Agenda Item Wording:
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Authorization to submit an allocation request in the amount of $411,201 to the California Department of Transportation Low Carbon Transit Operations Program (LCTOP) for operating funds to continue funding V-LINE operations and approve Resolution No. 2023-09 (required).
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Deadline for Action: 5/1/2023 - Application deadline.
Submitting Department: Administration - Transit
Contact Name and Phone Number:
Carmen Quevedo, Financial Analyst, Carmen.Quevedo@Visalia.City, (559) 713-4592
Angelina DeRossett, Transit Manager, Angelina.DeRossett@Visalia.City (559) 713-4591
Nick Mascia, Assistant City Manager, Nick.Mascia@Visalia.City, (559) 713-4323
Department Recommendation:
Authorize staff to submit an allocation request in the amount of $411,201 to the California Department of Transportation for Low Carbon Transit Operations Program (LCTOP) funding to be used in the operation of the V-LINE and approve Resolution No. 2023-09.
Background Discussion:
The V-LINE began in November 2015 and provides transit service connecting Visalia to Fresno. This service has been funded with a combination of fares, the Rural Transit & Intercity Bus - FTA Section 5311(f), and LCTOP. Staff is requesting authorization to request funding for an additional year of LCTOP funding to maintain operation. The V-LINE is considered a Fixed Route and an essential service.
The shuttle route includes stops at the Visalia Transit Center, the Visalia Airport, the Fresno Airport, Fresno State University (CSUF), and the Courthouse Park (Fresno). The last stop is a major bus transfer point for Fresno Area Express (FAX) allowing passengers access to other Fresno destinations. V-LINE operates six daily round trips (4am; 6am; 9am; 1pm; 4pm; 6:30pm for Visalia Transit Center departures) seven days per week with a one-way full fare of $10. One-way fares can be purchased on-board V-LINE shuttle buses, as well as at the Visalia Transit Center. Discounted passes are also available for students, military, and disabled riders.
The clear benefits of the V-LINE service include the following:
• Improvement of the Air Quality in the San Joaquin Valley Air Basin.
• Increased transportation options for low income, seniors, and disabled passengers.
• Meeting multi modal transportation needs with connections to other forms of transportation.
• Increased educational opportunities for students seeking higher education.
• Increased access to specialized services not readily available in Visalia.
V-LINE Funding:
The V-LINE is considered a Fixed Route but was excluded from farebox calculations for the first three years of service. To-date, it has used rider fares, 5311(f), and LCTOP to fund its operation. The V-LINE has been included in the farebox calculation beginning with the current 2019/20 Fiscal Year. With a farebox percentage of 34.2% in FY 2016/17, 42.7% in FY 2017/18, and 29.4% in FY 2018/19. In FY 2019/20, farebox ratio was at 20% since COVID-19 only affected four months of the fiscal year. The farebox ratio declined in FY 2020/21 to 11.4% FY 2021/22 to 13.3 and expected to be 19.0% in FY 2022/23. The farebox ratio requirement of 20% was exempt in FY 2020, FY 2021, FY 2022, and FY 2023 due to the pandemic. On April 8, 2020, Visalia Transit stopped collecting fares and resumed on February 1, 2021.
While the V-LINE service is eligible for state and federal funding that is typically used to operate fixed routes, the priority use of this funding is the Fixed Routes operated within the City of Visalia. For this reason, it is the intention of VT to pursue other funding sources available for this unique service to the greatest extent possible. The LCTOP which has been used to-date is allocated to all transit agencies for the implementation of new, or expansion of existing transit routes.
A request for an allocation of this funding requires only an LCTOP eligible project. In past years, several other Tulare County transit agencies have had available allocations of LCTOP funding but did not have new service implementation needs. VT has entered into swap agreements with these agencies in the past. VT traded Local Transportation Funds (LTF) for other transit agencies LCTOP allocations with VT earning a 5% administrative fee in consideration for this swap of funding. This 5% premium helped cover the administrative cost of the LCTOP filing and administration of the V-LINE program. This swap arrangement between Tulare County transit agencies increased the total transit funding for our county, as any unclaimed LCTOP is lost. This does mean that a portion of the V-LINE is funded by this reduction of City of Visalia LTF funding, as shown in Table 1: Summary of V-LINE LTF/LCTOP Swaps, below. The LCTOP amounts fluctuate from year to year. In FY 2022 and going forward, the City of Visalia no longer swapped funding since Tulare County transit agencies had projects for those funds.
As shown in Table 2: V-LINE Operational Budget below, the combination of the LCTOP received and fare sales, has covered the operational costs of the V-LINE to-date, with a portion of the current LCTOP allocation available to fund the 2022/23 operational budget. In 2020/21, V-LINE received a one-time Coronavirus Aid Relief, and Economic Security (CARES) Act allocation due to the pandemic which provided a projected positive ending balance in FY 20/21.
V-LINE Ridership:
The V-LINE service experienced a ridership growth from year to year up until FY 2020. Prior to the shutdown ordered by Governor Newsom, FY 2020 was projected to achieve a growth rate of 4.2% over the FY 2018/19 ridership and future years. With bulk purchases of tickets by CSUF, Fresno State students account for the majority of riders on the V-LINE. During COVID-19, the temporary shutdown of the CSUF campus undoubtedly affected ridership since the spring 2020 semester. Under normal conditions, peak ridership follows Fresno State class schedules. A second bus was added to some loops to accommodate the demand. VT continues to market the V-LINE for access to the Fresno airport and other destinations. Ridership data for the V-LINE is shown in Table 3: V-LINE Ridership to-date with Projections below, with projected ridership shown highlighted in yellow.
Graph 1: V-LINE Ridership to-date with Projections below.
FY 2023 information includes projections based on YTD Actuals
Fiscal Impact:
The V-LINE service is currently funded using rider fares, 5311(f), and LCTOP allocations. As the receipt of LCTOP funds for this project are uncertain going forward, the City will continue to pursue other sources of funding for the VLINE. While other funding will be sought for this service, future allocations of LTF are currently expected to be sufficient to supplement its operation as needed
Prior Council Action:
April 20th 2015 - Council authorized staff to submit an allocation request in the amount of $167,017.
March 7th 2016 - Council authorized staff to submit an allocation request in the amount of $453,483.
March 20, 2017 - Council authorized staff to submit an allocation request in the amount of $130,289.
March 19, 2018 - Council authorized staff to submit an allocation request in the amount of $380,991.
March 18, 2019 - Council authorized staff to submit an allocation request in the amount of $535,447.
April 6, 2020 - Council authorized staff to submit an allocation request in the amount of $517,709.
April 5, 2021 - Council authorized staff to submit an allocation request in the amount of $190,592
March 21, 2022 - Council authorized staff to submit an allocation request in the amount of $412,246.
Other:
N/A
Alternatives:
Do not submit an allocation request and forfeit the funds.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to approve Resolution No. 2023-09, authorizing staff to submit a grant application in the amount of $411,201 to the California Department of Transportation Low Carbon Transit Operations Program for V-LINE operations.
end
Environmental Assessment Status:
N/A
CEQA Review:
N/A
Attachments:
Resolution 2023-XX