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4.2. SR 05-17-2004Item# MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Scott Harlicker, Senior Planne~ May 17, 2004 Northstar Corridor Update At the NCDA meeting held on May 6tn the Authority received an update on the negotiations with BNSF and the operation of the commuter coach service. The negotiations are moving forward and the coach service is successful. There was a short update on the feasibility studies of potential future stations at Ramsey and Sauk Rapids. The Ramsey site would have a positive affect on the Cost Effectiveness Index (CEI) and the Sauk Rapids site would have a negative affect. The CEI is the measurement that the FTA uses to rate the feasibility of transit projects. State funding, as of Friday, was still locked up in the bonding process. The House did not include it in their version and the Senate included some funding in their version. NCDA Meeting Agenda May 6, 2004 4:30 p.m. Sherburne County Government Center Elk River, MN Action Requested Minutes of the April 1, 2004 NCDA Meeting* Executive Committee Report: a. Selection of Legal Services Firm for Commuter Rail Negotiations* b. Update on BNSF Negotiations c. Commuter Bus Update Report on Feasibility Studies of Potential Future Stations: Ramsey and Sauk Rapids* Legislative Update a. State b. Federal Public Information Activities Other: a. MTDB Ride the Rails Event for the Hiawatha LRT Line Approval Consider Executive Committee Recommendation to NCDA Information Information Discussion Discussion Information *Documentation Enclosed Next Meeting: June 3, 2004 (tentative) NCDA Executive Committee Agenda Item NCDA Agenda Item #2a MEMORANDUM Date: April 30, 2004 To: Northstar Corridor Development Authority From: Staff Subject: Selection of Legal Services Consultant for Commuter Rail Negotiations Background Three firms responded to the request for proposals to provide legal services to the Northstar Corridor Development Authority (NCDA) for commuter rail negotiations: Green Espel PLLP, Leanard Street and Deinard, and Lindquist & Vennum PLLP. An evaluation team was formed to evaluate the responses to the RFP and conduct the interviews. The team includes the following members: Paul Ostrow, NCDA Vice Chair, Minneapolis Councilmember Tim Yantos, NCDA Project Director Mike Schadauer, Mn/DOT Paul McCarron, NCDA Project Management Team Mary Richardson, NCDA Project Management Team and RRA Colleen Herrmann, Anoka County Attorney Jan Lucke, RRA Proposals were evaluated and scored based on the following criteria: experience of the proposing firms, experience of personnel, quality of response, disadvantaged business enterprise (DBE) participation, ability to meet contractual requirements, and price. Results of the Evaluation The evaluation team selected Lindquist & Vennum PLLP and Green Espel PLLP for interviews. Interviews took place on April 26 and April 28, 2004 respectively. Staff are in the process of contacting references and will bring their final recommendation to the Executive Committee on May 6, 3004. Action Requested: That the NCDA Executive Committee / Capital Budget Committee make a recommendation that the NCDA authorize the Chair to finalize negotiations and execute a contract with for a contract term of May 15, 2004 through December 31, 2006 and a contract amount not to exceed $200,000 through December 31, 2004. Northstar Corridor l~evelopment Authori~. 2100 3:" Avenue. Anoka, Minnesota 55303-2265 (763~ 323-5700 Fax: {763) 323-5682 www.northstartrain.or,~ NORTHSTAR CORRIDOR DEVELOPMENT AUTHORITY Regular Meeting Minutes April 1, 2004 The Northstar Corridor Development Authority met on April 1, 2004, in regular session at the Sherburne County Government Center, Elk River, Minnesota. Attendees included: Lynn George, Duane Grandy, Tim Yantos, Ken Paulson, Scott Harlicker, Woody Bissett, Ewald Peterson, Terry Nagorski, Felix Schmiesing, Dan Lieser, LeRoy Pauley, Scott Schulte, Ame Engstrom, Patrick Cairns, Jean Keely, Linda Jungwirth, Dave Peterson, Robert Kirchner, Mark Myraa Jim Barton, Dean Michalko, Paul Ostrow, Bob Bamette, Bruce Nawrocki, John Weaver, David Elvig, Tom Gamec, Dennis Berg, Cliff Greene, Ken Stevens, Montgomery Headly, Paul Danielson, Mike Schadauer, Paul McCarron, Bill Schreiber, Elliott Perovich, Jeff Dehler, Todd Rapp, Mary Richardson, Jay McLinden, Brian Bensen, Peggy Aho, Dan Erhart The meeting was called to order at 4:41 p.m. A motion was made by Dan Lieser, seconded by Ewald Peterson and carried unanimously to approve the meeting minutes of January 22, 2004, and the agenda of April 1, 2004, as presented. 2. Executive Committee Report: o a) The Committee was notified of the following Resolutions regarding local contributions to Northstar capital costs: County RRA Resolution # Date Sherbume County Anoka County Hennepin County Benton County 030904-RRA-03 2004-2 N/A - Draflform~ N/A- Dra~formm March 9,2004 March 9,2004 b) A motion was made by Felix Schmiesing, seconded by Paul Ostrow and carried unanimously to approve the recommendation of the Executive Committee to approve the Chair to finalize negotiations and execute a contract amendment with Greene Espel extending the contract term to May 15, 2004 and increasing the contract amount by an additional $20,000.00. Legislative Update: a) Bill Schreiber provided a legislative update reporting that the bonding bill is not expected to be out of the House Committee before the Easter break Legislators are interested in the Northstar project and are asking detailed questions about the project. Northstar Corridor Development Authority Regular Meeting Minutes April 1, 2004 Page 2 b) Elliott Perovich reported the status of the Appropriations Bill. Members of Governor Pawlenty's staff are working for support of the Northstar Corridor and the appropriations bill. Clifford Greene, Greene Espel, reported on the progress of capital improvement negotiations between NCDA/MnDOT and Burlington Northern and Santa Fe Railroad (BNSF). BNSF has identified $51-$57 million of"core" projects that are non- negotiable. "Negotiable" projects total approximately $38 million which NCDA is optimistic can be reduced or eliminated without compromising customer freight service. The total of BNSF's current estimates of"core" and "negotiable" projects is $89-95 million as compared with its original estimate of $103 million. NCDA/MnDOT and BNSF is prepared to enter into the next phase of negotiations. Ken Stevens reported that the feasibility studies of potential future stations in the cities of Ramsey and Sauk Rapids are completed in "draft" form. Paul Danielson, Himle Homer, reviewed results of the study. The final report will be made available at the May NCDA meeting. Ramsey station: The proposed Ramsey station is located at the new Ramsey Town Center where access is readily available. Ridership is projected to increase by 4.3% with the addition of this station resulting in a 2.9% increase in user benefit and an estimated 25,520 additional hours of annual user benefit. Additional information: Minimal environmental clearance required, Minor track and signal impact, Cost approximately $4.9 million in 2007 dollars, Improves cost effective index (CEI) by $0.24, Station would have a positive impact on the project Sauk Rapids station: The proposed Sauk Rapids station is located in the current downtown area. Ridership is projected to be minimal with no change to user benefits. However, a Sauk Rapids station would be favorable as a layover facility. Additional information: Environmental clearance would be required, No significant track and signal impact, Cost approximately $5.9 million in 2007 dollars, Degrades cost effective index Northstar Corridor Development Authority Regular Meeting Minutes April 1, 2004 Page 3 o o o Jeff Dehler, Anoka County, reported on Northstar Commuter Coach ridership and operations. E-mail received from several citizens were read urging continued service. Additional buses have been added due to the current Metro Transit strike. There is standing room only on most runs. Jeff Dehler also provided an update on public information activities including many local events and a rally at the State Capitol. He reported that over 250 businesses have signed up in support of the Northstar Project. The next meeting of the Northstar Corridor Development Authority is scheduled for Thursday, May 6, 2004, 2004, at 4:30 p.m. at the Sherburne County Government Center. A motion was made by Leroy Pauley, seconded by Patrick Cairns and carried unanimously to adjourn the meeting at 6:05 p.m. Duane Grandy, Chairperson Date HSAdmndata\Committees\Corridor NCDAL2004WlinutesXApril 1 2004 draft.doc OPINION +12. A MONOAY. MAY 3. 2004 EDITORIALS COMMUTER RAIL Put Northstar line back in bonding bill Minnesota's transportation needs should not be a partisan issue. In its 2001 comprehensive trans- portation plan, the Metropolitan Council noted that citizens identified traffic congestion was the .No. 1 quality of life issue, that the rate of congestion was increasing, at an ever more rapid rate and that between 2000 and 2025, the metro area is expected to gain aboht 635,000 people and 312,000 jobs. The Minnesota Legislature must quit partisan game-playing with the funding need for the North- star Corridor heavy rail project between the Cities and Big Lake. It was disappointing last week to see the House's $678 million construction budget exclude the Northstar project's needed $37.§ million in state money. It is predictable that the DFL:controlled Sen- ate will step forward with Northstar money and tout its contrasting priorities in the safer political envi- ronment of a non-election year for senators. We understand and support the concept of fiscal prUdence with state money, especially when it is borrowed. But we also understand that deferral is different from prudence when con- sidering the economic and environmental future of Minnesota. In the House, the tightwad faction among Republicans is in serious denial about multimodal transportation as both life-qual- ity and economic imperatives. The bus solution up U.S. 10, they saY, would be cheaper. But it makes little sense to add to the jams on an already congested highway when existing train tracks and major federal money are available to add an efficient option with commuter rail. The true believers in only roads and bridges should also realize that it would cost twice as much to widen U.S. 10 as to develop and maintain train service. Northstar Commuter Rail would be funded by federal, state and local sources at an annual cost of about $10.4 million, using existing tracks to provide about 5,600 rides a day between down- town Mirmeapolis and Big Lake (just south of St. Cloud). It's time to get rolling on the $265 million Northstar Corridor capital proj- ect. The difficulties of pollution and congestion in the northerh exurban corridor and the needs for workers who commute to the Cities aren't diminishing. They are growing. More enlightened Republicans, including Rep. Kathy Tin- glestad of Andoverj who has advocated doggedly for Northstar, should be appointed by Speaker Steve Sviggum when the confer- ence committee is formed to reconcile the House and Senate ver- sions of this year's construction funding bills. Sviggum and Gov. Tim Pawlenty, both Republican converts to the Northstar, should have the clout to ensure the Northstar Cor- ridor ends up with the state money that will make the first part of the project possible. We encourage them to use it on behalf of Northstar. Our perspective Il/ Rail choices Minnesota has a knack for mak- ing easy things hard. Finally after · two delays -- one to add an extra · station, another to accommodate a · bitter strike -- comes the good news that the Hiawatha light-rail line's first 8-mile segment will open on June 26. Sadly, there will be no similar de- 'but for Hiawatha's companion, the 'Northstar commuter line, without 'i a heroic rescue by the governor and -~ a legislative conference committee. ~. Both political parties used childish .. legislative maneuvers to lay North- star on its death bed. Now adults .' must step in. Polls show wide sup- .pon for the line. Soon Minnesotans will know ff Gov. Tim Pawlenty is just a show horse on Northstar or a real work horse, and whether House Speaker Steve Sviggum and Senate .Majority Leader Dean Johnson can rise above petty politics. · Northstar has been sidetracke'd 7this session by a relentless smear ~. campaign that depicts rail transit as '~an extraordinary option for the Twin i: Cities. Actually it would be extraordi- :znary for the Twin Cities not to offer --a regional rail choice. Let's scan the latest evidence. >-Denver's Regional Council of Governments last month approved a "$4.7 billion transit expansion to add ~ 119 miles of light and commuter rail to the current 38-mile LRT system. A recent poll shows 70 percent of vot- ers favoring the expansion, which would raise the regional sales tax by four-tenths of 1 percent. ~Portland opened its fourth light-rail line last week with crowds so heavy that extra trains had to be added. The city has 48 miles of LRT track, a new streetcar loop and ,,nearly 80,000 daily riders. ~ Seattle added commuter trains ~_'north to Everett last December to 'augment those already nmning south to Tacoma. Thbse 82 miles · will soon link up with Seattle's first LRT line, a 14-mile segment from ~.downtown to the airport, with an extension planned to the University of Washington. ~Dallas' LRT ridership rose by 26 percent last year, while patron- . age on Dallas-Fort Worth commuter trains rose 11 percent. The system is among the nation's most successful, Keep Northstar on track having now expanded to 88 miles in just eight years, with suburban poli- ticians pushing for more. Indeed, three more lines are planned, aided by a pledge of $700 million from the federal government. ~Even before Houston opened its first LRT line in January, voters approved a $7.5 billion rail/bus expansion for the next 2O years. A first priority is extending four new LRT lines outward from the 7.5-mile starter trade When finished, the sys- tem will cover 8O miles. >-Salt Lake City will open a 44- mile commuter line to Ogden in 2007 and link it to the city's 17-mile LRT system. The current two LRT lines can~ 38,000 riders per day, twice the expected load. The transit agency has purchased 175 miles of track from the Union Pacific for fu- ture expansion. That's just a snapshot. Other Twin Cities competitors are also moving ahead. New construction will soon expand St. Louis' system to 46 miles. A Los Angeles-Pasadena line opened last year. A 6-mile expansion will soon stretch San Diego's system of 55 miles. Phoenix breaks ground in Au- gust for a 20-mile starter line to open in 2008, two years after Charlotte's first line is expected to open. New "baby-bullet" commuter trains will slice a half-hour off the San Jose- San Francisco trip starting in June. Projects in Orange County, Calif., Boston, Pittsburgh, Baltimore and Sacramento are moving forward. It takes a supreme arrogance for rail-bashing opponents to insist that all of these other cities are wrong. Yes, a few systems have stumbled. LRT trains in San Jose and central New Jersey have failed to attract riders. Seattle has suffered major construction cost setbacks. But for critics to claim, as they have, that rail has "reduced the livability of eveq~ urban area that has it" is simply and utterly wrong and way oUt of step with the trend. Minnesotans deserve the same commuting choices that others en- joy. Following the no-transit crowd will lead only to the smoggy, bum- per-to-bumper landscape that no one wants. Certain investments are critical to the state's future. North- star is one of them. NCDA Executive Committee Agenda Item #4 NCDA Agenda Item #2a MEMORANDUM Date: May 6, 2004 To: NCDA Committee / Capital Budget Committee Northstar Corridor Development Authority From: Evaluation Team Subject: Selection of Legal Services Firm for BNSF Negotiations Three firms responded to the request for proposals to provide legal services to the Northstar Corridor Development Authority (NCDA) for commuter rail negotiations: · Greene Espel, PLLP with subcontractor Maslon, Edelman, B0rman and Brand, LLP · Lindquist & Vennum, PLLP with subcontractor Harkins Cunningham, LLP, and · Leonard Street and Deinard Written proposals were evaluated and scored based on the following criteria: experience of the proposing firms, experience of personnel, quality of response and approach to the negotiations, disadvantaged business enterprise (DBE) participation, ability to meet contractual requirements, and price. The evaluation team selected the Lindquist & Vennum team and the Greene Espel team for interviews, which took place on April 26 and April 28, 2004 respectively. The Greene Espel team's response to the RFP was unanimously scored equal to or higher than the Lindquist & Vennum team's response in all criteria. Further, Greene Espel's response to interview questions provided further detail about their approach to BNSF negotiations, which the evaluation team believes to be more effective than the approach outlined by Lindquist & Vennum. Finally, Cliff Greene has effectively advanced BNSF negotiations under Greene Espel's current contract with the NCDA and proved to be responsive to the NCDA's needs and respected by the BNSF. The Greene Espel proposal calls for Mr. Greene to continue in this lead rote. Greene Espel's team includes the law firm Maslon, Edelman, Borman and Brand, LLP.' The lead attorney to participate on the negotiation team from the Maslon law firm is Joe Alexander, a leading transactional attorney in the Twin Cities. The references for Joe Alexander and the Maslon firm, contacted by the NCDA evaluation team, gave Mr. Alexander and the Maslon law firm their highest recommendations and indicated that Maslon brings a significant contribution to the Greene Espel team. The Linquist & Vennum proposal demonstrated significant expertise in railroad taw, environmental law, and other related areas of the law. It is recommended that the NCDA not reject the Lindquist & Vennum proposal, but reserve the right to enter into contract with Lindquist & Vennum should 1 Northstar Corridor Development Authority 2100 3rd Avenue, Anoka, Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 www. northstartrain.org additional funds be made available and the NCDA determines that additional services would be beneficial for the project. Action Requested: That the NCDA Executive Committee / Capital Budget Committee make a recommendation that the NCDA authorize the Chair to finalize negotiations and execute a contract with Greene Espel PLLP for a contract term ending on December 31,2006, and for a total contract amount not to exceed $200,000 for work performed between May 15 and December 31,2004. 2 NorthStar Commuter Coach Demonstration Project October 1, 2001-April 15, 2004 25000 20000 15000 10000 5OOO Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. [] Year One [] Year Two [] Year Three + Higher Average Run Time Jan Average 5:25 AM 5:55 AM 6:10 AM 6:25 AM 6:45 AM 7:05 AM 7:20 AM 7:55 AM Total AM 3:30 PM 3:55 PM 4:10 PM 4:30 PM 4:50 PM 5:15 PM 5:30 PM 6:00 PM Total riders 5:25 AM 5:55 AM 6:10 AM 6:25 AM 6:45 AM 7:05 AM 7:20 AM AM 3:30 PM 3:55 PM 4:10 PM 4:30 PM 4:50 PM 5:15 PM 5:30 PM 6:00 PM riders Jan 39 61 51 53 72 49 53 31 497 50 38 65 55 62 35 66 60 51 76 62 52 36 534 55 5O 53 59 61 35 67 53 62 77 58 52 32 518 56 46 59 72 60 40 68 56 52 78 62 45 41 529 56 43 69 68 68 62 59 45 74 71 38 515 1049 62 76 38 519 1037 59 59 40 1044 26 40 48 55 66 46 26 30 48 4O 55 48 32 5O 23 31 46 35 57 48 41 5O 28 32 42 32 48 55 42 52 28 34 60 45 45 71 49 45 36 452 65 56 49 56 30 45 42 27 877 20 31 28 39 42 34 44 19 341 370 368 355 284 35 28 38 34 28 39 42 37 41 38 34 39 35 33 29 51 50 60 52 46 40 38 36 41 23 54 67 64 48 44 37 38 48 34 26 23 29 18 25 8 353 326 681 539 Avg Second Wk April 37 64 53 53 75 56 49 35 506 56 47 59 62 56 6O 61 38 Avg Third Wk April 41 37 51 48 43 48 25 33 39 34 52 36 55 37 21 % Change 84% 33% 12% 63% 115% 3% 30% 64% 88% 37% 103% 22% 28% 16% 98% 79% 69% 18% -9% 8% 5% 65% 1% 11% 9% 16% 17% 2% 7% 18% 11% 11%