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Summary <br />Due to the fact that the railroad permit took seven years to obtain, we have been working <br />to complete the design and construction of the project within the allotted permit <br />timeframe of 1 -year. This would require construction this summer. The project is of a <br />significant enough size that we wanted to update Council on the current status and <br />associated costs. At this time the total project cost including construction and <br />administration costs is estimated between $140,000 and $150,000. This is not a <br />currently budgeted expenditure and the cost is well beyond the initial estimate of <br />$40,000 for this component due to more extension work required to comply with permit <br />requirements and other related trail work needing to be completed. <br />The Finance Director did update the Infrastructure Capital Improvement Fund given the <br />bids we received for our 2011 Improvements. Attached to this memo is the initial 2011 <br />450 Fund Budget Summary. We have also attached the updated summary (major <br />changes highlighted) and the listing of future improvements. You will note that with the <br />lower bids we received this year, we can accommodate this additional expenditure and <br />maintain essentially the same projected fund balances as initially planned for. <br />There are currently no grant dollars to assist in the funding. We are investigating if any <br />funding would be available in the near future, but currently we are unaware of any <br />sources. If the project were delayed until grant dollars could be secured, the railroad <br />permit would need to be extended and /or a new permit issued. This would require <br />approval from BNSF and Minnesota Commercial Railway. Beyond the need to work <br />within the current permit timeframe, a benefit in moving forward with the project now is <br />that the City may be able to save up to $8,000 by utilizing material from the Dianna Lane <br />street project for the required fill. <br />Staff sees the following options: <br />1. Proceed with the project to complete this important trail segment. (Bids will <br />need to be obtained so we would still have the opportunity to cancel the <br />project if pricing wasn't as expected.) <br />2. Delay the project will attempting to seek grant funding. (The risk we run with <br />this option is the ability to obtain an extension from BNSF in a timely fashion.) <br />3. Build the crossing components at this time to make use of the railroad permit <br />and delay the balance of the project to seek grant funding. <br />At this time we would like to ask the Council for some direction regarding how we should <br />proceed with this project. <br />If you have any questions or would like to discuss this issue please feel free to call me at <br />(763) 780 -0450 ext. 3. <br />H: JoeIH \Correspondence Joel 2011 \RR Trail Xing Options 5.19.11.doe <br />10062 Flanders Court NE — Blaine, MN 55449 — (763) 780 -0450 fax (763) 7800452 <br />2 <br />