Loading...
HomeMy WebLinkAbout9B - Transit Opt Out MEETING DATE: AGENDA #: PREPARED BY: CITY COUNCIL AGENDA REPORT AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION IN CONFORMANCE WITH THE MVTA JOINT POWERS AGREEMENT CONFIRMING INTENT TO WITHDRAW FROM MVTA EFFECTIVE 12/31/01 AND DEVELOPING AN INDEPENDENT TRANSIT SYSTEM FOR PRIOR LAKE. DISCUSSION: Historv: The City Council previously directed that the City staff supply a report which would address whether the City could withdraw from the MVT A and provide all services presently received by our residents at a cost equal to or less than that required by the MVT A. The City Council has received a written and oral report from Mark Ryan confirming that, in his opinion, the City could supply identical transit services to our residents (commuter, van pool and dial-a-ride) beginning January 2002 at a cost less than or equal to that we presently pay to the MVTA. (See transit presentation agenda item). Current Circumstances: A summary of Mr. Ryan's report is shown below. As the Council is aware, Prior Lake residents contribute $379,950 per year in property taxes to operate transit services to the community. This is the minimum amount of property taxes the City may contribute. If passenger fares generate an additional $35,000, then the total revenues to operate the transit system would be $414,950. Mr. Ryan's report indicates that the City's cost to provide identical services in 2002 would be as follows: r Commuter Express I I_Dial-a-Ride -r- Van Pool .__1 f Administration , l Total I .- $250,006l $15,000 I $65,000 I $50,000 $380,000 I These cost estimates assume that the present Dial-a-Ride and van pool vendors would continue to provide their respective services for the City. The commuter costs are based upon quotes given by various metropolitan area providers including the cost of capital and operations. These are conservative quotes because they do not reflect a year-round service discount or the competition which will occur as part of the bidding process. Nor do they assume receipt of capital financial assistance by the City to buy or lease buses. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER r I T _. .. ,- , _. '----'.-T----' "'w 'I ..- City Council Agenda Report Item 98 January 8,2001 Assuming that the above revenues and expenses are accurate, $35,000 remains available for service enhancements. Conclusion: The City can operate a transit system commencing in 2002 which provides the same services presently received at a cost at or below the current cost. The first step is to adopt and tender a Resolution to the MVT A pursuant to Paragraph 9 of the MVT A Joint Powers Agreement. The Joint Powers Agreement states, "Withdrawal by any party shall be effected by serving written notice upon the other parties no later than January 1 (/h of the year at the end of which such withdrawal is to be effected." ISSUES: Assuming responsibility for transit does entail a number of issues which are addressed below: 1. Sue Walsh and I will become responsible for transit program operation and administration. 2. Given the conservative nature of our assumptions, I am confident that we can provide services well below the total annual amount of our levy and passenger fares. 3. This added financial capacity together with available capital grants will allow us to improve service levels within financial limits. 4. The service is proposed to begin identical to existing service so we can become personally familiar with our riders needs and the system itself before making changes. 5. By operating the system ourselves, the City will not be subsidizing other services as appears to be the case with MVT A where the City provides $379,950 annually and receives $353,654 in service. 6. The new City run system will help our community identity efforts. 7. The City can link its services with other providers to serve areas previously unserved such as the Mdewankanton Sioux Community and Shakopee. 8. The City will know the actual costs of providing service rather than having to rely on estimates. 9. Transit services can be revised to better meet rider needs with minimum bureaucracy. ALTERNATIVES: (1) Adopt the attached resolution withdrawing from the MVTA effective December 31, 2001 and directing distribution of same to all parties of the Agreement. (2) Take no action. RECOMMENDED MOTION: Alternative (1). I:\COUNCIL\AGNRPTS\TRANSIT.DOC ..... RESOLUTION 01-XX I o~~ A RESOLUTION IN CONFORMANCE WITH THE MVTA lVNES OINT POWERS AGREEMENT CONFIRMING THE CITY OF PRIOR LAKE'S INTENT TO WITHDRAW FROM THE MVTA EFFECTIVE DECEMBER 31,2001 TO DEVELOP AN INDEPENDENT TRANSIT SYSTEM. Motion By: Second By: WHEREAS, Prior Lake is a member of the Minnesota Valley Transit Authority (MVTA) in good standing in accordance with the Joint Powers Agreement and Bylaws executed by the various member communities in April 1994; and WHEREAS, Paragraph 9, page 5 of the MVTA Joint Powers Agreement provides that "Withdrawal by any party shall be effected by serving written notice upon the other parties no later than January 1 (jh of the year at the end of which such withdrawal is to be effective."; and WHEREAS, the City Council of the City of Prior Lake has received, considered and discussed an analytical report evaluating this subject and has concluded that the best interests of the City are served by withdrawing from the MVT A and developing an alternate transit system. Now THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The recitals set forth above are incorporated in their entirety as if fully set forth herein. 2. The City Council hereby confirms the City's desire to withdraw from the MVT A Joint Powers Agreement effective December 31, 2001. 3. Pursuant to the Joint Powers Agreement, the City Manager is directed to deliver a copy of this resolution of withdrawal to each MVT A member no later than January 10, 2001. 4. The City Manager is further directed to prepare all necessary documents and actions to assume responsibility for delivery of transit services effective January 1, 2002. PASSED AND ADOPTED THIS 8TH DAY OF JANUARY, 2001. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska City Manager, City of Prior Lake 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER I . . 1'_