File #: 2016-0318   
Type: Resolution Status: Passed
File created: 4/6/2016 In control: Finance, Budget and Audit Committee
On agenda: 6/15/2016 Final action: 6/23/2016
Title: ADOPT: A. Findings and Recommendations (Attachment A) for allocating fiscal year (FY) 2016-17 Transportation Development Act (TDA) Article 8 funds estimated at $25,188,543 as follows: 1. In the City of Avalon there are no unmet transit needs that are reasonable to meet, therefore TDA Article 8 funds (Attachment B) in the amount of $150,107 may be used for street and road projects, or transit projects, as described in Attachment A; 2. In the Cities of Lancaster and Palmdale, transit needs are met using other funding sources, such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $6,285,096 and $6,137,530 (Lancaster and Palmdale, respectively) may be used for street and road purposes and/or transit, as long as their transit needs continue to be met; 3. In the City of Santa Clarita, transit needs are met with other funding sources, such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $8,3...
Indexes: Avalon, Budgeting, Formula Allocation / Local Return, Lancaster, Local Returns, North Los Angeles County subregion, Palmdale, Proposition A, Proposition C, Resolution, San Fernando Valley subregion, Santa Clarita, State laws, Tda Article 8 Formula Subsidies (Project), Transportation Development Act - Article 4, Transportation Development Act of 1971
Attachments: 1. A- FY17proposedfindingsandrecommendations, 2. B- TDA8ApportionmentAttachmentB, 3. C- FY2016-17TDAarticle8resolutionC, 4. D- HistoryanddefinitionsTDA8D, 5. E - TDA Article 8 Public HearingprocessE, 6. F- Summary of Comments, 7. G - City Letters, 8. H - ProposedRecommendationofSSTAC
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FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 15, 2016

Subject/Action
SUBJECT: TRANSPORTATION DEVELOPMENT ACT (TDA) ARTICLE 8 FUND PROGRAM

ACTION: ADOPT FINDINGS, RECOMMENDATIONS AND RESOLUTION FOR FY 2016-17 TDA ARTICLE 8 UNMET TRANSIT NEEDS

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RECOMMENDATION

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ADOPT:

A. Findings and Recommendations (Attachment A) for allocating fiscal year (FY) 2016-17 Transportation Development Act (TDA) Article 8 funds estimated at $25,188,543 as follows:

1. In the City of Avalon there are no unmet transit needs that are reasonable to meet, therefore TDA Article 8 funds (Attachment B) in the amount of $150,107 may be used for street and road projects, or transit projects, as described in Attachment A;

2. In the Cities of Lancaster and Palmdale, transit needs are met using other funding sources, such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $6,285,096 and $6,137,530 (Lancaster and Palmdale, respectively) may be used for street and road purposes and/or transit, as long as their transit needs continue to be met;

3. In the City of Santa Clarita, transit needs are met with other funding sources, such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $8,335,265 for the City of Santa Clarita may be used for street and road and/or transit, as long as their transit needs continue to be met;

4. In the Los Angeles County Unincorporated areas of North County, the areas encompassing both the Antelope Valley and the Santa Clarita Valley, transit needs are met with other funding sources, such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $4,280,545 may be used for street and road purposes and/or transit, as long as their transit needs continue to be met; and

B. A resolution (Attachment C) making a determination of unmet public transportation needs in the areas of Los Angeles County outside the Metro service area.

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ISSUE

State law requires that the Los Angeles County Metropolitan Transportation Authority (LACMTA) make findings regarding unmet transit needs in areas outside Metro's service area. If there are unmet transit needs that are reasonable to meet, then these needs must be met before TDA Article 8 funds may be allocated for street and road purposes.

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DISCUSSION
Under the State of California TDA Article 8 statute, state transportation funds are allocated to the portions of Los Angeles County outside Metro's service area. These funds are for "unmet transit needs that may be reasonable to meet". However, if no such needs exist, the funds can be spent for street and road purposes. See Attachment D for a brief summary of the history of TDA Article 8 and definitions of unmet transit needs.
Before allocating TDA Article 8 funds, the Act requires Metro to conduct a public hearing process (Attachment E). If there are determinations that there are unmet transit needs, which are reasonable to meet and we adopt such a finding, then these needs must be met before TDA Article 8 funds can be used for street and road purposes. By law, we must adopt a resolution annually that states our findings regarding unmet transit needs. Attachment C is the FY 2016-17 resolution. The proposed findings and recommendations are based on public testimony (Attachment F) and the recommendations of the SSTAC and the Hearing Board.
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POLICY IMPLICATION
Staff has followed state law in conducting public hearings and obtaining input from the Social Service Transportation Advisory Council (SSTAC) regarding unmet transit needs. The SSTAC is comprised of social service providers and other interested parties in the North County areas. Attachment G summarizes the recommendations made and actions taken during FY 2015-16 (for the FY 2016-17 allocation estimates) and Attachment H is the proposed recommendations of the FY16-17 SSTAC. On April 1, 2016, the TDA Article 8 Hearing Board was convened on behalf of the Board of Directors to conduct the required public hearing process. The Hearing Board developed findings and made recommendations for using TDA Article 8 funds based on the input from the SSTAC and the public hearing process.
Upon transmittal of the Board-adopted findings and documentation of the hearings process to Caltrans Headquarters, and upon Caltrans approval, funds will be released for allocation to the eligible jurisdictions. Delay in adopting the findings, recommendations and the resolution contained in Attachments A and C would delay the allocation of $25,188,543 in TDA Article 8 funds to the recipient local jurisdictions.
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DETERMINATION OF SAFETY IMPACT
Approval of this project will have no impact on Safety.
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FINANCIAL IMPACT
The TDA Article 8 funds for FY 2016-17 are estimated at $25,188,543 (Attachment B). The funding for this action is included in the FY17 Proposed Budget in cost center 0443, project number 410059 TDA Subsides - Article 8.
TDA Article 8 funds are state sales tax revenues that state law designates for use by Los Angeles County local jurisdictions outside of Metro's service area. Metro allocates TDA Article 8 funds based on population and disburse them monthly, once each jurisdiction's claim form is received, reviewed and approved.
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ALTERNATIVES CONSIDERED
The Board of Directors could adopt findings or conditions other than those developed in consultation with the Hearing Board, with input from the state-required SSTAC (Attachment H) and through the public hearing process. However, this is not recommended because adopting the proposed findings and recommendations made by the SSTAC and adopted by the Hearing Board have been developed through a public hearing process, as described in Attachment E, and in accordance with the TDA statutory requirements.
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NEXT STEPS
Once Caltrans reviews and approves the Board-adopted resolution and documentation of the hearing process, we will receive TDA Article 8 funds to allocate to the recipient local jurisdictions.
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ATTACHMENTS

A. FY17 Proposed Findings and Recommended Actions
B. TDA Article 8 Apportionments: Estimates for FY2016-17
C. FY2016-17 TDA Article 8 Resolution
D. History of TDA Article 8 and Definitions of Unmet Transit Needs
E. TDA Article 8 Public Hearing Process
F. FY17 Comment Summary Sheet - TDA Article 8 Unmet Transit Needs Public Testimony and Written Comments
G. Summary of Recommendations and Actions Taken
H. Proposed Recommendations of the FY2016-17 SSTAC

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Prepared by: Kelly Hines, Deputy Executive Officer, Finance (213)-922-4569
Armineh Saint, Program Manager, Local Programming (213) 922- 2369

Reviewed by: Nalini Ahuja, Executive Director, Finance and Budget, (213) 922-3088