WHEREAS, the Minnesota Legislature, by Laws of Minnesota 2008, Chapter 152, Article 4, Section 2, codified as Minnesota Statutes Section 297A.992 (the “Act”), authorized the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington to impose a one-quarter percent sales and use tax, and an excise tax of $20 per motor vehicle purchased or acquired from any person engaged in the business of selling motor vehicles at retail (the “Sales Tax”), following the formation of a joint powers board by agreement among the counties for use for designated transit projects; and

WHEREAS, the boards of commissioners of the counties of Anoka, Dakota, Hennepin, Ramsey and Washington (the “CTIB Counties") entered into a joint powers agreement (the “JPA”) establishing the Counties Transit Improvement Board (the “CTIB”), and imposed the Sales Tax, thereby constituting the Metropolitan Transportation Area, as defined in the Act, while participating in CTIB; and

WHEREAS, the JPA provides in Article IX.2.A that the JPA shall terminate when all CTIB Counties agree by resolution adopted by their respective governing bodies to terminate the JPA and all obligations of CTIB shall have been paid or otherwise defeased in full; and

WHEREAS, on March 8, 2017, CTIB approved Resolution #21-2017 agreeing to pay all outstanding debt and obligations subject to the boards of commissioners of CTIB Counties taking certain actions as set forth in that Resolution, such that CTIB will terminate on June 30, 2017 and Hennepin County (“County”) will then no longer be participating in CTIB; and

WHEREAS, Minnesota Statutes Section 297A.993 authorizes counties not participating in CTIB to impose a transportation tax of up to one-half percent on retail sales and uses and an excise tax of $20 per motor vehicle for designated transit and transportation purposes (the “Transportation Tax”); and

WHEREAS, the County board of commissioners wishes to terminate the JPA so that the taxes imposed under Section 297A.992 will terminate and the County may impose the taxes authorized under Section 297A.993 as provided herein; and

WHEREAS, the County board of commissioners wishes to take such actions as are set forth herein to meet the conditions in CTIB Resolution #21-2017, including but not limited to (1) the County assuring that CTIB commitments and obligations are met to the extent provided herein and (2) the County imposing the Transportation Tax; and

WHEREAS, Minnesota Statutes Section 297A.993 requires that a county imposing the Transportation Tax must do so by resolution of the county board of commissioners after holding a public hearing; and

WHEREAS, the proceeds of the Transportation Tax must be designated by the respective county board exclusively to (1) payment of the capital cost of a specific transportation project or improvement; (2) payment of the costs, which may include both capital and operating costs, of a specific transit project or improvement; (3) payment of the capital costs of a safe routes to school program under Minnesota Statutes Section 174.40; or (4) payment of transit operating costs; and

WHEREAS, the County board of commissioners desires to implement the Transportation Tax and have the State Department of Revenue collect the same, effective on July 1, 2017 and contingent upon the termination of CTIB as provided above; and

WHEREAS, the proceeds of such a Transportation Tax must be spent on projects designated in the Hennepin County Sales and Use Tax Transportation Improvement Plan (“Plan”), for which required public hearings will be held on March 21, 2017 and March 28, 2017and which Plan is adopted herein; and

WHEREAS, the Plan may be amended by future actions of the Hennepin county board after a public hearing.

BE IT RESOLVED, that the County board of commissioners agrees to terminate the JPA, effective June 30, 2017 and upon the satisfaction of all of the conditions of CTIB Resolution #21-2017 including but not limited to all of the obligations of CTIB having been paid or otherwise defeased in full; and

BE IT FURTHER RESOLVED, that, upon the vote by all CTIB Counties to terminate the JPA and the action by CTIB to pay or defease all obligations in full as provided above, the taxes will be terminated and the County board of commissioners hereby directs appropriate all obligations in full as provided above, the taxes will be terminated and the County board of commissioners hereby directs appropriate County officials to take such timely actions, no later than March 31, 2017, as are necessary to see to the administration of the termination of the taxes under Minnesota Statutes Section 297A.992, subdivision 10 and 297A.99, subdivision 12, including but not limited to notifying, or cooperating with CTIB to notify, the Minnesota Department of Revenue; and

BE IT FURTHER RESOLVED, that upon the completion of the actions set forth herein, the County is no longer part of the metropolitan transportation area as defined in Minnesota Statutes Sections 297A.992, subdivision 1; and

BE IT FURTHER RESOLVED, that the County board of commissioners assumes and agrees to carry forward the CTIB funding commitment(s), to the extent set forth in Exhibit A and additionally including the obligation to pay the County’s proportionate share of any CTIB obligations to the Minnesota Department of Revenue to the extent that the CTIB reserve account is insufficient; and

BE IT FURTHER RESOLVED, that the County board of commissioners approves and authorizes the execution of the agreements referenced in Exhibit B; and

BE IT FURTHER RESOLVED, that the County board of commissioners authorizes and implements a 0.5% sales and use tax and an excise tax of $20 per motor vehicle as provided for in Minnesota Statutes Section 297A.993, to be imposed on July 1, 2017 contingent upon the termination of CTIB as provided in CTIB Resolution #21-2017, for the purpose of funding transit and transportation improvements as designated in the Plan and in duly adopted amendments to the Plan; and

BE IT FURTHER RESOLVED, that the County board of commissioners hereby adopts the Plan, which is attached to this resolution and is on file with the clerk of the board; and

BE IT FURTHER RESOLVED, that the County board of commissioners has designated the projects identified in Exhibits A and B in the Plan; will retain those projects in the Plan to the extent necessary for the County to meet the obligations identified in those Exhibits A and B; and will continue the Transportation Tax at a sufficient rate and for a sufficient time if needed to meet those obligations; and

BE IT FURTHER RESOLVED, that the provisions of Minnesota Statutes Section 297A.99, Subdivisions 4, and 6 through 12, shall govern the imposition, administration, collection and enforcement of the Transportation Tax; and

BE IT FURTHER RESOLVED, that the County board of commissioners hereby directs appropriate county officials to take such timely actions as are necessary to implement the Transportation Tax, including but not limited to the certification of the taxes to the Minnesota Department of Revenue, on or before March 31, 2017; and

BE IT FURTHER RESOLVED, that Hennepin County agrees to pre-payment of the Senior Sales Tax Revenue Note, Series 2010; and

BE IT FURTHER RESOLVED, that the County board of commissioners approves Hennepin County Agreement No. A177132 (Contract for Joint and Cooperative Funding of Certain Transit Projects) by and among Hennepin County, the Hennepin County Regional Railroad Authority, Ramsey County and the Ramsey County Regional Railroad Authority, and, following review by the County Attorney’s Office, authorizes the chair of the board to execute the agreement.