CITY
OF SIMI VALLEY
MEMORANDUM
Novem
ber 18, 2024
TO: City Council
FRO
M: Department of Public Works
SUBJE
CT: APPROVE AMENDMENT TO THE SIMI VALLEY TRANSIT PROGRAM OF PROJECTS FOR FISCAL YEAR 2024 -25 AND A RELATED
SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT FUND THAT
INCLUDES ESTABLISHING FOUR NEW CAPITAL PROJECT S, AND A
RELATED SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT
FUND (FUND 750) AND LOCAL TRANSPORTATION FUND (FUND 238)
STAFF RECOMMENDATION
It i
s recommended that the City Council:
1. Approve amendment to the Simi Valley Transit Program of Pr ojects (POP) for Fiscal Year 2 024-25 (FY 25) and a related Supplemental Budget Request for the Transit Fund (Fund 750) for $335,989, that includes establishing four new capital projects;
2. Approve a Supplemental Budget Request for the required local match of $83,997 from the Local Transportation Fund (Fund 238) and approve an interfund transfer of $83,997 from Fund 238 to Fund 750; and,
3. Authorize the City Manager or her designee to execute all necessary documents related to the project amendments, budget allocation, and transfers.
BACKGROUND AND OVERVIEW
On June 3, 2024, the City Council approved the FY 25 Simi Valley Transit Budget and proposed Simi Valley Transit POP (Attachment A, page 4). The POP will be forwarded to the Ventura County Transportation Commission (VCTC) for final approval and included in the City’s Federal Transit Administration (FTA) 49 U.S.C grant applications, which include Section 5307, Section 5339, CMAQ, Job Access Reverse Commute (JARC), and other grant funds.
F
INDINGS AND ALTERNATIVES
The City Council reviews and approves the POP funding as part of the City’s Annual Budget. Pursuant to 49 U.S.C. 5307 (“ Section 5307 Funds”), FTA apportions Urbanized Area Formula Program funds to urbanized areas for public transportation, capital projects, TRAN2458.SR.MG
AGENDA ITEM NO.
Consent (6)
operat
ing assistance, job access , reverse commute projects , and transportation-related planning. The estimated Simi Valley Urbanized Area 5307 funding for the Federal Fiscal Year (FFY) 2025 is $3,648,972. VCTC’s planning and programming costs are $574,683 leaving the remaining balance of $3,074,289. Staff recommends allocating the remaining balance for ADA paratransit ($364,897) and fixed-route bus operations ($2,709,392). The funds needed to meet the local match requirement for ADA paratransit (25% match = $91,224) and fixed- route bus operations (100% match = $2,709,392) was previously approved and those funds are currently available.
In a
ddition, FTA awards grants under Section 5339 to finance capital equipment such as bus and bus -related projects to support the continuation and expansion of public transportation services. Simi Valley Transit is estimated to receive $335,989 in FTA grant funds for FFY 2025 and proposes to utilize those funds on the New Capital Projects listed in the table below . There is a local match requirement in order to utilize Section 5339 funds, therefore staff is requesting an interfund transfer of $83,997 from Fund 238 to Fund 750.
The f
ollowing chart summarizes the amended 2024-25 POP budget:
Federal Grant Local Match
Planning Assistance
Planning Assistance and Programming
(Sec. 5307)
$574,683
Operating Assistance
Simi Valley Transit (Sec. 5307) $2,709,392 $2,709,392
Capital Assistance
ADA Paratransit (Sec. 5307) $364,897 $91,224
Subtotal (Sec. 5307) $3,648,972 $2,800,616
New Capital Projects (Sec. 5339)
HVAC Replacement for TMF Server Room $40,000 $10,000
Bus Engine/Transmission Rebuilds $160,000 $40,000
Farebox Replacements $103,989 $25,997
Driver Breakroom $32,000 $8,000
Subtotal (Sec.5339) $335,989 $83,997
Total Grant Funds $3,984,961 $2,884,613
The following alternatives are available to the City Council:
1. Approve amendment to the Simi Valley Trans it P OP for FY 25 and r elated Supplemental Budget Request in the Transit Fund (Fund 750) for $335,989, that TRAN2458.SR.MG
2 TRAN2458.SR.MG
includes establishing four new capital projects to track each capital project expenditures;
2. Appr
ove a Supplemental Budget Request for the required local match of $83,997 from the Local Transportation Fund 238 and approve an interfund transfer of $83,997 from Fund 238 to Fund 750;
3. Pr
ovide staff with other direction.
Staff recommends Alternative No. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to approve the amendment to the Simi Valley Transit Program of Projects for FY25; a Supplemental Budget Request to Transit Fund 750 for $ 335,989 that includes establishing four new capital projects; a Supplemental Budget Request of $83,997 to Fund 238; and an interfund transfer of $83,997 from Fund 238 to Fund 750.
SUMMARY
On June 3, 2024, the City Council appr oved the FY 25 Simi V alley Transit Budget and proposed POP. It is recommended that the City Council appr ove the amended POP for submission to VCTC, approve a related Supplem ental Budget Request of $335,989, including establishing four new capital projects to efficiently track each capital project expenditure, and approve a Supplemental Budget of $83,997 in the Local Transportation Fund 238 with an interfund transfer of $83,997 from Fund 238 to Fund 750 to meet the local match requirement.
______
_______________________________
Ronald K. Fuchiwaki
Public Works Director
Pr
epared by: Tan Koehler, Senior Management Analyst
INDEX Page
Atta
chment A (Excerpt from FY2024-25 Budget Staff Report) .......... …………4 3 Communitv Development Aqencv (CDA)
The process of dissolving the former Community Development Agency (CDA) is ongoing.
SuccessorAgency (formerCommunity DevelopmentAgency) expenditures are limited by State law to recognized obligations in place prior to July 1 ,2011. Staff members continue to process prior obligations and debt service under the Recognized Obligation Payment Schedule (ROPS) agreement with the State of California Department of Finance. The primary fund expense is the annual debt service and related costs for the former Agency's 2003 TaxAllocation Bonds, which is $2.1 Million in FY 2024-25.
Staff in the Department of Environmental Services handle Housing Successor Agency functions. At the time of dissolution in 2012, the Community Development Agency's Housing Administration Fund was responsible for over $9.1 Million in recognized obligations to provide developer loans to create affordable rental or ownership housing units. The Housing SuccessorAgency Fund (Fund 201) is projected to have a $3.6 million fund balance at the beginning of FY 2024-25 as a result of principal and interest received over the years from prior repaid loans, and these funds will continue to be utilized to encourage the creation of affordable housing in SimiValley.
Transit Fund
The FY 2024-25 Transit budget includes farebox revenues and state and federal grant funds and allocations. Transit farebox revenue budget is $326,650, slightly higher than the FY 2023-24 budget of $324,200. Grant funds and allocations are budgeted at $9.2M, $348K more than the prior year's budget, to cover increased operating expenses such as the payroll. ln addition, the Transit budget includes $8.5M in funding for Capital Projects, significantly higher than the prior year's $2.6M as a result of Transit and lntercity Rail Capital Project (TIRCP) funding received this year to construct a new transit center and purchase of six electric vehicles.
Fixed-route and ADA/DAR service ridership declined dramatically during the 2020 pandemic. Although passenger ridership for fixed-route services improved by 49.8% for FY 2023-24 compared to FY 2020-21, it still has not fully recovered from its pre- pandemic numbers. Furthermore, Dial-A-Ride (DAR) services increased by 139.1o/o from FY2020-21 and have surpassed their pre-pandemic figures by 19.9o/o. ln an effort to continue increasing fixed-route ridership, staff is collaborating with Simi Valley Unified School District to help promote the Youth Ride Free Program.
Additionally, the Department strives to introduce Microtransit services, which will help meet the needs of our ADfuDAR clients and other members of the general public who require transit services in particular parts of the city. lnstead of depending on fixed-route services or booking in advance for ADA/DAR services, Microtransit aims to give users an on-demand service option. The Department intends to launch this service in FY 2024-25 once the new electric mini vans arrive from production.
The other objectives and achievements fulfilled by transit are increased productivity and efficiency of Dial-A-Ride services, as well as the purchase of two (2) CNG fixed-route buses and eight (8) CNG Dial-A-Ride vans. Furthermore, the Department received a $7,053,000 competitive State grant for the Civic Center Transit hub.
ATTACHMENT A
4 Transit Proposed Program of Projects (POP) for FY 2024-25 On December 19, 1988, the City Council established a policy to annually review the Simi Valley Transit proposed fiscal year budget as part of the City Council's consideration of the Transit Program of Projects. The Transit Program of Projects (POP) provides the foundation for the City's grant applications for federal funds, which offset the cost of operating the Simi Valley Transit System and capital projects.
Under Title 49 U.S.C. Chapter 53, the City of Simi Valley's Transit Division is eligible to apply for FTA grant funding under Section 5307 to assist with its FY 2024-25 operating and capital expenditures. Following City Council approval, Simi Valley Transit's approved POP will be forwarded to the Ventura County Transportation Commission (VCTC), the City's current designated recipient of FTA funds, who will conduct a public hearing for final approval and inclusion in the City's FTA Section 5307.
The proposed POP allocates Simi Valley Transit's FTA 5307 grant of $3,648,972, as indicated below. The POP also identifies $539,760 in 5307 grant funds, which will go directly to VCTC for countywide planning assistance funds.
Planning Assistance
Countywide Planning
Operating Assistance
Simi Valley Transit
Capital Assistance
Preventive Maintenance
Non-Fixed Route ADA Paratransit
Federal Grant
539,760
2,594,315
150,000
364,897
$3 ,699,623
Local Match
2,594,315
37,500
91,224
$2 ,888,411
After City Council consideration, any adjustments to the POP will be made as appropriate.
A resolution authorizing the City Manager to execute and submit the filing of an application with the U.S. Department of Transportation, FTA, for operating, capital, planning, and preventive maintenance assistance funds under Title 49 U.S.C. Section 5307 is required and is included on page 16.
Sanitation Fund
The Sanitation financial system is comprised of an Operating Fund, a Replacement Reserve Fund, and a Plant Expansion Fund. The Operating Fund finances the day-to day cost of operating the sanitation system. The Replacement Reserve Fund is used to finance the replacement of equipment and infrastructure used to collect and treat wastewater. Both funds are financed from user fees (service charges). The Plant Expansion Fund is financed from developer fees, and the revenue generated can only be used to expand the capacity of the sanitation system to serve new development adequately. Prior to FY 2022-23, the Operating Fund and Replacement Reserve fund 5