Item Description:
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Neg Amd 10 to Agmt PR00000689 with Met Council and HCRRA for HC Southwest Light Rail Transit (“METRO Green Line Extension”) Project (CP 1005876), extend end date to 01/31/24 with no incr to the NTE
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Amendment 10 to Agreement PR00000689, Capital Grant Agreement for the Southwest Corridor Light Rail Transit (METRO Green Line Extension) Project with the Metropolitan Council and the Hennepin County Regional Railroad Authority, extending the grant activity period from June 30, 2023 to January 31,2024, and making certain clarifying changes, with no increase to the maximum grant amount of $978,080,704; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the amendment on behalf of the County; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Hennepin County Board approvals herein do not waive any obligations of the Metropolitan Council under any relevant agreement.
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Background:
Through Resolution 17-0207, adopted on June 13, 2017, the County approved the assumption of certain unpaid funding commitments for the METRO Green Line Extension Project (CP 1005876) (“Project”), the assumption of the 2017 Capital Grant Agreement (Counties Transit Improvement Board #01-2017-01/Met Council #17I007) (“CTIB Grant Agreement”) with the Metropolitan Council (“Council”) for the Project, and the imposition of the 0.5% sales and use tax and $20 motor vehicle excise tax that are the primary sources of funds for Hennepin County contributions to the Project. Through these and other actions, Hennepin County agreed to take responsibility for the remainder of the 30% share of project funding formerly committed by the Counties Transit Improvement Board (“CTIB”) and the remainder of the 10% share formerly anticipated from the State of Minnesota. The Hennepin County Regional Railroad Authority (“HCRRA”) provided funding for the Project, as well, under separate grant agreements.
On May 31, 2018, the County adopted Resolution 18-0222, committing County funding to the Project in an amount up to $592,953,000, in addition to the CTIB contribution. Resolution 18-HCRRA-0027, adopted on May 31, 2018, committed HCRRA funding in an amount up to $199,548,000. On November 15, 2018, the County adopted Resolution 18-0500, committing funding of up to $200.3 million, in addition to the funds committed in Resolution 18-0222, to cover potential cost increases or funding shortfalls. (Resolution 18-0500 was subsequently revised by Resolution 19-0220, adopted May 20, 2019.)
Also on November 15, 2018, the County adopted Resolution 18-0499, which among other actions, authorized negotiation of a new grant agreement with the Council and HCRRA, Agreement PR00000689 (“Capital Grant Agreement”), to replace the amended CTIB Grant Agreement and to be the sole funding source for all Project activities through the end of August 2019. On the same day, HCRRA adopted Resolution 18-HCRRA-0056, likewise authorizing the negotiation of the Capital Grant Agreement to replace the existing HCRRA grant agreement.
The Capital Grant Agreement was then negotiated and executed, with a not to exceed amount of $434,901,943 in total funds from the County (up to $347,921,554) and HCRRA (up to $86,980,389). The funded activities included civil construction work authorized by the FTA, any pre-award authority activities requiring and receiving prior approval by the Hennepin County and HCRRA boards, and ongoing overhead expenses and other professional services related to the Project.
The Capital Grant Agreement has since been amended nine times. Each time, HCRRA likewise approved negotiation of the same amendment on the same day as the County Board’s approval. The amendments were as follows:
• Amendment 1 extended the term through September 30, 2019. (Resolution 19-0363)
• Amendment 2 extended the term through March 31, 2020, increased the maximum grant amount to $553,456,897, and made other contract changes. (Resolution 19-0368)
• Amendment 3 extended the term through June 30, 2020, and increased the maximum grant amount to $602,795,681. (Resolution 20-0089R1)
• Amendment 4 extended the term through August 31, 2020, and increased the maximum grant amount to $677,765,449. (Resolution 20-0236)
• Amendment 5 extended the term through November 30, 2020. (Resolution 20-0321)
• Amendment 6 extended the term through January 31, 2022. (Resolution 20-0456)
• Amendment 7 extended the term through June 30, 2022, and increased the maximum grant amount to $878,080,704. (Resolution 21-0297)
• Amendment 8 extended the term through December 31, 2022. (Resolution 22-0237)
• Amendment 9 extended the term through June 30, 2023, and increased the maximum grant amount to $978,080,704 (Resolution 22-0538).
This Resolution seeks authorization to negotiate Amendment 10 to the Capital Grant Agreement, to extend the term of the grant to January 31, 2024, with no increase to the not to exceed amount. It would also authorize negotiation of any clarifying changes that might prove necessary.
Through May 31, 2023, Hennepin County has paid approximately $690 million towards its funding commitment. HCRRA has paid its full commitment of approximately $199.5 million. In addition to the funds contributed by Hennepin County and HCRRA, the Project budget also includes approximately $1.13 billion in federal funding; $218.9 million from CTIB, which has been fully paid to the Project; and certain other smaller funding sources.
Current Request: Authorization to negotiate Amendment Number 10 to Agreement PR00000689 with the Metropolitan Council and HCRRA for the METRO Green Line Extension Project, extending the grant activity period to January 31, 2023, with no increase to the maximum grant amount of $978,080,704.
Impact/Outcomes: Approval of this request will allow for continued construction activities for the METRO Green Line Extension.
This request aligns with disparity reduction efforts by investing in infrastructure that gives people transportation choices and access to housing, jobs, schools, medical facilities, and recreational areas.
recommendation
Recommendation from County Administrator: Recommend Approval