2019-59CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: December 9, 2019 RESOLUTION NO: 2019-59
MOTION BY: McDonald SECONDED BY: Tiornhom
RESOLUTION OF SUPPORT FOR SOUTHWEST TRANSIT
WHEREAS, a Replacement Transit Service Program was established by the Minnesota
Legislature in 1984 to continue Metropolitan Transit Service Program under Minnesota Statutes
Section 473.388; and
WHEREAS, the Cities of Chanhassen, Chaska, and Eden Prairie, all being municipal
corporations organized under the laws of the State of Minnesota, pursuant to authority conferred
upon the parties by Minnesota Statutes Sections 471.59, 473.384, 473.388, and related statutes;
and
WHEREAS, the Cities of Chanhassen, Chaska, and Eden Prairie, entered into a Joint
Powers Agreement, to provide Replacement Transit Services dated July 21, 1986, which has
since been restated in 1994, 1996, 2005, 2012, and in 2016; and
WHEREAS, through this Joint Powers Agreement, the agency "SouthWest Transit" was
formed; and
WHEREAS, the Metropolitan Council was charged to provide financial assistance under
Minnesota Section 473.388 which up until 2002 meant 90 percent of the tax revenues which
would accrue to the Council from the tax it levied under Section 473.446 in applicant City; and
WHEREAS, in 2002 funding for transit shifted from property taxes collected for transit
operations within the metro area transit taxing district to the Motor Vehicle Sales Tax (MVST)
account where 21.5% of the MVST collected went towards metro area transit; and
WHEREAS, of the MVST funding allocated for metro area transit, Metro Transit and
the Metropolitan Council's Transit Operations received 82.85 percent of the funding and the
suburban transit providers received 17.15 percent of the funding; and
WHEREAS, in 2008 the MVST funding allocation for metro area transit increased from
21.5 percent of the statewide MVST collection to 36 percent; and
WHEREAS, the Legislature did not mandate a formula for the distribution of the
increased MVST funding for regional transit; and
WHEREAS, on the average Metro Transit/Metropolitan Council has retained over 96%
of the additional MVST funding leaving 4% for the other suburban providers including
SouthWest Transit; and
WHEREAS, SouthWest Transit was provided over $500,000 in transit assistance from
the State General Fund through the Metropolitan Council for the 2018-2019 biennium; and
WHEREAS, beginning with the 2020-2022 biennium, the Metropolitan Council
eliminated any share of the State General Fund provided for transit to suburban transit providers;
and
WHEREAS, SouthWest Transit, along with the other suburban transit providers, all have
capital needs related to expanding and maintaining its facilities, and for bringing in regional
technologies it has not received funding for; and
WHEREAS, the Council has not included any capital requests for any of the suburban
transit providers in its 2020 Legislative Bonding Request; and
WHEREAS, SouthWest Transit is limited by the Metropolitan Council's fare policy to
charge fares that would keep local and special event services cost-effective; and
WHEREAS, SouthWest Transit continues to bring a cost-effective, innovative, and
entrepreneurial approach to transit to some of the fastest growing areas in the State; and
WHEREAS, through its approach, SouthWest Transit has had tremendous ridership
growth, continues to have on-time performance and customer satisfaction ranking above 99%
annually, and has brought innovations such as transit oriented development; coach vehicles; Wi-
Fi, real time mobile apps, and micro -transit to the metropolitan region.
NOW THEREFORE, BE IT RESOLVED, the City of Chanhassen supports
SouthWest Transit efforts to:
Reinstatement or replacement of the funding lost when the Metropolitan Council made
the decision not to provide any of the General Fund it receives for transit to the suburban
systems. This loss amounts to over $500,000 to SouthWest Transit and over $1 million
to MVTA.
Provide an equitable distribution of the RAMVST funding (the additional 14.5% of
MVST funding provided to the Metropolitan Council for all regional transit operations in
2008). Currently 96.4% of RAMVST funding goes to Metro Transit and the
Metropolitan Council, and the suburban providers receive 3.6%. (Note the initial MVST
spilt derived when transit came off the property tax in 2002 had a split of 82.85% to
Metro Transit/Metropolitan Council, and 17.15% to the suburban providers.)
• Provide funding to meet our vehicle and facility expansion needs, as well as to keep our
facilities maintained and in a "state of good repair".
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• Provide funding to incorporate regional technologies we have been denied that include
OMG Routers; Ubisense Transponders; Cubic Go -To Validators; Dead Reckoning
Capabilities; MTrac; Fareboxes; and Ticket Vending Machines.
• Provide an exemption from the regional fare policies as it relates to local and micro
transit service and special events.
Passed and adopted by the Chanhassen City Council this 9t' day of December, 2019.
ATTEST:
I . qw iV&
T d Gerhardt, City Manager
YES
Ryan
Campion
Coleman
McDonald
Tjornhom
NO
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z � �- A&I
Elise Ryan, Mayor JIf
ABSENT