Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
NOVEMBER 15, 2017
Subject
SUBJECT: SB1: STATE TRANSIT ASSISTANCE STATE OF
GOOD REPAIR PROGRAM (STASGR)
Action
ACTION: APPROVE RESOLUTION FOR RECIPIENT CERTIFICATIONS AND ASSURANCES
Heading
RECOMMENDATION
Title
APPROVE the Resolution in Attachment A to:
A. AUTHORIZE the Chief Executive Officer (CEO) or his designee to receive STASGR funds from the State Controller’s Office (SCO); and
B. CERTIFY that Metro will comply with STASGR Recipient Certifications and Assurances, and authorize the CEO or his designee to execute all required documents and any amendments with the California Department of Transportation.
Issue
ISSUE
The California Department of Transportation (Caltrans) issued the formal draft of the SB1 State of Good Repair Program Guidelines on October 6, 2017. The guidelines state that in order to qualify for eligibility to receive funding allocations, potential recipients must submit a signed, dated and Board-approved Certifications and Assurances document and a signed and dated Authorized Agent Form to Caltrans. Therefore, staff is seeking Board approval to submit the resolution contained in Attachment A.
Discussion
DISCUSSION
On April 28, 2017, Governor Brown signed Senate Bill 1 (SB1) into law. Section 19 of SB1 modifies the State Transit Assistance (STA) program to provide new funding to transit operators in California for eligible state of good repair capital projects. The STASGR is funded from a portion of the new Transportation Improvement Fee on vehicle registrations commencing January 1, 2018.
Even with only six months’ worth of revenues in Fiscal Year 2018, the State Controller’s Office (SCO) estimates the STASGR will provide $105 million statewide, with more than $31.6 million coming to Los Angeles County. Fiscal Year 2019 is projected to be approximately double that amount. The funds will be distributed using the STA formula, so the Municipal Operators also will receive funding from this program. While the funding is formula driven, all eligible recipients are required to submit to Caltrans lists of capital projects on which they plan to use the funds. These projects must be approved by Caltrans before the SCO will release the funds. Metro staff will meet with the Municipal operators to ensure all eligible recipients in the county are updated and aware of program requirements, submittals and deadlines.
Since this is a new program, Caltrans is in the process of drafting guidelines. The formal draft of the guidelines was issued on October 6 and is expected to be finalized in mid-December. Metro staff have distributed the draft guidelines to the eligible operators in the county and are participating in the review process. The program schedule in the formal draft gives a January 31, 2018 deadline for submission of all required documentation in order to be eligible for the first quarterly distribution. Agencies that miss this deadline risk forfeiture of their first quarter funds.
Two of the required documents are standard procedural forms: the Authorized Agent form and the Certifications and Assurances form. A Board-adopted resolution accompanying the Certifications and Assurances form is required by Caltrans. Since the Metro Board is not scheduled to meet again until just before the January 31 deadline, staff is requesting approval of the resolution in Attachment A so Metro may submit the necessary documents in a timely manner.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The requested actions will have no impact on the safety of our customers or employees.
Financial_Impact
FINANCIAL IMPACT
Adoption of the STASGR resolution and authorization of the CEO to execute the required documents and receive STASGR funds will enable Metro to access a significant new funding source to support the agency’s state of good repair program.
Impact to Budget
By itself, this action has no impact on the FY18 budget. Staff is currently reviewing state of good repair projects to determine the optimal candidates for the initial submittal to claim Metro’s share of the STASGR funding.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to approve the resolution in Attachment A. Staff does not recommend this alternative because delays would risk loss of Metro’s initial quarterly STASGR fund allocation amount.
Next_Steps
NEXT STEPS
• Execute and submit the required forms and Board-adopted resolution to Caltrans;
• Meet with Municipal Operators to ensure they are aware of program requirements, submittals and deadlines;
• Develop Metro state of good repair project list for initial submittal.
Attachments
ATTACHMENTS
Attachment A - Resolution to Execute STASGR Certifications and Assurances and Authorized Agent Forms
Prepared_by
Prepared by: Timothy Mengle, Director, OMB, (213) 922-7665
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
