DATE:
November 7, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Lawrence Chiu, Finance Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Approving The Emeryville Transportation Management Association (ETMA) 2024 Budget And Setting Compensation To The ETMA To Operate The Emery Go-Round Shuttle Service During The 2024 Calendar Year Under The Terms Of The Service Agreement For An Amount Not To Exceed Four Million, Five Hundred And Five Thousand, And Two Dollars ($4,505,002); And Authorizing An Additional Six Hundred And Nine Thousand, Two Hundred Seventy-Three Dollars ($609,273) From The Emeryville Property Based Business Improvement District (PBID) Fund 805 To Cover Additional General Benefit Contribution Recommendation
Staff recommends that the City Council of the City of Emeryville adopt the above-entitled resolution approving the ETMA 2024 budget, setting the compensation amount and authorizing payment to the ETMA for the operation of the Emery Go-Round shuttle service for service year 2024, for an amount not to exceed $4,505,002 and authorizing an additional $609,273 payment for the City’s General Benefit contribution.
Background
On December 6, 2016, the City Council adopted Resolution No. 16-170, which authorized the City Manager to enter into a Shuttle Bus Funding Agreement with the ETMA to administer and operate the Emery Go-Round through December 31, 2030, with each year’s compensation to be set by Council resolution. According to PBID law, the City is obligated to contract with ETMA as the agency representing the property owners that pay into the PBID for PBID-related services.
Discussion
At its meeting on October 24, 2023, the ETMA Board approved a total budget of $5,632,791 for calendar year 2024 of which $4,957,470 is related to the Emery Go-Round shuttle. Staff is recommending that the City Council approve the ETMA 2024 Budget and authorize payment of $4,505,002 from PBID assessments for the ETMA to operate the Emery Go-Round for calendar year 2024. This represents the projected total Fiscal Year (FY) 2024 PBID levy assessment, net of PBID related administrative costs. In addition, the ETMA is projected to receive approximately $1,755,324 in non-PBID revenues for a total of $6,260,326 in projected available revenue for service year 2024.
Non-PBID revenues include the following:
$609,273 City of Emeryville - General Benefit Contribution $115,360 Developer fees directly billed by the ETMA
$143,615 8 to Go Revenue
$339,594 West Berkeley Shuttle Revenue
$332,144 Emery Express revenue
$215,338 Interest income
$1,755,324 Total Non-PBID Revenues
The ETMA’s proposed 2024 expenditure budget of $5,632,791 will result in a surplus of $627,535 which is proposed to be allocated to replenish the ETMA’s cash reserve.
Fiscal Impact
The Emery Go-Round shuttle is funded primarily by the city-wide PBID that was supported by a majority of residential and commercial property owners in Emeryville by an election held on August 4, 2015. PBID funds can only be used to operate the Emery Go-Round shuttle and related alternative transportation services/programs and to cover the PBID’s administrative expenses, including both County and City administrative fees. Staff projects that the combination of PBID and non-PBID revenues will cover the ETMA’s proposed budget for calendar year 2024.
The City’s FY 2024 budget includes $642,757 for the City’s General Benefit contribution, which is $33,484 more than the $609,273 proposed by the ETMA. The City’s budget will be adjusted at mid-year to account for the difference.
Staff Communication with the Public
Staff communicated with ETMA staff regarding this item.
PREPARED BY: Lawrence Chiu, Finance Director
Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Draft Resolution
Exhibit A - ETMA 2024 Budget
ETMA Annual Compensation 2024
City Council Meeting | November 7, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM