SBCAG STAFF REPORT. MEETING DATE: December 16, 2010 AGENDA ITEM: 6G

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SBCAG STAFF REPORT SUBJECT: Transportation Development Act (TDA) MEETING DATE: December 16, 2010 AGENDA ITEM: 6G STAFF CONTACT: Aubrey Spilde, Michael Powers RECOMMENDATION: 2.

1 SBCAG STAFF REPORT SUBJECT: Transportation Development Act (TDA) MEETING DATE: December 16, 2010 AGENDA ITEM: 6G STAFF CONTACT: Aubrey Spilde, Michael Powers RECOMMENDATION: 2. Approve resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years. SUMMARY: California Public Utilities Code (PUC) requires regional transportation planning agencies (RTPAs) such as SBCAG to conduct performance audits every three years of their activities as well as the activities of the transit operators to which they allocate Transportation Development Act (TDA) funds. SBCAG contracted with the consulting firm PMC (Pacific Municipal Consultants) to conduct the TDA triennial performance audits for fiscal years (FYs) 2006/ /09. One of PMC s findings was that Lompoc is not in compliance with the farebox recovery ratio requirements and, since City of Lompoc Transit (COLT) did not begin service before July 1, 1974, it is not eligible to qualify for TDA funds using an alternative requirement called the 5 expenditure limitation, as it has been doing. Lompoc must meet the farebox recovery requirements. SBCAG and Lompoc staff met to discuss the issue and determined TDA statute allows SBCAG to temporarily reduce Lompoc s farebox requirement from to to provide a grace period before Lompoc must meet the requirement. Staff prepared the attached resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years. Staff discussed this issue with TTAC and SBCTAC at their November meetings. TTAC unanimously recommended approval of the resolution at its meeting on December 2. Staff recommends the Board approve the resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years. DISCUSSION: California Public Utilities Code (PUC) requires regional transportation planning agencies (RTPAs) such as SBCAG to conduct performance audits every three years of their activities as well as the activities of the transit operators to which they allocate Transportation Development Act (TDA) funds. SBCAG allocates TDA funds to City of Lompoc Transit (COLT), Santa Barbara County Transit (Cuyama and Los Alamos), Easy Lift, City of Guadalupe Transit, Santa Barbara Metropolitan Transit District (MTD), Santa Maria Area Transit (SMAT), Santa Maria Organization of Transportation Helpers (SMOOTH), and Santa Ynez Valley Transit (SYVT). SBCAG contracted with the consulting firm PMC (Pacific Municipal Consultants) to conduct the TDA triennial performance audits for fiscal years (FYs) 2006/ /09. PMC reviewed compliance, implementation of prior audit recommendations, and agency functions, and made

2 findings and recommendations. Your board approved the approved triennial performance audits for SBCAG and the transit operators in Santa Barbara County on October 21, One of the operator compliance requirements PMC reviewed was farebox recovery ratio. Lompoc s required ratios are for fixed route service (including local COLT service, the Santa Barbara Shuttle, and the Wine Country Express) and for ADA curb-to-curb service, or for its services combined. PMC found: The COLT system does not meet the urbanized farebox recovery ratio of 20 percent. The City [of Lompoc] has indicated to SBCAG that it qualifies for Local Transportation Funds (LTF) funds under the 50 percent expenditure limitation (rather than under the farebox recovery ratio requirement). SBCAG has been accepting Lompoc s indication and the consultant for the previous triennial performance audit (FY 2003/ /06) agreed, stating that Lompoc s failure to meet the required farebox recovery ratio is mitigated by compliance with the 5 expenditure limitation. PMC found, however, that In spite of SBCAG s finding of compliance with the 50 percent expenditure limitation, the TDA statute indicates that only certain operators could qualify for LTF under the expenditure limitation. The California Code of Regulations Section 6633 states that an operator that began service before July 1, 1974 may qualify under PUC (50 percent expenditure limitation) or the farebox recovery ratio. Since Lompoc commenced general public demand response service in 1976, it does not have the option of abiding by the 50 percent rule and would therefore be subject only to the farebox recovery standard. Therefore, Lompoc must begin meeting its farebox requirement in FY 2011/12. If Lompoc does not meet the requirement, the law requires SBCAG to reduce Lompoc s TDA funding. SBCAG staff and Lompoc staff began discussions as soon as this finding was presented in the draft performance audit. Staff from the two agencies discussed how Lompoc could improve its farebox, and how SBCAG could provide relief until that happens. Lompoc has indicated meeting the farebox requirements will be difficult, and reductions in TDA funding would likely mean reductions in transit service, something both agencies hoped to avoid. Based on discussions with COLT staff, there are a couple of reasons why Lompoc has historically had difficulty meeting the required farebox ratios (see Attachment 1): 1. The County of Santa Barbara, which contributes funds for service Lompoc provides in the unincorporated areas of the Lompoc Valley, used to make its contribution in Measure funds. Measure funds are local funds and may be included in Lompoc s farebox to boost the farebox ratio. Beginning in 1999, however, the County instead contributed mostly or entirely TDA funds, which cannot be included in Lompoc s farebox and do not boost Lompoc s farebox ratio. 2. As Lompoc has expanded service (in part in response to the TDA unmet transit needs process and regular complaints about using TDA funds for streets and roads), operating costs have increased and therefore farebox has decreased. The graph below shows Lompoc s systemwide farebox recovery ratio history (with Measure D included), along with service changes and fare increases. 2

3 Fare incr. Start SB Shuttle Route 5 to Bridgehouse DAR for ADA only Start WCE Fare incr. AHC evening service Extend service to 8 PM Start Route 5 Start Route 2A Adjust Route 3 (bi-directional) Lompoc staff has begun preparing a new Short Range Transit Plan (SRTP) which will address the efficiency of transit services. The SRTP may provide insight into improving the farebox recovery ratio, hopefully identifying cost-saving and revenue-enhancing measures. In the meantime, the TDA statute (PUC ) does provide for some temporary relief, allowing SBCAG to lower Lompoc s required farebox recovery ratio to as low as. SBCAG staff suggests utilizing this option and reducing Lompoc s ratio to for a period of three years (FY 2011/ /14). Prior to reducing Lompoc s required ratio, SBCAG must make findings specifying the reasons for the action. The reasons are that 1) Lompoc has been under the impression it need not meet its farebox requirements in order to qualify for TDA funds, an impression that was reinforced by previous triennial performance audits, 2) Lompoc is initiating a SRTP update that should identify cost-saving and revenue-enhancing measures that will likely require time to implement, and 3) Lompoc will likely have difficulty immediately meeting its farebox requirements, evidenced by the fact that the agency has not done so in more than five years. Temporarily reducing Lompoc s farebox requirement to provides a grace period before Lompoc must meet the requirement. Staff has prepared a resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years; it is attached. Staff recommends the Board approve the resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years. COMMITTEE REVIEW: Staff discussed this issue with TTAC and SBCTAC at their November meetings. TTAC unanimously recommended approval of the resolution at its meeting on December 2. Richard Fernbaugh thanked SBCAG staff for w orking w ith Lompoc on this issue. SBCTAC will review the policy at its meeting on December 14. 3

4 ATTACHMENTS: Attachment 1: COLT historical data Attachment 2: Resolution to Reduce the Farebox Recovery Ratio, required under TDA, for the City of Lompoc to for three years 4

5 Attachment 1: COLT historical data Systemwide Data (Figures from 2004, 2007, and 2010 TDA Triennial Performance Audits) COLT Systemwide Farebox Ratio (w/o Measure D) 8% 8% 8% 9% 8% 11% COLT Systemwide Farebox Ratio (w/measure D) 21% 19% 19% 16% COLT Systemwide Ridership 350, , , , , , , , , , , , , , ,729 50,000-5

6 Fixed Route Data (Figures from 2007 and 2010 TDA Triennial Performance Audits) COLT FR Farebox Ratio (w/o Measure D) 8% 8% 8% 9% 8% 11% COLT FR Farebox Ratio (w/measure D) 16% COLT FR Ridership 350, , , , , , , , , , , , ,710 50,000-6

7 Demand Response Data (Figures from 2007 and 2010 TDA Triennial Performance Audits) COLT DR Farebox Ratio (w/o Measure D) 8% 8% 8% 9% 8% 11% COLT DR Farebox Ratio (w/measure D) 16% 350, , , , , ,000 50,000 - COLT DR Ridership 19,870 22,082 23,955 22,605 26,364 24,568 21,019 7

8 A RESOLUTION OF THE SANTA BARBARA COUNTY ASSOCIATION OF GOVERNMENTS REDUCTION OF FAREBOX RECOVERY ) RATIO REQUIRED UNDER THE ) RESOLUTION NO TRANSPORTATION DEVELOPMENT ACT ) ) WHEREAS, the Santa Barbara County Association of Governments (SBCAG) has been designated as the Regional Transportation Planning Agency for Santa Barbara County; and WHEREAS, Santa Barbara County has a population of less than 500,000; and WHEREAS, City of Lompoc Transit (COLT) provides fixed route and demand response transit service in the Lompoc Urbanized Area; and WHEREAS, the CCR Section 6633 states that an operator that began service before July 1, 1974, may qualify for TDA funds under either the farebox recovery ratio requirement or the 5 expenditure limitation; and WHEREAS, City of Lompoc Transit is required to maintain a farebox recovery ratio of at least for fixed route service and for demand response service, or for systemwide service, to be eligible for TDA funds; and WHEREAS, City of Lompoc Transit has been receiving TDA funds under the 5 expenditure limitation rather than the farebox recovery ratio requirement; and WHEREAS, the 2003/ /06 triennial performance audit of City of Lompoc Transit found that COLT s failure to meet the required farebox recovery ratio was mitigated by compliance with the 5 expenditure limitation; and WHEREAS, Lompoc began general public demand response service in 1976, not before July 1, 1974; and

9 Res. No , Page 2 WHEREAS, the 2006/ /09 triennial performance audit of City of Lompoc Transit found that COLT is not eligible to qualify for TDA funds using the 5 expenditure limitation; and WHEREAS, COLT has not achieved a farebox recovery ratio since FY 2002/03; and WHEREAS, the California Code of Regulations (CCR) Section provides that a transportation planning agency may make findings to establish a required farebox recovery ratio of no less than for an operator serving an urbanized area in a county with a population less than 500,000; and WHEREAS, City of Lompoc Transit and SBCAG staff have discussed the issue; and WHEREAS, SBCAG has considered the size, density, dispersed employment, among other factors of the Lompoc Urbanized Area in which COLT provides services to the general public in the transportation planning process as shown below: The population of the Lompoc Urbanized Area, according to the American Community Survey, is 51,512. The density of the City of Lompoc, according to the 2000 Census, is 3,532.2 people per square mile and 1,170.5 housing units per square mile; and WHEREAS, SBCAG has considered the proportion of COLT s ridership that is transit dependent, including elderly, handicapped and low-income patrons, as appropriate, in the transportation planning process as shown below: The percentage of Lompoc Urbanized Area households with no vehicle available, according to the American Community Survey, is. The percentage of the Lompoc Urbanized Area population age 65 and older, according to the American Community Survey, is.

10 Res. No , Page 3 The percentage of the Lompoc Urbanized Area population age 5 and older with a disability, according to the American Community Survey, is 16.8%. The percentage of Lompoc Urbanized Area families with an income below the poverty level, according to the American Community Survey, is 9.3%. The percentage of Lompoc Urbanized Area residents with an income below the poverty level, according to the American Community Survey, is 13.; and WHEREAS, Lompoc is initiating a Short Range Transit Plan update that will identify cost-saving and revenue-enhancing measures that will likely require additional time to implement; NOW, THEREFORE, BE IT RESOLVED that the required farebox recovery ratio for the City of Lompoc is hereby changed from to (for fixed route service or systemwide service) for a period of three years (2011/ /14), at which time SBCAG and City of Lompoc staff will evaluate the need to continue the reduction; and BE IT FURTHER RESOLVED that the required farebox recovery ratio for City of Lompoc demand response service will remain at ; and BE IT FURTHER RESOLVED that approval of a reduction in the farebox recovery ratio requirement for City of Lompoc does not set a precedent for such actions by SBCAG. PASSED AND ADOPTED this 16 th day of December 2010 by the following vote: AYES: NOES: ABSENT: ABSTAIN:

11 Res. No , Page 4 ATTEST: Jim Kemp Executive Director Salud Carbajal, Chair Santa Barbara County Association of Governments APPROVED AS TO FORM: Steve Underwood Chief Assistant County Counsel

County of Sonoma Agenda Item Summary Report

County of Sonoma Agenda Item Summary Report Agenda Item Number: 1 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA 95403 To: Board of Supervisors