History: Resolution 13-HCRRA-0062 (adopted November 5, 2013) authorized Agreement A131493 with the Metropolitan Council in the not to exceed amount of $18.4 million (40 percent) for Project Development activities associated with the Metro Blue Line Extension Light Rail Transit Project (BLRT), formerly known as the Bottineau LRT project.  The Project Development Phase was completed for $46 million, paid for with contributions of $27.6 million (60 percent) from the Counties Transit Improvement Board (CTIB), 17.4 million (38 percent) from the Hennepin County Regional Railroad Authority, and $1 million (2 percent) from the State of Minnesota.  With the completion of all milestones associated with the Project Development Phase, the BLRT Project Office submitted an Engineering application to the FTA in September 2016.

Resolution 16-HCRRA-0027 (adopted August 9, 2016) authorized Agreement A165878 with the Metropolitan Council in the not to exceed amount of $10.34 million (40 percent) for Project Development Continuance, allowing project partners to continue to advance project design during the Federal Transit Administration’s (FTA’s) consideration of the Engineering application (approximately September 2016 through March 2017). 

To advance the BLRT project through Engineering (roughly April 1, 2017 through April 30, 2018) the Metropolitan Council has requested a new agreement (A176897) in the not to exceed amount of $50.89 million (40 percent of the total estimated cost of $127.22 million).  Funds will be used for project engineering, contracted services, project office expenses, right of way acquisition, light rail vehicle acquisition, and construction activities.  CTIB is expected to fund the remaining $76.33 million (60 percent) required for the Engineering phase from April 1, 2017 through April 30, 2018.

According to the Metropolitan Council, the BLRT project anticipates award of its federal Full Funding Grant Agreement (FFGA) around April 2018.  Under FTA pre-award authority, costs associated with acquisition of right of way and light rail vehicles may be incurred prior to award of the FFGA.  In addition, construction activities may be initiated prior to the award of the FFGA through the use of FTA-approved Letters of No Prejudice (LONP).  During the BLRT Engineering phase, the Metropolitan Council has requested that $28.6 million under Agreement A176897 be allocated for pre-award authority and LONP related costs.  These costs will be subject to review and approval by the HCRRA Board on a quarterly basis.

At the end of the BLRT’s Project Development Continuance phase it is anticipated that total project expenditures will be roughly $71.9 million ($43.11 million from CTIB, $27.74 million from HCRRA, and $1 million from the State of Minnesota).  At the end of the Engineering Phase, it is anticipated that the total BLRT project expenditures will be roughly $199.12 million ($119.11 million from CTIB, $78.63 million from HCRRA, and $1 million from the State of Minnesota).

Support Metropolitan Council’s Request to CTIB

Consistent with CTIB requirements, all funding commitment requests include a resolution of support from each county in which the project is located.  Staff recommends supporting the Metropolitan Council’s funding commitment request to CTIB for the Engineering Phase, pre-award authority, and Letter of No Prejudice construction activities of the METRO Blue Line Extension Light Rail Transit Project.

Accept short-term funding from Hennepin County

Resolution 16-HCRRA-0026 (adopted August 9, 2016) committed HCRRA funding up to 10 percent (not to exceed $149.6 million) of the total BLRT capital costs, estimated to be $1.536 billion.  Resolution 16-HCRRA-0032 (adopted August 30, 2016) committed HCRRA funding up to 10 percent (not to exceed $185.8 million) of the total Green Line Extension Light Rail Transit Project capital costs, estimated to be $1.858 billion.

The Metropolitan Council anticipates receiving an FFGA for the Green Line Extension Light Rail Transit Project around the fall of 2017, and an FFGA for the Blue Line Extension Light Rail Transit Project in the spring of 2018.

Pre-FFGA expenditures associated with Agreement A176897 (BLRT) and Agreement A166179 (Green Line Extension Light Rail Transit) are expected to strain on-hand cash resources of the HCRRA in April/May 2017.  It is understood that Hennepin County will provide short-term financing for these projects through the issuance of commercial paper pursuant to existing authority delegated to the Director of the Office of Budget and Finance.  Short-term borrowing would be repaid if/when long-term debt is issued after receipt of each project’s respective FFGA or through other sources that may become available.

Local funds expended for the project prior to the award of the FFGA, including funds expended under pre-award authority and LONPs, are at risk.

Current Request: This request is for authorization to negotiate Cooperative Funding Agreement

A176897 with the Metropolitan Council for the Engineering Phase and advanced construction activities of the METRO Blue Line Extension Light Rail Transit Project for the period April 1, 2017 through April 30, 2018, with a not to exceed amount of $50.89 million; support the Metropolitan Council's METRO Blue Line Extension Engineering Phase funding commitment request to the CTIB; authorization to accept and disburse funds from Hennepin County as needed to continue advancement of the METRO Blue Line Extension and METRO Green Line Extension light rail transit projects in anticipation of the federal award of Full Funding Grant Agreements.

Impact/Outcomes: Authorization and agreements will assist continued advancement of light rail transit projects in anticipation of federal award of Full Funding Grant Agreements.

History: Resolution 13-HCRRA-0062 (adopted November 5, 2013) authorized Agreement A131493 with the Metropolitan Council in the not to exceed amount of $18.4 million (40 percent) for Project Development activities associated with the Metro Blue Line Extension Light Rail Transit Project (BLRT), formerly known as the Bottineau LRT project.  The Project Development Phase was completed for $46 million, paid for with contributions of $27.6 million (60 percent) from the Counties Transit Improvement Board (CTIB), 17.4 million (38 percent) from the Hennepin County Regional Railroad Authority, and $1 million (2 percent) from the State of Minnesota.  With the completion of all milestones associated with the Project Development Phase, the BLRT Project Office submitted an Engineering application to the FTA in September 2016.

Resolution 16-HCRRA-0027 (adopted August 9, 2016) authorized Agreement A165878 with the Metropolitan Council in the not to exceed amount of $10.34 million (40 percent) for Project Development Continuance, allowing project partners to continue to advance project design during the Federal Transit Administration’s (FTA’s) consideration of the Engineering application (approximately September 2016 through March 2017). 

To advance the BLRT project through Engineering (roughly April 1, 2017 through April 30, 2018) the Metropolitan Council has requested a new agreement (A176897) in the not to exceed amount of $50.89 million (40 percent of the total estimated cost of $127.22 million).  Funds will be used for project engineering, contracted services, project office expenses, right of way acquisition, light rail vehicle acquisition, and construction activities.  CTIB is expected to fund the remaining $76.33 million (60 percent) required for the Engineering phase from April 1, 2017 through April 30, 2018.

According to the Metropolitan Council, the BLRT project anticipates award of its federal Full Funding Grant Agreement (FFGA) around April 2018.  Under FTA pre-award authority, costs associated with acquisition of right of way and light rail vehicles may be incurred prior to award of the FFGA.  In addition, construction activities may be initiated prior to the award of the FFGA through the use of FTA-approved Letters of No Prejudice (LONP).  During the BLRT Engineering phase, the Metropolitan Council has requested that $28.6 million under Agreement A176897 be allocated for pre-award authority and LONP related costs.  These costs will be subject to review and approval by the HCRRA Board on a quarterly basis.

At the end of the BLRT’s Project Development Continuance phase it is anticipated that total project expenditures will be roughly $71.9 million ($43.11 million from CTIB, $27.74 million from HCRRA, and $1 million from the State of Minnesota).  At the end of the Engineering Phase, it is anticipated that the total BLRT project expenditures will be roughly $199.12 million ($119.11 million from CTIB, $78.63 million from HCRRA, and $1 million from the State of Minnesota).

Support Metropolitan Council’s Request to CTIB

Consistent with CTIB requirements, all funding commitment requests include a resolution of support from each county in which the project is located.  Staff recommends supporting the Metropolitan Council’s funding commitment request to CTIB for the Engineering Phase, pre-award authority, and Letter of No Prejudice construction activities of the METRO Blue Line Extension Light Rail Transit Project.

Accept short-term funding from Hennepin County

Resolution 16-HCRRA-0026 (adopted August 9, 2016) committed HCRRA funding up to 10 percent (not to exceed $149.6 million) of the total BLRT capital costs, estimated to be $1.536 billion.  Resolution 16-HCRRA-0032 (adopted August 30, 2016) committed HCRRA funding up to 10 percent (not to exceed $185.8 million) of the total Green Line Extension Light Rail Transit Project capital costs, estimated to be $1.858 billion.

The Metropolitan Council anticipates receiving an FFGA for the Green Line Extension Light Rail Transit Project around the fall of 2017, and an FFGA for the Blue Line Extension Light Rail Transit Project in the spring of 2018.

Pre-FFGA expenditures associated with Agreement A176897 (BLRT) and Agreement A166179 (Green Line Extension Light Rail Transit) are expected to strain on-hand cash resources of the HCRRA in April/May 2017.  It is understood that Hennepin County will provide short-term financing for these projects through the issuance of commercial paper pursuant to existing authority delegated to the Director of the Office of Budget and Finance.  Short-term borrowing would be repaid if/when long-term debt is issued after receipt of each project’s respective FFGA or through other sources that may become available.

Local funds expended for the project prior to the award of the FFGA, including funds expended under pre-award authority and LONPs, are at risk.

Current Request: This request is for authorization to negotiate Cooperative Funding Agreement

A176897 with the Metropolitan Council for the Engineering Phase and advanced construction activities of the METRO Blue Line Extension Light Rail Transit Project for the period April 1, 2017 through April 30, 2018, with a not to exceed amount of $50.89 million; support the Metropolitan Council's METRO Blue Line Extension Engineering Phase funding commitment request to the CTIB; authorization to accept and disburse funds from Hennepin County as needed to continue advancement of the METRO Blue Line Extension and METRO Green Line Extension light rail transit projects in anticipation of the federal award of Full Funding Grant Agreements.

Impact/Outcomes: Authorization and agreements will assist continued advancement of light rail transit projects in anticipation of federal award of Full Funding Grant Agreements.