Item Description:
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Neg Agmt PR00005488 with Met Council and HC for Blue Line Extension Project, 09/01/23-12/31/24, NTE $75,305,000 ($15,061,000 from HCRRA, CP 1000941 - RRA: Bottineau FTA LRT and $60,244,000 from Hennepin County, CP 1005877 - HC TSUT Bottineau LRT Capital)
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Resolution:
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BE IT RESOLVED, that the Hennepin County Regional Railroad Authority authorizes negotiation of PR00005488, Capital Grant Agreement for the METRO Blue Line Extension Light Rail Transit Project with the Metropolitan Council and Hennepin County, 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 Authority will contribute up to $15,061,000 (CP 1000941) and the County will contribute up to $60,244,000 (CP 1005877); and
BE IT FURTHER RESOLVED, that the Authority authorizes the Chair to execute Agreement PR00005488, after review and approval by the County Attorney’s Office; and
BE IT FURTHER RESOLVED, that the Authority authorizes the Controller to transfer and disburse funds as necessary to carry out the intent of this Resolution.
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Background:
Since the inception of the METRO Blue Line Extension Light Rail Transit (LRT) Project (CP 1000941), HCRRA has contributed $48.8 million to the project through three separate agreements with the Metropolitan Council. The most recent agreement is Cooperative Funding Agreement A176897 which authorized the provision of up to $50.89 million for engineering phase activities (Resolution 17-HCRRA-0007). HCRRA has authorized eleven amendments to Agreement A176897, each of which extended the contract period, with no change in the not to exceed amount. The most recent amendment, authorized on May 16, 2023, by Resolution 23-HCRRA-0016, extended the contract period to August 31, 2023.
To date, $151 million has been contributed to the Project, including the funds contributed by HCRRA. This amount also includes nearly $64 million provided by Hennepin County and CTIB through a separate agreement (Agreement A177882A) (approximately $17 million in Hennepin County funds and $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.
This board action would authorize negotiation and execution of a new grant agreement (PR00005488 or the “New Agreement”) with the Metropolitan Council and Hennepin County for the Project. The New Agreement would take the place of the existing HCRRA and County grant agreements for the Project and be the vehicle for all HCRRA and County 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 HCRRA would contribute $15,061,000 and the County would contribute $60,244,000. 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 Hennepin County for the METRO Blue Line Extension Project (CP 1000941), 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