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HomeMy WebLinkAboutStaff Report 3.G 06/20/2016DATE: June 20, 2016 Agenda Item #3.G TO: Honorable Mayor and Members of the City Council through City Manager FROM: D WtI6�,F.ASCE — Director, Public Works & Utilities Joe Rye — Transit 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 16/17 RECOMMENDATION 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 16/17. BACKGROUND Two major sources of funding are available to develop and support public transportation in California: the Transportation Development Act (TDA), which is the source of the Local Transportation Fund (LTF); and the State Transit Assistance Fund (STA). A one-quarter cent statewide sales tax 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 and STA programs, which represent the main source of funds used to operate Petaluma's fixed route and paratransit service, require the transit agency's governing bodies to adopt a resolution of support as a condition of applying for these annual funds. Total available FY 16/17 TDA funds have increased by .48% from the prior year while STA funds are expected to be down 5%. The City of Petaluma requests these funds every spring for the upcoming fiscal year. The City Council approved the most recent TDA/STA application on May 18, 2015. DISCUSSION The total FY 16/17 apportionment to Petaluma is $2,582,282 based on the initial TDA apportionment for each city in Sonoma County. Contributions to Golden Gate Transit and Sonoma County Transit are taken from the City allocation. Golden Gate Transit, the County's intercity and regional transit provider, receives $744,894 (29%) of what would otherwise be Petaluma's share of the funding. In addition, Sonoma County Transit receives $239,516 (9%) to support Sonoma County intercity services. Of that, $199,597 supports Routes 44 and 48 to Rohnert Park, Sonoma State University, and Santa Rosa, and $39,919 for intercity paratransit. This leaves Petaluma with an estimated $1,597,872 remaining of LTF funds. This year, Petaluma Transit is requesting $1,710,847 from TDA, $1,448,721 in operating funds and $262,186 in capital funds. This targets all available TDA funds for FY 16/17 plus $112,976 from TDA Reserves. The larger than usual capital funds request will contribute to the local match for the three fixed -route buses that the City is buying, and will pay for needed improvements to the transit yard. TDA reserves are normally used to fund the local match on capital projects, and to provide a cushion against future economic downturns. The Petaluma TDA reserves at the end of FY 16/17 are projected to be at $700,000. In addition to the TDA apportionment, $188,678 in FY 16-17 STA funds will be requested. Beyond these two largest sources of operating funds, Petaluma Transit also receives key funding from local Measure M, passenger fares, and competitive grant programs at the regional and federal levels. Approval of the attached resolution will authorize staff to file an application with the MTC for allocation of the TDA/STA funds needed to run the City's transit system for FY 16/17. This action constitutes a definite program commitment on the part of the City to the TDA State Transit Assistant Funds program, and therefore requires review under the California Environmental Quality Act ("CEQA") regarding potential environmental impacts. However, this program activity consists of the operation, maintenance, and/or minor alteration of existing public facilities, including facilities of publicly -owned utilities used to provide public transit services, and involves negligible or no expansion of use beyond that currently existing. Accordingly, this activity is exempt from the requirements of CEQA in accordance with section 15301, subdivision (b) of the CEQA Guidelines. The proposed action meets Council Goal: "Achieve fiscal stability and maintain financial sustainability". This item was recommended for Council approval by the Transit Advisory Committee at their June 2, 2016 meeting. FINANCIAL IMPACTS The targeted funding is reflected in the proposed FY 16/17 Budget request. ATTACHMENTS 1. Resolution 2 Attachment 1 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 FISCAL YEAR 2016-2017 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 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 LTF for Sonoma County and STA funds will be required by applicant in Fiscal Year 16/17 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 Exhibit I, attached; and WHEREAS, this program activity, namely, the purchase of three replacement, fixed - route buses and bus yard improvements and security features consists of the operation, maintenance, and/or minor alteration of existing public facilities, including facilities of publicly - owned utilities used to provide public transit services, and involves negligible or no expansion of use beyond that currently existing as of the time of the Council consideration and possible action on the 2015 MTC grant application, in accordance with section 15301, subdivision (b) of the CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The above recitals are declared to be true and correct and are hereby made findings of the City Council. 2. The contemplated program activity consists of the operation, maintenance, and/or minor alteration of existing public facilities, including facilities of publicly -owned utilities used to provide public transit services, and involves negligible or no expansion of use beyond that currently existing as of the time of the Council consideration and, accordingly, this project is exempt from the requirements of CEQA in accordance with section 15301, subdivision (b) of the CEQA Guidelines. 3. 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 FYI 6/17. 4. Staff is directed to transmit a copy of this Resolution to the Metropolitan Transportation Commission, including the Opinion of Counsel attached to and made a part of this Resolution as Exhibit I in conjunction with the filing of the claim; and the Metropolitan Transportation Commission is requested to grant the allocation of funds as specified in the claim. 0 OPINION OF COUNSEL TO: METROPOLITAN TRANSPORTATION COMMISSION FROM: CITY OF PETALUMA DATE: June 20, 2016 RE: ELIGIBILITY FOR TRANSPORTATION DEVELOPMENT ACT FUNDS/ STATE TRANSIT ASSISTANCE FUNDS This communication will serve as the requisite opinion of counsel in connection with the application of the City of Petaluma for an allocation of Transportation Development Act (TDA)/State Transit Assistance (STA) funds. 1. City of Petaluma is authorized to provide and assist public transportation by acquisition, construction and operation of existing or additional transit facilities. This assistance may be provided directly or by contractual arrangements with other parties. 2. City of Petaluma is an eligible applicant for Transportation Development Act (TDA)/ State Transit Assistance (STA) funds pursuant to PUC sections(s) 99260, 99260(a) and 99400. 3. I have reviewed the pertinent state and local laws, and I am of the opinion that there is no legal impediment to City of Petaluma's making applications for TDA/STA funds. Furthermore, as a result of my examinations, I find that there is no pending_ or threatened litigation which might in any way adversely affect the proposed projects, or the ability of the City of Petaluma to carry out such projects. Sincerely, Legal Counsel Eric Daniy Print Name 5