Transportation Development Act (TDA) Claim Filing & Administration Guidelines

Transcription

1 Transportation Development Act (TDA) Claim Filing & Administration Guidelines August 2013

2 TABLE OF CONTENTS INTRODUCTION... 3 COMMONLY ASKED QUESTIONS ABOUT TDA... 4 I. ESTIMATING AND APPORTIONING TDA FUNDS ANNUAL ESTIMATES OF TDA FUNDS APPORTIONING LTF FUNDS APPORTIONING STA FUNDS FORMAL APPROVAL REVISING TDA APPORTIONMENTS... 7 II. FILE A CLAIM FOR FUNDS TO SLOCOG SUBMIT QUARTERLY TRANSIT DATA DUE 45 DAYS AFTER QUARTER END SUBMIT STATE CONTROLLER REPORT (ARTICLE 5.5, SECTION 6665) DUE SEPT SUBMIT FISCAL/COMPLIANCE AUDIT TO SLOCOG (ARTICLE 5.5, SECTION 6664)-DUE DEC REPORT STATUS OF FOLLOW UP ACTIONS TO AUDIT RECOMMENDATIONS (DUE EARLY MAY) III. SCHEDULE FOR TDA CLAIMANTS FILING A CLAIM IV. TRANSIT SYSTEM FAREBOX RECOVERY RATIOS DEFINITIONS Operating Cost (PUC a) Fare Revenues (Article 2, Section ) Local Support (Article 2, Section CCR ) Serving Urbanized Areas (PUC 99217) Serving a Non-Urbanized Area (Article 2, Section ) CALCULATING FAREBOX RECOVERY RATIO DETERMINING MINIMUM REQUIRED FAREBOX RECOVERY RATIO NON -COMPLIANCE WITH MINIMUM FAREBOX RECOVERY RATIO V. OTHER SLOCOG RESPONSIBILITIES TRANSIT NEEDS ASSESSMENT AND UNMET TRANSIT NEEDS PREPARING AND DISTRIBUTING FUND ALLOCATION INSTRUCTIONS KEEPING RECORDS RESERVING LTF OR WITHHOLDING STA FUNDS Reserving LTF Funds Withholding STA Funds PERFORMING TRIENNIAL PERFORMANCE AUDITS SUBMITTING ANNUAL FISCAL AUDITS OF ALL CLAIMANTS APPENDIX A CLAIM FORM EXHIBIT A LTF, STA AND RTF ALLOCATIONS EXHIBIT B CONDITIONS FOR APPROVAL EXHIBIT C QUARTERLY REPORTING DATA EXHIBIT D SLOCOG STAFF REPORT D-5 EXPANDED RIDE-ON TRANSPORTATION PERFORMANCE MONITORING 31 APPENDIX B USES OF LTF FUNDS APPENDIX C CLAIM APPROVAL LETTER APPENDIX D QUALIFYING AND NON-QUALIFYING SOURCES OF REVENUES APPENDIX E LOCAL CONTACTS APPENDIX F SAMPLE OF FISCAL AUDITORS

3 INTRODUCTION This is an update to the July 2012 Transportation Development Act (TDA) guidelines prepared by the San Luis Obispo Council of Governments (SLOCOG). There are no major changes to the guidelines for the regional apportionment and filing of TDA claims by local recipients. The guidelines address the following: a) How the region annually apportions funds among eligible recipients and conditionally approves the fund estimates at the start of each fiscal year b) What are the different categories of TDA funds and their allowable uses c) How to prepare a TDA claim and ensure all reporting requirements are met d) What are eligibility and/or update requirements for claims approval by SLOCOG e) What is the minimum farebox recovery ratio applicable to each transit operator f) How to compute farebox recovery ratios (transit claimants-only) and assess compliance with the minimum required ratio(s) g) What are SLOCOG s responsibilities in administering the TDA program and how those impact the TDA claim review, approval and schedule 3

4 Commonly Asked Questions About TDA WHAT IS THE TRANSPORTATION DEVELOPMENT ACT (TDA)? The Transportation Development Act (TDA) was enacted by the State Legislature in 1971 to make funds available for transit, pedestrian way and bikeway projects, transportation planning, ridesharing and street and road improvements. Funds for the TDA come from 1/4 cent of the retail sales tax (for LTF), and from sales taxes on diesel fuel (for STA). These funds are allocated annually by the San Luis Obispo Council of Governments (SLOCOG) to eligible claimants under two funding programs: the Local Transportation Fund (LTF) and the State Transit Assistance (STA). The TDA program is governed by the rules and statutes contained in the Public Utilities Code (PUC), the California Code of Regulations (CCR), and by non-tda statutes contained in the California Vehicle Code (CVC). Specific sections of the PUC, the CCR and the CVC are cited as needed in the guidelines. WHAT ARE THE DIFFERENCES BETWEEN THE LTF AND STA PROGRAMS? LTF monies are available for pedestrian and bicycle facilities, for public transit, administration and planning, street and road improvements, and other transportation projects. These funds are apportioned among the municipalities within San Luis Obispo County on a population basis after making off-the-top contributions for regional planning and administration, ridesharing, and specialized transportation programs that benefit all the municipalities and communities in the region. STA funds are distributed to public transit operators and other eligible recipients for the sole purpose of planning, administering, operating, and providing capital needs in support of public transportation service delivery. Such funds cannot be used for pedestrian, bikeway or streets and roads projects. WHO ARE THE ELIGIBLE RECIPIENTS OF TDA FUNDS? Eligible claimants are the County, the Cities within the County, the San Luis Obispo Regional Transit Authority (RTA), the South County Transit (SCT), and SLOCOG. Eligible claimants also include providers of specialized transit services as approved by SLOCOG such as Ride-On Transportation, the designated Consolidated Transportation Services Agency (CTSA) for the region. WHICH ARTICLE(S) DO I CLAIM FOR TRANSIT FUNDING? ARTICLE 3 (PUC 99245): Fiscal audit of public transportation activities (all ARTICLE 4 recipients) ARTICLE 4 (PUC 99260): General public transportation systems - Operations, Capital, Planning and Administration (local and regional transit programs-namely the Cities of San Luis Obispo, Atascadero, Morro Bay and Paso Robles), the County-funded general public services (Cambria and Avila trolleys, Nipomo DAR, Shandon DAR), the South County Transit and the Regional Transit Authority ARTICLE 4.5 (PUC 99275): Specialized transportation services - Operations, Capital, Planning and Administration (such as Ride-On Transportation) 4

5 ARTICLE 6.5 (PUC & 99314): STA Funding revenue based and discretionary ARTICLE 8 (PUC 99400): Contract services for special users - Operations and Capital - namely subsidized senior vans (Cambria and Cayucos) administered by RTA on behalf of the County. HOW ARE TDA FUNDS RECEIVED? The funds are distributed in small payments annually to the County by the State, and are held in trust in the County Treasury until being disbursed to recipients. The County Auditor makes payments from the funds based on instructions received from SLOCOG. Claimants receive payments quarterly or as funds become available. It is SLOCOG's responsibility to ensure that payments are made and funds used are in compliance with the TDA statutes. Both the LTF and STA funds have stringent performance and fiscal audit requirements for approved expenditures. In summary, the process of receiving TDA funds involves: File a claim Include the California Highway Patrol (CHP) Certification (Safety Compliance/Terminal Record Update) with the claim Provide quarterly transit data (within 45 days following the end of each quarter) by mode Submit a copy of the State Controller s Report (including a PDF version) at the same time as submitted to the State Submit one copy of the fiscal audit (and a PDF version) 5

6 I. ESTIMATING AND APPORTIONING TDA FUNDS 1. ANNUAL ESTIMATES OF TDA FUNDS STA Funds. In January, SLOCOG receives an estimate from the State Controller of STA monies to be made available for apportionment and allocation in the next fiscal year. This fund is allocated under PUC Sections and The total STA apportioned each year is based on the amount estimated to be approved in the annual state budget; it was approximately $1.6 million in 2012/13. If an estimate is not available, the most recent estimate for the current fiscal year is used. LTF Funds. In February, the County Auditor furnishes the San Luis Obispo Council of Governments (SLOCOG) with an estimate of LTF monies to be made available for apportionment and allocation in the next fiscal year in compliance with Section 6620 of the Administrative Code. This amount represents the portion of the retail sales tax projected to be generated in this County during the next fiscal year. The amount is not known precisely until the end of that year: it was approximately $11.8 million in 2012/2013. LTF funds are apportioned to Cities, the County, public transportation providers, Regional Rideshare, and SLOCOG based on the original estimate plus any carryover balance available. 2. APPORTIONING LTF FUNDS During March and April, SLOCOG reports to all prospective claimants the estimated LTF funds being apportioned for distribution the next fiscal year. These estimates have been reviewed by the SLOCOG s advisory committees prior to the SLOCOG Board meeting. LTF. SLOCOG apportions revenues from the LTF Fund according to the priorities outlined in the Public Utilities Code (PUC 99233). Appendix B describes the uses of LTF funds allowed by TDA. These consist of: Setting aside the Off the Top contributions to SLOCOG, pedestrian and bicycle facilities (2% of the balance after Admin./Planning and Reserve) and CTSA Allocating the balance of those funds to the Cities and the County, using a population-based formula Adjusting the above population-based allocations to account for the local contributions to their annual budget estimates for the next fiscal year (when available), based on the Joint Powers Authority (JPA) agreements for the RTA and SCAT 3. APPORTIONING STA FUNDS In April, SLOCOG reports to all prospective claimants the estimated STA funds being apportioned for distribution the next fiscal year. These estimates have been reviewed by the SLOCOG s advisory committees prior to the SLOCOG Board meeting. STA. STA funds are apportioned in two categories: Revenue Formula Allocation (PUC 99314) - in the order of $150,000 in 2012/13; apportioned by the State only to public transit operators (Article 4 claimants) - based on fare revenues from a prior year reported in the "Annual Report of Financial Transactions of Transit Operators" submitted to the State Controller and SLOCOG. 6

7 Discretionary Funding (PUC 99313) approximately $1.9 million (including carry-forward) in 2012/2013; apportioned by SLOCOG per adopted regional criteria. STA Fund Recipients (PUC (a)): The cost-containment test (based on the State Consumer Price Index) requirement has been lifted until the end of 2013/14. Once this requirement is back in place, transit recipients will need to pass a cost-containment test to be eligible for STA funds to be used towards operations. If they do not pass this test, the funds are held in the trust fund for up to three (3) years before being returned for re-allocation. The costcontainment test, performed by SLOCOG, measures increases in transit operating cost per hour against increases in the Consumer Price Index (CPI) over a two year period or an average over a 3 year period. The percent increase in operating cost per hour cannot exceed the percent increase in the CPI over the same period; some components may be excluded from operating costs per PUC (b) and (f) for the purpose of this test. Those components include: i. Fuel increases from the prior year beyond the change in the CPI ii. Start-up costs for new services for a period of no more than two years (differs from Total Operating Costs of Service Extension allowed for Farebox ratio) iii. Increases from the prior year beyond the change in CPI in liability insurance premiums iv. Increases in ADA complementary services above the CPI (only applies to RTA) 4. FORMAL APPROVAL At the June Board meeting, SLOCOG adopts a resolution conditionally approving all claims to be submitted over the course of the next six months. The Board authorizes the Executive Director to review each claim as it is submitted for accuracy and completeness, and either approve the claims or return them for more information. It is the claimant s responsibility to identify the total amount approved by SLOCOG in June, file a claim and meet the associated reporting requirements (see Section II File A Claim For Funds To SLOCOG ). 5. REVISING TDA APPORTIONMENTS SLOCOG may need to revise apportionments as follows: LTF: SLOCOG may issue a revised determination of apportionments based on a revised or updated estimate of funds furnished by the County Auditor or the State Controller. SLOCOG will modify 4th Quarter allocation instructions and disbursements to all affected claimants if the original apportionments exceed the actual amount received. If the amount received is greater than the original apportionment, the additional amount will be carried over into the next fiscal year s fund balance for apportionment in that year. STA: The amount of STA funds apportioned usually changes in August of the claim year, based on the adopted State Budget (which identifies the actual amount to be distributed). SLOCOG notifies each claimant of their revised STA apportionment, which they should note and initial on their file copy of the claim. 7

8 Claimants should revise their claim anytime during the fiscal year if warranted. Claimants may decide to use the funds differently than originally proposed as long as the use is for transportation purposes. If a claimant wishes to revise their claim, they must send a copy of the changes made to their file copy. For those claimants in a designated urbanized area receiving Federal transit monies, the operator should carefully assess Federal grant match ratio requirements in making the TDA distribution. 8

9 II. FILE A CLAIM FOR FUNDS TO SLOCOG TDA recipients must file a claim with SLOCOG for the fiscal year that the claim applies based on the total amount available per claimant. Claim forms are ed, and claimants may also download a copy from the SLOCOG website. The claims require at minimum: agency name; the total amount claimed; the fiscal year for which funds are claimed; the purposes for which the funds will be used (transit, bikeways, street/road maintenance, etc.), and required CHP certifications. Additional information may be necessary, depending on the source of funds (LTF or STA). Table 1 below is from the claim form. It lists the different categories in the Annual Project and Financial Plan portion of the claim which are cross referenced by column number from Appendix A, Exhibit A. Appendix B further elaborates how LTF Funds can be used in each category. TABLE 1 Annual Project and Financial Plan: Your TDA will be distributed according to this plan. CATEGORY ARTICLE/SECTION* Bikeways (2%) see Exhibit A LTF Article 3, Sec (Col. 3) RTA see Exhibit A (Col. 4) LTF Article 4, Sec RTA Operated Local Transit see Exhibit A (Col. 7) SCT see Exhibit A LTF Article 4, Sec (Col. 8) Triennial Performance Audits LTF Article 8, Sec (SLOCOG) (Col. 9) Discretionary (to be filled in): TDA Audit LTF Article 3, Sec (Col. 11) Local Public Transit System LTF Article 4, Sec (Col. 12) Roads Maint./Rail/ Bikeways/ LTF Article 8, Sec (a) Ped. (Col. 13) Misc. Transp. Allocations/Sr. LTF Article 8, Sec (c) Van Programs/ Subsidized Taxi (Col. 14) CTSA (Col. 2) LTF Article 4.5, Sec TOTAL LTF BEING CLAIMED (Should correspond to Exh. A) (Col. 15) TOTAL RURAL TRANSIT FUND (RTF) BEING CLAIMED (Should correspond to Exh. A) (Col. 16) TOTAL CARRYOVER RURAL TRANSIT FUND (RTF) BEING CLAIMED (Should correspond to Exh. A) (Col. 17) LTF Article 4, Section LTF Article 4, Section

10 Transit (Col. 19) Transit (Col. 20) STA Article 6.5, Sec (State Apportioned) STA Article 6.5, Sec (Discretionary) TOTAL STA BEING CLAIMED (Should correspond to Exh. A) (Col. 21) GRAND TOTAL (LTF, RTF, CARRYOVER RTF AND STA) (Col. 22) *Source: April 2013 TDA Guidebook, CALTRANS Use of TDA Funds as Proposed All claimants must spend or earmark TDA monies in accordance with the "Annual Project and Financial Plan" included in each claim. If unforeseen situations result in a need to spend these transportation funds in a way other than that included in the approved Annual Project and Financial Plan, the claimant must submit a request to revise this plan, in writing, to SLOCOG. The annual audit must certify that the funds were used as proposed or that the funds were set aside and earmarked to pay for a future transportation project consistent with the Annual Project and Financial Plan. All interest earned on reserved TDA funds must be used for the proposed purpose. Claim Supporting Documents In addition to the claim form, the following document need to be submitted: 1. SUBMIT QUARTERLY TRANSIT DATA - DUE 45 DAYS AFTER QUARTER END. Transit claimants will need to submit the quarterly statistics shown in Appendix A Exhibit C. 2. SUBMIT STATE CONTROLLER REPORT (ARTICLE 5.5, SECTION 6665) - DUE SEPT 30 OR (OCT 20 IF FILED ELECTRONICALLY). Expenditures of TDA funds must be reported to the State Controller within 90 days after the close of the fiscal year. Copies of these reports must be submitted to SLOCOG at the same time the reports are submitted to the Controller. A PDF file is also required. These reports are typically prepared by the agency s accounting/finance staff but sometimes are prepared by the agency s independent auditor. The State Controller uses the data from these reports to prepare estimates of the revenue-based STA fund allocations for the next fiscal year. In the case of transit claimants, the transit operating statistics included in the State Controller s Report should be consistent with the estimated operating data from the prior fiscal year. 3. SUBMIT FISCAL/COMPLIANCE AUDIT TO SLOCOG (ARTICLE 5.5, SECTION 6664) - DUE DEC 31 A copy of the claimant s TDA fund fiscal audit (conducted by an independent auditor) must be submitted to SLOCOG before TDA funds are released to the claimant. A PDF file is also required. The official state deadline is within 180 days (Dec 31 st ) after the end of the fiscal year. SLOCOG may 10

11 grant an extension of up to 90 days (March 31 st ) upon receipt of a written request to the Executive Director by the claimant. TDA funds will not be released until the audit is received unless approved by the Executive Director. The audit report shall include a certification that the TDA funds allocated to the claimant the previous year were expended in conformance with applicable laws, rules and regulations. The report shall present two years of financial information comparatively. No allocation shall be made to any claimant that is delinquent in its submission of a fiscal audit report. To minimize the cost of preparing and submitting fiscal/compliance audits, SLOCOG prepares and distributes Request for Proposals (RFP s) every 3-4 years to independent auditors to prepare these TDA mandated audits (see Appendix F). Claimants may select one of the auditors who responds to the bid, or may select their own independently of SLOCOG s RFP process. The claimant may also expand the scope of their agency annual fiscal audit to meet the audit requirements of other funding sources, as long as it includes a certification of compliance with the TDA and clearly states the calendar for submittal of the TDA fiscal audit. Under no circumstances will SLOCOG release current year TDA funds to jurisdiction without a completed fiscal audit of the prior year by March 31 st. 4. REPORT STATUS OF FOLLOW UP ACTIONS TO AUDIT RECOMMENDATIONS (ARTICLE 4, PUC SECTION 99244) - DUE EARLY MAY The transit claimants report to SLOCOG progress made in implementing the most recent triennial performance audit recommendations in the current fiscal year. Examples of follow up actions may be: transit service changes, completion of capital projects, fare increases, cost-savings measures (such as a new operating contract, shared functions with other claimants, lower overhead expenses) or other steps meant to improve efficiency and effectiveness. In the event major changes took place since the last triennial performance audit or the most recent Short Range Transit Plan, the transit claimants should identify how they have dealt with those changes to date. SLOCOG brings an annual update to the board on the reported status of triennial performance audit recommendations and, depending on status, might adopt supplemental actions to be taken by the claimant in the next fiscal year. This is especially relevant if the claimant shows repeated noncompliance with the farebox ratio. 11

12 III. SCHEDULE FOR TDA CLAIMANTS FILING A CLAIM The following is a timeline for the TDA process. CURRENT FISCAL YEAR First Quarter 1. July December Claimants complete and submit claims with CHP safety compliance report. SLOCOG must have the claim, the CHP certification, and the most current transit data available in order to complete the first quarter allocation instructions. Regarding transit data specifically, claimant must have submitted the prior year s third quarter transit data if claim is submitted in first 45 days of first quarter (before August 15 th ). If claim is submitted after August 15 th, the fourth quarter transit data must be submitted by August 15 th. 2. July December As claims are received, SLOCOG issues allocation instructions to the County Auditor to distribute first quarter funds to claimants. 3. September 30 th Claimants submit State Controller s Report to SLOCOG and the state. Second Quarter 4. October 20 th Claimants can electronically submit State Controller s Report to SLOCOG and the state. 5. November 15 th Claimants submit first quarter transit data (July-Sept.). 6. December SLOCOG issues allocation instructions to the County Auditor to distribute second quarter funds to claimants. SLOCOG must have the claim, the CHP certification, first quarter transit data, the fiscal audit, and the State Controller s report to complete second quarter allocation instructions. 7. December 31 st Claimants submit fiscal audits to SLOCOG. If Claimant is unable to submit fiscal audit by December 31 st, Claimant must submit a request for a 90-day extension prior to December 31 st. Third Quarter 8. February 15 th Claimants submit second quarter transit data (October-December). 9. March SLOCOG issues allocation instructions to the County Auditor to distribute third quarter funds to claimants. SLOCOG must have the claim, the CHP certification, second quarter transit data, the fiscal audit, and the State Controller s report to complete third quarter allocation instructions. Fourth Quarter 10. May 15 th Claimants submit third quarter transit data (January-March). 11. June SLOCOG issues allocation instructions to the County Auditor to distribute fourth quarter funds to claimants. SLOCOG must have the claim, the CHP certification, the fiscal audit, the 12

13 State Controller s Report, and the third quarter (January-March) transit data to complete fourth quarter allocation instructions. FOLLOWING FISCAL YEAR 12. August 15 th Claimants submit fourth quarter transit data (April-June). 13. December SLOCOG sends out public notices on the unmet transit needs process. 14. February SLOCOG receives LTF estimates from SLO County and receives STA estimates from the State Controller s Office. 15. February SLOCOG conducts unmet transit needs hearing. 16. February April SLOCOG reviews the requests for unmet transit needs. 17. April June SLOCOG determines whether TDA recipients with transit programs have made reasonable progress in implementing the most recent audit recommendations in the current fiscal year and whether operators are making continued progress to improve the efficiency and effectiveness of the services, including increased coordination. In the event TDA recipients have not made progress, SLOCOG could take action, including: consultation, withholding increased LTF from prior year, and/or withholding STA (such as Farebox Ratio penalties). 18. April June SLOCOG determines whether there are any unmet transit needs reasonable to meet and notifies claimants of conditions of approval. 19. April Based on fund estimates, SLOCOG apportions LTF and STA funds. 20. June SLOCOG approves LTF, STA and RTF allocations. 21. June SLOCOG releases claim forms and regional guidelines. 13

14 IV. TRANSIT SYSTEM FAREBOX RECOVERY RATIOS No claimant can receive TDA funds if the ratio of the sum of fares and eligible local support to transit operating cost falls below the TDA minimum, called farebox recovery ratio. This applies to both STA and LTF funds. 1. DEFINITIONS Operating Cost (PUC a) " Operating cost means all costs in the operating expense object classes exclusive of the costs in the depreciation and amortization expenses object class of the uniform system of accounts and records adopted by the Controller (PUC Section 99243) and exclusive of all subsidies for commuter rail services operated under the jurisdiction of the Interstate Commerce Commission and of all direct costs for providing charter services and exclusive of all vehicle lease costs. Other allowed cost exclusions are Ridesharing services costs (PUC Section ). Fare Revenues (Article 2, Section ) All revenues in the following account classes of the uniform system of accounts and records adopted by the State Controller pursuant to PUC Section : Passenger Fares for transit services Special Transit Fares School Bus Service Revenues Fare revenues include revenues earned under contractual arrangements with public or private entities, either (1) for transit fares for a specified group of employees, members, or clients, or (2) to guarantee a minimum revenue on a line operated especially for the benefit of the paying entity (e.g. an employer, shopping center, university, etc.). They may also include cash donations made by individual passengers or community organizations in lieu of a prescribed fare. Local support treated as fare revenues also include advertising revenues. (See Appendix D for qualifying and nonqualifying local support for computing farebox recovery ratios.) Local Support (Article 2, Section CCR ) All revenues in the following account classes of the uniform system of accounts and records adopted by the State Controller pursuant to PUC Section : Auxiliary Transportation Revenues Taxes Levied Directly by Transit System Local Cash Grants and Reimbursements Local Special Fare Assistance Subsidy from Other Sectors of Operation 14

15 Serving Urbanized Areas (PUC 99217) The boundaries of the urbanized areas are those reported in the Federal Decennial Census. As of February 2012, the urbanized areas in San Luis Obispo County are: the San Luis Obispo area, the Atascadero/Paso Robles/Santa Margarita/Templeton area and the Arroyo Grande/Grover Beach area. As a result, transit claimants serving an urbanized area are: SLO Transit Atascadero Transit Paso Express and Regional Transit Authority South County Transit Serving a Non-Urbanized Area (Article 2, Section ) An operator which is serving a non-urbanized area is an operator or transit service claimant that is not an operator serving an urbanized area. Transit claimants in the region serving non urbanized areas are: Morro Bay Transit and Trolley other County-funded general public transit services (Cambria and Avila trolleys, Nipomo and Shandon DARs) 2. CALCULATING FAREBOX RECOVERY RATIO For the annual Fiscal/Compliance audit, the State Controller s report and the Triennial Performance Audit, the farebox recovery ratio is computed as follows: Divide the audited fare revenues (as defined above, including qualifying local support) from the prior year by the total audited operating costs (as defined above). No cost exclusions other than the ones stated under PUC 99247(a) are allowed for such purposes. Yet, if the resulting farebox recovery ratio falls below the minimum required by TDA (see below), for the sole purpose of claims approval, one cost exclusion is allowed by PUC Section as of January 1, 2007: The additional costs to provide ADA complementary paratransit services, if those costs exceed the operator s cost in the prior year as adjusted for the Consumer Price Index (CPI) No additional exclusion is allowed for fuel costs, insurance liability premium, or for the purpose of the claim approval. 3. DETERMINING MINIMUM REQUIRED FAREBOX RECOVERY RATIO The TDA required minimum farebox ratios vary by types of transit operators as follows: 20% for transit claimants (or local operators) serving an Urbanized Area (PUC Section ) 15.95% for the Regional Transit Authority serving both Urbanized and Non Urbanized Areas (regional policy effective July 1, 2005 per PUC Section ). This is a blended ratio using a vehicle hour-based formula. 15

16 10% for transit claimants serving a Non-Urbanized Area (PUC Section ) In the case of operators with several forms of general public transit services (such as fixed route and Dial-A-Ride) over the same service area, the minimum farebox recovery ratio applies to all services combined, resulting in a blended farebox ratio. Other PUC Sections with interim exemptions for meeting the mandated farebox recovery ratio are respectively: Exemption for Extension of Services (PUC Section ) a two-year exemption is granted from the start up of the extended services-defined as addition of geographical area or route miles, improvements in service frequency or hours of service greater than 25% of the route total, or the addition of new days of service, or the addition of a new type of service. SLOCOG can work with the claimant on how to derive the adjusted ratios-both the costs and the fares derived from the extension are excluded from the interim farebox ratio for the balance of the transit system (applies to all Operators) Exemption for New Urbanized Areas (PUC Section ) - up to a five-year exemption is granted from the first full fiscal year after the Census Bureau designation as a new Urbanized Area (only applies to newly Urbanized Operators, namely South County Transit) Local Support Ratios (CCR (d)) a lower general public DAR ratio of 15% in urbanized service area with locally operated RTA Farebox Recovery Ratio Equivalent (for Article 8 Claimants) SLOCOG reserves the right to use farebox ratio equivalent ratios for determining productivity, such as riders per revenue hour or passengers per mile. These ratios are expected to be equivalent to similar services (only applies to Special Services eligible for Article 8, namely Ride-On Transporation). Claim Evaluation Criteria (for Article 4.5 Claimants) SLOCOG has the discretion to adopt performance criteria, local match requirements or farebox ratio requirements (only applies to the CTSA). 4. NON -COMPLIANCE WITH MINIMUM FAREBOX RECOVERY RATIO In the event a transit claimant does not meet its Farebox ratio, SLOCOG will comply with the provision of (Non Compliance with Required Revenue Ratio): The first year of non-compliance is the grace year. The second year of non-compliance is the non-compliance year. The third year is the determination year. The fourth year is the penalty year: TDA funds are reduced by the difference between the required revenues (in non-compliance year) and the actual revenues. 16

17 V. OTHER SLOCOG RESPONSIBILITIES 1. TRANSIT NEEDS ASSESSMENT AND UNMET TRANSIT NEEDS Prior to making any allocation not directly related to public transportation, specialized transportation services, and facilities provided for the exclusive use of pedestrians and bicycles, SLOCOG makes a finding that there are no "unmet transit needs reasonable to meet" that could be "reasonably met" with TDA funds (per Section ). SLOCOG achieves this by: In October, SLOCOG presents regional criteria for the definitions of unmet transit needs and unmet transit needs, reasonable to meet. Following review by the regional advisory committees and the Board, the criteria are finalized and adopted for the next fiscal year Unmet Transit Needs determination. In December, SLOCOG updates the Annual Transit Needs Assessment. The update reviews the size and location of identifiable groups likely to be transportation disadvantaged, including senior, lowincome and disabled persons. The annual update also presents recent trends in ridership for all existing public transit providers and analyzes factors impacting those trends. The annual transit needs assessment is presented to the Social Services Transportation Advisory Council (SSTAC) for their input, adopted by the SLOCOG Board and forwarded to Caltrans. In February, SLOCOG holds a public hearing to receive public testimony on unmet transit and bikeway needs. Each request for transit services is evaluated according to the adopted criteria of "unmet transit needs" and "reasonable to meet." In April, following staff evaluation of all requests, determination is made that: 1. There are no unmet transit needs within the jurisdiction of the claimant, or 2. There are unmet transit needs that are not reasonable to meet, or 3. There are unmet transit needs that can reasonably be met through expansion of existing transit systems, by adding new transit services, or by contracting for community transportation services. All unmet transit needs, reasonable to meet, must be served, before any LTF funds are released for street and road improvements in the next fiscal year. These findings are reviewed by SLOCOG Advisory Committees for their input before being brought to the Board for a final determination. 2. PREPARING AND DISTRIBUTING FUND ALLOCATION INSTRUCTIONS SLOCOG conveys allocation instructions to the County Auditor to make payments from the TDA trust fund. SLOCOG generally conveys four allocation instructions annually for each claimant: first, to distribute the first payment after a claim for funds is received and approved (along with a CHP Safety Certification), and then to distribute the remaining payments after the required documents are received (Fiscal audit, State Controller s report, and quarterly Transit Data). In general, payments for subsequent quarters are made in the third month (to allow time for LTF deposits to accumulate). By exception, the CTSA and RTA may receive payments earlier in the quarter, subject to receipt of the claim and prior quarter transit data, for cash flow reasons. These advance payments are to be made no earlier than the start of the quarter. Advance payments for future quarters can be approved by SLOCOG with required information as long 17

18 as funds are readily available. Note: All payments are subject to funding availability and in some instances may be delayed pending distribution of TDA funds from the State Controller. The Executive Director may advance funding if need is substantiated and adequate funding is available. Each allocation instruction is numbered for record keeping and reporting purposes. Allocations made to the same claimant for purposes authorized under different sections of the Act are identified separately. The instructions describe how the funds have been apportioned and how they should be disbursed. 3. KEEPING RECORDS SLOCOG and the County Auditor maintain accounting records of the two TDA trust funds including interest payments. SLOCOG is informed by the Auditor at quarterly intervals by written memorandum of the status of the funds in compliance with Section In practice, this requirement is fulfilled by SLOCOG having access to the County s reporting system. 4. RESERVING LTF OR WITHHOLDING STA FUNDS SLOCOG may specify that TDA monies allocated to a claimant be reserved for future payment to the claimant for a specific capital project (Section 6648). Funds may also be withheld from allocation to an operator in the event that the operator has not met the efficiency standards as described in PUC Reserving LTF Funds An allocation shall be reserved in the Fund only by allocation instruction, and monies that are reserved in the fund shall be authorized for payment only by a separate allocation instruction. Any monies allocated and reserved in the Fund and not released for payment within three years after the date of allocation shall cease to be reserved and shall be treated as an unallocated apportionment retained in the Fund for later allocation. Such monies may be reallocated to the same claimant for the same project or for a different purpose, or maybe allocated to another claimant in the same area of apportionment (i.e. service area). At any earlier time, SLOCOG, with the consent of the claimant, may rescind or revise an allocation of monies reserved in the Fund. SLOCOG shall not authorize any payment to a claimant from an allocation reserved in the Fund if the claimant is holding in its own accounts a reserve of monies originally allocated in a previous year from the Fund. Withholding STA Funds Each transit claimant must undergo an annual STA Eligibility Fund test done by SLOCOG. If an operator is ineligible to receive STA funds in a given year, the funds that were apportioned will be held in the trust fund until that operator becomes eligible (for up to three years). After three years, the unclaimed amount will be reapportioned. Note: The cost-containment test (based on the State Consumer Price Index) requirement has been lifted until the end of 2013/14. 18

19 5. PERFORMING TRIENNIAL PERFORMANCE AUDITS SLOCOG must designate entities other than itself to prepare performance audits of its activities and the activities of each transit operator to which it allocates TDA funds within SLOCOG s jurisdiction (PUC Section 99246). The performance audit must evaluate the efficiency, effectiveness, and economy of the operation of the entity being audited. Performance audits are conducted triennially pursuant to a schedule established by SLOCOG. SLOCOG must transmit audits to Caltrans and certify in writing that the performance audits of operators located in the area under its jurisdiction have been completed. The triennial auditor examines the following areas of performance: Compliance with applicable TDA requirements during the 3-year audit period; Status of the prior audit recommendations in view of changes that may have taken place since the prior audit; Quantitative review of required TDA performance indicators and multi-year trends 1 ; Functional review of the agency or the operator being audited; and Findings and Recommendations for the next three years. SLOCOG submits all Triennial Performance Audit reports to Caltrans by June 30 th. Prior to September 1 of each year, SLOCOG provides to Caltrans a schedule of performance audits to be submitted during the current fiscal year and a list of all operators or claimants who operated or commenced operations in the prior fiscal year. 6. SUBMITTING ANNUAL FISCAL AUDITS OF ALL CLAIMANTS SLOCOG is responsible for ensuring that all claimants submit three copies of an annual certified fiscal audit conducted by an entity other than itself (PUC Section 99245). The audit must be submitted to SLOCOG 180 days after the end of the fiscal year (Dec. 31), unless an extension is requested by the entity and granted by the SLOCOG Executive Director for up to 90 more days (March 31) as deemed necessary. 1 Transit Providers only. 19

20 APPENDIX A CLAIM FORM SAN LUIS OBISPO COUNCIL OF GOVERNMENTS 2013/2014 TDA CLAIM FORM Please enter information in the spaces provided. Once all the data has been entered, the form may be mailed (1114 Marsh Street, San Luis Obispo, CA 93401), ed (lkramer@slocog.org), or faxed Item 1. Claimant Information Agency Name: Date: Contact Person: Fiscal Year: 2013/2014 Title: This Claim is Original Revised Address: Phone: Fax: This claimant, qualified pursuant to Section of the Public Utilities Code, hereby requests, in accordance with Chapter 1400, Statutes of 1971, as amended and applicable rules and regulations, that an allocation be made for the purposes and in the respective amounts as described in the attached Project and Financial Plan claim form. The total amounts correspond to the allocations approved by the San Luis Obispo Council of Governments on June 5, See attached Exhibit A. CATEGORY DOLLAR AMOUNT (see Exhibit A) a) Annual Local Transportation Funds (LTF) b) Annual Rural Transit Funds (RTF) c) Carryover Rural Transit Funds (RTF) d) Annual State Transit Assistance (STA) Funds TOTAL FUNDS BEING CLAIMED ARE: This claim was conditionally approved by the San Luis Obispo Council of Governments at a meeting on June 5, SLOCOG office use only / / # Ronald L. De Carli, Executive Director Date Claim # 20

21 Item 2. Certifications By providing the required information and marking each applicable box below, the authorized official certifies compliance with all of the required TDA Certifications. (All claimants complete Part I; Transit Claimants complete Part II as well). PART I. The proposed expenditures are in conformity with the Regional Transportation Plan (RTP) (CCR 6754(a)(1). All maintenance projects are consistent with the RTP; any capital project is identified as follows:. A jurisdictional fund will be established for pedestrian and bicycle allocations pursuant to PUC (JPA's and the CTSA are exempt). Is the allocation for pedestrian and bicycle going to be used to meet a bicycle request from the annual Unmet Needs hearing? (Y/N) If yes, please describe: Equivalent reduced transit fares and identification cards for senior citizens and handicapped persons are available pursuant to PUC Agency will program or implement services to meet all unmet transit needs per the adopted 2013 SLOCOG resolution if applicable. Prior to disbursement of TDA funds, the following documents will be submitted: 1. This claim for funds will be submitted to SLOCOG. 2. Safety Compliance Report/Terminal Record Update certification by the California Highway Patrol (CHP) verifying compliance with Section of the Vehicle Code. 3. State Controller s report (LGFA) will be submitted to SLOCOG and State Controller by September 30 (or October 20 if submitted electronically). 4. Annual statistics will be sent electronically. See Exhibit C. 5. One hard copy (and one PDF copy) of a certified fiscal audit of all TDA funds received the prior fiscal year will be submitted to SLOCOG (by December 31 for 2 nd quarter payment). Prior to submittal of the final version of the fiscal audit, the operator should provide a copy of the draft fiscal audit for SLOCOG review (at least one week before due date). If the operator s financial auditor is not able to meet the December 31 st due date, the operator should request from SLOCOG an extension (up to 90 days) with a written justification for the delay submitted by December 16, The operator should inform its fiscal auditor of the need to meet the above deadlines. PART II. ALL TRANSIT CLAIMANTS MUST ALSO COMPLETE THE FOLLOWING: Farebox ratio (fares/operating costs) for system is expected to exceed 10% (rural operators), 16% (RTA), 20% (urban operators), and 15% (North County DARs). Full use is being made of federal funds available under the Urban Mass Transportation Act for transportation purposes (CCR 6754). Fixed-route operator accepts and handles Regional Day Pass issued by the Regional Transit Authority with revenue-sharing participation per adopted formula among regional and local fixed-route providers (2008 Region wide Fare Improvement Study-Policy A). Fixed-route provider accepts Region ALL Pass issued by the Regional Transit Authority with revenue-sharing participation per adopted formula among regional and local fixed-route providers (2008 Region wide Fare Improvement Study-Policy B). The transit system is not precluded by contract from employing part time drivers or from contracting with common carriers of persons operating under a franchise or license (CCR 6754-(b)-2). 21

22 Compliance with CVC Section (PUC 99155) "Drivers Pull Notice Participation" Program and Section "Transit Bus drivers; Required Certifications and Employee Records" Program (must be within 13 months of claim submittal date). The transit system has an adopted Short Range Transit Plan or is part of a subregional plan. The transit system will not receive TDA funds (LTF plus STA) in excess of operating costs minus fare revenues (CCR 6754 (a) 4). Those funds exclude RTF capital awards. Item 3. Annual Project and Financial Plan: Your TDA will be distributed according to this plan. CATEGORY ARTICLE/SECTION Bikeways (2%) see Exhibit A LTF Article 3, Sec (Col. 3) RTA see Exhibit A LTF Article 4, Sec (Col. 4) RTA Operated Local Transit see Exhibit A (Col. 7) SCAT see Exhibit A LTF Article 4, Sec (Col. 8) Performance Audits (SLOCOG) LTF Article 3, Sec (Col. 9) Discretionary (Col. 10) TDA Fiscal Audit LTF Article 3, Sec To be filled in (Col. 11) Local Public Transit System LTF Article 4, Sec To be filled in (Col. 12) Roads Maint./Rail/ Bikeways/ LTF Article 8, Sec (a) To be filled in Ped. (Col. 13) Misc. Transp. Allocations/Sr. LTF Article 8, Sec (c) To be filled in Van Programs/ Subsidized Taxi (Col. 14) CTSA (Col. 10, Row i) LTF Article 4.5, Sec To be filled in (if CTSA) Discretionary Must Total: $ TOTAL LTF BEING CLAIMED (Should correspond to Exhibit A) (Col. 15) TOTAL RURAL TRANSIT FUND (RTF) BEING CLAIMED (Should correspond to Exhibit A) (Col. 16) TOTAL CARRYOVER RURAL TRANSIT FUND (RTF) BEING CLAIMED (Should correspond to Exhibit A) (Col. 17) Transit (Col. 19) LTF Article 4, Section LTF Article 4, Section STA Article 6.5, Sec (State Apportioned) 22

23 Transit (Co. 20) STA Article 6.5, Sec (Discretionary Based) TOTAL STA BEING CLAIMED (Should correspond to Exhibit A) (Col. 21) GRAND TOTAL (LTF, RTF, CARRYOVER RTF AND STA) (Col. 22) Item 4. Annual Fiscal Audit: Identify actions taken to comply with the most recent fiscal audit recommendations (if applicable). If no actions were taken, describe what actions you plan to take in the first two quarters. Item 5. Triennial Performance Audit: Identify efforts made to implement transit productivity improvements recommended in prior performance audit (transit claimants-only), mainly those follow-up actions recommended for the most recent fiscal year or actions contemplated in the upcoming fiscal year. If no near term action is contemplated, elaborate on reasons for delay or describe alternate course of action. Item 6. Short Range Transit Plan or Sub Regional Plan: Identify progress made to date in implementing recommendations or improvements developed in the prior or most recent plan (including draft recommendations, if pending adoption). Include the actions related to operations, maintenance, capital projects, marketing, customer service, fare policy and other areas of the transit program covered by the plan. Include initiatives in coordinating improvements or consolidating functions with other providers. Item /2014 Transit System Budget (transit claimants-only) See Excel file, Transit Budget for 13/14) 23

24 Item 8. Did the 2013/2014 operating budget increase over 15% from the adopted 2012/2013 budget? YES NO If the answer is yes, please provide a statement identifying and substantiating the reason or need for the increase in the transit operating budget in excess of 15% above the preceding year, and identify substantial increases or decreases in the scope of operations or capital provisions for major new service (transit claimants-only, if applicable). In the case of the County, such determination is needed by individual services. In the case of Ride-On, this determination only applies to the CTSA activities/program. Item 9. In the case of Federal transit grants, indicate required match ratios by grant type, identify source of matching funds and compliance with minimum match ratios. For Federally funded capital projects, give status and anticipated completion timeline. Item 10. To be completed by RIDE-ON Transportation ONLY. For FY13/14 expanded reporting requirements, please see attached April 3, 2013 staff report approved by SLOCOG Board. Please provide an estimate of the number of rides, and the cost per ride expected for each program in fiscal year 2013/2014 pursuant to Article 4.5, Section State the productivity (in riders per hour) and operating assumptions used to project the annual ridership and cost effectiveness by CTSA program (Tri-Counties Regional Center, Community Interaction Program, Medi-Cal Transportation, Private Pay, Veteran s Express and Agricultural Workers Vanpools). When reporting quarterly data, track actual performance versus those budget assumptions and compare with actual performance of the two previous years. H:\ OWP\1000 TDA\1100 TDA Admin\13 14 TDA Claim Form.doc 24

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26 EXHIBIT A LTF, STA AND RTF ALLOCATIONS EXHIBIT A LTF 2013/2014 TRANSPORTATION DEVELOPMENT ACT (TDA) FUND - Adopted 6/5/13, Administrative Amendment 8/7/13 LTF - Committed Funds LTF - Discretionary Uses Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 Col. 11 Col. 12 Col. 13 Col. 14 Col. 15 Jurisdiction/ Transit Property LTF AVAIL TO APPORTION Net LTF Avail - To Be Shown on Claim (Col 1 - Col 5) Bikeway/ Ped. Art. 3 Sec Net RTA Art. 4 Sec note 1 RTA RTF Contrib Total RTA Contrib Art. 4 Sec (Col 4&5) note 2 RTA Operated Local Tansit note 3 SCAT Art. 4 Sec Perf Audits Sec note 4 TBD By Claimant (Col 1 less 3-5, 7-9) TDA Fiscal Audit Art. 3 Sec Transit Ops & Plng Art. 4 Sec Roads Maint Art. 8 Sec (a) Transit Cap/Sp Srvcs Art. 8 Sec (c) NET LTF Allocated (Col 3,4, 7-10) a. Arroyo Grande 818, ,279 16, ,442 27, , ,404 6, , ,279 b. Atascadero 1,348,788 1,303,178 26, ,000 45, , , , ,303,178 c. Grover Beach 623, ,325 12, ,264 21, , ,153 4, , ,325 d. Morro Bay 486, ,164 9, ,462 16, , , ,164 Paso Robles e. 1,431,580 1,383,170 28, ,432 48, , ,397 1,036, ,383,170 f. Pismo Beach 363, ,227 7,270 76,542 12,293 88,835 63,610 2, ,915 1, ,815 8, ,227 g. SLO Transit 2,458,576 2,365,007 49, ,623 93, , ,700 1,715, ,715, ,365,007 h. i. j. SLO County (note 3,5) 5,327,088 5,072, ,536 1,586, ,717 1,840, ,490 60,222 9,750 2,712,345 0 n/a 0 n/a 5,072,371 Ride-On/CTSA (note 6) 662, ,519 n/a n/a n/a n/a n/a 0 662, ,519 Contingency Fund 1,500,000 1,500,000 n/a n/a n/a n/a n/a n/a 1,500, ,500,000 k. TOTAL 15,021,069 14,501, ,157 3,236, ,830 3,756, , ,389 60,000 9,973,411 1,000 1,715, ,815 8,100 14,501,239 (RTA LTF) (RTA LTF) (SCAT LTF) Direct Recipients Notes: SLOCOG Admin. l. Art , ,386 n/a 1. Col 4 is the number that goes on claim form for total contribution to RTA. RTA's budget was approved on 5/1/13; SCAT budget on 4/24/13. m. SLOCOG Plng Art , ,011 n/a 2. If the RTF was not exchanged for LTF, RTA would need the Col. 6 amount in LTF. n. o. R/S & SLOCOG Art. 3/ ,535 13,535 13, Col 7 represents transfer of transit duties from County to RTA. It is directly allocated to RTA. RTA's LTF is the sum of Col 4 & 7. RTA col 4 & col 7 totals col 4 & col 7 totals n/a 4. The 4/3/13 SLOCOG Board approved budget included $60k in LTF from transit operators for Performance Audits: Paso Robles, SLO City, RTA & SCAT. p. SCAT see col 8 total see col 8 total n/a 5. All SLO County transit LTF, RTF and STA Funds are directly allocated to RTA and expended by RTA on behalf of SLO County. q. Total 844, ,932 13, Ride-On's Discretionary STA budget includes $35K contribution to Senior Shuttle and up to $15K "local match" for Vet's Shuttle. r. FINAL TOTALS 7. RTA's STA includes SLO County Op. Rev STA of $2,160 & SLO County Discr. STA of $96, ,866,001 15,346, , On 8/7/13, an Administrative Amendment was done to increase Op. Rev STA based on 8/1/13 letter from SCO office with revised STA estimates. 26