History:

The Hennepin County Board of Commissioners established Penn Avenue Community Works project CP 1001560 in May 2012, to stimulate economic development, beautification, livability and job creation along the Penn Avenue North corridor in the City of Minneapolis.  Resolution 15-0145 approved a conceptual roadway, pedestrian, and greening layout for Penn Avenue North between Glenwood Avenue (CSAH 40) and 44th Avenue North (CSAH 152) and supported the advancement of planning and engineering for near-term improvements at prioritized intersections and corridor segments.

Resolution 16-0099R1 approved the Penn Avenue Community Works Implementation Framework as the foundation for investments in the corridor for the period 2016-2020.  It also approved negotiation of Agreement PW 01-67-16 with the Metropolitan Council for county cost participation for the design and construction engineering of eight intersections in conjunction with Metro Transit’s Bus Rapid Transit stops at intersections along Penn Avenue North in an amount not to exceed $1,846,000.  The resolution also established the Penn Avenue Transportation project (CP 2121100). In accordance with the approved conceptual layout and framework, the Penn Avenue Community Works project (CP 1001560) provides $7,000,000 in 2017 and 2018 for this work.

Included in the Penn Avenue Transportation Project Delivery project (CP 2121100) are transit enhancements designed to provide faster and improved bus service, commonly known BRT or C Line, and the reconstruction of Penn Avenue North between West Broadway Avenue and Lowry Avenue North.  The Metropolitan Council is finalizing the plans for the reconstruction of Penn Avenue North and BRT transit enhancements in partnership with the City of Minneapolis and the county with construction anticipated in 2018.

Current Request:  Proposed Amendment No. 1 to Agreement PW 01-67-16 with the Metropolitan Council increases county participation for design and construction engineering costs from $1,846,000 to an estimated $2,100,000. The Metropolitan Council will now provide design and construction engineering necessary for the reconstruction of Penn Avenue North between West Broadway Avenue and Lowry Avenue North in addition to the design and construction engineering necessary for construction of the BRT improvements.

Proposed Agreement PW 58-67-17 with the Metropolitan Council provides for county participation for construction costs in the reconstruction of Penn Avenue North between West Broadway Avenue and Lowry Avenue North in the City of Minneapolis and the construction of BRT improvements at eight intersections within the Penn Avenue North corridor, at an estimated county cost of $9,423,447.

Proposed Agreement PW 57-20-17 with the City of Minneapolis provides for city cost participation in the engineering and construction costs for the reconstruction of Penn Avenue North between West Broadway Avenue and Lowry Avenue North including the BRT improvements and the city’s proportionate share to bury overhead power lines within the Penn Avenue North corridor, all at an estimated receivable of $3,113,660.  In addition, the agreement provides for county payment to the city for costs it will incur to provide temporary water service during construction of the project and to supply the signal cabinets for the traffic control signal systems included in the project, at an estimated cost of $243,000.

Proposed Agreement PW 59-23-17 with the Minneapolis Park and Recreation Board provides for tree planting by the Park Board within the Penn Avenue North corridor upon construction completion of the roadway and BRT improvements, at an estimated county cost of $25,000. 

Lastly, it is requested that the County Administrator be authorized to enter into a contract with Xcel Energy for undergrounding of overhead power lines by Xcel Energy within the Penn Avenue North corridor in the vicinity of Plymouth Road and in the vicinity of West Broadway, at an estimated cost of $350,000 with the city and county each contributing $175,000.

To reflect the identified revenue sources and anticipated expenditures, staff recommends that the project budget for the Penn Avenue Transportation project (CP 2121100) be increased by $9,573,660 from $2,040,000 to $11,613,660 and shown in the 2017 – 2021 Capital Improvement Program (CIP) as follows:

The proposed project budget CP 2121100 as shown above includes the proposed transfer of $3,400,000 in general obligation bond sale proceeds and budget authority from the Penn Avenue Community Works project (CP 1001560) to the Penn Avenue Transportation project (CP 2121100).  It anticipates an Administrator’s Amendment to the 2018 CIP authorizing $3,600,000 in general obligation bond sale proceeds and budget authority to CP 2121100.  In addition, the proposed project budget recognizes the City of Minneapolis’ increased cost participation of $2,573,660 in the project, for a total commitment of $3,113,660. The cost participation for this project is in accordance with the county’s approved Cost Participation Policy (Resolution 12-0058).

In addition, a bituminous mill and overlay of the Penn Avenue North roadway will be performed by the Metropolitan Council’s construction contractor at an estimated cost of $400,000.  The bituminous mill and overlay portion of Metropolitan Council’s construction contract will financed with funds from the Transportation Operations Department operating budget and is not included in the capital project budget above.

Impact/Outcomes: Approval of these actions is recommended to facilitate completion of the county’s Penn Avenue North corridor project as well as the Metropolitan Council’s BRT improvements within the desired time frame.