HomeMy WebLinkAbout13.A.1. Proposed Metropolitan Council Transit Policies 1 3. R,
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CITY OF SHAKOPEE
Memorandum
TO: Honorable Mayor and City Council
Mark McNeill, City Administrator
FROM: R. Michael Leek, Community Development Director
SUBJECT: Proposed Metropolitan Council Transit Policies
MEETING DATE: August 5, 2010
INTRODUCTION:
City Council is asked to approve the submittal of the attached comments to the Metropolitan
Council regarding their proposed Procurement, Vehicle Fleet, and Regional Transit Operating
Revenue Allocation policies.
DISCUSSION:
For about the last 3 Y2 years or so representatives of the Suburban Transit Association (STA) have
been meeting with representatives of the Metropolitan Council to discuss, and try to arrive at
agreement, regarding the distribution of MVST for transit in the Region. Your Community
Development Director has been an active participant in all of these discussions.
The first couple of years were in a mediated process that Arlene McCarthy, Transportation Manager
for the Metropolitan Council termed "SIS" (i.e. Service Investment Workgroup). Near the end of
the SIS process, it appeared to STA members that agreement was near. At that point, Ms.
McCarthy announced that the changing level of MVST revenues in her view required an entirely
new approach. While STA members were not in agreement with that view, both elected and staff
representatives continued with a new set of meetings beginning in December of 2008.
Among the list of purposes for the next set of meetings was the improvement of the increasingly
tense relationship between the Metropolitan Council and STA providers. In addition, the process
was to balance the Metropolitan Council's need for regional overview and the suburban providers'
rights and authority to make autonomous decisions. In the view of your staff, these purposes have
largely been ignored in the process.
Metropolitan Council representatives used this series of meetings to propose the attached policies,
which include revenue distribution, but go beyond that to include very specific and lengthy
requirements related to bus procurement, vehicle maintenance and transit site ownership. As can
be seen, the draft policies and procedures are lengthy, in some cases convoluted, and in your staffs
review rise to the level of unjustified micromanagement of local decision - making authority.
Throughout the process, STA representatives asked if there were examples of problems that had
occurred that gave rise to the need for such policies. Metropolitan Council representatives did not
provide any, and instead pointed to an FTA audit comment that said that the Metropolitan Council,
HX020104ansit policies rpt_08052010.doc j
as regional MPO, should exercise more control. It is not clear to STA representatives or your staff
that the comment requires the proposed level of process and regulation.
ALTERNATIVES:
1. Offer and pass a motion authorizing the submittal of the attached comment letter as presented
on behalf of the City Council.
2. Offer and pass a motion authorizing the submittal of the attached comment letter with
revisions or additions on behalf of the City Council.
STAFF RECOMMENDATION:
Staff recommends alternative 1 or 2.
RELATIONSHIP TO CITY GOALS:
This item relates to City Goal D. Maintain, improve and create strong partnerships with other
public and private sector entities.
ACTION REQUESTED:
Offer and pass a motion authorizing the submittal of the attached comment letter as presented or
with additions or revisions on behalf of the City Council.
R. Michael Leek
Community Development Director
H: \CC\2010 \transit policies rpt_08052010.doc 2
August 5, 2010
Attention: Peter Bell, Chair
Metropolitan Council
390 North Robert Street
St. Paul, MN
RE: Draft Policies Related to Transit
Dear Chair Bell:
The Shakopee City Council has reviewed the draft policies related to transit that are titled Vehicle Fleet,
Procurement, Facilities Ownership and Regional Transit Operating Revenue. On behalf of the City
Council, we appreciate the opportunity to formally comment on these draft policies as they will have
significant impacts on residents of the City of Shakopee and outside the City who rely on the transit
services that Shakopee provides.
We understand that there is a need for regional coordination and oversight of transit services in the
Region, and that there is a need for policies that address these needs. Our concern is that the policies
that have been drafted are overreaching, and thus may have negative impacts on Shakopee's ability to
provide effective transit alternatives, in turn negatively impacting residents of the City, the County and
beyond.
The City of Shakopee has demonstrated its long -term commitment to providing quality and effective
transit services to its residents and others who may use the services. This commitment began in the
early 1980's, when the City became one of the first to choose to provide service directly. It has been
demonstrated further in the City's active partnership in the first transit study for Scott County in 2002;
its partnership in the development of the Unified Transit Management Plan (UTMP) for Scott County in
2005 (and updated in 2008); its partnership with the City of Prior Lake in the BlueXpress commuter
service, as well as Prior Lake and Scott County in the Southbridge Crossings Transit Station park and ride;
the City's $100,000 contribution in 2007 to facilitate the transfer of dial a ride services to Scott County
Transit; and the City's further partnership in the development of a second park and ride site (Eagle Creek
Transit Station, and successful JARC and CMAQ applications.
It is fair to say that these partnerships and the results that have been achieved as the result of them
have only been possible because 1) the City and its partners are close to and thus understand well the
0805 Met Council Transit Policies Letter 1
transit needs of their residents, 2) the City and its partners have been able to move quickly to
implement the recommendations of the UTMP, and 3) the City and its partners have been able to work
cooperatively and quickly through the Scott County Transit Review Board (TRB) and Transit Planning
Team (TPT) process (which has been chaired and led since its inception by Shakopee's community
development director) to achieve these results and changes.
Our general concern about the draft policies is that they do not strike a positive balance between the
need for regional coordination and oversight and local provider autonomy of the sort that has resulted
in the successes in recent years in Scott County. Our specific concerns with the policies include the
following, and we encourage you, the Transportation Committee and Metropolitan Council itself to
modify the draft policies in ways that will better strike that balance before they are adopted.
Procurement:
The policy requires that the Metropolitan Council review all procurement documents. The City and its
partners have experienced up to a one year delay in acquiring buses as the result of the Metropolitan
Council's response times. While the draft policy does provide for specific response times, we are not
confident that these can or will be met. Moreover, as long as federal requirements are met, it is not at
all clear to us that the Metropolitan Council should or needs to be lead on all procurements as the policy
lays out.
Vehicle Fleet:
• The City has a concern that the new policy increases the minimum life of the coaches that are
used in express service from 12 to 14 years. We believe that this has the potential to result in
significantly higher maintenance and repair costs in the last years, which in turn raises concerns
about the serviceability of these buses and their safety for our riders.
• In addition, the City is concerned that the standards for, and amounts to be used for various
equipment, on the various types of buses does not appear to have had the benefit of input from
suburban providers, and thus may not allow for flexibility where a specific application would
warrant it.
Regional Transit Operating Revenue Allocation:
• The development of this policy makes much of the level of suburban transit reserves against the
various reserves for services provided by the Metropolitan Council and Metro Transit. It
proposes an acceptable range of 25 % -35% of operating expenditures. This determination
ignores the reasoned basis by which each suburban provider has determined the appropriate
reserve level for itself.
0805 Met Council Transit Policies Letter 2
Shakopee's current reserve is above the 35% level. However, at the current rate of MVST
collections and distributions, it appears that the City will be required to use $600,000 or more in
both 2010 and 2011 to meet the operating expenses for its portion of the BlueXpress,
Southbridge park and ride, and Circulator. This means that by 2012, the City would not have
sufficient revenue to maintain current services, let alone meet the expanding transit needs and
demands of residents of the City and this part of the Region.
Parenthetically, we note that the Minnesota Revenue Department projects a fairly dramatic
increase in MVST receipts in the next two years, but this seems highly unlikely in the current
economic environment.
In addition, we don't believe that, at this point, the process for distributing what is termed
"regionally allocated MVST" contained in this policy and the related Regional Service
Improvement Policy (RSIP) adequately assure fairness and equity in the distribution of these
funds. The approach arrived at in the initial SIS process, whereby suburban transit providers
would have been assured that they would share in a pro rata basis in the growth in the
percentage of allocated MVST, would be a more equitable approach.
Sincerely,
John J. Schmitt, Mayor
On Behalf of the City Council of the City of Shakopee
0805 Met Council Transit Policies Letter 3
PROCEDURES FOR PROCUREMENTS
May 2010
INTRODUCTION
The Metropolitan Council periodically passes through Federal Transit Administration (FTA)
funds to replacement service providers established pursuant to Minnesota Statutes, section
473.388, commonly referred to as "Suburban Transit Providers." When FTA funds are passed
through to a Suburban Transit Provider, the Suburban Transit Provider the subgrantee is
primarily responsible for meeting all applicable federal requirement ted with the receipt
of federal funds including, without limitation, all federal procure requirements. These
responsibilities apply to all FTA - funded purchases including, o - -' itation, the procurement
of rolling stock, architectural and engineering services, profe tonal /te � v al services,
construction services, and goods. FTA's contracting guidance i found i ' Circular 4220. IF.
While the Suburban Transit Providers have the primary responsibility for meet e scribed
federal requirements, the Metropolitan Council as the initial recipient of the grant 4 s also has
a continuing responsibility to monitor subgrantee compliance with applicable FT requirements.
The Council already has procedures in place for the monitoring of subrecipient compliance with
FTA requirements. These procedures a ply to Suburban Transit Providers and are set out in
this document.
It is important to note that despite the Counc 's mo activities under these procedures, the
Suburban Transit Provider as a subgrantee of e "` un es to have the primary
responsibility for meeting all applicable federa - uirement r procurement. As such, the
Council strongly urges each Suburban Transit Pr ider to include relevant staff in development
of procurement documents including, in particula eg l staff that represent the Suburban Transit
Provider itself.
APPLIC OCEDURES
Sub ransit Provid 11 follow the Council's Project Procurement procedures below
when is rocurements - lving FTA funds.
There are othe" es of proc ments where the full Project Procurement procedures would not
apply. These are ureme -, (listed below) where Suburban Transit Providers do not solicit
offers but which in pliant with funding requirements. In these procurements, Suburban
Transit Providers will and the Subrecipient Contract Initiation Memo to the Project Manager
and will discuss prop procedures with the Project Manager.
Piggybacking
"Piggybacking" is an assignment to existing contract rights to purchase supplies,
equipment or services. Suburban Transit Providers must be able to determine that the
contract to be piggybacked meets funding requirements. Particular attention must be
given to the specific issues identified in the FTA Piggybacking Worksheet. A
piggybacking assignment can be led either jointly or by the Council.
Metropolitan Council Procedures for Procurement Page 1/6
Intergovernmental Procurement Agreements
Suburban Transit Providers can utilize available state and local intergovernmental
agreements for procurement of goods and services if all state requirements, required
clauses, and certifications are met.
Joint Procurement
Several agencies may consolidate their requirements into one procurement. Suburban
Transit Providers can participate in joint procurements if all federal requirements,
required clauses, laws and certifications are followed and are included in the resulting
joint solicitation and contract documents.
Sole Source
When the goods or services are available ly one ce, documentation of the
sole source purchase must include the justifica thorization to award the sole
source contract. A cost analysis must be performe determine if the price is fair and
reasonable.
MAXIMUM TIMELINES
The maximum timelines it turnaround in reviewing procurement documents are listed
below. The maximum es ap my to Council staff reviews and do not apply to actions
needed by others su TA.
Pre - Solicitation
Review Subrecipient ct Initi emo (SCIM), Independent Cost Estimate (ICE)
and draft solicitation doc t including specifications and sample contract within ten
(10) business days.
Pre - Contract Execution
Complete DBE compliance checks within ten (10) business days as a general rule.
Certain projects may require additional time in order to complete the DBE checks due to
a large number of proposers and /or the potential for reconsideration hearings.
Contract Administration
Review proposed contract changes within ten (10) business days.
Note that other procurement activities can proceed during these reviews, so that the overall
procurement time is not necessarily increased by the number of business days stated above. The
above times exclude non - Council actions by FTA, TAB or MnDOT and other parties which may
have other timeline requirements.
MONITORING PROCEDURES
Metropolitan Council Procedures for Procurement Page 2/6
Project Authorization
• The Council sends subrecipient the notification letter with monitoring requirements attached.
• A -133 form, Certifications and Assurances, environmental documentation, and other
application materials are retained in the Council's project file.
• Once all application materials are received, Council's Grants Manager submits
application to FTA.
• Federal notice of award received; Council's Grants Manager ' Notice of Grant Award to
the Council's Project Manager.
• Council and subrecipient execute an interagency grant agree ent to i ent the project.
Project Procurement
• Procurements by subrecipients of $50,000 or more require review and approv by Council's
Purchasing and Office of Diversity and Equal Opportunity (ODEO) prior to issuance for
review of compliance with FTA req ents.
• Subrecipient submits a Subrecipient on "' 'ation Memo (SCIM) and an
Independent Cost Estimate (ICE) to Cou ager, who forwards them to
Council's Grants, Purchasing, and Of 1 iversi Equal Opportunity (ODEO)
for review and approval.
• Subrecipient submits a draft solicitation d ument to the Council Project Manager, who
forwards to Council's Purchasing and OD review and approval.
• Solicitation is issued by subrecipient.
• Subr ""° mits all proposals or bids received to the Council Project Manager who
f rds t EO for the DBE compliance check.
• ies of exec u ntracts are sent to the Council Project Manager who forwards a
to Council P sing.
• Al act amend m (financial and non - financial) require prior review and approval
by Co Project M ger who will forward to Council Purchasing, and ODEO as
appropri
Post - Procurement
• Subrecipient submits four copies of each invoice packet to Council Project Manager, who
forwards copies to Council's Grants, ODEO, and Finance for review and approval.
• All subrecipient procurements are subject to Council audit and review to check for
compliance with FTA requirements.
• Council Project Manager has primary responsibility for monitoring subrecipient
compliance (Compliance Checklist for Mandatory FTA Procurement Standards attached)
Metropolitan Council Procedures for Procurement Page 3/6
• Council's Program Evaluation and Audits will conduct periodic random audit and review
of subrecipient procurements
In addition, the Council may have certain minimum requirements that must be included in
contracts involving Council -owned assets, e.g., buses must have minimum warranty coverage
and requirements related to indemnification /insurance/bonding.
The Council will offer periodic training sessions for Suburban Transit Providers on FTA
requirements, as well as assistance on an as- needed basis.
The cost of Council personnel time and materials may, at the Co , "s discretion, be deducted
from the amount of the grant award or funding awarded to the ; r-
The following compliance checklist is provided for the conveni ce of s A tees and contains
only an outline of federal procurement requirements. The compliance chec oes not purport
to contain all federal requirements to which a subgrantee may be subject as a s ' nt of 11
federal grant funds. The subgrantee remains responsible for conforming its proc ent
processes to all applicable federal requirements for federal funds passed through om the
Council, notwithstanding the Council's review above and the following compliance checklist.
Metropolitan Council Procedures for Procurement Page 4/6
Compliance Checklist
Mandatory FTA Procurement Standards
FTA Circular 4220.1F
No. Element
1) ritt St andar ds of Conduct
i2) Contract Administration System
13) Written Protest Procedures
'M Prequalification System
'S) System for Ensuring Most Efficient and Eco is Purchase
6) Procurement Policies and Procedures
17) Independent Cost Estimate
j8) &E Geographic Preference
E
9) reasonable Qualification Requirements
10) nnecessary Experience and Excessive Bonding
11) l Organizational Conflict of Interest
12) jArbitrar Action
j13) Brand Nam Restri
14) Geographic Pre f ces
115) Contract Peri erform Limitation
j16) Written Procurem lect' rocedures
;17) Solicitation Prequali
;18) war t _ ctors
119) Sound and Complete Agree
�0) o Splitting [Micro - purchase]
21) air and Reasonable Price Det ination [Micro- purchase]
12) icro- Purchase Davis Bacon
23) Price Quotations [Small Purchase]
24) Cle Accurate, and Complete Specification
225) dequate Competition - Two or More Competitors
26) Firm Fixed Price [Sealed Bid]
7) Selection on Price [Sealed Bid]
8) Discussions Unnecessary [Sealed Bid]
29) Advertis ed/Publicized
30) A dequate Solicitation
31) Sufficient Bid Time [Sealed Bid]
132) Bid Opening [Sealed Bid]
;33) esponsiveness [Sealed Bids
Metropolitan Council Procedures for Procurement Page 5/6
34) Lowest Price [Sealed Bid]
35) Rejecting Bids [Sealed Bid]
36) valuation [RFP]
'37) Price and Other Factors [RFP]
38) Sole Source if Other Award is Infeasible
39) Cost Analysis Required [Sole Source]
40) Evaluation of Options
41) Cost or Price Analysis
42} WrittenR of Procurement History
_43) Exercise of Options
44) Out of Scope Changes
45) Advance Payments
46) rogress Payments
47) Time and Materials Contracts
48} Cost Plus Percentage of Cost
X49} Liquidated Damages Provisions
50) Qualifications Exclude Price [A &E]
51) Serial Price Negotiations [A &E]
X52) id Security [Construction over $1
?53) Performance Security [Construction e 0]
54) Payment Security [Construction over 0,00
Metropolitan Council Procedures for Procurement Page 6/6
I S
vc
Metropolitan Council
VEHICLE FLEET ICY
MAY 2010-
s
Metropolitan Council
390 North Robert Street, St. Paul, Minnesota
General phone 651 602 -1000
Data Center 651 - 602 -1140
TTY 651 291 -0904
E-mail data. center @metc, state. mn, us
Web site www.metrocouncil.org
Publication no. 35 -09 -017 v = _
On request, this publication will be made available in alternative formats to people it disabilities.
Call the Metropolitan Council Data Center at 651 602 -1140 or TTY 651 291 -0904.
S
Metropolitan Council Members
Peter Bell Chair
Roger Scherer District 1
Tony Pistilli District 2
Robert McFarlin District 3
Craig Peterson District 4
Polly Bowles District 5
Peggy Leppik District 6
Annette Meeks District 7
Lynette Wittsack District 8
Natalie Haas Steffen District 9
Kris Sanda District 10
Georgeann trict 11
Sherry B er ct 12
Rick Di 13
Kirs ch Dist 4
Daniel r Distri 5
Wendy Distri 6
SELECTION AND
PURCHASE
Policy 1: Vehicle type should be determined and purchased according to service type and passenger loads.
Selection of Interlined and start -up services may provide exceptions.
Vehicle Type
Guidelines Vehicle type Passenger Service Type Approx. Minimum
Loads* GVW Vehicle Life
Commuter Coach Min: 30 Express wit. ne -way 14 years **
Max: 57 trip lengt reater than
15 mil duration
Brea an 30 tes
. ...
........ ... ...... . ...................... - . ........ . ...........................,.. ............................... .........._ ..........
...................................... ...............................
Articulated Diesel I Min: 30 Expre' • cal ; 12 years
Transit Bus Max: 58 i
(Express)
Max: 73
Urban Local
Articulated Hybrid Min: 44 Local 12 years
Transit Bus M ax: 73 I
- — ------- - - - - ------------ - — - - -- —
40' Hybrid Transit I Min: 29 Local 12 years
Bus 48;
........... ............................... .... ........................................... _ ............. .............................. .................................. ............................
40' Diesel Transit Express, local 112 years
Bus Max:
(expre
ax: ___ —
30' Transit Bus a um volume local; low > 26,000 12 years
26 volume e xpre ss
_
Medium -Duty Mi Suburban circulator 16,000- j 7 years
Transit Bus Max: services with limited 26,000 i
service window (e.g., peak
ly)
Heavier -Duty Min: 12 Limited stop or express > 14,500 1 5 years
Small Bus Max: 24 with 4 -6 weekday trips or
dial -a -ride services ...... ...............................
............ ............................... .... ...................... ............................... .............. ........ ......
Light -Duty Small Min: 2 -4 Limited stop or express < 14,500 ¢ 5 years and:
Bus 1 pass. /hr. with 4 -6 weekday trips or 200,000 (diese
I....... .
.._Max....6 .............. ............._dial - a - ride services........................._. ....... ..................................................
...i
*Peak loading pattern _
"The Council will conduct an APTA -led national peer review to inspect the six 2000 -year MCI
May 2010
.... ................................................................... .................. .-...............................--................................................................................................................................................................................................._... ...............................
coach buses in their 11 year and make a recommendation on the programmed 14 -year
coach bus life. The Metropolitan Council will operate the six 2000 -year MCI coach buses in
their 13 and 14 years.
Policy 2: All federally funded vehicles purchased under agreements not directly executed by the Council shall
Guiding be purchased in accordance with the Council's Procedures for Suburban Provider procurements.
Principles of New
Vehicle Vehicles shall be purchased in accordance with these guiding principles:
Purchases 1) Upon request by a suburban provider`, the Council include the provider in the development of
bus specifications and coordinate the procureme: maximize quantity and leverage optimal
pricing.
2) The Council will standardize the fleet to th test ex feasible.
3)The Council will consider life -cycle costing.
4)The Council will consider commercial availability.
5) Hybrid Buses and Alternative Fuel Buses are appro in any vehicle type if:
a complete life-cycle a com cost - benefit analysis suggests p y y ggests would represent a more effective
use of capital or operating dollars, or;
b) when broader public policy issues suggest a significantly higher than usual value of factors such
as emissions, noise profiles and support of advanced technologies compared to traditional
diesel buses.
Rationale:
The Council will create efficiencies, to the greatest extent possible and practical, by standardizing
vehicle options upon purchase.
Policy 3: Vehicles f whole or in part by the Council shall be owned by the Council. Fleet vehicle titles
Vehicle or Cert' " n shall be delivered to the Council within 15 days of vehicle acceptance.
Ownership
Ra e:
It ortant to esta a regional fleet comprehensive plan and effectively manage resources in a
dyna nd unpredict environment. ,,_il owne htp ,s #ies the!derai>��
�itrat�an's requr ;afar Sci isd tertinWr '' ?? s:f c x r�,i�s keY rat�n� r
�uac ers(ar d nC to b ' ' 3
MAINTENANCE,
If
REPAIRS,
INSPECTIONS
May 2010 2
Policy 4: Publicly- funded vehicles with a useful life of 12 years or more per Council policy will be eligible for
Mid -life Rehab planned mid -life rehabs to include seat upholstery replacements, r air of uneven flooring, other
Costs interior hardware such as grab rails, privacy shields and seat fra exterior paint, body work, lift
overhauls, articulated joints and bus frames. In the event of tal funding shortfall, funding
major component failures will be a higher priority than fund, ` id -life rehabs.
ee
May 2010 3
5: Fo.. „ .. .. a3i tl� ..tici�o�s,Etr�cxt�M „Gif�tbt.. '[ `i , the com ' nc'C!�m2 ° c:`
Polio n
Y Council will cover the �!� _ — — — — — ci} ur�cld buss retlY
Major cost of major component work, through the capital budget, that meet the following criteria: sT ta�t��,�xt a ci to�s
Component 1) Are not included in the manufacturer specified preventive maintenance items, and; €ale �'ii
cvrt}�Se�ts�c�r� to�Ih€ '
Failures 2) Have a cost of $5,000 or more (including the cost of labor) per unit. 3
t! „
Major component work will be completed on an as- needed basis. `BAs needed” means that engines
and transmissions and other items not included in the manufacturer's preventive maintenance
schedule will be replaced or rehabbed on a preemptiv asis based on technical criteria that indicates
component failure is imminent. The Council's fleet ger will consider verifiable and substantive
technical information for individual vehicles and, on such information, may authorize
replacement of major components prior to fail <na rmation to be considered in the
im
decision making process includes but is not li
1. Age of the vehicle.
2. Vehicles of the same make, model and year.
3. Expected remaining life on the engine or trans
4. History of that particular vehicle engine or tran5. Type of engine or transmission and t he typical t particular model.
6. Type of service the vehicle is used for.
7. Results of oil analysi.
8. Results of compr e
9. Oil consumpti nd line.
10.Antifreeze in the
E�'.. ai
11.Fuel consumption t
Rationale:
An April 2007 study conduct the FTA entitled Useful Life of Transit Buses and Vans" states that
only very large cities with "sev ervice conduct planned mid -life overhauls. The majority of
transit agencies across the U.S. i est in major repairs on an as- needed basis. Replacing items on an
as- needed basis assures that funding is utilized as efficiently as possible.
May 2010 4
Policy 6: The Council and Lessees of Council -owned vehicles agree to comply with the manufacturer's
Preventative preventive maintenance plan (or better) and will provide a written statement to the Council attesting
Maintenance to this agreement. Any deviation that reduces the level of maintenance from that prescribed by the
Schedule manufacturer must be approved in advance and in writing by the Council.
Rationale: The Council is obligated, as owner of the regional fleet vehicles, to ensure that these
assets are being maintained and utilized in a manner that will maximize the vehicle life in an effective
manner.
Policy 7: The will conduct quality assurance inspecti ensure compliance with prescribed
Quality preventative maintenance schedules.
Assurance 1. The Council will conduct, at its sole discreti ehicle in tions to include fluid samples.
Inspections 2. All inspections will be documented and retain fil he Council.
3. Test results will be shared with the provider.
4. Failure to comply with the rnanufa er specified tive maintenance schedule will result in
the Council's right to deny paym ° s related t ine, transmission or lift failures.
Rationale:
The Council is obligated to ensure that assets m intained and utilized in a manner most
advantageous to the residents of the m po ar
VEHICLE
TRANSFER,
REPLACEMENT
AND DISPOSAL
Policy 8: The Coun es the right to redeploy regional fleet vehicles to another provider within the
Vehicle Transfer region.
to Another
Provider W - e transferor i ject to DOT vehicle inspections, vehicles transferred from that provider to
an rovider must s a Department of Transportation (DOT) inspection prior to the transfer of
such e. The trans r shall arrange for the inspection and pay any relevant costs. Any
deficien ntified by DOT must be fully remedied at the expense of the transferor. The
i X
receiving er re s the right to conduct an inspection prior to transfer and any significant
defects ident d that inspection shall be repaired by the transferor.
When the vehicle transferring from a provider that is exempt from DOT inspections, the receiving
provider shall inspect the buses before transfer takes place, and any significant defects identified
during that inspection shall be repaired by the transferor. The receiving provider must be given the
5
May 2010
opportunity to inspect the vehicle over a lift or maintenance pit provided by the transferring provider
upon request.
The transferring provider must provide the receiving provider w' copy of maintenance records of
the bus being transferred.
Rationale:
Used buses must often be transferred to successor con rs a beginning of a new contract
term. Successor providers are entitled to receive vehicle hat hav properly maintained and
are in good working condition. All providers must be held accountable he proper maintenance of
vehicles up to the date of transfer.
Policy 9: Vehicles that have met or exceeded their useful life, per the rules and guic s established by the
Vehicle Disposal Federal Transit Administration, the State Department of Administration and ouncil policy shall be
eligible for disposal. Vehicles where the cost of repairs as determined by the Council Fleet Manager
exceeds the remaining net book value will be considered eligible for disposal.
1. For unplanned removals, suburb rivate providers must receive prior written or electronic
approval by the Council's Manag ervices or designee in the Metropolitan Transportation
Services Department before remo th from revenue service. Prior written or
electronic approval or denial must eceive 4 calendar days of the request or it can be
accepted as tacit approval.
2. Buses shall be sold either from the pr site or shall be delivered to a site designated by the
Council.
3. All ancillary equipment will be removed a provider to include, but not limited to, fare
collection equipment, AVL /APC equipmen d bike racks unless otherwise approved in writing by
the Council.
4. The prov' shall deliver the vehicle to the designated site under its own power unless authorized
in a Council.
5. icle grap at are established by the Council (for example, regional striping and Council
s) shall be re d or covered with matching paint at the expense of the provider.
6. hicle graphics were added by the provider shall be removed from the vehicle at the
ex of the provi unless authorized in advance by the Council.
7. Any p ds obtai through the disposal of a vehicle shall be transferred to the Council.
8. Proceed in the Council for the disposal of assets shall be deposited back to the capital
fund.
Rationale:
All publicly funded assets shall be disposed of in a fashion that allows any interested party to have
May 2010 6
equal access to the retired asset. Logos, striping and other agency identifiers must be removed upon
removal from service for security - related reasons and to protect the public image of all regional transit
p roviders.
COUNCIL
FUNDING
Policy 10: The Council will fund a reasonable number of non - revenue vehicles for use by Metro Transit,
Non - revenue Metropolitan Transportation Services and the suburb roviders.
Vehicles
Policy 11: The Council will provide a maximum amount off g per vehicle based on the price of the vehicle
Maximum with "standardized" options (see Policy 17) pl o to allo r modest upgrades to be determined
Council Funding by each provider. Any vehicle procurement sh ude ing proposal for the standard vehicle in
per Vehicle Type addition to a vehicle priced with the desired optio
For regional fleet vehicles, the average cost of all an items, excluding fare collection capital, will
be included in the maximum Council funding. All costs i ess of the maximum Council funding will
be the responsibility of the provider.
Rationale:
The Council should provide for a consistent and equitable allocation of available funds and
equipment /vehicles to a - ngers regardless of provider. Decisions made at the local level that
a
inflate capital costs s a pact all other regional providers.'
See also:
Policy 18 on fundin ible ve le equipment and ancillary items.
VEHICLE
IDENTITY
Policy 12: Bus numbers should be Nassign n ew vehicles based on the following schema:
Assignment of
Bus Numbers Provider Name Assigned Range of Numbers
Metro Transit 0 -3999, 7100 -9999
Minnesota Valle Transit Authority 4000 -4999
.... South West Transit :5000 -5999
.............................................._ ...__.................................... ....:.......................... .... .. .
Metro Mobility 6100 -6599 OR 61000 -63199 OR 64100-
64199 _
Scott County 64000 -64099
Other Regional Providers: Big Buses 6000 -6099 OR 60000 -60999
May 2010 7
-Plymouth Metro Link Small Buses 6600 -6699 OR 64200 -66999
.Maple Grove
-Shakopee
-Prior Lake
.MTS contracts
Policy 13: All vehicles funded by the Council shall be outfitted with the following graphics:
Vehicle Graphics 1. Small buses operated by dial -a -ride providers, shall display exterior graphics in compliance with
the Council's adopted plan. The dial -a -ride public operator may include graphics that identify the
local service in a manner that does not cover or interfere with the Council's graphics package.
2. Small buses that are operated by a private contractor under direct contract with the Council in a
dial -a -ride mode shall display exterior graphics in compliance with the Council's adopted plan. The
operator may include up to two private company logos incorporated with their DOT operator
number that are no larger than 1 " x 12" each and shall be placed in an area that does not
interfere with the Council's grap age. A county or counties that administer Transit Link
dial -a -ride service may include g dentify the local service (for example, "Edina Dial -a-
Ride ") in a manner that does not r or with the Council's graphics package.
3. Large buses, operated by a private ra ct contract with the Council, shall display
outward graphics in compliance with cil's a ed plan. The operator may include up to
two company logos that are no larger 6" x 16" each and shall be placed in an area that
does not interfere with the Council's gr cs package.
4. US DOT numbers must be displayed per OT requirements.
5. Buses operated directly by the Council shal comply with the Council approved graphics package.
6. Buses by suburban providers are not subject to this policy, with the exception of
reg'c� s.
Ra e:
Al cles that are lin to the regional transit system and that are funded by the Council should
be re identifiable a ch by the general public. The Council's objective is to create a seamless
service consistent i ge to its riders.
See also:
Policy 10, dis s numbers 6 and 7.
May 2010 g
FLEET MANAGEMENT
Policy 14a: Regular -route and general public dial -a -ride transit se contracts should utilize the
Spare Vehicle Ratio following service to spare ratio:
Number of Vehicles riate
Needed to Deliver \ u of Spare
S ervice L by Vehicles _ *Ve_hic
1 -4
........ .... ................. ................ _ . .. ...................... ............ ....................
5 -9 2
10 -15 3 �!
16 -20 4
................... ............... ....................... .... ............ .- - .... _ . ......................... _ .. _ ....... .. . . . .
21 -25 5
-30 6
..................... 7 .... ...............................
x
-4 8
49 . _9
A ctive revenue fleets of 50 bus ore cannot exceed a 20% spare factor, per FTA.
*See Policy 2: Selection of Vehi ype.
Policy 14b: As a general guideline, a maximu one scheduled standby vehicle should be provided for
Scheduled Standby every 50 peak buses.
Vehicles
a Strategically deployed scheduled standby vehicles maintain service quality and
d are included in peak revenue service fleet counts. Because the number of
schedule dby vehicles directly impacts both operating and capital costs, a guideline for
scheduled s b to peak bus counts is provided.
Policy 14c: Vehicles to d r service improvements for the Minnesota State Fair are not to be counted
State Fair Fleet s part of the et to meet the annual maximum service requirement (vehicles operated in
ual maxi service — VOMS)
Rat 1. a Minnesota State Fair is an atypical orspecial event per FTA guidance.
Policy 14d: Opera nds for a minimum of three years are to be identified for any expansion fleet
Expansion buses prior to ibitiating the procurement. A fleet management plan that identifies peak vehicle
requirements and calculates spare ratio factor with the expansion vehicles must be provided
with an expansion fleet request.
May 2010 9
zx
Rationale: Most regional vehicles have a programmed life of 12 years or more.
Identification of operating funds justifies the capital investment. The FTA requires a fleet
management plan with grant requests for vehicle procurement.
Policy 15: Metro Mobility's fleet size will be determined according to the maximum number of routes
Metro Mobility Fleet operated during the peak periods of March and October. Analysis will be conducted using
Size March and October data to determine the maximum number of routes in operation during
each period. The fleet size for each contract shall b
p e equal to the maximum number of
routes at any time during those periods 10 -15% spare factor.
Rationale:
It is the Council's responsibility to p e resour to its Metro Mobility contractors so that
all requested trips can be delivered b R ici and effectively.
VEHICLE EQUIPMENT
AND ANCILLARY ITEMS
Policy 16: The Council will identify needs and purchase fare ction equipment for all regional
Fare Collection providers using a capital account specifically design A l for all regional fleet fare equipment
Equipment needs. The capital budget for fare collection system purchases will include the cost of
installation la
Rationale-
The far ection sy is a regional responsibility and should be coordinated and funded
by the Co
Policy 17:
Standard Bus Regional transit ers (suburban transit providers, MTS and Metro Transit) will review
Configuration and determine sta bus costs and upgraded technology at least every two years.
The Council will consid the following items, by vehicle type, as included in the base
vehicle price:
Vehicle Type Standard Options
Coach Bus _ Exh _A
Articulated Transit Bus Ex hibit B
Hybrid Transit Bus E xhibit C
May 2010 10
40' Transit Bus
........ - ... _ .............................. _.. _ ........................... . ...... _......................
30 Transit Bus Exhibit D
Medium -Duty Tran Sus
Heavier -Duty Small Bus Exhibit E
(GVW : > 14,500)
Light -Duty Small Bus Exhibit
(GVW: :_14,500)
The Council will fund buses built to the Council's standard b nfigurations (Exhibits A
through F). Modifications to these configurations may be appr by the Metropolitan
Council's Regional Administrator.
May 2010 11
Policy 18: The Council will fund ancillary items limited to those listed in the tables below and up to the
Ancillary Items maximum amount shown. The table below shows January 2009 pricing. Adjustments to
these amounts for equipment purchases independent of ional equipment purchased by
the Council shall be made according the change in th ducer Price Indexes as listed
below, as published by the U.S. Department of Lab urea of Labor Statistics Series ID:
Security System Hardware- PCU334310334310
Radio Hardware - PCU3342203342201
Bike Racks - PCU331210331210P
The maximum Council contribution for regional fare collectio ipment, AVL and APC
equipment will be adjusted to reflect actual purchase prices.
Expansion Buses: Included Ancillary Items
*Small Buses with
Vehicle/ 30'/ rticulated/ *Small Buses Used No Regional Fare
Service Type C ach for Fixed Routes Collection Equip.
Covered Items • Se 'ty •Security System •Radio system AND
AN tallati ND installation installation
• Radi ste o system • Vehicle graphics
AND i n 4 A D installation AND installation
• Fare sy "
•Fare system •Security System
hardware hardware AND installation
installatio installation -Spare parts/
• Vehicle gra cs • Vehicle graphics diagnostic
AND installation AND installation equipment
Bike racks AND ■ Bike racks AND
installation installation
• Regional AVL • Regional AVL
equipment AND equipment AND
installation installation
• Spare parts / •Spare parts /
diagnostic diagnostic s
equipment equipment
ouncil
C ribution _ 35 500 *35 $10
................................. ............................... ........................................................................................................................ ...............................
Optional Item • APC equipment • APC equipment AVL/MDC
May 2010 12
................................ ............................... ............. ta ............. a ......................... ..................... ..... .
in ..... ....
AND installation AND slltion Equipment AND
Max. Council installation
Contribution $5,000 1$5,000 $5,000
Policy 19: Re p lac e m ent Buses: Included An Costs
Ancillary Items *Small Buses with No
(continued) Vehicle/ 30'140' /Articulated/ *Small Buses Used Regional Fare Collection
Service Type Commuter Coach fo ed Routes Equip. /DAR Service
Covered Items ■ Security System curity System • Radio system
AND installation nstallati n installation
■ Radio system • Radio m ■ Vehicle graphics AND
AND installation nst on installation
■Fare system stem • Security System
2
hardware and are and installation
installation ins ion ■ Spare parts I
-Vehicle graphics Vehi phics diagnostic equipment
AND installation AND in tion
• Bike racks AND ■ Bike rack
installation installation
egional AVL • Regional AVL
uipment AND installation
allation • Spare parts
■ re parts / diagnostic
equipment
q
Max. Council
C ontributi on 50 6 ,000 _ $1,50 _
y Optional Item equipment • APC equipment •AVL/MDC equipment
A installation installation installation
Max. Council
Contribution $5,000 $500 $500
* Small buses, with replacement cycles of 5 or 7 years, are assumed to use existing ancillary equipment for two
consecutive vehicle cycles. The cost covered shall use the Expansion Bus figures for every other replacement cycle to
assure that ancillary equipment is used for at least 10 years before replacement.
May 2010 13 '
Standard Vehicle Configurations
Exhibit A:
45' Coach Bus
1. Engine Size /Type
The engine shall be designed to operate for not less than 500,000 miles ut m ilure or deterioration. The engine
shall be designated as "Heavy Duty" for use in a mass transit application. he engine be sized such that performance
and fuel economy are maximized and operating costs and capital costs are minimized.
2. Transmission,'
The transmission shall be multiple -speed automatic shift with torque converter, retarder and electronic controls with a
heavy -duty transit application. Gross input power, gross input torque and rated input speed shall be compatible with the
engine. The diesel transmission shall be designed to op ate for not less than 500,000 miles on the design operating profile
without replacement or major service.
3. Engine block heater
Special equipment or procedures may be employed to st he a exposed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operation. A I ther ine- heating devices shall be of the type
recommended by the engine manufacturer and approved b rocuring agency.
4. Cooling System
The engine shall be cooled by a water - based, pressure -type co g system that does not permit boiling or coolant loss
during normal vehicle operation. The system shall be of sufficient size to maintain all engine and transmission fluids and
intake air at a safe, continuo erature. The cooling system will maintain a safe and operable temperature range
during the most severe o ible and in accordance with the engine and transmission manufacturers' cooling-
system requirements. T oling uld engage when any fluid is above safe operating temperature.
5. Brakes
Service brakes shall be olled and ac ed by a compressed air system, and shall meet FMVSS 121 requirements. A
microprocessor controlle system s be provided. The entire brake system, including friction material shall have a
minimum overhaul or replac t life ,000 miles with a brake retarder on operating profile. Brakes shall be self
adjusting throughout this perio h arings and seals shall be replaceable and should not leak or weep lubricant for at
least 100,000 miles.
May 2010 14
6. Suspension
The suspension system shall permit a minimum wheel travel of 3 inches jounce upw d travel of a wheel when the bus hits
a bump. Suspensions shall incorporate appropriate devices for automatic height co , so that regardless of load the bus
height does not deviate more than 1 /2 " from center line. Shock absorbers shall b d to dampen bus motion and variable
road conditions. Shock absorbers shall maintain their effectiveness for at leas 00 miles.
7. Frame and Body
The preferred chassis material is Stainless steel and the upper frame components ma tainless steel, corrosion -
protected aluminum or corrosion - protected carbon steel. Exterior body panels shall be ion protected aluminum,
composite material or stainless steel.
8. Bumpers :
The bumpers shall provide impact protection for the front and rear of the bus. Bumper height shall be such that when one
bus is parked behind another, a portion of the bumper es will contact each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. Th shall be corrosion resistant and withstand repeated impacts
of up to 5 MPH without sustaining damage.
9. Rust Proofing
The bus shall resist corrosion from atmospheric conditions salts. shall maintain structural integrity an original
appearance throughout its service life. All exposed surfaces a interior surfaces of tubing and other enclosed members
shall be protected with corrosion resistant coatings. All joint d connections of different metals shall be corrosion resistant
and shall be protected from galvanic corrosion.
10. Undercoating
The under side of the bus shall be coated with an appropriate and flame retardant undercoating to protect the under
carriage of the bus from any type of corrosion or fire that may result from road salt or variable weather or road conditions.
Corrosion protection materials shall not require inspection or repair more often than bi- annually and should not require ,
cleaning other than from a standard automated bus wash rack.
The following Items are specified to meet the manufacturer's standard:
Transit bus amenities to include grab rails, pull cords, destination headers, bus stop enunciators, placard holders (fixed -
route buses only)
ADA- compliant wheelchair lift or ramp
Seats and seat upholstery
Exterior body style
May 2010 15
Flooring style and material
Exterior paint finish: Powder white is the standard; no clear coat
All interior signage to comply with ADA
May 2010 16
Exhibit B:
60' Articulated Transit Bus
1. Engine Size /Type
The diesel engine shall be designed to operate for not less than 300,000 miles ut major failure or deterioration. Then
engine shall be designated as 'Heavy Duty" for use in a mass transit applica N shall be sized such that performance
and fuel economy are maximized and operating costs and capital costs ar IMI
2. Transmission
The transmission shall be multiple speeds, automatic shift with torque converter, retarde electronic controls for use in
a mass transit application. Gross input power, gross input torque and rated input speed sha ompatible with the engine
and provides maximum performance and fuel economy. The transmission shall be designed to perate for not less than
300,000 miles on the design operating profile without replacement or major service.
3. Engine Block Heater
Special equipment or procedures may be employed t ngine when exposed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operation I co er engine- heating devices shall be of the type
recommended by the engine manufacturer and approve the p agency.
4. Cooling System
The engine shall be cooled by a water based, pressure type, ling system that does not permit boiling or coolant loss
during normal vehicle operation. The system shall be of suffi size to maintain all engine and transmission fluids and
intake air at a safe, continuous temperature in accordance wit a engine and transmission manufacturers' requirements
5. Brakes
Service brakes shall be col actuated by a compressed -air system. A microprocessor - controlled ABS system shall
be provided. The entire sys clud
b ing friction material„ shall have a minimum overhaul or replacement life of
retarder on
30,000 miles with a ating profile. Brakes shall be self- adjusting throughout this period. Wheel
bearings and seals be replaceable should not leak or weep lubricant for 100,000 miles.
6. Suspension
Suspensions shall incorpor e
propria _ vices for automatic height control Shock absorbers shall be used to dampen
bus motion and variable road itio hock absorbers shall maintain their effectiveness for at least 50,000 miles.
May 2010 17
7. Frame and Body
The preferred chassis material is stainless steel and the upper frame components m be stainless steel, corrosion -
protected aluminum or corrosion- protected carbon steel. Exterior body panels sha4 corrosion- protected aluminum,
composite material or stainless steel.
8. Bumpers
The bumpers shall provide impact protection for the front and rear of the ; Bum eight shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. ont and rear bumper shall not be
damaged as a result of an impact of up to 5 mph. The bumper shall be corrosion- resista d withstand repeated impacts
of up to 5 mph without sustaining damage.
9. Rust Proofing
The bus shall resist corrosion from atmospheric conditions and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surf es and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion- resistant coatings. nd connections of different metals shall be corrosion -
resistant and shall be protected from galvanic corrosio"
10. Undercoating
The underside of the bus shall be coated wit an appropri me -r dant undercoating to protect the undercarriage
of the bus from any type of fire or corro ay resul road salt or from variable weather or road conditions.
Corrosion - protection materials shall n . wire ection o air more often than bi- annually and should not require
cleaning other than from a standar mated b wash rac
The following items are specified to meet nufacturer's tandard:
1. Transit bus amenities to include grab rails, cords, destination headers, bus stop enunciators, placard holders (fixed
route buses only)
2. ADA compliant wheelchair lift or ramp
3. Seats and seat upholstery
4. Exterior body style
5. Flooring style and material
6. Exterior paint finish: Powder white is the standard; no clear coat
7. All interior signage to comply with ADA
May 2010 18 ,
Exhibit C:
40' Lowfloor Diesel Bus and Hybrid Bus
1. Engine Size /Type
The diesel and hybrid engine shall be designed to operate for not less than 400,000 miles without major failure or
deterioration. Then engine shall be designated as "Heavy Duty" for use ' a mass transit application. The engine shall be
sized such that performance and fuel economy are maximized and op g costs and capital costs are minimized.
2. Transmission
The transmission shall be multiple speed, automatic shift with t conve retarder and electronic controls with a
heavy duty transit application. Gross input power, gross input for d d input speed shall be compatible with the
engine. The diesel transmission shall be designed to operate for not n 400,000 miles on the design operating profile
without replacement or major service.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine when a sed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operation. All cold - weather engine- heating devices shall be of the type
recommended by the engine manufacturer approved by the procuring agency.
4. Cooling System
The engine shall be cooed by a wat sed, pre a -type cooling system that does not permit boiling or coolant loss
during normal vehicle operation. The m sh f sufficient size to maintain all engine and transmission fluids and
intake air at a safe, continuous tempera T will maintain a safe and operable temperature range
during the most severe operations possib n accordant with the engine and transmission manufacturers' cooling -
system requirements. The cooling fan shoul ge when any fluid is above safe operating temperature.
5. Brakes
Service brakes shall be controlled and actuated by a compressed air system, and shall meet FMVSS 121 requirements. A
microprocessor controlled ABS system shall be provided. The entire brake system, including friction material shall have a
minimum overhaul or replacement life of 30,000 miles with a brake retarder on operating profile. Brakes shall be self
adjusting throughout this period. Wheel bearings and seals shall be replaceable and should not leak or weep lubricant for at
least 100,000 miles.
6. Suspension
The suspension system shall permit a minimum wheel travel of 3 inches jounce upward travel of a wheel when the bus hits
a bump. Suspensions shall incorporate appropriate devices for automatic height control, so that regardless of load the bus
May 2010 19
height does not deviate more than 1 /2 " from center line. Shock absorbers shall be used to dampen bus motion and variable
road conditions. Shock absorbers shall maintain their effectiveness for at least 50,000 miles.
7. Frame and Body
The preferred chassis material is Stainless steel and the upper frame compone ay be stainless steel, corrosion -
protected aluminum or corrosion - protected carbon steel. Exterior body pan , be corrosion protected aluminum,
composite material or stainless steel.
8. Bumpers
The bumpers shall provide impact protection for the front and rear of the bus. Bumper he hall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. The fro d rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper shall be corrosion resistant an ithstand repeated impacts
of up to 5 MPH without sustaining damage.
9. Rust Proofing
The bus shall resist corrosion from atmospheric condi ad salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed su s a terior surfaces of tubing and other enclosed members
shall be protected with corrosion - resistant coatings. All s and ons of different metals shall be corrosion -
resistant and shall be protected from galvanic corrosion.
10. Undercoating
The underside of the bus shall be coated with an appropriate flame retardant undercoating to protect the undercarriage
of the bus from any type of fire or corrosion that may result fr road salt or variable weather or road conditions. Corrosion
protection materials shall not require inspection or repair more en than bi- annually and should not require cleaning other
than from a standard automated bus wash rack.
The following items a ecified to m he manufacturer's standard:
1. Transit bus amen to include grab Is, pull cords, destination headers, bus stop enunciators, placard holders (fixed -
route buses only)
2. ADA compliant w h
or ra
heelc
4. Seats and seat upholstery
5. Exterior body style
6. Flooring style and material
May 2010 20
7. Exterior paint finish: Powder white is the standard; no clear coat
8. All interior signage to comply with ADA
May 2010 21
z
Exhibit D;
30' Transit Bus and Medium -Duty Transit Bus
1. Engine Size /Type
The engine shall be designed to operate for not less than 300,000 miles without major failure or deterioration. The engine
shall be designated as "Heavy Duty" for use in a mass transit application.
2. Transmission
The transmission shall be multiple -speed automatic shift with torque erter, retarder and electronic controls with a
application. P power, gross heavy-duty transit a lication. Gross input input for d rated input speed shall be compatible with the
P p P P
engine. The transmission shall be designed to operate for not le n 300, miles on the design operating profile
without replacement or major service.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine exposed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operation. All cold- weather a -- heating devices shall be of the type
recommended by the engine manufacturer and approved by the procuring a
4. Cooling System
The engine shall be cooed by a water bas. - sure -type cooling system that does not permit boiling or coolant loss
during normal vehicle operation. The s e of sufficient size to maintain all engine and transmission fluids and
intake air at a safe, continuous tem ure. Th oling system will maintain a safe and operable temperature range s_
during the most severe operations le and i cordance with the engine and transmission manufacturers' cooling -
system requirements. The cooling fan d e fluid is above safe operating temperature.
5. Brakes
Service brakes shall be controlled and actuate a compressed air system and shall meet FMVSS 121 requirements. A
microprocessor controlled ABS system shall be p ed. The entire brake system, including friction material shall have a
minimum overhaul or replacement life of 30,000 m s with a brake retarder on operating profile. Brakes shall be self
adjusting throughout this period. Wheel bearings and seals shall be replaceable and should not leak or weep lubricant for at
least 100,000 miles.
6. Suspension
Suspensions shall incorporate appropriate devices for automatic height control. Shock absorbers shall be used to dampen
bus motion and variable road conditions. Shock absorbers shall maintain their effectiveness for at least 50,000 miles.
May 2010 22 "'
7. Frame and Body
The preferred chassis material is stainless steel and the upper frame components m be stainless steel, corrosion -
protected aluminum or corrosion protected carbon steel. Exterior panels shall be ion- protected aluminum, composite
material or stainless steel.
8. Bumpers
The bumpers shall provide impact protection for the front and rear of the Bum " " eight shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. l` ont and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper shall be corrosion resista d withstand repeated impacts
of up to 5 MPH without sustaining damage.
9. Rust Proofing
The bus shall resist corrosion from atmospheric conditions and road salts. It shall maintain structural integrity and original
appearance throughout it's service life. All exposed sI re and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion - resistant coatings. nd connections of different metals shall be corrosion-
resistant and shall be protected from galvanic corros
10. Undercoating 4
The underside of the bus shall be coated with an app me r dant undercoating to protect the undercarriage of the bus from any type of fire or corrosion that ma road salt or variable weather or road conditions.
The following items are specified to meet the manufacturer's st ard:
1. Transit bus amenities to include grab rails, pull cords, destination headers, bus stop enunciators, placard holders (fixed
route buses only)
2. ADA compliant wh it lift or
4. Seats and seat tery
5. Exterior body style
6. Flooring style and mate
7. Exterior paint finish: Powde the standard; no clear coat
8. All interior sign
age to comply w ADA
May 2010 23
Exhibit E:
Heavier -Duty Small Bus
1. Engine Size /Type
The engine shall be designed to operate for not less than 250,000 miles witho for failure or deterioration. The engine
shall be designated as "Heavy Duty" for use in a mass transit application.
2. Transmission
The transmission shall be multiple -speed automatic shift with torque erter, retarde electronic controls with a
heavy -duty transit application. Gross input power, gross input for . d rated input spe all be compatible with the
engine. The transmission shall be designed to operate for not le n 250, miles on th ign operating profile
without replacement or major service. Transmission brand name spec I be compatibl to the engine chosen.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine exposed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operation. All cold - weather a - heating devices shall be of the type
recommended by the engine manufacturer and approved by the procuring a
4. Cooling System
The engine shall be cooed by a water bas sure -type cooling system that does not permit boiling or coolant loss
during normal vehicle operation. The s e of sufficient size to maintain all engine and transmission fluids and
intake air at a safe, continuous tem re. Th oling system will maintain a safe and operable temperature range
during the most severe operations le and i cordance with the engine and transmission manufacturers' cooling -
system requirements. The cooling fan Id a fluid is above safe operating temperature.
5. Brakes
Service brakes shall be controlled and actuate a hydraulic disc system. A microprocessor - controlled ABS system shall
be provided. The entire brake system, including n material, shall have a minimum overhaul or replacement life of
30,000 miles. Brakes shall be self- adjusting throu ut this period. Wheel bearings and seals shall be replaceable and
should not leak or weep lubricant for 100,000 miles.
6. Suspension
The suspension system shall permit a minimum wheel travel of 3 inches jounce upward travel of a wheel when the bus hits
a bump. Suspensions shall incorporate appropriate devices for automatic height control, so that regardless of load, the bus
height does not deviate more than 1 /2 inch from center line. Shock absorbers shall be used to dampen bus motion and
variable road conditions. Shock absorbers shall maintain their effectiveness for at least 50,000 miles.
May 2010 24
7. Stainless Steel Where Practical
Stainless steel options should be provided during option selection. Possible uses for this type of material would be framing,
skirting, lower body panels, rivets, screws and body detailing.
8. Bumpers
The bumpers shall provide impact protection for the front and rear of the bus. Bumper height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact ach other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 mph. The bumper shall b osion- resistant and withstand repeated impacts
of up to 5 mph without sustaining damage.
9. Rust Proofing
The bus shall resist corrosion from atmospheric conditions and ro It all maintain structural integrity and original `
appearance throughout its service life. All exposed surfaces and the surfaces of tubing and other enclosed members
shall be protected with corrosion - resistant coatings. All joints and conn ns of different metals shall be corrosion -
resistant and shall be protected from galvanic corrosion.
10. Undercoating
The underside of the bus shall be coated with an appropriate and flame retardant undercoating to protect the undercarriage
of the bus from any type of fire or corrosion at may result from road salt or variable weather or road conditions.
The following items are specified to t the ma acturer's standard: `
1. Transit bus amenities to include gr Is, ation headers, bus stop enunciators, placard holders (fixed -
route buses only)
2. ADA compliant wheelchair lift or ramp
3. Seats and seat upholstery
4. Exterior body style
5. Flooring style and material
6. Exterior paint finish: Powder white is the standard; no clear coat
7. All interior signage to comply with ADA
May 2010 25
Exhibit F:
Light -Duty Small Bus
1. Engine Size /Type
The engine shall be designed to operate for not less than 200,000 miles witho 'or failure or deterioration. The engine
shall be designated as "Heavy Duty" for use in a mass transit application.
2. Transmission
The transmission shall be multiple speed, automatic shift with torque converter, retard electronic controls with a
heavy duty transit application. Gross input power, gross input torque and rated input spe all be compatible with the
engine. The transmission shall be designed to operate for not less than 200,000 miles on t sign operating profile
without replacement or major service. Transmission brand name and specs shall be compatibl to the engine chosen.
3. Engine Block Heater
Special equipment or procedures may be employed to he engine when exposed to temperatures less than 30 °F, for a
minimum of four hours without the engine in operatio eather engine- heating devices shall be of the type
recommended b manufacturer and a
r
Y the engine pprov y ring agency.
4. Cooling System
The engine shall be cooled by awater- based, pressure -typ g system that does not permit boiling or coolant loss
during normal vehicle operation. The system shall be of su t size to maintain all engine and transmission fluids and
intake air at a safe, continuous temperature. The cooling sys will maintain a safe and operable temperature range
during the most severe operations possible and in accordance the engine and transmission manufacturers' cooling -
system requirements. The cooling fan should engage when any id is above safe operating temperature.
5. Brakes
Service brakes shall be a tuated by a hydraulic disc system. A microprocessor controlled ABS system shall
be provided. The enti ke system, ding friction material shall have a minimum overhaul or replacement life of
30,000 miles. Brak II be self adjus throughout this period. Wheel bearings and seals shall be replaceable and
should not leak or we ricant for 100 0 miles.
6. Suspension
The suspension system shall t a mum wheel travel of 3 inches jounce upward travel of a wheel when the bus hits
a bump. Suspensions shall into ppropriate devices for automatic height control, so that regardless of load, the bus
height does not deviate more than nch from center line. Shock absorbers shall be used to dampen bus motion and
variable road conditions. Shock absorbers shall maintain their effectiveness for at least 50,000 miles.
May 2010 26
7. Stainless Steel Where Practical
Stainless steel options should be provided during option selection. Possible uses for this type of material would be framing, }
skirting, lower body panels, rivets, screws and body detailing.
8. Bumpers
The bumpers shall provide impact protection for the front and rear of the bus. Bumper height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact ach other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper shall b osion resistant and withstand repeated impacts
of up to 5 MPH without sustaining damage.
9. Rust Proofing
z .
The bus shall resist corrosion from atmospheric conditions and ro is all maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the surfaces of tubing and other enclosed members
shall be protected with corrosion - resistant coatings. All joints and conn s of different metals shall be corrosion-
.,
resistant and shall be protected from galvanic corrosion.
10. Undercoating
The underside of the bus shall be coated with an appropriate and flame retardant undercoating to protect the undercarriage
of the bus from any type of fire or corrosion at may result from road salt or variable weather or road conditions.
The following items are specified to t the ma acturer's standard:
1. Transit bus amenities to include gr 'Is, ation headers, bus stop enunciators, placard holders (fixed
route buses only)
2. ADA compliant wheelchair lift or ramp
3. Seats and seat upholstery
4. Exterior body style
5. Flooring style and material
6. Exterior paint finish: Powder white is the standard; no clear coat
7. All interior signage to comply with ADA
May 2010 27
DRAFT 07/15/10
REGIONAL TRANSIT OPERATING REVENUE ALLOCATION POLICY
I. Background and Purpose
Background
For many years the primary funding source for regional transit oper s w a transit operating
property tax levied by the Metropolitan Transit Commission (MT ' later by the Metropolitan
Council after the two agencies merged in 1994. The property ro approximately 65% of
the revenues necessary to fund regular route bus operations wi the rem r generated through
passenger fares, the state general fund and other minor sources oirevenue s advertising. In
1984 legislation passed allowing communities to "opt -out" of the regional tr stem (M.S.
473.388 Replacement Transit Service) and replace the regional transit service wi ' service
designed and operated by the community. Communities that elected to opt -out of t egional
service kept 90% of the transit operating property tax generated by their communit with the
remaining 10% retained by the MTC /Council to fund transit costs that had system -wide, regional
benefit. The provision allowing comm to opt -out was sunset in 1988 with the existing opt -
out communities grandfathered in and allo ontinue providing transit service. Twelve opt -
out communities currently run their own tr it r provide service through a consortium
with other opt -out communities. t
In 2001, the legislature eliminated the authority the Co and opt -out communities to levy a
transit operating property tax (beginning with cal ar year 2002 property tax payments) and
replaced it with what at the time was an equivalent o t of state Motor Vehicle Sales Tax
(MVST) revenue. In fiscal year 2002 this was 20.5 f the statewide MVST receipts or about
$125 M. The o - t communities were guarantee a percentage of MVST that was equivalent to
the propo it operating property tax levied within their communities. This was
about 1 % of the t .5% in 2002. Very soon after the property tax was replaced with
MV MVST reven gan to decline (though the state forecasts continued to project
growing ues). In 200 art to offset this decline, the legislature increased the
metropolit 4 , sit share of ST to 21.5 %, with a reversion back to 20.5% scheduled for fiscal
year 2008. Be FY2002 . d FY2007, the amount of revenue generated by MVST was
significantly less that w would have been generated by the transit operating property tax.
The split of these re tween the Council and opt -out communities, or Suburban Transit
Providers (STPs) as t Te now known, remained at the traditional property tax based ratio.
Driven by the need for additional funding for both transit and highway purposes, in 2006 the
legislature authorized a constitutional amendment to be put on the November ballot asking voters
to dedicate 100% of the MVST revenue to transportation purposes with not more than 60%
dedicated to highway purposes and at least 40% to transit assistance. The amendment
overwhelmingly passed and in the 2007 session the Legislature passed additional statutory
language specifying how the dedication would be phased -in over a five year period and resulting
in a final dedication in FY2012 of 60% to highway purposes and 40% to transit, with 4% for
Greater Minnesota transit and 36% to metropolitan area transit.
1
Under the legislation, the base MUST funding (the original 21.5% of MVST for metropolitan area
transit) is required to continue to be distributed among the Council and STPs using the historic
property tax distribution, while the new MVST revenue (from the amount generated above 21.5 %)
was anticipated to be distributed for new, expanded transit services. The passage of the
constitutional amendment and the dedication of these "new" revenues fundamentally changed the
inter - relationship of the Metropolitan Council's and Suburban Transit Providers' (STPs) operating
budgets by tying them to a similar new funding source. Prior to this time there was relatively little
need for coordination of operating revenues between the Council and STPs because the revenue
allocation was formulaic.
It was originally envisioned that the new transit revenues (the phased -in share of MVST from
21.5% to 36 %, defined as "Regionally Allocated MVST" i this document) would be used for
transit service expansion. The Council also at this time 7) convened a group of Council
and STP staff, known as the Service Investment Strat f group or SIS, to begin discussing
policies and procedures that would guide the distri of the egionally Allocated MVST
revenues for transit expansion purposes. The SIS gro 'd reac eliminary consensus that a
portion of the new MVST funds available for expansion co d be distributed to transit
entities using a fixed formula. However, the duplication o itway funding with any fixed
formula funding had not been resolved and this concept was c plated prior to a number of
factors being known or considered including:
• A budget analysis that showed some STP had adequate operatin enue provided through
the base MVST distribution;
• A budget analysis that s ed that some STP had operating reserves well in excess of
adopted policy level -
• The deterioration e MV venues to a level where funds were only available for service
preservation pu o of exp ion (see below);
• General fund reductio t ed during the state budget deficit; and
• Lack of state funds being de mentation of Transitways, most notably
Northstar Commuter Rail an rations associated with the implementation of the Urban
Partnership Agreement (UPA).
As these activities were occurring, M T revenues were in substantial decline statewide and it
soon became apparent that the base MVST plus the Regionally Allocated MVST would not bring
in nearly the amount of revenue originally anticipated. In fact, in fiscal years 2008 and 2009 (the
first two years of the MVST dedication phase -in) the metropolitan transit share of MVST at 24%
and 27.75% of MVST respectively, brought in approximately the same amount of revenue as was
received in fiscal years 2006 and 2007 when the metropolitan transit share of MVST was at
21.5 %. (See figure of Forecasted Regional Transit MVST Revenues). As regional budget
analyses were conducted in preparation for the 2009 legislative session, it became apparent that
most of the new Regionally Allocated MVST would need to be distributed to the transit entities
(defined as the Council transit operating units and STPs) just to allow for a continued level of
existing transit service operations (preserve operations). In addition, the region had new operating
commitments for services that were legally required to begin service including UPA operations on
Cedar and 1 -35W BRTs and Northstar commuter rail among others.
2
Forecasted. Met'Cvuncil MVST Revenues 217.9 219;3
21.0-r'
170 �.
,♦ ,' �• ..A." ` 171.7
165.5'
1 5 0
+,
130
�74 , 1247
124. � � � 122
11.0 .
• 914.4
90
'03 '04 '05 '06 '07 4 08 '09 '10 1 11 '12 1 13
26,5 %a 21.5 % 21:5% 21.5% 21.5 %: 24 %, 27.75% 31.5 % 35.25 % , 36 % 36 %
State Fiscal year
'21E15; - -'210'7 ■ -'2109 IN - ,'211.0 *— Actual:
Purpose
The fact describe usly require that policies be established to govern the regional
distri and adminis of Regionally Allocated MVST revenues among the region's
tran it e This policy the priorities for use of the Regionally Allocated MVST funds,
establishes iples to guid e distribution of Regionally Allocated MVST and provides
procedures fo ibuting th ' egionally Allocated MVST to the regional transit entities for the
identified priorit cludin reserving each transit entity's existing level of transit service and
distributing any re `' gionally Allocated MVST for prioritized transit service expansion.
II. Priorities for Distribution of Regionally Allocated MVST
The regional priorities for the distribution and administration of Regionally Allocated MVST
revenues in prioritized order are:
1. Preservation of transit service required to meet state and federal mandates.
2. Preservation of existing transit service that meets regional performance standards;
3. Prioritized transit service expansion.
3
Procedures for distributing the Regionally Allocated MVST to each of these priorities are
described in Section IV of this policy.
III. Principles Guiding the Distribution of Regionally Allocated MVST
A. General Guiding Principles
The following general principles will guide the procedures and decisi ing regarding the
distribution of Regionally Allocated MUST for operating purposes ansit entities within the
region.
• The revenue allocation process will be transparent and in ation w shared and open
communication maintained among the transit entities to ensure that info and equitable
decisions are made and understood by all regional transit entities.
• Funds available for the operations of regional transit services are limited and s Id be
allocated in a manner that to the extent possible allows all regional transit entities to preserve
existing transit service and fund serv' e expansion that brings the greatest value to the dollar
invested. Uses of available funds tha t aligned with regional transit priorities represent
lost resources and opportunities for all ansit entities to preserve and improve transit
services and performance.
• Regional transit funds available to expand t services be viewed as a regional
opportunity with consideration to all transit e r 'ties and s rvice areas. Recommendations
regarding service expansion will be made to th ouncil by MTS Planning staff. The
recommendations must consider input from a c ttee consisting of all regional transit
entities. Regional funding deficits will be vie d as regional challenges that apply to all
transit entities and service areas. When available resources are insufficient to support the
preservation of existing service, solutions such as fare increases, service reductions and use of
operating reserves will for the purposes of revenue allocation be assumed to be applied
equitably.
• Due to federal and state mandates, ADA transit service will not be allocated a share of the
regional deficit. Special Transportation Service provided above the state and federal
requirements may be allocated a share of the regional deficit.
• New rail and bus rapid transit services will not be funded at the expense of preserving existing
transit service. Funding sources and expenses for rail, bus rapid transit and bus operations will
be identified and tracked separately in the revenue allocation process.
• Regionally Allocated MVST will be distributed first to transit entities to preserve existing
transit services and to honor state and federal obligations. If a transit entity uses its available
base MVST and fare revenues for capital purposes before funding preservation of existing
transit service, an equivalent amount of funding will be deducted from the entity's calculated
distribution of Regionally Allocated MVST funds.
4
• Regionally Allocated MVST will be distributed among the transit entities that abide by the
adopted Regional Transit Operating Revenue Allocation Policy, the Regional Capital Revenue
Allocation Policy (to be developed), the Regional Fleet Policy and other regional policies.
B. Operating Reserve Policies
In order to distribute the Regionally Allocated MVST in manner that is fair and equitable, transit
entities must have operating reserve policies that are transparent, understood and implemented
consistently across similar entities. The following principles will guide the adoption and use of
transit entities' operating reserve policies:
• All transit entities will maintain an operating reserve. F transit entities that are receiving
Regionally Allocated MVST funds, operating resery be used to cash flow approved
capital projects, but are not available to fund capi , rojects. Capital reserves generated by
sources of revenue other than MVST, fares an genera nds are available for capital
projects.
• Operating reserve policy levels for Council transit entit1 11 be as follows
• The Council will maintain a $15 M MVST rese r cash flow purposes.
• Metro Transit Bus and Metro Transit Rail will eac in an 8.3% operating
reserve.
• Metro Mobility and MTS Contracted Transit & PI ng will each maintain a 10%
operating res
• When ad nally Allocated MVST funds are available, Council reserves
will in se to 1 r Metro Transit and 15% for Metro Mobility and Contracted
Serv' e
• Reserves policy levels fo s w s:
• Reserves may be tained at % of operating expenses in years when funds are
available to maintai level of reserves while preserving existing service levels.
Regionally Allocated funds will not be made available for expansion
purposes if this will ca e operating reserves to fall below 35 %.
• When adequate Regionally Allocated MVST funds are not available to maintain
this level of reserves, STP reserves may fall below 35 %, but not below 25% in
order to preserve existing service levels.
• If the preservation of existing service will cause STP reserve balances to fall below 25 %, or
for Council transit entities below adopted policy levels, service reductions would be allocated
across all entities receiving Regionally Allocated MVST funds to maintain STP reserves at the
25% level and the Council transit entities at adopted policy levels.
• Transit entities may choose to maintain reserves above the established reserve policy levels but
for the purposes of allocating MVST either to preserve or expand transit service, the amount
5
above the policy level will be considered as available for operating expenditure for the purpose
of determining an entity's need for Regionally Allocated MVST.
• Transit entities may choose to manage reserves at less than established operating reserve
policy levels at times when there are regional transit operating deficits...
IV. Procedures for Distributing Regionally Allocated MVST
A. Procedure to Distribute Regionally Allocated MVST to Preserve ansit Operations
Metropolitan Council staff will develop and maintain a Preserve Tr . ce Revenue
Allocation Model for calculating and distributing Regionally Allo MVST among the transit
entities to preserve existing transit operations levels.
1. Annually by May of each year, the Metropolitan Counci ill requ ch transit entity to
provide the following information to allow for the calculation of the nt of Regionally
Allocated MVST necessary to preserve transit operations in the next cal e :
o Current Service Improvement Plan that documents service expansio ns,
opportunities, and priorities.
o Current operating reserve policy and an itemization of reserve uses in the prior year
and uses planned for the ent year.
o Annual in- service hours (s itions) in the previous calendar year, current
calendar year and expected rvice hours to preserve service in the next
calendar year;
o Adopted operating expenses an ar e current calendar year, and
expected preserve operations ex . s and far venue in the next calendar year
broken into four expense categori • salaries and benefits, provider contracts, fuel,
and all other expenses.
o If a transit entity chooses, in May th cil will use a standard inflationary rate
to estimate a transit entity's preserve ransit operations expenses for the next
ear? This will provide for calculation of a preliminary distribution of
Regio llocated MVST and allow the Council to adopt a draft operating
budget in mber. In October, each entity may submit actual proposed expenses
for the follo year. The model and calculation of Regionally Allocated MVST
istribution e adjusted for any new inputs and the results incorporated into the
cil's fina dget adoption. (See Section IV. D. Annual Schedule.)
o expl on of any expected year- over -year expense changes by expense
cate h be submitted either in May or October when actual proposed
expens the next year are submitted. Annually the Council will provide each
transit ity with regional benchmarks regarding anticipated expense increases
(e.g. fuel increases). These benchmarks are provided as guidance and will not be
available until after development of the draft operating budget, but will be available
prior to development of the final operating budget. When expense increases vary
from this guidance, additional documentation may be required.
• Audited financial information from the previous calendar year should be submitted
by July.
• The annual budget information submitted by each entity should exclude revenues
and expense of service provided under contract to another transit entity (i.e. Metro
6
Transit revenue and expense should exclude costs of providing service under
contract to Maple Grove).
2. Metropolitan Council staff will convene a joint meeting with all transit entities to discuss
the annual operating revenue allocation and model inputs. The budget information
received from each entity will be reviewed, clarified if there are questions and input into
the Preserve Transit Service Revenue Allocation Model. A generic copy of the model is
shown in Attachment A indicating where information provided by each transit entity will
be entered.
3. Model revenue inputs that will be calculated or estimated h transit entity include:
o Each transit entity's share of Base MVST, calc d upon the previous
February state forecast. 95% of this amount or amour ually agreed upon
will be input to the model, with the remaining 5% ail le to an entity's
reserve and used to offset revenue volatility throughout the cal year.
o State general fund appropriations for specific transit activities suc
operations appropriations.
o State general funds for general bus operations will first be distribut to required
ADA services to assure that there will not be an operating deficit. The remaining
state general funds will b ributed to Metro Transit and MTS Contracted Transit
& Planning.
o CTIB operating contribution i ated and distributed to the entity that
will receive the CTIB grant (i. MT the revenue and expense for Cedar
Avenue and 35W BRT service t ontra VTA or Metro Transit).
o Other rev I ing all reve other th ares, MVST, federal or general
fund (s, '. as inv nt income, vertising, commissions) will be calculated as
1% ansit e y's annual o ' at' g expenses.
4. Council staff will in e model as follows:
o Federal NTD fo funds ar imarily meant for capital purposes and are not
required to be use e operating budget for preventive maintenance or capital
cost of contracting. of federal formula funds for operating purposes will
reduce that amount of ds available for capital purposes. If it is determined that
it is desirable or necessary to utilize federal funds in the operating budget, the usage
will represent a regional contribution of federal funds for operating purposes. For
ease of administration, the federal funds will be shown as revenue in the operating
budgets of the following transit entities: Metro Mobility and MTS Contracted
Transit & Planning (representing capital costs of contracting) and Metro Transit
(for preventive maintenance).
o The amount of federal formula funds that will be used in the regional operating
budget will be determined on an annual basis using a transparent process. The
calculation will be based upon the balance of resources needed for preserving
existing services, fleet, and facilities. Special federal funds available, such as the
revenue received through the American Recovery and Reinvestment Act (ARRA),
will also be considered when making a determination regarding the use of federal
formula funds in the operating budget.
o MTS Contracted Transit & Planning will include the following federal revenues:
7
-- Anticipated federal Urban Planning Work Program (UPWP) funds (Mn/DOT is
responsible for calculating and notifying the Council regarding its expected level of
federal UPWP funds each year); and
-- Federal 5311 funds expected to be available through Mn/DOT for dial -a -ride
operating purposes.
o Each transit entity must include any federal funds awarded for operating purposes
such as CMAQ or JARC and New Freedoms programs.
5. Revenues and expense data will be used to calculate a Projected Deficit for each entity as
follows: Total Expenses - Subtotal of Revenues = Projected Deficit. Some transit entities
may have a Projected Deficit of zero. This would include: ADA service consistent with
state and federal law, rail operations when the state has provided the full 50% share of net
operating funds; and any transit entity whose combi ation of fares, 95% of base MVST
and other funds is adequate revenue to preserve i ing operations. Transit entities that
show a Projected Deficit will be expected to u perating reserves to balance their
preserve operations budget to the extent th rves ar vailable above the policy level
as described in Section III. B. Operating ese olicie
6. A Deficit After Use of Reserves will then be calcul s follows: Projected Deficit — Use
of Reserve = Deficit After Use of Reserves. A Total al Deficit After Use of
Reserves is the sum of all of the transit entities' Deficit A se f Reserves.
7. If the amount of revenue available from Regionally Allocat VST is greater than the
Total Regional Deficit fter Use of Reserves, then each entity will be distributed an
amount of Regio ted MVST equal to its' Deficit After Use of Reserves.
8. Any Regio cated ST remaining after meeting each transit entity's preserve
service level will trib o each transit entity in an amount necessary to bring its
reserve level to the p e Section III. C. Remaining Regionally
Allocated MVST after g prese ervice operations and maintaining reserve levels
will be distributed through edures described in Section IV. B.
9. If the amount of Regionally Al ated MVST is less than the Total Regional Deficit After
Use of Reserves then a Regional Percent Deficit is calculated as follows: (Total Regional
Deficit After Use of Reserves — Total Regionally Allocated MVST) / (sum of expenses for
the transit entities that will be receiving Regionally Allocated MVST) x 100 = Regional
Percent Deficit.
10. Each transit entity with a deficit will receive an equivalent Deficit as a Percent of
Operating Expenses as the overall Regional Percent Deficit (i.e. if Regional Percent Deficit
is 2 %, each transit entity receiving Regionally Allocated MVST will have a 2% deficit).
8
B. Procedure to Distribute Regionally Allocated MVST for Transit Service Expansion
Remaining Regionally Allocated MVST, after funding the preserve transit operations budget and
bringing each transit entity to the operating reserve policy level, will be used to expand the
regional transit system. The intent of this distribution will be to fund high quality transit
expansion projects to help the region accomplish the 2030 Transportation Policy Plan's
overarching goal of doubling transit ridership within the region by 2030. The amount of
Regionally Allocated MVST available for service expansion is not known until the Preserve
Transit Service Revenue Allocation Model and distribution of Regionally Allocated MVST for
service preservation is calculated. Because this occurs late in the cale ear, any Regionally
Allocated MVST funds that will be made available for service exp n wi not be included in a
transit entity's adopted preserve operations budget but will be a into adopted budgets
throughout the year as service expansion decisions are made a eg Allocated MVST
funds are distributed for expansion purposes. Funds allocated servic anion then become
part of a transit entity's preserve transit service operations budge 'n the fo g year.
As noted in the Principles section, service expansion funded with Regionally Al VST in
one year will become part of the preserve service base in future years as long as t 1 rvice 11
expansion continues to meet regional performance guidelines. (This determination ill be made
after the service has been in operation for at least 18 months.) In addition, service will only be
expanded if state MVST forecasts indica t funding for the service expansion will be
sustainable for at least three years.
Recommendations on how to distribute Regi ally VST for transit service expansion
will be made to the Council by MTS Planning f e r ndations must consider input
from a regional staff committee composed of st epresenta es from each of the transit entities
including MTS Contracted Services, Metro Trans us and Rail and each of the STPs. The
committee will be convened by the MTS staff upo d ermination, as part of the annual
operating budget process, that Regionally Allocated ST funds are available for transit service
expansion p All input from the regional transit entity committee will be provided to the
Council c I . corporated into the transit service expansion recommendations. The
reco ations on I distribute Regionally Allocated MVST for service expansion will be
base ee primary fa
1. Consist with the Tra rtation Policy Plan;
2. The servic anion pl identified in each provider's Service Improvement Plan (SIP) and
in the Region ice I rovement Plan (RSIP); and
3. Balancing of dis of Regionally Allocated MVST across the region over time.
Each of these factors i described in more detail below. The recommendations regarding transit
service expansion to be funded with Regionally Allocated MVST will be brought to the Council
for approval and amendment into the annual transit operating budget.
This policy does not preclude distributing Regionally Allocated MVST funds as a match for
Congestion Mitigation Air Quality grants or similar grants when the region is in a service
expansion period.
1. Consistency with Transportation Policy Plan (RSIP)
9
All service expansion must be consistent with the policies and strategies in the Council's adopted
Transportation Policy Plan The policy plan requires transit entities to develop local service
improvement plans and to submit the plans for inclusion in a Regional Service Improvement Plan.
In addition proposed service should be consistent with the market service areas and regional
design standards contained in Appendix G of the plan.
2. Regional Service Improvement Plan
The RSIP will be prioritized to identify the most promising projects first. (These are the projects
that best address regional transit goals.) This prioritized list will be rev' d by the staff
committee to identify the overall amount of new service that can be ed With available
expansion funds. This will establish a cutoff level in the RSIP fo d projects. Only
providers that have projects that achieve this level of priority in t IP will be considered
for additional funding from Regionally Allocated MVST. Th rojects e the cutoff level will
also set the cap for funding for each provider. No projects belo the cuto be funded.
RSTP Prioritized Proiect
High priority
• Provider 1 project
• Provider 2 project
Medium priority
• Provider 3 project
• Provider 2 project
Low Priority Funding cutoff
• Provider 4 project
• Provider I projec Stoplement In the above example, providers 11 be eligible for funding. They will only be eligible
for funding up to the level requir the projects listed above the cutoff level.
3. Balance in Distribution over Time
Since projects across the region will develop at different times, the distribution of Regionally
Allocated MVST will need to be balanced over time. A provider may receive significant funding
one year and less or none the next.
Any given year, the distribution of Regionally Allocated MVST will include a review of past of
distribution of funds in addition to projects in the current RSIP. This review will include analysis
of all Regionally Allocated MVST distribution, including that required for preserving existing
operations and for committed expansions to assure that the distribution is balanced and equitable
across the region over time.
C. Annual Schedule
10
The generic schedule outlined below will guide the preparation of the Preserve Transit Service
Revenue Allocation Model and adoption of annual transit operating budgets.
May — Council requests and transit entities submit information specified in Section IV. A.
Late May — Legislative session concludes, general fund appropriations and other funding
information is known.
Early June — Council prepares Preserve Transit Service Revenue Allocation Model and calculates
preliminary distribution of Regionally Allocated MVST for transit service preservation.
Late June /July — Transportation Committee and Council operating budget presentation and review.
September — Council adopts draft Annual Operating Budget
October — STPs adjust proposed preserve service expenditures for next calendar year and update
operating reserve balance level.
November — Council adjusts the draft operating budget and egionally Allocated MVST
distribution based upon information submitted in Octobe ased upon the November MVST
forecast
November — Council determines amount of Regio llocat MVST available for transit
operating expansion or for transit capital expansi p es an venes a regional committee
to give input regarding the distribution of Regionally A V funds available for
expansion purposes.
December — Council adopts final Annual Operating Budget.
Next Calendar Year On -going — Regionally Allocated MVST F r nsit service expansion
are amended into adopted operating and capital budgets.
11
Glossary of Terms
Base MVST: Base MVST is the amount derived by the first 21.5% of MVST dedicated to
metropolitan transit purposes. Suburban Transit Providers (STP) as a group receives
approximately 17.1% of the base MVST allocation. This is approximately equal to 3.74% of total
statewide MVST multiplied by a market value adjustment for each year between 2002 and 2007.
Base MVST is meant to represent the amount each transit entity was receiving from its transit
operating property taxes prior to 2002.
Fares: Passenger fares are the revenues received from charging far o tran it customers in
accordance with the regional fare policy or revenue received thro e Regional Fare Allocation
formula.
Expansion Transit Service: Include transit service or hours that as not b rovided in the
previous calendar year and that is proposed to be funded using Regionally All MVST funds.
This would include service hours added to address overloads.
Federal ARRA Funds: Federal ARRA funds are funds received by the region for transit
purposes through the American Reinvestment and Recovery Act (ARRA). The funds are available
for transit capital purposes. However, a of the funds may be brought into the region's
transit operating budget for preventive ma costs and for capital costs of contracting.
This region will be using $17.6 M of federa in the 2010 operating budget.
Federal CMAQ Funds: Congestion Mitigati ualit AQ) funds are competitive
federal funds allocated through the regional soli tion proc The process allocates the funds
four years in advance of funding availability. Th ds may be used for capital or operating
purposes, but must be for transit expansion. CMA s must be matched with 20% local funds.
Providers awarded CMAQ funds for expansion of o ations or for bus purchases must
demonstrate t „ e ability of operating funds for the expanded service of least three years. Metro
Transit an- , ive an annual award of CMAQ funds for travel demand management
activiti „
Federal reedom an Access and Reverse Commute (JARC) Funds: New Freedom
and JARC are awarded the region by formula annually. The region is required to
distribute the -through a mpetitive solicitation process. New Freedom funds are to be used
for transit service isab and elderly individuals and JARC funds must be used for job
access or reverse co ansit service. The funds are available for both capital and operating
purposes and must be ched with 20% local funds for capital and 50% local funds for net
operating costs.
Federal NTD (Section 5307) Funds: These are federal funds earned annually by each transit
entity based upon several factors including the amount of transit service operated and
demographic statistics of the service area. MTS reports the service statistics for the STPs based
upon information submitted by each provider. The funds received lag the service statistics by two
years, i.e. funds received in 2009 are based upon 2007 reported service statistics. Federal NTD
funds are allocated by the FTA for transit capital purposes but may also be used in a providers
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operating budget for eligible capital costs (either capital cost of contracting for contracted service
or preventive maintenance costs for directly provided service).
Federal UPWP: Unified Planning Work Program funds are federal funds received by the Council
as the Metropolitan Planning Organization (MPO) for the region. The funds are used for long -
range transportation/transit and land use planning. The Twin Cities region typically receives
about $3.1 M in federal UPWP funds which must be matched 20% by local funding (typically
SGF or base MVST).
Other Transit Revenue: Other Transit Revenue means revenue e by transit entity through
various activities other than directly providing transit service to c . rs. Other Transit Revenue
would include investment income, advertising revenue, reven ne by transit oriented
development and contract revenue.
Passengers per In- Service Hour: Passengers per in- ice hour is calculate the total
number of passengers carried divided by the in -se ime in urs.
Preserve Transit Service: Includes revenue hours that nt1 operated in e previous
calendar year using its preserve budget as approved throug egional operating revenue
allocation process. Under the Operating Revenue Allocation 90% of a transit entity's
preserve transit service must meet regional performance standar
Regional Service Improvement Plan (RSIP): The Regional Service Improvement Plan
incorporates the Service nt Plans of each transit entity and is prioritized to identify the
most promising expan ' proje at should be implemented should service expansion funding
become available.
Regional Transit Perform nal transit performance standards are used to
evaluate the relative productive efficien f transit service provided. The primary
performance standards are Subsi Passenger and Passengers per In- Service Hour.
Regionally Allocated Motor Vehicle les Tax (MVST): Regionally Allocated MVST is the
amount received by the region for metropolitan transit purposes above 21.5% of total statewide
MVST revenues. By 2012 when the MVST dedication is fully phased -in at 36% for metropolitan
area transit, Regionally Allocated MVST will total 14.5% of total statewide MVST revenues.
Service Hours: Service Hours are defined as — The amount of time a vehicle is specifically in
transit agency service, including all time spent from the first point of the first trip to last point of
the last trip (of a contiguous set of trips). Only hours deadheading to the first pick up and those
from the last drop off to the garage are excluded.
State General Fund (SGF): SGF revenues are appropriated by the Legislature usually biennially
for specific purposes. Metropolitan area transit currently receives SGF appropriations for bus
operations and Hiawatha rail operations.
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Subsidy per Passenger: Subsidy per passenger is the net cost of providing a transit service
divided by the number of passengers using the service. Net cost is calculated as the difference
between the total costs of the service minus fare revenue.
Transit Entities: Means a unit of the Council responsible for transit and the Suburban Transit
Providers that are eligible to receive Regionally Allocated MVST. This includes the following
entities:
• Metro Transit Bus
• Metro Transit Hiawatha Rail
• Metro Transit Northstar Commuter Rail
• MTS Contracted Transit & Planning (contracted fixed route, regional dial -a -ride service,
VanGO!, regional planning)
• Metro Mobility
• Suburban Transit Providers
o Minnesota. Valley Transit Authority A)
o Southwest Transit (SWT)
o Plymouth
o Maple Grove
o Shakopee
o Prior Lake
R
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