluth, local businesses, and the surrounding area. Thank you for your consideration and approval of this application. �ely, �� Brian P. Foster President Kirsch er Transport HEAVY SPECIALIZED HAULING/MACHINERY MOVING/RIGGING/BULK COMMODITIES GRAYMONT August 29, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, 20590 Subject: Letter of Support - Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: On behalf of Graymont (WI) LLC, I am pleased to submit this Letter of Support for the Minnesota Department of Transportation's application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Minnesota Transportation Economic Development Program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of DuluthSuperior to regional, national, and international destinations. The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located at the south shore of Lake Superior and at the north end of 1-35, one of the nation's principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: 1-35, US-53, and US-2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of 1-35 and 1-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. Graymont is the second largest provider of lime and limestone products in North America. Our Superior Wisconsin plant services the upper Midwest, providing lime to power, pulp and paper and chemical industries in addition to public water and wastewater treatment plants. Sixty to seventy percent of our products are transported by trucks, several hundred thousand tons. The initiatives within this grant application support our goals to continue to provide a safe, solid infrastructure for delivering our products to our customers. 800 Hill Avenue Superior, Wisconsin, 54880 USA 1800 Riverview Drive, Northfield, MN Phone: 507-301-0739 Fax: 507-301-0723 August 31, 2017 The Honorable Elaine Chao Secretary of Transportation United States Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 Subject: Letter of Support – Twin Ports Interchange Reconstruction Project Nationally Significant Freight and Highway Projects (INFRA) Funding Application Dear Secretary Chao: On behalf of Perkins Specialized Transportation Contracting, we are pleased to submit this Letter of Support for the Minnesota Department of Transportation’s application for a grant to help fund the Twin Ports Interchange Reconstruction Project under the Nationally Significant Freight and Highway Projects (INFRA) Program. This project will facilitate intermodal freight and oversize, overweight (OSOW) movements between the rapidly growing Port of Duluth-Superior to regional, national, and international destinations. The Port of Duluth-Superior is the largest U.S. port on the Great Lakes and one of the largest marine gateways for U.S. trade with Canada, the number-one trade partner of Minnesota and the nation. The Port is located at the south shore of Lake Superior and at the north end of I-35, one of the nation’s principal NAFTA trade corridors. The Twin Ports are served by three major highway corridors between Minnesota and Wisconsin: I-35, US-53, and US-2, and four Class I railroads: CN, BNSF, CP and UP. This project will improve outdated geometrics and load capacity on ramps and the mainline of I-35 and I-535. It will provide direct access to the Interstate system for truck traffic that currently is diverted to local streets, at significant costs to shippers and disruption to the local businesses and residents. The project will increase safety by reducing the current bottlenecks and outdated interchange configuration. Additionally, new pedestrian and bicycle accommodations will connect communities to the Lake Superior waterfront. Our Organization specializes in transporting cargo that is extremely oversize or overweight, on custom assembled trailers. The initiatives within this grant application support our goals to improve and allow our routing for loads going into and out of the Port of Duluth. We transport high, wide, long, and heavy loads. Much of this work can come into the port from overseas or other parts of the US. There are many ‘super-size’ loads that can be brought to the Port of Duluth and shipped overseas and to other parts of the US Thank you for your consideration and approval of this application. Sincerely, Shelley Latham Business Development Manager Perkins STC www.PerkinsSTC.com | 877-PERKINS | [email protected] Attachment B: Documentation of Non-Federal Funding Commitments Attachment C: Benefit-Cost Analysis Twin Ports Interchange Benefit Cost Analysis This attachment describes components of the benefit-cost analysis for the project. Lettered headings correspond to sections of the accompanying spreadsheet that includes details of this benefit-cost analysis. In the spreadsheet, input variables affecting the calculations are highlighted in yellow and with a thick border. A. Project Costs Project costs include two components. The principal costs are those for planning and engineering and for construction. These costs total $224 million for the Without Project alternative and $204 million for the With Project alternative. The Without Project alternative will reconstruct the current interchange over time in stages beginning in 2023 and ending in 2036. The With Project costs are for replacing the entire interchange with a redesigned and expanded interchange as described in the narrative. These costs will occur over a four year period from 2019 to 2022. While the Without Project costs are higher than the With Project costs the Without Project costs occur later, so in discounted terms the With Project costs are higher. The second, and much smaller, cost is the difference in extraordinary maintenance and repair (above “usual” costs) that will continue to be incurred because of the deteriorating interchange structure. This is estimated at $300,000 per year with a real increase of 3% per year. These costs would be reduced over time as project phases are completed, but due to the later completion of the Without Project replacements the additional maintenance costs total adds $3.0 million to the Without Project NPV at a discount rate of 3% compared to a $0.6 million NPV cost for the With Project maintenance. The Net Project cost is the difference between the With Project cost less the Without Project cost. This amounts to a $14.2 million NPV at a 3% discount rate and a $39.8 million NPV at a 7% discount rate. B. Project Benefits Summary Principal calculated project benefits are included in three categories for which details are shown in D, E, and F. The largest benefit is the reduction in travel delays for tourism, conventions and residents. C. Benefit Cost Analysis Based on the assumptions and computations described in following sections, at a 7% discount rate Total Benefits from the project are $207.5 million compared to a NPV of Net Project cost of $39.8 million, resulting in a Total Net benefit of $167.6 million and a benefit cost ratio of 4.2. The results are much more positive at the lower discount rate of 3%. D. Savings in Diversion Costs of Overweight/Oversized Cargos on Local Streets. Based on statistics from the Port of Duluth Superior and from MnDOT permits, an estimated 3,000 overweight loads are diverted onto hilly local streets rather than being able to directly access the interstate highway system from or to the port. These volumes are projected to increase 5% per year, especially considering the growing market for wind power equipment. As discussed in Section 5.1.3 of the narrative (with an accompanying picture in Figure 7), overweight cargos are enormous slow moving loads requiring large trucks and other heavy equipment, multiple drivers/crew, police details, and in some cases temporary movement of electrical utilities. These delays on local streets are estimated to add an additional 3 hours per trip, although delays can significantly exceed this average. An example is when a heavy and long load gets hung up on the Piedmont Avenue/West 1st Street intersection and must be jacked off the hump in the intersection so that the load can be moved along on its trip. The number of heavy loads is multiplied by the average hours of delay and by estimated costs per hour to compute the total annual cost of delays. The hourly costs include driver/crew costs (at two personnel per load), equipment operating and fuel costs. State and local costs are roughly estimated at half the costs of the transportation costs. These costs include permitting, state and local police details and other traffic management, required utility work and street maintenance and repair resulting from wear and tear on local streets. The With Project alternative will eliminate 6 years of these costs, from 2021 through 2026, with costs averaging over $2 million per year. The net present value of these savings is $8.2 million at a discount rate of 7% and $10.5 million at 3%. E. Reduction in Tourism, Convention, and Resident Delays The largest benefit that will result from the project is a reduction in the severe highway traffic delays in downtown Duluth that are experienced by the millions of tourist and business visitors to the Twin Ports region and by the many residential users of the Duluth Entertainment Convention Center and other cultural and recreational attractions on the waterfront. As noted in the narrative, 4 million tourists and business people visit Duluth each year. Delays on the I-35 central artery are legendary and will, of course, never be eliminated. But if these delays can be reduced even slightly this will result in millions of saved hours that visitors could be put to much better use (including spending time at local attractions). If visitors and attendees at waterfront venues benefit even slightly from the redesigned and reconstructed Twin Ports Interchange the corresponding cost reductions due to delays will be enormous. The analysis included here assumes 4 million people affected each year and just 15 minutes of time saved for each person. At a value of $12.50 per hour this translates to an annual savings over $13 million per year, doubling over 30 years. While improvements to the entire interchange implemented over time will contribute to reducing these delays, the Courtland Street portion of the project will provide the most significant impact, and this benefit lasts over the entire 30 year time horizon of the analysis since it is not part of the Without Project replacement program. This part of the With Project interchange effectively adds capacity to the interchange. Cost savings total $340 million in NPV at a discount rate of 7% and $180 million at a 3% rate. F. Intermodal Terminal Transportation Cost Savings The development of the new Canadian National Railway intermodal terminal at the port is projected to reach a volume of 60,000 loaded trucks per year by 2027 based on its successful launch in 2017 and market research on container traffic in the region from Minneapolis/St. Paul to northern Wisconsin that is currently served by intermodal terminals in Minneapolis and St. Paul. Each one of these truckloads represents 2 truck trips, one to the port and one from the port. Thus it is projected that there will be a total of 120,000 truck trips that will be subject to delays on the interchange and entering and leaving the Port. Using an assumed delay of 15 minutes per truck trip this represents 30,000 hours of truck delays per year. Reduction in assumed intermodal terminal delays begins in 2022 and benefits continue through 2032 when equivalent Without Project work is completed. Altogether, savings in truck delays may be expected to grow from $1.1 million in 2022 to $1.9 million in 2032 with a total NPV of $9.4 million at a discount rate of 7% and $13.7 million at 3%. Risks and Sensitivities In addition to the sensitivity of the discount rate several other factors could affect the overall benefit cost analysis results. For diversion costs of heavy trucks on local streets the average hours of delay are based on personal observations of local personnel and comments by industry, rather than measured statistics. Given the very slow movement of large loads and very long exceptions, the 3 hour average could be conservative. A doubling of the average hourly delays would also double the cost savings benefits, from $8.2 million to $16.3 million at a discount rate of 7%. The largest benefit of the project is from reducing average time delays experienced by tourists, business people and residents. While there are no statistical measurements available for these delays, the 15 minute time delay included in the analysis seems quite low. Using a larger average time delay would increase the benefit proportionately. However, lowering the estimated time delay by half would still result in related benefits of $95 million and reduce the benefit cost ratio to 1.8 at a 7% discount rate. Other Benefits This benefit cost analysis does not include some quantifiable and non-quantifiable benefits that are smaller than the benefit categories discussed above but would add to the benefit-cost ratio. These include safety benefits that will result from the improved design of the Twin Ports Interchange (see section 5.1.2 of the narrative) and from lowered emissions associated with reduced vehicle delays from each of the benefit categories described above. Benefit-Cost Analysis with 3% Discount Rate Twin Ports Interchange Benefit Cost Analysis Factor Value NPV 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Discount Rate Dicount Rate 3.0% A. Project Costs Without Project Costs $165,931,287 Project Costs $162,960,413 0 0 0 0 0 $14,500,000 $46,387,720 $73,413,630 0 0 0 0 0 $22,459,950 $22,459,950 $0 Gross Extraordinary Maint/Repair Growth in Real Maint/Repair 1.03 $4,941,765 $0 $0 $300,000 $309,000 $318,270 $327,818 $337,653 $347,782 $358,216 $368,962 $380,031 $391,432 $403,175 $415,270 $427,728 $440,560 Share Remaining 100% 100% 100% 100% 100% 80% 50% 50% 50% 50% 50% 50% 40% 30% Net Maint/Repair $2,970,874 $300,000 $309,000 $318,270 $327,818 $337,653 $278,226 $179,108 $184,481 $190,016 $195,716 $201,587 $207,635 $171,091 $132,168 With Project Costs $180,180,023 Project Costs $179,568,373 $0 $17,000,000 $14,000,000 $58,000,000 $115,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Share Remaining 90% 80% 40% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Net Maint/Repair $611,650 $270,000 $247,200 $127,308 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Project Cost $14,248,736 B. Summary of Project Benefits (from E. to G. below Diversion Costs Without Project $12,089,472 $0 $0 $1,780,097 $1,869,101 $1,962,556 $2,060,684 $2,163,718 $2,271,904 $2,385,500 $0 $0 $0 $0 $0 $0 $0 With Project $1,629,040 $0 $0 $1,780,097 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diversion Cost Savings $10,460,431 Intermodal Terminal Transportation Cost Savings $13,749,307 Reduction in delays Tourism, Conventions and Residents $339,805,825 Total Benefits $364,015,563 C. Benefit Cost Analysis Total Benefits 364,015,563 Total Net Project Cost 14,248,736 Total Net Benefits 349,766,827 Benefit Cost Ratio 24.5 D. Diversion of Overweight Trucks on Local Streets Diversion Cost Total $0 $0 $1,780,097 $1,869,101 $1,962,556 $2,060,684 $2,163,718 $2,271,904 $2,385,500 $2,504,775 $2,630,013 $2,761,514 $2,899,590 $3,044,569 $3,196,798 $3,356,637 Diverted Truck/Large Equipment Trips Annual growth 1.05 3,000 3,150 3,308 3,473 3,647 3,829 4,020 4,221 4,432 4,654 4,887 5,131 5,388 5,657 5,940 6,237 Total truck/Large equipment hours Added hours per truck trip 3.0 9,000 9,450 9,923 10,419 10,940 11,487 12,061 12,664 13,297 13,962 14,660 15,393 16,163 16,971 17,819 18,710 Truck Operating Costs per Hour $120 $1,076,400 $1,130,220 $1,186,731 $1,246,068 $1,308,371 $1,373,789 $1,442,479 $1,514,603 $1,590,333 $1,669,850 $1,753,342 $1,841,009 $1,933,060 $2,029,713 $2,131,198 $2,237,758 Fuel use Truck Operating Costs (ATRI 2015) times 1.5 $24 $216,000 $226,800 $238,140 $250,047 $262,549 $275,677 $289,461 $303,934 $319,130 $335,087 $351,841 $369,433 $387,905 $407,300 $427,665 $449,048 Other operating costs Truck Operating Costs (ATRI 2015) times 2.0 $44 $396,000 $415,800 $436,590 $458,420 $481,340 $505,407 $530,678 $557,212 $585,072 $614,326 $645,042 $677,294 $711,159 $746,717 $784,053 $823,256 Numer of crew per truck/large equipment 2 Crew cost Truck driver VOT (Guidance) $25.80 $464,400 $487,620 $512,001 $537,601 $564,481 $592,705 $622,340 $653,457 $686,130 $720,437 $756,459 $794,282 $833,996 $875,695 $919,480 $965,454 State and Local Cost (proportion of Truck costs) 0.5 State and Local Costs $60 $538,200 $565,110 $593,366 $623,034 $654,185 $686,895 $721,239 $757,301 $795,167 $834,925 $876,671 $920,505 $966,530 $1,014,856 $1,065,599 $1,118,879 Permiting Traffic control, police details Utility work Street maintenance E. Tourism, Convention and Resident Delays Number of Affected People/Trips Annual growth 1.03 4,000,000 4,120,000 4,243,600 4,370,908 4,502,035 4,637,096 4,776,209 4,919,495 5,067,080 5,219,093 5,375,666 5,536,935 5,703,044 5,874,135 6,050,359 6,231,870 Average extra hours of delay per person 0.25 Total extra hours of delay 0 0 1,060,900 1,092,727 1,125,509 1,159,274 1,194,052 1,229,874 1,266,770 1,304,773 1,343,916 1,384,234 1,425,761 1,468,534 1,512,590 1,557,967 Cost per hour Personal VOT (Guidance) $12.50 Cost of extra delays $339,805,825 $0 $0 $13,261,250 $13,659,088 $14,068,860 $14,490,926 $14,925,654 $15,373,423 $15,834,626 $16,309,665 $16,798,955 $17,302,923 $17,822,011 $18,356,671 $18,907,372 $19,474,593 F. Intermodal Terminal Truck Delays Number of affected truck trips 0 0 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 Average hours of delay per truck trip 0.25 Total hours of truck delay 0 0 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 30,000 30,000 30,000 30,000 30,000 Truck Operating Costs per Hour $64 Fuel use Truck Operating Costs (ATRI 2015) $16 Other operating costs Truck Operating Costs (ATRI 2015) $22 Driver cost Truck driver VOT (Guidance) $25.80 Total truck delay costs $13,749,307 0 0 0 0 1,116,500 1,276,000 1,435,500 1,595,000 1,754,500 1,914,000 1,914,000 1,914,000 1,914,000 1,914,000 1,914,000 Benefit-Cost Analysis with 3% Discount Rate Twin Ports Interchange Benefit Cost Analysis 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Total Discount Rate Dicount Rate A. Project Costs Without Project Costs Project Costs $0 $22,356,056 $22,356,056 0 0 0 0 0 0 0 0 0 0 0 223,933,361 Gross Extraordinary Maint/Repair $453,777 $467,390 $481,412 $495,854 0 0 0 0 0 0 0 0 0 0 Share Remaining 30% 20% 10% 10% Net Maint/Repair $136,133 $93,478 $48,141 $49,585 With Project Costs Project Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 204,000,000 Share Remaining 0% 0% 0% 0% Net Maint/Repair $0 $0 $0 $0 Net Project Cost B. Summary of Project Benefits (from E. to G. below Diversion Costs Without Project $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 With Project $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diversion Cost Savings Intermodal Terminal Transportation Cost Savings Reduction in delays Tourism, Conventions and Residents Total Benefits C. Benefit Cost Analysis Total Benefits Total Net Project Cost Total Net Benefits Benefit Cost Ratio D. Diversion of Overweight Trucks on Local Streets $3,524,469 $3,700,693 $3,885,727 $4,080,014 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diverted Truck/Large Equipment Trips 6,549 6,876 7,220 7,581 7,960 8,358 8,776 9,215 9,675 10,159 10,667 11,200 11,760 12,348 Total truck/Large equipment hours 19,646 20,628 21,660 22,743 23,880 25,074 26,327 27,644 29,026 30,477 32,001 33,601 35,281 37,045 Truck Operating Costs per Hour $2,349,646 $2,467,129 $2,590,485 $2,720,009 $2,856,010 $2,998,810 $3,148,751 $3,306,188 $3,471,498 $3,645,072 $3,827,326 $4,018,692 $4,219,627 $4,430,608 Fuel use $471,501 $495,076 $519,830 $545,821 $573,112 $601,768 $631,856 $663,449 $696,622 $731,453 $768,025 $806,427 $846,748 $889,085 Other operating costs $864,418 $907,639 $953,021 $1,000,672 $1,050,706 $1,103,241 $1,158,403 $1,216,323 $1,277,140 $1,340,997 $1,408,046 $1,478,449 $1,552,371 $1,629,990 Crew cost $1,013,727 $1,064,413 $1,117,634 $1,173,516 $1,232,191 $1,293,801 $1,358,491 $1,426,416 $1,497,736 $1,572,623 $1,651,254 $1,733,817 $1,820,508 $1,911,533 State and Local Costs $1,174,823 $1,233,564 $1,295,242 $1,360,005 $1,428,005 $1,499,405 $1,574,375 $1,653,094 $1,735,749 $1,822,536 $1,913,663 $2,009,346 $2,109,814 $2,215,304 Permiting Traffic control, police details Utility work Street maintenance E. Tourism, Convention and Resident Delays Number of Affected People/Trips 6,418,826 6,611,391 6,809,732 7,014,024 7,224,445 7,441,178 7,664,414 7,894,346 8,131,176 8,375,112 8,626,365 8,885,156 9,151,711 9,426,262 Average extra hours of delay per person Total extra hours of delay 1,604,706 1,652,848 1,702,433 1,753,506 1,806,111 1,860,295 1,916,103 1,973,587 2,032,794 2,093,778 2,156,591 2,221,289 2,287,928 2,356,566 Cost per hour Cost of extra delays $20,058,830 $20,660,595 $21,280,413 $21,918,826 $22,576,390 $23,253,682 $23,951,293 $24,669,831 $25,409,926 $26,172,224 $26,957,391 $27,766,113 $28,599,096 $29,457,069 F. Intermodal Terminal Truck Delays Number of affected truck trips 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 Average hours of delay per truck trip Total hours of truck delay Truck Operating Costs per Hour Fuel use Other operating costs Driver cost Total truck delay costs Benefit-Cost Analysis with 7% Discount Rate Twin Ports Interchange Benefit Cost Analysis Factor Value NPV 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Discount Rate Dicount Rate 7.0% A. Project Costs Without Project Costs $113,253,353 Project Costs $110,924,165 0 0 0 0 0 $14,500,000 $46,387,720 $73,413,630 0 0 0 0 0 $22,459,950 $22,459,950 $0 Gross Extraordinary Maint/Repair Growth in Real Maint/Repair 1.03 $3,251,233 $0 $0 $300,000 $309,000 $318,270 $327,818 $337,653 $347,782 $358,216 $368,962 $380,031 $391,432 $403,175 $415,270 $427,728 $440,560 Share Remaining 100% 100% 100% 100% 100% 80% 50% 50% 50% 50% 50% 50% 40% 30% Net Maint/Repair $2,329,188 $300,000 $309,000 $318,270 $327,818 $337,653 $278,226 $179,108 $184,481 $190,016 $195,716 $201,587 $207,635 $171,091 $132,168 With Project Costs $153,090,133 Project Costs $152,517,962 $0 $17,000,000 $14,000,000 $58,000,000 $115,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Share Remaining 90% 80% 40% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Net Maint/Repair $572,172 $270,000 $247,200 $127,308 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Project Cost $39,836,781 B. Summary of Project Benefits (from E. to G. below Diversion Costs Without Project $9,618,692 $0 $0 $1,780,097 $1,869,101 $1,962,556 $2,060,684 $2,163,718 $2,271,904 $2,385,500 $0 $0 $0 $0 $0 $0 $0 With Project $1,453,089 $0 $0 $1,780,097 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diversion Cost Savings $8,165,603 Intermodal Terminal Transportation Cost Savings $9,385,288 Reduction in delays Tourism, Conventions and Residents $189,927,710 Total Benefits $207,478,601 C. Benefit Cost Analysis Total Benefits 207,478,601 Total Net Project Cost 39,836,781 Total Net Benefits 167,641,821 Benefit Cost Ratio 4.2 D. Diversion of Overweight Trucks on Local Streets Diversion Cost Total $0 $0 $1,780,097 $1,869,101 $1,962,556 $2,060,684 $2,163,718 $2,271,904 $2,385,500 $2,504,775 $2,630,013 $2,761,514 $2,899,590 $3,044,569 $3,196,798 $3,356,637 Diverted Truck/Large Equipment Trips Annual growth 1.05 3,000 3,150 3,308 3,473 3,647 3,829 4,020 4,221 4,432 4,654 4,887 5,131 5,388 5,657 5,940 6,237 Total truck/Large equipment hours Added hours per truck trip 3.0 9,000 9,450 9,923 10,419 10,940 11,487 12,061 12,664 13,297 13,962 14,660 15,393 16,163 16,971 17,819 18,710 Truck Operating Costs per Hour $120 $1,076,400 $1,130,220 $1,186,731 $1,246,068 $1,308,371 $1,373,789 $1,442,479 $1,514,603 $1,590,333 $1,669,850 $1,753,342 $1,841,009 $1,933,060 $2,029,713 $2,131,198 $2,237,758 Fuel use Truck Operating Costs (ATRI 2015) times 1.5 $24 $216,000 $226,800 $238,140 $250,047 $262,549 $275,677 $289,461 $303,934 $319,130 $335,087 $351,841 $369,433 $387,905 $407,300 $427,665 $449,048 Other operating costs Truck Operating Costs (ATRI 2015) times 2.0 $44 $396,000 $415,800 $436,590 $458,420 $481,340 $505,407 $530,678 $557,212 $585,072 $614,326 $645,042 $677,294 $711,159 $746,717 $784,053 $823,256 Numer of crew per truck/large equipment 2 Crew cost Truck driver VOT (Guidance) $25.80 $464,400 $487,620 $512,001 $537,601 $564,481 $592,705 $622,340 $653,457 $686,130 $720,437 $756,459 $794,282 $833,996 $875,695 $919,480 $965,454 State and Local Cost (proportion of Truck costs) 0.5 State and Local Costs $60 $538,200 $565,110 $593,366 $623,034 $654,185 $686,895 $721,239 $757,301 $795,167 $834,925 $876,671 $920,505 $966,530 $1,014,856 $1,065,599 $1,118,879 Permiting Traffic control, police details Utility work Street maintenance E. Tourism, Convention and Resident Delays Number of Affected People/Trips Annual growth 1.03 4,000,000 4,120,000 4,243,600 4,370,908 4,502,035 4,637,096 4,776,209 4,919,495 5,067,080 5,219,093 5,375,666 5,536,935 5,703,044 5,874,135 6,050,359 6,231,870 Average extra hours of delay per person 0.25 Total extra hours of delay 0 0 1,060,900 1,092,727 1,125,509 1,159,274 1,194,052 1,229,874 1,266,770 1,304,773 1,343,916 1,384,234 1,425,761 1,468,534 1,512,590 1,557,967 Cost per hour Personal VOT (Guidance) $12.50 Cost of extra delays $189,927,710 $0 $0 $13,261,250 $13,659,088 $14,068,860 $14,490,926 $14,925,654 $15,373,423 $15,834,626 $16,309,665 $16,798,955 $17,302,923 $17,822,011 $18,356,671 $18,907,372 $19,474,593 F. Intermodal Terminal Truck Delays Number of affected truck trips 0 0 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 Average hours of delay per truck trip 0.25 Total hours of truck delay 0 0 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 30,000 30,000 30,000 30,000 30,000 Truck Operating Costs per Hour $64 Fuel use Truck Operating Costs (ATRI 2015) $16 Other operating costs Truck Operating Costs (ATRI 2015) $22 Driver cost Truck driver VOT (Guidance) $25.80 Total truck delay costs $9,385,288 0 0 0 0 1,116,500 1,276,000 1,435,500 1,595,000 1,754,500 1,914,000 1,914,000 1,914,000 1,914,000 1,914,000 1,914,000 Benefit-Cost Analysis with 7% Discount Rate Twin Ports Interchange Benefit Cost Analysis 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Total Discount Rate Dicount Rate A. Project Costs Without Project Costs Project Costs $0 $22,356,056 $22,356,056 0 0 0 0 0 0 0 0 0 0 0 223,933,361 Gross Extraordinary Maint/Repair $453,777 $467,390 $481,412 $495,854 0 0 0 0 0 0 0 0 0 0 Share Remaining 30% 20% 10% 10% Net Maint/Repair $136,133 $93,478 $48,141 $49,585 With Project Costs Project Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 204,000,000 Share Remaining 0% 0% 0% 0% Net Maint/Repair $0 $0 $0 $0 Net Project Cost B. Summary of Project Benefits (from E. to G. below Diversion Costs Without Project $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 With Project $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diversion Cost Savings Intermodal Terminal Transportation Cost Savings Reduction in delays Tourism, Conventions and Residents Total Benefits C. Benefit Cost Analysis Total Benefits Total Net Project Cost Total Net Benefits Benefit Cost Ratio D. Diversion of Overweight Trucks on Local Streets $3,524,469 $3,700,693 $3,885,727 $4,080,014 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Diverted Truck/Large Equipment Trips 6,549 6,876 7,220 7,581 7,960 8,358 8,776 9,215 9,675 10,159 10,667 11,200 11,760 12,348 Total truck/Large equipment hours 19,646 20,628 21,660 22,743 23,880 25,074 26,327 27,644 29,026 30,477 32,001 33,601 35,281 37,045 Truck Operating Costs per Hour $2,349,646 $2,467,129 $2,590,485 $2,720,009 $2,856,010 $2,998,810 $3,148,751 $3,306,188 $3,471,498 $3,645,072 $3,827,326 $4,018,692 $4,219,627 $4,430,608 Fuel use $471,501 $495,076 $519,830 $545,821 $573,112 $601,768 $631,856 $663,449 $696,622 $731,453 $768,025 $806,427 $846,748 $889,085 Other operating costs $864,418 $907,639 $953,021 $1,000,672 $1,050,706 $1,103,241 $1,158,403 $1,216,323 $1,277,140 $1,340,997 $1,408,046 $1,478,449 $1,552,371 $1,629,990 Crew cost $1,013,727 $1,064,413 $1,117,634 $1,173,516 $1,232,191 $1,293,801 $1,358,491 $1,426,416 $1,497,736 $1,572,623 $1,651,254 $1,733,817 $1,820,508 $1,911,533 State and Local Costs $1,174,823 $1,233,564 $1,295,242 $1,360,005 $1,428,005 $1,499,405 $1,574,375 $1,653,094 $1,735,749 $1,822,536 $1,913,663 $2,009,346 $2,109,814 $2,215,304 Permiting Traffic control, police details Utility work Street maintenance E. Tourism, Convention and Resident Delays Number of Affected People/Trips 6,418,826 6,611,391 6,809,732 7,014,024 7,224,445 7,441,178 7,664,414 7,894,346 8,131,176 8,375,112 8,626,365 8,885,156 9,151,711 9,426,262 Average extra hours of delay per person Total extra hours of delay 1,604,706 1,652,848 1,702,433 1,753,506 1,806,111 1,860,295 1,916,103 1,973,587 2,032,794 2,093,778 2,156,591 2,221,289 2,287,928 2,356,566 Cost per hour Cost of extra delays $20,058,830 $20,660,595 $21,280,413 $21,918,826 $22,576,390 $23,253,682 $23,951,293 $24,669,831 $25,409,926 $26,172,224 $26,957,391 $27,766,113 $28,599,096 $29,457,069 F. Intermodal Terminal Truck Delays Number of affected truck trips 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 Average hours of delay per truck trip Total hours of truck delay Truck Operating Costs per Hour Fuel use Other operating costs Driver cost Total truck delay costs Attachment D: Detailed Schedule WSB Transportation Projects CMGC Twin Ports WBS Summary Gantt Chart Print Date: 13-Oct-17 16:02, Data Date: 09-Oct-17 Activity ID Activity Name Original Start Finish Total Late Finish 2018 2019 2020 2021 2022 23 Duration Float A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J CMGC - Twin Ports InterchangeInter - Jct I-35/I-535/TH 53 and Garfield Ave in Duluth, MN 1249 17-Aug-17 A 12-Jul-22 0 12-Jul-22 12-Jul-22 MILESTONES 636 09-Oct-17 06-Apr-20 591 12-Jul-22 06-Apr-20 PROJECT DEVELOPDEVELOPMENTM 47 05-Sep-17 A 29-Nov-17 1202 12-Jul-22 29-Nov-17 TPI PUBLIC INVOLVEINVOLVEMENTM 60 09-Oct-17 04-Jan-18 79 25-Apr-18 04-Jan-18 ENVIRONMENTAL 386 17-Aug-17 A 05-Apr-19 852 12-Jul-22 05-Apr-19 Wetland Delineations 147 17-Aug-17 A 13-Oct-17 1055 04-Nov-21 13-Oct-17 Environmental Site AsseAssessments (Phase I & II) Early Acquisition 220 22-Sep-17 A 16-Aug-18 846 12-Nov-21 16-Aug-18 Consultant Acquisition 45 22-Sep-17 A 22-Sep-17 A 13-Aug-19 22-Sep-17 A Phase I 141 22-Sep-17 A 22-Sep-17 A 01-Oct-21 22-Sep-17 A Phase II 215 09-Oct-17 16-Aug-18 840 12-Nov-21 16-Aug-18 Environmental Due DiligeDiligencen 1 120 09-Oct-17 03-Apr-18 466 27-Jan-20 03-Apr-18 Environmental Due DiligeDiligencen 2 10 03-Aug-18 16-Aug-18 381 10-Feb-20 16-Aug-18 Categorical Exclusion (N(Non-Programmatic)o 75 09-Oct-17 25-Jan-18 991 12-Nov-21 25-Jan-18 Contaminated Materials ManagementM Special Provisions 33 17-Aug-18 03-Oct-18 979 12-Jul-22 03-Oct-18 Environmental Permits 386 09-Oct-17 05-Apr-19 852 12-Jul-22 05-Apr-19 NPDES Stormwater DischargeDisch Permit 32 05-Feb-19 20-Mar-19 864 12-Jul-22 20-Mar-19 Watershed District Permit 176 03-Aug-18 05-Apr-19 852 12-Jul-22 05-Apr-19 Wetland/WCA & Aquatic ResourcesR (404/401/Section 10) 177 16-Oct-17 25-Jun-18 1056 12-Jul-22 25-Jun-18 DNR Public Waters Permit 75 09-Oct-17 25-Jan-18 1163 12-Jul-22 25-Jan-18 PRELIMINARY DESIGN 342 22-Sep-17 A 04-Feb-19 896 12-Jul-22 04-Feb-19 VALUE ENGINEERING 35 07-Dec-17 29-Jan-18 61 25-Apr-18 29-Jan-18 Design Surveys 22 09-Oct-17 07-Nov-17 1205 12-Jul-22 07-Nov-17 District Land Surveys 322 09-Oct-17 22-Jan-19 204 04-Nov-19 22-Jan-19 GEOTECHNICAL 35 09-Oct-17 29-Nov-17 56 21-Feb-18 29-Nov-17 Geotechnical Drilling (C(COURTLAND)O 35 09-Oct-17 29-Nov-17 56 21-Feb-18 29-Nov-17 Geotechnical Drilling (M(MAINA LINE) 35 09-Oct-17 29-Nov-17 56 21-Feb-18 29-Nov-17 RW Construction Limits 20 06-Jul-18 02-Aug-18 204 23-May-19 02-Aug-18 LAYOUT 192 09-Oct-17 09-Jul-18 0 09-Jul-18 09-Jul-18 Preliminary Geometric LLayouta 64 09-Oct-17 10-Jan-18 75 25-Apr-18 10-Jan-18 Preliminary Bridge Plans - Courtland 91 30-Nov-17 11- Apr -18 10 25-Apr-18 11- Apr- 18 Final Geometric Layout 53 26-Apr-18 09-Jul-18 0 09-Jul-18 09-Jul-18 Noise Analysis 185 22-Sep-17 A 05-Jul-18 1042 12-Jul-22 05-Jul-18 Hydraulics Design 145 09-Jul-18 04-Feb-19 896 12-Jul-22 04-Feb-19 WORKPACKAGES 647 09-Oct-17 06-Apr-20 591 12-Jul-22 06-Apr-20 WP-1 647 09-Oct-17 06-Apr-20 591 12-Jul-22 06-Apr-20 Right of Way Package 488 24-May-18 06-Apr-20 591 12-Jul-22 06-Apr-20 Commissioner's Orders 65 23-Jan-19 23-Apr-19 840 12-Jul-22 23-Apr-19 Railroad Agreement 348 09-Oct-17 27-Feb-19 879 12-Jul-22 27-Feb-19 WP-2 437 09-Oct-17 02-Jul-19 204 13-Apr-20 02-Jul-19 WP-2 ROW TRC 437 09-Oct-17 02-Jul-19 204 13-Apr-20 02-Jul-19 WP-3 437 09-Oct-17 02-Jul-19 463 09-Apr-21 02-Jul-19 WP-3 ROW TRC 437 09-Oct-17 02-Jul-19 463 09-Apr-21 02-Jul-19 CMGC PROCUREMEPROCUREMENTN 136 22-Sep-17 A 25-Apr-18 0 25-Apr-18 25-Apr-18 CMGC - CONTRACTOR 132 22-Sep-17 A 19-Apr-18 4 25-Apr-18 19-Apr-18 CMGC Procurement 132 22-Sep-17 A 19-Apr-18 4 25-Apr-18 19-Apr-18 CMGC - DESIGNER 136 09-Oct-17 25-Apr-18 0 25-Apr-18 25-Apr-18 CMGC Procurement 136 09-Oct-17 25-Apr-18 0 25-Apr-18 25-Apr-18 Independent Cost EstimatorEstimat (ICE) / Estimating Engineer (EE) Procurement 6 09-Oct-17 16-Oct-17 61 17-Jan-18 16-Oct-17 CMGC Bid Package 646 25-Apr-18 27-Oct-20 118 09-Apr-21 27-Oct-20 Final Design Bridge & RoadRoa Plans Track 646 25-Apr-18 27-Oct-20 118 09-Apr-21 27-Oct-20 Work Package 1 (FY19) 281 25-Apr-18 04-Jun-19 0 04-Jun-19 04-Jun-19 Work Package 2 (FY20) 240 13-Mar-19 11-Feb-20 58 01-May-20 11-Feb-20 Work Package 3 (FY21) 245 20-Nov-19 27-Oct-20 118 09-Apr-21 27-Oct-20 CONSTRUCTION 470 05-Jun-19 12-Jul-22 0 12-Jul-22 12-Jul-22 Date Revision Checked Approved Remaining Level of Effort Actual Work Critical Remaining Work Page 1 of 1 Actual Level of Effort Remaining Work Milestone