DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend 2025 Adopted Budget For Construction And Maintenance Agreement With Canadian Pacific And Union Pacific Railroad For Railroad Bridge Replacement On County Project 86-34
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PURPOSE/ACTION REQUESTED
Amend the Transportation Capital Improvement Program (CIP) Adopted Budget for County Project (CP) 86-34 to include additional funding for the Union Pacific Railroad contract under the Construction and Maintenance Agreement with Dakota County, Canadian Pacific, and Union Pacific to support replacement of the existing railroad bridge in Castle Rock, Eureka, Greenvale, and Waterford Townships.
SUMMARY
To provide a safe and efficient transportation system, Dakota County has proceeded with CP 86-34. This project involves the reconstruction of County State Aid Highway (CSAH) 86 (280th Street West) as an undivided two-lane highway with shoulders and dedicated turn lanes at all public road intersections, extending from CSAH 23 (Galaxie Avenue) to Trunk Highway (TH) 3 (Chippendale Ave). The project also includes an urban three-lane section with curb and gutter through the Village of Castle Rock, as well as the replacement of the existing railroad bridge (FRA/DOT #380380F) in coordination with Union Pacific Railroad.
By Resolution No. 20-523 (October 20, 2020), the County Board authorized execution of a Construction and Maintenance (C&M) Agreement between Dakota County, Canadian Pacific (Canadian Pacific), and Union Pacific Railroad Company (Union Pacific) that established project requirements and goals for replacing the existing railroad bridge as part of CP 86-34.
By Resolution No. 22-312 (July 19, 2022), the County Board approved amendments to the 2022 Sales and Use Tax and Transportation Capital Improvement Program (CIP) budgets, and authorized execution of a contract with Northland Grading & Excavating for the construction of CP 86-34.
The 2025 Transportation CIP includes a remaining balance of $40,851.64 within the total project budget of $24,266,269.30 for CP 86-34. However, the contract with Union Pacific Railroad includes up to $800,000 in remaining or anticipated billing. To meet the full contractual obligation, a budget amendment is required.
Although construction of CP 86-34 is nearly complete, continued coordination with Union Pacific Railroad remains necessary to finalize remaining contractual work. Outstanding items to be paid include removal of the shoofly track and restoration of the mainline to its original alignment, installation of mainline services, gang labor for track flash butt welding, freight rail procurement, and final rail welding operations.
Summary of Union Pacific's recent Invoices - Work Order 67275
Covers Union Pacific’s costs for track work supporting our public infrastructure project.
Cost Breakdown
Category Description Amount % of Total
Engineering Design, project management, inspections, admin support $200,694.84 31%
XTIE Cross ties (railroad ties/sleepers) $118,662.78 18%
Rail New rail segments $91,587.36 14%
OTM Other Track Material (spikes, tie plates, bolts, anchors, etc.) $135,196.59 21%
Weld Rail welding services (thermite or flash-butt welding) $17,082.43 3%
Track Labor and materials to move or realign existing track $51,708.29 8%
Mobilization Equipment and crew mobilization $28,518.62 4%
Ballast Crushed stone or gravel for track bed $885.77 <1%
Total of recent Invoices Amount: $644,336.68 100%
An amendment is requested to increase the construction budget for CP 86-34 by $800,000, bringing the total 2025 Transportation Capital Improvement Program (CIP) budget for the project to $25,066,269.30. This increase will fully fund the remaining contractual obligations with Union Pacific Railroad and support the completion of all outstanding work.
RECOMMENDATION
recommendation
Staff recommends amending the 2025 Transportation CIP budget to fully fund and complete construction of CP 86-34.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2025 Transportation CIP budget does not include sufficient funding to fully cover the Union Pacific Railroad contract for County Project 86-34. A budget amendment of $800,000 is required to address this shortfall. The gap will be funded using County Sales and Use Tax revenues. Overall project funding sources include Federal funds, County State Aid Highway (CSAH) funds, and County Sales and Use Tax funds.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County is committed to providing a safe and efficient transportation system for the traveling public; and
WHEREAS, County Project (CP) 86-34 involves the reconstruction of County State Aid Highway (CSAH) 86, including roadway improvements and the replacement of a railroad bridge in coordination with Canadian Pacific and Union Pacific Railroads; and
WHEREAS, by Resolution No. 20-523 (October 20, 2020), the County Board authorized execution of a Construction and Maintenance Agreement between Dakota County, Canadian, and Union Pacific Railroad Company to support the replacement of the existing railroad bridge (FRA/DOT #380380F) and associated rail infrastructure; and
WHEREAS, by Resolution No. 22-312 (July 19, 2022), the County Board authorized amending the 2022 Sales and Use Tax and 2022 Transportation CIP Budgets and execution of a contract with Northland Grading & Excavating for CP 86-34; and
WHEREAS, although construction of CP 86-34 is nearly complete, outstanding work under the Union Pacific Railroad contract remains, including removal of the temporary shoofly track, restoration of the mainline to its original alignment, installation of mainline services, gang labor for flash-butt welding, freight rail procurement, and final rail welding operations; and
WHEREAS, Union Pacific Railroad has submitted recent invoices totaling $644,336.68, with additional anticipated billing bringing the total remaining obligation to approximately $800,000; and
WHEREAS, the 2025 Transportation Capital Improvement Program (CIP) includes a remaining balance of $40,851.64 for CP 86-34, which is insufficient to fully fund the remaining contractual obligations with Union Pacific Railroad; and
WHEREAS, a budget amendment of $800,000 is necessary to fully fund the Union Pacific Railroad contract and ensure completion of all outstanding work without delay; and
WHEREAS, the funding gap will be covered using County Sales and Use Tax revenues, with overall project funding including Federal, CSAH, and County Sales and Use Tax funds.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners authorizes the amendment of the 2025 Transportation Capital Improvement Program Budget to include additional funds for County Project 86-34 as follows:
Expense
County Project 86-34 $800,000
Total Expense $800,000
Revenue
County Sales and Use Tax $800,000
Total Revenue $800,000
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PREVIOUS BOARD ACTION
20-523; 10/20/20
22-312; 07/19/22
ATTACHMENTS
Attachment: Location Map
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Laberee
Author: John Sass