Metropolitan Council: Southwest Light Rail Transit Construction

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Metropolitan Council: Southwest Light Rail Transit Construction

Performance Audit

Financial Audit Division

April 2025

Conclusions

The Metropolitan Council had instances of noncompliance with the requirements we tested and weaknesses in internal controls in each area we reviewed.

Lunda/C.S. McCrossan Joint Venture had instances of noncompliance with the requirements we tested in the areas of its use of disadvantaged business enterprises and physical security of the project site.¹

Findings and Recommendations

Finding 1

The Metropolitan Council did not apply a consistent variance threshold, or establish guidance that includes the factors and conditions to consider, when comparing its change order cost estimates against Lunda/C.S. McCrossan Joint Venture’s estimates. (p. 14)

Recommendation

Finding 2

The Metropolitan Council’s monitoring of disadvantaged business enterprises’ performance on the project did not comply with federal requirements or internal policy. (p. 20)

Recommendations

The Metropolitan Council should conduct and document the required monitoring visits.
The Metropolitan Council should include requirements for monitoring disadvantaged business enterprises’ activities in its internal policy, including how often and when such monitoring reviews should be performed.

Finding 3

Lunda/C.S. McCrossan Joint Venture did not accurately report its use of disadvantaged business enterprises on the project to the Metropolitan Council. In addition, the Metropolitan Council did not have adequate internal controls to detect the incorrect amounts. (p. 21)

Recommendations

Lunda/C.S. McCrossan Joint Venture should review its use of all disadvantaged business enterprises and ensure amounts are accurately reported in the contract management system.
The Metropolitan Council should strengthen internal controls over its monitoring of disadvantaged business enterprises’ activities in the contract management system to ensure amounts being reported are accurate.

Finding 4

The Metropolitan Council did not adequately monitor the disposal of contaminated soils. In addition, the Metropolitan Council overpaid Lunda/C.S. McCrossan Joint Venture for the disposal of contaminated soils. (p. 25)

Recommendations

The Metropolitan Council should strengthen monitoring over the disposal of contaminated soils to ensure that it authorizes the amounts disposed, verifies the accuracy of the amounts disposed, and makes accurate payments for the disposal.
The Metropolitan Council should reconcile, at least on a sample basis, the amounts disposed to date to ensure Lunda/C.S. McCrossan Joint Venture only billed for disposal of contaminated soils from Southwest Light Rail Transit project sites.
The Metropolitan Council should verify the contaminated soils payments to date to ensure the amounts it paid are accurate, and make adjustments as needed.

Finding 5

Lunda/C.S. McCrossan Joint Venture did not always have physical security restrictions and safeguards in place at laydown areas, as required by the contract.

In addition, the Metropolitan Council did not adequately monitor Lunda/C.S. McCrossan Joint Venture’s compliance with required physical security restrictions and safeguards. (p. 28)

Recommendations

Lunda/C.S. McCrossan Joint Venture should ensure that it implements and adheres to security requirements outlined in the contract.
The Metropolitan Council should strengthen its monitoring procedures to ensure Lunda/C.S. McCrossan Joint Venture complies with contract security requirements