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<br />The LRT design consultants are working toward a 60% design package. This <br />entails careful coordination with the overhead catenary system designers, traffic <br />signal engineers, architects, electric and communication systems engineers, civil, <br />and track engineers. In addition, there is also strong cooperation between the <br />L TK team designing the LRT platform and Core Building and the KHA team <br />designing the commuter rail platform at the Inter-modal Station. <br /> <br />Work began on the technical specifications for the coaches and cab cars. The <br />specifications are being generated around a standard multi-level coach similar to <br />the Bombardier and/or Kawasaki vehicles. <br /> <br />Work has also begun onthe technical specifications for the procurement of diesel <br />locomotives. Locomotive remanufactures will present their products to NPO staff <br />and Metro Transit staff September 19 and 20. <br /> <br />VIII. BNSF Negotiations <br /> <br />On August 17, 2005, the Northstar negotiating team met in Chicago with BNSF <br />representatives to continue discussions on the construction and operating <br />agreements. Key issues discussed included: <br /> <br />1. The timeline for negotiations and its relationship to the funding process of FT A <br />and the Minnesota Legislature was reviewed. Northstar representatives stressed <br />the need for agreement by the end of this year. <br /> <br />2. BNSF representatives emphasized the importance of insurance and <br />indemnification provisions to the structure of the agreements, as well as their <br />expectations for coverage. <br /> <br />3. The parties discussed how to best address the tax issues in the contract. We <br />plan to commence the dialogue with BNSF tax attorneys in September. <br /> <br />The next negotiation session was set for Sept. 16, 2005 in Chicago, with a focus <br />on risk and indemnification issues. In preparation for the next meeting, risk <br />managers and attorneys from the Metro Council and Anoka County have met <br />several times with Cliff Greene and Mary Richardson to discuss issues of legal <br />authority and various approaches to insurance and indemnification. <br /> <br />In addition, the Project Management Team continued its work with the <br />negotiating attorneys to further develop proposed financial terms of the Operating <br />Agreement with BNSF, including such issues as compensation, performance <br />incentives and penalties, tax implications, and term of the agreement. <br /> <br />NPO staff are working with BNSF on the design of track and signal <br />improvements. Much of the week of September 12-16 was spent in field review <br />and meetings with BNSF and their design team to coordinate design of track <br />improvements and stations. <br /> <br />Monthly Report <br />September 15, 2005 <br /> <br />-14- <br /> <br />Northstar Corridor Rail Project <br />