4.1. SR 09-16-200213065 0rono Parkway
Elk River, MN 55330
MEMORANDUM
Item#
4.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Scott Harlicker, Senior Planner~
September 16, 2002
Northstar Corridor Update
At the NCDA meeting held on September 5th the Authority received information regarding
Mn/DOT audit and an update of a transit way funding grant application. Mn/DOT
representative Mike Schadauer presented an updated project timeline and 2002 work plan. If
the state legislature approves funding in 2003, service will open in December 2006. Mr.
Schadauer also presented an update on the commuter bus project. The buses are operated at
about 250 riders per day, which is about 52% capacity.
Phone: 763.441.7420
Fax: 763.441.7425
www. ci.elk-river, mn.us
4.
5.
6.
NCDA
Agenda
Thursday, September $, 2002
4:30 p.m.
Sherburne County Government Center
Elk River, MN
Action Requested
Minutes of the July 1, 2002 NCDA Meeting*
Approval
Executive Committee Report: August 15, 2002
a) Completion of Mn/DOT Audit and Cost Reimbursement*
b) Allocation of Twin Cities Transitways Funding for FY 2000
$3 Million Grant Application
Information
Mn/DOT Progress Report on Northstar Commuter Rail*
Information
Mn/DOT Progress Report on Northstar Commuter Bus Project* Information
Appointment of Ross Kramer as NCDA's Designated Lobbyist Approval
Preparations for 2003 Legislative Session
a) 2003 Legislative Package
b) Public Information Activities
c) Strategy Development- Round Table Discussions
Approval
Information
Discussion
Other: October Meeting
* Documentation Enclosed
DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
NORTHSTAR CORRIDOR DEVELOPMENT A~JTHORITY
Regular Meeting Minutes
July 1, 2002
The Northstar Corridor Development Authority met in regular session on July 1, 2002, i'n the Board Room at
the Sherburne County Government Center, Elk River, Minnesota.
Present were: Lynn George, Tom Gamec, Paul Ostrow, Mark Stenglein, Don Abbott, Robert Kirchner, Jay
McLinden, Tom Wenzei, Arne Engstrom, Eugene Young, Jerry Nelson, Kirsti Marohn, Lewis Stark, Ray
Friedl, Terry Nagorski, Ewald Peterson, Elwood Bissett, Duane Cekalla, Kaye Bechtold, Greg Bruestle,
Patrick Cairns, Duane Grandy, Tim Yantos, Paul McCarron, Mary Richardson, Dan Erhart, Elliott Perovich,
John Weaver, Patrick Wuzzo, Jean Keely, Peggy Aho, Luci Botzek, Dean Michalko, Steve Novak, Jim
McLean
1. The meeting was called to order at 4:30 p.m. by Chairperson Paul McCarron.
It was the consensus of the Board to approve the agenda of July 1, 2002, with the addition of
discussion of the Metropolitan Light Rail Transit Joint Powers Board action relating to federal
funding.
o
A motion was made by Duane Cekalla, seconded by Woody Bissett, and carried unanimously to
approve the meeting minutes of June 6, 2002 as presented.
A motion was made by Duane Grandy, seconded by
that the NCDA:
Duane Cekalla, and carried unanimously
a)
Approve the 2002 Amended Budget as presented and discussed at the June 6, 2002 NCDA
meeting in the total amount of $930,000.
b)
Authorize the Chair to negotiate and execute a contract and contract amendments as
follows:
- Execute a contract amendment to the professional services agreement with David
Loch to increase the contract amount by $20,000, for a Contract Maximum for June
I, 2001 through December 31, 2002 of $65,000;
- Execute a contract amendment to the professional services agreement with Kenneth
Stevens to increase the contract amount by $15,000, for a total Contract Maximum
for June 1,2001 through December 31, 2002 of $90,000;
- Execute a contract amendment to the professional services agreement with
Richardson, Richter & Associates, Inc. to increase the contract amount by $50,000,
for a total 2002 budget amount of $160,000.
- Execute an agreement with the Anoka County Regional Railroad Authority to
provide public information services relating to the Northstar Commuter Rail Project,
in the amount of $95,000 for a term of June 21, 2002 through December 31,
2002.
5. Executive Committee/Capital Budget Committee Report:
o
10.
11.
a)
Paul Ostrow reviewed the communications plan and schedule for the remainder of 2002.
General discussion was held on the 2003 legislative candidates and their support of the
Northstar Corridor.
b)
A motion was made by Mark Stenglein, seconded by Tom Gamec, and carried unanimously
to approve the NCDA draft 2003 proposed budget and funding contributions in the total
amount of $600,000.
Discussion was held regarding the options for the St. Cloud/Steams County Regional Railroad
Authority participation in the NCDA. No action taken. John Ellenbecker noted that within a year it
should be decided which entity will join the NCDA.
Commuter Rail Corridor Coordinating Committee Report: A motion was made by Tom Gamec,
seconded by Duane Cekalla and carried unanimously to approve the recommendation of the CRCCC
that Mn/DOT evaluate the City of Ramsey request for a Northstar Corridor Commuter Rail Station
located in the City of Ramsey between Ramsey Boulevard and Armstrong Boulevard. Specifically,
the CRCCC recommends that Mn/DOT, together with NCDA staff, review, but not be limited to, the
following issues:
NCDA Station Criteria and results of initial NCDA evaluation and recommendation
Impact on Distribution of Ridership Among Stations
System Ridership
Travel Times
Operational Impacts
Capital and Operating Costs
Station Access
Property Availability
Timing of Implementation
Transit Oriented Development Potential
A response is expected from Mn/DOT by September 19, 2002.
Steve Novak provided information on state and federal legislative activities.
A motion was made by Woody Bissett, seconded by Duane Cekalla, and carried unanimously to
recommend that the Northstar Corridor Development Authority (NCDA) direct its Chair to work
with the Metropolitan Light Rail Transit Joint Powers Board to negotiate a fair allocation of the
congressional appropriations for Fiscal Years 2000 and 2001 to the Twin Cities Transitways, with a
specific distribution to the Northstar Corridor.
The next meeting of the NCDA is scheduled for Monday, August 1, 2002 at 4:30 p.m. at the
Sherburne County Government Center.
The Authority adjourned by unanimous consensus the meeting at 5:10 p.m.
Paul McCarron, Chairperson Date
Summary Report of Mn/DOT Audit
of
Agreement #78569 between Mn/DOT and NCDA
($6,350,000)
Project Cost Reported to Mn/DOT
Mn/DOT Administrative Adjustment
$ 6,315,776.82
$ 75,412.49
Amount Received
$ 6,240,364.33
Mn/DOT Administrative Adjustment
Amount to be recovered from Consultants
$ 75,412.49
$ 27,847.19
NCDA Expense*
$ 47,565.30
*Expenses:
Include Demonstration Expenses and Invoices
Submitted after termination of grant agreement
NORTHSTAR CORRIDOR RAIL PROJECT
Capital Cost Estimate
Summary
Total Project Cost
Item Description 2001 Dollars 2006 Dollars*
Northstar Corridor Commuter Rail
Rail Stations $ 49,313,200 $ 56,339,800
Maintenance/Operations Facility $ 25,605,500 $ 29,254,000
Layover Facility $ 5,363,700 $ 6,128,000
Track and Signal improvements $ 51,286,600 $ 58,594,400
Fleet $ 65,453,000 $ 74,779,400
Right-of-Way $ 11,934,700 $ 13,635,300
Art in Transit $ 194,000 $ 221,600
Contingency $ 34,112,400 $ 38,973,100
TotalI $ 243,263,10015 277,925,600
Total Project Cost
Item Description 2001 Dollars 2006 Dollars*
Northstar-Hiawatha Multi-Modal Connection
MOS (1st Ave North to 5th Ave North) $ 18,141,000 $ 20,725,900
Contingency $ 2,875,700 $ 3,285,500
TotalI $ 21,016,700 I $ 24,011,400
ITOTALNORTHSTAR CORRIDOR RAIL PROJECT I $
264,279,8001 $ 301,937,000 J
* Estimated assuming 2.7% annual inflation, 2001 to 2006
Aug 15, 2002
Northstar Corridor Rail Project
Timeline and Work Plan for the Remainder of 2002
Overall Project Timeline
March 2002 Final ElS published
Fall 2002 Environmental Record of Decision
To be determined State Funding commitment (SF in the following items)
2-4 months after SF Begin final design
20 months after SF Full Funding Grant Agreement executed and approved
22 months after SF Construction begins
42 months after SF Service opens
If the 2003 legislature approves funding for Northstar, service will open in Dec 2006.
2002 Work Plan
Now until complete
Now-Nov
Now-Jan
Nov-Jan
Now until funding
Now until funding
Now until second grant
approved
Continue providing FTA with material to finish the
Record of Decision
Update project information with current data
Prepare RFP for Minneapolis multimodal hub study
Brief legislative staff
Continue developing Standard Operating Procedures
Continue preparation of final design Request for
Proposals
Prepare RFP for Twin Cities rail network capacity
analysis
Northstar Commuter Rail Benefit-Cost Analysis Aug 29, 2002
A January 1999 report titled "Final Summary Report of the Twin Cities Metropolitan
Commuter Rail Feasibility Study, Phase I1" lists benefit-cost ratios computed for six
corridors that were under consideration for future commuter rail. The primary purpose
of computing these was to prioritize the corridors into an order for further analysis and,
possibly, implementation. Each corridor's computation included benefits for the value
of: time saved (or lost) by drivers and bus riders switching to rail, avoided vehicle
operating costs, avoided traffic accidents, avoided emissions and noise pollution, and
avoided construction of parking in downtown Minneapolis. The method of computing
the benefit-cost ratios used in this study did not include consideration of the remaining
capital value of the investment at the end of the analysis period.
The benefit-cost ratio in that January 1999 report for "Route B" running from
Minneapolis to Elk River was 0.26. This was often erroneously cited as the benefit-cost
ratio for the Northstar Commuter Rail.
The Northstar Commuter Rail as currently defined is far different than the January
1999 Minneapolis to Elk River "Route B." Northstar today extends from Minneapolis
to Rice. It offers 18 trains per day rather than the ten on "Route B." Additional analysis
and engineering has led to an operating plan that can equip today's 18 trains from only
four train sets (each train set is a locomotive, and four double-decked passenger cars)
plus spares. Route B's ten trains required five train sets (locomotive and three double-
decked passenger cars) plus spares. The longer corridor and additional daily
commuter trains are expected to draw 9,594 trips per day at opening rather than the
3,452 opening day trips cited for "Route B" in the 1999 study. The increase in trips
improves the benefits while the effective use of train sets helps manage operating and
maintenance costs.
The benefit-cost has now been computed for the current, more refined definition of the
Northstar Corridor Rail Project. It also incorporates the remaining capital value of the
project in 2020, the end of the analysis period. The result is a benefit-cost ratio of 0.84.
The benefit-cost ratio still does not include benefits of commuter rail that are difficult to
quantify. These include:
· Economic development in the corridor
· A strong, growing central business district in the state's major metropolitan
area
· Productive use of travel time by commuter rail riders
· Time savings by highway travelers after some highway users switch to
commuter rail
This should not be viewed as an endorsement by Mn/DOT of applying benefit-cost
ratios to decisions in transportation project implementation. Not all benefits and costs
can be quantified. Until they can, government is obligated to deliver projects and
services according to the public need, not based on benefit-cost analysis. If benefit-
cost analysis determines delivery of projects, then most libraries, schools, parks and
rural highways will not be funded.
- Analysis
The following information spreadsheets document the computation of the benefit-cost
ratio for Northstar Commuter Rail. The table below provides a quick summary of the
benefits, costs, benefit-cost ratio and net present value.
The next two pages show the elements that feed into the benefits. The third page
shows the benefits and costs, in 2001 dollars, as they occur in each year of the
analysis period. It also includes a table in which the remaining capital value at the
end of the analysis period is computed. The last page converts the benefits and
costs from each year into their net present value using a discount rate of 4.5%. This
is the data that is ultimately used to compute the benefit-cost ratio.
Benefit / Cost Indicator in 200'1
Benefit Summary (thousands) I 200~ I 2013~ 2020
]'ime Savings to Commuters I
- Auto to Rail Users -$83~ changes in equal increments from 2005 to 2020 $969
- Bus to Rail Users $2,192 changes in equal increments from 2005 to 2020 $2,099
- Highway Users $£ changes in equal increments from 2005 to 2020 $£
Time Savings Subtotal $1,358 changes in equal increments from 2005 to 2020 $3,06~
Vehicle Operating Cost Savings I $12,005{ changes in equal increments from 2005 to 2020 I
$13,64~
Vehicle Accident Cost Savings I $3,925{ changes in equal increments from 2005 to 2020 I
Pollution Cost Savings I
- Air Pollution $2,180 changes in equal increments from 2005 to 2020 $2,18¢
- Noise Pollution $0 changes in equal increments from 2005 to 2020 $¢
Pollution Subtotal $2,180 changes in equal increments from 2005 to 2020 $2,18¢
3,ommuter Rail Capital Costs $243.2(~
~,nnual Operating & Maintenance Costs $13.0." slowly increases from
year 2006 to 2020 $14.57
Capital Value at End of Analysis
Benefit-Cost Ratio 0.84
Net Present Value (millions) -$42.4z
12,000
NorthStar Commuter Coach
Passenger Trips
10,000
8,000
6,000
4,000
2,000
NorthStar Commuter Coach Weekly Ridership
3000
2500
2000
1500
1000
500
Comparison of Commuter Rail to Busways
May 24,2002
A busway is an excellent form of transit. It cannot, however, provide the level of service or
the cost-effective operations of commuter rail. Unfortunately, there are few corridors that
have the substantial rail infrastructure in place to be used for commuter rail like Northstar.
The Northwest Corridor can be effectively served by bus service that is a combination of
busway and road improvements. The Northwest Corridor provides an opportunity to
compare bus service to the excellent service available by commuter rail. The table below
illustrates how Northstar commuter rail provides a quicker trip than effective bus service like
that proposed for the Northwest Corridor. In addition, commuter rail is able to provide reliable
service in a broad range of weather conditions.
Service Characteristics---Northstar Commuter Rail and Northwest Corridor Bus
Distance Station Tdp Average
Transit Route (miles) Stops Duration Speed
Before (minutes) (miles/hour)
Mpls
Northstar Commuter Rail-'
Elk River to Downtown BNSF tracks 29.9 5 45.0 39.9
Minneapolis
Northwest Bus--Rogers to
1-94 24.3 0 48.9 29.8
Downtown Minneapolis
Northwest Bus Rogers to Cty 81, Hwy 100, 1-394 24.8 13 49.4 30.1
Downtown Minneapolis
Northwest Bus--Rogers to Cty 81, Broadway, 21.5 19 55.1 23.4
Downtown Minneapolis Washington
Northwest Bus--Rogers to Cty 81, Broadway, 21.2 19 52.6 24.2
Downtown Minneapolis Lyndale
Northwest Bus--Rogers to Cty 81, Broadway, 21.0 18 53.0 23.8
Downtown Minneapolis Freemont
Northwest Bus--Rogers to Cty 81, Broadway, 22.3 19 57.8 23.1
Downtown Minneapolis Penn
Northwest Bus--Rogers to Cty 81, Lowry, 22.2 19 56.6 23.5
Downtown Minneapolis Washington
Sources;
Northstar Corridor Preliminary Engineering, June 1, 2001
Northwest Corridor Busway Study, Scoping Report, February 1, 2002
Operating Costs
Bus service operating costs are higher than commuter rail operating costs. This is largely a
function of the number of workers required to operate the vehicles. Buses have one operator
to move a 50-seat vehicle. Northstar commuter rail will have one operator and one conductor
to move a 600-seat train. The operating cost per passenger mile reflects this. Nationally in
2000, bus systems generally operated at $0.50 to $0.60 per passenger mile. Northstar
commuter rail will operate at $0.27 per passenger mile in 2000 dollars.
Busway @ $3 Busway @ $7 Busway @
million per million per $11 million
Northstar mile mile per mile
Capital Cost 15243,253,300 $246,000,000 $574,000,000 $902,000,000
Annualized CostI $19,900,048 $24,105,143 $56,245,333 $88,385,523
Annual Operating Cost with
10,000 trips/day $13,698,157 $27,074,520 $27,074,520 $27,074,520
Total Annual Cost $33,598,205 $51,179,663 $83,319,853 $115,460,043
Annual Passenger Miles 49,226,400 49,226,400 49,226,400 49,226,400
Total Cost per Passenger Mile $0.68 $1.04 $1.69 $2.35
Annual Operating Cost with
8,000 trips/day $21,659,616 $21,659,616 $21,659,6161
Total Annual Cost $45,764,759 $77,904,949 $110,045,139
Annual Passenger Miles 39,381,120 39,381,120 39,381,12C
Total Cost per Passenger Mile $1.16 $1.98 $2.79
Annual Operating Cost with
5,000 trips/day $16,244,712 $16,244,712 $16,244,712
Total Annual Cost $40,349,855 $72,490,045 $104,630,235
Annual Passenger Miles 29,535,840 29,535,840 29,535,840
Total Cost per Passenger Mile $1.37 $2.45 $3.54
All figures are in 2001 dollars
According to the National Transit Database, buses cost $0.50 to $0.60 per passenger mile
to operate, on average, across the United States. Therefore $0.55 per mile was used here
Since a breakdown of busway costs was not available, they were split using Northstar as a
basis. Rail vehicle cost percentages were assigned to buses. Trackwork and signal cost
percentages were assigned to pavement. This formed the basis for annualizing the capital
The busway was assumed to be 82 miles long; the same length as Northstar.
Busway cost per passenger mile was estimated for ridership at 100%, 80%, and 60% of
estimated Northstar ridership.
Busway @ $3 Busway @ $7 Busway @
million per million per $11 million
Basis for Annualization Northstar mile mile per mile
RNV Costs $1,111,607 $1,124,159 $2,623,037 $4,121,915:
RAN Preparation $390,173 $394,579 $920,684 $1,446,788
Structures $5,401,655 $5,462,648 $12,746,179 $20,029,709
Trackwork, Signals $6,205,410 $0 $0 $0
Pavement, Parking Lots $470,160 $7,758,123 $18,102,286 $28,446,450
Rail Vehicles $6,321,043 $0 $0 $0
Buses $0 $9,365,634 $21,853,147 $34,340,660
Total I $19,900,0481 $24,105,1431 $56,245,3331 $88,385,523
Busway @ $3 Busway @ $7 Busway @
million per million per $11 million
!Total Costs Northstar mile mile per mile
R/WCosts $15,880,100 $16,059,410 $37,471,958 $58,884,505
RNVPreparation $5,573,900 $5,636,838 $13,152,622 $20,668,405
Structures $66,687,100 $67,440,099 $157,360,231 $247,280,362
l'rackwork, Signals $76,610,000
Pavement, Parking Lots $5,001,700 $82,533,220 $192,577,514 $302,621,808!
Rail Vehicles $73,500,500
Buses $74,330,433 $173,437,676 $272,544,919
Total J $243,253,300J $246,000,000J $574,000,000J $902,000,000