7.2. SR 07-19-2004Kiver
13065 0r0n0 Parkway
Elk River, MN 55330
MEMORANDUM
Item#
7.2.
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Scott Harlicker, Senior Planne
July 19, 2004
Northstar Corridor Update
At the NCDA meeting held on June 24th the Authority received an update on the status of
the bonding bill and state legislative session. As you have probably read in papers, the state
legislature will have to have a special session if a decision is to be made regarding funding for
the Northstar Corridor. To date no session has been scheduled. Positive discussions are still
taking at the federal level regarding funding. The Hiawatha Line is up and running. I had a
chance to ride it 2 weeks ago. I thought it was great; it was a quick, quiet and smooth ride.
Phone: 763.635.1000
Fax: 763.635.1090
www. ci.elk-rivet:mn.us
NCDA
Meeting Agenda
June 24, 2004
4:30 p.m.
NOTE LOCATION CHANGE'
Anoka County Government Center, Room 705 (Boardroom)
Anoka, MN
Action Requested
Minutes of the May 6, 2004 NCDA Meeting*
Executive Committee Report:
a. Three-month Budget Extension (July-September)*
b. 2004 Interim Professional Services Contract Amendments*
3. Future of Northstar
4. Legislative Update
a. State
b. Federal
5. Public Information
a. Hiawatha Line Opening
b. Other
6. Northstar Commuter Coach Update
7. Other: Next Meeting: August 5, 2004
Approval
Consider Executive
Committee
Recommendation
Consider Executive
Committee
Recommendation
Discussion
Information
Information
Information
*Documentation enclosed
Northstar Corridor Develop~nent Authority
2100 3''~ Avenue, Anoka. Minnesota 55303-2265 (763) 323-5700 Fax: (763) _~_,~->o~,. www. northstartrain.org
NORTHSTAR CORRIDOR DEVELOPMENT AUTHORITY
Regular Meeting Minutes
May 6, 2004
The Northstar Con-idor Development Authority met on May 6, 2004, in regular session at the
Sherburne County Goven'urtent Center, Elk River, Minnesota.
Members in attendance: Paul Ostrow, Bruce Nawrocki, Jeanne Mason, David Elvig, Toni
Gamec, Felix Sckmiesing, Laurie Kuestar, Arne Engstrom, Dem~is Berg, LeRoy Pauley, Ken
Paulson, Dan Lieser, Art Daniels, Woody Bissett, Bob Jol'mson, Terry Nagorski, Ewald
Petersen, Scott Harlicker, John R. Norgren, Robert K/rchner, Patrick Cairns, Duane Grandy,
Dan Erhart, Brim~ Bensen,
Others in attendance: Mary Richardson, Elliott Perovich, Paul McCarron, Jay McLinden, Todd
Rapp, Jeff Dehler, Ken Stevens, Mike Schadauer, Cliff Greene, Jeff Elliott, Jon Olson, Jim
Barton, Rex Bresnik, Julie Johanson, Dave Petersen, and Sue Youngs
The meeting was called to order at 4:41 p.m. A motion was made by Ewald Peterson,
seconded by Tom Gamec and carried unanimously to approve the meeting rninutes of
April 1, 2004, and the agenda of May 6, as presented.
2. Executive Cormrtittee Report:
a)
Selection of Legal Services Firm for Commuter Rail Negotiations.
Paul Ostrow moved the NCDA Executive Committee/Capital Budget
Committee 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. The
motion was seconded by Jeannie Mason and passed unanimously on a voice
vote.
b)
Update on BNSF negotiations. Cliff Greene and Ken Stevens provided an
update on the BNSF negotiations. Mr. Greene stated that BNSF currently owns
a maintenance facility and surrounding property in St. Paul, which they would
like to sell. Ken Stevens informed the authority that they are taking a careful
look at all the pros and cons before making any final recommendations. Bob
Johnson inquired as to how purchasing the facility would be affected by
extending the Northstar to the St. Cloud area. Mr. Greene responded that staff
is currently looking at that issue. Arne Engstrom asked if it would be possible
to use the facility for 5 years and then re-sell it? Mr. Greene said staff would
also look into that possibility.
c)
Commuter Bus Update. Jon Olson, Anoka County, provided an update on the
Northstar Commuter Coach stating that ridership has decreased since the ending
of the Metro Transit strike, but that Northstar has retained approximately 70
additional riders. Mr. Olson also distributed a letter from Chair Grandy to
Donna Allen, Minnesota Department of Transportation (Mn/DOT), as
authorized by the Executive Committee, requesting that funding for the
commuter coach be continued until September 2005, and further commented
that the NCDA may terminate commuter coach contracts should they decide to
discontinue the bus service before September 2005
Report on Feasibility Studies of Potential Future Stations - Ramsey and Sauk Rapids.
Ken Stevens gave an overview of the feasibility studies of the Ramsey and Sauk Rapids
station sites. Mr. Stevens stated that the Ramsey Station was meritorious and would
improve Northstar's cost effectiveness. Mr. Stevens further stated that the Sauk Rapids
station site did not prove as cost-effective and would require another study when the
line is extended to the St. Cloud area. Until that time, it was suggested that the city
review current development projects to see if they would be compatible with a transit-
oriented development format. David Elvig, City of Ramsey, inquired if a Ramsey
station indicator could be included on current maps of the corridor or if that would hurt
the project overall. Mary Richardson explained the legal process required to include a
Ramsey station in the corridor design plans. Mike Schadauer, Minnesota Department
of Transportation, suggested that the NCDA work to bring the project into the final
design stage first and then work towards including a station site in the City of Ramsey.
Mayor Tom Gamec, on behalf of the City of Ramsey, thanked the NCDA members for
their work and efforts in implementing a station study.
4. Legislative Update:
a)
State: Paul McCarron, McCarron and Associates, provided an update on
current legislative activities stating that the Senate has, at this time, failed to
pass a bonding bill, but is still in session. Mr. McCarron further commented
that Northstar has provided much discussion during the session and that
Northstar is currently in the proposed senate bonding bill for an amount of two
million.
b)
Federal: Elliott Perovich, Anoka County, reported on current federal legislative
activities.
o
Public Information Activities: JeffDehler, Anoka County, provided an update on
public information activities stating that communication has been sent out to various
organizations and coalitions asking them to distribute information to their members and
urge them to contact their legislators. Mr. Dehler also reported that The All Aboard Elk
River group was also planning to contact legislators. Todd Rapp, Himle Homer,
further commented that all people have been contacted on the business list, and an
email has been sent to all supporters urging them to action.
6. Other:
a)
Mary Richardson, Richardson, Richter, provided an update on the Metro
Transitways Development Board's (MTDB) Ride the Rails Event for the
Hiawatha Light Rail Transit Line The event has been set for May 25, 2004 at
the Hennepin County Government Center. Ms. Richardson said that invitations
would be mailed soon and that Congressman Sabo was one of the scheduled
speakers at the event.
7,
The next meeting of the Northstar Corridor Development Authority is to be detem~ined
and members will be notified once the date has been scheduled.
8. Chair Grandy adjourned the meeting at 5:51 p.m.
Duane Grandy, Chairperson
Date
\\Ntserver\company\NC DAkMinutes\NCDAMin 5-6-04.doc
NCDA Agenda Item #2a
MEMORANDUM
June 17, 2004
TO:
FROM:
SUBJECT:
NCDA
Staff
Three Month Budget Extension (July-September)
The second half 2003 and first half 2004 budget was approved by the NCDA for
the period July 10, 2003 through June 30, 2004. The budget and funding is
sufficient to continue the Northstar development activities for the next three
months. Because of the uncertainty of the future direction of Northstar, it is
difficult to prepare a budget for the next 12 months. Therefore, staff are
recommending that the NCDA extend the term of the current budget through
September 30, 2004, with no additional contributions from members.
Action Requested: That NCDA extend the term of the current budget through
September 30, 2004 with no additional contributions from
members.
Northstar Corridor Development Authority
? 100 3"' Avenue, Anoka. Minnesota 55303-2265 f763) 323-5700 Fax: (763) 323-5682 www. northstartrain.or~z
NCDA Agenda Item #2b
MEMORANDUM
June 17,2004
To:
From:
Subject:
NCDA
Staff
2004 Interim Professional Services Contract Amendments
In September 2003, the NCDA entered into professional service contracts with
Richardson, Richter & Associates, Inc. and Kenneth Stevens for project management.
Additional funding is needed at this time due to the high level of activity over the last 9 to
10 months in BNSF negotiations, advanced preliminary engineering and preparation of
submittals to the FTA. On January 8, 2004, the NCDA entered into a contract with Himle
Horner for community and public involvement work for the first half of 2004. Since it is
uncertain what the level of activity for Northstar will be over the next year, it is proposed
that the project management and public information contracts be amended to provide
funding for on-going services for an additional three months.
Staff is recommending that the NCDA enter into the following contract amendments:
· Amendment No. 1 with Ken Stevens increasing the contract amount by $30,000 for
work within the current scope of services;
· Amendment No. 1 with Richardson, Richter & Associates, Inc. increasing the
contract amount by $55,000 for work within the current scope of services; and
· Amendment No. 2 with Himle Horner Incorporated increasing the contract amount by
$90,000 for work in community and public involvement for the next three months.
These contract amendments are within the approved 2004 NCDA Budget and Work
Plan.
Action Requested:
That the NCDA approve the proposed 2004 contract amendments
as shown above and authorize the Chair to finalize negotiations
and execute the contract amendments.
Northstar Corridor Development AuthoriO,
2100 3"' Avenue, Anoka, Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 www. northstartrain.org
Northstar Corridor Development Authority
Approved: July 2003
2003-2004 Budget
Proposed Expenditures
Ist Half 2nd Half January 1,
2003 2003 2004
Budget Proposed through
September
30,2004
1. Administrative Expense (Annual Amt.) $30,000 $0 $30,000'
Notes: Printing
Postage
Misc. Expense
2. NCDA Administration / Project $110,000 $166,800 $183,830
Management $50,000* $30,000*
$216,800 $213,830
3. Insurance (Sept. - Sept.) $10,000 $0 $10,000'
4. Legislative Activities (Annual Amt.) $100,000 $0 $107,500'
Notes: Federal
State
5. Community and Public Involvement $350,000 $122,650 $122,650
250,000* 250,000*
$372,650 $372,650
6. BNSF Negotiations / Legal Services $0 $110,370 $257,530
7. Update Ridership Forecast $0 $184,000 $0
*NCDA Expense. Not eligible for federal grant reimbursement.
Ist Half 2nd Half January 1,
2003 2003 2004
Budget Proposed through
September
30,2004
8. Value Engineering $0 $0 $184,000
9. Transit Oriented Development $0 $46,000 $46,000
10. Station Studies $0 $98,100 $0
11. Right of Way Acquisition $0 $715,319 $2,756,050
12. Preparation for Final Design $0 $0 $127,660
13. Vehicle/Equipment Procurement and $0 $0 $63,830
Specifications
14. Special Demonstration Project: $0 $25,902* $77,706*
Northstar Commuter Bus Service (3 mos) 19 mos)
TOTAL BUDGET AMOUNTS $600,000 $1,769,141 $4,246,756
GRAND TOTAL 2nd Half 2003 and Ist Half 2004 $6,015,897
*NCDA Expense. Not eligible for federal grant reimbursement.
Proposed 2003 and 2004 Revenues
Total Revenue
Federal G rant $4,098,100
NCDA Match $1,086,689
NCDA Contribution for Non- $727,500
eligible Expenses
Special Demonstration
Project: Northstar Commuter
Bus Service - County
Reimbursement
NCDA (1/3)
Anoka County (1/3)
TOTAL Sherburne County (1/3)
$34,536
$34,536
$34,536
$6,015,897
Proposed 2003 and 2004 Contributions
Benton 7.0% $128,710.75
Sherburne 15.0% $310,344.75~
Hennepin 14.5% $266,615.13
Anoka
IMorrison
Total
63.5%
$1,202,126.371
$10,000.002
N/a
100% $1,917,797.001
NOTES:
i Includes contributions by Anoka and Sherburne Counties for the Special Demonstration
Project: Northstar Commuter Bus.
2 As in previous years, the Morrison County contribution is limited to a portion of the
administrative costs of the NCDA.
Contributions broke out
Benton
7.0%
$42,428.75
Sherburne 15.0% $99,552.75
Hennepin 14.5% $87,888.12
$86,282.0O
$128,71 O.75
$210,792.00 $310,344.753
$178,727.01
$266,615.13
$1,202,126.371
Anoka 63.5% $393,523.37 $808,603.00
Morrison N/a $5,000.00 $5,000.00 $10,000.004
Total 100% $628,392.99 $1,289,404.01 $1,917,797.001
NOTES:
3 Includes contributions by Anoka and Sherburne Counties for the Special Demonstration
Project: Northstar Commuter Bus.
4 As in previous years, the Morrison County contribution is limited to a portion of the
administrative costs of the NCDA.
DATE: May 18, 2004
TO:
Bob McFarlin, Assistant to the Commissioner
Tim Yantos, NCDA Project Director
FROM:
Mike Schadauer, Fixed Guideway Transit Manager
Mary Richardson, NCDA Legal Counsel
RE:
Implications to Northstar Commuter Rail Project
If Bonding for Northstar Not Approved
You asked us to summarize the likely impact on the Northstar Commuter Rail Project that would
result from the Legislature's failure to approve bonding in the amount of $37,500,000 for the
project. This memorandum describes the implications of delay in project implementation.
Financial Implications
1. Loss of Funds Appropriated by Congress
a. Congressional appropriations for the Northstar project include the following:
i. FY 2002 Public Law 107-87 - $9,900,131 (Expires on September 30, 2004)
ii. FY 2003 Public Law 108-7 - $4,917,912 (Expires on September 30, 2005)
iii.FY 2004 Public Law 108-199 - $5,659,028 (Expires on September 30, 2006)
b. Failure of the 2004 Legislature to provide its share of the local match for these
federal funds will result in the loss of $9,900,131. If the Legislature does not act until
the 2006 bonding year, an additional $4,917,912 in federal funds will expire on
September 30, 2005.
2. New Starts Process
a. The Northstar Commuter Rail Project completed the preliminary engineering phase
of the Federal Transit Administration's New Starts process in 2001.
b. FTA guidelines prohibit projects from advancing into the final design phase if project
sponsors have not secured 50% of the non-federal (local) match of the project's
capital costs.
c. Failure of the 2004 Legislature to provide its share of the non-federal matching funds
($37,500,000) will result in an FTA rating of "not recommended" for federal funding,
and the project may not progress into the final design phase. The F-FA has indicated
that the project will not receive a "recommended" rating until the local match is
secured.
d. The competition for FTA New Starts funding intensifies every year as more projects
are proposed across the country. The introduction of Bus Rapid Transit has greatly
increased the number of projects eligible for New Starts funding.
3. Inflation
For each year of delay in the construction of the Northstar project, capital costs increase
at the rate of inflation. According to the Engineering News Record, the construction cost
index increased 3.75% so far in 2004. Assuming an inflation rate of 4% per year, a one-
year delay of Northstar would increase the capital cost by approximately $10.6 million to
a total of $275.6 million. If the project were delayed a second year with approval in
2006, the capital cost will increase by an additional $11.0 million to a total of
approximately $286.6 million.
4. Connection to Hiawatha
As the Hiawatha project completes construction this year, opportunities for minimizing
the costs of constructing the extension are at risk (e.g. the expertise of the HPO and
contractors in final design, utility relocation, and construction issues). Note, too, that the
option to purchase additional light rail vehicles ex. pires in January, 2005. If vehicles are
not procured pursuant to the option, the cost of the additional two vehicles is likely to be
substantially higher.
5. Right-of-Way Acquisition Costs
Two of the proposed station sites (Fridley and Minneapolis) are located on currently
available, privately owned, vacant land. Delay in acquiring these properties could result
in significantly higher costs or loss of the sites due to private development.
BNSF Ne.qotiations
1. Lost Opportunities for Reducinq Capital Costs
BNSF is currently evaluating its freight operations in the Northstar Corridor, as well as its
future usage of its property and facilities affecting the Corridor. BNSF's planning
activities have factored in Northstar commuter rail and have created opportunities to
reduce the amount and costs of capital improvements deemed necessary by BNSF for
Northstar. In particular, BNSF has identified as negotiable $38,000,000 in capacity
improvements based on these new opportunities. If the State fails to commit funding,
BNSF's decisions will be made in a manner consistent with its current business needs
without regard for commuter rail operations. Current opportunities to realize economies
will be lost. (For example, cost saving opportun~ies include the possibility of the
purchase of existing facilities up for sale by BNSF. Due to interest by other potential
buyers, these facilities may not be available in the future.)
Delay Jeopardizes Future Neqotiations
For the last six months, BNSF has given Northstar priority attention, expended
considerable resources, and involved a variety of professionals in the negotiations
regarding necessary capacity improvements. These discussions were conducted in
good faith after a hiatus of three years. If the Legislature does not fund Northstar,
BNSF's willingness to invest time and money in ongoing negotiations is likely to be
greatly diminished, and it cannot be assumed that BNSF will reopen negotiations with
the same level of commitment.
~/i@/20~4 i5:i8
NOrM COLEMAN
~N~DTA
"..' 3une' 17, 2004
.'..i'., 2:" The I"Io~omble Tim.?awlenty ' '
·: Offico of the
... . :..13o State C~pitol
: .7S KeV. Dr. Martin Luther King Jr,-Btv&
.St Pa~l, MN 55155
HBB
5]~ATOR COLEMAn.
WASHINffI'ON~ DP- 20510--2307
PAGE
'~OoZ'
P..,OMMi i fei: DH'
: .." GOV~RNMEN~ALA~FAIR~
'" ' ' ~.~.v~s
.Deer C-ovmmor Pawlenty: . ", .... ..
I am writing to thznk you £~r your le~e, zship in i=wsting ~n M~n~ezota's hifrasu'uctur=. L=~t
ye=, you provided th= l~rgest i~ffuslon ofroaxi-buSlfllt~g ~m/fls ~ state history, I aisc want to .
.thru:A: you for rez%vMziz~ the importance of includ/n,g pub. Ho tram-it in o~ zt,~te% transportation
'plan. I was very pleased lo ]eam that you included the Nortt~star Commuter P,~il project .~.
bo~c]{~g plan. "
I Eve bec~ follo~g ~e l~Og~Css of~e 1V~i~ot~ Le~sI~ close}y, a~d I l~ow t~aZ you
worked ve~ hard ov&r ~e la~ s~ mo~Cd~ to ~asu~ that ~e Norfi~ CwzTjdor wa~ ~ncluded
~e bo£,din§ bill.. ~ you !~ov, I too ~tron~y s~tppo~ ~ N~zihst~ Co~nm~ K~ N~t md
f~fl level ~ wo~y project is ~j~y of~d~ a "N~ R~omm~d~" ~fing
~-50 TJt, AV~P. Ae'P~ A~13~E Wl~'l'
ST, PAUL, MN 5J"Jl,e-105e
86/18/2884 15:18
'05/ls?~004 ~4:~. FAX
2822968883
I~BB
SENATOR COLF~N':
.' . ' ' 'i Will pro. va ess~ffal to improvi~ the q{mlity of]ifc in
· .'" "Senator Norm Col~na~
.U'nked States Senate ..
PAGE
'::/.:',~ 003
Aa you Oontinuo yom: dialogue with the state legislatura, please }mow tlmt I ~tand read~ t~ assist
.. you in gnc~uragi~g ooop~ation on this iarportant matter.' I am do~ly commi'tte~ ~o this project
and hope Wc ~an ensure the Northstar Corridor r~cdves at'ate ~ tlal ~ year.
"Thank you again for your hazd work and Support ofthis Pr0je~ It is my'expectation thst'~tmCeSs.
,Cc:
The HonorabI¢ Richard Day
The Honorable Dean lolz~on
The Honorable Stye Sviggum.
Tee Honorable Matt Entenza
06/22/2004 14:32 FAX 703 620 4709 CAPITAL PARTNERSHIP ~ ELLIOTT PEROVICH ~002
CAPITAL
PARTNERSHIPS (VA),
:1.1350 Random Hills Road, #8008 Suite 800
Falrfax, VA 22030
703/620-9015
Fax:703-6204709
MEMORANDUM
To: Elliott Perovieh
CC: John Brimsek
From: Ken Butler
Date: June 22, 2004 I
Re: STATUS OF TRANSPORTATION REAUTHORIZATION CONFERENCE
As we go into the final week before the Fourth of July recess, I wanted to let you know
where things stand with the prospects for a six-year reauthorization bill this year. Las,~
week I met with one of the Chief Counsel's of the U.S. Department of Transportation'and
he related that the department had been asked to draft a one-month mad a three-month,
extension of the federal highway/transit program, which expires on June 30, 2004. It ,was
his opinion that if the Congress went with the one-month bill, there was still a chance that
a six year bill could emerge from Congress before the National Democratic Convention
convenes in Boston on or around July 26, 2004. If the Congress went to the three-month
extension until after the beginning of the next federal fiscal year, it was considered very
unlikely a long-term bill could pass this year. The good news is that the Congress
sometime this week will be passing the 30-day extension bill.
Further, our hopes were heightened on last Friday, when Senate Majority Leader Bill
Frist (R-TN) stated in a news conference that he and Speaker Bill Hasten (R-ILL) had
directed the House/Senate Transportation Conferees to draft a $275 billion, 6-year
reauthorizafion bill and that a process had been agreed to for passing the bill before the
August Congressional recess. I met yesterday with a top aide to House Majority Leader
Tom DeLay and no such agreement was ever made and since then nearly all of the Senate
Conferees have denounced the $275 billion level.
The bottom line is the old saying "the more tkings change the more they stay the same."
The likelihood of a major bill passing this year is still not good, BUT w/th the Con~ess
passing only a 30 day extension and everyone believing that something must happen
before the August recess for there to be a bill this year, the possibility still exists that a
major bill will emerge. We will be still working on your behalf with that belief in mind.