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State Representative
Phil Krinkie

365 State Office Building, 100 Constitution Ave., St. Paul, MN 55155 (651) 296- 2907

For Immediate ReleaseFor more information contact:
July 1, 2000Craig Stone, 612-648-7624
FEDERAL TRANSIT ADMINISTRATION CONFIRMS REP. KRINKIE'S CONCERN WITH CONFLICT-OF-INTEREST ON HIAWATHA LIGHT RAIL TRANSIT LINE
State Violation of Federal Bid Procedures on Light Rail Should Concern All Minnesotans

(St. Paul ) State Representative Philip Krinkie (R-Shoreview) called the Federal Transit Administration's finding that a conflict-of-interest existed with a $32 million light rail transit contract disturbing, but not surprising. "All Minnesotans should be concerned about the federal determination that fair bidding procedures were violated and that the largest contract yet awarded on the Hiawatha Light Rail Transit line must be canceled," said Krinkie.

On Thursday, June 29, 2000, the Metropolitan Council received a letter from the Federal Transit Administration (FTA) saying that because of conflict-of-interest problems with a $32 million Hiawatha Light Rail Transit project management contract, the work must be re-bid.

Earlier ethical questions surrounding the contract led Rep. Krinkie, Chairman of the MN House of Representative's State Government Finance Committee, to hold a hearing in March to examine the state's Light Rail Transit contracting procedures. When the FTA reviewed the testimony of the hearing they found it "disturbing." In their June 29, 2000, letter to the Metropolitan Council the FTA said Rep. Krinkie's March hearing confirmed that a conflict-of-interest existed.

Separate from the FTA investigation, the March committee testimony led Rep. Krinkie on April 6, 2000, to ask the Minnesota Department of Administration to cancel and rebid the contract in question. There was no response from the Department of Administration to Rep. Krinkie's April 6 request.

"Instead of being forced to do the right thing by the FTA, Met Council Chair Ted Mondale should have recognized the serious nature of the conflict and acted to rebid the contract when I requested so in April. Ted Mondale's denials and delay of action here to cancel and rebid the contract follow an ongoing pattern on this project," said Krinkie.

"While this latest determination of a conflict-of-interest is disturbing, given the history of the project I do not find it surprising," said Krinkie, who promised to remain a watchdog of the Hiawatha project.

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