As the responsible authority for Southwest Light Rail Transit (Southwest LRT) construction, the Metropolitan Council obligated funds it did not have, did not develop a contingency plan if the funds did not materialize, and was not fully transparent about project costs and delays.
Minnesota’s framework for developing light rail projects has created a mismatch between the entities that fund the construction of transit projects and the entities that are responsible for constructing them. (p. 18)
Recommendation ► The Legislature should create a framework in which the government entity responsible for light rail transit construction also bears some financial responsibility for construction costs and any potential cost increases. (p. 20)The Metropolitan Council’s addition of substantial new or changed work after the civil construction bidding process was complete delayed the project schedule and increased costs. (p. 24)
Recommendation ► The Metropolitan Council should make greater efforts to avoid introducing major project changes once the competitive bidding process concludes. (p. 26)The Metropolitan Council did not hold its civil construction contractor accountable for repeated failures to provide an acceptable project schedule. (p. 27)
Recommendation ► On future capital construction projects, the Metropolitan Council should enforce the schedule requirements of the contract. (p. 29)The preconstruction engineering analyses performed by Metropolitan Council contractors did not predict the Kenilworth LRT tunnel construction challenges that seriously delayed the project. (p. 31)
Recommendation ► The Metropolitan Council should consider additional external reviews for high‑risk or high-cost project elements. (p. 33)The Metropolitan Council has not been fully transparent about the project’s increasing costs and delays. (p. 35)
Recommendation ► For future light rail construction projects, the Legislature should require the Metropolitan Council (or other responsible authority) to inform the Legislature if cost overruns or project delays reach certain thresholds. (p. 38)The Metropolitan Council has not adequately communicated to the public the uncertainty surrounding its estimates of future costs. (p. 39)
Recommendation ► In its public communications regarding projected cost increases, the Metropolitan Council should more clearly indicate the level of uncertainty surrounding its estimates of future costs. (p. 42)In a letter dated March 13, 2023, Metropolitan Council Chair Charles Zelle wrote that the report “minimizes the Metropolitan Council’s transparency and accountability to our funding partners….” He added that the Council “utilized appropriate contract provisions to…hold the construction contractor accountable to the schedule specifications” and “followed industry best practice” to develop a resequenced project schedule. Nonetheless, Chair Zelle agreed with OLA’s recommendation “to align funding responsibility with the government entity responsible for light rail transit construction.” He also stated that the “Met Council generally agrees with the recommendations regarding scheduling and delays” and has taken steps to address them on other transit projects. “As the regional planning entity and operator of the transit system,” Chair Zelle wrote, “the Met Council, as the report suggests, is a reasonable choice to manage the construction of light rail lines.”
