HomeMy WebLinkAbout06/02/1998, 1D - TRANSIT FUND RATE REVIEW s
council ° -z-�s
j agenda Report
CITY OF SAN LUIS O B I S P O
FROM: Michael D. McCluskey,Public Works Director
Prepared by: David Elliott,Administrative Anal
SUBJECT: Transit Fund Rate Review
CAO RECOMMENDATIONS
1) Review and discuss the Transit Fund rate review
2) Conceptually approve the portion of the budget request to improve traffic engineering which
applies to the Transit program and will result in a$22,100 annual savings in the Transit
program
DISCUSSION
Worksheet Assumptions and Conclusions
The attached worksheet, "Changes in Working Capital -Transit Fund",projects sources of
revenue and uses of revenue for the Transit Fund over the next five years. Worksheet projections
are based on the following assumptions:
• Transportation Development Act(TDA) apportionments will increase by three percent each
year.
• The City will continue allocating all of its TDA grants for alternative transportation and
refrain from contributing general fund revenue for this purpose.
• $545,200 in Federal Transit Administration(FTA) formula grants will be available each year
and this amount will not increase.
• Restrictions on the portion of FTA grants available for operations will continue to be lifted
after 1998-99.
• Transit ridership will not change.
• Transit fares will not increase.
• The annual contribution from Cal Poly will be$174,600 in 1997-98 and will increase at the
same rate as contract bus service prices.
From the worksheet Public Works has concluded that current transit fares plus anticipated FTA
and TDA apportionments will cover all planned operating expenses and capital outlays from
1998-99 through 2002-03 with no reductions in service.
Budget Changes for 1998-99
There is one operating program change recommended for the Transit program, and the request is
attached. That change will result in an annual savings of$22,100 in the Transit program. Note
that this request pertains to two operating programs: Transportation Planning and Engineering as
well as Transit. The portions of the request which apply to Transit are highlighted and italicized.
As was done for 1997-98,in 1998-99 Public Works will shift$50,000 of the operations contract
payment from operating cost to capital outlay. This is simply an accounting procedure;the
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Council Agenda Report-Transit Fund Rate Review
Page 2
payment to the operations contractor will not change. Starting in 1997-98, the Federal Transit
Administration has allowed a calculated portion of annual contract bus service cost to be
considered capital maintenance. The rationale is that when an operations contractor replaces a
large bus component,like a compressor or a transmission,the cost should be capitalized because
such a replacement extends the bus's service life. The practical benefit is that calculated
operating cost is reduced, and certain required performance measures (like the fare revenue to
operating cost ratio and the operating cost per hour) are easier to attain.
Treatment of Grant-Financed CaQtal Project Appropriations
Unlike other enterprise funds,the Transit Fund does not finance capital projects from existing
fund balances or bond issue proceeds. Instead,the Transit Fund uses state and federal grants
which are paid as reimbursements after the projects are completed. Although the City may
appropriate anticipated grant revenues for capital project outlays,if the.project is not completed
in the year of the appropriation, that revenue cannot be earned and realized. For this reason,the
projections for the Transit Fund show grant revenues not earned and project appropriations not
spent in 1997-98 as amounts deferred to 1998-99. The following table shows the status of
various project appropriations:
Projected
To Be To Be
Budgeted Spent Deferred
in 97-98 in 97-98 to 98-99
Maintenance Building Expansion 210,700 0 210,700
Three New Buses 755,900 755,900 0
Multi-Modal Transfer Center 2,725,000 41,100 2,683,900
Short Range Transit Plan 6,500 3,700 2,800
Bus Stop Improvements 11,300 5,600 5,700
Passenger Van 20,000 0 20,000
Service Truck 20,000 0 20,000
Radio Equipment 40,000 0 40,000
Capital Bus Maintenance 1997-98 50,000 50,000 0
Access Road Security Gate 10,000 0 10,000
Financial Management System 4,800 0 4,800
3,854,200 856,300 2,997,900
Attachment
Changes in Working Capital-Transit Fund
Operating Program Change Request
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D-3
1997-99 Financial Plan Supplement: 1998-99 Budget Request
OPERATING PROGRAM CHANGE
PROGRAM: Transportation Planning and Engineering (5050)
REQUEST 1=: Traffic Engineering Improvements
Description
• Increasing the Transportation Assistant position in the Transportation Planning and
Engineering program from half-time to full-time will cost$22,100 each year.
• Eliminating the half-time Transportation Assistant in the Transit program will save
$22,100 each year.
• Increasing annual Cal Poly intern hours from 700 to 1,100 will cost$3,900 each year.
Objective
Eliminate an ongoing backlog of traffic engineering work
Background
At a study session on April 28, 1998 the Council reviewed the situation in Transportation
Planning and Engineering and conceptually approved the recommended program changes.
The Traffic Engineer is a registered engineer and should be spending most of her time on
professional traffic engineering work like managing projects,reviewing accident reports,
confirming the need for neighborhood traffic management projects, and reviewing building and
development plans. Unfortunately,there is a high ongoing level of important but routine work
like taking traffic counts,responding to citizen and Council requests, conducting speed surveys,
verifying traffic signal warrants,reviewing signs and pavement markings at schools, and
troubleshooting traffic counting equipment and systems.
Although these tasks are routine,technician-level work, they are essential and also very time
consuming. For example,responding to a citizen or Council request about a traffic issue at a
specific location typically requires researching past history and policy, observing the existing
situation in the field,reviewing future plans for the location,and summarizing recommendations
in a written report. This painstaking effort not only contributes to good decision making but
minimizes liability exposure as well. But it takes considerable time,ranging from 4 to 24 hours
per request and averaging about 8 hours per request. Attention to all these routine duties leaves
little time for the Traffic Engineer to work on projects and processes with important long term
consequences. Examples of these projects and processes include:
• Preparing conceptual plans for the Traffic Signal Interconnection project
• Managing design of the Chorro/Lincoln Median project
• Setting up meetings with groups from the South Street area and the High Street area to
discuss neighborhood traffic management
• Confirming the need for neighborhood traffic management projects
• Reviewing traffic collision reports
• Learning to use the MinUTP traffic model,particularly to calculate traffic impacts of major
development projects
• Reviewing building and development plans
Traffic Engineering Improvements
Public Works proposes adding resources to accomplish the routine, technician-level workload
and free up time for the Traffic Engineer to work on professional-level tasks. This proposal
involves 1) assigning more traffic-related tasks to the Transportation Assistant, a technician-level
position and 2)hiring more interns. The cost of the recently filled Transportation Assistant
position is split evenly between the general fund and the transit fund This situation obligates
the Transportation Assistant to work half-time for the transit system, even though there may
not be enough high priority transit work to justify such an outlay.
Transferring the full cost of this position to the general fund would allow the Transportation
Assistant more flexibility to work on other transportation tasks, including traffic engineering.
Over the last two years Public Works has successfully hired interns from Cal Poly's engineering
and planning programs to perform routine traffic-related tasks and small special projects. These
interns have proven to be a valuable and talented resource, despite their moving on quickly to
higher paying jobs shortly after graduation.
Cost Changes
Transportation Planning and Engineering Proposed Cost Changes
(5050) Current Costs 1998-99 1999-00
Staffing 172,500 +15,500 +15,500
Contract Services 21,500 +10,500 +10,500
Other Operating Expenditures 3,800
Minor Capi 0
Total 1979W 1 +269000 , +26,0001
Note: Because Public Works contracts with the Cal Poly Foundation to receive student intern
services,the Cal Poly interns are paid from the contract labor account. There is no money
budgeted in 1998-99 for contract labor,but there is $6,600 budgeted in temporary salaries for
interns. The $10,500 shown in the above table comes from transferring$6,600 out of temporary
salaries and adding a new appropriation of$3,900. The account detail shown on the next page
clarifies this situation.
Transit(5070) Proposed Cost Changes
Current Costs 1998-99 1999-00
Staffing 94,600 -22,100 -22,100
Contract Services 1,077,200
Other Operating Expenditures 5,400
Minor Capital 0
Total .1 l77 200 -22100 -22100
Traffic Engineering Improvements
Account Detail
Account Title Account Number 1998.99 1999-00
Salaries-Regular Employees 100.5050.100.001 +17,400 +17,400
Salaries-Tempormy Employees 100.5050.100.004 -6,600 -6,600
Retirement Contributions 100.5050.100.025 +1,600 +1,600
Health and Disability Insurance 100.5050.100.026 +2,500 +2,500
Medicare 100.5050.100.027 +300 +300
Unemployment Insurance 100.5050.100.028 +100 +100
Workers Compensation Insurance 100.5050.100.029 +200 +200
Contract Labor 100.5050.200.052 +10,500 +10,500
Salaries-Regular Employees 530.5070.100.001 -17,400 -17400
Retirement Con&ibutions 530.5070.100.025 -1,600 -I 600
Health and Disab" ' Insurance 530.5070.100.026 -2 00 -2,500
Medicare 530.5070.100.027 -300 -300
Unemployment Insurance 530.5070.100.028 -100 -100
Workers Compensation Insurance 530.5070.100.029 -200 -200
Total +39900 , +3