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7.3. SR 06-20-2005 Item# 7 . 3 . MEMORANDUM DATE: Mayor and City Council Scott Harlicker, Senior Planner * June 20, 2005 TO: FROM: SUBJECT: Northstar Corridor Update Councilmember Motin is the City's representative on the NCDA. He is scheduled to provide an update at the June 20th Council meeting. Attached are the agenda and the packet from the NCDA meeting held on June 2nd. ~ UNORTHSTAR JUN/)82005 UPDATE The NcflfJfl.ff!'!t(f'ulll11.~ supporters on new inronnation about the Northstar Commuter Rail project. For more information, go to _.mn-GetOnBoard.com. June 2005 Legislative passage of the 2005 bonding bill marked a monumental step for Northstar Commuter Rail. On April 11, 2005, Gov. Tim Pawlenty signed the $886 million bill into law, which includes $37.5 million in funding for Northstar, marking the first time substantial state funding was approved by the Minnesota Legislature. Highlighting the importance of Northstar Commuter Rail, Gov. Pawlenty chose to sign the bonding bill into law at the future site of the Coon Rapids Riverdale commuter rail station. A large crowd of Northstar supporters, key legislative leaders and local elected officials attended the event to commemorate this milestone. The bonding bill signing put an exclamation point on the overwhelming support for Northstar in the Minnesota House and Senate. The actions by the Legislature and the Governor confirmed the strong statewide and bipartisan support for Northstar Commuter Rail. Thank You Northstar Supporters! Because of the efforts of thousands of supporters, Northstar achieved this success. Thanks to the many Minnesotans who have made their voices heard, the rail project is now closer to becoming a reality in Minnesota. Many advocates wrote to their legislators, signed petitions, formed advocacy groups, attended State Capitol events . and rallied in their communities to show their support for Northstar. You sent the message that Northstar Commuter Rail was important to you and worthy of a state commitment! And, the message was heard. As the Northstar Commuter Rail project progresses, the ongoing efforts from supporters will continue to playa key role in gaining the final piece of state funding for construction of the project in 2006. The $37.5 million in state funding for Northstar Commuter Rail allows the project to move into the next phase of development. The Northstar Corridor Development Authority (NCDA) and the Minnesota Department of Transportation will apply to the Federal Transit Administration (FTA) for approval to begin final design. Project planners will also work to regain a "Recommended" rating from the FTA to access highly-competitive federal matching dollars. Locally, the NCDA will proceed with key project elements: ./ Engineering, design and property acquisitions for commuter rail. ./ Detailed negotiations with the BNSF railroad on construction and operating agreements. ./ Engineering and design of the four block Hiawatha Light Rail Transit connection. The next several months will see important progress on the Northstar project in preparation for the 2006 legislative session, when the NCDA will seek approval for the final state funding commitment needed to construct the Northstar line (approximately $51 million). Most importantly, state funding keeps the Northstar project on track for beginning service to commuters in the Northstar Corridor in late 2008. Why is FTA Funding Important to Northstar? Federal funding programs for U.S. transit projects are administered by the Federal Transit Administration (FT A). Because the FT A will provide up to 50 percent of the construction costs of qualifying projects, competition for FT A funds is fierce nationwide. Northstar Commuter Rail is competing against numerous regional transit projects throughout the country for the funding provided by the FTA. In evaluating which projects to support, the FT A conducts a rigorous review process to assess a project's merits and cost- effectiveness. Transit projects must demonstrate that they will improve the efficiency of a region's transportation system in a cost-effective manner. Northstar has previously met the FT A's criteria, receiving a "Recommended" rating three times. The rating was changed to "Not Recommended" pending the commitment of state funding. The action by the 2005 Legislature puts the Northstar project in significantly better standing with the FT A. By securing the $37.5 million in state funding this year, along with the $44 million in local funding already approved, Northstar can now move ahead to compete with other transit projects for federal dollars. Northstar project backers will submit the required information to the FTA to regain a "Recommended" rating. Once this has been achieved, the state will be able to access federal matching dollars covering half of Northstar's construction costs. For more information about the FT A go to: www.fta.dot.gov How's the View from the Road? According to the Texas Transportation Institute's 2005 Urban Mobility Report, the Twin Cities ranks 5th worst in traffic congestion (determined by the cost of delay and excess fuel consumption) among 26 large size metropolitan areas throughout the country. Minnesotans spend an average of 43 hours stuck in rush-hour traffic and consume 37 million gallons of excess fuel. Additionally, the cost of congestion rose from $937 million to $975 million over the last year, or $722 per rush hour driver. According to the same study, to simply maintain the current levels of congestion, Minnesota will need to build at least 48 miles of new lanes annually (at a cost between $10 million to $40 million per highway mile) and have 83,000 people using public transportation or carpooling. The level of demand on our system underscores the need for projects like Northstar Commuter Rail. www.mn-GetOnBoard.com 4. . 5. 6. NCDA Meeting Agenda June 2, 2005 4:30 P.M. NOTE LOCATION: Anoka County Government Center Anoka, MN 1. Minutes of the May 5, 2005 Meeting* Action Requested Approval Approval Approval Approval Approval Information Information Discussion Information 2. Executive Committee Report: a) Commuter Coach Funding* b) Northstar Project Office: Approval of Expenditures* c) BNSF Rail Passenger Capital Improvements Engineering Agreement* d) Selection of Broker/Insurance Consultant* 3. Technical Reports: a) Advanced and Final Design of Commuter Rail i) Commuter Rail Rolling Stock Evaluation ii) PE Validation b) Advanced and Final Design of LRT Connection FT A Issues a) New Starts Submittals b) Monthly Report* Legislative Issues: a) 2005 State Legislative Session Wrap-up b) Federal Public Information Update 7. Other a) Next Meeting: July 7, 2005 b) Meeting Location * Documentation enclosed Discussion If you are unable to attend this meeting, please contact Peggy Aho at 651-222-7227. Agenda Item #1 NORTHST AR CORRIDOR DEVELOPMENT AUTHORITY DRAFT Meeting Minutes May 5, 2005 The Northstar Corridor Development Authority met on May 5,2005, in regular session at the Anoka County Government Center, Anoka, Minnesota. In attendance: LeRoy Pauley, Jeanne Mason, Bruce Nawrocki, Bob Barnette, Carl Anderson, David Elvig, Dan Erhart, Joe Voigt, Scott Schulte, Paul Motin, Elwood Bissett, Ewald Petersen, Felix Schmiesing, Jon Riebel, John Norgren, Mark Limpert, Tim Yantos, Duane Grandy, Mary Richardson, Ken Stevens, Jan Lucke, Mark Fuhrmann, Dave Peterson, James Saufel, Patrick Wussow, Jay Mclinden, Scott Johnson, Jim Barton, Steve Novak, Margaret Langfeld, Linda Jungwirth, Dee Guthman, Robert Kirchner, Todd Rapp, Jon Olson, Jill Brown, Dale Robinson, JoAnn Robinson, Peg Aho, Paul McCarron, Sue Youngs, Dan Erhart, Dennis Berg, Paul Ostrow 1} Chair Grandy called the meeting to order at 4:45 p.m. 2} Ken Stevens reported on the Value Engineering Study Report. There was a team of experts who came into town and looked at ways to reduce costs and improve the Project. The team was assisted by Northstar Project consultants and staff. A list of 60 ideas was developed which might improve the costs of the Project and the Project itself. The team completed a report defining those issues and assigning cost estimates. The PMT has reviewed the recommendations in the Report and placed them into one of three different categories: reject, accept, or further study needed. Paul Danielson gave an overview of the Value Engineering Process (a five part process) which should be completed by May 21. The process includes information gathering, creative brainstorming, judgment and evaluation, proposed development and a presentation of results. The objective of the process is to: preserve the project scope; maintain the CEI by saving capital costs and reducing O&M costs; identify ideas that would improve project value; balance capital expenditures; address Project risks and confirm the cost estimate. Bruce Nawrocki asked why is there not a station sited in Columbia Heights when the rail line runs adjacent to the City? Would putting a station in the City make it more accessible to the people of Columbia Heights? Tim Yantos noted that there had been an analysis done on a potential station site in Columbia Heights. The conclusion of the analysis was that there are too many physical barriers. Paul Motin made a motion that the NCDA accept receipt of the Value Engineering Study Report as prepared by Kimley-Horn and Associates and DMJM Harris on behalf of the NCDA. The motion was seconded by Woody Bissett and passed unanimously on a voice vote. 3} Mary Richardson noted that Anoka County has been providing financial management services to the NCDA since 1997 and that the Executive Committee is recommending that the NCDA request Anoka County to continue in that role. Scott Schulte made a motion that the NCDA authorize Chair to execute an amendment to the financial management services agreement extending the term for the life time of the project development or until such time as the Agreement is terminated by either of the parties. The motion was seconded by Felix Schmiesing and passed unanimously on a voice vote. 4) Mary Richardson noted that as the NCDA is moving further into final design, the NPO needs a location to house staff and consultants working on the Project. The FT A has an expectation that all documents and people will be housed together in one location. Therefore, staff are recommending that the 2005 NCDA Budget be amended to provide for the costs of the project office. Mary Richardson noted that the proposed budget amendment shifts funds from Line Item #6 (Value Engineering) to Line #1 (Administrative Expenses) as shown in proposed 2005 Budget Amendment #2. Ms. Richardson noted that the NCDA received grant funds from the Federal Government which can be used for project office expenses. Mary Richardson reviewed.a recommendation of the Executive Committee/ Capital Budget Committee that the NCDA locate its Project Office (NPO) at the Ceresota Building in downtown Minneapolis, on the 7th floor. Staff have been negotiating with the Lessor and have agreed to the following basic terms of a lease agreement: Term: July 1, 2005 - June 30, 2009 with an exit without penalty clause that can be exercised by the lessee if it is determined that the space is no longer needed, after the first year Assignability: Lease to include a clause that allows the NCDA to assign the lease to another party (e.g., Minnesota Department of Transportation) Square Feet: Approximately 4,800 with option to expand as needed Rent: $4.50 per square foot Operating Cost: $9.05 per square foot Parking: $90 per space per month (estimated need of 29 spaces at total cost of $31,320) Jeanne Mason made a motion that the NCDA amend its 2005 budget by shifting $114,000 from value engineering to administrative expenses including rent, operations, equipment, and miscellaneous expenses for the NPO, as discussed above and that NCDA select the ih floor of the Ceresota Building in Downtown Minneapolis as the new location of the Northstar Project Office and authorize the chair to finalize negotiations and execute a lease agreement with Ceresota Mill Limited Partnership with the terms and conditions as detailed by staff. The motion was seconded by Scott Schulte and passed on a voice vote, 4 members voted nay. David Elvig from the City of Ramsey noted that there are buildings available around Ramsey for a nominal cost. Bruce Nawrocki asked if staff had looked at the office space that was available in Columbia Heights, as mentioned at the April NCDA meeting. Tim Yantos noted that staff did look at the space Mr. Elvig and Mr. Nawrocki referred to along with many others. Mr. Yantos noted that two important components of the Project are the commuter rail piece and the LRT piece. The LRT connection piece of the Project will involve more time and effort than the commuter rail portion of the Project. Various issues were instrumental in staff reaching the recommendation of the Minneapolis location: driving costs for staff and consultants, moving expenses, lease costs, misc. communications issues and the ability to end the lease after one year. Frank Dunbar has been handling lease negotiations on behalf of the NCDA with the Ceresota Building. Scott Schulte asked where the determination that 29 parking spaces are needed for NPO staff derived from. Mr. Yantos noted that the need for 29 parking spaces is based on an estimate of how many staff will be working out of the NPO on a fulltime basis. 5) Jon Olson gave an update on the current financial status of the NCDA Special Project: Commuter Coach Service. Mr. Olson discussed the implications of the operating shortfall to date and the projected shortfall for 2006 and the revenue necessary to continue the commuter coach service. Staff will ask for a recommendation, at the June NCDA meeting, on funding for commuter coach services. Bruce Nawrocki asked if there is updated ridership information available. Mr. Olson noted that in March of this year there was an average of 16,666 riders for the month. During off peak hours, the buses are running about 76 to 77% full, and during peak hours full. Farebox recovery is high. Farebox covers approximately 60% of operation costs. Bruce Nawrocki asked how many stops are made. Mr. Olson noted that 73% of the rider's board at the Elk River stop and 27% at the Coon Rapids stop. Mark Limpert asked if there are any projections of increased ridership for the commuter coach service. Mr. Olson noted that the buses can't accommodate extra riders because the buses are running near or at capacity now. Mr. Limpert asked if the service expects to reach a point where there won't be enough room and people will be left behind, and if so, are there any plans for adding buses. Mr. Olson noted that more subsidy would be needed if more buses were added. He further noted that the Project would have to come up with an additional $80,000 in local share assuming that there would be no more federal subsidy dollars available. Mr. Olson reiterated that this is a demonstration project which was started to get people interested in using public transportation and once the train starts running there would be plenty of seats available and buses would quit running. A member of the audience asked if there might be another revenue source that might be able to be tapped for this demo. David Elvig suggested perhaps charging people for parking at the bus stops. Mr. Olson noted that these sites were built as park and rides never intended to charge for parking. Bruce Nawrocki asked what the subsidy is per passenger. Mr. Olson replied $1.63 per person. Bus fares are currently $2.50 from/to Coon Rapids and $3.50 from/to Elk River. Mr. Olson noted that the Metropolitan Council will be implementing an increase in public transportation fares as of July 1. The increases are 50 cents for peak hours and 25 cents for nonpeak hours. 6) Paul Danielson reviewed advanced and final design issues for commuter rail. He noted that Kimley-Horn is currently working on the issue of whether or not a tunnel should be built at the Coon Rapids station for pedestrian use. He also noted that there is a chance that the Big Lake station could be located next to the proposed maintenance facility location in the SE corner of the site. Kimley-Horn is studying advantages and disadvantages of various station locations for the Big Lake station. Mr. Danielson listed various issues that are being reviewed pertaining to the maintenance facility: Some of issues are: connection to the mainline (one connection may be able to be eliminated), reduction of bailout sections, interior layouts, building size, and efficient layout space for the workers. Mr. Danielson noted that there has also been some discussion about putting together a Life Safety Committee as the Project develops. This Committee would address permitting processes various communities along the Corridor have, and federal ADA access requirements. Mr. Danielson noted that the FTA has been tightening their literal interpretation of ADA rules. 7. On behalf of Steve Apanian, Mr. Stevens gave the update on Advanced and Final Design of the LRT connection. He noted that some of the issues being addressed are the Sth street alignment (north side or south side) and the proposed ball park. There is a meeting scheduled for next Tuesday at Hennepin County with Hennepin County folks, people from the City of Minneapolis and HOK (company from St. Louis that has been retained to design the stadium). Staff will bring more information to the NCDA in the coming months as this issue moves forward. 8) Paul Danielson gave an overview of the PE Validation Review Process. Part of the process is to identify issues that need further consideration and any impacts to code changes (building codes and sustainable design). Findings of the process will be presented at the June meeting. Major issues are: vehicle type, ADA access, Big Lake Station location, Coon Rapids track crossing, Fridley access configuration, downtown station (stadium impacts), operator determination, systems design (operator/central control location), BNSF communication and platform design changes. 9) Mark Fuhrmann reported on information from the FT A regarding the "Dear Colleague" letter which reviewed suggested changes in the FT A New Starts process. The FT A administrator, Jenna Dorn, has issued her decision regarding the FTA's New Starts process. Ms. Dorn's letter noted that the FT A would be moving forwards with three suggestions: an inflation adjustor to adjust the cost effectiveness thresholds that currently exist in their rating process; allowance for projects to use 2030 policy decisions; and instituting standardized cost categories which will be more prescriptive of what can or cannot be included in a cost category. 10) Mark Fuhrmann gave an update on the Project Schedule and its key milestones. He noted that the Project Management Plan has been completed and will be a part of the submittal to the FT A. 11) Mary Richardson gave an update on State legislative action. She noted that there has been a lot of discussion on the transportation bill, nothing firm to report. 12) Jon Olson gave an update on federal legislative activities. He noted that he and others had visited Washington in April and that support for the Northstar Project is very strong. 13) Todd Rapp gave an update on public information activities. He noted that Governor Pawlenty had signed the transportation bonding bill. Four things need to be done: make sure that supporters and others understand that more funding will be. needed in 2006, communicate progress the Project makes over the next several months, make sure there are no surprises, keep legislators and others informed, and continue to engage new residents in this fast growing corridor. Jill Brown noted that the Commuter Coach demo project had its SOO,OOOth rider in April. A survey of people riding the bus was completed: 7S% of riders responded and only one person noted their dissatisfaction that the bus was too crowded. 14) There being no further business, John Norgren made a motion that the meeting be adjourned. The motion was seconded by Ewald Peterson and passed unanimously on a voice vote. U [l]@[%jiJ[}{]@iJ&J/JJ @@[%j!l3DW@!l3 Executive Committee Agenda Item #3 NCDA Agenda Item #2a May 27, 2005 MEMO TO: NCDA Executive Committee/Capital Budget Committee NCDA FROM: Staff RE: Commuter Coach Funding Based on our analysis of the current funding for the Northstar Commuter Coach, a fare increase of an additional $0.75 from the Elk River station is recommended. As you will recall, last October we held a public hearing regarding the probability of increasing the fares an additional dollar to a total cost of $4.50 per ride. At that point in time, the NCDA voted to delay action until this June on that fare increase. Since October, our ridership has continued to be strong and consistent with our projections, and we continue to fall behind in paying for the service as we go. In the meantime, Metro Transit has raised fares systemwide, and this fare increase is anticipated to go into effect July 1, 2005. Consequently, staff believes that we have no other choice than to make this additional $0.75 increase from the Elk River station. This will result in fares from the Coon Rapids-Riverdale station of $2.75 per ride, and the fares from the Elk River station of $4.50 per ride. Even with the fare increase indicated above, we are projecting a $104,000.00 shortfall for NCDA budget year 2005 and an approximate $150,000.00 shortfall for NCDA budget year 2006. Jon Olson will be at the meeting in case there are any questions. Action Reauested: That the Executive Committee/Capital Budget Committee make a recommendation that the NCDA approve a fare increase of an additional $0.75 from the Elk River station. Northstar Corridor Development Authority 21003" Avenue. Anoka. Minnesota 55303-2265 (63) 323-5700 Fax: (763) 323-5682 www.northstartruin.org Executive Committee Agenda Item #4 NCDA Agenda Item #2b NPO MEMO Northstar Project Office Ceresota Building 155 Fifth Avenue South Suite 300 Minneapolis, MN 55401 '~ ~ ~ ~'IIDIITHSTJUI ~U'L Phone: 612-215-8200 Fax: 612-215-8210 DMC Number: File Code1: File Code 2: File Code 3: To: NCDA Executive Committee / Capital Budget Committee NCDA FROM: Mike Schadauer, Deputy Director of Budget, Grants, and Project Controls DATE: May 27, 2005 SUBJECT: Northstar Project Office: Approval of Move Expenditures Copy: DMC In the topic covering the lease for the Northstar Project Office at the April NCDA Board meeting, an estimate of $70,000 in space preparation and related moving costs was discussed. These costs include the following: · Existing wall demolition and space preparation · Modular furniture takedown, re-installation, and move of contents . Move of phone system . Data and phone wiring · Network server room infrastructure . Electrical wiring · Design services and move coordination Early lease negotiations included this $70,000 amount as an amortized cost to be paid back over the life of the lease with interest. As lease negotiations progressed, however, this amortized amount was reduced to approximately $47,000, thereby reducing the amount subject to future interest. The amount over $47,000, or up to $23,000 in move costs, will have to be paid in full as they occur. The project management team will keep these costs as low as practical. Action Requested: That the Executive Committee/Capital Budget Committee recommends that the NCDA authorize the Executive Director to spend up to $23,000 for Northstar Project Office move expenses. U [J:!]@[ff3'[]OO@'[]!JJm @@!13f1]O{ffJ@[ff3 Executive Committee Agenda Item # 7 NCDA Agenda Item #2c May 27,2005 MEMO TO: NCDA Executive Committee / Capital Budget Committee NCDA FROM: Staff RE: Rail Passenger Capital Improvements Engineering Agreement with BNSF The third element of the advanced and final design of the Northstar Commuter Rail Project is the engineering of the track and signal improvements to the BNSF railway. (The NCDA has already entered into contracts for the advanced and final design of the commuter rail station and facilities and for the LRT connection.) Because the railroad is owned by BNSF, BNSF will conduct the engineering pursuant to an agreement with the NCDA. BNSF will retain engineering consultants to perform engineering services, provide oversight and necessary flagging services, prepare and complete the advanced and final designs, prepare cost estimates, and prepare all bid packages. BNSF will absorb the first $50,000 of its overhead costs, without request for reimbursement. The contract will specify the capacity improvements that will be included in advanced and final design. Note that BNSF will allow NCDA's technical staff to review the work prepared by the railroad. The proposed contract includes the engineering of the track improvements. Once preliminary engineering is complete on track improvements, the Agreement will need to be amended to include services and costs relating to the signal improvements. It is also contemplated that a budget amendments will be necessary for the engineering of several supplementary track improvements. The budget for the proposed contract is $993,288 and is within the NCDA's budget for advanced and final design. As required by the FTA, staff are preparing an independent cost estimate. The Agreement will terminate on October 10, 2006. Note that the FTA will also review the Agreement for consistency with federal requirements. At the March 2005 meeting, the NCDA delegated to the Executive Committee the authority to approve the negotiated agreement with BNSF in order to act in an expeditious manner to meet schedule constraints. Due to unanticipated delays in the project schedule, it was not necessary to use the delegated authority and it is recommended that the NCDA approve the agreement as described above. Action Requested: That the Executive Committee / Capital Budget Committee recommends that the NCDA authorize the chair to finalize negotiations and execute the Rail Passenger Capital Improvements Engineering Agreement with BNSF, as described above. Northstar Corridor Development Authority 2]003" Avenue. Anoka. Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 \vw\v.northstartrain.org U []')@[ff3uDO~u!JJ[ff3 @@[ff3[1]O@@[ff3 Executive Committee Agenda Item #8 NCDA Agenda Item #2d May 27,2005 MEMO TO: Executive Committee / Capital Budget Committee NCDA FROM: Staff RE: Selection of Broker/lnsurance Consultant The NCDA issued a Request for Proposals for Broker/Insurance Consulting Services for the Northstar Commuter Rail Project on April 18, 2005. The NCDA wishes to engage a qualified property and casualty insurance consultant/broker with successful experience in commuter rail projects to perform professional services in connection with the Project, to possess the expertise and specialized knowledge required to provide professional advice and counsel in developing the risk management program for the Northstar Commuter Rail Project, and to specifically advise the NCDA and Mn/DOT in negotiating insurance terms and conditions with the BNSF Railway Company (BNSF) for both the construction and operational phases of the Northstar Commuter Rail Project. Two firms responded to the RFP: Willis of Minnesota, Inc. and Marsh USA, Inc.. Both firms will be interviewed on June 1, 2005. The Evaluation Team consisted of: Phillip Blue, Marlys Williamson, Phil Walljasper, John Sullivan, Mary Richardson, Tim Yantos, Colleen Herrmann and Jan Lucke. Staff will rank the proposals based on the following criteria: inclusion of required certificates/ statements, good faith efforts to meet DBE goal, the consultant's understanding of the work, qualifications of the Proposer and the project team, the cost or price of the work, availability of key personnel and ability to complete work on schedule, consultant's past record of performance, and the com prehensiveness of the proposal. The Evaluation Team will submit its evaluation and recommendation at the June 2,2005 meeting. The Executive Committee / Capital Budget Committee will be asked to recommend to the NCDA a consultant to provide Broker/Insurance consulting services, and authorize the Chair to negotiate and execute a contract. Action Requested: That the Executive Committee / Capital Budget Committee recommend to the NCDA a Consultant to provide Broker/Insurance Consulting services. Northstar Corridor Development Authority 21003 ' Avenue. Anoka. Minnesota 55303-2265 (763) 323-5700 Fax: (63) 323-56~2 WW\v.n0l1hstartrain.org: NCDA Agenda Item #4b NORTHSTAR CORRIDOR RAIL PROJECT MONTHLY REPORT May 2005 Minnesota Department of Transportation in Cooperation with the Northstar Corridor Development Authority and the Metropolitan Council The Northstar Corridor Rail Project Phase 2 (P~ Futltn Routt) Phase 1 (Z004 Minnesota IkmdiDg ~ River ~ .. MtlItlAlMtm. lisISt. Paul International Airport Northstar Corridor Monthly Report May 17,2005 2 I. Introduction The proposed Northstar Corridor Rail Project (Project) will provide commuter rail service along a 40-mile corridor from Downtown Minneapolis to Big Lake, Minnesota parallel to Trunk Highways 47 and 10. It will use existing rail tracks owned by the Burlington Northern Santa Fe Railway Company (BNSF) and include 6 stations. The commuter line is expected to carry 5,600 passengers per day by the year 2025. The rail line will have inter-modal connections to bus transit and to the Hiawatha Light Rail Transit (LRT) line. The Northstar connection to LRT consists of a four-block extension on the north end of the Hiawatha LR T to reach the Downtown Minneapolis commuter rail station. With the exception of the Downtown Minneapolis station, all of the stations will have park and ride facilities. Since the last written report to the Federal Transit Administration (FTA), dated April 2005, the following occurred: · Project staffing changes · PE validation packages submitted for comment · Twins baseball stadium coordination meeting · The Project is submitting a series of materials to FTA to seek a "recommended" rating and approval for entry into final design · Project staff met with a new BNSF negotiating team to continue drafting the design agreement · The Project issued a Request for Proposals (RFP) for Risk Management · Community and public meetings have been held regarding Northstar II. Project Milestones The following table lists the major milestones in the development and ongoing implementation of the Northstar project. Northstar Corridor Monthly Report May 17, 2005 3 Date March 2000 June 2000 October 2000 January 2001 March 2002 December 2002 April 2005 August 2005 May 2006 July 2006 Late 2006 / Early 2007 Spring 2007 Late 2008 / Early 2009 Northstar Pro' ect Milestones Activi Major Investment Study completed-Commuter rail recommended FT A a proved entry into Preliminary Engineerin Draft Environmental 1m act Statement (DEIS) ublished Su lemental Information to the DEIS ublished Final Environmental Impact Statement ublished FT A issued Record of Decision Minnesota Legislature commits $37.5 million in bonding for Northstar FT A ap roves entry into Final Design Minnesota Legislature commits remaining state funding for N orthstar FTA issues Letter of No Prejudice enabling utility relocation FTA enters into Full Funding Grant Agreement for Northstar Construction begins Revenue service begins III. Project Finances Project Budget The following table lists the existing Northstar Project budget by FTA Standard Cost Category. No. Cate or 10 Guideway & Track Elements 20 Stations, Sto s, Terminals, Intermodal 30 Support Facilities: Yards, Shops, Admin. Bldgs 40 Sitework & Special Conditions 50 S stems Construction Subtotal Cate ories 10-50 60 ROW, Land, Existing Improvements 70 Vehicles 80 Professional Services 90 Unallocated Contin enc Subtotal Cate ories 10-90 100 Finance Char es C]Total Project Cost et Amount (FY 2008 $) $32,920,00 $22,302,00 $20,927,00 $9,439,00 $23,964,00 $109,552,00 $7,959,00 $69,152,00 $40,929,00 $37,408,00 $265,000,00 Not determined $265.000.0001 Northstar Corridor Monthly Report May 17,2005 4 Funding Sources The following table summarizes the sources of funding to date for the Northstar Project. The NCDA member counties have passed resolutions committing their full share ofthe Northstar Project. Their commitment to date totals approximately $44 million or $26 million in addition to that shown below. Northstar Proiect Fundin. Sources to Date Source Federal State Met Council NCDA 1998 Twin Cities Transitway Projects $ 350,000 $ 287,5~ Section 5309 (Grant MN-03-0056) 1999 STP Grant Section 5307 (MN-90 $ 3,999,981 $ 1,000,000 X110) 1999 STP Grant Section 5307 (MN-90 $ 2,000,000 $ 500,000 X138) 2000 CMAQ Grant Section 5307 $ 960,000 $ 69,885 $ 170,1 fe (Amendment to MN-90-X138) 2000 & 2001 Twin Cities Transitway $ 4,346,669 $ 1,086,667 Proiects Section 5309 (MN-03-0088) 2002 New Starts Section 5309 (MN- $ 9,900,131 $ 2,475,033 03-0111 ) NCDA -- Advanced & Final Desion $ 10,000,00C NCDA (Hennepin County) -- LRV $ 6,300,00C Procurement 2003 New Starts Section 5309 (no $ 4,917,912 grant yet) 2004 New Starts Section 5309 (no $ 5,659,028 grant yet) 2005 New Starts Section 5309 (no $ 4,960,000 grant vet) 2005 Minnesota Bonding $ 37,500,000 ITotal I $ 37,093,7211 $ 39,069,8851 $ 2,475,0331 $17,844,34~ Project Obligations The following table lists the contracts and obligations that have been incurred by the Northstar project, including the amount expended to date. All funds expensed to date have been for professional services. Northstar ProiectObliaations and Exp enses PurDose Contractor Obliaated EXDended Balance Total throuah Preliminarv Enoineering $ 8,477,121.30 $ 8,477,121.30 $ - Advanced Preliminary Engineering Kimlev Horn & Assoc $ 428,900.00 $ 325,678.04 $ 103,221.96 Project Mana~ ement Kenneth Stevens (2004) $ 150,000.00 $ 146,491.92 $ 3,508.08 Proiect Manac ement Kenneth Stevens (2005) $ 150,000.00 $ - $ 150,000.00 Project Manac ement Richardson, Richter & Associates (2004) $ 322,000.00 $ 308,788.66 $ 13,211.34 Proiect Manac ement Richardson, Richter & Associates (2005) $ 347,000.00 $ - $ 347,000.00 Proiect Manaoement Loch & Associates $ 50,000.00 $ 2,123.05 $ 47,876.95 Project Management MnlDOT (under MN-Q3-0088) $ 248,569.00 $ 200,887.59 $ 47,681.41 Project Management MnlDOTlimder MN-03-0111) $ 320,000.00 $ 17,233.62 $ 302,766.38 Host Railroad Neootiations Greene-Esoel (2004) $ 100,000.00 $ 37,860.44 $ 62,139.56 Host Railroad Neootiations Greene-Esoel (2005) $ 300,000.00 $ - $ 300,000.00 Tech Suooort for Railroad Negotiations Mainline Manaaement $ 158,000.00 $ 74,905.89 $ 83,094.11 Public Information Northwoods Advertisina $ 245,285.00 $ - $ 245,285.00 Station and Maintenance Facility Advanced & Final Desion Kimlev Hom & Assoc $ 4,173,632.00 $ 407,380.74 $ 3,766,251.26 LRT Advanced & Final Design & Commuter Rail Oversiaht L TK Enaineerina $ 3,098,927.00 $ 151,866.39 $ 2,947,060.61 Liaht Rail Vehicle Procurement Bombardier $ 6,300,000.00 $ - $ 6,300,000.00 IG rand T atal 1$ 24,869,434.30 i $10,150,337.64 i $ 14,719,096.661 Based on invoices received by MnlDOT to date. Northstar Corridor Monthly Report May 17,2005 5 IV. Project Staffing The Deputy Director of Design position within the Northstar Project Office has been filled on an interim basis by a combination of Jon Olson, the Anoka County Public Services Division Manager and registered engineer, and Ken Stevens, a long time consultant to the Northstar Corridor Development Authority and former director of the Hennepin County Regional Railroad Authority. Metro Transit has begun a national search to fill the position. A senior engineer from Mn/DOT, Bryan Dodds, accepted the Environmental Engineer position in the Northstar Project Office and began work on May 9, 2005. He will direct the preparation of any required environmental documentation and ensure that all promised mitigation measures are fulfilled. Mn/DOT also plans to post another engineer position in the near future. V. Advanced Design Advanced design is underway, with the assistance of two teams of consultants. A team led by Kimley Horn and Associates (KHA) is responsible for the six commuter rail stations and the maintenance facility including the central control facility. A team led by L TK Engineering (L TK) is responsible for the LR T Connection and providing technical support for KHA's work on the commuter rail stations and maintenance facility. The entire project design team meets on a weekly basis. Both teams submitted draft preliminary engineering validation reports for most of their areas of responsibility. These reports validate the original preliminary engineering completed in 200 I, provide replacement preliminary engineering plans reflecting changes in the conditions or project since 2001, or identify issues to be addressed as the design advances. These reports will be carefully reviewed by Mn/DOT, NCDA, and Metro Transit to ensure they fulfill project requirements. An issue that is currently being addressed is the best location for the grade separated pedestrian crossings at the Coon Rapids and Fridley stations. Project staff are working with the host cities to determine locations that will best serve transit patrons while fitting into the surrounding neighborhoods. Project staff and consultants meet bi-weekly with the City of Minneapolis on design issues of the LR T Connection and inter-modal station. Periodic meetings are also held with the State Historic Preservation Office and Minneapolis Heritage Preservation Commission to get their input and concurrence on the proposed plans because of the adjacent Warehouse Historic District. Project staffwill continue to work with these organizations to fulfill the programmatic agreement regarding cultural resources that was included in the Project's Record of Decision. Northstar Corridor Monthly Report May 17,2005 6 BNSF will manage advanced and final design of track and signal improvements on their infrastructure with oversight by the Northstar Project Office with the assistance of the L TK team. See section IX of this report for more details on the progress of this contract. VI. Twins Baseball Stadium Coordination Meeting Chuck Ballentine of Northstar member Hennepin County chaired a preliminary discussion at the Northstar Project Office on Tuesday, May 10 with staff from HOK, Twins Management, the City of Minneapolis, Hennepin County, Met Council, and the Northstar Project Office. The purpose of the meeting entailed preliminary discussion of the location of the potential new baseball stadium and the coordination of the LRT alignment and platform where it would meet at the future location of the Inter-modal Station. The Minnesota Twins and Hennepin County have agreed to a funding plan for a new baseball stadium in downtown Minneapolis. The plan for the $478 million facility will include private funding from Twins owner Carl Pohlad and public money from the county in the form of a 0.15 % sales-tax increase. On Monday, April 25 the Twins chose to hold the official announcement of the stadium deal outdoors near the Metrodome's light-rail station. Team officials say they wanted to highlight how light rail and the proposed Northstar commuter rail lines will help bring fans to the new park. The Twins' ballpark plan took another step forward on Tuesday, May 10th with its first significant victory in the State Legislature. The House Governmental Operations and Veterans Affairs Committee approved by a vote of 17-5 the bill to authorize Hennepin County to levy a 0.15 percent countywide sales tax to construct a new ballpark. The bill now advances to the Local Government committee, which will meet to discuss the bill further. VII. Value Engineering The Project conducted a Value Engineering (VE) study on March 21-25,2005. The VE team identified 60 ideas of which 53 were developed into proposals. The collective impact of the proposals would total $19.6 million if all could be accepted. Proposals were grouped into four categories: Rail stations (17 proposals), Maintenance/operations facility (24), Track/signa1s/fleet/genera1 (5), and LR T (7). The Northstar Project Office reviewed the 53 proposals and made a recommendation to the Northstar Corridor Development Authority (NCDA) that 15 of these, totaling a potential savings of $7.4 million, be carried forward for further analysis. On May 5, 2005 the NCDA Board approved that recommendation. Northstar Corridor Monthly Report May 17,2005 7 Copies of the VE study and NPO response will be provided to the FT A Region V office and Project Management Oversight Consultant. VIII. New Starts Criteria and Request to Enter Final Design With $37.5 million in state bonding for Northstar approved by the 2005 Minnesota Legislature and signed into law by Governor Pawlenty, the Project is in the process of submitting material needed to gain a "Recommended" rating and to request to enter Final Design. The Project began this process with the early submittal of two chapters ofthe Project Management Plan (PMP). The remaining chapters of the PMP were submitted on March 31. New Starts Criteria and a revised Financial Plan, containing more specific information about the bonding passed by the legislature, will be submitted as quickly as they can be assembled. The timing for submitting the New Starts Criteria and revised Financial Plan depend on the time it will take to produce a ridership forecast from the Twin Cities travel demand model. FTA's Washington office gave verbal approval to use the recently revised model in late March. Project consultants are working carefully with the model to ensure the forecast will meet all FT A requirements and expectations. They have encountered some setbacks and do not have a ridership forecast as of the publication of this report. Time Feb 25 Mar 4 Mar 31 Apr 11 mid June May - July July June - July July August Northstar Schedule for Request for Project Rating and Request to Enter Final Design (all months are in year 2005) Activity Northstar submitted to FTA Chapter 2, Project Organization, of the Project Management Plan (PMP) Northstar submitted to FTA Cha ter 10, Real Estate Plan, ofthe PMP Northstar submitted to FTA full PMP Minnesota Legislature committed $37.5 million in bonding for Northstar and Governor Pawlenty signed into law Northstar submits to FTA request to re-rate project and draft request to enter final design containing New Starts Criteria and Financial Plan FT A review of above. N orthstar revises material based on comments from FT A. Northstar submits to FTA final request to enter final design containing revised documents as necessary FT A review of above. N orthstar revises material based on comments from FT A. FTA re-rates the Project and submits final design recommendation to Congress FT A issues approval to enter Final Design Northstar Corridor Monthly Report May 17, 2005 8 The target date for submittal of the New Starts Criteria and Financial Plan to FTA has been delayed to June 17,2005. This will be accompanied by a request for FTA to re-rate the Northstar project and a draft request to enter Final Design. Project staff understands there is a new requirement for FTA to submit recommendations for a project to enter final design to Congress and that Congress has a 3D-day period to act on the recommendation. If Congress does not act, the recommendation is accepted. IX. BNSF Negotiations During the past month, discussions with BNSF regarding Northstar design, constructions and operations have focused on informing the new BNSF negotiating team about the Northstar project. As noted in the last report, BNSF has appointed a new team lead by Rick Weicher, BNSF Vice President and Senior Regulatory Counsel. Key issues for discussion have included: 1. Funding for N orthstar (sources and uses) 2. Proposed Capacity Improvements 3. Liability and Indemnification, and 4. The consistency of operating parameters with freight operations. The Northstar negotiating team has had several conference calls and meetings with the BNSF team to discuss these issues and to create a better understanding of Northstar needs and the associated costs. On Friday, May 13, the Northstar team met in Chicago with BNSF representatives. Mr. Weicher expressed BNSF's willingness to move forward with advanced and final design, but noted that BNSF management is reviewing the draft Design Agreement with its engineering staff. It is anticipated that BNSF will conclude its review and approve the agreement within the next week. Once the engineering work is under way, discussions will resume on the construction and operating agreements. x. Risk Management On April 18, 2005, the NCDA issued an RFP for Broker/Insurance Consulting Services for the Northstar Commuter Rail Project. Notice was published in the State Register on April 18, 2005. Twelve firms requested a copy of the RFP. A pre-proposal conference was held on Tuesday, May 3, and approximately five firms attended the meeting. On May 6, the NCDA issued an addendum to the RFP notifying potential vendors that the DBE goal for the project is race and gender neutral and there is no percentage participation goal established by MnlDOT. Proposals are due on May 20. The services requested will assist the project in addressing the risks arising out of the construction and operations of the Northstar commuter rail project. In order to better understand the associated risk management issues from an agency perspective, the NCDA has authorized Northstar Corridor Monthly Report May 17,2005 9 the Anoka County risk manager and the risk manager of the State of Minnesota to attend the APT A Risk Management Conference that is occurring the week of May 23, 2005. XI. Property Acquisition Based on feedback from Andrea Orr ofFTA Region V, the Project is developing a stand-alone Real Estate Plan. This will supplement the information in Chapter 10 of the Project Management Plan and be changed more frequently. It will contain a description of the Project's property acquisition process and the roles and responsibilities of the participating counties and Mn/DOT personnel. The Real Estate Plan will contain a Parcel Status List with summary information that categorizes the number of parcels in defmed value ranges. This will offer a quick method to understand the magnitude of real estate work. The Parcel Status List will be maintained and updated throughout the property acquisition process to ensure property rights are acquired in the time-frame necessary for construction and operations. It will also be included in this monthly report. Northstar Corridor Monthly Report May 17,2005 10 t ::c'" .. Q) ~~ ~ '5 f8" '5< erg ~~an'i ~ .e OJ E ".."Z '" Ff ~ ~:~ <Z::Ew - II) :; II) .a (tf li) ";; V :e A. '- S II) € o z . ,~ ~~ ~ g .0.. l:aIl ::J-", U ~ Il. ~ . :ei .! . ::J.r. tr" ~(I) ~ ~ .!2.;! ";:: uu U fII '" ~ 9J ".b.l:l.l:> ~rr.rrD::: ee:~~- .. 000 C Z (j) if) .. ~ ('l') ("f) tl"} '<T""~ rrrriY. VU0 000 ~~s: .. . 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Cloud Chamber of Commerce "Toward a Better Urbanism" at the U ofM for Students for New Urbanism The Rotary Club of Roseville Northstar Corridor Development Authority Board Meeting Dates A ri115, 2005 April 29, 2005 May 2, 2005 May 5, 2005 XIV. Next Steps Project staff continues work on the material FTA will need to change the project's rating from "Not Recommended" to "Recommended" and to approve entry into the final design phase. The target date for submittal of the New Starts Criteria and Financial Plan is mid June. Project staffwill communicate with FT A Region V staff throughout the submittal process to ensure timely review and progress. Mn/DOT, NCDA, and Metro Transit will review and comment on the draft preliminary engineering validation report by late May. Work is beginning on updating environmental documentation and on Americans with Disabilities Act (ADA) issues at commuter rail platforms. Project staffkeeps in contact with station cities and counties on design issues. Meetings are being scheduled to address the best location for grade separated pedestrian access to platforms at Coon Rapids and Fridley. In addition, the staff will continue to work with the City of Minneapolis and Hennepin County on issues surrounding the inter-modal station, including the proposed Minnesota Twins stadium. The project takes advantage of public information opportunities, giving presentations to civic groups and business organizations. Northstar Corridor Monthly Report May 17,2005 13