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HomeMy WebLinkAboutStaff Report 3.C 5/19/2014DATE: May 19, 2014 Agenda Item #3.0 TO: Honorable Mayor and tubers of the City Council through City Manager FROM: Dan St .ASCE — Director, Public Works & Utilities Joseph Rye — Transit Division Manager SUBJECT: Resolution Authorizing the Filing of an Application with the Metropolitan Transportation Commission for Allocation of Transportation Development Act/ State Transit Assistance Funds for the City's Transit System for FY 2014-15 It is recommended that the City Council adopt the attached resolution authorizing the filing of an application with the Metropolitan Transportation Commission for allocation of Transportation Development Act/State Transit Assistance funds for the City's transit system for FY 2014-15. BACKGROUND The Transportation Development Act (TDA) provides two major sources of funding for the development and support of public transportation in California: the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA). A one-quarter cent statewide sales tax measure supports these funds. Although the County Treasury holds revenues, the Metropolitan Transportation Commission (MTC) as the Transportation Planning Agency for the region has the responsibility for approving applications and ensuring that all funds distributed are used for eligible expenditures. Upon approval of an application, MTC authorizes payment as a lump sum, in installments or as funds become available. The TDA or LTF programs represent the main source of funds used to operate Petaluma's fixed route and paratransit service. These programs require the transit agency's governing bodies to adopt a resolution of support as a condition of applying for these funds. The City of Petaluma requests this funding annually every spring for the upcoming fiscal year. The funding is the primary source of funds for the City's transit system. City Council approved the last two TDA/STA claims on May 7, 2012 and May 20, 2013. The proposed action meets Council Goal: "Achieve fiscal stability and maintain financial sustainability". Agenda Review: City Attorney Finance Director City Manager DISCUSSION An initial TDA apportionment exists for each city in Sonoma County; the total FY 2014-15 apportionment to Petaluma is $2,401,617. Contributions to Golden Gate Transit and Sonoma County Transit are taken "off the top" prior to City allocation. Golden Gate Transit, the County's intercity and regional transit provider, receives $692,931 (29%) of what would otherwise be Petaluma's funding; Sonoma County Transit receives $240,566 (10%) to support Sonoma County intercity services ($200,472 for Routes 44 and 48 to Rohnert Park/SSU, and Santa Rosa, plus $40,094 for intercity paratransit). This leaves Petaluma with an estimated $1,468,119 (61%) available for its FY 2014-15 budget. Legislative action in 2009 reinstated the STA program and provides a critical component of local transit capital and operations funding. In addition to the TDA apportionment, Petaluma Transit anticipates $277,091 in FY 2014-2015 STA funds. Beyond these two largest sources of operating funds, Petaluma Transit also receives key funding from Measure M, passenger fares, and competitive grant programs at the regional level such as TFCA (Transportation Fund for Clean Air), and at the federal level with JARC (Jobs Access Reverse Commute) and New Freedom. This year, Petaluma Transit is requesting $1,228,667 of the $1,468,119 available for TDA operating funds and TDA capital funds. The majority of the capital funds will contribute to an Automatic Vehicle Location (AVL) System. The STA operating funds request is $335,926 including $58,835 in prior -year revenue -based funds. The $239,452 difference between available TDA and the amount claimed will be added to the City's Transit TDA reserves. TDA reserves are used to fund local match on capital projects, and to provide cushion against future economic downturns to buffer service from immediate reductions. The Petaluma TDA reserves at the end of FY 2014-15 are projected to be at $564,463. Approval of the attached resolution will authorize staff to file an application with the MTC for allocation of Transportation Development Act/State Transit Assistance funds for the City's transit system for FY 2014-15 in order to fund transit operations. FINANCIAL IMPACTS Petaluma's total available FY 2014-15 TDA funding of $1,468,119 has increased by $123,026 (9%) from the prior year. STA funds for FY 2014-15 are expected to be $277,091, down 2% from $283,550 in FY 13-14. The targeted funding is reflected in the proposed FY 14-15 Budget request. ATTACHMENTS 1. Resolution Attachment I RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION WITH THE METROPOLITAN TRANSPORTATION COMMISSION FOR ALLOCATION OF TRANSPORTATION DEVELOPMENT ACT/STATE TRANSIT ASSISTANCE FUNDS FOR THE CITY'S TRANSIT SYSTEM FOR FY 2014-2015 WHEREAS, the Transportation Development Act (TDA) (California Public Utilities Code §99200 et seq.), provides for disbursement of funds from the Local Transportation Fund (LTF) of the County of Sonoma for use by eligible applicants for the purpose of fixed route and paratransit service; and WHEREAS, pursuant to the provisions of the TDA, and pursuant to the applicable rules and regulations hereunder (21 Cal. Code of Regs. §6600 et. seq.), a prospective applicant wishing to receive an allocation from the Local Transportation Fund (LTF) shall file its claim with the Metropolitan Transportation Commission; and WHEREAS, the State Transit Assistance (STA) fund is created pursuant to Public Utilities Code, Section 99310 et seq.; and WHEREAS, TDA funds from the Local Transportation Fund of Sonoma County and STA funds will be required by applicant in Fiscal Year 2014-2015 for fixed route and paratransit service; and WHEREAS, the City of Petaluma is an eligible applicant for TDA and/or STA funds, pursuant to Public Utilities Sections 99260, 99260(a) and 99400, as attested by the opinion of counsel dated May 1, 2012. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma that the City Manager is authorized to execute and file appropriate TDA/STA applications, together with all necessary supporting documents, with the Metropolitan Transportation Commission for an allocation of TDA and STA funds in Fiscal Year 2014-2015; and BE IT FURTHER RESOLVED, that a copy of this Resolution be transmitted to the Metropolitan Transportation Commission, in conjunction with the filing of the claim; and the Metropolitan Transportation Commission be requested to grant the allocation of funds as specified in the claim.