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RESOLUTION NO. 2015-009 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE METROPOLITAN TRANSIT SYSTEM (MTS) REGARDING THE CITY’S DIVESTMENT OF PUBLIC TRANSPORTATION SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution and approve the agreement.
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SUMMARY
Over the last few years, MTS has been expanding its transit (South Bay) facility located at 3650 Main Street in Chula Vista. The expansion will include additional bus parking and new administrative and maintenance buildings. Additionally, MTS upgraded its Compressed Natural Gas fuel station in 2010. With this expansion, MTS will be able to consolidate the operations of the Chula Vista yard into their South Bay operations yard and vacate the PWC yard.
The consolidation of all the transit operations under the regional transit agency, MTS, will create a reduction of administrative, management and operational tasks. Additionally, this consolidation will create revenue generating opportunities for the City by making available for lease a fully equipped bus maintenance facility.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance 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 administrative/maintenance activities by the City of Chula Vista. Therefore, pursuant to Section 15060(c) (3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The City has been operating public transportation services via Chula Vista Transit (CVT) since 1971. Over those 43 years, CVT has met the challenge of providing transit services to its residents by expanding services as the City grew and purchasing the capital equipment necessary. In 2001, the City lost its direct allocation of State Transportation Development Act (TDA) Funds. All TDA funds were consolidated at the San Diego Metropolitan Transit System (MTS) (then the Metropolitan Transit Development Board). Due to the strong, respectful, and cooperative relationship the City has had with MTS, CVT continued to operate independently, but under the MTS umbrella. Over the years MTS has provided all operating, administrative and capital funds for the City to continue to provide transit service to the community through its transit system. In 2002, CVT moved its operations to the new Public Works Center (PWC). Approximately $7.5 million of City Transportation Development Act funds contributed to the building of the PWC.
The MTS transit yard expansion will now allow MTS to integrate the 38 buses currently used for CVT services. The consolidation of services will open up operational efficiencies and effectiveness in the provision of services and the use of public transportation funds.
This transition also opens up a revenue generating opportunity for the City by making the space where the transit facilities are currently located in the PWC available for leasing. Transit facilities currently at the PWC include the following: Office space, parking space, fully equipped maintenance garage with six maintenance bays, mezzanine storage space and compressed natural gas facilities.
Since July 1, 2001, when the City started to participate in the consolidation of the Transit Development Act, Article 4.0 funds in the MTS region, MTS has had an expanded regional view of transit services. City boundaries within our region no longer determine transit service levels. MTS took an unbiased view of the regional transportation needs of the greater community based on empirical data. CVT has benefited by this approach with increased service frequencies. Consequently, transit staff foresees MTS continuing to meet the City’s current and future transportation requirements. This conclusion is further supported by the continuing professional and cooperative relationship the City has with MTS.
This agreement turns over all City transit related obligations to MTS. The following is a summary of these obligations:
Transit Facilities - Responsibilities for general bus stop maintenance shall be transferred to MTS. Services shall include installation of red curb (with City consultation), installation and removal of bus stop signs, minor graffiti removal from bus stop structures and minor tree trims The City shall continue to be responsible for City contracted waste management, street lighting, City-owned benches and shelters, and landscaping in the City right of way. All bus stop facility installations or relocations shall be coordinated with the City’s Public Works Department.
Bayfront Trolley Station/Visitor Center (BFVC) - Effective January 25, 2015, the Visitor Center building, any outstanding contracts with vendors, all utilities, facility maintenance and landscaping will be transferred over to MTS to manage in its entirety. MTS will be fully responsible for the building.
Additionally, MTS and City acknowledge that the Bayfront/E Street Trolley Station is a site that has been identified for a future transit-oriented development project, either alone or assembled with neighboring properties. MTS and City agree to work cooperatively to identify a long-term use of the trolley station property that preserves all property rights necessary to operate public transit services at this location. It is anticipated that a future development will require the demolition of the Visitor Center building.
Assume Contracts/Agreements - MTS shall assume all City transit-related contracts related to operation and maintenance of transit facilities, e.g., Bayfront/E Street Transit Center, H Street Transit Center and Southwestern College Transit Center. MTS shall be obligated to perform the services identified in the Contracts in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations.
Transition/Oversight - MTS elects to retain and fund the City’s Transit Manager position to assist with the transition of CVT operations over to the South Bay facility, for an unspecified length of time. MTS and the City shall agree to a reimbursement method that shall be invoiced by the City as follows (post relocation of operations from the City to MTS’s South Bay Maintenance Facility):
• February 1, 2015 through June 30, 2015 activities (5 months): Invoice $16,377 per month by July 31, 2015; and
• Post June 30, 2015 activities: Invoice $16,588 per month on a quarterly basis
until the elimination of the Transit Manager position.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The consolidation of transit services in one transit yard will improve operational efficiencies and effectiveness. Contribution to the Connectivity of the Community and the Economic Vitality of the City will continue by providing transit trips that meet the shopping, medical, educational and employment needs of the residents and visitors of City.
CURRENT YEAR FISCAL IMPACT
Approval of the agreement will result in an impact to the General Fund and the Fleet Maintenance Fund. There is no net fiscal impact anticipated to the Transit Fund.
General Fund - The budget includes reimbursements from Transit to the Public Works department for work performed on behalf of transit and for utilities expenditures. It is estimated the transition of Transit will result in a loss of approximately $145,000 in revenues in the current fiscal year. The Public Works department will no longer be reimbursed for work performed by Street Maintenance, Signing and Striping, Park Maintenance, and Custodial on behalf of Transit. It is also anticipated that utilities budgeted in Public Works Administration will be reduced once Transit is no longer located at Maxwell Road. Staff is evaluating what expenditure savings, if any, can help offset the projected revenue shortfall.
Fleet Maintenance Fund - The budget includes reimbursements from Transit to the Fleet Maintenance Fund for expenses the Fleet Fund incurs on behalf of Transit. This includes utility costs related to compressed natural gas (CNG) station and maintenance costs. It is estimated the transition of Transit will result in a loss of approximately $47,000 in revenues in the current fiscal year. The Fleet Maintenance Fund will assume the maintenance costs of the Compressed Natural Gas Station in the amount of $9,130 and the compressor repair cost estimated at $9,500. Staff is evaluating what expenditure savings, if any, can help mitigate the projected revenue shortfall.
Transit Fund - There is no net fiscal impact anticipated in the Transit fund. The City will continue to budget for the Transit Manager and will continue to be reimbursed for these costs. No additional expenditures are anticipated in this fund. Revenue shortfalls will be mitigated by expenditure savings.
ONGOING FISCAL IMPACT
Approval of the agreement will result in an impact to the General Fund and the Fleet Maintenance Fund, the full fiscal impact and possible mitigation strategies is being evaluated. There is no net fiscal impact anticipated to the Transit Fund.
General Fund - The Public Works department includes approximately $304,000 in reimbursements for work performed by Public Works staff and utilities costs incurred on behalf of Transit. These reimbursements will be eliminated from future budgets. Staff is evaluating what expenditure savings, if any, can help offset the projected revenue shortfall.
Public Works is currently in negotiations with Sweetwater Union High School District to relocate their Fleet to the space currently occupied by MTS which may help mitigate the elimination of Transit revenue.
Fleet Maintenance Fund - The Fleet Maintenance Fund includes approximately $215,000 in reimbursements for costs incurred on behalf of Transit. These reimbursements will be eliminated from future budgets. Staff is evaluating what expenditure savings, if any, can help offset the projected revenue shortfall. Furthermore, the Fleet Maintenance Fund will assume the maintenance costs of the compressed natural gas station that has averaged $22,200 per year and the compressor maintenance cost of approximately $25,000 per year. This will result in increased fleet maintenance charges, which will also impact the General Fund.
Transit Fund - There is no net fiscal impact anticipated in the Transit fund. The City will continue to budget for the Transit Manager and will continue to be reimbursed for these costs. No additional expenditures are anticipated in this fund. Revenue shortfalls will be mitigated by expenditure savings.
Staff Contact: Andy Trujillo, Transit Manager