RESOLUTION No. 36425

Adopt the Eastside Transit Alternative Analysis Locally Preferred Alternative and the Eastside Transit Project Work Program Considerations and direct actions for implementation. (Resolution)

WHEREAS, the City of Portland, in partnership with Portland Streetcar, Inc. (PSI), successfully completed the first modern streetcar project in the country from Northwest Portland to Portland State University in 2001; and

WHEREAS, the streetcar has successfully demonstrated its ability to support public and private partnerships to maximize the development potential along the streetcar alignment to meet the goals of the Central City Plan and the 2040 Framework Plan; and

WHEREAS, in November 2002, the City initiated a locally-sponsored feasibility study assessing the potential for extending streetcar service to the Lloyd and Central Eastside Districts, which was led by a Steering Committee comprised of representatives from the Lloyd District, Central Eastside, City of Portland, Multnomah County, Metro, TriMet and the PSI Board of Directors; and

WHEREAS, there is strong planning support for extension of streetcar service to the eastside, including:

1.  Portland’s Central City Plan adopted in 1988, with significant amendments in 1995 and 1996, which identified the need and desire for an inner-city rail transit loop, possibly on Grand Avenue; and

2.  Portland’s Central City Transportation Management Plan adopted in 1995 to implement the Central City Plan, including improvements to transit circulation and distribution through the Central City districts; and

3.  Metro Council’s 2004 Regional Transportation Plan, which includes in the Financially Constrained System projects 1106 and 1107, “Portland Streetcar – Eastside” in the Lloyd and Central Eastside Districts; and

4.  TriMet’s five-year Transit Improvement Plan, which includes expanding high capacity transit service, including streetcar, as a priority; and

5.  Lloyd District Development Strategy adopted in July 2001, which calls for a transit hub within the Lloyd Central Core area and a consideration of an eastside streetcar line to act as a catalyst for private development of mixed-use projects in the Lloyd Central Core; and

6.  The Central Eastside Development Opportunity Strategy adopted in April 2002, which indicates that an eastside streetcar should be considered to improve access to and within the district.

WHEREAS after holding public meetings and public workshops, the Steering Committee prepared a report, which was adopted in June 2003 by the Multnomah County Board of Commissioners, the Portland Development Commission and the City Council by way of adoption of Resolution 36153; and

WHEREAS, the report recommended a preferred alignment, indicated that there was high level of public support for the consideration of a streetcar on the eastside and recommended that the project seek regional support for federal funding for the eastside streetcar project; and

WHEREAS, the 2005 reauthorization of the federal Transportation Bill, known as the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU), includes the Federal Transit Administration’s (FTA) Small Starts program for projects costing less than $250 million with a maximum federal share of $75 million, and it is this program from which federal funds for an eastside project would be sought; and

WHEREAS, while the FTA is in the process of developing Small Starts rules, Congressional intent clearly indicates that there should be a simplified review process given the relative size and scope of the projects, and that the basis for justification criteria should be weighted toward economic development, transit supportive land uses and local circulation and access; and

WHEREAS, in May 2005 a process consistent with FTA requirements was initiated to assess the feasibility of a transit circulator serving the whole Central City including the Lloyd and Central Eastside Districts with Metro in the lead role for the Alternatives Analysis (AA) and Portland Streetcar, Inc. providing project management and technical services in support of the AA; and

WHEREAS, after a public process and public hearings and in consideration of the technical work provided, the Eastside Project Management Group (PMG) recommended a Locally Preferred Alternative (LPA), which consists of a mode decision, an alignment decision and a terminus decision, including a first construction segment and the Work Program Considerations, which describe additional local actions that will need to be undertaken before any grant application to the FTA can be made; and

WHEREAS, on June 1, 2006, the Eastside Project Advisory Committee (EPAC), recommended a LPA and the Work Program Considerations consistent with the PMG recommendation and made minor amendments or revisions; and

WHEREAS, June 5, 2006, the Eastside Project Steering Committee recommended a LPA and the Work Program Considerations consistent with the PMG and EPAC recommendations and made minor amendments or revisions; and

WHEREAS, the Steering Committee asked that the LPA and Work Program Considerations, including the minor amendments or revisions, be submitted to the various jurisdictions for review and/or adoption, as appropriate; and

WHEREAS, the LPA calls for streetcar to be the mode of choice because the streetcar mode results in higher ridership than an equivalent level of bus service; streetcar provides better opportunities for land uses that foster a compact urban form, reduced vehicle miles traveled and a higher transit mode split; and the streetcar has garnered strong community support; and

WHEREAS, the LPA calls for an alignment on NE Broadway and NE Weidler Streets, on NE Grand and NE 7^th Avenues to Oregon Street, on a Martin Luther King Jr. Boulevard/Grand couplet through the Central Eastside and then on a potential future Caruthers Bridge that may be built as part of a Milwaukie Light Rail Project, as shown in Exhibit A to this Resolution and, by reference, made a part hereof; and

WHEREAS, the LPA indicates the Full Loop Alternative is the project’s ultimate objective, assuming capital and operating funds are available, because, among other things, it has the highest streetcar ridership per mile of operation, it is the most cost-effective on a per rider basis and it best meets the transit circulator function; and

WHEREAS, the OMSI Minimum Operable Segment (MOS) is the logical interim terminus for the full project, until such time that the proposed Caruthers Bridge or other Willamette River streetcar crossing is viable; and

WHEREAS, the LPA also recognizes that the construction of the project would need to occur in shorter segments primarily because of financial considerations, both for capital and operations, and recommends the Oregon Street MOS as the first construction segment; and

WHEREAS, the Eastside Steering Committee will only consider modifying the LPA to recommend extending the construction south of the Oregon Street MOS on a Martin Luther King Jr. Boulevard/Grand couplet if certain conditions as described in the LPA, are met, including:

1.  Progress toward a signed development agreement between the Portland Development Commission and the developer of the Burnside Bridgehead Project; and

2.  Identification of additional private and public redevelopment opportunities along the corridor in addition to the Burnside Bridgehead Project; and

3.  Development of an MLK/Grand Transportation Management Plan that will:

   a.  Improve pedestrian access to the streetcar; and

b.  Improve pedestrian safety and increase pedestrian crossing opportunities at streetcar stops, with special attention paid to the needs of the elderly and handicapped, and connections to TriMet bus service at the bridgeheads; and

c.  Provide for efficient streetcar operations through an evaluation of transit priority measures that could include capital improvements, such as additional curb extensions, and operational improvements, such as signal timing and spacing or other measures; and

d.  Provide for efficient vehicle and freight movements through coordinated signalization or any other operational improvements that will address the issues.

4.  Amending the Central Eastside Urban Renewal District to facilitate development objectives within the District; and

5.  Development of parking management plan or other measures to raise funds to help subsidize streetcar operations.

WHEREAS, the LPA will be forwarded to the FTA along with the Eastside Transit Alternatives Analysis Evaluation Report, a summary of which is attached as Exhibit B to this Resolution and, by reference, made a part hereof, for FTA review and comment; and

WHEREAS, before a construction grant application can be submitted to the FTA, anticipated in July 2007, the following must be completed and submitted to the Steering Committee and to the City Council, among others:

1.  National Environmental Policy Act (NEPA) review for the Full Loop, and anticipating a Documented Categorical Exclusion or an Environmental Assessment as the appropriate documentation; and

 2.  Work Program Considerations, including:

a.  Coordination with on-going planning efforts, specifically a Central City Plan review if initiated; and

b.  Development of a rationale for FTA consideration on the basis of the “trip not taken”; and

c.  Finalizing the capital funding plan and securing commitments for the segment proposed for construction prior to submittal of an application to the FTA; and

d.  Finalizing the operations funding plan and securing commitments for the segment proposed for construction prior to submittal of an application to the FTA; and

e.  Evaluating the need for any traffic and/or transit mitigation measures, especially on MLK/Grand Avenue and inclusion of said costs, if any, in the project capital funding plan; and

f.  Evaluating the feasibility of including provisions for joint emergency operations of sharing the alignment with light rail.

WHEREAS, the Eastside Transit Alternatives Analysis Evaluation Report (Report) indicates that while up to a maximum of $75,000,000 would be sought from the FTA Small Starts program, local funding sources will also be required, including a significant tax increment contribution, as shown in Exhibit C attached to this Resolution and, by reference, made a part hereof; and

WHEREAS, it is recognized that commitment of tax increment funding will require an evaluation of the request in light of other PDC funding commitments, support from the affected Urban Renewal Advisory Committees and compatibility with long-term City goals; and

WHEREAS, the Report provides an estimate of the operating costs as developed by TriMet based on model inputs provided by Metro and as shown in Exhibit C attached to this Resolution and, by reference, made a part hereof, and

WHEREAS, historically, the sources of funds for operations have been provided by TriMet, by the City from parking meter revenues and from fares, sponsorhips and promotions; and

WHEREAS, it is recognized that commitments for operations funding will be influenced by many factors, including:

1.  An evaluation of the ability to generate sufficient parking meter revenues on the eastside and an assessment of the availability of the revenues in light of any competing needs for the funds; and

2.  An evaluation and recommendation for greater fare recovery and additional private sources, including funding from those properties in the streetcar service area; and

3.  An acknowledgement of TriMet’s constrained operating revenue circumstances for the first years of expanded eastside streetcar operations and the need to develop a plan for TriMet participation that allows TriMet to implement its adopted five year service plan, fund operations of the South Corridor Phase II Milwaukie Light Rail Project and meet other regional transit needs.

WHEREAS, because it achieves the greatest transit and development benefits, the City desires to further analyze the feasibility of securing funding commitments, both for capital and for operations, for the Oregon MOS, the Morrison MOS, the OMSI MOS and the Full Loop; and

WHEREAS, the Portland Office of Transportation presented a briefing to the Planning and Development Bureau Directors on June 8, 2006, on the recommendations from the Eastside Transit Alternatives Analysis Steering Committee and on June 22, 2006, they indicated their support of this Resolution; and

WHEREAS, additional corridor study resources are available, as a result of an authorization in SAFETEA-LU, to fund the work called for in the conditions of the LPA and the Work Program Considerations and other City requirements.

NOW, THEREFORE, BE IT RESOLVED, that the City Council adopts the Eastside Transit Alternatives Analysis Locally Preferred Alternative Recommendation, substantially in accordance with Exhibit D to this Resolution and, by reference, made a part hereof; and

BE IT FURTHER RESOLVED, that the City Council adopts the Eastside Transit Project Work Program Considerations, substantially in accordance with Exhibit E to this Resolution and, by reference, made a part hereof; and

BE IT FURTHER RESOLVED, that the City Council directs the Portland Office of Transportation, in addition to satisfying the federal and regional requirements for a construction grant application, to prepare and present to Council for consideration before said application is made, a complete financial analysis needed to prepare long-range financial plans for the future streetcar extensions that include the following:

1.  Feasibility of securing capital funding commitments for the Oregon MOS, the Morrison MOS, the OMSI MOS and the Full Loop; and

2.  Feasibility of securing operations and on-going maintenance funding commitments for the Oregon MOS, the Morrison MOS, the OMSI MOS and the Full Loop; and

3.  Completion of an asset management plan, which addresses the need to provide for future replacement of trackway, electrical components and streetcar vehicles; and

4.  Assessment of the availability of near-term and long-term sources of funds and a comparison of competing needs for these funds.

BE IT FURTHER RESOLVED, that the City Council directs the Planning and Development Bureau Directors to review the next phases of the Eastside Streetcar project in order to integrate the project into the Central City design and financing strategies; and

BE IT FURTHER RESOLVED, that the City Council directs the Portland Office of Transportation to negotiate an Intergovernmental Agreement with Metro to allow the City to use the federal corridor study resources to provide funding for the work called for in the conditions of the LPA and the Work Program Considerations, as well as other City requirements, and to work in coordination with the Portland Development Commission, TriMet and Metro to accomplish these tasks; and

BE IT FURTHER RESOLVED, that the City Council directs the Portland Office of Transportation to work with Metro, TriMet and other regional partners to develop strategies to proceed with the Milwaukie Corridor, including funding strategies for the proposed Caruthers Bridge, or alternative Willamette River crossing, necessary for the full streetcar loop; and

BE IT FURTHER RESOLVED, that the City Council directs the Portland Office of Transportation and the Bureau of Purchases to prepare and solicit Requests for Proposals for professional and technical services required to carry out the work and directs PDOT to negotiate a contract(s) with a qualified firm(s) and bring the contract(s) to Council for approval as soon as practical.

Adopted by the Council, July 05, 2006

 GARY BLACKMER

 Auditor of the City of Portland

Commissioner Sam Adams  By /S/ Susan Parsons

Vicky Diede:slg

June 9, 2006                    DEPUTY          

BACKING SHEET INFORMATION

AGENDA NO. 934-2006

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36425