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HomeMy WebLinkAboutStaff Report 3.G 07/06/2009CITY OF PFTALUMA, CALIFORNIA 3.G AGENDA BILL July 6, 2009 Agenda Title: Discussion and Possible Adoption of Resolution Authorizing Meeting Date: July b, 2009 the Filing of an Application for FTA Section 5307 Funding for Vehicle Purchase and Preventative Maintenance Projects, Committing the Necessary Meeting Time: 7:00 PM Local Match for the Projects(s), and Stating the Assurance of the City of Petaluma to Complete the Project Cateeorv: ❑ Presentation ❑ Appointments © Consent ❑ Public Hearing ❑ Unfinished Business ❑ New Business Department: Director: Public Works Vincent Marengo Total Cost of Proposal or Proiect: FTA Section 5307 Funding: $1,098,280 Total Local Match: $274,570 Contact Person: Phone Number: Joe Rye (707)778-4421 Amount Budgeted: Operating - $280,000 for Preventative Maintenance Capital - Budget will be amended to add vehicle purchase once grant application is approved Name of Fund: Transit Account Number: 6500.65100.44310 Current Fund Balance: $2,579,803 Recommendation: It is recommended that the City Council take the following action: Adopt the resolution authorizing the filing of an application for FTA Section 5307 funding for vehicle purchase and preventative maintenance projects, committing the necessary local match for the projects(s), and stating the assurance of the City of Petaluma to complete the project t. ❑ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ❑ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ❑ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: In 2008, the City of Petaluma became a Federal Transit Administration (FTA) direct grantee. This allows the City to apply for FTA funding for capital projects. Currently, the Metropolitan Transportation Commission is soliciting transit projects from eligible federal grantees for programming regional apportionments of FY 2009-10 through FY 2011-12 FTA Section 5307 and 5309 funds. As part of the application process, eligible grantees are required to have a Resolution from their governing body authorizing the submission of a grant application and the commitment to provide matching funds. Once the MTC finalizes the list of transit projects for the region (Program of Projects), the project sponsors (tire City) can submit them for inclusion in the region's Transportation Improvement Program (TIP). Attachments to Agenda Packet Item: Resolution Authorizing the Filing of an Application for FTA Section 5307 Funding for Vehicle Purchase and Preventative Maintenance Projects, Committing the Necessary Local Match for the Projects(s), and Stating the Assurance of the City of Petaluma to Complete the Project Reviewed by Finance Director: Reviewed by City Attornev: Apnro gd.1w-Qty Manager: ADa Date: Date:-G� Rev. *.5L Date Last Revised: File: 5:%Transit & TransportatiWCC Agenda Bills\ rA Funding12a09 6/25/09 11:40 am FTA Authorizing ResD 1V CITY OF PETALUMA, CALIFORNIA JULY 6, 2009 AGENDA REPORT FOR DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR FTA SECTION 5307 FUNDING FOR VEHICLE PURCHASE AND PREVENTATIVE MAINTENANCE PROJECTS, COMMITTING THE NECESSARY LOCAL MATCH FOR THE PROJECTS(S), AND STATING THE ASSURANCE OF THE CITY OF PETALUMA TO COMPLETE THE PROJECT 1. RECOMMENDATION It is recommended that the City Council adopt the resolution authorizing the filing of an application for FTA Section 5307 funding for vehicle purchase and preventative maintenance projects, committing the necessary local match for the projects(s), and stating the assurance of the City of Petaluma to complete the project. 2. BACKGROUND: In 2008, the City of Petaluma became an eligible FTA grant recipient. This eligibility allows the City to compete within the region for Section 5307 transit funding. The Metropolitan Transportation Commission recently issued a call for projects soliciting transit projects from eligible grantees. In response, Petaluma Transit has requested funding for vehicle replacements and preventative maintenance. FTA Section 5307 funds are allocated to different Urbanized Areas (UA) within the region by formula. Along with Golden Gate Transit and Sonoma County Transit, the City of Petaluma is eligible to compete for funds within the Petaluma UA. Although this is a federal fund source, the Metropolitan Transportation Commission is the designated recipient for all the Urbanized Areas within the nine county Bay Area. To facilitate the distribution of funds within the region, the Conlllussion has developed a project programming process for allocating funds to the individual transit operators within the region called the Transit Capital Priorities (TCP) program. The goal of the TCP program is to fund transit projects that are most essential to the region. Projects submitted to MTC under this call for projects are scored, based upon the TCP. Replacement vehicles are the highest scoring projects and in most years, the region receives only enough funds to cover this need. However, several years ago, the Commission modified the TCP program to "set-aside" 10% of the funds to distribute to the operators based on a formula similar to the formula used to distribute hinds to each UA. These "set-aside" funds can be used by each transit operator, at its own discretion, for other eligible projects. Starting with FY 2009-10, Petaluma will be eligible to participate in the "set-aside" program. The amount of funds that will be available to Petaluma through this process is still under discussion. Each year, the Transit Capital Priorities are modified to accommodate changes within the region, and this year, a new component has been added to allow transit operators to defer replacement of vehicles beyond the minimum useful life and use the savings to fiord lower scoring projects. S:Jransit & 'rranspurtation\CC Agenda Bills F -I A Funding13009 FTA Aulhoriling Resu Rev. I Additionally, due to the impact of the current economic situation on transit operators' operating budgets, MTC has set up a one-time region -wide $50 million Preventative Maintenance Reserve. These funds will be made available to transit operators based on the "set-aside" forinula to be used for preventative maintenance or other lower scoring capital needs. Preventative maintenance is the one eligible use of Section 5307 funds for operating purposes within the region. Generally, preventative maintenance receives a low score under the TCP, consistent with the Commission's stated priority of funding basic capital requirements first. 3. DISCUSSION: In response to this call for projects for FY 2010, the City of Petaluma is requesting funds for three vehicle replacements (one paratransit van and two 30' transit buses) and for preventative maintenance. Based on the useful life guidelines in the TCP, the City has six fixed route vehicles and five paratransit vehicles that are eligible for replacement in the current year. However, replacement of four of the fixed route vehicles and four of the paratransit vehicles is being deferred, both because there are not enough funds in the Petaluma UA to pay for all of these replacements in the current year, and to take advantage of the new TCP criteria that allows transit operators to use the savings from deferring replacements to fund other projects. In this case, the fields will be used for preventative maintenance to mitigate the current operating revenue shortfall. 4. FINANCIAL IMPACTS. The following projects were submitted for consideration under the Call for Projects for FY 2009-10. These amounts could change, based on other operators' requests and the outcome of the "set-aside" discussion: The FY 2009-10 preliminary Transit budget relies on this one-time infusion of preventative maintenance funds to support the existing cost structure. Having this one-time use of funds allows Petaluma Transit the opportunity, over the next year, to take several actions to pennanently reduce costs and increase revenues without having to cut service. Specific cost reduction strategies include decreasing parts inventories; re-evaluating intergovernmental fees, as required by the recent MTC Triennial Audit; procurement of new dispatch software to allow for more efficient dispatching of paratransit trips; and soliciting competitive quotes from transit and public agency insurance pools for liability and vehicle physical damage coverage. Revenue enhancing strategies include increasing the available space for bus exterior advertising; exploring state, federal and regional operating grant opportunities; and, possibly, implementing a fare increase. Matching funds for the vehicle replacements will come from existing reserves or from state bond funds. The preventative maintenance project hinds will be matched by the existing revenue in the operating budget. a S:ITrttnsit S. TransporlationlCC Agenda Bills\FTA Vunding�2009 FTA authorizing Rests Rev. I Section Local Project 5307 Match Replace 1 - 26' Gas 2002 cutaway $87,980 $21,995 $742,030 $185,507 Replace 2-29' Chevy gas -powered cutaways with 30' diesel transit buses $26$,270 $67,06$* Preventative maintenance Total $1,098,280 $274,570 *Local match for preventative maintenance will come from existing operating budget The FY 2009-10 preliminary Transit budget relies on this one-time infusion of preventative maintenance funds to support the existing cost structure. Having this one-time use of funds allows Petaluma Transit the opportunity, over the next year, to take several actions to pennanently reduce costs and increase revenues without having to cut service. Specific cost reduction strategies include decreasing parts inventories; re-evaluating intergovernmental fees, as required by the recent MTC Triennial Audit; procurement of new dispatch software to allow for more efficient dispatching of paratransit trips; and soliciting competitive quotes from transit and public agency insurance pools for liability and vehicle physical damage coverage. Revenue enhancing strategies include increasing the available space for bus exterior advertising; exploring state, federal and regional operating grant opportunities; and, possibly, implementing a fare increase. Matching funds for the vehicle replacements will come from existing reserves or from state bond funds. The preventative maintenance project hinds will be matched by the existing revenue in the operating budget. a S:ITrttnsit S. TransporlationlCC Agenda Bills\FTA Vunding�2009 FTA authorizing Rests Rev. I ATTACHMENT" I RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR FTA SECTION 5307 FUNDING FOR VEHICLE PURCHASE AND PREVENTATIVE MAINTENANCE PROJECTS, COMMITTING THE NECESSARY LOCAL MATCH FOR THE PROJECTS(S), AND STATING THE ASSURANCE OF THE CITY OF PETALUMA TO COMPLETE THE PROJECT WHEREAS, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Public Law Public Law 109-59, August 10, 2005) continues the Federal Transit Administration Formula Programs (23 U.S.C. §53) and Surface Transportation Program (23 U.S.C. § 133); and WHEREAS, pursuant to SAFETEA-LU, and the regulations promulgated there under, eligible project sponsors wishing to receive Federal Transit Administration (FTA) Section 5307 grants for a project shall submit an application first with the appropriate metropolitan transportation planning organization (MPO), for review and inclusion in the MPO's Transportation Improvement Program (TIP); and WHEREAS, the Metropolitan Transportation Commission is the MPO for the San Francisco Bay region; and WHEREAS, the City of Petaluma is an eligible project sponsor for FTA Section 5307 fw-lds; and WHEREAS, the City of Petaluma wishes to submit a grant application to MTC for funds from the FY 2009-10 to FY 2011-12 FTA Section 5307 Program funds for the following projects: Transit Bus and Paratransit Van Vehicle Procurements Preventative Maintenance; and WHEREAS, MTC requires, as part of the application, a resolution stating the following: 1) the conunitment of necessary local matching funds of at least 20% for FTA Section 5307 funds; and 2) that the sponsor understands that the FTA Section 5307 Programs funding is fixed at the programmed amount, and therefore any cost increase cannot be expected to be funded with FTA Section 5307 funds; and 3) the assurance of the sponsor to complete the project, as described in the application, and if approved, as programmed in MTC's TIP; and 4) that the sponsor understands that FTA fiends must be obligated within three years of programming, or the project may be removed from the program. NOW, THE, BE IT RESOLVED that the City of Petaluma is an eligible sponsor of projects in the FTA Sections 5307; and BE IT FURTHER RESOLVED that the City of Petaluma is authorized to submit an application for FTA Section 5307 funding for transit bus and paratransit van vehicle procurements and s:Urans€t X Transportation\CC Agenda ©iltslFTA FundiingL0H19 FTA Authorizing Keso Rev. t preventative maintenance in the expected amount of $1,098,280 ("the project") and accept said grant, subject to increase or decrease of the total funded amount in the FTA/MTC process; and BE IT FURTHER RESOLVED that there is no legal impediment to the City of Petaluma making applications for FTA Sections 5307; and BE IT FURTHER RESOLVED that there is no pending or threatened litigation which might in any way adversely affect the proposed project, or the ability of the City of Petaluma to deliver such project; and BE IT FURTHER RESOLVED by the Petaluma City Council that the City of Petaluma is authorized to execute and file an application for funding under FTA Section 5307 of SAFETEA-LU in the determined amount for vehicle procurements and preventative maintenance; and BE IT FURTHER RESOLVED that the Petaluma City Council, by adopting this resolution, does hereby state that: 1) the City of Petaluma will provide a local match of at least 20% for FTA Section 5307 funds; and 2) the City of Petaluma understands that the FTA Sections 5307 funding for the project is fixed at the amount determined by the Metropolitan Transportation Commission, and that any cost increases must be funded by the City of Petaluma from local matching funds, and that the City of Petaluma does not expect any cost increases to be funded with FTA Sections 5307 funds; and 3) vehicle procurements and preventative maintenance will be completed as described in this resolution and, if approved, for the amount shown in the Metropolitan Transportation Corm-nission (MTC) Transportation Improvement Program (TIP) with obligation occurring within the timeframe established below; and 4) the program funds are expected to be obligated within three years of the project being programmed for in the TIP. BE IT FURTHER RESOLVED that a copy of this resolution will be transmitted to the MTC prior to MTC programming the FTA Section 5307 funded project in the Transportation Improvement Program(TIP); and BE IT FURTHER RESOLVED that the MTC is requested to support the application for the project described in the resolution and to program the project, if approved, in MTC's TIP. 6 SATransit & Tran sport atinnlCC Agenda Bills\FTA Fundingh009 FTA Authorizing keso Rev. I