| | | | | | | | Board Action Request 18-0499
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| | | | | | | | Item Description: Approval of Green Line Extension work under Letter of No Prejudice, pre-award authority work, new grant agreement |
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| | | | | | | | Resolution:
BE IT RESOLVED, that the Hennepin County Board of Commissioners, as required by current grant agreements, hereby approves the work on the Green Line Extension light rail transit project and funding amounts authorized under the Letter of No Prejudice from the Federal Transit Administration dated November 14, 2018 and on file with the clerk; and
BE IT FURTHER RESOLVED, that the Board provides its approval, as required under current grant agreements, for the Metropolitan Council to use up to $81,939,137 of County grant funds to make expenditures under relevant grant agreements, for the following activities and not-to-exceed amounts, to the extent allowable under federal Pre-Award Authority:
Pre-Award Activities
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Total Amount
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Hennepin County Share
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HCRRA Share
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Civil Construction Contract Activities: Long Lead Procurement and Public Utility Relocation
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$50,040,000
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$40,032,000
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$10,008,000
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Private Utility Relocation
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$7,500,000
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$6,000,000
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$1,500,000
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Construction Vehicle Lease
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$450,000
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$360,000
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$90,000
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Light Rail Vehicles
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$44,433,921
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$35,547,137
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$8,886,784
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Totals
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$102,423,921
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$81,939,137
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$20,484,784
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BE IT FURTHER RESOLVED, that all previously approved pre-award authorizations under existing contracts will remain in effect under the new agreement.
BE IT FURTHER RESOLVED, that the Hennepin County Board of Commissioners authorizes negotiation of Agreement PR00000689, Capital Grant Agreement for the LNTP Period for the Southwest Corridor Light Rail Transit (Green Line Extension) Project with the Metropolitan Council and the Hennepin County Regional Railroad Authority (HCRRA), with a grant activity period of December 1, 2018, to August 31, 2019, with a Maximum Grant Amount of $434,901,943, of which Hennepin County will contribute up to $347,921,554 (CP 1005876) and HCRRA will contribute up to $86,980,389 (CP 1000899); and
BE IT FURTHER RESOLVED, that the Board authorizes the Chair to execute Agreement PR00000689, after review and approval by the office of the County Attorney; and
BE IT FURTHER RESOLVED, that the Board authorizes the Controller to transfer and disburse funds as necessary to carry out the intent of this Resolution; and
BE IT FURTHER RESOLVED, that the Board approvals herein do not waive any obligations of the Metropolitan Council under any relevant grant agreement. |
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| | | | | | | | Background:
Resolution 17-0207, adopted on June 13, 2017, approved the assumption of certain unpaid funding commitments for the METRO Green Line project (CP 1005876) (the “Project”), the assumption of the 2017 Capital Grant Agreement (Counties Transit Improvement Board #01-2017-01/Met Council #17I007) (the “CTIB Grant Agreement”) with the Metropolitan Council (the “Council”) for the Project, and the imposition of the 0.5% sales and use tax and $20 motor vehicle excise tax that will be the primary source of funds for Hennepin County contributions to the Project. Through these and other actions, Hennepin County agreed to take responsibility for the remainder of the 30% share of project funding formerly committed by the Counties Transit Improvement Board and the remainder of the 10% share formerly anticipated from the State of Minnesota. Resolution 17-0436, adopted on October 24, 2017, and Resolution 18-0091, adopted on March 13, 2018, approved Amendments 2 and 3 to the CTIB Grant Agreement.
Resolution 18-0221, adopted on May 31, 2018, approved Amendment 4 to the CTIB Grant Agreement. This amendment increased the contract not to exceed amount, increased the amount of Hennepin County matching funds, and extended the grant activity period to August 31, 2018. It also incorporated certain conditions related to the management of project contingency funds, project decision making, and other additional considerations. One of those conditions prohibits the Council from awarding the civil construction contract for the Project unless the Federal Transit Administration (“FTA”) has approved a Letter of No Prejudice (“LONP”) for early construction and the Hennepin County and Hennepin County Regional Railroad Authority (“HCRRA”) Boards have approved the work authorized under the LONP and have approved grant agreements or amendments providing funds for such work. An LONP would allow the Council to begin construction activities prior to the execution of a federal funding agreement, with the potential for those construction expenditures to be treated as part of the local match required for future federal funding. The same conditions were also imposed by Resolution 18-0222, also adopted May 31, 2018, in which Hennepin County made a funding commitment to the Project.
Resolutions 18-0344 and 18-0439 subsequently adopted Amendments 5 and 6 to the CTIB Grant Agreement, extending the grant activity period, first to October 31, 2018, and then to January 31, 2019, with no increase in the contract not-to-exceed amount. Meanwhile, the Council continued to seek a LONP from the FTA. On November 14, 2018, the FTA provided the LONP. The Council now seeks the approvals from the Board that are prerequisites for the Council to award the civil construction contract, as required by Resolution 18-0222 and Amendment 4 to the CTIB Grant Agreement.
This Resolution gives those approvals described above.
First, the Resolution approves the Council to undertake the work authorized under the LONP, as required by the CTIB Grant Agreement.
Second, the Resolution approves the expenditure of grant funds pursuant to pre-award authority for construction-related activities. Under existing agreements and the new grant agreement to be authorized by this Board action (“New Grant Agreement”), encumbrance of funds for certain activities designated by the FTA as eligible for federal match under pre-award authority requires additional prior review and approval by this Board. The Metropolitan Council has requested such pre-award authority encumbrance for the items identified in the table included in the resolving clauses. This Board Action would give the required prior approval.
Third, this Board action would authorize County staff to negotiate with the Council the New Grant Agreement to provide funds for the Project. The New Grant Agreement would replace the amended CTIB Grant Agreement effective December 1, 2018, at which point it would be the sole funding source for all Project activities until such time as the FTA approves federal funding for the Project. These activities will include the civil construction work authorized under the LONP, any pre-award activities requiring and receiving prior approval by the County Board, and ongoing overhead expenses and other professional services related to the Project. Such professional services will include quality management services, wetland technical services, and building commissioning consulting services. All funds to be provided under the New Grant Agreement will be paid subject to the requirements of that agreement, including the requirement that the expenses be eligible for federal matching funds. The proposed grant agreement amount is consistent with the project budget that is included in the proposed 2019-2023 Capital Improvement Program.
Immediately following adoption of this BAR, the Council intends to meet to consider award of the civil construction contract. Award of that contract will initiate a period of up to 30 days during which the contractor and the Council will negotiate the specifics of a Limited Notice to Proceed, allowing the contractor will undertake the work authorized by the LONP. The Council would also be expected to initiate various other actions, including purchase of the Bass Lake Spur rail corridor from Canadian Pacific Railway, the execution of necessary agreements with BNSF Railway Company, and transfer to the Council of the HCRRA property in the Kenilworth Corridor and the Bass Lake Spur.
Current Request: Approval of the work authorized under the federal Letter of No Prejudice, approval to expend grant funds pursuant to pre-award authority, and authorization to negotiate and execute a grant agreement with the Council to provide funding for such work and related activities.
Impact/Outcomes: This Resolution will allow award of the civil construction contract for the METRO Green Line Extension, the beginning of construction activities, and the disbursement of funds in support of the Project. | |
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