Item Description:
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Neg Agmt PR00005488 with Met Council and HCRRA for HC Blue Line Extension Project, 09/01/23-12/31/24, NTE $75,305,000 ($60,244,000 from Hennepin County, CP 1005877: HC TSUT Bottineau LRT Capital and $15,061,000 from HCRRA, CP 1000941: RRA Bottineau FTA LRT)
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners authorizes negotiation of PR00005488, Capital Grant Agreement for the METRO Blue Line Extension Light Rail Transit Project with the Metropolitan Council and the Hennepin County Regional Railroad Authority (HCRRA), with a grant activity period of September 1, 2023 through December 31, 2024, and with a Maximum Grant Amount of $75,305,000, of which the County will contribute up to $60,244,000 (CP 1005877) and HCRRA will contribute up to $15,061,000 (CP 1000941); and
BE IT FURTHER RESOLVED, that the Board authorizes the Chair to execute Agreement PR00005488, after review and approval by the County Attorney’s Office; and
BE IT FURTHER RESOLVED, that the Hennepin County Board authorizes the Controller to transfer and disburse funds as necessary to carry out the intent of this Resolution.
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Background:
Resolution 17-0207, on June 13, 2017, approved the assumption of certain not-yet-paid funding commitments for the METRO Blue Line Extension Light Rail Transit Project (Capital Project 1005877) (“Project”), the assumption of the 2017 Counties Transit Improvement Board (CTIB) Capital Grant Agreement (CTIB 02201701/Met Council 17I001/County A177882A) with the Metropolitan Council for the Project, and the imposition of the 0.5% Transportation 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 project funding formerly committed by CTIB and the remainder of funding formerly anticipated from the State of Minnesota.
Agreement A177882A set the maximum grant amount at $66 million, to be paid with a mixture of CTIB and County funds. The parties subsequently amended Agreement A177882A twelve times to extend the agreement’s end date, as well as to authorize the expenditure of $11,087,084 in county funds in addition to the maximum grant amount. The most recent amendment, approved by Resolution 23-0188 R1, extended the end date of Agreement A177882A to August 31, 2023, with no increase to the maximum grant amount.
To date, $151 million has been contributed to the Project. This amount includes nearly $64 million provided pursuant to Agreement A177882A, nearly $17 million in Hennepin County funds and nearly $47 million in CTIB funds. CTIB also previously contributed $36 million through prior agreements, and all available CTIB funds have now been paid to the Project. HCRRA has contributed $48.8 million to the Project through three separate agreements, most recently Agreement A176897.
This board action would authorize negotiation and execution of a new grant agreement (PR00005488 or the “New Agreement”) with the Metropolitan Council and HCRRA for the Project. The New Agreement would take the place of the existing County and HCRRA grant agreements for the Project and be the vehicle for all County and HCRRA contributions to the Project during the term of the New Agreement. The New Agreement would provide for a maximum grant amount of $75,305,000, of which the County would contribute $60,244,000 and HCRRA would contribute $15,061,000. The New Agreement’s end date would be December 31, 2024. The parties would anticipate the amendment of the New Agreement in the future to raise the maximum grant amount and to extend the agreement’s end date as project work proceeds.
The New Agreement would change current Project governance practices in two important ways. First, it would establish a Project Decisions Board (“PDB”) with jurisdiction over a number of important project decisions, including execution of large contracts for the Project, changes to the Project budget, and key applications to the Federal Transit Administration. The PDB would have five members: two appointed by the Metropolitan Council, two appointed by the County, and one appointed by HCRRA. Second, the New Agreement would provide the County with authority to make certain key staff appointments, including the Deputy Project Director and the Civil Design Lead. The New Agreement would also make a number of other improvements, updates, and changes.
The Blue Line Extension Project is currently in the engineering phase and working to publish a Supplemental Draft Environmental Impact Statement. Primary activities during the grant activity period will include preparation of environmental documentation and final design and engineering of the new route. This work will lead toward Municipal Consent in mid-year 2024 to progress to the Record of Decision by the Federal Transit Administration in late 2024.
Current Request: Authorization to negotiate and execute Agreement PR00005488 with the Metropolitan Council and the Hennepin County Regional Railroad Authority for the METRO Blue Line Extension Project (CP 1005877), with a grant activity period of September 1, 2023 through December 31, 2024, and a maximum grant amount of $75,305,000. The agreement will allow for continued work on the METRO Blue Line Extension Project.
Impact/Outcomes: This action supports the county’s 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