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HomeMy WebLinkAbout2012/11/20 Item 13CfTY COUNCIL AGENDA STATEMENT ~~ CITY OF ~-.- CHULA VISTA. 11/20/12, Item I.3 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OP CHULA VISTA AMENDING THE FISCAL YEAR 2012/2013 TRANSIT REPLACEMENT FUND BUDGET BY APPROPRIATING $256,652 TO THE. OTHER EXPENDITURE CATEGORY SUBMITTED BY: DIRECTOR OF PUBLIC WORKS REVIEWED BY: CITY MANAGER S ~ ~ TS ASSISTANT CITY MANAGER ST 4/STHS VOTE: YES ~ NO Q SUMMARY The City's CNG fueling station (Station) has been in operation since the middle of 2002. The Station was built subsequent to the direction of Council in 1998 to convert the Chula Vista Transit (CVT) fleet to 100% CNG fuel. This goal of having a 100% CNG Ieet was reached in November 2009. City Transit staff has been responsible for the operation of the Station, but also for administering its financial support. The San Diego Metropolitan Transit System (MTS) provides all the funding for the operation of the Station as part of their support for the City's transit system. As part of the cost of operating the Station, Transit Staff decided to cover the cost of wear and tear on the Station equipment by adding an equipment replacement charge of approximately $0.06 to the per therm cost of the natural gas caupressed at the Station. This charge was ftilly disclosed to MTS staff during the annual budget review process. Since inception the equipment replacement amotuit has acctm~ulated to $256,652.23. MTS staff has reviewed this practice and decided that operating funds should not be used for equipment replacement; consequently, MTS has requested the return of the funds. MTS does have Federal Transportation Administration 5307 capita] funds available to support the replacement of the equipment via their Capital hnprovement Program that could be use to replace the equipment. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliauce with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project' as defined under Section 15378 of the State CEQA Guidelines because the proposed action involves continuing administrativehnaintenance activities by the City of Chula Vista. Therefore, prusuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 13-1 11/20/12, Item 1~ Page 2 of 2 RECOMMENDATION Cow~cil adopt the resolution. Returning the Transit Equipment Replacement funds to MTS will allow for Chula Vista Transit to participate in MTS' Federal Transportation Administration X307 capital program to support airy future equipment purchases. BOARDS/COMMISSION RECOMMENDATION Not applicable DISCUSSION On July 1, 2001, the City started to participate in the consolidation of the Transit Development Act. Article 4.0 funds in the MTS region. Since then MTS has funded the Citys transit operations a~~d administration. Transit staff has focused on maintaining an open working relationship with MTS staff and on overseeing the interest of the City. As mentioned in the summary, Transit staff made sure that adequate funds were available to replace worn-out equipment. In particular were the natural gas compressors. The mechanism used to fund the equipment replacement account was the annual MTS transit operations allocation received by the City. Part of this allocation is used to reimburse the City for the natural gas consumed by the transit buses. In order to make sure the City was made whole; all costs associated with the natural gas were accounted for i.e. commodity (natural gas), electricity (compression), maintenance and repair, and capital replacement. The capital replacement amount was put in Transit Capital reserve for the future replacement of the natural gas compressors. MTS staff has now decided that it would be more effective and efficient to use MTS dedicated capital replacement funds instead of operating ftxnds. Returning the funds will not have any negative impact on our City transit operations. Additionally, the City will be able to participate in MTS' annual capital replacement program when the time comes to replace the compressors. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT YEAR FISCAL IMPACT CVT operations and capital programming contains no General Fund contribution. The CVT operating and maintenance contract costs will be funded 100% by MTS, TDA Article 4.0 fiords. ONGOING FISCAL IMPACT No General Fund contribution. Funds being returned are TDA Article 4.0 funds and were 100% contributed by MTS. ATTACHMENTS None. Prepared by_ Artdp Trujillo - Transit Mannger. Deporlmer~l of Public N'orAs, Tran.ril Dlvlsion H.~PUBLIC WORKS- LNG~,4GENDAACAS201?V I-20-1264eenda Statement - City-MTS Capital Funds ReimbmsementREV3 doc 13-2 RESOLUTION 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2012/2013 EQUIPMENT REPLACEMENT FUND BUDGET BY APPROPRIATING $256,652 TO THE OTHER EXPENDITURE CATEGORY WHEREAS, on July 1, 2001 the City started to participate in the consolidation of the Transit Development Act, Article 4.0 funds in the San Diego Metropolitan Transit System (MTS) and, since that time, region MTS has funded the City's transit operations and administration; and WHEREAS, as part of the cost of operating the City's Compressed Natural Gas fueling station (Station), Transit Staff decided to cover the cost of wear and tear on the Station equipment by adding an equipment replacement charge of approximately $0.06 to the per therm cost of the natural gas compressed at the Station; and WHEREAS, this charge was fully disclosed to MTS staff during the annual budget review process and the equipment replacement amount has accumulated to $256,652.23; and WHEREAS, the capital replacement amount was put in reserve for the future replacement of the natural gas compressors; and WHEREAS, MTS staff has now decided that it would be more effective and efficient to use dedicated capital replacement funds instead of operating funds; and WHEREAS, returning the funds will not have any negative impact on City transit operations, and the City will be able to participate in MTS' annual capital replacement program when the time comes to replace the compressors. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the Fiscal Yeai 2012/2013 Transit Equipment Replacement Fund budget by appropriating $256,652 to the Other Expenditure category. Presented by Approved as to form by Richazd A. Hopkins Director of Public Works \~ 1 ~~ F,len oog' s ~ity .~tomey 13-3