HomeMy WebLinkAboutStaff Report 3.C 07/16/2018rs5$
DATE: July 16, 2018
TO:
FROM:
Honorable Mayor and Members of the City Council through City Manager
Dan St. John, F.ASCE — Director, Public Works & Utilities
Jared Hall — 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 City of Petaluma Transit Services for FY 18/19
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 City of Petaluma Transit
Services for FY 18/19.
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 authorizing usage of the
funds and ensuring that they are used for eligible expenditures. Upon approval of an application,
MTC authorizes payment of a set amount to be paid 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. The
City of Petaluma submits an application for TDA/STA funds every spring for the upcoming
fiscal year; City Council approved the most recent TDA/STA application on June 5, 2017.
Total FY 18/19 TDA funds available to the City have increased by an estimated 5.06 percent
from the prior year, from $2,690,514 to $2,835,657. In addition, due to Senate Bill 1 (SB 1), the
Road Repair and Accountability Act of 2017, STA funds available to the City have increased by
an estimated 203 percent, fiom $208,871 in FY 17/18 to $632,317 in FY 18/19. Beyond these
two largest sources of operating funds, Petaluma Transit also receives funding from the
following sources: local sales tax Measure M, passenger fares, and competitive grant programs at
the regional and federal level. However, TDA/STA makes up the majority of funding needed to
operate transit service, providing 72 percent in FY 17/18 and an estimated 70 percent in FY
18/19.
DISCUSSION
Petaluma's apportionment for FY 18/19 is $2,835,657, based on the initial TDA estimations.
$816,711, or 29 percent, is diverted to Golden Gate Transit for regional transit services and
$261,569, or 9 percent, is directed to Sonoma County for intercity services, such as Routes 44
and 48 to Rohnert Park, Sonoma State, and Santa Rosa. Payments to Golden Gate Transit and
Sonoma County Transit are drawn from the total, leaving Petaluma with an estimated $1,757,377
of the available apportionment.
This year, Petaluma Transit is requesting $1,211,584 in TDA funds: $1,090,134 in operating
funds and $121,450 in capital funds. The capital funds will contribute to local match
requirements for federally funded projects in FY 18/19, including the purchase of two
replacement paratransit vans, a refurbished fixed route bus, a replacement service car, facility
improvements, and ongoing bus stop improvements. The remaining available funds not
requested will go into reserves.
The FY 18/19 claim will result in a $545,793 increase in Petaluma TDA reserve funds. TDA
reserve funds are funds apportioned to the City and held at the County level; these funds are
available for use by the City on request for operating or capital purposes. TDA reserves at the
end of FY 18/19 are projected at $1,364,477 for Petaluma, an increase from $818,684 in FY
17/18. TDA reserves are normally used to fund the local match on large capital projects, and to
provide a cushion against future economic downturns. The City has a stated goal of reserving at
least a minimum of 50 percent of one year's TDA claim in reserves, equaling a minimum of
$878,688 for FY 18/19.
In addition to the TDA apportionments, $911,812 in FY 18/19 STA funds will be requested. This
is a 337 percent funding increase from the prior year due to the following: additional funds
generated by SB 1 for FY 18/19, delayed disbursement of incremental funds generated by SB 1 in
FY 17/18, and award of "Lifeline" STA funds through SCTA for FY 18/19. Cumulatively, the
added funding helps to stabilize the budget for Petaluma Transit and Paratransit in a year where
the new operations and maintenance contract with MV Transportation will increase costs by 13
percent. If not repealed, funding from SB 1 will continue to provide additional support for future
service improvements. If SB 1 is repealed in November, the City will still receive the FY 17/18
and Lifeline funds, but will lose approximately half a year of FY 18/19 funds, or $316,158 and
any additional SBI related funding in subsequent years. Any resulting revenue shortfall due to
the loss of these funds would be supplanted through a claim of TDA reserves.
The proposed action was reviewed under the California Environmental Quality Act (CEQA)
regarding potential environmental impacts. This activity is exempt from the requirements of
CEQA in accordance with section 15301, subdivision (b) of the CEQA Guidelines (exhibit A). 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 18/19.
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The proposed action meets the stated City Council Goal to: "Achieve fiscal stability and
maintain financial sustainability". This item was recommended for Council approval by the
Transit Advisory Committee at their July 5, 2018 meeting.
FINANCIAL IMPACTS
The targeted funding of $2,123,396 ($1,211,584 from TDA and $911,812 from STA) is reflected
in the FY 18/19 Budget. The budget will increase the City's TDA funding reserve to $1,364,477.
Failure to submit an application would result in the City not receiving this funding and not being
able to increase its funding reserve to help safeguard against a future increase in costs or
potential drop in funding levels potentially resulting in reduced transit service throughout
Petaluma.
ATTACHMENTS
1. Resolution
2. Exhibit A to Resolution — Notice of Exemption
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 CITY OF PETALUMA TRANSIT SERVICES
FOR FY 18/19
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 the City of Petaluma in Fiscal Year 18/19 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.
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 18/19.
4. Staff is directed to transmit a copy of this signed 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.
11
Attachment 2
Exhibit A
RETURN TO:
City of Petaluma
Petaluma Transit
555 N. McDowell Blvd.
Petaluma, CA 94954
TO: Sonoma County Clerk
2300 County Center Drive
La Plaza, Building B, Suite 177
Santa Rosa, CA 95406
Project Title: 2018/19 Application for TDA/STA funding for Petaluma Transit
(fixed route and project service)
Project Applicant: The City of Petaluma
Project Location: Within city limits of Petaluma, Sonoma County
Project Description: Application for continued funding of the existing fixed route and paratransit bus
services within the corporate limits of the City of Petaluma. The fixed route set -vice has
30 to 75 -minute headways. The Paratransit service is on demand, with 24-hour notice,
to the general public and those with disabilities. No significant changes to existing
routes or service are proposed.
Exempt Status:
Statutory Exemptions Categorical Exemptions
(Article 18:Section 21080;15260) (Article 19:Section 21084;15300)
[ ] Ministerial (See. 15268) [ X ] Existing Facilities (See. 15301)
[ ] Feasibility/Planning Study (Sec. 15262) [ ] Replacement or Reconstruction (Sec. 15302)
[ ] Emergency Project (See. 15269) [ ] Small Structures (Sec.15303)
[ ] General Rule (Sec.15061(b)(3)) [ ] Minor Alterations (See. 15304)
[ ] Other: (Sec. ) [ ] Minor Subdivisions (Sec.15315)
Reasons why project is exempt: The project is for funding to continue existing operation of the Petaluma bus
service. No significant expansion of existing services is proposed at the time of the lead agency's
determination.
Lead Agency: City of Petaluma, Public Works Department, Transit Division
555 N. McDowell Blvd., Petaluma, CA 94954
Department/Contact Person: Eric Danly, City Attorney
Signature (Senior Plarmer/CEQA Compliance)
Phone: (707) 778-4402
Date: