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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 a) 0 O 0 D) c -0 u_ �1I I cI) 0 0 58 V 0 11 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)