Sponsor: Public Works
Title
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Grant Award from the Minnesota Department of Transportation for the Union Depot Rail Insurance Grant
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Recommendation
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1. Accept grant award and approve grant agreement with the Minnesota Department of Transportation for the Union Depot Rail Insurance Grant to provide up to $1,000,000 in state funds for the purchase of increased rail liability insurance coverage.
2. Authorize the Chair to execute the agreement.
3. Authorize the County Manager to execute amendments to the grant agreement in a form approved by the Ramsey County Attorney’s Office.
4. Authorize the County Manager to execute amendments to the grant agreement in accordance with the county’s procurement policies and procedures, provided the amounts are within the limits of available funding.
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Background and Rationale
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On March 19, 2024, via board resolution R2024-006, the Ramsey County Regional Railroad Authority (RCRRA) approved the First Amendment to the Operating Agreement with National Railroad Passenger Corporation (Amtrak) for passenger rail service at the Union Depot. One of the changes provided by the amendment was the removal of Amtrak’s exclusive use of the track and platform for passenger rail service. This removal coincided with an increase in risk associated with third party liability for Union Depot. RCRRA currently maintains a $50 million liability policy which it has sought to increase with the arrival of the Borealis service. In 2024, the Minnesota State Legislature awarded $1 million to the RCRRA to help offset insurances costs related to increased passenger rail activity at Union Depot. This funding will allow the RCRRA to procure an additional $125 million of liability policy coverage, increasing total liability coverage to $175 million.
To access the $1 million in state funding, RCRRA needs to enter into a grant agreement with the Minnesota Department of Transportation (MnDOT). Acceptance of the grant award and approval of the grant agreement with MnDOT will allow RCRRA to access these funds for the purchase of increased rail liability coverage for twelve months starting in September 2024.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
RCRRA strives to build a robust, multimodal, public transportation system that is connected to long-distance transportation services such as intercity bus and passenger train. Union Depot is the Twin Cities premier transportation hub and is the only intercity passenger train station in the Twin Cities. Maintaining multimodal transit and transportation services at Union Depot provides access to these resources in one location for all to use. Additional intercity passenger train service provides more affordable and accessible travel options that are better connected to urban centers and other destinations. Contracts for construction of track and signal improvements will comply with federal rules for hiring of disadvantaged and minority-owned businesses.
Community Participation Level and Impact
RCRRA facilitates community participation in the development of additional intercity passenger train services and investments through the Great River Rail Commission (Commission). RCRRA is a member and fiscal agent to the Commission, where Minnesota Department of Transportation staff provide updates and respond to questions at all Commission meetings.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Acceptance of this grant will provide additional revenue of $1,000,000 to offset the cost to purchase additional insurance coverage above the minimum amount of $50,000,000 in 2024. This is one-time funding provided by the State of Minnesota for 2024 and was not included in the approved 2024 budget.
Last Previous Action
None.
Attachments
1. Grant Agreement