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January 26, 2016 <br /> <br />Background: <br /> <br /> The city has a 30-inch finished water transmission line located within the <br />Commonwealth Railroad (CRWY) right of way in Suffolk. <br /> <br /> The city is there by permission only, as stated in our September 26, 1963, <br />agreement with CRWY. The city is required to move at our own expense at the request <br />of CRWY. <br /> <br /> The expansion of Virginia International Gateway (VIG) is driving CRWY to install <br />approximately 8,500 linear feet of marshalling yard from Sportsman Boulevard to <br />Nansemond Parkway. <br /> <br /> The City of Norfolk has the same conflict with their 48-inch raw water <br />transmission line. <br /> <br /> The city is teaming with Norfolk to design, acquire property and construct a new <br />waterline outside of the CRWY right of way. This effort is being spearheaded by Norfolk <br />and their engineering consultant Michael Baker International. The cost sharing of this <br />project is 60% Norfolk, 40% Portsmouth, with the exception of property acquisition. <br />These costs will be apportioned based on proportion of property used by each utility. <br /> <br /> The CRWY is coordinating a joint REF grant fund application to be submitted on <br />behalf of CRWY, VIG, City of Norfolk and City of Portsmouth. <br /> <br />Discussion: <br /> <br /> <br /> The city is required to move its water line from within the CRWY right-of-way. <br /> <br /> By teaming with Norfolk, the city’s costs are estimated at approximately $6 <br />million. By adopting this Resolution, the city strengthens the competitiveness of the <br />application. If the grant is received, the city will be required to pledge a 30% match for <br />its assigned project costs. Award of this grant would help defray approximately $4 <br /> <br />million in expenses. <br /> <br />Financial Impact: <br /> <br /> Adoption of this resolution may potentially save the Public Utility Fund $4 million. <br />There are funds currently available to start the design of the project. However, <br />additional funds will need to be appropriated in FY 2017. <br /> <br />Recommended Action: <br /> <br /> Adoption of the ordinance. Vision Principles: A Robust Economy for Working <br />Men and Women and Efficient, Responsive Government. <br /> <br />Next Steps Following Council Action: <br /> <br /> Resolution will be forwarded to CRWY as part of the joint REF grant application. <br /> <br />Motion by Mr. Moody, and seconded by Mr. Meeks, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION IN SUPPORT OF A RAIL ENHANCEMENT FUND APPLICATION <br />FOR THE COMMONWEALTH RAILWAY EXPANSION PROJECT. <br /> <br /> WHEREAS, <br />Commonwealth Railway desires to file an application for funding <br />assistance from the Rail Enhancement Fund (REF) for a Marshalling Yard Expansion <br />Project (“Project”) on the Commonwealth Railway, in support of the Virginia <br />International Gateway On-Dock Rail Expansion Project; and <br /> <br />WHEREAS, <br /> the City of Portsmouth and the City of Norfolk are stakeholders in <br />this Project due to the utilities which must be relocated per Agreement with the Railroad <br />to accommodate the Commonwealth Railway yard expansion; and <br /> <br />WHEREAS <br /> , the City of Portsmouth and the City of Norfolk estimate that utility <br />relocation will cost $15,000,000; and <br /> <br />WHEREAS, <br /> the Project application for REF funding will include 70 percent of the <br />estimated utility relocation cost as part of the Project budget, with the remaining 30 <br />percent of the estimated utility relocation cost apportioned between the City of Norfolk <br />and the City of Portsmouth; and <br /> <br /> <br /> <br /> <br /> <br />