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4.3. SR 01-20-2004City 13065 Orono Parkway Elk River, MN 55330 MEMORANDUM Item 4.3, TO: FROM: DATE: SUBJECT: Mayor and City Council Scott Harlicker, Senior Planne~ January20,2004 Northstar Corridor Update On December 18th the NCDA held a special meeting to discuss recent changes to the standards used by the FTA to evaluate transit projects. The changes are much more rigorous and result in a stringent cost effectiveness index. In order to meet this new cost effectiveness index, the scope project had to be reduced. The project has been divided into phases with the first phase being from Minneapolis to Big Lake. The proposed stations at Coon Rapids/Foley Boulevard and northeast Minneapolis are also not included in the revised proposal. It is the intention of the NCDA that the line be extended to St. Cloud and Rice and the proposed stations at Coon Rapids/Foley Boulevard and northeast Minneapolis be included in future phases. Attached is letter from Duane Grundy, NCDA Chair, to Governor Pawlenty outlining the NCDA's position on the revised proposal. At the regular meeting of the NCDA held on January 8m the Authority adopted a resolution approving phase of the Northstar commuter rail project. Updated capital cost estimates, reflecting only the first phase of the project, were also reviewed. On January 13th Govemor announced his plans to include Northstar commuter rail in his 2004 bonding recommendations. The FTA requires a state/local match; in order to reach that requirement he has proposed that the state pay two-thirds of the cost and that the local governments pay one-third. For the 2004 bonding bill, he is recommending a $37.5 million authorization from the state to be matched by a $37.5 million local commitment. He has also asked the NCDA to reach an agreement on sharing the operating costs with the state. The local ckizen group supporting the Northstar Commuter Rail, All Aboard Elk River are planning a rally to show support for the Northstar Corridor on February 5~h at 7:00P.M. The rally will be held at the Elk River High School auditorium. The doors will open at 6:15. On Thursday, February 26~h there will be a rally at the state capital from 10:00 A.M. until noon Phone: 763.635.1000 Fax: 763.635.1090 DOCUMENT2 www. ci.elk-river, mn.us NCDA Additional Agenda Item MEMORANDUM JanuaW 8,2004 To: From: Subject: Executive Committee/Capit~.l Budget Committee Tim Yantos, Project Director 2004 Professional Services Contract- Himle Horner, Inc. The 2004 budget as approved by the NCDA on July 10, 2003, included $250,000 for community and public involvement work on the Northstar Commuter Rail Project for the period of January 1,2004, to June 30, 2004. A proposed scope of services and budget are as proposed by Himle Horner, Inc. for 2004 are attached. Staff recommend that the NCDA enter into a contract with Himle Horner, Inc., for 2004 community and public involvement work on the Northstar Project for a contract amount not to exceed $250,000 and a contract term of January 2004 through June 30, 2004. Staff further recommend that the contract authorize the NCDA authorized representative to waive standard NCDA insurance requirements for subcontractors of Himle Homer, Inc., if deemed appropriate. Action Requested: That the Executive Committee / Capital Budget Committee make a recommendation to the NCDA that the NCDA approve the proposed contract and authorize the Chair to finalize negotiations and execute the contract. Northstar Corridor Development Authority 2100 3'd Avenue, Anoka, Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 www.northstartrain.org Himle Horner Inc. NCDA Public Information and Public Affairs Communications SCOPE OF SERVICES January 1 - June 30, 2004 For the period of January I through June 30, 2004, the Consultant will: · Provide strategic counsel to the project management team on public information, communications and public affairs issues · Keep corridor residents and project supporters informed about the benefits and status of the Northstar commuter rail project. - Audiences will include supporters/residents within designated project configuration and beyond to Central Minnesota. · Continue to support discussion of the project among state opinion leaders, news media and various interest groups. · Provide strategy and materials to respond to questions and criticism among the media, opinion leaders and other interested parties. · Provide materials to assist lobbyists in their communication with policymakers. · Continue to aggressively promote public involvement. To accomplish these objectives, the following tasks will be implemented during the course of this contract, although the individual tasks may be modified by the NCDA, as needed. Public Outreach and Communication a. Maintain information distribution databases b. Enhance and maintain opinion leader databases c. Produce 3-4 supporter updates/notifications d. Produce at least 2 opinion leader update mailings e. Create power point presentation with new project information for public presentations f. Manage regular web site updates with timely information for the public on the project g. Keep supporters engaged in the project and assist them with information should they want to advocate on behalf of Northstar. h. Identify new supporters. i. Assist NCDA in their outreach/cooperative efforts with business leaders. j. Assist NCDA in the petition campaign among corridor citizens and businesses k. Assist NCDA with requests from individuals or citizen support/action groups Public Affairs Information HHI draft 3 - January 8, 2004 a. Create power point presentation for use by lobbying team with new project information b. Produce information kits for use by lobbyists at legislative hearings c. Assist Northstar staff and lobbyists by providing materials in response to que~tion~ from legi~lator~ or members of the Pawlenty Administration. Materials a. Redraft key project informational materials to reflect changes in the project scope b. Regularly update information kit material and the Northstar web site as new information becomes available c. Re-print materials as needed News Media a. b. C. d. e, f. g. Regularly update media kit Arrange media interviews/tours for Northstar spokespersons Arrange visits with editorial writers Produce 4-5 news releases/media updates Prepare an opinion piece for distribution Record and distribute at least two radio actualities Arrange capitol press corps for NCDA representatives visits as legislative activity occurs Respond to media requests Track news clips and distribute Other media activity as needed Other Communications Activities a. Develop strategy for public responses to questions and criticism about the Northstar project b. Develop materials, as requested, to respond to questions and criticism from the media, opinion leaders or policymakers Strategic Counsel a. Attend NCDA strategy meetings, as needed, to assist in development of public affairs and communications programs b. Attend monthly NCDA board meetings to report on public communication activities c. Serve as strategic counsel to NCDA project director and other members of the Northstar project management team NCDA Public Information Budget (January I - June 30, 2004) HHI draft 3 - January 8, 2004 Public outreach and communication materials Web site revisions/updates Project information mailings, updates Public information professional services News media materials and distribution News media professional services Public affairs materials Special projects/crisis materials Professional services for public affairs/special projects/crisis communications Strategic counsel services Fieldworker consultant Contingency Expenses $ 13 000 $ 7 ooo $ 25 000 $ 35 000 $ 5 000 $ 4o 000 $ 5 000 $ 3 000 $ 4o ooo 40,000 22,000 10,000 5,ooo TOTAL $250,000 HHI draft 3 - January 8, 2004 NCDA Resolution 2004- Approving Phase One of-~'orth~ta~ Commuter Rail Development WHEREAS, the Northstar Corridor Development Authority (NCDA) was formed in May of 1997 by joint powers agreement among the 30 counties, county reg!onal- railroad authorities, cities and towns along the Northstar Corridor from Minneapolis to the City of Rice; and WHEREAS, the Minnesota Department of Transportation has identified the Trunk Highway 10 (TH 10) corridor as one of the most congested corridors in the state of Minnesota; and WHEREAS, the sole purpose of the NCDA is to address the transportation needs of the TH 10/Northstar Corridor; and WHEREAS, in December, 1999, the NCDA selected commuter rail serving the corridor from Minneapolis to Rice as the centerpiece of its locally preferred transportation investment strategy; and WHEREAS, the NCDA, in conjunction with the Minnesota Department of Transportation, has completed preliminary engineering and the environmental review of the proposed project; and WHEREAS, the NCDA and the State of Minnesota are seeking federal New Starts funding for 50% of the capital costs of the project; and WHEREAS, as a New Starts project, the Northstar Commuter Rail Project must meet Federal Transit Administration (FTA) guidelines and regulations in order to qualify for federal funding; and WHEREAS, the FTA's Reporting Instructions for the Section 5309 New Starts Criteria, June 2003, has a new measure of cost-effectiveness that evaluates travel time savings for all transit riders; and WHEREAS, the segment of the Northstar Corridor between Big Lake and Minneapolis meets the new cost-effectiveness threshold established by the FTA: NOW, THEREFORE BE IT Resolved that the Northstar Corridor Development Authority: 1) Approves the Phase One Project definition that includes the portion of the corridor between Big Lake and Minneapolis, with stations at Big Lake, Elk River, Anoka, Riverdale, Fridley and Downtown Minneapolis; and 2) Commits to work with the Minnesota Congressional Delegation to seek other sources of federal funding to complete the double tracking between Becker and Big Lake in order to enhance the safety of the railroad and to facilitate the extension of the commuter rail project from Big Lake to the Greater St. Cloud Area. 3) Strongly urges that Governor Pawlenty support the Minneapolis to Big Lake segment of the Northstar Corridor Commuter Rail Project and include the funding necessary to match federal and local funds in the 2004 Bonding Proposal; and 4) Reaffirms its commitment to the entire Northstar Corridor Project to eventually include service to the Greater St. Cloud Area; and Duane Grandy, Chairperson Certification I hereby certify that the foregoing resolution is a true and correct copy of the resolution presented to and adopted by the Northstar Corridor Development Authority at a duly authorized meeting thereof held on the 8th day of January, 2004 as shown by the minutes of said meeting in my possessionl (Name) (Title) Prel DRAFT January 6, 2004 iminary Capital Cost Estimate Minneapolis ~o Big Lake Cost in million of dollars, Fiscal Year 2008 This estimate based on 4-car trains JAN 12 '04 11:25 T0-7636351090 FROH-RICHARDSON, RICHTER& ASSOCIATES T-385 P, 02/04 F-875 January 9, 2004 The Honorable Governor Tim Pawlenty 130 State Capitol 75 Dr. Rev. Martin Luther King Jr. Blvd. St. Paul, MN 55155 Dear Governor Pawlenty: At our January 8 meeting, the NCDA unanimously passed a resolution to approve Phase One of the Northstar commuter rail project that includes the portion of the corridor between Big Lake and Minneapolis and eliminates stations in northeast Minneapolis and in Coon Rapid~ at Foley Boulevard (copy attached). I am writing to inform you of our action Fast night and to request your support for Phase One of this very important project, This res~alution was adopted with full recognition of the importance of meeting [he guidelines set by the Federal Transit Administration for projects seeking federal funding. The NCDA has determined that this 4C-mile segment of the Northstar project meets the new cost-effectiveness standard established by the FTA. The NCDA, in cooperation with MnDOT, has also worked hard over the last several months to address the key issues outlined by you and the Legislature during the 2003 session. We have analyzed Northstar's cost-effectiveness using the FTA's tough ~tandard, updated ridership numbers based on 2000 census data and renewed negotiations with BNSF to narrow the issues and costs for operating the Northstar commuter rail line. You have stated that Northstar's standing with the FTA iS an Important factor in your decision on the Northstar proposal, and that your support for transportation projects is contingent on demonstrated cost-effectiveness and ability to move people, Recognizing this and with complete confidence that Northstar meets your criteria, the NCDA strongly urges you to support the modified project aha include the state funding necessary to match federal and local funds in your 2004 Bonding Recommendations. We believe we once again have demonstrated that Northstar commuter rail is the most cost-effective transportation option for this corridor. We need your support, Governor Pawlenty, We hope we will be working with you to advance this much needed proposal through the 2004 Legislature. Thank you for your attention and consideration. Sincerely, Commissioner Duane Grandy NCDA Chair Enclosure Northstar Corridor Development Authority 2100 3"' Avenue, Anoka. Mimlesotu 55303-2265 (763) 323-5700 Fax: 1763) 323-5§82 www. norrh.~lartr:.tin.org JAN, 12 '04 11:25 T0-7636351090FROH-RICHARDSON, RICHTER& ASSOCIATES T-385 P,03/04 F-875 NCDA Resolution 2004-01- Approving Phase One of NorthStar Commuter Rail Development WHEREAS, the Northstar Corddor Development Authority (NCDA) was formed · in May of 1997 by joint' powers agreement, among the 30 counties, county regional railroad authorities, cities and towns along the. Northstar Corridor from Minneapolis to the City of. Rice; and WHEREAS, the Minnesota Department of Transportation has identified the Trunk Highway 10 (TH10) corddor as one of the most congested corridors in the state of Minnesota; and WHEREAS, the sole purpoee of the NCDA is to address the transportation needs of the TH10/Northstar Corridor; and WHEREAS, in .December, 1999, the NCDA selected commuter .rail serving the corridor from Minneapolis. to Rice as the centerpiece of its locally preferred transportation investment strategy; and WHEREAS, the NCDA, In conjunction with the Minnesota Department of Transportation, has completed preliminary engineering and the environmental review of the proposed project; and ' WHEREAS, the NCDA and the State of Minnesota are seeking federal.. New 8,tarts funding for 50% of' the capital costs of the project; and WHEREAS, asa New Starts project, the 'Northstar Commuter Rail Project must meet Federal Transit Administration (FTA). guidelines and regulations. In. order to qualify for federal funding; and WHEREAS, the FTA's Reportina.lnstructions for the .~,ectiort 6309 New Stqrt,c _Criteria, June 2.003, has a new measure of cost-effectiveness that evaluates travel time savings for all transit dders; and WHEREAS, the segment of the Northstar Corridor between Big Lake and Minneapolis meets the new cost-effectiveness threshold established by the FTA: NOW, THEREFORE BE IT Reeolved that the Northstar Corridor Development Authority: 1) Approves the .Phase One Project definition that includes the portion of the corridor between Big Lake and Minneapolis, with stations at Big Lake, Ell( River, Anoka, Riverdale, Fridley and Downtown Minneapolis; and JAN 12 '04 11:26 T0-7636351090 FROH-RTCHARDSON, RTCHTER & ASSOCTATES T-385 P, 04/04 F-875 Area. DuaneGrandy, Ch~rperson 2) Reaffirms its commitment to the entire Northstar Corridor Project to eventually include service to the Greater St. Cloud Area; and 3) Strongly urges that Govemor Pawlenty support the Minneapolis to-Big Lake segment of the Northstar Corddor Commuter Rail Project and include the funding necessary to match federal and local funds in the 2004 Bonding Proposal; and 4) Commits to work with the Minnesota Congressional Delegation to seek other sources of federal funding to 'complete the double tracking ~between Becker and Big Lake in order to enhance the safety of the railroad and to faoilite~te the .extenSion of the commuter rail project-from Big Lake to the Greater St. Cloud Certifieatlon I hereby certify that the foregoing resolution is a true and correct co, py of the .resolution presented.to and. adopted by the Northetar Corridor Development Authority at'a duly authorized meeting thereof, held on the 8th day of January, 2004 as shown 'by the minutes of said meeting in my possessiOn; Project Hanagez: (Title) ars may have breathed l ife into the nation's ransporcation system, but they also sounded a death knell for most ~ of the COuntry's dec- -- fcic-powered street ~cars and interurban' lines. Today, ironically, many cities that seek relief for their car-jammed streets . are making tracks back co an old S°u~°~'~%t' t'riend: light rail. Light rail systems operate over 542 miles of track in 19 U.S. czties, some o£ which opened new lines or exten- sions chis year. Additional/y, 190 other czues are either currently constructing or have plans to build light rail lines in their communities. The popular transportation mode is filling a niche m growing commumties chat are seeking to reduce traf- fic congestion, diversify their ~ransporcar~on opuons and support economic development. /~ remedy for Congested roads Light rail is popular in large part because ~c is flexible. HOwever, there is some cont-us~on about what constitutes light rail. "Light rail is a term that can mean a lot of things co a lot of people," says Bill M/i/ar, president of the Wash- ington, D-C.-basea ~ " ~xmerica ,T. ransportation ~ .... n Public .... oc~at~on (A~A). It's a term that people use as if they knew what they were talking about." Generally, ~odav~ light rail systems feature steel-wheeled rail cars char are electrically powered 8y overhead cables and that run on tracks above ground. The name COmes from 'the weight of the rails on which the cars run as COmpared to heavy rails, Which weigh more and can carry more weight. In densely popu- lated urban areas, light rail be situated ' lines m roadways so rh may alongside auromobl .... c~ .ey travel m such cases, the rail cars have traffic signal pnority so they can pass through intersecuons Ummpeded, speeding pas- sengers through traffic. Because light rail can be designed in many different ways, c~ties can use it ro meet a variety of =oals k , congestion o ,k~ = , uur relieving ,o -,¢ primary reas~ - urn co light rail ~ , on most Los ,Angeles' a,~ ,~u c~rndor between Angeles Coun~,'=~fasa=ena, the Los ~x ~v~etrosoliro. ~ porracion ~ucho-' ,,.Z .... ' ~rans- . line to open in the Los Angeles metro- politan area since 1990, and it replaces bus service that previously was the only public transportation option for travelers between the two cities. Now, local bus routes feed travelers to the Gold Line's stations, where commuters can transfer to the light rat[ and ride into downtown. The transit agency created the Gold Line to increase capacity in the cor- ridor without building more roads or adding more buses to already congested roads. "There are people who think you ought to put all your money toro buses or build more freeways," says Ed Scannell, spokesperson Gr Los Angeles County MTA. "We're at a point in Los Angeles County where we can't build any more freeways: There are areas in this county where we run buses every 90 seconds, and we're getting to the point where we're going to put in articulated buses. But when we get to the point where those buses are full, and we're runnmg every 90 seconds, [we] have to find a way to increase capacity, and then light rail becomes the mode of choice." Sacramento, Calif., officials also turned to light rail to reduce traffic congestion in a rapidly growing corridor south of tee city. The city opened a $222 million, 6.3-mile extension to its ~-mt[e light rail system in September to carry commuters from neighborhoods south of the city into downtown Sacramento. "The extension is in one of the fastest growing corridors in the area," says Bev- erly Scott, general manager for Sacra- menro Regional Transit District. "We're the sixth worst [metro area] in terms of air quality in tee country. Good transit ts not a luxury; ifs a necessity, and the reason is because of the tremendous growth coup[ed with the air-quality llems." Sacramento currently is constructing another 10.9 miles of light rail to con- necr Folsom with the city by 2005. "In every major corridor, tee congestion is unbelievab[e," Scott says. "When you see people able to shave 20 minutes off a daily trip, able to make connections and go places that either they could not go before or could not as conveniently go befbre and able to do rear safely and affordably, that's what [light rail is] all ~,bout." Salt Lake City's geography compounds its growing traffic congestion. Situated in the middle of the Wasatch Moun- tains, Salt Lake City lies 40 mi[es from Ogden to the north and 40 miles from Provo to the south. Eighty percent of the state's population resides in those 80 miles, and the mountains create a barrier to road expansion in the metropolitan region. "The opportunity to add roads just is not there," says Andrea Packer, public relations and marketing manager for the Utah Transit Authority (UTA). "We rebuilt 1-15 in Salt Lake County five years ago, which was long overdue, but everybody knew going in that it wasn't going to be enough." The first leg of Salt Lake's 19-mile light rail system, known as TRAX, opened in 1999, and a 2.5-mile exten- sion to the University of Utah opened in 2002 in rime for the Winter Olympics. This September, UTA opened an $89.4 million, i.5-mile extension to the Uni- versity line. The extension runs through lion option to commuters who want to bypass automobile traffic on the city's highways. "We knew we had to develop a competitive system that was of pretty high quality and that did what people wanted it to do, was clean, convenient, safe, fast and went to the right places," says Doug Allen, executive vice presi- dent for program development for Dallas Area Rapid Transit. "If you can develop a good product, people will choose to use it. There are still people that drive, but we feel that we've provided a quality alternative for them to consider, and a lot of teem are choosing to take advan- tage of [it]." Dallas opened its first 20 miles of light rail in 1996 and, since then, has expanded the system to include 43 miles of light rail. The light rail system com- plements a range of public transporta- the campus of the University of Utah, ending at the University Medical Center, which employs more than 14,000 people. "When light rail first launched, people thought we would be stealing bus rider- ship that we've had for years in the area," says Marri Money, public relations spe- ciahsr for UTA. "While there was a little bit of borrowing from that ridership, we were finding that we had new ridership [on light rail.] We can't get enough cars on the line to provide for all the peopie who want to ride, and that's one of tee best problems we could ever have." A multi-modal mix Likewise, in Dallas, where stereotypes abound about car-loving residents and where traffic congestion is notorious, the city has found that its light rail line attracts high ridership. The light rail line provides an alternative transporra- lion options in the city, including buses, streetcars and commuter rail transit. "Mobility, especially in urban areas, has to come from more than just highways," Allen says. "We believe in a balanced transportation system. Buses and light rail help with congestion by taking away cars when it is most congested." Houston also is trying to diversify the transportation options in the city by constructing a $324 million, 7.5-mile light rail line downtown. Currently, the city only offers buses as a public transportation option, and it has built an extensive system of high-occupancy vehicle (HOV) lanes to encourage com- muters to carpoo[. The light rail line will open Jan. 1, just in time for the Super Bowl on Feb. 1 at Reliant Park, which is ar one end of the line. "We looked at whether it made sense to have more buses, do 62 December 2003 www.americancityandcounty.com nothing or go with more HOVs," says Shirley DeLibero, president and CEO for the Metropolitan Transit Authority of Harris County, Texas (Metro). "The studies clearly showed that we needed to have a multi-modal system, if we [didn't] have an alternate mode of transporta- tion, we [would] never survive because [we] can't keep laying concrete all over the city. [We would] definitely lose [oUr] quality of life." Even before the rail cars started operating, voters approved a $7.5 bil- lion regional transit plan in November that will allow Metro to issue $640 million in bonds to expand the light rail system by 22 miles. The plan also calls for the agency to add 44 new bus routes, build nine new park-and-ride lots and construct 250 more miles of high-occupancy vehicle lanes on high- ways. "We have stressed that light rail is not a panacea," DeLibero says. "We'll also have toll roads, highways and HOV lanes, and I think the combination of all those entities is what's going to help this region grow." A magnet for development Besides diversifying the transportation options in Houston, the light rail line is helping persuade developers to construct new buildings downtown. "The down- town urban area was really horrible," DeLibero says. "Now, with the light rail down there, [you can] see the develop- ment that's occurring -- the clubs and the restaurants that have moved into the area. The rail is creating density." Houston's experience is not unusual. The ability of light rail to attract development is one of the reasons so many communities are building lines. "Communities are starting to realize that they get a true economic return when they invest in things like light rail," Millar says. "Light rail investment tends to cause land value to rise near the stations." The effects that light rail lines can have in spurring economic development can be seen in several cities. Dallas, for example, has attracted nearly $1.3 billion worth of mixed-use developments near its light rail stations since it opened its first 20 miles in 1996. "We have this rail system that's the equivalent capacity of a six-lane freeway, and it's very environ- mentally sensitive and quiet, yet it moves a lot of people right where they want to go," Allen says. "From a developer's standpoint, that's really marketable. That's changing the face of Dallas, at least in the station areas." Seeing the economic impact light rail can have on communities, Dallas has expanded light rail into areas that are not densely populated and has worked with neighboring jurisdictions to encourage development around those stations. "We've gone to places that are essentially open fields, and, since then, hotels and performing arts buildings and office buildings have developed," Allen says. "We like to locate stations in areas that can foster that kind of development, which is good for our member cities because they are interested in the new development and the tax base." The economic development benefits of light rail appealed to Tacoma, Wash., officials and residents who decided to support a regional sales tax in 1996 to fund construction of light rail through their downtown. A few years earlier, that suggestion would have been the epitome of wasteful spending in a downtown that was desolate and run down. However, the city began revitalizing its downtown in the mid-1990s and attracted restau- rants, retail stores, entertainment attrac- tions, museums and a satellite campus for the University of Washington. To complement and support the revamped downtown, residents wanted light rail to connect the center of the city with a transit hub on the edge of town that features Amtrak, Greyhound, express bus, commuter rail and regional bus service. The $80.4 million, 1.6-mile line with live stations opened Aug. 22, and is free to passengers. "Before light rail came along, there was already a renaissance of restaurants and retail businesses cropping up in the down- town core, and light rail is reinforcing that," says Geoff Patrick, spokesperson for Seattle-based Sound Transit, which built and operates the Tacoma Link light rail line. As cities evaluate their transporta- tion problems and search for solutions, more and more are finding that light rail can play a number of roles in the com- munity. "[Light rail is] something that's being considered as a matter of routine in many cities," Millar says. "People are coming to realize that you need good highways, you need good bridges, but you also need very good transit systems, and one of the ways to improve your transit system is to invest in light rail." ~ URS~ multi-discipfinary team of economists, landscape architects and engineers helped Dubuque craft the long-range master plan, des~gn gmdelines and implementation tasks for the 'new' Port of Dubuque. UIC~D prepared feasibility and alignment studies, preliminary and final engineering and construction management for the first modern streetcar in the United States. Offices Nationwide 877.877.2520 planning~URScorp.com Circle No. 16 on Reader Service Card or visit freeproductinfo.net/amc December 2003 63 -< MEMORANDUM TO: FROM: DATE: RE: NCDA Board Members Commissioner Duane Grandy December 18, 2003 Northstar Project Update As you know, we have spent the last six months working to address key issues identified by the FTA, Governor Pawlenty and key legislators in regard to the Northstar project prior to the 2004 legislative session. Governor Pawlenty has indicated he will use the FTA's evaluation as a critical factor in his decision whether to recommend Northstar in his 2004 bonding bill. We have recently received new information on both the ridership projections and the analysis based on the rigorous new FTA standards from the transportation consultant, AECOM Consult Inc. I should tell you that AECOM is a nationally respected consulting firm on transit issues. The results of AECOM's analysis are summarized below. Let me assure you that NO formal decision on the configuration of the Northstar line will be made until board members have had an opportunity to digest this information and discuss it with each other. New FTA Evaluation The FTA has adopted a new method for evaluating transit projects seeking federal New Starts funding. The FTA is requiring new starts projects to be evaluated against a cost-' effectiveness index to determine the cost-effectiveness of a project. This index compares the annualized costs for construction and operation of proposed systems with the potential hours of commuting time saved each year by system users. The preliminary analysis submitted to the FTA shows that a modified (shorter) Northstar project is likely to meet the rigorous cost-effectiveness test. The Big Lake-to- Minneapolis portion of the proposal appears to meet the FTA's requirements, but the full extension of the line to St. Cloud/Rice apparently falls short of this standard. In addition, some stations on the route may need to be removed from the project to meet the FTA standard. This rigorous standard is being applied to transit projects throughout the United States, many of which are struggling to meet the FTA's stringent requirements. We are told there are other projects around the country that will not meet the new FTA cost- effectiveness index, regardless of how the project is configured, even though the project might have met earlier evaluations. Fortunately, a modified Northstar route appears to meet the requirement. We will continue working with the FTA on these issues. Based on the FTA's final analysis, the full NCDA board will need to determine the configuration of the Northstar service we intend to use for our proposal to the 2004 Legislature. Ridership Projections If the FTA requires Northstar to end at Big Lake and to remove the Foley and Northeast Minneapolis stations, the cost-effectiveness index indicates that projected ridership is approximately 5,600 riders per day. However, using the previous model to develop an "apples-to-apples" comparison with our past projections, the ridership on the full Rice/St. Cloud to Minneapolis line would exceed the previous estimates of approximately 10,000 riders in 2020. You may wonder why these projections are so fundamentally different. The FTA model is designed to use conservative estimates of rail ridership, in order to best standardize their analysis for projects for different parts of the country. For example, even though riders prefer rail service to bus systems under similar conditions, the cost-effectiveness index limits the use of rail preferences. This data reinforces the NCDA's long-held belief that Northstar commuter rail is the best choice for increasing transportation capacity and getting commuters moving in this corridor. Next Steps This information reflects the preliminary results of the analysis of the Northstar project. We need to obtain a final evaluation of the entire project from the FTA. We also need to obtain feedback from Governor Pawlenty and key legislators. We all believe that the entire Rice to Minneapolis route is a smart transportation investment. It is also a reality that Northstar cannot move ahead without FTA approval and funding participation. Further, Governor Pawlenty has made it clear to us, on multiple occasions, that he will support transportation projects that are cost-effective and demonstrate the ability to move people where they need to go. He has indicated he will use FTA's evaluation in helping him to decide to support Northstar. While the new analysis suggests that we may need to modify our proposal in order to obtain state and federal funding, it is important to remember that this is the first step of our work. If we need to segment the Northstar line, it will not affect my resolve to develop and implement a full solution to add transportation capacity in our corridor. However, any change in the Northstar proposal will be a decision the entire board will have to make once we have the necessary information from the FTA. We will discuss this information in further detail and consider the best way to move forward with the Northstar project. In the meantime, please contact Tim Yantos or Jeff Dehler with any questions you have or if you need additional information. I appreciate all of your work on behalf of the Northstar commuter rail project. Preliminary Data Submitted to FTA December 18, 2003 Northstar/Federal Transit Administration (FTA) Completed Steps in the Development Process Major Investment Study S t r at e ~Yo iunn cS ~; aCnl ~UMd n~DPoO~ I~at ~°sP° ii t a n P r eli r~ion~r~leEtneg~;e ri n g 1998-1999 December1999 2000 June 2000 2000-2002 - FTA Approval NorthstadFederal Transit Administration (FTA) Steps to be Completed Development prOcess State Financial Commitment Final Design ROW Acquisition Construction Plans Construction and Vehicle Procurement ---2004--- Antic!p~ted 20O4 2004-2005 Late 2005 2006-2007 ~ Projected: Operations December 2007 - F"TA Approval FTA New Starts Evaluation and Rating Process Mobility Improvements s ntal Non-Section g 5309 Share l Efficiency Capital Finance I Cost i Plan Effectiveness Operating [ Land Use ] Finance Plan Project Justification Rating Project Finance Rating Project Recommendation FTA Ratings of Northstar Project · 2000: Recommended / Approved to Enter Into Preliminary Engineering · 2001: Recommended · 2002: Recommended (Meritorious) · 2003: Not Recommended (due to lack of State funding) 3 FTA New Evaluation Criteria Mobility improvements Environmental Benefits Operating Efficiency Land Use Non-Section 5309 Share Capital Finance Plan Operating Finance Plan Project Justification Rating I I Project Finance Rating Project Recommendation FTA New Approach · Theory: Maximize travel time savings; minimize capital and operating costs · Cost Effectiveness ]:ndex (CEI) = Annualized Project Costs Annualized Baseline Bus Cost Incremental Travel Time Savings 4 FTA New Approach (continued) · CE:[ threshold value: $25 per hour of travel time savings · Requires inclusion of Minneapolis Downtown connection FTA Changes Approach to Ridership Forecasts · User preference surveys are no longer accepted; thus quality, reliability, safety and comfort of rail not counted. · Commuters assigned to bus based on travel times. · Optimizing the CE:[ reduced ridership. Daily Ridership Projections Two Ridership Models Previous Model Approach (St. Cloud to IVlpls.): Daily Ridership Grows 1990 Census 2000 Census 10,800 15,800 New Model Approach (Big Lake to Mpts.): Reduced Service, Lower Ridership 2000 Census 5,600 Intended Impact of Changes t COST SPEED ~, CEI 6 1Price lYorthsta r Proposal New FTA Formula St. Cloud Becker · iBig Lake. Elk River Distance: 82 miles Capital Cost (FY 2008) Commuter Rail: $286 m Downtown Connection: ~32 m Operating Cost (FY 2008) Commuter Rail: $15.8 m Downtown Connection: $.5 m Travel Time: 103 minutes ~ Minneapolis · "~ New CEIl $51.4i ~i 1Anoka Riverdale · Foley Blvd · ? Fridleyl $cena. Yio 2: East. St. ClOUd TorminUs Downtown Connection: $32 m Foley B19d Operating Cost (FY 2008)~' Commuter Rail: $13.1 m Fridleyl Downtown Connection: $.5 m lravel Time: 65 minutes NE Minneapolis Ne~ CEI: Downtown MinneapolisI 7 Scenario $; Revised Northstar Proposa/ St. Cloud [~3-xJlBig Lake [] Elk River [] isroposed [] Eliminated Distance: 40 miles Ridership: 5,600 l~noka Capital Cost (FY 2008} Riverdale [] Commuter Rail: $214 m Downtown Connection: $32 m Foley Blvd [] Operating Cost (FY 2008}: · Commuter Rail: $10.4 m Fridleyl Downtown Connection:' $.5 m Travel Time: 43 minutes~ NE Minneapolis [] Downtown Minneapolis [] New CEI: $24.49 per hour Prel DP, AFT iminary Capital Cost Estimate Minneapolis to Big Lake Cost in million of dollars, Fiscal Year 2008 8 Modifications to Northstar to Address New FTA Requirements · Eliminate stations with lowest ridership (i, Costf Speed) - Eliminate Rice, Becker and NE Mpls. Stations · Change the end of the line station to Big Lake (~ Cost) - Eliminate East St. Cloud Station · Retain bus service at Foley Park & Ride(~Cost fSpeed) - Eliminate Coon Rapids - Foley Station Summary · Revised definition of Northstar meets the FTA cost effectiveness threshold for: - Project feasibility - Federal financial participation · Project should be sized to handle at least 10,000 riders per day · Big Lake to Downtown Minneapolis should be considered Phase 1 of a multi-phased project Recommendations · Finalize data/info for FTA and Governor · Accept projection configuration based on what PTA wil/support in 2004 (No PTA- No Project) · Secure FTA/State approval for first phase in 2004 · Continue to make case for St. Cloud · Work to extend line/add stations beyond 2004 l0 RAIL TRANSPORTATION ~' O~ Northstar Federal agency wants line to end before St. Cloud because of cost BY }dANK SHAW Sorry. St. Cloud. A key federal study released T.quvsday effectively stops the Northstar commuter rail service at Big Lake in central Minneso- ta instead of St. Cloud or Rice, cutting the proposal in half. Prelmmnary numbers fi'om the Federal Transit Administra- tion suggest that Ws not worth the money to exteud the rail serv- ice beyond Big Lake, which is about 40 miles fi'om downtown Minneapolis. Also gone are proposed stations Ltl Northeast Minneapolis and Coon Rapids. The news is another blow to the project, which has come under fire m recent weeks for cost o-erruns ~:nd for spending aI least $~14,000 in taxpayer money on lobbying and public relar tions since 2002. Gev. Tim Pawlenty has said his support of the proposal will largely hinge on the FTA report. But a spokeswoman said that he would reserve pulgment until the agency releases its tin'al numbers em'ly new month. COMMUTER RAIL, 3B Commuter rail (contimled) Northstar supporters put the best face oil Thursday's report. Noting that the FTA standards are tough, they said they were pleased that North- slar at least partially met them. "While we believe there is strong pnblic support and the potential ridership to justify the fidl Northstar Corridm; we are pleased that the Northstm commnter rail project can pass this tough cost-effectiveness test," said state Rep. Kathy Tin- gelstad, R-Andoven Tmgelstad is a leading champion tbr Northstar in the Legislatm'e, which this winter is expected to debate whether to borrow $126 million for the service. Northstar spokeaman Paul McCarron said he expects that both the total cost of the $310 nlillion project and the anlouat the group will ask the state to borrow will drop. He said it was too early to say by how much. Rice Northstar ' Commuter Rail St. e~,~e East St. Cloud proposeO line m half. The stuoy says Clouo 'f~ · Clear Lake no~ De COSt effective ~ ~ aec~er 1~ route~ ~ ·. ' B'lgLake [] Recommended J MINNESOTA ~ · : ~ff/~m~ : ~ ~. E k Rtver~/,/ lwia~ [ f ~e Anoka ~ // : I '"' ~ * Fridley Northstar~ Commuter Rail } &. {-~ ¢ Downtown ~ ~ Minneapolis ~ VA Med ca Tra Center ~ ' Cer · Minneapolis/ St. Pau) MaU ~ International Amer Airpor[ Source; Northstar Corridor DevelOpment Authority PIO[~EER PRESS The shorter length would cut out many state lawmakers in the St. Cloud area who sup- port the project -- and U.S. Rep. Jhn Oberstm; who is influ- ential in transportation mat- ters. Rice is in Oberstar's dis- trict; Big Lake is not. Oherstar said tile FTA report was ba~ed (:,n old Jilt'ill' matioa bat added that tie would accept its decisioa tin'now "At this point, we need to take lhe FTA decision, roll with it trom here and bring ko'ward m,n'e cotwindng btfia'mation," he said. Oberstar and other Min- nesota menlhers of CongFess recently helped secure $5.7 md- lioo tbr Northstar in a t~rlecal highway bill that the U.S. Sen- ate has yet to pass. FTA approval could hrblg far more federal money to the project if the state is willing to support it. The report measured North- star's expected ridership against the cost to build and maintain it. Ac?rding to McCarron, extending the serv ice to Rice wonld be more than twice as costly as the agency is willing to accept. Service to St. Cloud also was too costly but upi nearly as much as sevvice to Rice. Only by stopping the line at Big Lake and by removing the two sta lions could Northstar meet the agency's criteria. Northstar critics say they saw this coming State Sen. Mady ReiteL R- Shoreview, spent 26 years wm'kblg tot tile Bln'lillgttal Northe/n Railroad, the coral)a- ny that owns the tracks North- star wuuld use. Reiter said she knmv the project could never meet lbderal standards all the way to Rice. "They sbould just leave eom- muter rail alone tbr the time being,' she saki "We simply don't have the mo~ey." Slate Rep. Phil Krmkie, another ICepublican f/'oHt Shoreuiew, said the report doesn't bclp Northstar's chaaees of getting bond money this winter. Kriukie wilt) filed a comphdnt last month against Northstar that accused them of improper lobbying ~ is chair- nlan of the House commi~ee that sets the state's borrowing agenda. Krmkie said he expects Northstar's supporters will ask lbr tile inouey auyway. "Do 1 think these people will in any way tuld their tents because of this? No,' he said. "It's like the Army in retreat. 'We've abandoaed Rice and St. Chmd, hut we're holding firm at Big Lake.'" Hank Shaw can be re,cited at hshutv!~pio~lecrp~e$$.co~l or 651- STATE OF MINNESOTA OFFICE OF.GOVERNOR TIM PAWLENTY 13o State Capitol, Saint Paul, MN 55~55 FOR IMMEDIATE RELEASE: January 13, 2004 Contact: Leslie Kupchella (651) 296-0001 GOVERNOR PAWLENTY FUNDS NORTHSTAR COMMUTER RAIL AS PART OF $85.5 MILLION TRANSPORTATION BONDING PROPOSAL ~ Cedar Avenue busway, local roads and bridges receive funding ~ Anoka -Govemor Tim Pawlenty today announced that funding for the Northstar Corridor commuter rail line will be included in his 2004 bonding proposal. In addition, the Governor's transportation bonding plan includes funding for $38 million in local roads and bridges as well as $10 million for the Cedar Avenue busway. "We're choking on congestion," said Governor Pawlenty. "This past year, we made the largest infusion of road-building funds in history. Now, we need to also look at expanded transit opportunities. The plan we're announcing today is progress on all fronts." The Northstar commuter rail line utilizes mostly existing rail lines. It will connect downtown Minneapolis to communities along a forty mile stretch to Big Lake, including Fridley, Anoka and Elk River. Initial estimates are that the Northstar line will save 892,000 commuter hours per year through improved travel times over the next best transit option. Governor Pawlenty added, "The fast-growing corridor between Minneapolis and St. Cloud needs congestion relief and more commuter options. This project will help." The Governor's plan includes an initial $37.5 million state investment for the Northstar Commuter Rail to be matched by $37.5 million in local funding commitments. The funds will catapult the project into the next phase, which is the Federal Transit Authority's (FTA) approval process for final design. The total'cost of the project is estimated to be at least $265 million, of which the federal government will pay half of the total cost. In making his announcement, Governor Pawlenty praised local officials for their willingness to take on a larger portion of the cost than earlier proposed, saying it shows a "uniquely strong local commitment to this project." In July 2003, Governor Pawlenty asked the FTA to conduct an independent, objective analysis of the Northstar Commuter Rail to determine the plan's cost effectiveness. Since then, the corridor has undergone intense scrutiny and substantial changes in order to meet FTA requirements. - -more- - "Because of the rigorous scrutiny this project received under Bush Administration criteria and the significant changes made to the project, I am very comfortable in leading this project to the next level," Governor Pawlenty said. The Governor also emphasized the cost of the project will go up. "The current $265 million cost estimate is likely to increase after final design for several reasons," he said. Govemor Pawlenty also included $10 million in funding for the Cedar Avenue busway, which will go from the Mall of America to Lakeville in the south central metro, in his bonding proposal. The money will pay for preliminary engineering and environmental assessments, short-term improvements on Cedar Avenue and construction of a park-and-ride on Cedar Avenue and Highway 13. In addition, as part of its bonding proposal, the Administration is recommending $28 million to assist in local bridge replacement in Greater Minnesota that will leverage $40 million in federal and local funds to replace approximately 170 deficient local bridges throughout the state. The proposal also includes $10 million for local road improvement projects for local roads of state and regional significance. ALL ABOARD ELK RIVER Show your support for Northstar Commuter Rail What: Rally When: Thursday, February 5, 2004 Time: 6:15 pm doors open 7:00 pm program Where: Elk River High School auditorium Information: Call Deb Urista, 763-241-0155 ALL ABOARD MINNESOTA Show your support for Northstar Commuter Rail What: Day at the Capitol When: Thursday, February 26, 2004 Time: 10:00 am, Rm 300 South 10:30 am Rotunda Rally Information: Call Larry Mareck, 320-252-1412 with oppornmities to speak with legislators. All Aboard Elk River is trying to arrange bus transportation to St. Paul for that rally. DOCUMENT2 NCDA Annual Meeting Agenda January 8, 2004 4:30 p.m. ,lAN Sherburne County Government Center Elk River, MN Action Requested Introduction of New Members Election of Officers: Chair and Vice Chair Minutes of the December 4, 2003 NCDA Meeting Executive Committee Report a. Resolution on Northstar Corridor Project Definition (to be available at the meeting) b. Designation of NCDA Lobbyist: Ross Kramer Update on FTA Review of Corridor and Governor's Response Project Activity Updates a) BNSF Negotiations b) Potential Station Feasibility Studies c) Other Legislative Update a. State b. Federal 8. Other Information Election Approval Approval Approval Discussion Information Information * Documentation Enclosed