The URL can be used to link to this page

Home My WebLink About11.F.2. Consider a Draft Letter of Support for the Regional Transit Capital (RTC) •� Memorandum for the Table � -b e�d a as. CITY OF SHAKOPEE �� P Memorandum � Z � CASE NO.: NA TO: Honorable Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Consider a Draft Letter of Support for the Regional Transit Capital (RTC) Request to the Minnesota Legislature ' MEETING DATE: Apri13, 2012 INTRODUCTION: Regional Administrator Patrick Born sent the attached letter to mayors of cities that provide suburban transit. The letter urges the mayors to contact their legislators to express their support of this year's RTC bonding request. Accompanying this report is a draft letter for the Council's consideration. As drafted, the letter expresses conditional support for the bonding request, but asks for the Metropolitan Council to give assurances related to the provision of both National Travel Database (NTD) and RTC funds to the City of Shakopee and other suburban providers, as well as support from the Metropolitan Council for an increase in the level of MVST provided to the City and other suburban providers. DISCUSSION: . History; In past years the Metropolitan Council has annually requested and received about $35 million in bonding authorization for regional transit capital (RTC). In one year of the Ventura administration the authorization was as high as about $50 million, and in one year where there was a state shutdown no authorization was received. The property taxed levied within the Regional Transit T�ing District are used to retire the debt on the RTC bonds. 2012 RTC Request; , For 2012 the Metropolitan Council submitted to the Legislature an RTC request for projects totaling about $35.4 million. Of that total, about $4.55 million represents suburban transit provider projects. Shalcopee does not have any projects on the list, although its partner in the B1ueXpress, Prior Lake, is scheduled to receive about $306,000 for bus replacements. Over the next two years, Prior Lake will be seeking additional RTC funds for bus replacements, and together we expect to seek RTC funds for improvements to the Marschall Road Transit Station. Issue/Concerns; Over the past few years the amount of RTC funding that suburban transit providers were to receive has been. among the points of controversy between the members of the Suburban Transit Association (STA) including the City of Shakopee. ' 1 2 � 1: These issues have included the following; • The Metropolitan Council developing the capital projects list, but not following or modifying it as it relates to suburban transit provider projects; • The Metropolitan Council not providing STA members with a share of RTC funds, but rather `swapping' NTD funds earned by the providers based on the federal formula with RTC funds for a like amount. Several years ago suburban providers actually received the amount of NTD funds earned for their use locally, as well as RTC for local transit projects. While the Metropolitan Council/Metro Transit continues to receive both NTD and RTC funds that has not been the case for STA members for a number of years. Indeed, the amount of NTD funds which a suburban provider earned is not routinely communicated to it by the Metropolitan Council, and those funds are only provided if the provider specifically requests them. Beyond that, the Metropolitan Council has generally not provided RTC funds to suburban providers, contending that by `washing" the NTD funds with RTC funds, the suburban providers have gotten the RTC to which they are entitled. • The Metropolitan Council following through on previous funding commitments to suburban providers. • At the same time, the Metropolitan Council has led the charge to reduce the amount of MVST available to the City of Shakopee and other suburban operators for their operational and service expansion needs. Because of the issues outlined above, the letter drafted by staff acknowledges the regional importance of RTC funding, but requests the following assurances from the Metropolitan Council; • The regional RTC project list be revised to recognize that the buses approved as a part of Prior Lake's [BlueXpress] grant are coach buses, not 40 foot buses as listed. � • The Metropolitan Council commit to funding all of the projects on the approved list (with the revision noted above) within the specified timeline. • The Metropolitan Council annually provide the City of Shakopee with NTD funds due it as well as a share of RTC for projects such as the improvements to the Marschall Road Transit Station. In this regard, it should be noted that RTC funds were to have been provided for a portion of the Eagle Creek Transit Station, but were not. Those funds should be made available � for BlueXpress related capital projects. • The Metropolitan Council must commit to supporting a restoration of suburban MVST operating funds to at least the levels in existence before the 2011 legislative freeze and reduction. • The Metropolitan Council must support a future increase(s) in suburban provider's percentage share of MVST to reflect the increases that have already been realized by the Metropolitan � .Council/Metro Transit. In other words, their share of MVST has grown from being based on 21.5% to being based on 36%, while the suburban providers share remains based on the 21.5%. FINANCIAL IMPACT: There is no direct financial impact on the City of Shakopee. However, failure to authorize RTC funding may impact the ability to obtain buses or fund other capital proj ects. H:\CC�2012\4-3-12�RTC memo.docx , 3 � ALTERNATIVES; � 1. Offer and pass a motion authorizing the Mayor to sign and send the attached letter as presented to Sen. Ortman on behalf of the City of Shakopee. 2. Offer and pass a motion authorizing the Mayor to sign and send the attached letter, with revisions, to Sen. Ortman on behalf of the City of Shakopee. 3. Take no action on the attached letter. 4. Table the matter. . ACTION REQUESTED: Offer and pass a motion authorizing the Mayor to sign and send the attached letter to Sen. Ortman on behalf of the City of Shakopee. - � � i H:\CC�2012\4-3-12\RTC memo.docx t '� Metropolitan Council March 23, 2012 Councilmember Gary Hansen Mayor Nancy Tyra-Lukens Mayor Brad 7abke . Minnesota Valley'fransit Authority SouthWest Transtt Shakopee Transit Mayor Kelli Slavik Mayor Mark Steffenson Mayor Mike Myser Plymouth�Transit Maple Grove Transit Prior Lake Transit Dear Suburban Transit Provider Board Chairs, As partners in the provlsion of transit services, we need�your help at the Legislature. There has been little to no movement at the Legislature this year towards enacting the region's annual request for Regional Transit � rit . As a result, we need and request your assistance in contacting your legislators to stress the importance of obtalning this funding, As you are aware, these bonds are an extremely important piece of capital funding for the regional transit system, They provide the required local ma#ch for federal formula funds and campetitive grants, Without the local match we are not able to spend the federal funds avaifabie to the region. RTC funds are also used by aif regionai providers to replace and repair exfsting fleet, preserve and maintain existing facitities and if available, to provide funds for capitaf expansion. On an annual basis the Council requests the Legislature to authorize RTC bonding, typically in the range of $35 M annuaily. This authority is becoming increasingly difficult to obtain. Without it, the region wili not be able to continue to replace existing vehicles on a timely schedule as called for in the regional fleet procedures. Suburban Providers scheduled to use tne RTC authorization for vehicle replacements this year include: • Prior lake — 3 forty foot buses for expanslon ($306,000) • MVTA - 6 forty foot and 2 small buses ($2.8 M) • Southwest Transit —1 small bus ($123,000) • Maple Grove —1 small bus ($123,000) RTC is also used to fund Metro Mobility vehicle repiacements. Metro Mobility provides ADA services throughout the region including within the Suburban Provider service areas. Fifty-two bus replacements exceeding $1.8 M are scheduled to be made with this RTC request. In addition, approximately $2.3 M in RTC is scheduled for a region-wide project to rehabilitate, repair and maintain active fleet. These funds are made available for all Suburban Providers' and MTS fleet repair needs and in particular are,used to cover emergency engine and other major component failures. � ��v�v.metrocomicll.oig 3�J0 RoUert Street North • St. Pnul, MN 55101-1805 �(651) 602-1000 • Fax (651) G02-1550 •'fT'P (651) 291-090�1 An EqimlOpporl�mtl� Bny�loGer , - �, March 23, 2012 Page 2 ' - � It is important to remember that capital needs, particularly for bus replacements, are "lumpy", meaning that one provider may have significant fleet replacement needs in a given year and little to no replacement needs in a subsequent year. For example, SouthWest Translt's bus repfacement needs for 2013 year are low, but in 2014 SouthWest will have fleet replacement needs exceeding $6,967,000. To keep the annual RTC request and property tax levies flat or increasing gradually, the Council balances the alfacation of RTC across a longer six-year capital improvement plan. Failure to receive the R7C in one year can have a cascading effect, delaying capita( repfacement in subsequent years RTC funds are also used to provide Suburban Providers w(th funds for facility maintenance and repair. These funds represent the federal earnings of each provider, but allow providers to avoid the time and paperwork-consuming federal process. If new RTC is not authorized this year, Suburban Providers and the Council will be forced to consider using federal funding even on very small projects, but may not have the RTC resources ta afford the necessary 20 percent local match. Suburban Provider projects in this category scheduled to use RTC funds inc(ude: � MVTA—garage facility improvements ($200,000) • MVTA - debt payment for the Eagan bus garage expansion ($300,000) � SouthWest Transit —Southwest Village debt payment ($78,000) � SouthWest Transit - Ramp facility repairs ($50,000} � • MVTA— Customer facility repairs and bus stop amenities ($350,000) • Plymouth — bus shelters ($200,Q00) • Metro Mobility - equipment upgrade ($275,000) • Regional - fare collection equipment ($800,000) The Councll recognizes the compiexity of RTC. If you or your staff woufd like to schedule a discussian regarding the capital allocation process, we would be more than happy to sit down with you and pravfde any background information on the funding and decision-making process. In the meantime we hope that yau are willing to voice your needs and concerns to iegislators to assist in . securing this very important regional funding. Sincerely, . �'�.�vti-- , � Patrick P. Born Regiona( Administrator ` April 3, 2012 ' Senator Julianne Ortman RE: 2012 Regional Transit Capital (RTC) Bonding Request Dear Senator Ortman: For 2012 the Metropolitan Council submitted to the Minnesota Legislature an RTC request for projects totaling about $35.4 million. Of that total, about $4.55 million represents suburban transit provider projects. Shakopee does not have any projects on the list, although its partner in the BlueXpress service (Prior Lake) is scheduled to receive about $306,000 for bus replacements. Over the next two years, Prior Lake will be seeking additional RTC funds for bus replacements for the BlueXpress service we operate cooperatively, and together we expect to seek RTC funds for improvements to the Marschall Road Transit Station. Over the past few years the amount of RTC funding that suburban transit providers were to receive has been among the points of controversy between the members of the Suburban Transit Association (STA) including the City of Shakopee. These issues have included the following; • The Metropolitan Council developing the capital projects list, but not following or modifying it as it relates to suburban transit provider projects; • The Metropolitan Council not providing STA members with a share of RTC funds, but rather'swapping' NTD funds earned by the providers based on the federal formula with RTC funds for a like amount. Several years ago suburban providers actually received the amount of NTD funds earned for their use locally, as well as RTC for local transit projects. While the Metropolitan Council/Metro Transit continues to receive both NTD and RTC funds that has not been the case for STA members for a number of years. Indeed, the amount of NTD funds which a suburban provider earned is not routinely communicated to it by the Metropolitan Council, and those funds are only provided if the provider specifically requests them. Beyond that, the Metropolitan Council has H:\CC\2012\4-3-12\RTC Letter_04032012.docx O generally not provided RTC funds to suburban providers, contending that by'washing" the NTD funds with RTC funds, the suburban providers have gotten the RTC to which they are entitled. ' • The Metropolitan Council following through on previous funding commitments to suburban providers. • At the same time, the Metropolitan Council has led the charge to reduce the amount of MVST available to the City of Shakopee and other suburban operators for their operational and service expansion needs. The authorization of RTC bonds is important to maintain and support transit throughout the entire Metropolitan Areas, including those services that we offer in partnership with the City of Prior Lake and Scott County. Shakopee's support of the present RTC request is, however, contingent on receiving some specific assurances from the Metropolitan Council, including; • That the regional RTC project list be revised to recognize that the buses approved as a part of Prior Lake's (BlueXpress] grant are coach buses, not 40 foot buses as listed. � • The Metropolitan Council commit to funding all of the projects on the approved list • (with the revision noted above) within the specified timeline. • The Metropolitan Council annually provide the City of Shakopee with NTD funds due it as well as a share of RTC for projects such as the improvements to the Marschall Road Transit Station. In this regard, it should be noted that RTC funds were to have been provided for a portion of the Eagle Creek Transit Station, but were not. Those funds should be made available for BlueXpress related capital projects. • The Metropolitan Council must commit to supporting a restoration of suburban MVST operating funds to at least the levels in existence before the 2011 legislative freeze and reduction. ' • The Metropolitan Council must support a future increase(s) in suburban provider's percentage share of MVST to reflect the increases that have already been realized by the Metropolitan Council/Metro Transit. In other words, their share of MVST has grown from being based on 21.5% to being based on 36%, while the suburban providers share' remains based on the 21.5%. Thank you for your consideration. If you have any questions, please feel free to contact _ Shakopee Community Development Director Michael Leek at (952) 233-9346. Sincerely, Brad Tabke, Mayor , City of Shakopee � CC. Pat Born, Regional Administrator, Metropolitan Council H:\CC\2012\4-3-12\RTC Letter_04032012.docx