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HomeMy WebLinkAboutCity Council Minutes 07-11-1995 SpecialMINUTES SPECIAL COUNCIL MEETING JULY 119 1995 A special meeting of the Plymouth City Council was called to order by Mayor Tierney at 6:10 p.m. in the Council Chambers of the City Center, 3400 Plymouth Blvd., on July 11, 1995. COUNCIL PRESENT: Mayor Tierney; Councilmembers Lymangood, Granath, and Edson. Councilmember Wold arrived at 6:20 p.m. ABSENT: Councilmembers Anderson and Helliwell. STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Transit Administrator Sweeney, Transit Consultant George Bentley, and City Clerk Ahrens. CITY TRANSIT ISSUES John Sweeney, Transit Administrator, explained the current Metrolink and Dial -a - Ride services in the City of Plymouth. Dial -a -Ride is currently operating at capacity, and there are about 250,000 passengers per year on both systems. He stated that as an opt -out community, Plymouth must annually prepare a Transit Management Plan and Budget for approval by the City Council and the Metropolitan Council. He presented information on ridership for the last several years. He stated that for 1995, Plymouth has $1.6 million that the Metropolitan Council can provide as needed to comply with the approved Management Plan budget. It is projected that Plymouth will use about $1.275 million of that amount. The $1.6 million is 90 percent of the amount Plymouth residents pay in property taxes that is allocated to the Metropolitan Council for transit service. In theory, the City could receive up to 90 percent of the local property tax dollars allocated to the Metropolitan Council for transit service, with the Metropolitan Council retaining 10 percent. Councilmember Edson asked what happens to the balance of available "Plymouth funds" if the City does not spend the entire $1.6 million in 1995. City Manager Johnson explained that when the Regional Transit Board was administering the transit system, the funds would retain designation to a particular city and were carried over from year to year. It appears that the Metropolitan Council now intends to retain a substantial portion of Plymouth's previous fund balance for transportation uses in other cities. 4 Special Council Meeting July 11, 1995 Page 2 George Bentley stated he previously served as a consultant for ten opt -out cities, including Plymouth. He now serves as Plymouth's transit consultant. He stated that at the end of 1995, one-half of the carry-over funds will go to the Metropolitan Council and one-half will remain for use by the City. However, the Metropolitan Council will likely claim Plymouth's previous unspent balance prior to 1995. Transit Administrator Sweeney estimated that about $325,000 will be unspent of Plymouth's $1.6 million by year-end. He described the Metro Mobility program and stated that the Metropolitan Council is in financial trouble with this program. He stated that 1,400 trips were made on Metro Mobility in Plymouth during April, 1995. Mr. Bentley stated that Metro Mobility is funded directly by the state legislature, with $30 million budgeted for the system for the current two year biennium. Public Works Director Moore explained that Metro Mobility is totally funded with state dollars and no local property taxes. He stated that in an effort to cut losses in providing the Metro Mobility program, the Metropolitan Council is giving consideration to eliminating the Metro Mobility service to seven communities, including Plymouth. He stated that the Metropolitan Council does not have to legally provide the service in Plymouth. The Metropolitan Council staff is now recommending that a monthly billing system be implemented for the seven cities who continue to receive Metro Mobility service after October 1, 1995. The billing would be based on an average system subsidy per passenger trip. The Metropolitan Council staff is further recommending that the seven cities explore alternative service delivery methods to become operational no later than April 1, 1996, that minimizes impacting passengers. Manager Johnson explained that the Metropolitan Council originally indicated they wanted to eliminate Metro Mobility service in Plymouth and the six other communities by October, 1995. They are now considering billing the seven cities to continue the service for six months. The funds would be obtained from the cities' remaining levy for transit services (for Plymouth, the estimated $325,000). He stated that this would be a significant precedent as local property tax dollars, rather than solely state tax dollars, would be used to continue the Metro Mobility system in some cities. Councilmember Edson stated that the City needs to consider the real possible loss to the City. He stated that it is projected that Plymouth will have $325,000 by year-end. The Metropolitan Council will retain one-half of that amount, or 162,500. Based on the current operations, the cost for the Metro Mobility system in Plymouth would be about $201,000 for the year. Therefore, Plymouth would be losing approximately $40,000. Special Council Meeting July 11, 1995 Page 3 Manager Johnson stated that the Council also needs to consider the possibility that one-half of the balance that theoretically goes into the City's account at year-end may never be available to the City. The money cannot be used without the approval of the Metropolitan Council, and the allocation and rules for use of the money could be changed at any time. Public Works Director Moore stated that the Council should also consider that if the Metro Mobility service is funded from the City's unspent property tax transit dollars, the City will not have the option of increasing local transit service for Metrolink and Dial -a -Ride in the future because the funds will be expended. Councilmember Lymangood asked about the Metro Mobility service levels and service area. Manager Johnson explained that the Metro Mobility service is available 20 hours per day and service is provided anywhere within the seven county area. It was noted that, for example, a resident could board Metro Mobility in Plymouth and ride door-to-door to a location in Hastings for one local fare. Mr. Bentley stated that the Americans with Disabilities Act (ADA) mandates the type of service that must be provided. The only items under the current Metro Mobility service that are optional are the number of operational hours and the number of cities to which service is provided. Manager Johnson stated that if the City took over the paratransit service currently provided by Metro Mobility in Plymouth, the type of service could be amended. The hours of service could be reduced from 20 hours per day and the service area to which riders are delivered could be amended. Manager Johnson stated that these issues are currently before the Metropolitan Council, and he requested direction on the position the City should take. Mayor Tierney stated it may be useful to call a meeting of the City Council Subcommittee on Transit to discuss and follow these issues. She also asked if the Metropolitan Council's proposals have been investigated for legal compliance. Mr. Bentley responded that the statute clearly states that the Metropolitan Council may" provide funding. Manager Johnson added that this language has been reviewed by the City Attorney who advises that the word "may" means that the funding to the City is optional. Special Council Meeting July 11, 1995 Page 4 Councilmembers Lymangood and Edson requested that staff provide information on the history of the City's total levy for transit service, the 90 percent allocation back to the City of Plymouth, and the amount and percentage of the 90 percent that was actually used, with the transit fund carry-over each year since 1990. Mr. Bentley questioned another aspect of the Metropolitan Council proposal regarding Metro Mobility. He noted that the legislature capped the total amount that can be spent on Metro Mobility when approving the Metro Mobility funding. He questioned whether the Metropolitan Council can legally use property tax dollars in addition to the state funding. The Council requested that the legislative intent and legality of this aspect of the proposal also be checked. Councilmember Edson questioned the legislative intent of designating the Metro Mobility service area. He noted that the legislature appropriated $30 million over two years for Metro Mobility that is to be shared in the seven county area. He believes there is a fairness issue because Plymouth should get its portion of that service for the state dollars allocated. This should also be investigated. Why should Plymouth pay local property tax dollars for a service that is provided to other communities with state dollars? Mr. Bentley stated that the statute designates the appropriation for "Metro Mobility", but does not designate where the service will be provided. He stated that the Metropolitan Council is required to provide this service under ADA. They are providing the required service under Metro Mobility. Councilmember Edson asked about the AMM involvement and position on this issue. After further discussion, Councilmember Lymangood summarized that the.City Council would like the following information, and staff is authorized to present the City's position on the transit issue based on these questions and issues: 1) Provide the total Plymouth property tax levy paid for transit service since 1990, to include the 90 percent eligible to be used by the City for transit service, the actual amount expended each year, and the unspent balance. 2) Question and determine whether property taxes could be legally used to fund Metro Mobility in light of the statute capping the Metro Mobility program to the allocated state funding. 3) Question and determine the legislative intent of what cities were to be included in the Metro Mobility program in the "metro area" under the statute. Special Council Meeting July 11, 1995 Page 5 There is a fairness issue of Plymouth not receiving the same service as other cities from state dollars. 4) Report on status of AMM involvement and position with respect to these transit issues. 5) Provide additional information on the 1,400 trips per month in Plymouth on the Metro Mobility system. Repeat ridership? Where are they going? Purpose of Use? 6) Develop a scenario including costs to expand the existing Dial -a -Ride service, to provide accessible Dial -a -Ride vehicles, and to implement a limited paratransit service with connections to Metro Mobility at Ridgedale or other connecting points. This option could be considered if Metro Mobility is discontinued in Plymouth. Manager Johnson stated that staff will use these questions and concerns to discuss this issue with the Metropolitan Council and area legislators. Councilmember Wold stated he would like the City to take a firm position and push the Metropolitan Council on this issue. Mayor Tierney stated that a meeting of the Council Subcommittee will be called. The meeting was adjourned at 6:55 p.m. Laune F. Ahrens City Clerk