June 20, 1008
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 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 21 st
Applications for the GEARS Committee: July 14th
Location: League of Minnesota Cities Building and the State Capitol
Time: Screening Board 8:00 am to 12:00 General Election 1:30 – 3:00
Background:
The 2008 Transportation Finance Bill Chapter 152, grants the authority for 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. To this point, five of the seven counties have entered into a joint powers board agreement and levied the tax. The five counties have formed the Counties Transit Improvement Board (CTIB).
In accordance with the 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 legally assigned the task of conducting an election to select the city representation on the GEARS committee.
Elections Process:
The information packet includes the following:
Metro Cities appreciates your city’s willingness to participate and we look forward to working with everyone on July 21 st. If you have any questions please contact Sarah Erickson at 651-215-4003 or sarah@amm145.org
Sincerely,
Jan Callison
Minnetonka Mayor
Metro Cities President
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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.
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Population numbers: We will be using population estimates calculated by the Metropolitan Council under M.S. 4 77A.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: 515,059 – 2 City Reps on the GEARS Committee
St. Paul: 286,620
Suburban: 228,439
Hennepin: 1,152,508 - 3 City Reps on the GEARS Committee
Minneapolis: 387,970
*Suburban North: 370,359
*Suburban South: 391,256
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Eight 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 Paul will not participate in the elections process, but 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.
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Voting Procedure for Six Remaining Seats:
*Roughly dividing by: Hwy 12/ 394
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8:00 a.m. – 12:00 p.m.
12:00 – 1:30 – Lunch (additional screening time if necessary and SB deliberation)
(Transition from the League Building to the Capitol)
2:00 – 3:00 p.m.
The candidate who receives the most votes in each geographic district wins.
Contact Information
Sarah Erickson
651-215-4003
sarah@amm145.org
Instructions:
On a separate sheet of paper or electronically please answer the following questions:
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Article 4 – Local Option Sales Tax Language (HF 2800)
ARTICLE 4
18.24 LOCAL OPTION TAXES
18.25 Section 1. Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to
18.26 read:
18.27 Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
18.28 impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if
18.29 permitted by special law , or (4) if the political subdivision enacted and imposed the tax
18.30 before the effective date of section 477A.016 and its predecessor provision.
18.31 (b) This section governs the imposition of a general sales tax by the political
18.32 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.
19.5 Sec. 2. [297A.992] METROPOLITAN TRANSPORTATION AREA SALES TAX.
19.6 Subdivision 1. Definitions. For purposes of this section, the following terms have
19.7 the meanings given them:
19.8 (1) "metropolitan transportation area" means the counties participating in the joint
19.9 powers agreement under subdivision 3;
19.10 (2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
19.11 Ramsey, Scott, or Washington;
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
19.15 that is participating in 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
19.18 (5) "population" means the population, as defined in section 477A.011, subdivision
19.19 3, estimated or established by July 15 of the year prior to the calendar year in which
19.20 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
19.25 transportation sales and use tax at a rate of one-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 any person engaged in the business of selling motor vehicles at retail,
19.28 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 lodging 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.
20.1 Subd. 3. Joint powers agreement. Before imposing the taxes authorized in
20.2 subdivision 2, an eligible county must declare by resolution of its county board to be part
20.3 of the metropolitan transportation area and must enter into a joint powers agreement. The
20.4 joint powers agreement:
20.5 (1) must form a joint powers board, as specified in subdivision 4;
20.6 (2) must provide a process that allows any eligible county, by resolution of its county
20.7 board, to join the joint powers board and impose the taxes authorized in subdivision 2;
20.8 (3) may provide for withdrawal of a participating county before final termination of
20.9 the agreement; and
20.10 (4) may provide for a weighted voting system for joint powers board decisions.
20.11 Subd. 4. Joint powers board. (a) The joint powers board must consist of one
20.12 or more commissioners of each county that is in the metropolitan transportation area,
20.13 appointed by its county board, and the chair of the Metropolitan Council, who must have
20.14 voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
20.15 and duties provided in this section and section 471.59.
20.16 (b) The joint powers board may utilize no more than three-fourths of one percent of
20.17 the proceeds of the taxes imposed under this section for ordinary administrative expenses
20.18 incurred in carrying out the provisions of this section. Any additional administrative
20.19 expenses must be paid by the participating counties.
20.20 (c) The joint powers board may establish a technical advisory group that is separate
20.21 from the GEARS Committee. The group must consist of representatives of cities, counties,
20.22 or public agencies, including the Metropolitan Council. The technical advisory group
20.23 must be used solely for technical consultation purposes.
20.24 Subd. 5. Grant application and awards; Grant Evaluation and Ranking System
20.25 (GEARS) Committee. (a) The joint powers board shall establish a grant application
20.26 process and identify the amount of available funding for grant awards. Grant applications
20.27 must be submitted in a form prescribed by the joint powers board. An applicant must
20.28 provide, in addition to all other information required by the joint powers board, the
20.29 estimated cost of the project, the amount of the grant sought, possible sources of funding
20.30 in addition to the grant sought, and identification of any federal funds that will be utilized
20.31 if the grant is awarded. A grant application seeking transit capital funding must identify
20.32 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 grants, and may award grants only to the state and political subdivisions. The board shall
20.35 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 policy plan adopted by the
21.1 Metropolitan Council under section 473.146. The joint powers board shall maximize the
21.2 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:
21.5 (1) one county commissioner from each county that is in the metropolitan
21.6 transportation area, appointed by its county board;
21.7 (2) one elected city representative from each county that is in the metropolitan
21.8 transportation area;
21.9 (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
21.12 (4) the chair of the Metropolitan Council Transportation Committee.
21.13 (d) Each city representative must be elected at a meeting of cities in the metropolitan
21.14 transportation area, which must be convened for that purpose by the Association of
21.15 Metropolitan Municipalities.
21.16 (e) The committee shall evaluate grant applications following objective criteria
21.17 established by the joint powers board, and must provide to the joint powers board a
21.18 selection list of transportation projects that includes a priority ranking.
21.19 (f) A grant award for a transit project located within the metropolitan area, as defined
21.20 in section 473.121, subdivision 2, may be funded only after the Metropolitan Council
21.21 reviews the project for consistency with the transit portion of the Metropolitan Council
21.22 policy plan and one of the following occurs:
21.23 (1) the Metropolitan Council finds the project to be consistent;
21.24 (2) the Metropolitan Council initially finds the project to be inconsistent, but after a
21.25 good faith effort to resolve the inconsistency through negotiations with the joint powers
21.26 board, agrees that the grant award may be funded; or
21.27 (3) the Metropolitan Council finds the project to be inconsistent, and submits the
21.28 consistency issue for final determination to a panel, which determines the project to be
21.29 consistent. The panel is composed of a member appointed by the chair of the Metropolitan
21.30 Council, a member appointed by the joint powers board, and a member agreed upon by
21.31 both the chair and the joint powers board.
21.32 (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.
21.34 (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.
22.1 Subd. 6. Allocation of grant awards. (a) The board must allocate grant awards
22.2 only for the following transit purposes:
22.3 (i) capital improvements to transitways, including, but not limited to, commuter
22.4 rail rolling stock, light rail vehicles, and transitway buses;
22.5 (ii) capital costs for park-and-ride facilities, as defined in section 174.256,
22.6 subdivision 2;
22.7 (iii) feasibility studies, planning, alternatives analyses, environmental studies,
22.8 engineering, property acquisition for transitway purposes, and construction of transit
22.9 ways; and
22.10 (iv) operating assistance for transitways.
22.11 (b) The joint powers board must annually award grants to each minimum guarantee
22.12 county in an amount no less than the amount of sales tax revenue collected within that
22.13 county.
22.14 (c) No more than 1.25 percent of the total awards may be annually allocated for
22.15 planning, studies, design, construction, maintenance, and operation of pedestrian programs
22.16 and bicycle programs and pathways.
22.17 Subd. 7. Bonds. (a) The joint powers board or any county, acting under a joint
22.18 powers agreement as specified in this section, may, by resolution, authorize, issue, and sell
22.19 its bonds, notes, or other obligations for the purpose of funding grants under subdivision
22.20 6. The joint powers board or county may also, by resolution, issue bonds to refund the
22.21 bonds issued pursuant to this subdivision.
22.22 (b) The bonds of the joint powers board must be limited obligations, payable solely
22.23 from or secured by taxes levied under this section.
22.24 (c) The bonds of any county may be limited obligations, payable solely from or
22.25 secured by taxes levied under this section. A county may also pledge its full faith, credit,
22.26 and taxing power as additional security for the bonds.
22.27 (d) Bonds may be issued in one or more series and sold without an election. The
22.28 bonds shall be secured, bear the interest rate or rates or a variable rate, have the rank or
22.29 priority, be executed in the manner, be payable in the manner, mature, and be subject to
22.30 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
22.32 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
22.35 the bonds, including an indenture of trust with a trustee within or without the state.
23.1 (f) Except as otherwise provided in this subdivision, the bonds must be issued and
23.2 sold in the manner provided under chapter 475.
23.3 (g) The joint powers board or any regional railroad authority wholly within the
23.4 metropolitan transportation area also may authorize, issue, and sell its bonds, notes, or
23.5 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 regional
23.7 railroad authority may be limited obligations, payable solely from or secured by taxes
23.8 levied under this section. A regional railroad authority may also pledge its taxing powers
23.9 as additional security for the bonds.
23.10 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 by the 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 6 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,
23.18 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
23.20 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
23.25 counties in which the taxes are imposed shall see to the administration of this paragraph.
23.26 Subd. 11. Report. The joint powers board shall report annually by February 1 to the
23.27 house of representatives and senate committees having jurisdiction over transportation
23.28 policy and finance concerning the revenues received and grants awarded.
23.29 Subd. 12. Grant awards to Metropolitan Council. Any grant award under this
23.30 section made to the Metropolitan Council must supplement, and must not supplant,
23.31 operating and 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 beginning 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.
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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.
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The law outlines what qualifies for allocation of the grant awards:
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 funded; 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 policy plan 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:
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CTIB 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.