HomeMy WebLinkAbout9.a. Consider notice to Minnesota Valley Transit Authority to withdraw from membership at the end of 2009AGENDA ITEM: Consider notice to Minnesota Valley
Transit Authority to withdraw from
membership at the end of 2009
AGENDA SECTION:
New Business
PREPARED BY: Dwight Johnson, City Administrator
AGENDA NO. 9.a.
ATTACHMENTS: (1) July 2008 Transit Plan CD (plus a
paper copy for new council members).
(2) MVTA joint powers agreement.
APPROVED BY:
OA)
RECOMMENDED ACTION: Consider a motion to withdraw from the Minnesota Valley
Transit Authority at the end of 2009 and direct the Mayor and City Administrator to send the
required notice of withdrawal.
4 ROSEMOUNT
CITY COUNCIL
City Council Regular Meeting February 3, 2009
EXECUTIVE SUMMARY
BACKGROUND
The City has been interested in improving the availability of transit for our residents for some time. Last
year, the City received a Transit Plan from WSB Associates, Inc. as part of the Comprehensive Plan
update. More recently, at the City Council's goal setting session of January 24, 2009 there was
considerable discussion about the City's progress in improving access to transit for our residents. As a
part of that discussion, the question came up as to whether or not continued membership in Minnesota
Valley Transit Authority (MVTA) is in the best interests of Rosemount and its residents. MVTA is a joint
powers organization of "opt out" communities that consists of Rosemount, Apple Valley, Burnsville,
Eagan and Savage. Prior Lake was an original member of MVTA, but later withdrew in the early 2000's.
In the 1980's, the Legislature authorized communities to opt out of Metro Transit (then known as the
Metropolitan Transit Commission), recapture most of the transit taxes being paid to Metro Transit, and
operate their own systems. It was noted at the January 24 meeting that a notice of withdrawal must be
implemented by February 15 to be effective for the following calendar year. Accordingly, staff was
directed to place this item on this agenda for consideration.
DISCUSSION
Finance. Transit in the metro area is currently supported by a metropolitan wide property tax and
a sales tax on motor vehicle sales (MVST), some federal funding, and the new County Transit
Improvement Board which is principally funded through a' /4 cent sales tax. Rosemount residents
currently pay more than $1,000,000 per year in property taxes plus MVST taxes. MVST fees are re-
distributed back to opt out communities, such as MVTA, according to a formula. In the case of
Rosemount, we are told that the percentage of our MVST taxes paid that is returned to MVTA is lower
than the other member cities. This is because cities were required by the legislature to choose between
levying their own transit property tax years ago or have the Met Council levy it for us. Rosemount was the
only MVTA city to not levy its own tax at that time. The Met Council kept a larger percentage of the tax it
levied on our behalf. Later, when MVST taxes took the place of much of the property tax levy for transit,
the percentage initially retained by the Met Council remained the same and became frozen in place. The
property taxes still paid to the Met Council do not go back to the opt out communities according to any
formula, but rather create a pool of funds for capital expenditures. Opt out communities must apply for
these capital funds and be approved for them in a competitive process. The federal funds available are for
capital expenses. These are also distributed through a competitive metro -wide application process.
Current Services provided directly to Rosemount include two buses that leave each morning and
return each evening from Minneapolis. Both buses travel to the 157 street station on Pilot Knob Road
before proceeding to Minneapolis or returning home to Rosemount. The two buses are currently using
the Community Center parking lot as a "park and ride" by agreement with the City. The City also has a
"flex route" bus that travels within an east -west corridor and delivers passengers to the Apple Valley
facilities. The route can flex to pick up passengers within 3/4 mile of its normal route. Also, Rosemount
residents drive to various area park and ride lots in Apple Valley and Eagan on their own. About 13% of
the ridership at the 157th street station is from Rosemount.
Prior Lake. The City of Prior Lake, a former member of MVTA, faced the same decision in the
early 2000's and chose to withdraw. They were able to retain their opt out status and have most of the
MVST funds paid by residents of the City returned to them for approved transit purposes. There are
currently restrictions on the creation of new opt out communities. It is not known whether or not
Rosemount could continue as an opt out on its own if we withdrew from MVTA. Staff is still
investigating this. After opting out, Prior Lake operated its own Laker Lines service and subsequently
formed a partnership with Shakopee. We are told by County and MVTA officials that their subsidy per
ride, a measure of efficiency, is higher than the average of other transit providers including MVTA.
Could a notice of withdrawal be rescinded? If Rosemount wishes to withdraw, a notice must
be sent by February 15 to be effective for 2010. After discussion with both the City Attorney and the
MVTA staff, any notice of withdrawal should be considered permanent and not able to be rescinded.
MVTA would rely upon our withdrawal notice in setting up its budget and allocating its resources for the
next year. Also, the Joint Powers Agreement forming the MVTA is really between Rosemount and the
other member cities. It would probably require agreement by all of the other individual city councils to
allow us to rescind our withdrawal and rejoin the MVTA. Presumably, one or more other city councils
could question our good intentions to be a good long term partner in MVTA if we had once already voted
to withdraw.
City Concerns. In a meeting on January 29 with Beverley Miller, Executive Director of the
MVTA, I was asked what Rosemount's principal short term needs are. Based on discussions I have heard
from the Mayor and Council so far, I responded that one major concern is that Rosemount currently has
no capital facilities, such as a Park and Ride, within the City limits, despite years of paying property taxes
for transit capital projects: Another area of concern is that the buses that recently commenced service in
Rosemount must travel south and west to 157 street and Pilot Knob Road before proceeding to
Minneapolis which adds to the time and inconvenience of that service. The Transit Plan of 2008
documents our longer term needs.
Possible MVTA Responses. The MVTA has been notified of this meeting and invited to attend
and address our concerns. We believe that they may be able to offer funds for the construction of a Park
and Ride facility just south of 145 street near City Hall if the City provides the land. The City currently
owns the land and has invested about $929,000 so far for the acquisition (including the acquisition and
demolition of several homes on it). The City has a preliminary estimate of $385,000 for the construction
of the parking area and a small shelter, but the final cost could vary from $300,000 to $500,000. Normally,
we are told, cities have to give up the land to the MVTA. We believe there have been exceptions in the
past, however, with the County helping to fund or reimburse land costs in at least one case. Since the land
is in our downtown area and since it may also help support other downtown activities and special events,
and because it may be questionable to offer an asset to the MVTA that is about twice the value of the
construction assistance we might receive back, it may be very important to enlist County assistance to
make this proposal work. Also, the construction of a park and ride lot is eligible for funding under the
CMAQ program (Congestion Management and Air Quality Improvement) and MVTA would encourage
us to apply for these funds first since they are concerned about their own funding uncertainties over the
next year.
2
With respect to the routing of the buses through the 157 street station, this appears to be a local
matter that the MVTA could address without any need to go to the Met Council. Obviously, they would
have to look at the overall impact on their system. While our goal is multiple express buses to downtown
Minneapolis, it may be reasonable in the short term to accept a stop at Eagan or some northern Apple
Valley location which would presumably have significantly less impact on our riders than going south to
the 157 street station. MVTA appears willing to discuss these items at their next meeting on February
11
Impact on Rosemountifwe withdraw If the Council proceeds with a notice of withdrawal at
this time, we would not expect any immediate impact on current services, since we would still be a
member of MVTA through the end of this year. Next year, we can assume that we would lose the current
flex route service along 145 and also the two buses to Minneapolis each clay that currently leave from our
Community Center. The Rosemount residents who currently drive themselves to an Apple Valley or
Eagan Park and Ride would be able to continue to use the service in that manner. Whether or not we
would be able to get the same or greater service from Metro Transit is completely unknown at this time.
As stated earlier, it is also unknown whether or not we could maintain opt out status and retain some
funds in Rosemount to provide our own service.
OPTIONS
The main options for the council to consider are:
1. Approve a motion to withdraw from the MVTA at the end of 2009 and direct the Mayor and City
Administrator to give the required notice.
2. Decide to not withdraw from the MVTA at this time and proceed to work with them throughout
2009 on the identified issues. The City would have another opportunity to consider its
membership in MVTA on or before February 15, 2010.
3. Postpone an immediate decision on withdrawing until after the MVTA's board meeting on
February 11 and schedule a special council meeting on February 12 to consider the results of the
MVTA meeting and any new information available at that time.
RECOMMENDATION
Since the MVTA will not be able to give an official response to our concerns until February 11t and since
there are still several unknowns about our alternatives for transit if we do withdraw, option 3 seems to be
the best option at this writing. A special council meeting could be held immediately after the Library
Grand Opening event which is scheduled from 4:30 p.m. to 6:30 p.m. on February 12
3
9ROSEMOUNT
June 23, 2005
Beverley Miller, Executive Director
MVTA
Burnsville Transit Station
100 East Hwy 13
Burnsville, Minnesota 55337
RE: MVTA Joint Powers Agreement
Dear Ms. Miller.
Enclosed is the signature page for the City of Rosemount's participation in the
revised MVTA Joint Powers Agreement approved by the City Council on June 7,
2005.
Please contact me if I can be of further help.
Sincerely,
cc: City Administrator Verbrugge
Mayor William Droste
Barbara M. Ross, Best Flanagan LLP
ADMINISTRATION
SPIRIT OF PRIDE AND PROGRESS
Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 -4997
651 -423 -4411 TDDITTY 651- 423 -6219 Fax 651- 423 -4424
www.c1.rosemount.mn.us
ESTABLISHING THE MINNESOTA VALLEY TRANSIT AUTHORITY
THIS AMENDED AND RESTATED MVTA JOINT POWERS AGREEMENT
"Agreement is by and among the Cities of Apple Valley, Burnsville, Eagan, Rosemount, and
Savage from hence forth to be known as the "Cities," municipal corporations organized under
the laws of the State of Minnesota This Agreement amends and replaces the MVTA Joint
Powers Agreement adopted in March 1993 and amended in April 1994 by the Cities of Apple
Valley, Burnsville, Eagan, Prior Lake, Rosemount and Savage. The Agreement is made pursuant
to the authority conferred upon the parties by Minnesota Statute 473.384, 473.388, and
471.59.
WHEREAS, the Cities have completed a Project Study under the Metropolitan Transit
Demonstration Program;
NOW, THEREFORE, BE IT RESOLVED, in consideration of the mutual covenants
contained herein, it is hereby agreed by and among the Cities:
1. Name. The Cities hereby create and establish the Minnesota Valley Transit
Authority.
2. Purpose. The purpose of this Agreement is to provide public transit service for
the Cities pursuant to Minnesota Statutes 473388.
3. Definitions.
(A) "AUTHORITY" means the organization created by this Agreement.
(B) "BOARD" means the Board of Commissioners of the Minnesota Valley
Transit Authority.
(C) "COUNCIL" means the governing body of a party to this Agreement.
(D) "METROPOLITAN COUNCIL" is the metropolitan council as
established by Minnesota Statutes 473.123.
(E) "PARTY" means any city which has entered into this Agreement.
(F) "TECHNICAL WORK GROUP" is a committee consisting of one staff
member of each party and each county which shall act as technical advisors to the Board.
4. Parties. The municipalities which are the parties to this Agreement are Apple
Valley, Burnsville. Eagan, Rosemount, and Savage (the City of Prior Lake has withdrawn).
Additional Parties may be added by the concurrence of all the existing parties. No change in
governmental boundaries, structure, organizational status or character shall affect the eligibility
of any party listed above to be represented on the Authority so long as such party continues to
exist as a separate political subdivision.
5. Board of Commissioners.
(A) The governing body of the Authority shall be its Board which will consist
of eight (8) voting commissioners. Each party shall appoint one commissioner, one
alternate commissioner. and a staff member to serve on the Technical Work Group. The
alternate commissioner and the Technical Work Group member may be the same person.
The commissioners from the cities of Burnsville, Eagan, and Apple Valley shall
additionally collectively appoint one commissioner and one alternate. This commissioner
and its alternate shall be appointed by the three commissioners aforementioned and shall
henceforth be known as the at large commissioner" and the at large alternate"
respectively, and will be appointed annually at the January meeting_ Metropolitan
Council members who represent the same cities as the MVTA, may serve as non -voting
ex officio members of the Board of Commissioners. The Dakota County Board of
Commissioners and the Scott County Board of Commissioners shall each appoint one
commissioner and one alternate commissioner.
(B) Commissioners shall be a member of the Council of each party or its
designee, or for commissioners appointed by Dakota and Scott Counties, be a member of
the Board of Commissioners of the county making the appointment. The at large
commissioner and alternate may or may not be an elected official as to be determined by
2
their alternates shall be a commissioner of the county making the appointment. The
terms of office of commissioners shall be determined by the party or the county making
the appointment.
(C) A commissioner may be removed by the party or county appointing the
commissioner with or without cause.
(D) Commissioners shall serve without compensation from the Authority.
(E) Five commissioners, which must include at least three (3) of the
commissioners appointed by the parties', shall constitute a quorum of the Board.
Attendance by a quorum of the Board shall be necessary for conducting a meeting of the
Board. The Board may take action at a meeting upon the affirmative vote of a majority
of the commissioners present at a meeting, which majority must include at least three (3)
of the commissioners appointed by the parties or such a commissioner's alternate in his
or her absence.
(F) The Board may adopt rules and regulations governing its meetings.
(G) As the first order of business at the January meeting of each year, the
Board shall elect a chair. a vice chair, a secretary, a treasurer, and such other officers as it
deems necessary to conduct its business and affairs. The current chair shall facilitate
these elections. In the event that the current chair is no longer his/her city's
representative to the MVTA, the Vice Chair shall facilitate the election process. In the
event that both the Vice Chair and Chair are no longer its city's representative to the
MVTA, the board shall decide on another officer or commissioner to preside over the
elections. The newly elected chair shall then preside over the remainder of the meeting,
and all meetings henceforth until a new chair is elected.
6. Powers and Duties of the Authority.
(A) General. The Authority has the powers and duties to establish a program
pursuant to Minnesota Statutes 473.384 and 473.388 to provide public transit service
to serve the geographic area of the parties with funding as provided in Minnesota Statutes
473.384, 473.388, 16A.88. and other applicable statutes, if any. The Authority shall
have all powers necessary to discharge its duties.
(B) The Authority may acquire, own, hold, use, improve, operate, maintain,
lease, exchange, transfer, sell, or otherwise dispose of equipment, property, or property
rights as deemed necessary to carry out the purposes of the Authority.
3
(C) The Authority may enter into such contracts to carry out the purposes of
the Authority.
(D) The Authority may establish bank accounts as the Board shall from time to
time determine.
(E) The Authority may employ an executive director whose duties shall be to
administer policies as established by the Authority. The Executive Director shall be an
employee of the Authority. The Authority shall hire and terminate personnel and provide
for compensation, insurance, and other terms and conditions that it deems necessary.
(F) The Authority may enter into a contract for management services.
(G) The Authority may sue or be sued.
(1-I) The Authority shall cause to be made an annual audit of the books and
accounts of the Authority and shall make and file the report to its Members at least once
each year.
(I) The Authority shall maintain books, reports, and records of its business
and affairs which shall be available for and open to inspection by the parties at all
reasonable times.
parties.
(J) The Authority may contract to purchase services from any one of the
7. Operating and Capital Costs, Budgets, and Financial Liability.
(A) The Authority shall have a fiscal year beginning January 1 and ending
December 31. On or before June 1 of each year. the Executive Director shall prepare an
estimated budget for the next fiscal year including an estimate of expenditures, operating
costs, capital costs and revenues and submit it to the Board for preliminary approval. The
Executive Director shall also submit the preliminary budget to the parties for approval
within thirty (30) days of the date of submittal. The budget shall be deemed approved by
a party unless the party disapproves the preliminary budget within said thirty (30) days.
The Board shall review and approve or disapprove the budget. The approved budget shall
be submitted to the Metropolitan Council or its successor, for approval. The budget may
be adjusted from time to time on the basis of actual costs incurred or changes in estimated
revenue or expenditures. In the event of an adjustment of the budget, there shall be
furnished to each party a computation of the adjustment.
(B) The annual financial contribution to the Authority of each party shall be
the total amount of assistance appropriated to each party plus the total amount. if any,
each party levies. pursuant to Minnesota Statutes 16A.88, 473.384 and 473.388. A
4
8. Insurance. The Authority shall purchase liability insurance coverage to cover the
activities of the Authority. The Authority shall provide all parties with copies of the
liability insurance coverage documents. The liability insurance coverage shall provide all
parties with sixty (60) days notice of cancellation, material change or termination of
coverage. In the event the liability insurance coverage is cancelled, or otherwise
becomes unavailable. the Authority shall procure similar liability insurance coverage
from another entity. The Authority shall purchase insurance in addition to liability
insurance in such amounts and on such terms as the Authority shall determine.
9. Duration of Agreement. This Agreement shall continue in force commencing on
January 1, 1991 and as amended in April, 1994 and April, 2002, and amended and
restated herein and thereafter from year to year, subject to withdrawal by a party or
termination by all parties. Withdrawal by any party shall be effected by serving written
notice upon the other parties no later than February 15 of the year at the end of which
such withdrawal is to be effective. Withdrawal from the Agreement by any party at the
end of the calendar year shall not affect the obligation of any party to perform the
Agreement for or during the period that the Agreement is in effect. Withdrawal of any
party or termination of the Agreement by all parties shall not terminate or limit any
liability, contingent, asserted or unasserted, of any party arising out of that party's
participation in the Agreement.
5
10. Distribution of Assets. In the event of withdrawal of any party from this
Agreement, the withdrawing party shall not be reimbursed, except that ownership of a
capital asset located within the city limits of the withdrawing party that was funded solely
with funds levied by the withdrawing party pursuant to Minn. Stat. 473.388, Subd. 7
shall be transferred to said party by the Authority. In the event of termination of this
Agreement by all parties, all of the assets vehich remain after payment of debts and
obligations that are not (i) required by terms of state statutes, federal statutes, or contracts
with the Metropolitan Council or federal agencies to be available for regional use for
transit purposes or to be transferred to the Metropolitan Council or federal agencies or (ii)
a capital asset located within the city limits of a party that was funded solely with funds
levied by said party pursuant to Minn. Stat. 473.388, Subd. 7, shall be distributed
among the municipalities who are parties to this Agreement immediately prior to its
termination, subject to the terrns and requirements of obligations issued by one or more
municipalities pursuant to Minn. Stat. Section 473.388, Subd. 7, in accordance with the
following formula: Each municipality shall receive that percentage of remaining assets
determined by dividing the total amount of which that municipality contributed to the
Authority by all the municipalities who are parties to this Agreement immediately prior
to its termination. Ownership of a capital asset located in the city limits of a party that
was funded solely with funds levied by said party pursuant to Minn. Stat. 473.388,
Subd. 7 shall be transferred to said party. The amount of the distribution to any party
pursuant to this Agreement shall be reduced by any amounts owed by the party to the
Authority.
6
and restated herein. All parties need not sign the same copy. The signed Agreement
shall be filed with the Executive Director, who shall notify all parties at the earliest Board
meeting of its effective date. Until this Agreement, as amended and restated, is signed by
all parties, the preceding Agreement shall stay intact and in effect.
IN WITNESS WHEREOF, the undersigned government units, by action of their
governing bodies, have caused this Agreement to be executed in accordance with the authority of
Minnesota Statutes 471.59.
Adopted this day of 200
CITY OF APPLE VALLEY
By:
Its:
ATTEST:
By
Its:
STATE OF MINNESOTA
)ss-
COUNTY OF DAKOTA
On this day of 200_, before me a Notary Public within and for said
County personally appeared and
to be personally known, who being each by me duly
sworn, each did say that they are respectively the Mayor and Clerk of the CITY OF APPLE
VALLEY, the municipality named in the foregoing instrument, and that the seal affixed to said
instrument was signed and sealed in behalf of said municipality by authority of its City Council,
and said Mayor and Clerk acknowledged said instrument to be the free act and deed of said
municipality.
7
(SEAL)
Adopted this day of 200
CITY OF BURNSVILLE
By:
Its:
ATTEST:
By:
Its:
STATE OF MINNESOTA
)ss.
COUNTY OF DAKOTA
NOTARY PUBLIC
On this day of 200_, before me a Notary Public within and for said
County personally appeared and
to be personally known, who being each by me duly
sworn, each did say that they are respectively the Mayor and Clerk of the CITY OF
BURNSVILLE, the municipality named in the foregoing instrument, and that the seal affixed to
said instrument was signed and sealed in behalf of said municipality by authority of its City
Council, and said Mayor and'Clerk acknowledged said instrument to be the free act and deed of
said municipality.
(SEAL)
8
NOTARY PUBLIC
CITY OF EAGAN
Bv:
Its:
ATTEST:
By
Its:
STATE OF MINNESOTA
COUNTY OF DAKOTA
(SEAL)
)ss.
On this day of 200, before me a Notary Public within and for said
County personally appeared and
to be personally known. who being each by me duly
sworn, each did say that they are respectively the Mayor and Clerk of the CITY OF EAGAN, the
municipality named in the foregoing instrument, and that the seal affixed to said instrument was
signed and sealed in behalf of said municipality by authority of its City Council, and said Mayor
and Clerk acknowledged said instrument to be the free act and deed of said municipality.
NOTARY PUBLIC
Adopted this j day of J&.*%1 200 S
CITY OF ROSEMOUNT
By:
Its: ,m.+4 y OP
ATTEST:
STATE OF MINNESOTA
)ss.
COUNTY OF DAKOTA
On this? day of J kt, e 200 5 before me a Notary Public within and for said
County personally appeared 1.3 i It :cu... M. 0%-ot te, and
LA. k 4 a- S. 3 45mv.tc h k to be personally known, who being each by me duly
sworn, each did say that they are respectively the Mayor and Clerk of the CITY OF
ROSEMOUNT, the municipality named in the foregoing instrument, and that the seal affixed to
said instrument was signed and sealed in behalf of said municipality by authority of its City
Council, and said Mayor and Clerk acknowledged said instrument to be the free act and deed of
said municipality.
(SE
Oullat=5„
I0
NOTARY P LIC
CITY OF SAVAGE
By:
Its:
ATTEST:
By:
Its:
STATE OF MINNESOTA
COUNTY OF SCOTT
(SEAL)
010252-950712 ►183281 -v2
)ss.
On this day of 200 before me a Notary Public within and for said
County personally appeared and
to be personally known, who being each by me duly
sworn, each did say that they are respectively the Mayor and Clerk of the CITY OF SAVAGE,
the municipality named in the foregoing instrument, and that the seal affixed to said instrument
was signed and sealed in behalf of said municipality by authority of its City Council, and said
Mayor and Clerk acknowledged said instrument to be the free act and deed of said municipality.
NOTARY PUBLIC
I
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58
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r L
V
Funding
Type
Federal
State GO
Bonds
Local Sales Tax
State
Authorized MC
Levy (Property
Tax/RTC)
Approving
Body
Technical
Advisory Board
(TAB)
Legislature
County Transit
Improvement
Board (CTIB)
Met Council
(MC)
Award
Process
Competitive
Solicitation
Earmarks
Competitive
Solicitation
Discretionary
Process
Eligible
Applicants
Transit related
agencies
Cities, Counties,
Met Council
Counties, Met
Council
Transit- related
Agencies
Award
Process
TAB awards,
MC pass-
through to
ultimate
recipients
Cities, Counties,
MC MC pass-
through to
ultimate
recipients
Counties, MC
MC pass-
through to
ultimate
recipients
MC MC
pass- through to
ultimate
recipients
Facility
Funding
Requesting
Agency
Land
Facility
Burnsville Transit Station
RTC
CMAQ
MVTA
Apple Valley Transit Station #1
CMAQ /City
CMAQ
MVTA
Apple Valley Transit Station #2
State
UPA, FTA,
CTIB, State,
DCRRA
MnDOT/MC
Eagan Transit Station
MnDOT ROW
CMAQ
MVTA
Blackhawk
MnDOT ROW
RTC
MVTA
Savage
$0
RTC
MVTA
Palomino
RTC
RTC
MVTA
Heart of the City
City
CMAQ
Burnsville
157th
CMAQ
CMAQ
Dakota County
Capital Funding Process
RTC Regional Transit Capital
Funding of Transit Facilities
(No MVTA Operating Funds)