HomeMy WebLinkAboutStaff Report 3.I 06/05/2017Agenda Item #3.1
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DATE: June 5, 2017
TO: Honorable a or and Members of the City Council through City Manager
FROM: an St. . SCE — Director, Public Works & Utilities
e — ransit 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 17/18
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 17/18.
BACKGROUND
There are two major statewide sources of funding for the operation of local public transportation
in California: the Transportation Development Act (TDA) and the State Transit Assistance
(STA) Fund. TDA funds are generated by a statewide 1/4 -cent sales tax, and STA funds are
generated through taxes on the sales of diesel fuel. Although the County Treasury holds the
revenues, the Metropolitan Transportation Commission (MTC), as the Transportation Planning
Agency for the region, has the responsibility for approving applications and ensuring that the
funds 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 require the transit agency's governing bodies to adopt a resolution of support of the
application as a condition of applying for these annual funds. Total available FY 17/18 TDA
funds have increased by 3.95% from the prior year while STA funds are expected to be down
8 %. 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 June 20, 2016. Beyond these
two largest sources of operating funds, Petaluma Transit also receives funding from local
Measure M, passenger fares, and competitive grant programs at the regional and federal levels;
however, TDA/STA makes up the majority of funding needed to operate transit service,
providing 64% in FYI 6/17 and an estimated 72% in FYI 7/18.
DISCUSSION
Petaluma's share for FY 17/18 is $2,690,514 based on the initial TDA apportionment.
Contributions are drawn from this amount to Golden Gate Transit and Sonoma County Transit
for regional services, leaving Petaluma with an estimated $1,667,213 or 62% of the initial
apportionment for FY 17/18. TDA reserves at the end of FY 17/18 are projected to include
$950,000 for Petaluma. These reserves are held at the County level and are available for use by
the City for operating or capital purposes on request.
This year, Petaluma Transit is requesting $1,820,884 from TDA, $1,737,984 in operating funds
and $64,900 in capital funds. The capital funds request will contribute to the local match for the
purchase of a paratransit van, and will pay for ongoing bus stop improvements. TDA reserves are
normally used to fund the local match on capital projects, and to provide a cushion against future
economic downturns. In addition to the FY 17/18 TDA apportionment, $208,871 in FY 17/18
STA funds will be requested. It should be noted that Petaluma's share of the TDA apportionment
for FY 17/18 is $2,690,514, however $747,330, or 29 %, is diverted to Golden Gate Transit for
regional transit services and $245,971, or 9 %, is directed to Sonoma County for intercity
services, such as Routes 44 and 48 to Rohnert Park, Sonoma State, and Santa Rosa. For that
reason, the City is requesting $135,671 in additional TDA reserve funds through the FYI 7/18
TDA/STA application to meet Transit's revenue needs. It is recommended that Council approve
the attached resolution to authorize staff to file an application with the MTC for allocation of the
TDA/STA funds for FY 17/18.
The proposed action 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 1, 2017 meeting.
FINANCIAL IMPACTS
The targeted funding is reflected in the recently approved FY 17/18 Budget.
ATTACHMENTS
1. Resolution
2. Exhibit A to Resolution
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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 FY 17/18
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 17/18 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 A, attached; and
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 FY 17/18.
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 A 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.
Attachment 2 - Exhibit A to Resolution
DOCUMENT C: OPINION OF COUNSEL
TO: METROPOLITAN TRANSPORTATION COMMISSION
FROM: CITY OF PETALUMA
DATE: April 11, 2017
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.
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.
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.
Sincere v-,-�
Legal Counsel
Eric Danly
Print Name
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