AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute SB 125 Fund Transfer Agreement between San Joaquin Council of Governments and City of Lodi for Fiscal Years 2024/25 and 2025/26 ($3,779,100) (PW)
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MEETING DATE:
November 20, 2024
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing City Manager to Execute Senate Bill 125 Fund Transfer Agreement between San Joaquin Council of Governments and City of Lodi ($3,779,100).
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BACKGROUND INFORMATION:
The California State Transportation Agency (CalSTA), through Senate Bill (SB) 125, has issued funding to San Joaquin Council of Governments (SJCOG) to be distributed to transit agencies within San Joaquin County for transit projects. The funding will specifically be made available to transit agencies through the Transit and Intercity Rail Capital Program (TIRCP) and Zero-Emission Transit Capital Program (ZETCP). The SB 125 funding is for a four (4)-year period, but only two (2) years of funding have been announced as “unfrozen” and available for disbursement by the State of California. These funding allocation years are Year 1 (FY23/24) and Year 2 (FY24/25). The total of SB 125 funding in San Joaquin (SJ) County for Years 1 and 2 is approximately $68 million.
On February 22, 2024, the SJCOG Board of Directors approved a formula distribution of SB 125 funds for Year 1 and Year 2 funding allocations, on the condition that these funds are used only by existing transit operators to address their operational cost shortfalls associated with the COVID-19 pandemic. Funds not spent by transit operators specifically for this purpose are subject to the intercept clause in the agreement which requires the City to repay the funds to SJCOG and SJCOG to withhold future payments to the City for other purposes. On August 22, 2024, the SJCOG Board of Directors authorized the SJCOG Executive Director to enter into fund transfer agreements with transit operators in SJ County to ensure the timely distribution of SB 125 funds.
While the City’s Transit system continues to operate in a fiscally responsible and sustainable manner, operating costs have risen across the Transit industry, particularly in relation to residual impacts associated with the COVID-19 pandemic, which include vehicle and liability insurance premiums, transit operations contractor expenses, and costs to perform facility, equipment and vehicle maintenance. The SB 125 funds disbursed to Lodi will ensure that the City is able to maintain its high level of service for transit passengers and properly maintain City transit facilities, equipment and vehicles. Additionally, these SB 125 funds will give the City more certainty that it can deliver planned improvements on time, as outlined in the Short-Range Transit Plan Update.
STRATEGIC VISION:
3. Create a fiscal structure to accomplish City Council Strategic Priorities
5. Develop and maintain a robust infrastructure to support a world-class city.
8. Public Well-Being: Be a recognized leader in generating and happy, healthy, high quality of life for all.
FISCAL IMPACT:
Without approval of the Senate Bill 125 Fund Transfer Agreement between SJCOG and City of Lodi, the City would not receive its allocation of SB 125 funding for transit operations. This could reduce the amount of Federal and state funds available for capital projects. There is no impact to the General Fund.
FUNDING AVAILABLE:
Not Applicable.
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Charles E. Swimley
Public Works Director
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Scott R. Carney
City Manager