HomeMy WebLinkAbout10B - Proposed Metropolitan Council Regional Transit Policies
MEETING DATE:
AGENDA #:
PREPARED BY:
PRESENTER:
AGENDA ITEM:
DISCUSSION:
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
JULY 19,2010
10B
JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIR.
JANE KANSIER
CONSIDER APPROVAL OF A REPORT TO REVIEW AND COMMENT
ON PROPOSED METROPOLITAN COUNCIL REGIONAL TRANSIT
POLICIES
Introduction
The purpose of this agenda item is to review a set of draft regional transit
policies proposed by the Metropolitan Council. Staff is asking the Council
to provide comments, if any, on the proposed policies. We will then take
these comments to the Transit Review Board, who will submit official
comments to the Metropolitan Council.
Historv
for many years, the primary funding source for transit was a property tax
levied by the Metropolitan Transit Commission, and then the Metropolitan
Council. In 1984, the State Legislature adopted Minnesota Statutes
473.388, allowing communities to "opt out" of the regional transit system.
Twelve suburban communities, including the City of Prior Lake, chose to
take advantage of the opt-out provision. Property tax dollars collected for
transit operations in Prior Lake were then directed toward providing service
in our area. Initially, the City was a member of the Minnesota Valley
Transit Association (MVTA), a joint powers entity, comprised of cities within
a transit area, which pooled their transit funding from the Metropolitan
Council to provide transit service within the transit area. In 2001 the City
Council voted to opt-out of the MVTA to operate its own bus service (Laker
Lines).
In 2001, the Legislature eliminated the authority to collect property taxes
and replaced it with what was then an equivalent financial amount derived
from a portion of the Motor Vehicle Sales Tax (MVST). Shortly thereafter,
MVST revenues began to decline.
All transit funding is funneled through the Metropolitan Council. Declining
revenues and increasing operating costs have created tension between the
Metropolitan Council and some suburban "opt-out" transit providers. To
alleviate some of this tension, members of the Suburban Transit
Association (ST A) have been meeting with the chair, the executive director,
and staff of the Metropolitan Council for the past two years over a variety of
issues from fleet management to transit funding. Although the City of Prior
Lake is not a member of the STA, we have been included in some of these
discussions.
R:\Collncil\2010 Agenda Reports\07 19 10\Transit Policies Agenda Report,doc
Current Circumstances
Metropolitan Council staff has developed the attached draft policies on
Facilities Ownership, Procurement, Vehicle Fleet and Revenue Allocation.
A brief description of each policy follows.
Facilities OwnershiD: This policy applies to all transit facilities other than
fleet vehicles, including park and rides, garages and maintenance facilities.
The policy states any transit facility may be owned by an opt-out provider or
any other public entity with certain restrictions and provisions. These
include operating the site in compliance with all state and federal laws,
ensuring the use of the park and ride is available to the general public, and
ensuring the owner is responsible for operation and routine maintenance of
the site.
The City of Prior Lake currently operates 2 park and ride facilities as part of
the BlueXpress. The Southbridge Crossing Transit Station is owned by
Scott County, and the City leases the Safe Haven site. The future Eagle
Creek Transit Station will also be leased.
Procurement: The procurement policy is intended to guide the purchase of
rolling stock, professional services, construction services and goods related
to transit. The Metropolitan Council passes Federal Transit Administration
(FT A) funds through to local providers. As the initial grant recipient, the
Metropolitan Council is responsible for ensuring all providers meet federal
procurement requirements. Because of our size, the City has done very
little procurement individually. All of our buses have been purchased as
part of the Metropolitan Council. We do, however, contract with our
provider, so we are responsible for meeting the procurement requirements
in this case.
Vehicle Fleet: This policy sets out specific standards for all transit vehicles.
All transit vehicles are owned by the Metropolitan Council, and leased to
the individual transit providers. The Metropolitan Council is seeking to
ensure the vehicles meet general standards. The Council establishes a
base price for the fleet vehicles with standardized options. The individual
providers are responsible for the cost of additional options. The Vehicle
Fleet Policy also outlines maintenance responsibilities. The Metropolitan
Council is responsible for the cost of major component failures, while the
providers are responsible for normal maintenance and repair. The City of
Prior Lake currently operates 3 coach buses. Replacement of these
vehicles is scheduled in the Metropolitan Council's Capital Improvements
Plan. If the City wishes to expand its fleet, the policy requires we must
indicate we have the funds to operate the additional vehicle for at least 3
years prior to the procurement.
Reaional Transit ODeratina Revenue Allocation: The purpose of this policy
is to govern the distribution of regionally allocated funding for transit. There
are 4 basic funding sources for transit operations.
1. Base MVST is the first 21.5% of the MVST dedicated to metropolitan
transit purposes. Suburban providers receive about 17.1 % of the base
MVST allocation. The City of Prior Lake's receives about 2.87% of this
amount based upon the formula. Our estimated MVST revenue for
2010 is $444,000.
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2
2. The Metropolitan Council reimburses about 98% of passenger fares
collected through bus passes and "go-to cards" to the City. We receive
approximately $90,000 to $100,000 per year in fare reimbursements.
3. Federal NTD Funds are earned annually by each transit provider
based upon several factors including the amount of service and
demographics. These funds are designated for capital purposes, such
as maintenance or construction. The City has not typically received
NTD funds in the past; however, in 2011, the City is scheduled to
receive an estimated $55,000 in NTD funds.
4. Regionally Allocated MVST (RAMVST) is the amount above the
21.5% received by the region for transit purposes. This is a result of
the 2006 constitutional amendment designating 100% of the MVST
dollars for transportation purposes. The metropolitan region will receive
36% of the Statewide MVST for transit. Regionally Allocated MVST will
be 14.5% of the total MVST received.
All transit providers are guaranteed the funds provided by the first three
sources. The bulk of this policy relates to Regionally Allocated MVST. The
policy states the RAMVST are intended to preserve existing service and to
fund expansion service bringing the greatest value to the dollar invested.
Transit providers with reserves in excess of 35% of operation costs are not
eligible to receive RAMVST until the reserves are spent down.
The City of Prior Lake transit reserve fund is currently above 35% of our
operating costs. Each year, as revenues decrease and costs increase, we
will be forced to spend down our reserves. At current levels of revenues
and costs, we estimate our reserves will be depleted in 5 years. At that
time, we would be eligible for RAMVST, but would most likely still have to
reduce service.
In order to receive RAMVST, the policy requires transit providers to do
service planning. We currently do service planning, but the level of detail
and the amount of information required by the policy may exceed the ability
of our current staffing levels.
Conclusion
Regional policies are important to ensure equal and efficient operation of
transit services in the region. However, the policies have an impact on the
independent "opt-out" transit providers. The Council may wish to comment
on the perceived impact of these policies on our service.
ISSUES:
As noted, the proposed policies have an impact on how we run our transit
services. Over the last 2 years, members of the STA have been meeting
with the Metropolitan Council to try to resolve issues and formulate
solutions. In 2010, the Legislature directed the Minnesota Office of the
Legislative Auditor (OLA) to evaluate the transit system in the metropolitan
region. The aLA has already begun discussions with the STA and the
Metropolitan Council. We have been advised OLA staff will be meeting
with each transit provider to discuss a number of issues, including the
proposed policies.
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3
In anticipation of this meeting, the Council may wish to consider some of
the following questions:
1. What role should the City of Prior Lake have in providing transit to our
area?
2. What level of local autonomy and decision-making authority is
appropriate for "opt-out" providers such as Prior Lake?
3. What level of oversight should the Metropolitan Council have on "opt-
out" providers?
4. Should the Metropolitan Council serve as both the overall planning
agency for transit services in the region, and an operator of transit
services?
FINANCIAL
IMPACT:
There is no financial impact in review and discussion of these policies.
AL TERNATIVES:
Staff is asking the Council to provide comments, if any, on the proposed
policies. We will then take these comments to the Transit Review Board,
who will submit official comments to the Metropolitan Council.
ATTACHMENTS:
1. Facilities Ownership Policy
2. Procedures for Procurement
3. Vehicle Fleet Policy
4. Regional Transit Operating Revenue Allocation Policy
5. OLA Governance of Transit in the Twin Cities Region Project
Description
6. Star Tribune Articles (2)
Reviewed by:
Frank Boyles, City Manager
R\Collncil\2010 Agenda Reports\07 19 10\Transit Policies Agenda Report,doc
4
FACILITIES OWNERSHIP POLICY
May 2010
INTRODUCTION
Transit facilities are necessary to deliver transit service. This includes passenger
facilities such as park-and-rides, transit stations, and transit centers as well as SUPPOlt
facilities such as garages and maintenance buildings. Some regional transit facilities are
located in areas served by replacement service providers established pursuant to
Minnesota Statutes, section 473.388, commonly referred to as "Opt-Outs."
FACILITY OWNERSHIP
Transit facilities, including those that are part of a commuter rail, light rail, busway or
bus rapid transit line, may be owned by an Opt-Out or other public entity such as a city 01'
cQunty with the following provisions:
1. State and federal law and regulations regarding ownership will always prevail.
Ownership requirements 01' conditions associated with funding sources, such as
Counties Tl'ansit Improvement Board funds, will prevail.
2. Facility use, operation and maintenance must be consistent with all regional
transit policies including, but not limited to, regional transit fares, parking fees,
allowing access to the general public, and allowing use by any regional transit
provider,
3. The Council or other public transit entity may contract with another transit
provider for transit services that serve a transit facility, including one located in an
opt-out area. The Council or other public transit entity must coordinate with the
facility owner to ensure coordinated operations. The facility owner may require a
facility maintenance agreement when the other provider(s) services make up 25%
or more of the trips serving the facility.
4. The facility owner is responsible for routine operation and maintenance pel' the
schedule below, insurance and indemnification, unless agreed to otherwise.
5. If a facility is part of a rail tl'ansitway and not owned by the Council, the Council
01' transitway operator must have a rail platform operating lease agreement with
the facility owner. This agreement must address the legall'elationship between
the operator and owner, operation and maintenance responsibilities, insurance and
indemnification.
6. Standard regional transitway branding and advertising, if applicable as determined
by the Council, must be incorporated into the facility.
7. Any "use" revenues generated under a facility lease, use contract or permit with a
vendor, must first be applied to the routine operations and maintenance ofthe
facility; any excess lease or use revenues shall be applied to transit operations
(mandatory with CYIB capital or operating funding participation), or to the capital
expansion and/or maintenance of the facility.
Metropolitan Council Facilities Ownership Policy
Page 1/2
ROUTINE OPERATION AND MAINTENANCE SCHEDULE
A. Public Utilities - gas; electric; sewer/water/street lighting
B. Private Utilities - phone
C. Contracted Services (routine operational or minor maintenance type)
1. Security monitoring and/or patrol
2. Lawn care/landscaping
3. Snowplowing and removal
4. Waste removal
5. HV AC repair
6. Sitelbuilding lighting & electrical maintenance and repair
7. Plumbing/mechanical maintenance and repair
8. Site/parking deck sweeping
9. Janitorial/pest control services
10. Signage repair/installation
11. Elevator maintenance and annual hydraulic test,
12. Glass replacement
13. Annual parking structure wash down
LONG-TERM MAINTENANCE AND CAPITAL IMPROVEMENT SCHEDULE
1. ArchitecturallEngineering services (sitelinfrastructure inspections and
recommendations)
2. Concrete & Asphalt roadway repair/rehabilitation/replacement
3, Concrete (parking) structure repair/rehabilitation/replacement
4, Building envelope (roof/windows/curtain wall/doors, etc.) &
mechani cal/el ectrical infrastructure repair/rehabilitation/replacement
5. Site improvements (development/landscaping/drainage, etc,) .
6. Security improvements (site/parking deck/bus way lighting, CCTV installations,
gates & fencing)
This policy may be periodically reviewed and revised.
-
Metropolitan Council Facilities Ownership Policy
Page 2/2
PROCEDURES FOR PROCUREMENTS
May 20 to
INTRODUCTION
The Metropolitan Council periodically passes through Federal Transit Administration (FT A)
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 as the subgrantee is
primarily responsible for meeting all applicable federal requirements associated with the receipt
offederal funds including, without limitation, all federal procurement requirements. These
responsibilities apply to all FT A-funded purchases including, without limitation, the procurement
of rolling stock, architectural and engineering services, professional/technical services,
construction services, and goods. FT A's contracting guidance is found in FT A Circular 4220.1 F.
While the Suburban Transit Providers have the primary responsibility for meeting the described
federal requirements, the Metropolitan Council as the initial recipient of the grant funds also has
a continuing responsibility to monitor subgrantee compliance with applicable FT A requirements.
The Council already has procedures in place for the monitoring of subrecipient compliance with
FT A requirements. These procedures also apply to Suburban Transit Providers and are set out in
this document.
It is imp011ant to note that despite the Council's monitoring activities under these procedures, the
Suburban Transit Provider as a subgrantee of federal funds continues to have the primary
responsibility for meeting all applicable federal requirements for procurement. As such, the
Council strongly urges each Suburban Transit Provider to include relevant staff in development
of procurement documents including, in pmiicular, legal staff that represent the Suburban Transit
Provider itself,
APPLICATION OF PROCEDURES
Suburban Transit Providers will follow the Council's Project Procurement procedures below
when issuing procurements involving FT A funds.
There are other types of procurements where the full Proj ect Pl'Ocurement procedures would not
apply. These are procurements (listed below) where Suburban Transit Providers do not solicit
offers but which may be compliant with funding requirements. In these procurements, Suburban
Transit Providers will forward the Subrecipient Contract Initiation Memo to the Project Manager
and will discuss proper procedures with the Project Manager.
~gvbacking
"Piggybacking" is an assigrunent 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 Procurements
Page liS
Interl!ovemmental 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 celtifications are followed and are included in the resulting
joint solicitation and contract documents.
Sole Source
When the goods or services are available from only one source, documentation of the
sole source purchase must include the justification and the authorization to award the sole
source contract. A cost analysis must be perfOlmed to determine if the price is fail' and
reasonable.
MAXIMUM TIMELINES
The maximum timelines for Council turnaround in reviewing procurement documents are listed
below. The maximum times apply only to Council staff reviews and do not apply to actions
needed by others such as FT A.
Pre-Solicitation
Review Subrecipient Contract Initiation Memo (SCIM), Independent Cost Estimate (ICE)
and draft solicitation document including specifications and sample contract within ten
(l0) business days.
Pre-Contract Execution
Complete DBE compliance checks within ten (10) business days as a generalmle.
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 dming 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 FT A, TAB or MnDOT and other parties which may
have other timeline requirements.
Metropolitan Council Procedmes for Procurements
Page 2/5
MONITORING PROCEDURES
Pl'Oiect 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 FT A.
. Federal notice of award received; Council's Grants Manager issues Notice of Grant Award to
the Council's Project Manager,
. Council and sub recipient execute an interagency grant agreement to implement the project.
Proiect Procurement
. Procurements by subrecipients of $50,000 or more require review and approval by Council's
Purchasing and Office of Diversity and Equal Opportunity (ODEO) prior to issuance for
review of compliance with FT A requirements.
. Subrecipient submits a Subrecipient Contract Initiation Memo (SCIM) and an
Independent Cost Estimate (ICE) to the Council Project Manager, who forwards them to
Council's Grants, Purchasing, and Office of Diversity and Equal OpP0l1unity (ODEO)
for review and approval.
. Sub recipient submits a draft solicitation document to the Council Project Manager, who
fOlwards to Council's Purchasing and ODEO for review and approval.
. Solicitation is issued by subrecipient.
. Subrecipient submits all proposals or bids received to the Council Project Manager who
forwards them to ODEO for the DBE compliance check.
. Copies of executed contracts are sent to the Council Project Manager who forwards a
copy to Council Purchasing.
. All contract amendments (financial and non-financial) require prior review and approval
by Council Project Manager who will forward to Council Purchasing, and ODEO as
appropriate.
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 FT A requirements.
Metropolitan Council Procedures for Pl'Ocurements
Page 3/5
. Council Project Manager has primary responsibility for monitoring subrecipient
compliance (Compliance Checklist for Mandatory FT A Procurement Standards attached)
. 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 indemnificationJinsurancelbonding.
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 Council's discretion, be deducted
from the amount of the grant award or funding awarded to the subrecipient.
The following compliance checklist is provided for the convenience of subgrantees and contains
only an outline of federal procurement requirements. The compliance checklist does not purport
to contain all federal requirements to which a sub grantee may be subject as a subrecipient of
federal grant funds. The subgrantee remains responsible for conforming its procurement
processes to all applicable federal requirements for federal funds passed through from the
Council, notwithstanding the Council's review above and the following compliance checklist.
Compliance Checklist
Mamlatory FT A Procurement Standards
FT A Circular 4220.1 F
:..No.,__,.. _ ~.~~~c~t .
,1) !Written Standards of Conduct
'2)' -.- ';ContractAdmiilfstratlo-n-'System- ,_w,__
~35 . -]~W~i~~E!ot~Sl)~l:~~~~~!:~~~":'-~=:- .,_
4) '!prequalification System .
[S) , 'lSy~temfor'Ens'uringMosTEffiCient'a'nd-Economic'Pti-mllase
16Y-lProcurementPoliCies'andProcedures-- .-. ...... ,.--.-.- ---.-
:7) ~naepe~lldent CostEstlmate--- --
;8) !A&EGeograpilfcPreference ....-'--'..
:9)' Unrea~onable Qualification Requirements
i10)' .' UnneceSs-al;y'E~pe;;ienc-eall'dExce~sI~eBon'diilg
c..'........r-......-.;........;.......-.. ........-.'.....,........ ...--...-.----..........-........ -.. '.n....'.......
~ 1) 9~g.~!1~~h~nal ~?Ilf}l~t_~!:!.~!~~~t .....
:12) Arbitrary Action
)3) !Blllnei'NameRestrictions
;14) IGe-ographic'Preferences
'15) lC'ontl'act Pel'iodofPet'formanceiXmiiation
:16)" IWritten"proc\lrement'Sclect'ionp"rocedures -. ".
[~zL..!~_~!~cl tafi~~jl~~9~1~!I~~~iIo.~~~~~t_~1~.a" ...::_.:.....:..::.__
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Metropolitan Council Procedures for Procurements
Page 4/5
T8)-"1A~vm:d-t~Responsible C~ntractors
~-9j--"ls~u~d-a-~d.C~;l1lpieteAgreel1l~~t... ..______h__' .... .. nu.. j
~oY-lNo Splitting [Micro-purchase]..----..-..------..----...---...... ---'-1
r. ---"-."Ji:.--".'-'.''''.. -...---....-.-,-...-.."'-.-.-.--....---, ._.__.n...._.. -.... ....--.-..-.... ".'--. ,..---.- ,-.... ..,. - . .,.-;
i21) .... [l' air and Reasonable Price Determination [Micro-purchase]
~2Y lrviicro::-Pul:chaseDavis"B'acon ..-. - ..... .. ... ., .
~. --- m--' - ...... ...............-...- ---......-..-.- --.-.---- ..--'.--.
23) ;rrice Quotations [Small Purchase]
24)' lCI~ar.Accurate. and Complete Specification -.-
C" - I - . . ,...., '-.".,.. .-............ "-.. -
@?) ..i!'-.~~9~~~.e ~.~!1l.P~tit!()~~T:"Y() or ~~!"~ <:;{)z:rt1?~!it{)r.~
~~>.. .~il~f!1._Fi}{~dXl:i~e.lS_~~,I~d.~.i.dJ.
27) fselection on Price [Sealed Bid]
,__.._ - ..[m ______ ..___.............._.,_ ..,__...,.....__.__.... ........__ __"_'_ _.... .
28) ,Discussions UlUlecessary [Sealed Bid]
29)--1t\.(I\~ertTsedtPubricIze(C'.m.....-......-.---,. .-- .-..-- -". ..-...-...-.
~_. .....,___........ ............__....,.._.._..._._... .........,_ .__..... ..._ ._.....n._________ _... .._....
'30) ,Adequate Solicitation
'31) IStirfiCie-ntBidTime[Seai"e<i'Bicir.... -.... .-- -"-
32) '-lBi,fopen'fng(Se.iied Bid]--"-" . " , .., , ...
33S"!Responslveness [Sealed -s-idT---- - -. -....-
:34) "JLo\-\;e~tP;ic'e-tSealedi3'idf ......... n .--.,'-.'
~j5__ Ji.~~~.~~L~~i~.~J$~<ll~~.13X~I.:=..~..._-_:_~~..
;36) Evaluation [RFP]
J7f...Price.~n~i"'Othel'Factoi.s-iRFPI......-.. .-..-..'-'- .---..--,
;38) 'ls~l~ SO~l'ceTfbthel:Awa~c1isInfeasi'bj~'
:39) ., ;CostAnal"ysTsRequired [Soie-So\lrce]
'40) lEvaiua:ii'o-li of Options' .
41) ;Cost 01' Price Analysis
[42) .. iWl:itten.R~col:d. ofp'rocure~entHistory- -..
:.-.... 'm- . -' ....---..-..;.-..--..-.--......-'.......---..... ......-.--...... - ...----,..........-......-- ,-.....
{43) IDxerclse of Options ,
,_......_.._,..'..._...'_......_.__...'_.._...._..._.. _. _'._'."'.. ,.......__._._.._m...._ ..... .._...,....___ .. ..__,..._,._.. ,... :
;44) put of Scope Changes !
~.n..'...'_..w............'..._... ___.. _'" _._.._.__......._.. ._.._..__.._............ ,__.. .,_mOm. _._j
:45) !Advance Payments !
~"6)- "~l'ogi:ess-Paym-ents-'.'" _.-..-_.....- -.. ..,......,__...,..___on.. --1
~__.. ..1"'....----------- ........-.,.,. ..___.u.._.' __.____ ,.-,.._____ ___.... ." ".__..__.._..__.n___n ~-~--_...._..- ..,
:47) (Time and Materials Contracts ,
;'-' t' ,.-....-----.---- ..-.--. . .... ... ,......".._m_.'......_. --..- . . .- ----------.--.---. - .
A8) ICost Plus Percentage of Cost
~9) ... fLiqllid~tedDamages-Provision-s.-
~O) "lQualiffcationsExclude pdce [A&E]
~h '.]S~riaCp~rceNegotTatjons. tA&'E] . .-.. -..
:..'.. .. '1n'~'."~'.""".''';' ..."..,-, ,...,. .... --..;.. ............. ,... .d._...__.._...__.........
;52) !old Security [ConstructIOn over $100.000]
'53) !PeI:fornl11nces~c~l.it)t. [Constt:uciiono'ver $loO,600f
'~4)-' iPaymetit.~.~~~';I~I~~~!rli~~ion over$l oQ,2..@f..'__'
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This procedure may be periodically reviewed and revised.
Metropolitan Council Procedures for Procurements
Page 5/5
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~ 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.mnus
Web site www.metrocounciJ.org
Publication no. 35-10-032
On request, this publication will be made available in alternative formats to people with disabilities.
Call the Metropolitan Council Data Center at 651 602-1140 or TTY 651 291-0904.
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
Georgeanne Hilker District 11
Sherry Broecker District 12
Rick Aguilar District 13
Kirstin Beach District 14
Daniel Wolter District 15
Wendy Wulff District 16
This policy may be periodically reviewed and revised.
CONTENTS
SELECTION AND PURCHASE ...........,.......... ....................,........ .......................... .... ....... ........1
Policy 1: Selection of Vehicle Type Guidelines...................................... ............. __...............1
Policy 2: Guiding Principles of New Vehicle Purchases........................................................................ 2
Policy 3: Vehicle Ownership............................................................................. ......... ....... 2
MAINTENANCE, REPAIRS, INSPECTIONS....................,................................ ............................3
Policy 4: Mid-life Rehab Costs..................................................................,....................... 3
Policy 5: Major Component Fail ures..................................................................................4
Policy 6: Preventative Maintenance Schedule........ ..... ..........,.................,........................... 5
Policy 7: Quality Assurance Inspections .................... ................................................. .......5
VEHJCLE TRANSFER, REPLACEMENT AND DISPOSAL ..............,.... ......... ........ ........... ....... ..........5
Policy 8: Vehicle Transfer to Another Provider.............. ................ ................. ............. ....... 5
Policy 9: Vehicle Disposal...................... ................ .............................. ............ ..... ...........6
COUNCIL FUNDI NG .. .............. ............. ............... ...:.......... .......... .................. ...... ... ......................... ....... ...........7
Policy 10: Non-revenue Vehicles.. ......... ......... ..... ..................................................... .... .... 7
Policy 11: Maximum Council Funding per Vehicfe Type........................................................ 7
VEH ICLE IDENTITY ..... ........ ....... ...... ....... .............. ............................................................................................ 7
Policy 12: Assignment of Bus Numbers ..............................:..............................................7
Policy 13: Vehicle Graphics....................................................,.............................,.......... 8
FLEET MANAGEMENT.. ................... ........ ...... .............. ............. ........ ............ .......................... ....... .......... .........9
Policy 14a: Spare Vehicle Ratio...............................,........................................................ 9
Policy 14b: Scheduled Standby Vehicles... ...... ....,..................... ........, .......... ....... ....... .......9
Policy 14c: State Fair Fleet.. ................... ....... ....'................... ................................... .......9
Policy 14d: Expansion Buses....... ........... ................................,................................. ....... 9
Policy 15: Metro Mobility Fleet Size ...................................... ........................ ............ ...... 10
VEHICLE EQUIPMENT AND ANCILLARY ITEMS ............................................................................................10
Policy 16: Fare Collection Equipment.............................................................................. 10
Policy 17: Standard Bus Configuration .,..............................,...........................................10
Policy 18: Ancillary Items .......................................................................................,..... 12
STANDARD VEHICLE CONFIGURATIONS......... ............... ..... ...... .......... ...... ..... ....... ................ ........... ....... ..... 14
Exhibit A: 45' Coach Bus .......................,................................................ ...................... 14
Exhibit B: 60' Articulated Transit Bus..... ......................... ............ ....... ...... .............,. ........ 17
Exhibit C: 40' Lowfloor Diesel Bus and Hybrid Bus............................................................ 19
Exhibit D: 30' Transit Bus and Medium-Duty Transit Bus................................................... 22
Exhibit E: Heavier-Duty Small Bus ................,:............................................................... 24
Exhibit F: Light-Duty Small Bus.................................................................... ................. 26
SELECTION AND
PURCHASE
Policy 1:
Selection of
Vehicle Type
Guidelines
Vehicle type should be determined and purchased according to service type and passenger loads.
Interlined and start-up services may provide exceptions.
Vehicle type Passenger
Loads*
Commuter Coach i Min: 30
Max: 57
Articulated Diesel
Transit Bus
. Articulated Hybrid
Tra nsit Bus
40' Hybrid Transit
Bus
40' Diesel Transit
Bus
3D' Transit Bus
Medium-Duty
Transit Bus
Heavier-Duty
Small Bus
Light-Duty Small
Bus
Min: 30
Max:58
(Express)
Max:73
(Urban Local)
i Min: 44
: Max:73
I Min: 29
Max: 48
Min: 20
I Max: 38
! (express)
j Max:48 (local)
i Min: 13
I
i Max: 26
Min: 13
Max: 26
!
'Min: 12
Max: 24
Min: 2-4
pass.fhr.
Max: 6
*Peak loadinQ pattern
Metropolitan Council Vehicle Fleet Policy
Service Type
Express with a one-way
trip length of greater than
15 miles AND duration
greater than 30 minutes
Express, Local
Local
Local
Express, local
Medium volume local; row
volume eXDress
Suburban circulator
services with limited
service window (e.g., peak
only)
i Limited stop or express
I with 4-6 weekday trips or
dial-a-ride services
Limited stop or express
I with 4-6 weekday trips or
dial-a-ride services
Approx.
GVW
! > 26,000
I
! 16,000-
i 26,000
> 14,500
I < 14,500
Minimum
Vehicle Life
i 12 - 14 years**
12 years
--_'OJ
I 12 years
I
I
I
12 years
12 years
! 12 years
7 years
5 years
5 years and:
200,000 (diesel)
175,000 (qas)
1
Policy 2:
Guiding
Principles of New
Vehicle
Purchases
Policy 3:
Vehicle
Ownership
**Coach buses will be programmed in the Capital Improvement Program (CIP) for a 14-year
replacement cycle (except for the six SouthWest Transit (SWT) 2000-year MCI coach buses).
In the first half of 2011, the Council will conduct an APTA-led national peer review to inspect the
six SWT 2000-year MCI coach buses in their 11th year and make a recommendation on the
programmed 14-year coach bus life. If the outcome of the APTA peer review results in a
programmed life of less than 14 years, the CIP will be revised to reflect the recommended
program fife. The six SWT year-2000 coach buses will be transferred to the Metropolitan
Council to operate in their 13th and 14th years.
All federally funded vehicles purchased under agreements not directly executed by the Council shall
be purchased in accordance with the Council's Procedures for Suburban Provider procurements.
Vehicles shall be purchased in accordance with these guiding principles:
1) Upon request by a suburban provider, the Council will include the provider in the development of
bus specifications and coordinate the procurement to maximize quantity and leverage optimal
pricing.
2)The regional fleet will be standardized to the greatest extent feasible in accordance with the
Standard Vehicle Configurations (Exhibits A through F). This standardization does not preclude the
procurement of innovative vehicles for a specific or demonstration purpose.
3)The Council will consider life-cycle costing.
4)The Council will consider commercial availability.
5) Hybrid Buses and Alternative Fuel Buses are appropriate in any vehicle type if:
a) a complete life-cycle cost-ben'efit analysis suggests that they 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.
Vehicles funded in whole or in part by the Council shall be owned by the Council. Fleet vehicle titles
or Certificates of Origin shall be delivered to the Council within 15 days of vehicle acceptance.
Rationale:
It is important to establish a reqional fleet comprehensive olan and effectively manaqe resources in a
Metropolitan Council Vehicle Fleet Policy
2
MAINTENANCE,
REPAIRS,
INSPECTIONS
Policy 4:
Mid-life Rehab
Costs
dynamic and unpredictable environment. Council ownership satisfies the Federal Transit
Administration's requirement for Satisfactory Continuing Control.
Publicly funded vehicles with a useful life of 12 years or more per Council policy will be eligible for
planned mid-life rehabs to include seat upholstery replacements, repair of uneven flooring, other
interior hardware such as grab rails, privacy shields and seat frames, exterior paint, body work, lift
overhauls, articulated joints and bus frames. In the event of a capital funding shortfall, funding
major component failures will be a higher priority than funding mid-life rehabs.
Metropolitan Council Vehicle Fleet Policy .
.3
Policy 5:
Major
Component
Failures
For vehicles in which the Council holds the title or the Certificate of Origin, the Council will cover the
cost of major component work, through the capital budget, that meet the following criteria:
1) Are not included in the manufacturer specified preventive maintenance items, and;
2) Have a cost of $5,000 or more (including the cost of labor) per unit.
Major component work will be completed on an as-needed basis. "As 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 preemptive basis based on technical criteria that indicates
component failure is imminent. The Council's fleet manager will consider verifiable and substantive
technical information for individual vehicles and, based on such information, may authorize
replacement of major components prior to failure. Technical information to be considered in the
decision making process includes but is not limited to:
1. Age of the vehicle.
2. Vehicles of the same make, model and year.
3. Expected remaining life on the engine or transmission.
4. History of that particular vehicle engine or transmission.
5. Type of engine or transmission and the typical lifespan of that particular model.
6. Type of service the vehicle is used for.
7. Results of oil analysis.
8. Results of compression test.
9. Oil consumption trend line.
10.Antifreeze in the ojJ.
l1.Fuel consumption trend line.
Rationale:
An April 2007 study conducted by the FTA entitled Useful Life of Transit Buses and Vans states that
only very large cities with "severe" service conduct planned mid-life overhauls. The majority of
transit agencies across the U.S. invest in major repairs on an as-needed basis. Replacing items on an
as-needed basis assures that funding is utilized as efficiently as possible.
Metropolitan Council Vehicle Fleet Policy
4
Policy 6:
Preventative
Maintenance
Schedule
Policy 7:
Quality
Assurance
Inspections
VEHICLE
TRANSFER,
REPLACEMENT
AND DISPOSAL
Policy 8:
Vehicle Transfer
to An other
Provider
The Council and Lessees of Council-owned vehicles agree to comply with the manufacturer's
preventive maintenance plan (or better) and will provide a written statement to the Council attesting
to this agreement. Any deviation that reduces the level of maintenance from that prescribed by the
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.
The Council will conduct quality assurance inspections to ensure compliance with prescribed
preventative maintenance schedules.
1. The Council will conduct, at its sole discretion, vehicle inspections to include fluid samples.
2. All inspections will be documented and retained on file at the Council.
3. Test results will be shared with the provider.
4. Failure to comply with the manufacturer-specified preventive maintenance schedule will result in
the Council's right to deny payment of costs related to engine, transmission or lift failures.
Rationale:
The Council is obligated to ensure that all assets are being maintained and utilized in a manner most
advantageous to the residents of the metropolitan area.
The Council reserves the right to redeploy regional fleet vehicles to another provider within the
region.
When the transferor is subject to DOT vehicle inspections, vehicles transferred from that provider to
another provider must pass a Department of Transportation (DOT) inspection prior to the transfer of
such vehicle. The transferor shall arrange for the inspection and pay any relevant costs. Any
deficiency identified by the DOT must be fully remedied at the expense of the transferor. The
receiving provider reserves the right to conduct an inspection prior to transfer and any significant
defects identified during that inspection shall be repaired by the transferor.
When the vehicle is transferring from a provider that is exempt from DOT inspections, the receiving
provider shall inspect the buses before transfer takes place, and any siQnificant defects identified
Metropolitan Council Vehicle Fleet Policy
5
Policy 9:
Vehicle Disposal
during that inspection shall be repaired by the transferor. The receiving provider must be given the
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 with a copy of maintenance records of
the bus being transferred.
Rationale:
Used buses must often be transferred to successor contractors at the beginning of a new contract
term. Successor providers are entitled to receive vehicles that have been properly maintained and
are in good working condition, All providers must be held accountable for the proper maintenance of
vehicles up to the date of transfer.
Vehicles that have met or exceeded their useful life, per the rules and guidelines established by the
Federal Transit Administration, the State Department of Administration and Council 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, suburban and private providers must receive prior written or electronic
approval by the Council's Manager of Fleet Services or designee in the Metropolitan Transportation
Services Department before removing the vehicle from revenue service. Prior written or
electronic approval or denial must be received within 14 calendar days of the request or it can be
accepted as tacit approval.
2. Buses shall be sold either from the provider's site or shall be delivered to a site designated by the
Council,
3. All ancillary equipment will be removed by the provider to include, but not limited to, fare
collection equipment, AVL/APC equipment and bike racks unless otherwise approved in writing by
the Council.
4. The provider shall deliver the vehicle to the designated site under its own power unless authorized
in advance by the Council.
5. All vehicle graphics that are established by the Council (for example, regional striping and Council
logos) shall be removed or covered with matching paint at the expense of the provider.
6. All vehicle graphics that were added by the provider shall be removed from the vehicle at the
expense of the provider unless authorized in advance by the Council.
7. Any proceeds obtained through the disposal of a vehicle shall be transferred to the Council.
8. Proceeds obtained by the Council for the disposal of assets shall be deposited back to the capital
fund.
Metropolitan Council Vehicle Fleet Policy
6
COUNCIL
FUNDING
Policy 10:
Non-revenue
Vehicles
Policy 11:
Maximum
Council Funding
per Vehicle Type
VEHICLE
IOENTllY
Policy 12:
Assignment of
Bus Numbers
Rationale:
All publicly funded assets shall be disposed of in a fashion that allows any interested party to have
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.
providers.
The Council will fund a reasonable number of non-revenue vehicles for use by Metro Transit,
Metropolitan Transportation Services and the suburban providers.
The Council will provide a maximum amount of funding per vehicle based on the price of the vehicle
with "standardized" options (see Policy 17) plus 5% to allow for modest upgrades to be determined
by each provider. Any vehicle procurement shall include a pricing proposal for the standard vehicle in
addition to a vehicle priced with the desired options,
. For regional fleet vehicles, the average cost of all ancillary items, excluding fare collection capital, will
be included in the maximum Council funding. All costs in excess 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 all passengers regardless of provider. Decisions made at the local level that
inflate capital costs should not impact all other regional providers.
See also:
Policy 18 on funding-eligible vehicle equipment and ancillary items.
Bus numbers should be assigned to new vehicles based on the following schema:
Provider Name
Metro Transit
Minnesota Valley Transit Authority
South West Transit
Metro Mobility
; Assigned Range of Numbers
0-3999, 7100-9999
4000-4999
I 5000-5999
, 6100-6599 OR 61000-63999 OR 64100-
64199 OR 68000-68999
Metropolitan Council Vehicle Fleet Policy
7
Policy 13:
Vehicle Graphics
Scott County
Other Regional Providers:
. Plymouth Metro Link
. Maple Grove
.Shakopee
. Prior Lake
.MTS contracts
64000-64099
Big Buses 6000-6099 OR 60000-60999
Small Buses 6600-6699 OR 64200-66999
All vehicles funded by the Council shall be outfitted with the following 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 12" x 12" each and shall be placed in an area that does not
interfere with the Council's graphics package. A county or counties that administer Transit Link
dial-a-rlde service may include graphics that identify the local service (for example, "Edina Dial-a-
Ride") in a manner that does not cover or interfere with the Council's graphics package.
3. Large buses, operated by a private contractor under direct contract with the Council, shall display
outward graphics in compliance with the Council's adopted plan. The operator may include up to
two company logos that are no larger than 16" x 16" each and shall be placed in an area that
does not interfere with the Council's graphics package.
4, U.S. DOT numbers must be displayed per U.S. DOT requirements.
5. Buses operated directly by the Council shall comply with the Council-approved graphics package.
6. Buses operated by suburban providers are not subject to this policy, with the exception of
regional transitways.
Rationale:
All vehicles that are linked to the regional transit system and that are funded by the Council should
be readily identifiable as such by the general public. The Council's objective is to create a seamless
service and consistent image to its riders.
See also:
Policy 9, disposal terms numbers 6 and 7.
Metropolitan Council Vehicle Fleet Policy'
8
FLEET MANAGEMENT
Policy 14a:
Spare Vehicle Ratio
Policy 14b:
Scheduled Standby
Vehicles
Policy 14c:
State Fair Fleet
Policy 14d:
Expansion Buses
Regular-route and general public dial-a-ride transit service contracts should utilize the
folfowing service to spare ratio:
Number of Vehicles Appropriate
I
Needed to Deliver I Number of Spare
Service, by Vehicle Type* !Vehicles
1-4 ! 1
5-9 2
10-15 3
16-20 4
21-25 5
26-30 6
----.,....-.-.----.--....-
31-35 7
36-40 ! 8
46-49 9
Active revenue fleets of 50 buses or more cannot exceed a 20% spare factor, per FTA.
*See Policy 1: Selection of Vehicle Type.
As a general guideline, a maximum of one scheduled standby vehicle should be provided for
every SO peak buses.
Rationale: Strategically deployed scheduled standby vehicles maintain service quality and
reliability, and are included in peak revenue-service fleet counts, Because the number of
scheduled standby vehicles directly impacts both operating and capital costs, a guideline for
scheduled standby to peak bus counts is provided.
Vehicles to deliver service improvements for the Minnesota State Fair are not to be counted
as part of the fleet to meet the annual maximum service requirement (vehicles operated in
annual maximum service - VOMS)
Rationale: The Minnesota State Fair is an atypical or sDecial event, per FTA guidance.
Operating funds for a minimum of three years are to be identified for any expansion fleet
prior to initiating the procurement. A fleet management plan that identifies peak vehicle
requirements and calculates spare ratio factor with the expansion vehicles must be provided
Metropolitan Council Vehicle Fleet Policy
9
Policy 15:
Metro Mobility Fleet
Size
VEHICLE EQUIPMENT
AND ANCILLARY ITEMS
Policy 16:
Fare Collection
Equipment
Policy 17:
Standard Bus
Configuration
with an expansion fleet request.
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 orocurement.
Metro Mobility's fleet size will be determined according to the maximum number of routes
operated during the peak periods of March and October. Analysis will be conducted using
March and October data to determine the maximum number of routes in operation during
each period, The fleet size for each contractor shall be equal to the maximum number of
routes at any time during those periods plus a 10-15% spare factor.
Rationale:
It is the Council's responsibility to provide resources to its Metro Mobility contractors so that
all requested trips can be delivered both efficiently and effectively.
The Council will identify needs and purchase fare collection equipment for all regional
providers using a capital account speCifically designated for all regional fleet fare-equipment
needs. The capital budget for fare collection system purchases will include the cost of
installation labor.
Rationale:
The fare collection system is a regional responsibility and should be coordinated and funded
by the Council.
Regional transit providers (suburban transit providers, MTS and Metro Transit) will review
and determine standard bus costs and upgraded technology at least every two years.
The Council will consider the following items, by vehicle type, as included in the base
vehicle price:
Vehicle Type
Coach Bus
Articulated Transit Bus
; Standard~~~~.~:'._____
! Exhibit A
i
! Exhibit B
Metropolitan Council Vehicle Fleet Policy
10
Hybrid Transit Bus
_'_~U"'.'"'''' _.__~__ ..___
40' Transit Bus
30' Transit Bus
Medium-Duty Transit Bus
Heavier-Duty Small Bus
(GVW: >14,500)
Ught-Duty Small Bus
(GVW: ~14,500)
I Exhibit C
".'-"'---.'-".-1
I
!
, Exhibit D
Exhibit E
i Exhibit F
I
,
The Council will fund buses built to the Council's standard bus configurations (Exhibits A
through F). Modifications to these configurations may be approved by the Metropolitan
Council's Regional Administrator.
11
Metropolitan Council Vehicle Fleet Policy
The Council will fund ancillary items limited to those listed in the tables below and up to the
maximum amount shown. The table below shows January 2009 pricing. Adjustments to
these amounts for equipment purchases independent of regional equipment purchased by
the Council shall be made according the change in the Producer Price Indexes as listed
below, as published by the U.S. Department of Labor, Bureau of Labor Statistics Series ID:
Security System Hardware- PCU334310334310
Radio Hardware - PCU3342203342201
Bike Racks - PCU331210331210P
Policy 18:
Ancillary Items
The maximum Council contribution for regional fare collection equipment, AVL and APC
equipment will be adjusted to reflect actual purchase prices.
Expansion Buses: Included Ancillary Items
. "__~"W~_'__H"_._n'_
*Small Buses with
*Small Buses Used ,No Regional Fare
for Fixed Routes ! Collection Equip.
· Security System---r:-Radio-system ANO---"
AND installation installation
. Radio system · Vehicle graphics '
AND installation AND installation
· Fare system . Security System
hardware ' AND installation
installation ! .Spare parts /
· Vehicle graphics diagnostic
AND installation equipment
. · Bike racks AND
installation
· Regional AVL
equipment AND
i nsta lIation
. Spare parts /
I diagnostic
! equipment
Vehiclel ' 30'/40'/ArticulatedJ
I
Service Type ; Commuter Coach
.__.8~_. "~"'-""'_..__n___'_~__~, ~~_-..___...__
Covered Items . Security System
AND installation
. Radio system
AND installation
. Fare system
hardware
installation
, · Vehicle graphics
, AND installation
· Bike racks AND
installation
· Regional AVL
equipment AND
, installation
· Spare parts /
diagnostic
equipment
Max. Council
Contribution ' $3S>:_?.Q~_______.___
Metropolitan Council Vehicle Fleet Policy
$3S,,-~Q~_,__,__. ____._ ._.~_1.(l.,il.Q~_,__.___,_.____..____..
_......_~_WH"___'..._HHn. __.. "Hi ,_"',_. . w '__'_'~4_'_"'_"_.__._ .._.._.._.... ___
12
Optional Item
Max. Council
Contribution
Policy 18:
Ancillary Items
(continued)
Vehicle!
Service Type
Covered Items
Max. Council
Contribution
Optional Item
Max. Council
Contribution
. APe equipment
AND installation
$5,000
" .~. .._" .~.'" .._...... ._.._.._.._..._......_..__,..,__~_~.....'_, r-'.~.__n"._'M .-........_. -.___".~_._..._..._ 'M'
· APC equipment : · AVL/MDC
AND installation 'Equipment AND
: installation
, $5,000 : $5,000
Replacement Buses: Included Ancillary Costs
*Small Buses with No
Regional Fare Collection
Equip./DAR Service
· Radio syste m
installation
· Vehicle graphics AND
installation
. Security System
installation
· Spare parts I
diagnostic equipment
30'/40'/Articulatedl
Commuter Coach
· Security System
AND installation
! · Radio system
, AND installation
· Fare system
hardware and
installation
· Vehicle graphics
AND installation
. Bike racks AND
installation
· Regional AVL
equipment AND
installation
· Spare parts I
diagnostic
equipment
$35,500
: . APC equipment
, AND installation
$5,000
*Small Buses Used
for Fixed Routes
· Security System
installation
· Radio system
installation
· Fare system
hardware and
installation
· Vehicle graphics
AND installation
· Bike rack
installation
· Regional AVl
installation
· Spare parts /
diagnostic
equipment
$6,000
. APC equipment
installation
$500
$1,500
.AVL/MDC equipment
installation
$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.
Metropolitan Council Vehicle Fleet Policy
13
STANDARD VEHICLE CONFIGURATIONS
Exhibit A:
45' Coach Bus
1. Engine SizefType
The engine shall be designed to operate for not less than 500,000 miles without major failure or deterioration, The engine
shall be designated as "Heavy Duty" for use in a mass transit application. The engine shall 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 operate for not less than 500,000 miles on the design operating profile
without replacement or major service. Brand name and specs shall be compatible to the engine chosen,
3. Engine block heater
Special equipment or procedures may be employed to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be cooled by a water-based, pressure-type cooling 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, continuous temperature. The cooling system will maintain a safe and operable temperature range
during the most severe operations possible and in accordance with the engine and transmission manufacturers' cooling-
system requirements. The cooling fan should engage 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.
Metropolitan Council Vehicle Fleet Policy
14
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 V2 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.
7. Frame and Body
The preferred chassis material is stainless steel and the upper frame components may be stainless steel, corrosion-
protected aluminum or corrosion-protected carbon steel. Exterior body panels shall 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 height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. The front and rear bumper shalf not be
damaged as a result of an impact of up to 5 MPH. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant coatings. All joints and connections 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 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:
1. Transit bus amenities to include grab rails, pull 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
Metropolitan Council Vehicle Fleet Policy
15
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
Metropolitan Council Vehicle Fleet Policy
16
Exhibit B:
60' Articulated Transit Bus
1. Engine SizejTvpe
The diesel 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 and shall 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 for use in a
mass transit application. Gross input power, gross input torque and rated input speed shall be compatible with the engine
and provide maximum performance and fuel economy. The transmission shall be designed to operate for not less than
300,000 miles on the design operating profile without replacement or major service, Brand name and specs shall be
compatible to the engine chosen.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be coofed by a water-based, pressure type, cooling 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, continuous temperature in accordance with the engine and transmission manufacturers' requirements.
5. Brakes
Service brakes shall be controlled and actuated by a compressed-air system. 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 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.
Metropolitan Council Vehicle Fleet Policy
17
7. Frame and Body
The preferred chassis material is stainless steel and the upper frame components may be stainless steel, corrosion-
protected aluminum or corrosion-protected carbon steel. Exterior body panels shall 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 height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 mph. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant cOC:1tings. AIi joints and connections 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 that may result from road salt or from 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.
[Delete line space.]The following items are speCified to meet the manufacturer's standard:
1. Transit bus amenities to include grab rails, pull 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
18
Metropolitan Council Vehicle Fleet Policy
Exhibit C:
40' Lowfloor Diesel Bus and Hybrid Bus
1. Engine Size!Type
The diesel and hybrid engines shall be designed to operate for not less than 400,000 miles without major failure or
deterioration. The engines shall be designated as "Heavy Duty" for use in a mass transit application. The engines shall 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 operate for not less than 400,000 miles on the design operating profile
without replacement or major service.
3. Engine Block Heater
Spedal equipment or procedures may be employed to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be cooled by a water-based, pressure-type cooling 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, continuous temperature. The cooling system will maintain a safe and operable temperature range
during the most severe operations possible and in accordance with the engine and transmission manufacturers' cooling- ,
system requirements. The cooling fan should engage 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.
Metropolitan Council Vehicle Fleet Policy
,
19
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 V2 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.
7. Fra me and Body
The preferred chassis material is stainless steel and the upper frame components may be stainless steel, corrosion-
protected aluminum or corrosion-protected carbon steeL Exterior body panels shall 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 height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant coatings, All joints and connections 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 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.
[Delete line space.]The following items are specified to meet the manufacturer's standard:
1. Transit bus amenities to include grab rails, pull cords, destination headers, bus stop enunciators, placard holders (fixed-
route buses only)
2. ADA compliant wheelchair lift or ramp
4. Seats and seat upholstery
5. Exterior body style
Metropolitan Council Vehicle Fleet Policy 20
6. Aooring style and material
7. Exterior paint finish: Powder white is the standard; no clear coat
8. All interior signage to comply with ADA
Metropolitan Council Vehicle Fleet Policy
21
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. Tra nsmission
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 transmission shall be designed to operate 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 to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be cooled by a water-based, pressure-type cooling 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, continuous temperature. The cooling system will niaintain a safe and operable temperature range
during the most severe operations possible and in accordance with the engine and transmission manufacturers' cooling-
system requirements. The cooling fan should engage 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
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.
Metropolitan Council Vehicle Fleet Policy
22
7. Frame and Body
The preferred chassis material is stainless steel and the upper frame components may be stainless steel, corrosion-
protected aluminum or corrosion protected carbon steel. Exterior panels shall 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 height shall be such that when one
bus is parked behind another, a portion of the bumper faces will contact each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant coatings. All joints and connections 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 that may result from road salt or variable weather or road conditions,
[Delete line space.]The following items are specified to meet the manufacturer's standard:
1. Transit bus amenities to include grab rails, pull cords, destination headers, bus stop enunciators, placard holders (fixed-
route buses only)
2. ADA compliant wheelchair lift or ramp
4. Seats and seat upholstery
5. Exterior body style
6. Flooring style and material
7. Exterior paint finish: Powder white is the standard; no clear coat
8. All interior signage to comply with ADA
Metropolitan Council Vehicle Fleet Policy
23
Exhibit E:
Heavier-Duty Small Bus
1. Engine SizefType
The engine shall be designed to operate for not less than 250,000 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 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 transmission shall be designed to operate for not less than 250,000 miles on the design operating profile
without replacement or major service. Transmission brand name and specs shall be compatible to the engine chosen.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be cooled by a water based, pressure-type cooling 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, continuous temperature. The cooling system will maintain a safe and operable temperature range
during the most severe operations possible and in accordance with the engine and transmission manufacturers' cooling-
system requirements. The cooling fan should engage when any fluid is above safe operating temperature.
5. Brakes
Service brakes shall be controlled and actuated by a hydraulic disc system. 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. Brakes shall be self-adjusting throughout 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 112 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.
Metropolitan Council Vehicle Fleet Policy
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 each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 mph. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant coatings. All joints and connections 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 that may result from road salt or variable weather or road conditions.
[Delete line space.]The following items are specified to meet the manufacturer's standard:
1. Transit bus amenities to include grab rails, pull 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
S. Flooring style and material
6. Exterior paint finish: Powder white is the standard; no clear coat
7. All interior signage to comply with ADA
Metropolitan Council Vehicle Fleet Policy
25
Exhibit F:
Light-Duty Small Bus
1. Engine SizefType
The engine shall be designed to operate for not less than 200,000 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 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 transmission shall be designed to operate for not less than 200,000 miles on the design operating profile
without replacement or major service. Transmission brand name and specs shalf be compatible to the engine chosen.
3. Engine Block Heater
Special equipment or procedures may be employed to start the engine when exposed to temperatures less than 30oF, 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 and approved by the procuring agency.
4. Cooling System
The engine shall be cooled by a water-based, pressure-type cooling 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, continuous temperature. The cooling system will maintain a safe and operable temperature range
during the most severe operations pOSSible and in accordance with the engine and transmission manufacturers' cooling-
system requirements. The cooling fan should engage w~en any fluid is above safe operating temperature.
5. Brakes
Service brakes shall be controlled and actuated by a hydraulic disc system. 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. Brakes shall be self-adjusting throughout 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 regarqless of load, the bus
height does not deviate more than Y2 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.
Metropolitan Council Vehicle Fleet Policy
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 each other. The front and rear bumper shall not be
damaged as a result of an impact of up to 5 MPH. The bumper 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 and road salts. It shall maintain structural integrity and original
appearance throughout its service life. All exposed surfaces and the interior surfaces of tubing and other enclosed members
shall be protected with corrosion-resistant coatings. All joints and connections 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 that may result from road salt or variable weather or road conditions.
[Delete line space.]The following items are specified to meet the manufacturer's standard:
1. Transit bus amenities to include grab rails, pull 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
Metropolitan Council Vehicle Fleet Policy
27
I DRAfT
05D2IJQ__u__....<::.~ Deleted:~_
-, Deleted: 708
REGIONAL TRANSIT OPERATING REVENUE ALLOCATION POLICY
I. Background and Purpose
Backl!round
For many years the primary funding source for regional transit operations was a transit operating
property tax levied by the Metropolitan Transit Commission (MTC) and later by the Metropolitan
Council after the two agencies merged in 1994. The property tax provided approximately 65% of
the revenues necessary to fund regular route bus operations with the remainder generated through
passenger fares, the state general fund and other minor SOllJ'ces of revenue such as advertising. In
1984 legislation passed allowing communities to "opt~out" of the regional transit system (M.S.
473.388 Replacement Transit Service) and replac~ the regional transit service with transit service
designed and operated by the community. Communities that ele{:ted to opt-out ofthe regional
service kept 90% of the transit operating property tax generated by their community with the
remaining 10% retained by the MTC/Council to fund transit costs that had system-wide, regional
benefit. The provision allowing communiti~s to opt-out was sunset in 1988 with the existing opt-
out communities grand fathered in and allowed to continue providing transit service. Twelve opt-
out communities currently run their own transit service or provide service through a consortium
with other opt-out communities.
In 2001, the legislature elirilinated the authority for the Council and opt-out communities to levy a
transit operating property tax (beginning with calendar year 2002 property tax payments) and
replaced it with \vhat at the time was an equivalent llmount of state Motor Vehicle Sales Tax
(MVST) revenue. In fiscal year ~0.02 this was 20.5% of the statewide MVST receipts or about
$125 M. The opt-out communities were guaranteed a percentage of MVST that was equivalent to
the proportion of the transit operating property tax levied within their communities. This was
about 17:15% of tile total 20.5% in 2002. Very soon after the property tax was replaced with
MVl:lT, the MVST revenues began to decline (though the state forecasts continued to project
growing revenues). In 2003, in part to offset this decline, the legislature increased the
metropolitan transit share ofMVST to 21.5%, with a reversion back to 20.5% scheduled for fiscal
year 2008. Between FY2002 and FY2007, the amount of revenue generated by MVST was
significantly less than that what would have been generated by the transit operating property tax.
The split ofthese revenues between the Council and opt-out communities, or Suburban Transit
Providers (STPs) as they are 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% ofthe 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 2001 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 FY20 12 of 60% to highway purposes and 40% to transit, with 4% for
Greater Minnesota transit and 36% to metropolitan area transit.
Under the legislation, the base MVST funding (the original 21.5% ofMVST 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 distrfbuted for new, expanded transit services. The passage ofthe
cOllstitutional amendment and the dedication ofthese "new" revenues fundamentally changed the
inter-relationship ofthe 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 ~TP.s because the revenue
allocation was formulaic.
It was originally envisioned that the new transit revenues (the phased-in share ofMVST from
21.5% to 36%, defined as "Regionally Allocated MVST" in this document) would be used for
transit service expansion. The Council also at this time (in 2007) convened a group of Council
and STP staft'. known as the Service Investment Stratesrv l!rouo or SIS. to begin discussing
policies and procedures that would guide the distribution of the Regionally Allocated MVST
revenues for transit expansion purposes. The SIS l!rouo did reach ureliminarv consensus that a,
portion of the llew MVST funds available for expansion purposes cmild b,: tji',ltdbli~E':d to transit
entities usinl! a fixed formula. However. the duolication ofininsitwav fundin>! with anv fixed
fonnula funditlll had not been resolved and. this co:\ceot was contemolated orior to a number of
factors beilll! known or considered including:. '-
. A budget analvsis that showed some STP had adeauate operatinll revenue provided through, +-n.."f Formatted: Bullets and Numbering
the base MVST distribution:,: -
. A budl!et analvsis that showed that some STP had ooeratilllr reserves well in excess of
adooted policv levels:
. The deterioration of the MVST revenues to a level where funds were onl'l available for service
oreservation ourooses. not eXPallsion (see below\
. General fund reductions that have occurred durinz the state budllet deficit: and
. Lack of state funds bein2 orovided for the imolementation ofTransitwavs. most notabl'l,
Northstar Commuter Rail and oJJerations associated with the imolementation ofthe Urbal1
Partllershio Agreement (UPA\
As these activities were occurring, MVST 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 ofrevenue originally anticipated. In fact, in fiscal years 2008 and 2009 (the
first two years of the MVST-dedication phase-in) the metropolitan transit share ofMVST 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 rifthe 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, tbe region had new operating
commitments for services t~tat were legally required 'to begin service including UPA operations on
Cedar and 1-35W BRTs and Northstar commuter rail among others.
2
3
Forecasted Regional Transit
MVST Revenue
240
-.'2006
220 --.. '2007
200 - - . . . 2008
. . . 2009
180 -- - - '2010
160._-Actual
21~.3
213.1.. . .':'- -~1~.6
140
120
100
," f' / 185.3
, , . ." .. ....
" " ,~ ... .. ..... ....
. , ,/ . _ .' 171..7
, II'
" , I .
. .
...--..........
" .
" ,~ ,
.. . ' :' ,
----.... . : : ,..-r_-'" - .. "II'" r
113.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-1fMetropotJlM CauacU
PUrDose
The factors described previously require that policies be established to govern the regional
distribution and administratiqllofRegionally Allot-ated MVST revenues among the region's
transit entities. This policy sets the priorities for use of the Regionally Allocated MVST funds,
establishes principllls to guide the" distribution of Regionally Allocated MVST and provides
procedures for distributing the Regionally Allocated MVST to the regional transit entities for the
identified priorities including, preserving each transit entity's existing level of transit service..f..l!!~"""",,"l'>BIBled: :u_
distributing any remaining Regionally Allocated MVST for prioritized transit service expansion. """1 Del~led: fun~ingcommitt.d-r.gion.1
. sel'\'Jce expansion:
II. Priorities fOJ' Distribution of Regionally Allocated MVST
The regional priorities for the distribution and administration of Regionally Allocated MVST
revenues in prioritized order are:
I. Preservation oftransit service required to meet state and federal mandates.
2. Preservation of existing transit service that meets regional performance standards;
3. Prioritized transit service expansion.
Procedures for distributing the Regionally Allocated MVST to each ofthese priorities are
described in Section IV ofthis policy.
I . u. __.. ..... _u u............. _.n.U_............ _ n...... n........ .__u............... _...'" n............n ._.. u.. w..... .....n....... Deleted: f
III. Principles Guiding the Distribution of Regionally Allocated MVST ~
3
A. General Guldin~ Pl"incinles
The following general principles will guide the procedures and decision-making regarding the
distribution of Regionally Allocated MVST for operating purposes to transit entities within the
region.
. The revenue allocation process will be transparent and information will be shared and open
communication maintained among the transit entities to ensure that informed and equitable
decisions are made and understood by all regional transit entities.
. Funds available for the operations of regional transit services are limited and should be
al1?c~ted in a.mann?r that to the exte~lt oossibl~lIllow~al1.re.l!ionaHransitentities tooreserve ----....-.-1 Delet~~: b~gsgr~.tcslvaluetoeaeh
eXlstml! transit servIce and fund service exoanslOn that brll1<ls the I!l'catest value to the dollar dollar u\\esled,
invested. JJ.~~_~ _~K ~y_ai!~_~!~ f~~~_~_~I_I_~~ .'!-!~})~! _~.I!g!l_<:~_~!!~ .~<:g!,?_~~~ ~!_l!~~!~_p_r~~!j~]~~ _~~P'!~~~l)~._ __..- - -.' f Deleted: u
lost resources and opportunities for all regional transit entities to preserve and improve transit
services and performance.
. Regional transit funds available to expand transit services will be viewed as a regional
Opport\lnity with consideration to all transit entities and. service areas. Recommendations
relZardinl! service exoansion will be made to the Council bv MTS Plannin',! staff. The
recommendations must consider inDut from a committee consistin<l of all relZional transit
entities,.. J1~g!<?_~~I.J~I~~i.l)gA~n~i.t.~. ~yj !L~.~.yj_~}y'<:~_~~_ !~g,i~!1~t~I!~~!<:!"!g~~. !h~!.!l.Pp.!Y..t.<?_?-'-'. _ _ _.. _ _ _.:"--' { Deleted:.; .. ~_..---.l
transit entities and service areas. When available resources are insufficient to support the ....-f Deleted: likewise, r J
preservation of existing service, solutions sllch a.s.fare increases, service reductions and use of
ooeratilll!: reserves will for the purposes of revent.e allocation be assumed to be applied
equitably.
. Due to federal and state mandates, ADA transit service will not be allocated a share or the
regional deficit. Special Transp.ortation Servic~provided above the state and federal
requirem~nt~ l)lay be allocated a share of the regional deficit.
. N. e,,{ rail and bus rapid transit services..'Y.i.l.I.!!9.t~~X"'~~<:~_~t~~<:_~_~R~Q~.~.<?Xpr~~~!:yj!!g-"?~!~H~R..,"-'-'l Del~ted; tha~are not legallyeommined I
t 't . F d' . d t'. 'I b 'd t . db' 'II semeeexpanSlons
ransl service. un mg sources an expenses lor ral. us rapl ranslt an us operatJons~______._{ 1
be identified and tracked separately in the revenue allocation process. Deleted: should
. 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,
. 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.
.'
,E. ODCI'atlnl! Rescl"Vc Policies __ _nn__.nu_u.____.......... .......nUU_ 00.... __nU' no. _nUn._.n.._ uno ._h._____.-,...
Deleted: ,
,
,
,
4
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. For transit entities that are receivin2
Rel!ionallv Allocated MVST funds. <>p.~~!!!1.s.!.~~~~~.l?~.!!!~y..~.l?~~~~~.~~.~~,~~.!J.<?~Y_~P.P!_<?X~~n_____.-.-...-i Deleted: 0
capital projects, but are not available to fund capital projects. Caoital reserves generated bv
~ources of revenue other than MVST. fares and state general funds are available for caoital
proiects.
. Operating reserve policy levels for Council transit entities shall be as followsl:
o The Council will maintain a $15 M MVST reserve for cash flow purposes.
o Metro Transit Bus and Metro Transit Rail will each maintain an 8.3% operating
reserve.
o Metro Mobility and MTS Contracted Transit & Planning will each maintain a 10%
operating reserve.
. Reserves policy levels for STPs will be as follows:
o Reserves may be maintairied at 35% of operating expenses in years when funds are
available to maintain this hivel of reserves while preserving existing service levels.
Regionally Allocated MVSTfunds wiII not be made available for expansion
purposes ifthis will cause operating reServes to fall below 35%.
o When adequate R,egionally Allocated MVST funds are not available to maintain
this level ptn~servesl 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 Coun.oil transit entities below adopted' policy levels, service reductions would be allocated
acros~ all.,tl.m!tie_9. [t?~l?!X~~.s.~~&.ig~~J!y._~!!~~~t~~. ~~Y~T.~~_~~.~~_ !!~l!!!!~~!!~_~.IJ;>_!~~~'.!'.E:~. ~~.t.l)~......' ..i Deleted: providers
25% level and the Council transit entities at adopted policy levels.
. Transit entities may choose to mailltain reserves above the established reserve policy levels but
for the purposes of allocating MVST either to preserve or expand transit service, the amount
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 .
. .;I'rallsit. entities .~~2'_ ~~~~~~~~.112l!!1.11g~_ !.~~~~Y..~_~~~ .l_~~~ _t.l!~_~_~~!ll.~!l~h~_q .9.P.~~?tL,!g x~.s.l?!"~~.. __ ...... ....-. -.lDeleted: STPs
policy levels at times when there are rellional transit ooeratimz deficits., ._..-. Deleted:, but the value of any
n.m.. nn. "m"_' nm"'" n- e.pendltures other "'an those to prese~e
lJansil service will be added 10 ..isling
I .. ,.5en..s for the pmpose of calculating an
J y ~ .~~:~~,~,(~_~ !:.~~.[<~~:J?~~l~t~~~!J~~g.~_~g~Q~~~JJY. Al.I.~_~~t~~. M.Y~I.. _. ....... .____. __. __..... __... "". enlity's re5er'" balance and distn'buling
. Regionally Allocated MVST
....nel~ted-;-.-m-.page Break.m'-'l
I Metro Transit and MIS are considering also adopting a range for their operating reserve policy with 8.3% or 10%
respectively being the minimum reserve during times of transit service preservation and potentially a maximum
reserve of 15% during periods when the availabilit)' of Regionally Allocated MVST allows for higher reserve levels.
5
A. Pl'OCedUl'e to Distribute Re~joilallv Allocated MVST to PI'eserve Tl'ansit Oneratiolls,
Metropolitan Council staff\~i11 develop and maintain a Preserve Transit Service Revenue
Allocation Model for calculating and distributing Regionally Allocated MVST among the transit
entities to preserve existing transit operations levels..
I, Annually by May of each year, the Metropolitan Council will request each transit entity to
provide the following infonnation to allow for the calculation of the amount of Regionally
Allocated MVST necessary to preserve transit operations in the next calendar year:
o Curreilt Service Improvement Plan that documents service expansion plans,
opportunities, and priorities. .
o Current operating reserve policy and an itemization of reserve uses in the prior year
and uses planned for the current year.
o Annual in-service hours (see definitions) in the previous calendar year, current
calendar year and expected annual in-service hours to preserve service in the next
calendar year;
o Adopted operating expenses and fare revenue in the current calendar year'-ll_t:l~m_._m"""'1 Del~ted: audited expense. Crom the
expected preserve operations expenses and fare revenue in the next calendar year prev1ou> cal.ndar year
broken into four expense categories: salaries and benefits, provider contracts, filel,
and all other expenses.
2...-If a transit entity chooses, in May the Council wi 1I use a standard inflationary rate ._u.... { Formatted: Bullets and Numbering J
to estimate a transit entity's'preserve transit operations expenses for the next
calendar year. This will provide for calculation of a preliminary distribution of
Regionally Allocated MVST and allow the Council to adopt a draft operating
budget in Sept~mber. In October, each entity may submit actual proposed expenses
for the following year. The model and calculation of Regionally Allocated MVST
distribution wiII be adjusted for any new inputs and the results incorporated into the
CounciPs final budget adoption. (See Section IV. D. Annual Schedule.)
o A brief explanation 'of any expected year-over-year expense changes by expense
cat~gory should be submitted eitller in Mayor October when actual proposed
. expenses for the next year are submitted. AnnuaIly the Council will provide each
transit entity with regional benchmarks regarding anticipated expense increases
(e.g. fuel increases). These benchmarks are provided as guidance and will not be
available until after develooment ofthe draft ooeratinq budl!et. but will be available
prior to develonment ofthe final ooeratinl!. budlZet. When expense increases vary
from this guidance, additional documentation may be required.
o ,b.udited finall~ialinfor.I!I~!ion from th~oreviousca[endar year sl10uld b~su"'mitt~_(L....'"
bv Julv,
o 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
Transit revenue and expense should exclude costs of providing service under
contract to Maple Grove).
Deleted: <H;>Projected passenger Care
revenue in the cunent calendar )Teat.
audited fare rC\'tflUe from the previous
cattndar year and projected rare re",nue
for Ihe next calendar year, including
passenger fare$ recei,'ed through the
regional Care allocation ronnel..'
2. Metropolitan Council staff will convene ajoint meeting with all transit entities to discuss
the annual operating revenue allocation and model inputs. The budget infonnation
received from each entity will be reviewed,. clarified ifthere are questions and input into
the Preserve Transit Service Revenue Allocation Model. A generic copy of tile model is
6
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 for each transit entity include:
o Each transit entity's share of Base MVST, calculated based upon the previous
February state forecast. 95% of this amount or an amount mutually agreed upon
will be input to the model, with the remaining 5% available to add to an entity's
reserve and used to offset revenue volatility throughout the calendar year.
o State general fund appropriations for specific transit activities such as rail
operations appropriations.
o State general funds for general bus operations will first be distributed to required
ADA services to assure that there will not be an operating deficit. The remaining
state general funds will be distributed to Metro Transit and MTS Contracted Transit
& Planning.
o crIB operating contributions will be e.stimated and distributed to the entity that
wiII receive the CTIB grant (i.e. MTS will show the revenue and exp~nsc for Cedar
A venue and 35W BRT service that is contracted to MVT A or Metro Transit).
o Other revenue, including all revenue other than fares, MVST, federal or general
fund (such as investment income, advertising; commissions) will be calculated as
I % of each transit entity'sa~llual operating expenses.
4. Council staff will input federal funds into'the model as follows:
o Federal NTD formula funds are primarily meant for capital purposes and are 1I0t
required to be used in the operatil.lg I;udget for preventive maintenance or capital
cost ofcontnicting. Any use offedeml formula funds for operating purposes will
reduce that amollnt of funds 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 <;:ontribution of federal funds for operating purposes. For
ease of administration, the federal funds will be shown as revenue in the operating
bllOgd$ of the following transit entities: Metro Mobility and MTS Contracted
Transit & Planning (representing capital costs of contracting) and Metro Transit
(for preventive mainterlance).
o The amount offederal 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
fomlUla fimds in the operating budget.
o MTS Contracted Transit & Planning will include the following federal revenues:
.. Anticipated federal Urban Planning Work Program (UPWP) funds (MnDOT is
I responsible for calculating and notifying the Council regarding its expected level of
federal UPWP funds each year); and
u Federal 5311 funds expected to be available through MnDOT 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.
7
; Deleted: B, Prot.dur.lo Di.trihult
i ntulonallv ,\'lIntaltd 1I1VST for .
:, foq.mIUN\ ~'W
:: Each year a. part of the annual budget
i! cy<le. the MelrOpolitan Coundl will
:; detennine whether a regional transit
i i entity ha, entered into a legally binding
:: commitment to provide a new or
: : expanded transit service within the
:: region.'
.: 1
i i <#:>To be considered a Committed
:: Service Expansion, with a regional
: i obligation to provide funding using
i: Regionally Allocated MVST,lht
:: commitment mustt
i i <1#>8e. legally binding commitment;
:: and'
:: <#>H3\'( bten enl(Ted into or executed
f: with the Mttropoli!an Council's
:: knowledge and wntten approval; and'
A. . II All d MYST .. ft . I . .) :: <N>Havt been committed to at a point in
8. rulY ReglOna y ocate remalnmg a er meetmg eac 1 transit entIty s preserve i i lime where regional transit revenue
service level will be distributed to each transit entity in an amount necessary to bring its :: fore<asls indicated (hallhe new smice
reserve level to the policy level described in Section III. C. Remaining Regionally t! ~o~~:~:~:~ableorsustainableo\'era
Allocated MYST after meeting preserve service operations and maintaining reserve levels : i 1
'II b d' 'b d h h d d 'b' d' S .: IY i' <N>lflhesm'iceexpansionis(onsidmd
WI e Istn ute t ro.ug proce ures escp e tn ectlon .I\.............._.....w_______.....; a Commilled Service E'l'ansion, it will
be funded using Regionally Allocated
MVST 10 the exlenlthat Regionany
Allocated MVST is available before other
proposed servitt expansions are funded. 1
1
<#:>Oncc a tomrnittcd service e:c:pJ.nsion
has been funded through Ute O""rating
Revenue Allocation Process it becomes
part of an entity.s presccve Qperalions
budget in the follo\\ing year and must
meet regional !,<,rformance ..andard.
(after 18 months of operation) similar to
other transit services.,
,
<N:>lf the ",'ailable Regionally Allocated
MVST aner meering the region's
prestn.'e transit ser\;<< needs is not
adequate to fund the Committed Suvice
Expansioo,lhen the Committed Service
Expansion will be funded using
Regionally Allocated MVSr available,o
B. Proccdut'e to Distl'ibute Re~ionRlIv Allocated MVST fOl' Transit SCJ-vicc Expansion w_______ Ihe region forpreservingexi5ling transit
Remaining Regionally Allocated MYST, after)1mding thepreservtltrallsit_operati(}~ls_~_udget~.~~___.\. ~:~ill;;~e~~~i~~~:ro~d\~I~
bringing each transit entity to the ooeratinq reserve policy level, will be lIsed to expand the \\ re<eive anequivalenl Deficit as a Porcent
regional transit system. The intent of this distribution will be to fund high quality transit \\. of Tot. I O!,<,rating Expenses ascalculal,d
in stop. 10 and II in procedure A.'
expansion projects to help the region accomplish the 2030 Transportation Policy Piau's \,::' Deleted~!;
overarching goal of doubling transit ridership within the region by 2030, The amount of . Deleted: prese-'-'e budget' and
Regionally Allocated MYST available for service fixpansion is not known until the Preserve <ommitted service e'pan.ionsar.
Transit Service Revenue Allocation Model and distribution ofRegion~lly Allocated MYST for addressed . ____
service preservation J~~~.I~~~t~!~_~:.. ~~.~~.l.I~_~_!~J.~.9!::~}!~~J!!!C?.!!l..t_~~ _~~.I.~!l.~~~,Y.~?_~,- !!~y"~~gig!!?.I.1L ,_.,.' ....' Deleted: and comrniued .ervice
. expansion
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 combination of fares, 95% of base MYST
and other funds is adequate revenue to preserve its existing operations. Transit entities that
show a Projected Deficit will be expected to use operating reservys to balance their
preserve operations budget to the extent that reserves are available above the policy level
as described in Section m. B. Operating Reserve Policies.
6. A Deficit After Use of Reserves will then be calculated ~s follows: Projected Deficit- Use
of Reserve = Deficit After Use of Reserves. A Total Regional Deficit After Use of
Reserves is the sum of all of the transit entities' QefiClt .After Use of Reserves.
7. Ifthe amount of revenue available from Regi.(lIlally Allocated MYST is greater than the
Total Regional Deficit After Use of Reserves. then each entity will be distributed an
amount of Regionally Allocated MYST equal to its' Deficit After Use of Reserves.
9. Ifthe amount of Regionally Allocated MYST 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 Regio1).illly Allocated MYST) I (slim of expenses for
the transit entities that will be receiving Regionally Allocated MYST) x 100 = Regional
Percelit 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 MYST will have a 2% deficit).
'!....... ________~. __ ._______~__..______.___ _________ __. ._. ____ ______ __e. .._______.._...._______..__.__....._........_____.. ...__.....____J
Deleted: and C
8
Allocated MVST funds that will be made available filr service expansion will not be included in a
transit entity's adopted preserve operations budget but will be amended into adopted budgets
throughout the year as service expansion decisions are made and Regionally Allocated MVST
fimds are distributed for expansion purposes, Funds allocated for service expansion then become
part of a transit entity's preserve transit service operations budget in the following year,
As noted in the Principles section, service expansion funded with Regionally Allocated MVST in
one year will become part of the preserve service base in future years as long as that service
expansion continues to meet regional performance guidelines. (This determination will be made
after the service has been in operation for at least 18 months.) In addiiion, service will only be
expanded if state MVST forecasts indicate that filllding for the service expansion will be
sustainable for at least three years.
. __...... .. __. . _. ...___. .____ _.... _.__.. oo_. ........__ oo._....___.......... oo"'oo __. __..... __. _h_ ........ __. __ __.__., ....,..... __ ___. _.......t Deleted: 1 _ J
Recommendations on how to distribute Re\!ionallv Allocated MVST for transit service exoansion """ Deleted: Barring o!hetr<g\onal policy .
will be made to the Council bv MTS Plannnll staff. The recommendations must consider jnnut decisio?s, it i. not e~peeled..hat smice
. .. =...--., expanSIon fWlded Wl!h RegIonally
from a reQional staff committee com nosed of staff renresentatives from each ofthe transit entities... Alloealed MVST will t1ldicallyshifi the
includilllLMTS Contracted Services. Metro Transit Bus and Rail and each of the STPs. The \. g~neral distrib.ulion ofltansil fundin.g, fot
. ..... .__.____.___.________________..... __. ___ __........ .. __..___.. __,.__.... .__________.-- ......____u__ -----..." d,fferent "..S'l purpo.es(e.g. mobIlity
committee will be convened by the. MTSstaffunon a determinlltion~ as part of the annual ... ... eongestion miligation. eeon"';ie .
operating budl!et process. that Rel!ionallv Allocated MVST funds are' available fortransitse;:..;j~.e u__...\ .... dmlopmen? otacrossdilferenl tran.it
'. . . '",. tOUle types (..c, lUb..loeal, suburban
exoansion ouruoses, All inout from the regional transit entitv committee will be provided to the ...... ... loeal express), or 10 tbe various lransit
Council even ifit is not incoroorated into the transit service exnansion recommendations. The,______ \\\. providers,_, -..
recommendations onh~~y.!~.~J~.t.l:i.~~!~.~<?gi.~J!~.I_'y..~_'l~~.~!~.~.MY.SI.K<!~.~.<:~y.i.~~.~?p_!!~.~!?~.~y.i_'.I.~~__.:\ \\lDelet"t1: based upon n.' ~~
based on ;hree. o.l:i.~~.~y.f.l!~.t~~~.:. _____ __... on, ..___,___... ....... ______............... __m__ ---oo..---...------.....--.u..~:<:>J~:::~:: :~:~;Fil1aJlOe. -]
I. Consistency with the Tiahsnortation Policv Plan:......___...............__.__................______.___.__......, \. \:'f Deleted: eommi1t~~;~- J
2. The service expansion plans identified in each provider's Service Improvement Plan (SIP) and --:;. ~\" 'Det~ted;,-m-- --.----
in the Regional Service Improveme~t Plan (RSIP)~illld....__....._h..._____.___________u_______________.m\\... ~" ~ ..
3. Balancing of distribution of Regionally Allocated MVST across the region over time, . '\:'. '.\f e':I"onson
t. ..., ~ Deleted: (hre~
Each of these factors is described in more detail below. The.recommendations rel!.arding transit \~~\{..J Deleted: r~~
service exoansion to be funded with ReQionallv Allocated MVSY\vill"bi;brou'Q.tiito tlle'CoiincW'--\ '~~;\\'l Deleted:. 1
for aoorcival and amendment into the animal transit ooerating budget, T.................________.__.......___., \. ~\\<l Formatted: Bullets and Numbering )
This oOI;CV does not nreclud~ distributinQ Regionally Allocated MVST funds as a match for \;S:~::::::; ~ ___u_u . m--------i
COIwestion MitiQa. tion Air Ollalitv l2rants or similar I2rants when the rellion is in a service \, ':.\'1 Deleted.: Th~ t~~ri,:;-.k';'and for I
exnonsion oeriod. . \ \ \ transit s......ie. aetoss!he region.
. \\'J ~~reled-~ and..____ ~.- )
1. Consistencv with Transnortation Polic", Plan (RSIP) \,fDeleted: eommittee's ~
All service exoansion il1ust be consistent with the policies and strategies in the Council's adopted . Deleted: Alii~pul from Ih~';~gional .
TranslJortation POliCY Plan. The oolicy olan reauires transit entities to develoQ local service !Tansite.tilycommitlee \\ill be provided
1 to the Council even if it is not
imorovement nlons and to submit the plans for inclusion in a Rell.ional Service Imnrovement Pan.. in<:orporaled inlo the tran,i! service
In addition oronosed service should be consistent with the market service areas and regional. expansion tecommendations.
-!!~.sig..~. ~~!l.I.l_~!l.~~.~~()n.t_ai~~~~..i))_~l?~e!~~~x.9._(lK~~~ l?!~.n. ___ oo..... __.... oo __m............ ....___... __.............. <' --.{ Deleted: ~ .1
.....{ DeJeted;X -- ~-- 1
2. Regional Service Imorovement 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 reviewed bv the staff
9
committee to identify the overall amount of new service that can be funded with available
expansion funds. This will establish a cutoff level in the RSIP for funded projects. OnLy
providers that haye projects that achieve this level of priority within the RSIP will be considered
for additional funding from Regionally Allocated MVST. The projects above the cutoff level will
also set the cap for funding for each provider. No projects below the cutoffwiII be ftmded.
RSTP P,'iol"itized Pmiect
High priority
. Provider I project
. Provider 2 project
In the above example, providers 1,2 and 3 will be eUgible for funding. They wiII only be eligible
for funding up to the level required to implement the projects listed above the cutoff level.
J Deleted: 2. Distribution Based on
:t Relative D~mand for Transit Serv\(':~lIJ
; Once the maximum le\'el of ruodable
i projects for each pro,ider i, ideotified
: rrom lbe RSIP, the balance omoog
provide IS "in be set in proportion to lbe
reglond "'m,il market share ..r\'Cd by
each provider. Thi, regional transit
market share will be calculated based on
lotal population, population densil)', aod
existing transit ridership. The market
share will be adjuSled to reneCI future
gro,,'h plans, as identified in the regional
forecast'
,
The exatt mi1Jkct ~ha[(s have not been.
calculated. but based on CUITent ridership
and funding are ..peeted to be in the
foHo\\ing rangc~:'
,
Metro nansiliMTS . appro.. 9()%~
MVT A .3 to I> percentf
SouthWest- 2 to 4 percenl'/
PlymoUlh. lto 2 pcrcem'
Any giy~n year, the distribution of Regionally Allocated MVST will include a review of past of ~~~~:p~~~v~~ ~:;n~rcenl'/
distribut.ion of funds in addition to projects in the current RS1P. This review will include analysis Prior lake - <I pcreenl'j
of all Regionally Allocated MVST distribution, including that required for preserving existing Y -------
operations and for committed expansions to assure that the distribution is balanced and eauitable . Deleted: The goals oflbe review will
be to en,ur. that over tUne, the balance or
across the iell:iOli over time. ,........ nn..n.. ..___.. ................... ~.......... ........ .......... m.'"__''''' m...._'/ the distribution of Regionally Allocated
.. MVST will rollow the maIkel share
<..... .....nh.......... ........ n' .... m...... ....h.................. ... ..... ............... ................. ............ .......... ~... percentages pleviously.Y
C. Annual Schedule ~ ..... ~_.
, , ....;.__. ........ ..........._....____.... .............-....._......... .......--........ ';"'h'''''' .....n._, ~ Deleted: 10 summary, Regionally
The genenc schedule outhned below Will gUIde the preparatIOn ofthe Preserve TranSit Service "\ "\ Allocated MVST that is available ror
Revenue Allocation Model and adoption of annual transit operating budgets. \ \ service.up","sion wi,Il be distributed in
. ~ appro",male propol1lon 10 each
\ ~ pro\'ider.s tn1nsit market share. on the
... ~. condition that the provider has suitable
\"\ projects identified in Ihe RSIP and with
\ ~ an t-)'e towards balance among providers
\ \ over lime.'
. ',-----_.-~.---_.-
~ Formatted: Tabs: 1.27". left + Not
~oat 1.~
Medium priority
. Provider 3 project
. Provider 2 project
Low Priority
. Provider 4 project
. Provider 1 project
Funding cutoff
.,1:>>alance in DistributiOl1 Qv_tT Time __ __... _...... ____. m.... .___... ___. _....__.. ____ __.. __0 .....___.... m.....___..__j
Since projects across the region will deveLop at different times, the distribution of Regionally
Allocated MVST will need to be bah!!1ced over time, A provider may receive significant funding
one year and less or none the neXt.
May - CouncH 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 !ransit service preservatioO"__m.m.......,
Late June/July - Transportation Committee and Council operating budget presentation and review. ....... Deleted: !L~
September - Council adopts draft Annual Operating Budget . Deleted: andcornrnittedex",nsion
purposes
10
October - STPs adjust proposed oreserve service expenditures for next calendar year and update
operating reserve balance level.
November - Council adjusts the draft operating budget and Regionally Allocated MVST
distribution based upon information submitted in October and based uoon the November MVST
forecas~_ _ _ _ _ _ _ _ ___ ___ ___ __ __n__n_____ ___ _ _n_ _ __n _ _ _ ____ _ __ _ __ ___n__ _ _____ ____ ______ _n_' _ _. _ _. __ ____ ___ __ _n_h_'. .___m_____ _------- { Deleted: .
November - Council determines amount of Regionally Allocated MVST available for transit
ooeratinl!.expansion or for transit caoital exnansion purposes andf~!!~e_nes a ~~g_i~!~~~.$;o~!ll.i.tt_~e ___.;-----{ Deleted: begins .
to Qive inDut regardinl! the distribution of Region all v Allocated MVST funds available for -----1 Deleted: d~ision.makingproc<ssfor
exoansion DumOses. dislributing expansion funds.
December - Council adopts final Annual Operating Budget.
Next Calendar Year On-going - Regionally Allocated MVST Funds for transit service expansion
are amended into adopted operating and caoital budgets.
II
Glossary of Terms
]Jo~~o~_ ~W~I~ .l:3_l!~o~ .MY~!.!~.!h~o!l.1))~~I)~. ~~!J.'-'~.<J.~Y. oth~. fl!.~!.~L?~.~f.MY.:?J ~~4!~.l!!~_<J.!~ 0__" m m.' '0''''. ~.~~~~~: l~~~;;;~ ~~~':,'a~;hldt
metropolitan transit purposes. Suburban Transit Providers (STP).Asaj!;r<mlu.l:~~~Y.~ .~p.p.~~.~i~~~~~Y_, Allocated MVST is the amount re<<i\'ed
17.1 % ofthe base MVST allocation.JJ.l.i~.io~.1}p.p.~<.>~1~1}!~l>.'_~_q~!l.l,!~}:.?1~.~UQ~~!.~!~~~~y.i.<J~o.o --.---;\ :~:sg~:::;~~~~:~~~~~ :;:~~dt
MVST multiplied by a market value adjustment for,each year between 2002 and 2007...__~~~.f;l_________,\\ MVSTR\'enUtS_ By20J2whenthe
MVST is meant to represent the amount each transit entity was receiving from its transit operating \\\ MVSTdedicationisfullyphased.inal
. 2002 . . . 36% for metropolitan area transit"
property taxes prior to 0 ': \': Regionally Allocated MVST will total
" ',\ 14.5%oflolal stalewide MVST r....nueS.
I .l!!!~~_:oof!l:~~~I1.g~~f~!~o!l!.~.!~t?~~Y~~~l.l~~_~~.<:!~i.'-'~~__I!5?!!!o~h~!.g!~gJ~~~_~<.>.!!!!I1.~!~.<?!I.~!~'!l~~SJ!L__m___, \\" ~I d 0 .-
accordance with the regional fare policy or revenue received thro.ugh the Regional Fare Allocation \ ': \ De ete : In lolal ,
fonnula. .... \.' Deleted: (A~ l!,!ed in ,tare statule, M.S.
\, ... .413.388. subdlVlSIon 4, t
\.. :oeleted: )
Expansion Tl'ansit Service: Include transit service or hours that was not being. provided in the
previous calendar year and that is proposed to be funded using Regionally Allocated MVST funds.
This would include service hours added to address overloads.
Federal CMAQ Funds: Congestion Mitigation Air Quality (CMAQ) funds are competitive
federal funds allocated through the regional solicitation process. The process allocates the funds
four-years in advance of funding availability. The funds may be used for capital or operating
purposes, but must be for transit expansion. CMAQ funds must be matched with 20% local funds.
Providers awarded CMAQ funds for expansion of operations or for bus purchases must
demonstrate the availability of operating funds for the expanded service of least three years. Metro
Transit and VanGO! receive an allnual award ofCMAQ funds for travel demand management
activities.
Deleted: CommUled Senice
Elpansion: Is service that is eligible 10
r<<ei\'e Regionally Allo.aled MVST
through the re\Oenue allocation proC~S5
b.cause there is a legally binding
commitmenr 10 provide the se,,;ee; the
commilment was enlered inlo or <<eculed
'with the Mclropolilln COl1JlcWS
knowledge and written approval; and .he
commitmtnt was made at 8 point in time
wheee regional transit rc"roue f'orecasts
indicated that the new service would be
affo(dable or SU5la:mab1e o\'er a period of
lime,
1
Fedel'al ARRA Funds: Federal ARRA funds are funds'T<;ceived by the region for transit
purposes through the American Reinvestment and Recovery Act (ARRA). The funds are available
for transit capital purposeso However, a potion of the funds may be brought into the region's
transit operating budget for preventive mahitenanc(: costs and for capital costs of contracting.
This region will be using $17.6 M offederal ARRA funds in the 2010 operating budget.
Federal New FI'cedom lInd Job Access and Revel"Se Commute (JARC) Funds: New Freedom
and JARC funds are awarded to the region by formula annually. The region is required to
distribute the funds through a competitive solicitation process. New Freedom funds are to be used
for transit services for 9isabled and elderly individuals and JARC ftmds must be used for job
access or reverse commute transit service. The funds are available for both capital and operating
purposes and must be matched 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 oftransit service operated and .
demographic statistics of the service area. MTS reports the service statistics. for the STPs based
upon infonnation submitted by each provider. The ftmds 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 ITA for transit capital purposes but may also be used in a providers
12
operating budget for eligible capital costs (either capital cost of contracting for contracted service
or preventive maintenance costs for directly provided service). .
Fedel'al 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 fimding (typically
SOP 01' base MVST).
Other Transit Revenue: Other Transit Revenue means revenue earned by a transit entity through
various activities other than directly providing transit service to customers. Other Transit Revenue
would include investment income, advertising revenue, revenue generated by transit oriented
development and contract revenue.
Passcngers pCI' In-Scrvice Hour: Passengers per in-service hour is calculated by the total
number of passengers carried divided by the in-service time in hours.
Presen'e Tl'llJlsit Service: Includ~s revenue hours that a transit entity operated in the previous
calendar year using its preserve budget as approved through the regional operating revenue
allocation process. Under the Operating Revenue Allocation policy 90% of a transit entity's
preserve transit service must meet regional perfonnance standards.
~..... ........ ......, ......... ...m.... u......... ...........,.... u............_........ h.. h. m....... .......m... u.......... ... ...... ..1 Deleted: f
Regional Sel-vice Impl'Ovement Plan (RSIP): The, Regional Service Improvement Plan
incorporates the Service Improvement Plans of ea.ch transit entity and is prioritized to identify the
most promising expansion projects that should be implemented should service expansion funding
become available.
Regional Tl'llDl!it PcrfOl'mance Standlll'ds: Regional transit performance standards are used to
evaluate the j'elative productivity and efficiency of transit service provided. The primary
perform~ilce standards lIrc Subsidy per Passenger and Passengers per In-Service Hour.
RCl!ionallv Allocated Motor Vehicle Sales Tax (MVSTI: Re!!ionallv Allocated MVST is the
amount received bv the region for metroDolitan transit Durooses above 21.5% oftota! statewide
MVST revenues. Bv 2012 when the MVST dedication is fullv uhased-in at 36% for metroDolitan
area transit. Regionally Allocated MVST will total 14,5% oftotal statewide MVST revenues.
......{ Oeleted: f
Se;.vic~ "ji~~~;.~:' 'service 'Hollis'are 'defined 'as':'::'The'iimOlini' ;;{iime'a 'veiiiCie'is'spe~fr;c~iiy'jii""""
transit agency service, including all time spent from the firs~ point ofthe 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 Gencl'al Fund (SGF): SOF revenues are appropriated by the Legislature usually biennially
for specific purposes. Metropolitan area transit currently receives SOF appropriations for bus
operations and Hiawatha rail operations.
I3
Subsidy pel' Passeugc.': Subsidy per P!lssenger 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 cost 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 (MVT A)
o SouthWest Transit (SWT)
o Plymouth
o Maple Grove
o Shakopee
o Prior Lake
14
'-""'I V/"l'~
Governance 'of Transit in the
Twin Cities Region
Project Descri()tion
BACKGROUND
May 2010
3. How is transit funded, and does it adequately
balance capital and operating funding needs?
The governance structure for transit in the Twin
Cities region is complex. The Metropolitan
Council is responsible for planning and operating
bus, light rail, and commuter rail services for the
region, but several other entities are also involved.
They include the Counties Transit Improvement
Board, the Minnesota Department of
Transportation, the Transportation Advisory Some legislators have suggested that the 1\vin
Board, regional rail authorities for each of the Cities' multilayered transit governance structure is
seven counties in the Twin Cities region, suburban inefficient and poorly equipped to handle current
transit providers who have "opted out" of Metro and future transit challenges. FUI1her, concerns
Transit (a division within the Metropolitan have been raised that overlapping governance
.council).bus services, private_contr.acted.transjL~..,___ - ___ _structures fOl:funding.and operating transit systems
operators, and numerous project-specific create inequalities and gaps in transit service.
commi.ssions and committees.
Funding for transit in the Twin Cities region is also
complex, with revenues coming from multiple
sources, including the state legislature, federal
grants, the state motor vehicle sales tax, local sales
taxes, property taxes, and fares. Different
communities within the region nnd different modes
of transit rely on these sources to varying degrc.es.
In the past six years, the Twin Cities region has
s~en the development oftwo major transit
corridors: the Hiawatha Light Rail line and the
Northstar Commuter Rail line. Plans for bus rapid
transit corridors along I-35W and Cedar Avenue
and light rail lines along the Central and Southwest
corridors will further expand the transit system in
the region.
EVALUATION ISSUES
l. How is authority for governance, planning,
management, operations, and funding of
transit systems in the Twin Cities region
distributed among state and local
governments?
2. To what extent do the responsibilities ofthese
transit agencies overlap, and is their work
adequately coordinated?
MINNF-SOTA OFFICE OF THE LEGISl.ATlVE AUDl'fOR
4. How do other regions structure and fuud their
transit authorities? To what extent can
Minnesota learn from their experiences?
DISCUSSION
We will evaluate planning and governance of
transit in tile Twin Cities region largely using
interviews, site visits, and surveys. To evaluate
the funding of transit, we will. review Minnesota
statutes and federal regulations and analyze
funding data. To identify how other metropolitan
regions plan and govern their transit systems, we
will conduct an extensive literature review. We
will. attempt to evaluate the performance of the
transit system by using a variety of measures.
However, these analyses may be limited due to
data availability or comparability.
This evaluation will focus on certain transit
systems within the Twin Cities region, including
bus service.provided by Metro Transit and
suburban transit providers, light rail transit, bus
rapid transit, and commuter rail transit. We will
not evaluate the viability of prospective transit
lines, nor will we evaluate specialized transit
services, such as Metro Mobility or transit
provided by the University of Minnesota.
We plap to issue a report in early January 201 I.
Comments or questions regarding this evaluation
should be directed to Judy Randall, evaluation
manager, at 651-296-1227 or
judy .l'8udall@state.mn.us.
651-296-4708
Page 1 of3
Jane Kansier
From: Jane Ukansier@cityofpriorlake.com]
Sent: Wednesday, January 13, 2010 1:19 PM
To: Jane Kansier
Subject: Jane sent you an article from startribune.com
This Article from ptarTribune.com has been sent to you by Jane.
*Please note, the sender's Identity has not been verified.
The full Article, with any associated images and links can be viewed~.
Funding change worries suburban transit systems
LAURIE BLAKE, Star Tribune
Len Simich fears that local control of suburban transit service is slipping away.
After a year of meetings with the Metropolitan Counci'l about bus purchases, fleet needs
and transit funding, Simich, the chief executive officer of SouthWest Transit, says the
regional planning agency Is "over-regulating and micromanaging" and pursuing policies
that "tie our hands" and undermine suburban transit success.
"We have been able to grow all along, and SouthWest was the fastest-growing system in
the state for a number of years," Simich said.
Now, SouthWest, which serves Eden Prairie, Chaska and Chanhassen, can't afford to
grow because of the way the Met Council is dividing state transit dollars, Simich said. "All
the money flows through them, so they control us through the purse strings."
SouthWest is concerned enough about the trend that it plans to discuss it, along with other
issues, during a "summit" with city officials from its service area on Wednesday.
Freedom from centrally controlled transit purse strings was a driving force behind a
suburban transit revolt in the 1980s, when the cities of Plymouth, Maple Grove, Chaska,
Chanhassen, Shakopee, Eden Prairie, Burnsville, Eagan, Apple Valley, Prior Lake,
Savage and Rosemount all withdrew from metro bus service focused on the central cities
and redirected their property taxes to bus services of their own.
Growing through the 1990s and into this decade, SouthWest Transit, Minnesota Valley
Transit, Maple Grove Transit and Plymouth Metro Link built transit stations, bought buses,
sparked transit-oriented development and attracted a new wave of suburban riders.
Then in 2002, state legislators voted to stop using property taxes to pay for transit and
instead tapped a share of the money collected through the state motor vehicle sales tax;
transit advocates argued at the time that the move would allow for greater expansion of
transit services.
In 2006, Minnesota voters went even further and amended the state Constitution to
dedicate 100 percent of motor vehicles sales tax revenues to roads and transit. Since
then, that money has flowed to a fund administered by the Met Council.
And the council has assumed responsibillty for dividing up the money -- to the surprise
and discomfort of suburban transit officials who feel they are getting less than they
deserve based on their service and results.
Tax receipts disappointing
1/13/2010
Page 2 of3
Since 2006, car sales have plummeted and transit funding has grown scarcer and less
reliable. In fiscal year 2009, the tax brought in about $123 million for metro-area transit--
$5 million less than in 2004 and far below the $160 million that would have been expected
if receipts had kept up with inflation, according to the Met Council.
"It is not performing the way anybody thought it would:' Simich said. "With the economy
the way it is, it's not going to turn around anytime soon."
So now that all of the suburban and urban transit services are once again relying on the
same pool of money, and the commuter-rail Northstar Line has been added to the mix, the
suburban pool is smaller than expected.
"It's an extremely tight budget environment," said Metropolitan Council Chairman Peter
Bell. "It's hard for me to overstate how tight it is."
For that reason, Bell said he is meeting with suburban transit officials to agree on how
discretionary money should be awarded. He would even like agreement on how often
buses should be replaced to make spending more uniform.
When suburban systems relied on their own property taxes, they "did have a fair amount
of autonomy," Bell said.
After the shift to the motor vehicle sales tax, the suburbs were guaranteed that they would
receive 17 percent of the new tax proceeds -- the same percentage they had had of the
metro property tax.
The Met Council, however, decides if the suburban systems will receive any money
beyond that base funding.
That means that if the suburban systems want to expand, they have to persuade the Met
Council that they deserve to.
"I want to honor their autonomy" when they use their base funds, Bell said. "But I don't feel
obligated to give them the same autonomy with their expansion dollars."
Bell said money for growth should be allocated to the greatest need around the metro
area. And he noted that Metro Transit provided about 82 million rides in 2008 while the
suburban systems together provided about 4.4 million rides.
'Conflict of interest'
Beverley Miller, executive director of the Minnesota Valley Transit Authority, questions
whether the Met Council can impartially divide expansion money when it is the operator of
Metro Transit.
"I think there is a conflict of interest," she said. "It's hard to serve both sides."
It was difficult for Minnesota Valley when the Met Council decided last year to make more
money available to the cash-strapped Metro Transit by requiring suburban systems to
spend some of their reserves.
As a result, Minnesota Valley now has "less than two months of an operating reserve,"
Miller said. "That is very uncomfortable."
Whether transit is being governed efficiently and effectively will be examined by the state
auditor's office this year. The audit likely will look at local vs. regional control, said audit
manager Judy Randall.
Bell said "constrained resources makes everybody a little more on edge." He's urged
1/13/2010
Page 3 of3
suburban transit officials to "take a deep breath, participate in the audit report and wait
until it comes out. Then we can look afresh,"
Laurie Blake. 612-673-1711
1/13/2010
Transit should be efficient, equitable and accountable throughout the region - by Rep. Alice Hausman, Ju... Page I of2
~~~ Metropolitan Council
> News+Events
Transit should be efficient, equitable and accountable throughout the region
By Rep. Allee Hausman
A recent story In the Star Tribune reported that some suburban transit
providers fear that the Met Council and others are tl)'ing to deny them a
portion of their regional transit funding. What lawmakers like me and the Met
Council are actually doing is trying to ensure that regional transit services are
delivered efficiently and equitably throughout the entire metro area.
Regional transit funding is a complicated stOI)'( but here are the essential facts.
For about three decades( metro area residents living wIthin the "transit taxing
district" - the area served by transit - paid local property taxes to help fund
the transIt services they received.
In 1984, the Legislature allowed communities to "opt out" of Metro Transit
service If they felt they could use their local property tax dollars to provide
more service than they were receiving. Twelve communities did so, forming the
sIx suburban transit operations in the region today.
However, the political and fiscal equation changed considerably in 2001, when
the Legislature eliminated the local property tax for transit operations and
replaced It with a share of the Motor Vehicle Sales Tax (MVST).
State Rep. Alice Hausman
In that law, the Legislature guaranteed the suburban providers a proportionate share of MVST equal to the
property taxes they had been receiving. No longer were these providers spending local tax dollars paid by
residents of their community( but rather regional tax dollars paid by residents of the metro area as a whole.
In hlndsight( it's fair to say that perhaps we should have phased out "opt-outs" when the basic premise of
funding changed. But we did not( in effect, protecting their special status.
Despite the difficult economic climate in recent years, transit planners have worked hard to preserve existing
transit service and avoid fare increases. To do this the Met Council has reduced Metro Transit operating costs and
tapped reserves, while at the same time preserving bus service, beginning Northstar commuter rail service and
continuing to provide the six suburban providers with a greater share of MVST revenues.
Today( transit services are available in 89 percent of the seven-county metro area through Metro Transit,
contracted routes, Metro Mobility for people with disabilitles( and dlal-a-ride service when regular-route transit is
unavailable. Six suburban providers serve 12 communities that encompass 11 percent of the region. Even withIn
these communltles( the Council provides same Metro Mobility and dIal-a-ride service.
In 2008, the Council provided 94.2 percent of the total transit rides In the metro area, but received only 85.3
percent of the transit revenues from MVST and state general fund appropriations. In contrast, the suburban
prOViders provided 5.8 percent of the transit rides, but received 14.7 percent of the MVST revenues and general
fund appropriations.
Some of the suburban operators suggest they are much more efficient than Metro Transit. The facts Indicate just
the opposite:
. In 2008, the subsidy per bus passenger for Metro Transit averaged $2.20. In comparison, the subsidy per bus
passenger for suburban providers averaged $4.28, or nearly twice as much.
. Looking just at express bus service, the subsidy per bus passenger for Metro Transit routes averaged $2.31,
compared with $2.71 for the suburban providers.
. For suburban local service( the subsidy per bus passenger for the Metro Transit averaged $3.65( compared
with a whopping $9.99 for the suburban providers.
In the face of significant shortfalls in regional transit funding, the Met Council last year proposed that the six
suburban providers draw down on their financial reserves before seeking additional MVST dollars. Three of these
providers had reserves equaling 150 percent or more of their annual operating budget, which seemed excessive.
http://www.metrocouncil.org/news/2010/HausmanOpEdJuly2010.htm
7/12/2010
Transit should be efficient, equitable and accountable throughout the region - by Rep. Alice Hausman) Ju... Page 2 of2
The Council proposed a target of 25 percent to 35 percent, stili far In excess of the 8.3 percent operating reserve
historically maintained by Metro Transit.
As a result of persistent funding challenges, the Council has convened a group that Includes representatives of
the suburban provIders to develop funding policies and procedures that are transparent and equItable.
While I applaud the desire of these six providers to grow theIr service and rIdership, we need to be concerned
about regional equity and consIstency. The suburbs located outside of their service area - communities such as
BlaIne, Bloomington, Cottage Grove, Edina, Forest Lake and Woodbury - have just as much right to adequate
transit service. After all, their residents also pay MVST every time they purchase a new or used vehicle.
The suburban bus systems have portrayed thIs as urban resentment, when actually It Is an Issue between
suburbs. Why should some suburbs have the rIght to plan and manage their own service and not other suburbs?
And why should some suburbs have complete autonomy even while they are subsidized by all metro taxpayers?
Clearly, not all suburbs are being treated equally. If taxpayers ever come to understand this, there will be a
revolt.
(Rep. Alice Hausman, DFL -St. Paul, Is chair of the Minnesota House Capital Investment Committee. She wrote
thIs commentary for the Star Tribune.)
-30-
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