4.3. SR 01-20-2004 - Laserfiche WebLink

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MEMORANDUM TO: FROM: DATE: RE: NCDA Board Members Commissioner Duane Grandy December 18, 2003 Northstar Project Update As you know, we have spent the last six months working to address key issues identified by the FTA, Governor Pawlenty and key legislators in regard to the Northstar project prior to the 2004 legislative session. Governor Pawlenty has indicated he will use the FTA's evaluation as a critical factor in his decision whether to recommend Northstar in his 2004 bonding bill. We have recently received new information on both the ridership projections and the analysis based on the rigorous new FTA standards from the transportation consultant, AECOM Consult Inc. I should tell you that AECOM is a nationally respected consulting firm on transit issues. The results of AECOM's analysis are summarized below. Let me assure you that NO formal decision on the configuration of the Northstar line will be made until board members have had an opportunity to digest this information and discuss it with each other. New FTA Evaluation The FTA has adopted a new method for evaluating transit projects seeking federal New Starts funding. The FTA is requiring new starts projects to be evaluated against a cost-' effectiveness index to determine the cost-effectiveness of a project. This index compares the annualized costs for construction and operation of proposed systems with the potential hours of commuting time saved each year by system users. The preliminary analysis submitted to the FTA shows that a modified (shorter) Northstar project is likely to meet the rigorous cost-effectiveness test. The Big Lake-to- Minneapolis portion of the proposal appears to meet the FTA's requirements, but the full extension of the line to St. Cloud/Rice apparently falls short of this standard. In addition, some stations on the route may need to be removed from the project to meet the FTA standard. This rigorous standard is being applied to transit projects throughout the United States, many of which are struggling to meet the FTA's stringent requirements. We are told there are other projects around the country that will not meet the new FTA cost- effectiveness index, regardless of how the project is configured, even though the project might have met earlier evaluations. Fortunately, a modified Northstar route appears to meet the requirement.