Loading...
HomeMy WebLinkAbout20080707 - VIII-C-1VIII-C-1 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: July 3, 2008 SUBJECT: Grant Evaluation and Ranking System (GEARS) Committee Delegate Appointment RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action appointing Mayor Paul Hicks to serve as the delegate representing the City of Hastings on Monday July 21, 2008 for the Grant Evaluation and Ranking System (GEARS) Committee election. BACKGROUND City Councilmembers will find attached information that was received on Monday June 23, 2008 from the Metro Cities, AMM, regarding the election process to fill positions on the Grant Evaluation and Ranking System (GEARS) Committee for cities in Anoka, Dakota, Ramsey, Hennepin and Washington County. Please note in the information the background discussion, as this Committee will rank and evaluate eligible transit projects for submission to the metro Counties Transit Improvement Board (CTIB). The election of the Committee members is scheduled for the afternoon of Monday Juiy 21, 2008 at the State Capitol. Each City represented has the opportunity to appoint one elected official to vote that day, for members to serve on the Committee. Cities in Dakota County will vote only for the one position that will represent Dakota County. Mayor Hicks has indicated his willingness and availability that day to serve as the delegate from the City of Hastings, and thus the City Council is asked to take official action, completing that Association of Metropolitan Municipalities We Urge Your City to Send a Delegate to Vote for Your GEARS Committee Representative!!! Dear Mayor and Council Members: In April, a letter was sent from Metro Cities to each of your communities with preliminary information on an election process to fill positions on the Grant Evaluation and Ranking System (GEARS) Committee for cities in Anoka, Dakota, Hennepin, Ramsey and Washington Counties. The following packet is the follow-up information to that letter outlining the finalized elections process. Election Date: July 21S` Applications for the GEARS Committee Due: July 14th Location/Time: League of Minnesota Cities Building -Screening Board from 8:00 a.m. to i2:00 a.m. State Capitol -General Election 1:30 p.m. - 3:00 p.m. Background: The 2008 Transportation Finance Bill, Chapter 152, grants authority to Metro Area Counties to form a joint powers board and implement a quarter cent sales tax for transit purposes in the seven county Metropolitan Area. Five of the seven counties have entered into a joint powers board agreement and levied the tax. These five counties have formed the Counties Transit Improvement Board (CTIB). In accordance with the new law, a Grant Evaluation and Ranking System (GEARS) Committee, consisting of eight elected city officials, five county commissioners and the chair of the Met Council Transportation Committee is to be created for the purpose of ranking and evaluating eligible transit projects for submission to the CTIB. Metro Cities was assigned, by statute, the task of conducting an election to select the city representatives on the GEARS committee. Elections Process: The informational packet includes the following: • An outline of the rules and elections process (Light Yellow) • An application for the GEARS Committee (Blue) • An RSVP card (Gold) • A letter from the CTIB requesting the city appointments to the GEARS committee, including: (White) o An outline of the GEARS committee members responsibilities asfound in law (Green) o An outline of anticipated time commitment for GEARS participants (Pink) o Eligible expenditures for the quarter cent sales tax and a letter from the Department of Revenue outlining projected revenues (Purple) Metro Cities appreciates your city's willingness to participate and we look forward to working with everyone on July 21St. If you have any questions please contact Sarah Erickson at 651-215-4003 or sarah(a~amm 145.or~ Sincerely, anis Callison Mayor, City of Minnetonka President, Metro Cities 145 University Ave W • St. Paul, MN 55103-2 44 c Phone (651) 215-4000 • Fax (651) 281-1299 s www.amm145.org ,<T,,. DAY OF THE ELECTION -Monday, July 21St 2008 8:00 a.m. - 12:00 p•m• Screening Board (SB) - A screening board will be responsible for screening all applicants who wish to be participating members of the GEARS Committee. The SB will submit no more than three candidates from each of the six geographic districts: Anoka, Dakota, North Hennepin, South Hennepin, Ramsey and Washin tg on. • The Screening Board is made up of mayors of cities with the largest populations from the six designated geographic areas who are not running for the GEARS committee. o Anoka - TBA o Dakota -Burnsville: Mayor Elizabeth Kautz o HenneRin -South: Bloomington: Mayor Gene Winsted & North: Brooklyn Center Tim Willson o Ramsey -Maplewood: Mayor Diana Longrie o Washington -Cottage Grove: Mayor Sandra Shiely 12:00 - 1:30 -Lunch (additional screening time if necessary and SB deliberation) j1'ransition fi°om the League Building to the Capltol~ :00 - 3:00 n.m. • Election of Gears Members -All elected officials will report to room 123 of the State Capitol. There will be a brief welcome and introduction followed by all cities breaking up into groups by counties. o Room 107 - Ramsey County City Delegation o Room 112 - Dakota County City Delegation o Room 15 -Anoka County City Delegation o Room 123 - North and South Hennepin County City Delegation o Room 318 - Washington County City Delegation City Deliberation -The chosen candidates will be introduced and allowed to give a brief introduction and rationale for his/her appointment. A brief Q & A session will be moderated by staff, with a secret written ballot process to follow. Who is Allowed to VOTE - o Each city in attendance will have one vote - ^ Example: Each City in Anoka County will have one vote and be voting for the Anoka County Representative on the GEARS Committee in room 15 of the Capitol. o The city must name its delegate voter on the RSVP card The candidate who receives the most votes in each geographic district wins. METRO CITIES Mead~4an of Ma6opolBan MunklpcGlW Contact Information Sazah Erickson 651-215-4003 sarahna.amm 145.ore June 20, 2008 RULES for the ELECTION PROCESS HF 2800 (Chapter 152) -Cities in participating counties are guaranteed at least one vote on the GEARS committee per county and one additional vote for every 400,000 people. Population numbers: We will be using population estimates calculated by the Metropolitan Council under M.S. 477A.011, Subd. 3. Anoka: 328,614 - 1 City Rep on the GEARS Committee Dakota: 391,613 - 1 City Rep on the GEARS Committee Washington: 228,103 - 1 City Rep on the GEARS Committee Ramsey: 51 x,059 - 2 City Rep s on the GEARS Committee St. Paul: 286,620 Suburban: 228,439 's-~, Hennepin: 1,152,508 - 3 City Reps on the GEARS Committee Minneapolis: 387,970 *Suburban North: 370,359 *Suburban South: 391,256 Ei hg_ t City Seats Total: Minneapolis and St. Paul will have standing appointments as one of the Hennepin and Ramsey County GEARS Committee representatives. The cities of Minneapolis and St Paui will not participate in the elections process, bat will instead appoint a representative from their respective cities. Rationale: St. Paul has half the population in Ramsey County and Minneapolis has one third the population in Hennepin County. Voting Procedure for Six;Remaining_Seats: • Each city will be allowed one vote. The city must designate its delegate on the attached RSVP form. • Voting will be done on written secret ballot. *Roughly dividing by: Hwy 12/ 394 Contac# Information Sarah Erickson 651-215-4003 saran a.amm 14~.or2 June 9, 2008 A~~lication for GEARS Committee Candidate Instructions: • This application must be returned to Metro Cities by July 14th in order to be eligible to participate in the elections process. • The applicant must be an elected official • A city may submit the name of only one elected official for application to the GEARS committee. • Any Mayor participating on the Screening Board is not eligible to run as a GEARS committee candidate. • The application may be completed manually and mailed back to Metro Cities or it may be filled in online at amm145.or~ and submitted electronically to laurie(a~amm145.org Metro Cities 145 University Ave. W St. Paul, MN 55103-2044 On a separate sheet of paper or electronically please answer the following questions: 1) Please describe your regional and long term vision for metropolitan area transit. 2) Please describe your experience in public service. 3) Please describe any interest or experience dealing with transportation particularly transit. 4) Please outline any additional participation in other metropolitan or statewide organizations and your record of participation. 5) Please add any additional remarks you think might be helpful. Counties Transit Improvement Board A Joint Powers Board of the Counties of Anoka, Dakota, Hennepin, Ramsey and Washington June 19, 2008 The Honorable Jan Callison, President Metro Cities 145 University Avenue West Saint Paul, MN 55103 Dear Mayor Callison: On behalf of the Counties Transit Improvement Board (CTIB), 1 am writing to request that the Association of Metro Municipalities hold, as soon as practical, the election of the city representatives to the CTIB's Grant Evaluation and Ranking System (GEARS) committee. As you may be aware Anoka, Dakota, Hennepin, Ramsey and Washington Counties have created the CTIB in order to administer the new quarter-cent sales tax for transitway development in the five counties. We are very excited about this new dedicated source of revenue and the system of transitways it will build which will allow us to better serve the residents and businesses of the five- county area. We apprecia#ed the city's support for the transportation bill this year and welcome the participation of the cities in the evaluation process. We believe the new law acknowledges the important role of local elected officials in identifying needs and implementing these critical transit projects. The GEARS committee will consist of five county commissioners appointed by the county boards, eight city officials and the chair of the Metropolitan Council Transportation Committee. The GEARS committee will be responsible for ranking and evaluating eligible transit projects for funding by the CTIB. It is CTIB's intent to act quickly to meet certain urgent funding needs. We anticipate that the CTIB will solicit its first round of grant applications later this summer. This first solicitation will be a streamlined and limited process, in order to address the critical concerns. It is our hope that GEARS will be established within the next month and be ready to start work with us later this fall with this exciting new process. It is our plan to hold a workshop in mid-August to fully brief GEARS committee members on roles, responsibilities and the 2008 grant process. it is important for you to know #hat the CTIB has only met twice and is working hard to address the issues arising in the development of a new organization charged with such an important responsibility. At this point, we have more questions than we have answers. We will work to keep you informed as we progress. We would appreciate a report on your elections at the next meeting of the CTIB on July 24th. CTIB 477 Selby Avenue, Saint Paul, MN 55102 June 19, 2008 Page Two The CTIB is looking for candidates for the GEARS committee who have a regional, long-term vision for the metropolitan area, experience in public service, an interest in transportation particularly transit, a commitment to the process and a track record of participation in other metropolitan or statewide organizations Attached is a copy of the law governing the GEARS committee, an ou#line of the anticipated time commitment for GEARS participants, a list defining eligible expenditures for the quarter-cent sales tax and a letter from the Department of Revenue outlining projected revenues. f., Thank you for your participation and commitment and we look forward to working with you. Sincer , r Peter McLaughlin, Chair Counties Transit Improvement Board Attachment GEARS Committee Member Responsibilities as Found in Law Article 4 -Local Option Sales Tax Language (HF 2800) ARTICLE 4 ie:24LOCAL OPTION TAXES ia.2s Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to ia.26 read: ie.2~ Subdivision 1. Authorization; scope. (a) A political subdivision of this state may 18.2s impose a general sales tax (1) under section 297A.992, (2) under section 297A.993,53) if 18.29 permitted by special laws or (4Zif the political subdivision enacted and imposed the tax is.3o before the effective date of section 477A.016 and its predecessor provision. 1s.31 (b) This section governs the imposition of a general sales tax by the political is.32 subdivision. The provisions of this section preempt the provisions of any special law: 18.33 (1) enacted before June 2, 1997, or 19.1 (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 19.2 provision from this section's rules by reference. 19.3 (c) This sections does not apply to or preempt a sales tax on motor vehicles or a 19.4 special excise tax on motor vehicles. i9.s Sec. 2. (297A.9921 METROPOLITAN TRANSPORTATION AREA SALES TAX. 19.6 Subdivision 1. Definitions. For purposes of this section, the following terms have 19. ~ the meanings >;iven them: 19.9 (1) "metropolitan transportation area" means the counties participatin ig_n the ioint 19.9 powers agreement under subdivision 3; 19. io (2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin, 19.13 Ramsey, Scott, or Washin on; 19.12 (3) "committee" means the Grant Evaluation and Ranking System {GEARS) 19.13 Committee; 19.14 (4) "minimum guarantee county" means any metropolitan county or eligible county 19.IS that is participatin ig n the joint powers agreement under subdivision 3, whose proportion 19.16 of the annual sales tax revenue under this section collected within that county is less 19.17 than or equal to three percent; and 19.1s (5) "population" means the population, as defined in section 477A.011, subdivision 19.19 3, estimated or established b1?uly 15 of the year prior to the calendar year in which 19. zo the representatives will serve on the Grant Evaluation and Ranking System Committee 19.21 established under subdivision 5. 19.22 Subd. 2. Authorization; rates. (a) Notwithstanding; section 297A.99, subdivisions 19.23 1 2, and 3, or 477A.016, or any other law, the board of a county participating in a 19.24 joint powers agreement as specified in this section shall impose by resolution (1) a 19.2s transportation sales and use tax at a rate ofone-quarter of one percent on retail sales and 19.26 uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle purchased 19.27 or acquired from andperson engaged in the business of selling motor vehicles at retail, 19.2s occurring within the jurisdiction of the taxing authority. The taxes authorized are to 19.29 fund transportation improvements as specified in this section, .including debt service on 19.30 obligations issued to finance such improvements pursuant to subdivision 7. 19.31 (b) The tax imposed under this section is not included in determining if the total tax 19.32 on lod ink in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986, 19.33 chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article 19.34 12, section 87, or in determining a tax that may be imposed under any other limitations zo.1 Subd. 3. Joint powers agreement. Before imposing the taxes authorized in zo.z subdivision 2, an eligible county must declare by resolution of its county board to be part zo.3 of the metropolitan transportation area and must enter into a joint powers agreement The zo.4 joint powers agreement: zo. s { 1) must form a joint powers board as specified in subdivision 4- zo. 6 {2) must provide a process that allows any eligible county by resolution of its county zo.~ board, to join the joint powers board and impose the taxes authorized in subdivision 2• zo.a (3) may_provide for withdrawal of a participatin county before final termination of zo.9 the agreement; and zo.1o {4) mawprovide for a weighted voting system for joint powers board decisions zo.11 Subd. 4. Joint powers board. {a) The joint powers board must consist of one zo.1z or more commissioners of each county that is in the metropolitan transportation area za. 13 appointed by its county board and the chair of the Metropolitan Council who must have 20.14 voting rights, subject to subdivision 3, clause L4). The joint powers board has the powers ~F`°• zo.1s and duties provided in this section-and section 471.59. 20.16 (b) The 'off int powers board may utilize no more than three-fourths of one percent of zo.1~ the proceeds of the taxes imposed under this section for ordinary administrative expenses zo.1s incurred in carrying out the provisions of this section. Any additional administrative zo.19 expenses must be paid by the participating counties. zo.zo (c) The joint powers board may Establish a technical adviso roup that is separate zo.z1 from the GEARS Committee. The group must consist of representatives ofcities counties zo.zz or public agencies, includin{~ the Metropolitan Council. The technical advisory. roup zo.z3 must be used solely for technical consultation purposes. 20.24 Subd. ~. Grant application and awards; Grant Evaluation and Ranking System zo.zs (GEARS) Committee. {a) The joint powers board shall establish a rant application zo.z6 process and identify the amount of available funding for grant awards Grant applications zo.z~ must be submitted in a form prescribed by the joint powers board An applicant must zo.za provide, in addition to all other information required by the joint powers board the zo. z9 estimated cost of the project, the amount of the grant sought possible sources of funding zo.3o in addition to the grant sought, and identification of any federal funds that will be utilized zo.31 if the grant is awarded. A grant application seeking transit capital funding must identify zo.3z the source of money necessary to operate the transit improvement. 20.33 {b) The joint powers board shall establish a timeline and procedures for the award of 20.34 rants, and may award grants only to the state and political subdivisions. The board shall zo.3s define objective criteria for the award of grants which must include but not be limited to 20.36 consistency with the most recent version of the transportation polioplan ado tp ed by the z1.1 Metropolitan Council under section 473.146. The joint powers board shall maximize the z1. z availability and use of federal funds in projects funded under this section. 21.3 (c) The joint powers board shall establish a GEARS Committee which must consist 21.4 Of: z1.s (i) one county commissioner from each county that is in the metropolitan z1.6 transportation area, appointed by its coun board- z1.~ {2) one elected ci representative from each county that is in the metropolitan z1. a transportation area; z1.9 (3) one additional elected city representative from each county for every additional 21.10 400,000 in population, or fraction of 400,000, in the county that is above 400 000 in 21.11 population; and z1.1z (4) the chair of the Metropolitan Council Transportation Committee. 21.13 (d) Each ci representative must be effected at a meeting of cities in the metro op titan 21.14 transportation area, which must be convened for that purpose by the Association of z1.1s Metropolitan Municipalities. z1.1s (e) The committee shall evaluate. rant applications following objective criteria z1.1v established by the joint powers boazd, and must provide to the joint powers board a z1.1s selection list of transportation projects that includes a priority ranki~ zi.i9 (f) A grant award for a transit project located within the metropolitan area, as defined zi.zo in section 473.121, subdivision 2, may be funded only after the Metropolitan Council zi . zi reviews the project for consistency with the transit portion of the Metropolitan Council zi.zz polioplan and one of the following occurs: zi.z3 (i) the Metropolitan Council finds the project to be consistent; zi.z4 {2) the Metropolitan Council initially finds the project to be inconsistent, but after a zi.zs good faith effort to resolve the inconsistency through negotiations with the joint op veers zi.z6 board, agrees that the grant award may be funded; or zi.z~ (3) the Metropolitan Council finds the project to be inconsistent, and submits the zi . ze consistency issue for final determination to a panel, which determines the project to be zi.z9 consistent. The panel is composed of a member appointed by the chair of the Metropolitan zi.3o Council, a member appointed by the joint powers board, and a member a reed upon b~ 21.31 both the chair and the joint powers board.. zi.3z (g) Grants must be funded by the proceeds of the taxes imposed under .this section, 21.33 bonds notes, or other obligations issued by the joint powers board under subdivision 7. zi.34 {h) Notwithstanding_the provisions of this subdivision, in fiscal year 2009, of the 21 .35 initial revenue collected under this section, the joint powers board shall allocate at least 21.36 $30 783,000 to the Metropolitan Council for operating assistance for transit. zz. ~ Subd. 6. Allocation of grant awards. (a) The board must allocate grant awards zz.z only for the following transit purposes: zz.3 (i~ capital improvements to transitways, including, but not limited to, commuter zz.4 rail rolling stock, light rail vehicles, and transitway buses; zz.s (ii) capital costs for park-and-ride facilities, as defined in section 174.256, zz.6 subdivision Z; zz.~ (iii) feasibility studies, planning, alternatives analyses, environmental studies, zz. a en ing Bering=property acquisition for transitway purposes, and construction of transit zz.9 ways; and zz.io (iv) operating assistance for transitwaYs. zz.ii (b) The joint powers board must annually award grants to each minimum guarantee zz. iz county in an amount no less than the amount of sales tax revenue collected within that zz.i3 coup zz. i4 (c) No more than 1.25 percent of the total awards may be annually allocated for zz. is planning, studies, design, construction, maintenance, and operation of pedestrian pro rg ams zz.i6 and bicycle programs and pathways. zz.i~ Subd. 7. Bonds. (a) The joint powers board or any coon , acting under a joint zz.is powers agreement as specified in this section, matey resolution, authorize, issue, and sell 22.19 its bonds, notes, or other obligations for the purpose of funding_grants under subdivision zz.zo 6. The joint powers board or county also, by resolution, issue bonds to refund the zz.zi bonds issued pursuant to this subdivision. zz. zz (b) The bonds of the joint powers board must be limited obli at~~ayable solely zz.z3 from or secured by taxes levied under this section. zz. z4 (c) The bonds of any county may be limited obli at., ions, payable solely from or zz.zs secured by taxes levied under this section. A county may also pledge its full faith, credit, zz.z6 and taxing~ower as additional security for the bonds. zz.z~ (d) Bonds may be issued in one or more series and sold without an election. The zz.zs bonds shall be secured, bear the interest rate or rates or a variable rate, have the rank or zz.z9 priority, be.executed in the manner, be payable in the manner, mature, and be subject to zz.3o the defaults, redemptions, repurchases, tender options, or other terms, and shall be sold 22.31 in such manner as the joint powers board, the regional railroad authority, or the county zz.3z may determine. 22.33 (e) The joint powers board or any regional railroad authority or any county may 22.34 enter into and perform all contracts deemed necessary or desirable by it to issue and secure. zz.3s the bonds, including an indenture of trust with a trustee within or without the state. z3 . ~ ( Except as otherwise provided in this subdivision, the bonds must be issued and z3. z sold in the manner provided under chapter 475. 23.3 (g) The ~ol int powers board or any regional railroad authori wholly within the 23.4 metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or 23.s other obligations for the purposes and in accordance with the procedures, set forth in 23.6 section 398A.07 to fund grants as provided in subdivision 6. The bonds of any re final 23.7 railroad authority may be limited obli ations, payable solely from or secured by taxes 23. s levied under this section. A regional railroad authority may also pledge its taxing_powers 23.9 as additional security for the bonds. 23.IO Subd. 8. Allocation of revenues. After the deductions allowed in section 297A.99 23.11 subdivision 11, the commissioner of revenue shall remit the proceeds of the taxes imposed 23.12 under this section on a monthly basis, as directed b~joint powers board under this 23.13 section. 23.14 Subd. 9. Administration, collection, enforcement. Except as otherwise provided 23.15 in this section, the provisions of section 297A.99, subdivisions 4 and 5 to 12a, govern the 23.16 administration, collection, and enforcement of the tax authorized under this section- 23.17 Subd. 10. Termination of taxes. (a) The taxes imposed under section 297A.99, 'F-~, 23.16 subdivision 1, by a county that withdraws from the joint powers agreement pursuant to 23.19 subdivision 3, clause (3), shall terminate when the county has satisfied its portion, as 23.2o defined in the joint powers agreement, of all outstanding bonds or obligations entered into 23.21 while the county was a member of the agreement. 23.22 (b) If the joint powers agreement under subdivision 3 is terminated, the taxes 23.23 imposed under section 297A.99, subdivision 1, at the time of the agreement termination 23.24 will terminate when all outstanding bonds or obligations are satisfied. The auditors of the 23.zs counties in which the taxes are imposed shall see to the administration of this paragraph. 23.26 Subd. 1 1. Report. The joint powers board shall report annually February 1 to the 23.27 house of representatives and senate committees having_jurisdiction over transportation 23.26 policy and finance concerning the revenues received and grants awarded. 23.29 Subd. 12. Grant awards to Metropolitan Council. An~grant award under this 23.30 section made to the Metropolitan Council must supplement, and must not supplant, 23.31 operatin ag_ nd capital assistance provided by the state. 23.32 EFFECTIVE DATE.This section is effective the day following final enactment, 23.33 except that subdivision 2 is effective the first day of a calendar quarter be inning at least 23.34 90 days after the formation of the joint powers board under subdivision 4. This section 23.35 expires October 2 2008, if the sales and use tax under subdivision 2 has not been imposed. Timeline and Time Commitment METRO CITIES of GEARS Committee Members ~~~"°.M°tr°~tinMunicw°IiUs. Proposed Process for the 2008 Grant Solicitation and Award Process: because of the limited amount of time left in the 2008 calendar year and some immediate funding needs, a shorter and more selective process will take place with the proceeds of the quarter cent sales tax. The CTIB will initially be proposing grant applications be limited to five categories for the 2008 grant round. 1) Met Council -legislatively required $30,783,000 2) For operating assistance in qualified transitways 3) For construction funds to complete elements of transitways being constructed in 08-09 4) For financial commitments for a project moving into final design as a part of the FTA New Starts process. 5) Applications from member counties pursuant to Art. VII, Item H, of the Joint Powers Agreement. 2009 Grant Process and Beyond: At this point a timeline or schedule of meetings has not been set by the CTIB. However, staff is anticipating anywhere from ten to twelve meetings a year, with more of those taking place when the GEARS committee is doing its evaluation and rankings. It is thought the meetings will take place during the day and will be staffed by CTIB staff with the location yet to be determined. Contact Information Sarah Erickson 651-215-4003 sarahCa~amm 145.or~ June 20, 2008 METRO CITIES Eligible Expenditures o,M.~~.~~~.~~. The law outlines what qualifies for allocation of the grant awards: 1) capital improvements to transitways, including, but not limited to, commuter rail rolling stock, light. rail vehicles, and transitway buses; 2) capital costs for park-and-ride facilities, as defined in section 174,256, subdivision 2; 3) feasibility studies, planning, alternatives analyses, environmental studies, engineering, property acquisition for transitway purposes, and construction of transitways; and 4) operating assistance for transitway No more than 1.25 percent of the total awards may be annually allocated for planning, studies, design, construction, maintenance, and operation of pedestrian programs and bicycle programs and pathways. Also - a grant award for a transit project located within the metropolitan area, as defined in section 473.121, subd 2, may be funded only after the Metropolitan Council reviews the project for consistency with the transit portion of the Metropolitan Council policy plan and one of the following occurs: the Metro Council finds the project to be consistent; the Metro Council initially finds the project to be inconsistent, but after a good faith effort to resolve the inconsistency through negotiations with the joint powers board, agrees that the grant award may be fiznded; or the Metro .Council finds the project to be inconsistent, and submits the consistency-issue for final determination to a panel, which determines the project to be consistent. TRANSITWAY CTIB is in the: process of developing a transit investment .framework which will define transitways and will set the eligibility criteria for the grants. Note that state statue provides the following definition of transitway. It is defined' in the 2008 Minnesota Statues, section 473.399 - Transitways; Light Rail Transit and Commuter-Rail in the Metropolitan Area.. General Requirements= The council must identify in' its transportation polcy,pian those heavily traveled corridors where development of a transitway may be feasible and cost-effective, Modes of providing service in a transitway may include.bus :rapid transit, light rail transit, commuter rail, or other available systems or technologies that improve transit service. Criteria for the Award of Grants are also outlined in the CTIB's joint_powers agreement as follows: The Board shall establish criteria for the award of grants that shall- include, but not be limited to • Grant awards -shall be consistent with the most recent version of the 1Vletropolitan Council's .Transportation Policy Plan. • Grant awards'shall maximize the availability and use of federal funds. t • No grant award made to the Metropolitan Council may supplant operating or capital funding provided to the Metropolitan Council by the state. • No grant award made to the Metropolitan Council may supplant the 50% state share of the non-federaloperating subsidy for light rail arid-commuter rail operations: • No grant award shall be made for operating costs of a transitway (except for the 'Hiawatha Light Raii Project, the Northstar Commuter Rail Project, Cedar Avenue Bus - Rapid Transit Project, and`the 35W Bus Rapid Transit:Project from downtown Minzieapols south) unless the Board has previously awarded a grant for the capital costs of the transitway~project. °• No grant award shall be made for capital costs of`a transitway project unless there is a 10% local match for the transtway project:: A local nl~ilc-h-is defined as dollars that are not provided by the state, the Metropolitan Council; or the federal government. C'TIB .will continue to further define transitways as it moves through the process; however the = `following examples will -not be considered transitways for the purpose: of grant eligibility. • Regzzlar route metro transit service ..Area-circulators: ' . - . .. ,,, `~' - ' { C ,~ ~xs ~ ~`J ,~ ~&n a~t~lnfurnie~i~n - .~ ~ ,~ :~~~~~~ } ~~ ~ ~~, ~ _~ ~ ,~„~. - rtic'~~~~~°~.. t HVdldil~~~~~~13~, ,. rya,, ?i ~3 ~~€~-L~ ~~ v y`i`n`, - `~ +k~~y.~"~~~4 -~ ` ~,^5~~~~~~~~~~~ ~~. ,' . _ :v ~+? 1. na .w....'.4T _i~. c - ~'. .. t., .. ___ ~ ._... ...., w...., .._ ~".Y>.7/, '~3..4 _, ...a.Y . u _ v ~~'*Jx..~w r ~.i.: =. 1 Prelimi~zaty Estimates 0.25% S-County Metro Area Transit Sales and Use Tax ($OOOs} September 2008 to December 2008 $28,800 January 2009 to June 2009. $41,700 Effective date is July 1, 2008. Note: The estimates reflect when revenues would be received by the Transit Improvement Board. The estimates do not include the separate $20 per vehicle motor vehicle excise tax. Laws 2008, Chapter 152, provides fora 0.25% local sales and-use tax for the seven metro counties. Five counties -Anoka, Dakota, Hennepin, Ramsey, and Washington -are participating. The 0.25% 5-county metro-area sales and use tax is to be imposed on the same base as the state 6.5% sales and use tax. The tax is to be used for transit and will be remitted to the Transit Improvement Board. • The tax will be effective July 1, 2008. It is expected that the tax on July sales which is remitted to the state in August. will be remitted to the Transit Improvement Board (GTIB) 5 days after the last day of August with a reconciliation payment 40 days after the last day of August.. This pattern will continue for. subsequent months. • The estimate is-based on two primary sources: 1) calendar year 2006 sales and use tax statistics produced by the Department.of Revenue, and 2) 12 months of actual collections for the 0.15% Hennepin County sales tax (April 2007 to March 2008): • A total of $28.16 million of sales and use tax collections were reported for the current Hennepin County 0.15% local tax - Apri12007 to March 2008. • This $28.1.6 million for Hennepin County is converted-from the 0.15% tax rate to.tlie 0.25% tax rate. The calculated amount for the same period of time (April 2007 to March 2008) at the 0.25% rate is' .$46.9 million. • Based on the 2006 sales tax statistics, it is assumed that the counties of Anoka, Dakota,. Ramsey, and Washington combined are 81.6%'of the Hennepin County'amounts. • An average annual growth factor of 2% is applied to determine 2008 and 2009 :estimates. The average.: annual growth factor is based on information from Global Insight. {April-2008 publication). • Adjustments were. included to account for implementation-'issues -and to net out administrative charges. - _ _ _: Minnesota Department of Revenue Tax Research Division May 30, 2008 0.25%MetroTransitST [ rrs .