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Home My WebLink AboutAGENDA REPORT 2010 1201 CC REG ITEM 10GMOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council ITEM 1= r:ity Cottnril hreetinn c+r _ 1A — /— A0 / 0' _ ACTION:_a i W_&to . � ono - a9d3. FROM: David K. Klotzle, Interim City Engineer /Public Works Director Prepared by: Shaun Kroes, Senior Management Analyst DATE: November 17, 2010 (CC meeting of 12/01/2010) SUBJECT: Consider Resolution Authorizing the City's Fiscal Year 2010/11 Transportation Development Act Claim SUMMARY The City Council is being asked to consider authorizing the submittal of the Fiscal Year (FY) 2010/11 Transportation Development Act (TDA) claim, in the amount of $929,027.00. The proposed apportioned amounts for Local Transportation 8A Fund (2603) and Local Transit Programs 8C Fund (5000) are different than the adopted FY 2010/11 budget. Staff proposes waiting until the Mid -Year Budget Adjustment to update the numbers. In FY 2008/09, and FY 2009/10 the Ventura County Transportation Commission (VCTC) adjusted Moorpark's TDA revenue as a result of overall declining sales tax revenues. It is possible that this could occur again in FY 2010/11. Rather than make multiple budget amendments, staff is proposing to wait a few months to determine if further updates occur. BACKGROUND Each year the City Council is asked to approve a resolution authorizing the City Manager to submit a claim for the City's TDA funds. The City is required to file this claim annually in order to receive the funds. TDA revenue is generated from a % cent of the 7.25 -cent retail sales tax, and the revenue received must first be spent on transit projects. The recent sales tax increase to 8.25% does not affect TDA funding, as all revenue from the increase goes directly to the State. After meeting any "unmet transit needs that could be reasonably met using TDA funds," the remaining local TDA funds may be used for streets and roads related purposes. If approved, the City would claim its entire $929,027.00 apportionment. This is $4,027.00 more than the currently adopted FY 2010/11 budget. S \Publ c Works\EveryoneWeportslStaff ReportsX20100ecember112 -1 -10 (FY 10-11 70A Chaim) doc 275 Honorable City Council December 1, 2010 Page 2 DISCUSSION TDA funds are apportioned to the ten cities and the county using a formula based on population. The City's FY 2010/11 TDA apportionment is $929,027.00. This is an increase of 0.36% compared to the City's final FY 2009/10 apportionment of $925,738.00, but a 10.5% decrease compared to the City's initial FY 2009/10 apportionment of $1,038,390.00 Economic conditions and changing consumer spending habits affect the amount of TDA sales tax revenue that is generated. The City anticipated the lower budget amount in the FY 2010/11 budget. TDA revenue has traditionally been the primary funding source for the City's transit system, including the Senior Dial -A -Ride and the Americans with Disabilities Act (ADA) Paratransit Dial -A -Ride, the Moorpark City Transit fixed routes, and other transit improvements such as bus shelters. Transit planning efforts by Public Works staff are also funded with TDA revenue. Major capital costs, such as buses, are often funded with federal grants. The City also receives federal funding for bus preventive maintenance, security camera preventive maintenance, and paratransit preventive maintenance /vehicle leases. In those cases, the local matching funds (typically twenty percent) come from TDA funds. TDA also funds the City's share of the VISTA -East (Ventura Intercity Service Transportation Authority) regional bus. After the City's transit (8C) related expenses are met, the remainder is available for streets and roads (8A). Staff proposes that the City's FY 2010/11 claim include $347,252.00 for Local Transit Programs 8C Fund (5000) and $581,775.00 for Local Transportation 8A Fund (2603). The claim is different from the City's FY 2010/11 budget as shown below: Local Transit Programs — 8C Local Transit Programs — 8C FY 10/11 FY 10/11 Difference Adopted Revenue Revenue (Proposed) $333,000 $347,252.00 $14,252.00" * $14,252.00 increase compensates for lower than expected federal funds for transit in FY 2010/11. Transit must be fully funded before remaining TDA funds can be allocated to streets and roads. Streets /Roads — 8A Streets /Roads — 8A FY 10/11 FY 10/11 Difference Adopted Revenue Revenue (Proposed) $592,000.00 $581,775.00 - $10,225.00* * $14,252.00 decreased TDA 8A allocation plus $4,027.00 increase in FY 2010/11 TDA total allocation. The FY 2010/11 budget includes $172,000 in Traffic Systems Management Fund (2001) to fund the operation and fueling of the City's new compressed natural gas (CNG) buses. The use of Fund 2001 enables additional TDA funds to be spent on streets and roads projects. S �Publtc WorksEveryonMReports4StaR Reports\2010\Decembenl2.1.10 (FY 10 -11 TDA Claim) doc 276 Honorable City Council December 1, 2010 Page 3 As mentioned earlier, staff proposes waiting a few months to formally amend the budget to determine if updates to the FY 2010/11 TDA amount occur. Staff has reviewed the potential impacts that the proposed revenue allocations will have on Fund 2603 and Fund 5000. Each fund should remain with sufficient funds to continue its respective budgeted expenses. Adjustments to the FY 2009/10 budget, if necessary, are proposed to be made during the FY 2010/11 Mid -Year Budget Adjustment. FISCAL IMPACT The FY 2010/11 TDA Allocation will provide the City with $929,027.00. Streets and roads will receive $581,775.00 and transit will receive $347,252.00. STAFF RECOMMENDATION Adopt Resolution No. 2010 - Attachment: 1. Resolution 2010 - (FY 2010/11 TDA Claim) (FY 2010/11 TDA Claim) S Tublic Works\Everyone\Reportsl,Start Reports\20100ecemben121-10 (FY 10 -11 TDA Claim) doc 277 Attachment 1 RESOLUTION NO. 2010 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE FILING OF A CLAIM FOR FISCAL YEAR 2010/11 TRANSPORTATION DEVELOPMENT ACT FUNDS WHEREAS, the Transportation Development Act (TDA), as amended (Public Utilities Code Section 99200 et seq.), provides for the allocation of funds from the Local Transportation Fund (LTF) and the State Transit Assistance Fund, for use by eligible claimants for various transportation purposes; and WHEREAS, pursuant to the provisions of the TDA, as amended, and pursuant to the applicable rules and regulations there under (Cal. Code of Regulations Sections 6600 et seq.),* a prospective claimant wishing to receive an allocation from the LTF or the State Transit Assistance Fund shall file its claim with the Ventura County Transportation Commission; and WHEREAS, the City has a need for these funds for both transit and street purposes in FY 2010/11; and WHEREAS, the City is eligible for an estimated amount of $929,027.00 in TDA Funds, Article 8 monies for FY 2010/11. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City Manager and or his designee is authorized to execute and file the City's FY 2010/11 TDA Claim in the amount of $929,007.00, broken down as follows: 1. $581,775.00 — Local Transportation Funds Article 8A (Streets and Roads), and 2. $347,252.00 — Local Transportation Funds Article 8C(Transit). SECTION 2. The City Clerk is directed to transmit a copy of this resolution to the Ventura County Transportation Commission. SECTION 3. 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. S %Public WorkslEveryone\ReporMStaH ReponsX20100ecemben12 -1 -10 (Attach 1 TDA Claim) doc 278 Resolution No. 2010 - Page 2 PASSED AND ADOPTED this 1St day of December, 2010. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk S \Public Works\Everyone\Reports4StaH Reports\20101Decembern12 -1 -10 (Attach 1 TDA Claim) doc 279