1i. Resolution authorizing SW Metro Transit Small Bus Purchase 1 , t
1
4'
CITYOF - �.--
I
I 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
Reno', by City Admmisrato
1
Endorse° i Pt
Modiiie
MEMORANDUM Reje ted
1 Dat /1— t7— 9
TO: Don Ashworth, City Manager Date Submitted to Commission
1 FROM: Sharmin Al -Jaff, Planner I Date Submitted to Council
I DATE: November 15, 1993
SUBJ: Resolution Authorizing Southwest Metro Transit Small Bus Purchase
Attached is a memo from George Bentley, Consultant for Southwest Metro Transit, requesting
approval of a resolution authorizing Southwest Metro Transit the purchase of no more than 22
1 small buses. The cost for these vehicles is provided through Regional Capital Bond Proceeds.
Funding is to be obtained from $6.5 million in legislative bonding authority for use by the
Regional Transit Board for opt -out vehicles.
I Southwest Metro Transit was recently advised by the RTB that the current pool of funds for
private vehicle capital, available through bonds sold under previous statutory authority, will
I expire in 1994. Resolutions from each of the three joint powers communities are required before
the funds can be obtained. Mr. Bentley will be available at the November 22, 1993, City Council
meeting to answer any questions City Council members may have regarding this resolution.
I STAFF RECOMMENDATION
1 Staff is recommending approval of a resolution authorizing Southwest Metro Transit Commission
to purchase up to 22 vehicles for use in its small bus operations.
1 ATTACHMENTS:
1. Memo from George Bentley dated November 8, 1993.
1 2. Proposed resolution.
1
1
1
t;,= BENTLEY H' snc . , INC TEL NO .612 937 -3504 Nov 0:,93 15:35 F' . 02
. V
•
SOUTHWEST METRO TRAN$IT
' 7600 Fxer-utive Drive
Eden Prairie, MN 55344
(612) 934 -7928
November 8, 1993 Fax (612) 937 -7411
' MEMO TO: Chanhassen Mayor and City Council
FROM: George Bentley
1 SUBJECT: Resolution Authorizing Southwest Metro Transit Small
Bus Purchase
SUMMARY
The Southwest Metro Transit Commission (SMTC) requests approval by the City of
Chanhassen of a resolution authorizing SMTC purchase of up to 22 vehicles for
use in its small bus operations. This approval is required in the SMTC Joint
Powers Agreement (JPA), and is being sought from all three JPA cities.
The SMTC has adopted the policy decision to proceed with small bus ownership,
and has approved a bidding process, subject to approval of the three JPA
' cities.
BACKGROUND
SMTC was created through a joint powers agreement in 1986 between the cities
of Chaska, Chanhassen and Eden Prairie. Transit services are provided by SMTC
through contracts with transit service providers. Large bus service for
morning and evening commutes between the SMTC service area and downtown
Minneapolis is provided at the present time by the MTC, and small bus service
including dial -a -ride, reverse commute, the Mall of America shuttle, and
other transit service is provided at the present time by National School Sue
Service, Inc. (NSB), a private provider. All transit service contracts are
competitively bid based upon regional competitive transit policies of the
Regional Transit Board (RTB).
Until recently, the poet of vehicle capital incurred by these transit
providers wan paid with operations funds. SMTC and other opt -out transit
systems sought and obtained a policy from the RTB in 1992 allowing the cost of
vehicle capital to be paid from regional capital bond proceeds, effective
January 1, 1993. Also obtained in 1992 was $6.5 million in legislative
bonding authority for use by the RTB for opt -out vehicles.
The intent of this $6.6 authorization was for use in contract reimbursement to
private providers such as NSB. MTC contract reimbursement was not necessary
' as of January 1, 1993, since the MTC "s vehicle costs were already covered by
previous regional bond sales funded by a regional debt levy.
1
GC BENTLEY ASSOC., INC TEL NO.612 937 -3504 Nov 08,93 15 :36 P.03
I/
SMTC Resolution
Page 2
RECENT DEVELOPMENTS
SMTC has been advised by the RTB that the current pool of funds for private 1
vehicle capital, available through bonds sold under previous statutory
authority, will expire in 1994. Regional bond counsel, in researching the
1992 transit bonding authority, has determined that bonds sold under the 1992
authority can not be used for private vehicle capital contract reimbursement.
This means that the only use allowed SMTC of the 1992 bond authority ie direct
purchase of vehicles.
It is possible for SMTC to request a language change in the statute to allow
contract reimbursement of private vehicle capital from the 1994 Legislature,
and this option will probably be explored. However, the current fleet of
small vehicles is aging and needs to be replaced sooner than the legislative
option will address. Also, SMTC will benefit long-term through vehicle
ownership by assuring quality vehicles in its small vehicle fleet, and by
avoiding the cost of interest on vehicles owned by private providers.
REQUEST
SMTC requests approval of the attached resolution authorizing SMTC to purchase
up to twenty -two (22) vehicles for use in its small bus operations.
1
1
1
1
1
1
1
1
1
GO BENTLEY RSSOC . , INC TEL NO .612 937 -3504 Now 08,93 15:36 P.04
RESOLUTION
1 OF THE
CITY OF CHANHASSEN
1 WHEREAS, the City of Chanhassen is a party to that certain Joint Powers Agreement
establishing a Southwest Arca Transit Commission (Joint Powers Agreement) now known as the
Southwest Metro Transit Commission (SMTC) entered into July 21, 1986;
WHEREAS, pursuant to the Fifth Amendment to Joint Powers Agreement made and
entered into on the 18th day of December 1990, the Commission may not purchase any buses
or motor vchicics without prior written approval of the councils of all of the parties to the Joint
Powers Agreement;
WHEREAS, the SMTC has determined it is necessary and advisable to purchase up to
twenty -two (22) vehicles for use in the SMTC: Small Bus Operation Program;
1 WHEREAS, the purchase of the vehicles will qualify as a capital expenditure and will
qualify for the expenditure of bond proceeds from the Metropolitan Council;
' NOW THEREFORE, Be It Resolved By The City Of Chanhassen, that the City hereby
approves the purchase of up to twenty -two (22) vehicles by the Southwest Metro Transit
Commission for use in its Small Bus Operation Program.
ADOPTED BY THE CITY OF THIS DAY OF , 1993.
Mayor
ATTEST:
1
Clerk — ---- ._...._.....
1
r
1
1
1
1