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HomeMy WebLinkAboutAGENDA REPORT 2020 0603 REG CCSA ITEM 10ICITY OF MOORPARK, 
CALIFORNIA City Council Meeting of June 03, 2020 ACTION Adopted Resolution No. 2020- 3920, as amended. (Roll Call Vote: Unanimous). BY B.Garza. I. Consider Creating a New Fund for the State of Good Repair Funds and Resolution Authorizing the Transfer of All Assets and Fund Balance from the State Transit Assistance Fund (2413); and Amending the Fiscal Year 2019/20 Budget. Staff Recommendation: Adopt Resolution No. 2020-3920, approving the creation of State of Good Repair Fund (2417), authorizing the transfer of assets and fund balance; and amending the FY 2019/20 Budget by moving the revenue and expenditure budgets from and State Transit Assistance Fund (2413) to State of Good Repair Fund (2417). (ROLL CALL VOTE REQUIRED) (Staff: Irmina Lumbad) Item: 10.I. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Kambiz Borhani, Finance Director BY: Irmina Lumbad, Deputy Finance Director DATE: 06/03/2020 Regular Meeting SUBJECT: Consider Creating a New Fund for the State of Good Repair Funds and Resolution Authorizing the Transfer of All Assets and Fund Balance from the State Transit Assistance Fund (2413); and Amending the Fiscal Year 2019/20 Budget BACKGROUND Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, provides over $5 billion in new transportation funding each year to repair highways, bridges and local roads, to make strategic investments in congested commute and freight corridors, and to improve transit service. This investment in public transit is referred to as the State of Good Repair Program (SGR)i Public Utilities Code (PUC) Section 99312.1 continuously appropriates revenues received from the State Transit Assistance (STA) Program to the State Controller’s Office. The State of Good Repair (SGR) Program is funded from the Transportation Improvement Fee portion of this revenue. The annual funding will be based on population and farebox revenues. The City submitted a Project List to the California Department of Transportation (Caltrans) to receive SGR funding in Fiscal Year (FY) 2018/19. The City also submitted a Project List for STA funding to Caltrans, though it was not specifically required. The City receives STA and SGR funding through the Ventura County Transportation Commission (VCTC). In FY 2018/19, the City Council approved Resolution No. 2018- 3734, designating that the FY 2018/19 SGR and STA allocations be spent on improvements to the Moorpark Metrolink Station and authorized the City Manager to execute all required documents of the SGR program with Caltrans. DISCUSSION Pursuant to PUC Section 99245, recipients of the Transportation Development Act (TDA) are required to submit certified fiscal and compliance audits (California Code of Regulations Section 6664) to the State Controller’s Office and the Regional Item: 10.I. 650 Honorable City Council 06/03/2020 Regular Meeting Page 2 Transportation Planning Authority (RTPA) within 180 days after the end of the fiscal year. VCTC, acting as the RTPA, has been contracting with qualified certified public accountants to perform this requirement. To conform with these requirements, VCTC acting as RTPA, engaged a third party audit firm to assist with either performing the audits or review independent reports issued by the claimants’ auditors. On December 5, 2018, the City Council approved Resolution No. 2018-3769 which authorized the filing of a claim for FY 2018/19 STA ($22,903) and SGR ($3,625.) SGR money was appropriated to fund the Metrolink North Parking Lot Expansion (Project No: C0032). These amounts were to be recorded in the State Transit Assistance Fund (2413) under account 2413-000-P0049-46200 (STA-SB1 SGR Allocation). During the review of the FY 2018/19 audit, VCTC and their contract auditors informed the City that STA and SGR funding should be accounted for and audited individually. For FY 2018/19 the City’s independent external auditor, Lance, Soll and Lunghard, LLP, agreed to issue a separate audit report for each program. To comply with the second request, separating SGR funding from STA, staff recommends State of Good Repair (2417) be created to reflect the financial position and activities related to this program. This fund will be designated as a Special Revenue fund where sources and the use of its money are restricted, as provided by PUC Sections 99212.1(c), 99313 and 99314. The distribution of State Transit Assistance Fund (2413) between STA and SGR as of May 1, 2020 are as follows: Table 1 DISTRIBUTION Account Number Account Name Balance, May 1, 2020 STA SGR 2413-000-00000-10000 CLAIM ON CASH $34,168.96 $28,583.12 $5,585.84 2413-000-00000-33990 FUND BALANCE $19,244.00 $17,088.09 $2,155.91 2413-000-00000-42000 TRANS-6.5 - INVEST EARN $514.26 $436.03 $78.23 2413-000-00000-46200 STA - TRANSIT ALLOC (CNTY)$14,771.14 $14,059.00 $712.14 2413-000-P0049-46200 STA - SB1 SGR ALLOCATION $2,639.56 $0.00 $2,639.56 2413-311-00000-51000 STA-SGR - CONTRACTUAL SVC ($3,000.00) ($3,000.00)$0.00 For FY 2019/20, the City has been approved to receive funding allocation of $20,237 for STA and $3,127 for SGR. SGR fund has been appropriated to fund the Metrolink North Parking Lot Expansion (Project No. C0032). The FY 2019/20 State Transit Assistance Fund (2413) adjusted budget should be allocated between STA and SGR as follows: 651 Honorable City Council 06/03/2020 Regular Meeting Page 3 Table 2 DISTRIBUTION Account Number Account Name Adjusted Budget STA SGR 2413-000-00000-42000 TRANS-6.5 - INVEST EARN $0.00 2413-000-00000-46200 STA - TRANSIT ALLOC (CNTY)$23,000.00 $23,000.00 2413-000-P0049-46200 STA - SB1 SGR ALLOCATION $3,700.00 $3,700.00 2413-311-00000-51000 STA-SGR - CONTRACTUAL SVC $0.00 2413-311-C0029-55200 METROLK SLOT NEW ENTRY-INFRASTRUCT $45,903.00 $45,903.00 2413-430-C0032-55200 METROLK N PARKING - INFRASTRUCT $7,325.00 $7,325.00 FISCAL IMPACT Based on Table 1, $5,585.84 of assets, $2,155.91 of fund balance and aggregate actual revenue of $3,429.93 needs to be transferred along with budget amendment moving revenue of $3,700 and expenditure of $7,325 as listed on Table 2 from State Transit Assistance Fund (2413) to State of Good Repair Fund (2417). COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2020-____, approving the creation of State of Good Repair Fund (2417), authorizing the transfer of assets and fund balance; and amending the FY 2019/20 Budget by moving the revenue and expenditure budgets from and State Transit Assistance Fund (2413) to State of Good Repair Fund (2417). Attachment: Draft Resolution No. 2020-____ 652 ATTACHMENT RESOLUTION NO. 2020-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING THE CREATION OF STATE OF GOOD REPAIR FUND (2417); AUTHORIZING THE TRANSFER OF ASSETS, FUND BALANCE, AND ACTUAL REVENUES FROM STATE ASSISTANCE FUND (2413) TO STATE OF GOOD REPAIR FUND (2417), AND AMENDING THE FISCAL YEAR 2019/20 BUDGET BY TRANSFERRING REVENUE AND EXPENDITURE BUDGET FROM STATE ASSISTANCE FUND (2413) TO STATE OF GOOD REPAIR FUND (2417) WHEREAS, on April 28, 2017, Governor Edmund G. Brown Jr. signed Senate Bill 1 (SB1) (Chapter 5, Statutes of 2017), known as the Road Repair and Accountability Act of 2017. SB1 provides over $5 billion in new transportation funding each year to repair highways, bridges and local roads, to make strategic investments in congested commute and freight corridors, and to improve transit service. This investment in public transit is referred to as the State of Good Repair Program (SGR); and WHEREAS, Public Utilities Code (PUC) Section 99312.1 continuously appropriates revenues received from the State Transit Assistance (STA) Program to the State Controller’s Office. The SGR is funded from the Transportation Improvement Fee portion of this revenue. The annual funding will be based on population and farebox revenues. Per PUC Section 99312.2(c), the only entities eligible to receive direct allocation from the Controller under PUC Sections 99313 and 99314 shall be transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board. For the City of Moorpark, the Ventura County Transportation Commission (VCTC) is the Regional Transportation Planning Authority (RTPA) that allocates funds to sub-recipients accordingly; and WHEREAS, the City of Moorpark is an eligible subrecipient project sponsor and has received STA funding from the SGR for Fiscal Years (FY) 2018/19 ($3,625) and 2019/20 ($3,127) for the Metrolink North Parking Lot Expansion (Project No. C0032); and WHEREAS, pursuant to PUC Section 99245, recipients of the Transportation Development Act (TDA) are required to submit certified fiscal and compliance audits (California Code of Regulations Section 6664) to the State Controller’s Office and the Regional Transportation Planning Authority (RTPA) within 180 days after the end of the fiscal year. VCTC has determined that a separate fund should be created to the State of Good Repair allocations; and WHEREAS, staff is recommending to establish the State of Good Repair Fund (2417). This fund will be designated as a Special Revenue Fund, where sources and the uses of its money are restricted, as provided by PUC Sections 99312.1(c), 99313 and 99314; and 653 Resolution No. 2020-____ Page 2 WHEREAS, based on the analysis of the SGR transactions, it is recommended to process the necessary accounting entries to transfer $5,585.84 of assets; $2,155.91 of fund balance; $3,429.93 in actual revenues; $3,700.00 in budget revenues and $7,325.00 in expenditure budget from State Transit Assistance Fund (2413) to State of Good Repair Fund (2417). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The creation of a State of Good Repair Fund (2417), designated as a Special Revenue fund, is restricted according to PUC Sections 99312.1(c), 99313 and 99314, is hereby approved. SECTION 2. The necessary entries to transfer $5,585.84 of assets; $2,155.91 of fund balance and $3,429.93 in actual revenues from State Transit Assistance Fund (2413) to State of Good Repair Fund (2417), as more particularly described in Exhibit A, is hereby approved. SECTION 3. A budget line items transfer of $3,700.00 in revenues and $7,325.00 in expenditure from State Transit Assistance Fund (2413) to State of Good Repair Fund (2417), as more particularly described in Exhibit B, is hereby approved. SECTION 4. The City Clerk shall certify to the adoption of the resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 3rd day of June, 2020. Janice S. Parvin, Mayor ATTEST: Ky Spangler, City Clerk Attachments: 1 - Exhibit A 2 - Exhibit B 654 Resolution No. 2020-____ Page 3 EXHIBIT A Account Account Name Description Debit Credit 2413-000-00000-10000 Claim on Cash SGR Cash ($5,585.84) 2413-000-00000-59050 STA - Residual Equity Tfer SGR 18/19 fund balance $2,155.91 2413-000-00000-42000 STA - Invest Earnings Alloc 6/2019 FMV Adjust ($9.07) 2413-000-00000-42000 STA - Invest Earnings Alloc ACCRD 6/2019 Invest Interest ($4.71) 2413-000-00000-42000 STA - Invest Earnings 7/19-10/19 Alloc Invest Interest $30.65 2413-000-00000-42000 STA - Invest Earnings 11/19-1/20 Alloc Invest Interest $20.68 2413-000-00000-42000 STA - Invest Earnings 2/20-4/20 Alloc Invest Interest $30.39 2413-000-00000-46200 STA Transit Alloc 18/19 #46 SGR VCTC Interest - Final $1.42 2413-000-00000-46200 STA Transit Alloc 19/20 #65 4/20 SGR Allocation $710.72 2413-000-00000-46200 STA - Invest Earnings 19/20 #65 SGR VCTC Interest $1.43 2413-000-P0049-46200 STA-SB1 SGR Allocation 18/19 #63 SGR allocation $906.38 2413-000-P0049-46200 STA-SB1 SGR Allocation 18/19 #69 SGR allocation $604.25 2413-000-P0049-46200 STA-SB1 SGR Allocation 19/20 #39 SGR Allocation $1,128.93 2413-000-P0049-46200 STA-SB1 SGR Allocation 19/20 #39 SGR VCTC Interest FY1920 $1.38 2413-000-P0049-46200 STA-SB1 SGR Allocation 19/20 #39 SGR VCTC Interest FY1819 $7.48 2417-000-00000-10000 SGR Claim on Cash SGR Cash from STA $5,585.84 2417-000-00000-49500 SGR - Residual Equity Tfer SGR 18/19 fund balance (audited)($2,155.91) 2417-000-00000-42000 SGR - Invest Earnings Alloc 6/2019 FMV Adjust $9.07 2417-000-00000-42000 SGR - Invest Earnings Alloc ACCRD 6/2019 Invest Interest $4.71 2417-000-00000-42000 SGR - Invest Earnings 7/19-10/19 Alloc Invest Interest ($30.65) 2417-000-00000-42000 SGR - Invest Earnings 11/19-1/20 Alloc Invest Interest ($20.68) 2417-000-00000-42000 SGR - Invest Earnings 2/20-4/20 Alloc Invest Interest ($30.39) 2417-000-00000-42000 SGR - Invest Earnings 18/19 #46 SGR VCTC Interest - Final ($1.42) 2417-000-00000-42000 SGR - Invest Earnings 19/20 #65 SGR VCTC Interest ($1.43) 2417-000-00000-42000 SGR - Invest Earnings 19/20 #39 SGR VCTC Interest FY1920 ($1.38) 2417-000-00000-42000 SGR - Invest Earnings 19/20 #39 SGR VCTC Interest FY1819 ($7.48) 2413-000-P0049-46200 STA-SB1 SGR Allocation 19/20 #65 4/20 SGR Allocation ($710.72) 2413-000-P0049-46200 STA-SB1 SGR Allocation 18/19 #63 SGR allocation ($906.38) 2413-000-P0049-46200 STA-SB1 SGR Allocation 18/19 #69 SGR allocation ($604.25) 2413-000-P0049-46200 STA-SB1 SGR Allocation 19/20 #39 SGR Allocation ($1,128.93) Journal Entry: To transfer assets, fund balance and actual revenues from State Transit Assistance Fund (2413) to State of Good Repair Fund (2417) 655 Resolution No. 2020-____ Page 4 FUND BALANCE ALLOCATION: Fund-Account Number Amount 2413-000-00000-33990 3,625.00$ State of Good Repair Fund 2417-000-00000-33990 (3,625.00)$ Total -$ REVENUE BUDGET ALLOCATION: Account Number Current Budget Revision Amended Budget 2413-000-P0049-46200 (3,700.00)$ 3,700.00$ -$ 2417-000-P0049-46200 -$ (3,700.00)$ (3,700.00)$ Total (3,700.00)$ -$ (3,700.00)$ EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2413-430-C0032-55200 7,325.00$ (7,325.00)$ -$ 2417-430-C0032-55200 -$ 7,325.00$ 7,325.00$ Total 7,325.00$ -$ 7,325.00$ Fund Title State Transit Assistance Fund EXHIBIT B BUDGET AMENDMENT FOR STATE TRANSIT ASSISTANCE FUND (2413) and STATE OF GOOD REPAIR FUND (2417) Transfer State of Good Repair Fund Revenue and Expenditure Budget FY 2019/20 656