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Home My WebLink About05/21/2002, 2C - TRANSIT FUND REVIEW FOR 2002-03 council :n«-°� 5-21-02 j acEnaa RepoRt 1�m��mm, s,2C CITY O F SAN L U I S O B I S P O FROM: Michael D. McCluskey, Public Works Director Prepared By: David Elliott, Administrative Analyst�� SUBJECT: TRANSIT FUND REVIEW FOR 2002-03 02 CAO RECOMMENDATIONS 1. Review and discuss the worksheet"Changes in Working Capital—Transit Fund" 2. Approve a CIP project request to move the Emission Reduction Equipment project from 2003-04 to 2002-03 (one time cost: $39,000) DISCUSSION Assumptions The attached worksheet, "Changes in Working Capital - Transit Fund", projects sources of revenue and uses of revenue for the transit fund over the five-year period from 2002-03 to 2006-07. Worksheet projections are based on the following assumptions: 1. State Transportation Development Act (TDA) grant apportionments will increase about three percent each year. 2. Federal Transit Administration (FTA) grant apportionments will stay at the level currently approved- $884,700 per year. 3. Transit fares will increase 33 percent in July 2003. 4. Annual contributions from Cal Poly will range from $240,100 in 2001-02 to $270,300 in 2006-07 based on provisions of the contract currently in place. 5. Capital project appropriations from fund balance (including non-discretionary grants) will include: • Capital Cost of Contracting @$50,000 each year • North Area Regional Facility-Transit @ $100,000 in 2002-03 • Emission Reduction Equipment @ $39,000 in 2002-03 • Vehicle Replacement- Buses @ $825,000 in 2004-05 The Emission Reduction Equipment project originally scheduled for 2003-04 has been moved up to 2002-03. A revised CIP project request is attached. Observations From the worksheet Public Works has concluded that current transit fares, anticipated FTA and TDA grant apportionments, and discretionary capital grants will cover all planned operating expenses and capital outlays from 2002-03 through 2006-07, including replacement of three buses. Nonetheless, there is one problem that must be addressed. TDA regulations Cte1 at Council Agenda Report—Transit Fund Review for 2002-03 Page 2 money collected from fares must cover at least 20 percent of operating costs. Projections show that, under current rates, fares will amount to only 17.5 percent of operating costs in 2002-03, and this ratio will continue to decline in future years. For this reason, Public Works is tentatively recommending that cash fares and bus pass prices be increased by 33 percent in July 2003. Documentation for this proposed rate increase will be presented with the next Transit Fund rate review in May 2003. ATTACHMENTS: 1. Changes in Working Capital–Transit Fund 2. CIP Project Request, Emission Reduction Equipment 1ACouncil Agenda ReportsMansit Fund Review 02-03 2C-2 ATTACHMENT I 000000 cOoo0 0 00 0 0 0 0 0000 00000 0 0 0 y �o N t`. N O r- r C� O O O t` In N N o0 R �O N t N c•1 �O 6 �6 � R %0 a 00 R kn r- 00 h M N R �� •� .M- 00 b 00 O M M R R 01 N i N N N N a o o o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z c d �o 00 r` kn o1.0 t o 00 vi o Wn o o LU N cp 7 00 N t` 7 � O � O O th Q C` 00 R - O - W) �o O O v'i. N N .O •O N 00 wl t- O M M M N N to v1 L N N N N N Or V O 0 0 0 0 0 0 O O 00 O O O O O O o O O O O O O O O O O (D O O o O O O to y �o v) r- R O N Ow O O O O O 00 N %O Or u N N 7 ri N kf M h (77 W R O O 00 R qlT k y y 7 00 r- O v) ON 7 [, N O O ^ ON v 1� CD O N 00 It �o ON N N N Wn 'IT R v 7 .,p N O 0 0 0 0 0 0 O (m O O O O O C O O O O Y o O O O O O O O O O O O O O O O N M V1 O W) M M M as N 00 M O M N R p •O N 00 V1 00 N N N N R L-. N N N N RS. C O O O O O O O O O O O O O O O O O O 00 O O O O O O O O O �D N r` R O 01 O aw ON O ON M. O. N [- N. T u'. N R O N O - 00 O� 0 o0 O t+1 w1 [� N N y, t` 00 r- M R t` -- 00 O O O1 N C •O, - 00 M '7 00 N ^ O N O O, N N Qw' O 0 0 0 0 0 0 O O O O O O O O O O O O O 0 0 0 0 0 0 O O O O O O O O O O N, �o - N �o - O �o R 00 N ON ^ R R cs - N N t` O v v T [� l� �. M O\ l- 00 O> \O 1, M Mr- (� 00 OQ 9 ^ N M M ^' ^ N o M M ^ ^ N �7, N R N N R v O 0 0 0 0 0 0 O O O O O 0 0 0 0 O O O O 0 0 0 0 0 0 O O O O O O O O n _ 00 O M N. vn v1 M 00 t% v7 ll N = M N Oi ^ (7, N 00 N M N O M vi N r` r, 00 to ON Wn �o N to t` R R 00 O u... r` M N. �O � M. N Q Z LTi F r Z Q F " 1 y w y d Q C � •� = v v7 L F > vi L Vii 6m1 a>> 0 0. 0 o = u c u > O �' Q a R L L O y L U y yOvcc aEi u e cd O C = 7 C7 y Z 0y = Y u CL R O a� d -0--a C � 7 p C w a 0.o c � Cj ayi ayi � 14 ° � p > w—,, Q •; m0 y d c 3 ° c Q t Q co °- � O [FU � F cFC7FF y c YFC is R z Z E y uo a a. a e m m w y >O ms' s m o o s a ya U U V � = n �n0 90 U jla° O [i � � ctm w o z 3 3 2C-3 2001-03 Financial Plan Supplement 2002-03 Bud t;L ATTACHMENT 2 CAPITAL IMPROVEMENT PLAN PROGRAM: Transit REQUEST TITLE: Emission Reduction Equipment Project Summary Purchasing and installing emission reduction equipment on all diesel transit buses to comply with California Air Resources Board(ARB)standards will cost$39,000 in 2002-03. Project Objectives i Comply with California Air Resource Board(CARB)emissions standards that take effect in October 2002 ■ Avoid sanctions from the CARB Existing Situation SLO Transit currently maintains a diesel fleet and has selected the"clean diesel fuel'option for complying with new California air quality standards. As a requirement of selecting the clean diesel fuel option, SLO Transit must install additional emission equipment to meet CARB emissions standards. This equipment consists mainly of dual filtering traps installed in the exhaust system to capture particulate matter. One interesting feature of this equipment is that it is self-cleaning. One trap collects particulate matter until it is full. Then the system switches to the other trap. While the second trap continues to collect particulates,the first trap chemically neutralizes its accumulated particulate matter. This project was originally proposed for 2003-04 but has been moved up to 2002-03. The reasons for this change are to demonstrate increased diligence in complying with emissions standards and to keep the clean diesel fuel option available as a path toward compliance, Goal and Policy Links ■ CARB regulations ■ Adopted Transit Program goal to reduce air pollution Project Work Completed None Environmental Review CEQA regulations allow a categorical exemption for retrofit of existing equipment under 14 CAC 15302. NEPA regulations allow a categorical exclusion for equipment purchase for vehicles under 23 CFR 771 (c)(17) 2C-4 ATTACHMENT 2 Emission Reduction.EquipmenL _ Page 2 of 2 Project.Phasing and Funding Sources Pro'ect Costs bv Tvpe _ Project Costs To-Date 2001-02 2002-03 r 2003-04 20047Total Equipment acquisition 39,000 39,000. Total - _ _. _ _ -- -39,Q00 -- -. _ - - _._ _39,000 Project Funding Source: State.Transportation Development Act(TDA)grant Department Coordinator and Project Support Department Coordinator: Austin O'Dell Alternatives None. Project Effect on the Operating Budget The Transit Manager is the primary resource for this project. After installation, minimal maintenance will be required and will be performed by the transit operations contractor.. 2C-5