HomeMy WebLinkAboutReso 1984-11715
RESOLUTION NO.
11715
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA SUPPORTING TRANSIT ORGANIZATIONAL STRUCTURE
STUDY POLICY COMMITTEE RECOMMENDATIONS AND LEGISLATION
TO IMPLEMENT COMMITTEE RECOMMENDATIONS
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the San Diego Association of Governments (SANDAG)
Transit Organizational Structure Policy Committee issued a final
report and recommendations on June 20, 1984, and
WHEREAS, the Committee's recommendations, and the proposed
legislation to implement the recommendations, were supported by
the Metropolitan Transit Development Board (MTDB) on June 21, 1984
and by the SANDAG Board on June 22, 1984, and
WHEREAS, the final report of the Committee, including a
summary of recommendations, and the legislation that has been
drafted to implement the Committee's recommendations is attached
hereto as Exhibit "A", and incorporated herein by reference as if
set forth in full, and
WHEREAS, the Committee requested that each jurisdiction
affected by this legislation review and comment on the recommen-
dations and proposed legislation prior to the State legislature's
session beginning in August, 1984, and
WHEREAS, staff has recommended that Council support the
recommendations of the Transit Organizational Structure Study
Policy Co~nittee and the proposed legislation to implement said
recommendations.
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula Vista does hereby support SANDAG's Transit
Organization Structure Policy Corrmdttee recommendations and
legiSlation to implement the Committee recommendations.
Presented by
Approved as to form by
I
Joh P. Lippitt,
Eng'neer
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atitu ~ c~.tl
Charles R. Gill, Assistant
City Attorney
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ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
26th July
day of
LA VISTA, CALIFORNIA, this
84
, by
the following vote, to-wit:
Cox, Moore, McCandliss, Scott
Councilmen
S:
ES:
:TAIN:
ENT:
Councilmen
None
Councilmen
None
Councilmen
Malcolm
rE OF CALIFORNIA )
NTY OF SAN DIEGO ) s s.
. OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
~EREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 11715
,and that the same has not been amended or repealed.
ED
(seal)
City Clerk
660
(
San Diego
ASSOCIATION OF
GOVER~MENTS
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Suite 524 Security Pacific Plaza
1200 Third Avenue
San Diego, California 92101
16191 236-5300
July 3, 1984
TO:
Transit Organizational Structure Study Policy Committee
Members 1111 J "
Craig Scott, SANDAG cJ'~ .
FROM:
SUBJECT:
Final Committee Report/Legislation
Enclosed is a copy of the Policy Committee's Final Report, as approved by the
Committee on June 20, 1984. The Committee's recommendations and the accom-
panying legislative package, with a few modifications, were supported by the MTD
Board on June 21, 1984 and by the SANDAG Board on June 22, 1984.
The proposed legislative changes have been incorporated into SB 1736 (Deddeh). A
copy of SB 1736 has also been enclosed for your review. As discussed at the last
Policy Committee meeting, each jurisdiction would have the opportunity to review
the Policy Committee's recommendation and the legislation during July and to
forward its position and/or comments prior to the legislature's return from recess
in early August.
We would like to take this opportunity to thank each member of the Policy Com-
mittee, as well as the Technical Committee, for all of the effort that has been put
into the study over the past year.
Please contact me if there are any questions regarding the Committee's
Report or the legislation.
Final
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Enclosures
cc: Technical Committee Members
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:R AGENCIES:" Cities of Carlsbad, Chula Vista, Coronado, Del Mar, Ef Cajon, Escondida, Imperial Beach, La Mesa, Lemon GrollE!, National Citv,"Oceanside,
n Diego, San Marcos, Santee and Vista ADVISORY/LIAISON MEMBERS: Calif. Dept. of Transportation/U.S. Dept. of Oefense and Tijuana/Baja Calif. Norte
EXHIBIT
A-
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TRANSIT ORGANIZATIONAL STRUCTURE STUDY
POUCY COMMITTEE
FINAL REPORT
AS APPROVED BY THE POUCY COMMITTEE
June ZO, 1984
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TRANSIT ORGANIZATION STRUCTURE STUDY
DRAFT POLICY COMMITTEE FINAL REPORT
Summary of Recommendations
1. Establish a Regional Transit Service Fund through an annual assessment from
each jurisdiction's TDA funds equal to the percentage of each jurisdiction's
FY84 TDA apportionment claimed for regional service or 5% of its annual
TDA apportionment, whichever is greater.
2. Revise the MTD Board structure to add the Cities of Coronado, Poway, and
Santee, provide for continuous representation for all jurisdictions, and insti-
tute a weighted voting procedure.
3. Proceed with the assumption of SDTC by MTDB, with the understanding that
SDTC is to be maintained as a separate corporation.
4. Provide an option for the new member jurisdictions of MTDB to have an
impound account established for a two-year period from their portion of the
MTDB "10%" allocation for use on special transit projects within the city.
5. Retain MTDB's option to contract out regional transit services. MTDB staff
and the Regional Transit Service Advisory Group should review current
regional service costs and available options and make a recommendation to
the MTD Board regarding the selection of the regional service provider(s).
6. Allow individual jurisdictions to contract with MTDB for the provision of
local services, in addition to the regional services (voluntary pooling).
7. Eliminate the "75%" provision which allows MTDB to claim a minimum of
75% of each jurisdiction's unused TDA funds each year.
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Overview
In February, 1983, the SANDAG Board of Directors appointed a Policy Comittee
to direct the Transit Organizational StructtU'e Study. This study was intended to
analyze several alternative organizational structures in order to determine the
most cost-effective structure for the provision of transit services in the South
County area.
The Policy Committee consisted of an elected official from each of the eleven
jurisdictions. in the South County area (outside of the North County Transit
District area) which would be affected by the outcome of the study. The Policy
Committee representatives are listed below:
Jurisdiction
Representative
City of Chula Vista
City of Coronado
City of El Cajon
City of Imperial Beach
City of La Mesa
City of Lemon Grove
City of National City
David Malcolm
Lois Ewen
John Reber
Brian Bilbray
Fred Nagel
Robert Burns, Chairman
Louis Camacho
Marion Cooper
Bob Emery
Ed Struiksma
Roy Woodward
Tom Hamilton
City of Poway
City of San Diego
City of Santee
County of San Diego
The Policy Committee provided policy direction and guidance for the consultant
engaged to perform the organizational analysis, Booz, Allen & Hamilton, Inc. In
addition, a Technical Committee was formed to provide technical input and coor-
dination for the study. The Technical Committee consisted of staff members
from each of the cities, the County of San Diego, SANDAG, MTDB, San Diego
Transit, the San Diego Chamber of Commerce, and the San Diego Taxpayer's
Association.
The Policy Committee began meeting in May of 1983 to work with the consultant
in defining the alternative organizational structures to be examined and the
evaluation criteria to be utilized. The Policy Committee continued to meet
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through January, 1984, working with the consultant in the evalution of the five
alternatives identified, as well as to review a proposal introduced in September,
1983, by Couilcilman Struiksma of the City of San Diego, which was essentially a
hybrid of two of the alternatives being evaluated by the consultant.
This phase of the study effort led to the development of the final consultant
report, South San Diego County Transit Organizational Structure Analysis Final
Report (February, 1984). This report summarizes the study effort up to that
point, including the evaluation of the alternatives, the analysis of cost impacts,
and the study conclusions and recommendations. The recommendations of the
consultant report, which are consistent with Councilman Struiksma's proposal and
which were supported by the Policy Committee and accepted by the SANDAG
Board of Directors included the following:
1. Agree upon a pooling program for regional service: In order to guarantee the
continuation and expansion of regional services, the consultant recommended
that a pool of funds for regional services be created. The consultant report
outlined a number of alternative assessment formulae and recommended that
the jurisdictions select a preferred formula which provides for the sharing of
the costs of regional services among the jurisdictions in an equitable
manner. The consultant also recommended that a Regional Transit Service
Advisory Group, consisting of representatives of each jurisdiction contri-
buting to the regional service fund, be established under the auspices of
MTDB to provide advice on regional service improvements.
2. Initiate steps to assume the San Diego Transit Corporation: The consultant
recommended that the legal and financial activities necessary for the
assumption of SDTC's assests by MTDB be initiated to determine the pro-
cedures to be used for transferring the assets and to review potential liabili-
ties and other impacts. It was also recommended that at the time of acqui-
sition SDTC be made a separate entity under MTDB, as is the San Diego
Trolley, Inc.
3. Adjust MTDB representation and responsibilities to reflect these changes:
With the assumption of SDTC and the expansion of MTDB's role in regional
transit service planning and operations, it was recommended that the MTD
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Board be expanded to include those jurisdictions which would be added to the
MTDB area (Coronado, Poway, and Santee) and that consideration be given to
revising the current rotating membership practice. It was also recommended
that consideration be given to retaining a separate Board for SDTC. In
relation to the potential conflict of interest that MTDB woud have in
approving SDTC's claims, the consultant recommended that MTDB and
SANDAG enter into parallel discussions regarding MTDB's revised responsi-
bilities and consider appropriate revisions to existing memoranda of under-
standing to be enacted in conjunction with the recommended organizational
structure changes. In some cases, selected code sections of state law would
need to be deleted or revised in order to bring state law into consistency with
current practice and federal law.
4. Consider other elements of Councilman Struiksma's proposal: Besides the
recommendations made as part of the consultant's study effort, Councilman
Struiksma's proposal included additional suggested organizational changes
which were not part of the study, but which the consultant felt were worthy
of further analysis. These included:
MTDB claiming all City of San Diego TDA funds for local as well as
regional transit services.
Voluntary pooling by other jurisdictions of additional TDA funds to
MTDB for the provision of local services through contracts with the new
"Metropolitan Transit System" or a private operator.
Elimination of the "75%" provision, which allows MTDB to claim a
minimum of 75% of each jurisdiction's unused TDA funds each year.
Granting of regulatory authority over jitney operators to MTDB
(through legislation).
Since the completion of the consultant's report, the Policy Committee has been
working to resolve the remaining issues related to the implementation of the
consultant's recommendations, as well as to resolve issues raised regarding
Councilman Struiksma's proposals. These issues rela ted to the following areas:
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o Regional transit service fund assessment formulae.
o Revised representation on the MTD Board.
o Review of the implications of the MTDB assumption of SDTC.
o Impacts of the MTDB "10%" funds on new MTDB area jurisdictions.
o Competitive bidding of the regional transit services.
The Policy Committee's recommendations in each of these areas are presented in
the following sections of this report.
5
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REGIONAL TRANSIT SERVICE FUND ASSESSMENT FORMULAE
A total of nine alternative formulae for assessing the jurisdictions for the costs of
regional transit services were examined during the course of the study. These
alternatives ranged from population-based assessments to passenger-based
assessments to flat percentage-based assessments. Several alternatives resulted
in significant increases in the assessments for a few of the jurisdictions and were
rejected on that basis. Other alternatives required substantial annual data
collection efforts to update the jurisdictional assessments.
-
The Policy Committee's desire was to select an equitable formula that was rela-
tively simple to apply and easy to understand, while allowing sufficient funds to
remain in each jurisdiction's TDA fund to continue current levels of local
service. A range of flat percentage assessments was discussed by the Policy
Committee, with the following recommendation:
RECOMMENDATION: A Regional Transit Service Fund should be established
through an annual assessment of a portion of each jurisdiction's TDA apportion-
ment equal to the percentage of each jurisdiction's fiscal year 1983-84 TDA
apportionment claimed for support of regional services or 5% of its annual
apportionment, whichever is greater. The percentage which would be assessed
annually from each jurisdiction is as follows:
Jurisdiction
FY84 Status Quo
With a Minimum
5% Assessment
City of Chula Vista
City of Coronado
City of El Cajon
City of Imperial Beach
City of La Mesa
City of Lemon Grove
City of National City
City of Poway
City of San Diego
City of Santee
County San Diego
6.1%
100.0%
16.9%
65.5%
36.5%
5.0%
5.0%
5.0%
38.5%
5.0%
5.0%
6
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This regional transit service assessment would be implemented through an agree-
ment to be signed by all jurisdictions, the key provisions of which would include
the following:
o The agreement of MTDB to provide a system of regional transit services for
the MTDB area, with the costs of these services to be paid from the Regional
Transit Service Fund established as described above.
o The understanding that any TDA funds remaining after the annual assessment
for regional service is made shall be available to the jurisdictions for support
of local services.
o An agreement that MTDB shall adhere substantially to the routes, frequency
of service, and hours of opera tion for the regional services as set forth in the
agreement. Periodic revisions to the l"egional route system may be made
upon review by the Regional Transit Sel"Vice Advisory Group, consisting of a
representative from each jurisdiction contributing TDA funds to the regional
transit sel"Vice fund. The Regional Transit Sel"Vice Advisory Group shall be
created by MTDB and shall meet on an as needed basis, but not less than once
a year to review the annual budget and TDA claim for regional transit
services.
o The agreement shall remain in effect from July 1, 1985 to June 30, 1988. At
least six months prior to the expiration date of the agreement, the Regional
Transit Service Advisory Group shall l"eview the assessment formula and
recommend appropriate changes to MTDB and the jurisdictions.
REVISED REPRESENT A nON ON THE METROPOUT AN
TRANSIT DEVELOPMENT BOARD
The Policy Committee reviewed a variety of options regarding expanded repre-
sentation on the MTDB Board. The general desire of the Policy Committee was to
provide permanent representation for each jurisdiction, including the new member
Cities of Coronado, Poway, and Santee, rather than the current rotating member-
ship on the MTD Board. The City of San Diego's desire to maintain its current
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four representatives was also recognized. A weighted vote procedure was also
supported to provide a mechanism for extraordinary situations.
RECOMMENDATION:
The following represents the recommended MTD Board
structure and weighted vote procedure:
Jurisdiction
One Member-One Vote
With 4 San Diego Members
Weighted Vote
San Diego
County
Chula Vista
EI Cajon
National City
La Mesa
Santee
Poway
Imperial Beach
Lemon Grove
Coronado
State of California
4
1
1
1
1
1
1
1
1
1
1
1
50
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7
7
5
4
4
3
2
2
2
1
15 Members
100 Votes
WEIGHTED VOTE PROCEDURE
1. Only after voting on any particular matter on the basis of one vote per
member, a weighted vote may be requested by a motion and a second by the
representatives of any two jurisdictions.
Z. Each of San Diego's four representatives shall exercise one-fourth of the total
City of San Diego's 50 weighted votes, or 1Z.5 votes each. Proxy votes shall
not be allowed.
3. Approval under the weighted vote procedure requires the vote of the repre-
sentatives of not less than three jurisdictions representing not less than fifty-
One (51) percent of the total weighted vote to supercede the original action of
the Board.
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4. The weighted vote procedure shall not be employed on any matter of purely
intra-city concern unless it is the desire of the affected city or jurisdiction.
5. The apportionment of the one hundred total weighted votes to each juris-
diction shall be recomputed annually based on the annual State Department of
Finance population estimates using the following apportionment formula,
provided that each member shall have at least one vote, no member juris-
diction shall have more than 50 votes, and there shall be no fractional votes:*
(al Determine each member jurisdiction's population. If the City of San
Diego has more than 50% of the total MTDB area population, allocate
50 votes to the City of San Diego, one vote to the State of California,
and distribute the remaining 49 votes according to (bl.
(b) Total the population of the remaining member agencies determined in
(a) and compute the percentage of this total that each member agency
comprises.
(1) Multiply each percentage derived above by 49 to determine frac-
tional shares.
(2) Boost fractions that are less than one to one; add the whole
numbers.
(3) U the result of step (2) is 49, drop all fractions and the whole
numbers are the votes for each member agency.
(4) U the result of step (2) is less than 49, the remammg vote(s) is
allocated one each to that member jurisdiction(s) having the
highest fraction(s) excepting those whose vote was increased to
one (l) in step (2) above.
*Modeled after SANDAG weighted vote procedures.
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(5) If the result of step (Z) is more than 49, the excess vote(s) is taken
one each from the member jurisdiction(s) with the lowest frac-
tion(s). In no case may a vote be reduced to less than one.
REVIEW OF THE IMPLICATIONS OF
THE MTDB ASSUMPTION OF SDTC
The assumption of SDTC by MTDB was recommended in both the consultant study
and Councilman Struiksma's proposal. The concept is to transfer .ownership" of
the San Diego Transit Corporation from the City of San Diego to MTDB. SDTC
would be maintained as a separate corporation under MTDB, as is the San Diego
Trolley, Inc., and a separate Board of Directors for the corporation would be
maintained to handle day-to-day operational concerns. MTDB would be in the
position of selecting and electing the Board of Directors for operation of SDTC.
The relationships between MTDB and the SDTC Board of Directors would be
established through an operating agreement similar to the agreement which
currently exists between SDTC and the City of San Diego. The capital assets
utilized by SDTC are currently owned by the City of San Diego and would be
transferred to MTDB, with the concurrence of the Urban Mass Transportation
Administration (UMT A).
During the Policy Committee discussions regarding the MTDB assumption of
SDTC, a number of concerns were expressed regarding the potential impacts of
SDTC's labor agreements and pension liabilities on MTDB and its member juris-
dictions. The City of San Diego Assistant City Attorney, with the cooperation of
the general counsels from SDTC, MTDB, and SANDAG, prepared a memorandum
regarding the acquisition of SDTC by MTDB addressing many of these issues.
Regarding the labor agreement issue, it was pointed out that the current labor
agreements are between SDTC and the labor unions directly with no involvement
of the City of San Diego. It was the opinion of the attorneys that, as long as
SDTC was maintained as a separate corporation and the labor agreements were
maintained with that corporation, the transfer of assets and responsibilities as
proposed "would have no foreseeable effect on the other cities within the MTDB
area, the County or MTDB Or any of their respective transportation functions."
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With respect to the pension liability issue, SDTC's most recent annual fiscal audit
report indicated that SDTC has established an actuarially computed annual
pension fund ~contribution which provides for a fully funded pension plan as re-
quired by state law, with the net assets available for the pension plan benefits
exceeding the present value of the accumulated costs of those pension plan bene-
fits.
RECOMMENDATION: MTDB should assume the San Diego Transit Corporation,
with the understanding that SDTC would be maintained as a separate corporation
under MTDB and that all labor agreements and pension liabilities would remain
with SDTC. MTDB should commit to try to reduce SDTC's operating costs and to
provide service to the area in the most efficient and effective manner.
IMPACTS OF THE MTDB "10%" FUNDS ON NEW
MTDB AREA JURISDICTIONS
Both the consultant's recommendations and Councilman Struiksma's proposal
include the expansion of the MTDB area of jurisdiction to include the Cities of
Coronado, Poway, and Santee and a greater portion of the unincorporated area.
This expansion is provided for in MTDB's existing legislation if MTDB assumes
SDTC.
During the course of the study, the issue was raised that, once these areas become
part of the MTDB area, the TDA apportionment for these areas is reduced due to
the provisions of Section 99233.5(a) and (b)(l). These provisions require 1% of
MTDB-area TDA funds to be allocated to SANDAG for transportation planning and
10% to be allocated to MTDB for its administrative and planning activities and its
construction and acquisition programs.
The Policy Committee reviewed several options for revising the "10%" provision
to reduce the inital impact on the new member jurisdictions. A concept that was
supported by the Policy Committee involved the creation of an optional impound
account for the three new member cities. The amount of funds to be placed in the
impound account would be based on each city's portion of the overall MTDB "10%"
allocation and would be reserved for special transit projects within that city. This
impound account option would be available for a two-year period, with a reserve
beyond two years available for long-term capital projects.
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RECOMMENDATION: No change to the 10% provision is recommended; however,
if so desired by one of the new MTDB area cities, an impound account lor special
transit projects within that city would be established for a two"'"Year period.
COMPETITIVE BIDDING OF THE
REGIONAL TRANSIT SERVICES
Another issue raised during the Policy Committee discussions related to whether
MTDB should utilize San Diego Transit to operate the regional services or enter
into a competitve bidding process to select the operator of the regional services.
This issue was examined as part of the consultant's report. Based on an analysis of
current private operator costs and San Diego Transit's marginal costs of providing
regional services, the consultant concluded that, at least in the short term, the
operation of regional services by a private operator rather than San Diego Transit
could result in an increase in operating costs overall coupled with a possible
degradation in the quality of service.
San Diego Transit currently operates all of the regional routes, with the exception
of Route 901 operated by Strand Express Agency. If San Diego Transit were to no
longer operate the regional routes, its fixed costs would have to be spread over
the remaining local services, increasing the cost per mile for the local services
San Diego Transit provides to the City of San Diego and several other jurisdictions
by nearly 30%. The consultant also pointed out that quality of service consider-
ations were not factored into their cost analysis. SDTC's generally newer
vehicles, radio communication equipment, and road supervisor support should be
taken into consideration. In addition, few private operators have the 85 vehicles
and supporting maintenance facilities necessary to operate the regional services.
Additional capital costs, estimated by the consultant at roughly $2 million per
year, would have to be included in the cost analysis should a private operator
provide all regional services.
The consultant and others have pointed out that a more likely approach would be
to shift the regional services to a contract operator gradually based on the attri-
tion rate of SDTC employees in order to minimize unemployment compensation
costs. This could result in the regional routes being put out to bid one or two at a
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time. The impact on the overall quality of service by having numerous con-
tractors involved in the operation of the regional network of services would have
to be considered.
This issue is certainly a complex one involving a wide range of factors. The MTD
Boud would ultimately be responsible for assessing the overall cost impacts to the
uea for both regional and local services, and weighing the vuious cost impacts
against quality of service considerations in making the decision regarding whether
the regional services should be provided by San Diego Transit or a contract
operator.
RECOMMENDATION: MTDB should retain the option to contract out the re-
gional services. MTDB staff and the Regional Transit Service Advisory Group
should review the consultant's cost analysis and evaluate SDTC's costs for
operating the regional routes, as well as the Strand Express Agency's costs for
Route 901, and make a recommendation to the MTD Board reguding the approach
to be used in selecting the regional service provider(s).
Other Recommendations
The Policy Committee was supportive of the additional recommendations in
Councilman Struiksma's proposal relating to the voluntary pooling by local juris-
dictions of additional TDA funds to MTDB for operation of local services, and the
elimination of the MTDB "75%" provision. An additional proposal by Councilman
Struiksma reguding the granting of regulatory authority over jitney operations to
MTDB was not discussed by the Policy Committee.
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