Merger Analysis
ACTION SHEET ITEM FROM FINANCE COMMITTEE MEETING OF 10/30/17 FOR CITY COUNCIL MEETING OF 11/08/17 ISSUE: Request for Approval of Staff Recommendations for the North Central Regional Transit District and h) City of Santa Fe Transit System Consolidation Analysis Final Report. (Keith Wilson)
FINANCE COMMITTEE ACTION: Approved as consent item. FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X X X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
ACTION SHEET ITEM FROM THE PUBLIC WORKS/CIP AND LAND USE COMMITTEE MEETING OF MONDAY, OCTOBER 23, 2017
ITEM 10 NORTH CENTRAL REGIONAL TRANSIT DISTRICT 1-\ND CITY OF SANT,-\ FE TRi\NSIT SYSTEM CONSOLIDATION ANALYSIS FIN,c\L REPORT a. REQUEST FOR APPROVAL OF STAFF RECOM:tvIENDATIONS (KEITH WILSON)
PUBLIC WORKS COMMITTEE ACTION: Approved
FUNDING SOURCE:
SPECIAL CONDITIONS I AMENDMENTS I STAFF FOLLOW UP:
VOTE
FOR
AGAINST
ABSTAIN
CHAIRPERSON IVES COUNCILOR MAESTAS
X
COUNCILOR RIVERA
X
COUNCILOR TRUJILLO
X
COUNCILOR VILLARREAL
X
2
DATE:
10/24/17
TO:
Mayor and City Councilors
FROM:
Keith Wilson, Transit Grants and Administration Manager
SUBJECT:
Transit Advisory Board Recommendations
~lJ
At their meeting on October 24, 2017, the Transit Advisory Board reviewed and made a recommendation to the Governing Body to approve the following item that was approved by the Public Works Committee on October 23, 2017, and is scheduled to be considered at the October 30, 2017 Finance Committee and November 8, 2017 Governing Body Meetings: NORTH CENTRAL REGIONAL TRANSIT DISTRICT AND CITY OF SANTA FE TRANSIT SYSTEM CONSOLIDATION ANALYSIS FINAL REPORT a. REQUEST FOR APPROVAL OF STAFF RECOMMENDATIONS (KEITH WILSON)
3
SSOD1 ,PM5 • 7/95
DATE:
October 16, 2017
TO:
Public Works Committee Finance Committee Governing~
THRU:
Nicholas Schi
kft-0
FROM:
Keith Wilson, Transit Administration and Grants Mariciger Thomas Martinez, Director of Transit Operations ;(.fYl,
SUBJECT:
Direction regarding the North Central Regional Transit District and City of Santa Fe Transit System Consolidation Analysis Final Report
ITEM
The North Central Regional Transit District and City of Santa Fe Transit System Consolidation Analysis Final Report has been substantially completed. The NCRTD Board of Directors took action at their October 13, 2017 Board Meeting where they provided direction to NCRTD staff regarding the Consolidation Study. City Transit Division Staff is now looking for direction from the Governing Body on how it wishes to act on the results of the Study. BACKGROUND
At the October 13 NCRTD Board Meeting the Board of Directors reviewed and approved the following direction related to Consolidation: 1.
2. 3. 4.
5. 6.
The District's Board reconfirms its main priorities at this time based upon the Board's adopted Long Range Strategic Plan as: a. Removal of the County Transit GRT Sunset. The removal of this sunset is critically important for transit services to continue to be provided to the District's constituents in the 4-county area arid to the funding of transit services to Los Alamos County (Atomic City Transit), City of Santa· f=e (Santa Fe Trails) and the Rio Metro Regional Transit District (Rail Runner). b. · Funding and construction of the Phase I Maintenance Facility. c. Future funding and implementation of the service improvements and expansions enumerated in the NCRTD adopted Long Range Strategic Plan. Consolidation pursuant to Scenario 3 will not be considered by the District. Consolidation pursuant to Scenario 2 can be analyzed further to ascertain benefits to the District provided the City of Santa Fe committed to further exploration and serious consideration. Amendment of the Governing Documents and Voting Strengths will not be considered under any form of consolidation. The current formula allocates appropriate weight to a member's population. Further opportunities to enhance service connectivity between the NCRTD and Santa Fe Trails transit is supported by the Board of Directors. Future examination of consolidation/merger can be considered in future years, after the District resolves the GRT sunset election, if the parties believe there is merit to a new exploration.
The discussion at the NCRTD Board Meeting focused on the need for the NCRTD to work towards the SS001.PM5 · 7195
4
removal of the County Regional GRT Sunset (Item 1) while leaving the door open for future consideration of consolidation with the City's Transit Division (Item 6). On August 28, 2017, the Governing Body received a presentation on North Central Regional Transit District and City of Santa Fe Transit System Consolidation by the consultant team from Transportation Management and Design, Inc. That same day the consultant team gave a presentation to the ,NCRTD Board of Directors and held a Public Input Meeting at the Convention Center. On August 29, the consultant team held a second Public Input Meeting at the Genoveva Chavez Community Cen_ter. In April 2016, the Governing Body passed resolution 2016-29, which called for a feasibility study for transit consolidation between the City of Santa Fe and the North Central Regional Transit District (NCRTD). NCRTD obtained $120,000 in Federal Transit Administration Section 5304 funds through the New Mexico Department of Transportation to conduct the study by a consulting company. These Federal funds required a 20% local match which was to be provided equally between the City and NCRTD ($15,000 each) Through a RFP process administered by NCRTD, proposals for conducting the study were obtained and a committee comprised of City and NCRTD Staff selected Transportation Management and Design, Inc. The Study began in August 2016. ACTION REQUESTED
Based on the action taken by the NCRTD Board of Director on October 13, 2017, staff recommends the Governing Body approve the following actions related to the Consolidation Study: 1. Discontinue all work on the consolidation plan between the North Central RTD and the City of Santa Fe Transit Division. 2. Direct staff to work with the NCRTD to implement where feasible the opportunities identified in the Consolidation Study. Examples are: a. Explore allowing NCRTD to store their Santa Fe Area buses at the SFT Yard; b. Explore developing a way to communicate region-wide transit schedules on a single platform; c. Review existing services to identify opportunities for better connections between NCRTD and SFT; d. Explore the feasibility of conducting a coordinating Service Plan Study; and e. Explore ways to coordinate overlapping paratransit services. 3. Consider future evaluation of a consolidation plan if the NCRTD has successfully resolved their GRT Sunset challenges, provided both parties believe there is merit.
Attachments: North Central RTD Board of Directors October 13 Packet Material North Central RTD October 13 Press Release Resolution 2016-29
5
26
Agenda Report NCRTD Board of Directors Meeting Meeting Date: October 13, 2017 Agenda Item - D
Title: Discussion and Direction regarding the North Central Regional Transit District and City of. Santa Fe Transit System Consolidation Study Prepared By: Anthony J. Mortillaro, Executive Director Background: On February 11, 2016 the Board was informed that the Santa Fe City Manager and Finance Director had reached out to the District due to its ongoing budget challenges to discuss the following issues:
1. Whether there might be an interest in the District to consider the consolidation of the Santa Fe transit system. 2. Whether the District might be able to assist the City during a time when they have key vacancies in their management team; the City had just received the resignation of Jon Bulthuis, Transportation Director, who would be leaving as of March 14 to join Los Alamos County as Deputy Public Works Director they also have a vacancy in their Assistant Transportation Director. 3. Approximately a week later Santa Fe City Councilor Joe Maestas contacted the NCRTD Executive Director to explore on a very preliminary basis whether there might be an opportunity for the two entities to have a discussion regarding consolidation. The Executive Director indicated that NCRTD would be willing to dialogue on this topic but the Board would need to eventually have a discussion about this topic at its next meeting in March 2016 and provide further direction. was desirous of exploring opportunities for cost savings, long term financial The City of Santa staoility, efficiencies and realignment of their organization and staffing, service delivery priorities, and short and long-tem1 capital needs and infrastructure maintenance in light of fiscal challenges and current transit department vacancies. At the March 4, 2016 NCRTD Board (Board) meeting the Board approved a Letter of Intent regarding the exploration (study) of the Santa Fe Trails Transit System (City) consolidation into the North Central Regional Transit District (District). The City of Santa Fe ratified that letter at their April 13, 2016 council meeting.
6
The underlying basis for entering into the Letter of Intent was supported by numerous documents providing a basis for these discussions or suggestions for exploration of transit collaboration and/or consolidation: 1.
Intergovenunental Contract (IGC) Appendix "D" entered into by the City and District provides for a number of initiatives and in particular the following:
a.
2.
3.
In the interest of a coordinated, expanded regional public transit service network, the District will pursue management of the following transit programs, project and services: i. Coordinated, integrated, consolidated and expanded local bus service wherever possible; ii. Plan for the operation, coordination, and expansion of regional and local public transit services within the boundaries of the District.
The Regional Transit Act adopted in 2003 encourages the following: a.
Governmental units to contract with one another to provide any function, service or facility lawfully authorized to each and provide for the joint exercise of the · function, service or facility including the establishment of a separate legal entity to do so;
b.
Serve the public by providing for the creation of regional networks of safe and efficient public transit services.
The Santa Fe Metropolitan Public Transit Master Plan adopted on June 25, 2015 by the Santa Fe MPO Transportation Policy Board provided for the following among other goals and objectives: a. b.
Overarching Goal 3: increase the cost effectiveness and efficiency of service · delivery; Goal 1: Have all services function as one overall seamless transit network.
In July 2016, the Board awarded the contract to conduct the Transit System Merger/Consolidation Analysis to Transportation Management & Design (TMD). The subconsultants working with TMD arc Felsburg, Holt, and Ullcvig (FHU) and Rosemary Romero Consulting. On August 28, 2017, a presentation was made to the Board and then later in the afternoon a similar presentation was provided to the Santa Fe City Council. Two (2) public presentations were also conducted on August 28 and 29 in Santa Fe. TMD has completed the following: • Task 1, Study Consensus Building and Pre-Study External stake holder engagement • Task 2, Evaluation of Current Operations which was inclusive of a financial, physical asset, labor force, service and para transit, dial-a-ride and demand response system evaluations. • Task 3, Development and Evaluation of proposed consolidation options which was inclusive of financial, physical asset, labor force and service comparisons. • Task 4, guidance and implementation document and will include the final consolidation assessment plan. • Public meeting input ham>
>JWt.1>
'ff!!'"'~.,,..,,= il:t •',
I
LETTER OF INTENT BETWEEN THE NORTH CENTRAL REGIONAL TRANSIT DISTRICT (DISTRICT) AND THE CITY OF SANTA FE (CITY) COLLECTIVELY KNOWN AS THE , PARTIES REGARDING THE ANALYSIS AND THE FEASABILITY OF A CONSOLIDATED TRANSIT SYSTEM. Whereas, the District and the City both operate separate transit systems serving within the City of Santa Fe; and Whereas, the District and the City have an interest in working to identify opportunities to achieve increased coordination, cost efficiencies and consolidation of the City system by the District; and Whereas, the District annually contributes funding in excess of $950,000.00 to the City for services operated by the City deemed to be regional in nature as defined in the District's Financial Policies; and Whereas, the City currently levies a Y. cent Municipal Gross Receipts tax which is dedicated to the
public bus system and quality of life purposes of which approximately 62% is historically allocated to the public bus system; and Whereas, the Parties desire to express their intent regarding exploration of the feasibility of a consolidation with this letter of intent indicating a commitment to funding the analysis regarding a consolidation and to in good faith explore the recommendations contained within such study;
NOW, THEREFORE, THE DISTRICT AND CITY HEREBY AGREE AS FOLLOWS:
The City and District agree, to further explore the feasibility of consolidating the Santa Fe transit system into the District, with a goal of achieving uninterrupted and seamlc:ss service in 2016, if the follo..ying -· conditions are met: A. The District will request $150,000.00 in federal Transit Administration (FT A) Section 5304
B.
C. D.
L.
.Planning funds through the New Mexico Department of Transportation (NM DOT). The funding being sought is for the explicit purpose of retaining a firm to analyze the possibility of a consolidation of the City transit system into the District. If such FTA funds arc awarded a matching requirement of 20% is required. The District will contribute the 20% matching fonds requirement. The City will pay to the District an amount equal to 50% of the matching funds requirement upon receipt of an invoice from the District. The District as the recipient of said funds will enter into all agreements required by the NMDOT. The District will prepare all Request for Proposuls, Scope of Work and all other pertinent documents for solicitation of consultants for the consolidation study. The City will provide review and input into the solicitation documents. The solicitation will occur pursuant to the District's procurement rules and regulations and pursuant to FTA requirements. The District and City will be participants in the selection of a qualified proposer for the study.
EXHIBIT
A 16
F. The District will enter into a contract with the successful proposer. G. The District and City agree that in the event that a consolidation is recommended and the Parties agree to pursue such consolidation, that the fonn of Governance will be pursuant to the Intergovernmental Contract (lGC) currently in existence between the Parties and the other Thirteen ( 13) members of the District pursuant to the Regional Transit Act. H. The City and District agree and acknowledge that this document is a Jetter of intent. The Parties agree to enter into this letter of intent in good faith to explore consolidation of the City transit system into the District subject to the conditions outlined above; however, if unforeseen or changing legal or financial conditions preclude the ability of either the City or the District to agree to a consolidation as contemplated herein, or if the necessary approval(s) are not obtained, then this document shall be of no further force and effect upon the notification of one party to the other. This letter of intent is entered into as authorized by the Santa Fe City Council and the North Central Regional Transit District Board of Directors.
For the District:
Daniel Barrone Chainnan
Date For the City: Javier Gonzales Mayor
Date
17
FINANCE COMMITTEE ACTION: Approved as consent item. FUNDING SOURCE: SPECIAL CONDITIONS OR AMENDMENTS
STAFF FOLLOW-UP:
VOTE COUNCILOR VILLARREAL COUNCILOR IVES COUNCILOR LINDELL COUNCILOR HARRIS
FOR
AGAINST
ABSTAIN
X X X X
CHAIRPERSON DOMINGUEZ 4-13-17
1
ACTION SHEET ITEM FROM THE PUBLIC WORKS/CIP AND LAND USE COMMITTEE MEETING OF MONDAY, OCTOBER 23, 2017
ITEM 10 NORTH CENTRAL REGIONAL TRANSIT DISTRICT 1-\ND CITY OF SANT,-\ FE TRi\NSIT SYSTEM CONSOLIDATION ANALYSIS FIN,c\L REPORT a. REQUEST FOR APPROVAL OF STAFF RECOM:tvIENDATIONS (KEITH WILSON)
PUBLIC WORKS COMMITTEE ACTION: Approved
FUNDING SOURCE:
SPECIAL CONDITIONS I AMENDMENTS I STAFF FOLLOW UP:
VOTE
FOR
AGAINST
ABSTAIN
CHAIRPERSON IVES COUNCILOR MAESTAS
X
COUNCILOR RIVERA
X
COUNCILOR TRUJILLO
X
COUNCILOR VILLARREAL
X
2
DATE:
10/24/17
TO:
Mayor and City Councilors
FROM:
Keith Wilson, Transit Grants and Administration Manager
SUBJECT:
Transit Advisory Board Recommendations
~lJ
At their meeting on October 24, 2017, the Transit Advisory Board reviewed and made a recommendation to the Governing Body to approve the following item that was approved by the Public Works Committee on October 23, 2017, and is scheduled to be considered at the October 30, 2017 Finance Committee and November 8, 2017 Governing Body Meetings: NORTH CENTRAL REGIONAL TRANSIT DISTRICT AND CITY OF SANTA FE TRANSIT SYSTEM CONSOLIDATION ANALYSIS FINAL REPORT a. REQUEST FOR APPROVAL OF STAFF RECOMMENDATIONS (KEITH WILSON)
3
SSOD1 ,PM5 • 7/95
DATE:
October 16, 2017
TO:
Public Works Committee Finance Committee Governing~
THRU:
Nicholas Schi
kft-0
FROM:
Keith Wilson, Transit Administration and Grants Mariciger Thomas Martinez, Director of Transit Operations ;(.fYl,
SUBJECT:
Direction regarding the North Central Regional Transit District and City of Santa Fe Transit System Consolidation Analysis Final Report
ITEM
The North Central Regional Transit District and City of Santa Fe Transit System Consolidation Analysis Final Report has been substantially completed. The NCRTD Board of Directors took action at their October 13, 2017 Board Meeting where they provided direction to NCRTD staff regarding the Consolidation Study. City Transit Division Staff is now looking for direction from the Governing Body on how it wishes to act on the results of the Study. BACKGROUND
At the October 13 NCRTD Board Meeting the Board of Directors reviewed and approved the following direction related to Consolidation: 1.
2. 3. 4.
5. 6.
The District's Board reconfirms its main priorities at this time based upon the Board's adopted Long Range Strategic Plan as: a. Removal of the County Transit GRT Sunset. The removal of this sunset is critically important for transit services to continue to be provided to the District's constituents in the 4-county area arid to the funding of transit services to Los Alamos County (Atomic City Transit), City of Santa· f=e (Santa Fe Trails) and the Rio Metro Regional Transit District (Rail Runner). b. · Funding and construction of the Phase I Maintenance Facility. c. Future funding and implementation of the service improvements and expansions enumerated in the NCRTD adopted Long Range Strategic Plan. Consolidation pursuant to Scenario 3 will not be considered by the District. Consolidation pursuant to Scenario 2 can be analyzed further to ascertain benefits to the District provided the City of Santa Fe committed to further exploration and serious consideration. Amendment of the Governing Documents and Voting Strengths will not be considered under any form of consolidation. The current formula allocates appropriate weight to a member's population. Further opportunities to enhance service connectivity between the NCRTD and Santa Fe Trails transit is supported by the Board of Directors. Future examination of consolidation/merger can be considered in future years, after the District resolves the GRT sunset election, if the parties believe there is merit to a new exploration.
The discussion at the NCRTD Board Meeting focused on the need for the NCRTD to work towards the SS001.PM5 · 7195
4
removal of the County Regional GRT Sunset (Item 1) while leaving the door open for future consideration of consolidation with the City's Transit Division (Item 6). On August 28, 2017, the Governing Body received a presentation on North Central Regional Transit District and City of Santa Fe Transit System Consolidation by the consultant team from Transportation Management and Design, Inc. That same day the consultant team gave a presentation to the ,NCRTD Board of Directors and held a Public Input Meeting at the Convention Center. On August 29, the consultant team held a second Public Input Meeting at the Genoveva Chavez Community Cen_ter. In April 2016, the Governing Body passed resolution 2016-29, which called for a feasibility study for transit consolidation between the City of Santa Fe and the North Central Regional Transit District (NCRTD). NCRTD obtained $120,000 in Federal Transit Administration Section 5304 funds through the New Mexico Department of Transportation to conduct the study by a consulting company. These Federal funds required a 20% local match which was to be provided equally between the City and NCRTD ($15,000 each) Through a RFP process administered by NCRTD, proposals for conducting the study were obtained and a committee comprised of City and NCRTD Staff selected Transportation Management and Design, Inc. The Study began in August 2016. ACTION REQUESTED
Based on the action taken by the NCRTD Board of Director on October 13, 2017, staff recommends the Governing Body approve the following actions related to the Consolidation Study: 1. Discontinue all work on the consolidation plan between the North Central RTD and the City of Santa Fe Transit Division. 2. Direct staff to work with the NCRTD to implement where feasible the opportunities identified in the Consolidation Study. Examples are: a. Explore allowing NCRTD to store their Santa Fe Area buses at the SFT Yard; b. Explore developing a way to communicate region-wide transit schedules on a single platform; c. Review existing services to identify opportunities for better connections between NCRTD and SFT; d. Explore the feasibility of conducting a coordinating Service Plan Study; and e. Explore ways to coordinate overlapping paratransit services. 3. Consider future evaluation of a consolidation plan if the NCRTD has successfully resolved their GRT Sunset challenges, provided both parties believe there is merit.
Attachments: North Central RTD Board of Directors October 13 Packet Material North Central RTD October 13 Press Release Resolution 2016-29
5
26
Agenda Report NCRTD Board of Directors Meeting Meeting Date: October 13, 2017 Agenda Item - D
Title: Discussion and Direction regarding the North Central Regional Transit District and City of. Santa Fe Transit System Consolidation Study Prepared By: Anthony J. Mortillaro, Executive Director Background: On February 11, 2016 the Board was informed that the Santa Fe City Manager and Finance Director had reached out to the District due to its ongoing budget challenges to discuss the following issues:
1. Whether there might be an interest in the District to consider the consolidation of the Santa Fe transit system. 2. Whether the District might be able to assist the City during a time when they have key vacancies in their management team; the City had just received the resignation of Jon Bulthuis, Transportation Director, who would be leaving as of March 14 to join Los Alamos County as Deputy Public Works Director they also have a vacancy in their Assistant Transportation Director. 3. Approximately a week later Santa Fe City Councilor Joe Maestas contacted the NCRTD Executive Director to explore on a very preliminary basis whether there might be an opportunity for the two entities to have a discussion regarding consolidation. The Executive Director indicated that NCRTD would be willing to dialogue on this topic but the Board would need to eventually have a discussion about this topic at its next meeting in March 2016 and provide further direction. was desirous of exploring opportunities for cost savings, long term financial The City of Santa staoility, efficiencies and realignment of their organization and staffing, service delivery priorities, and short and long-tem1 capital needs and infrastructure maintenance in light of fiscal challenges and current transit department vacancies. At the March 4, 2016 NCRTD Board (Board) meeting the Board approved a Letter of Intent regarding the exploration (study) of the Santa Fe Trails Transit System (City) consolidation into the North Central Regional Transit District (District). The City of Santa Fe ratified that letter at their April 13, 2016 council meeting.
6
The underlying basis for entering into the Letter of Intent was supported by numerous documents providing a basis for these discussions or suggestions for exploration of transit collaboration and/or consolidation: 1.
Intergovenunental Contract (IGC) Appendix "D" entered into by the City and District provides for a number of initiatives and in particular the following:
a.
2.
3.
In the interest of a coordinated, expanded regional public transit service network, the District will pursue management of the following transit programs, project and services: i. Coordinated, integrated, consolidated and expanded local bus service wherever possible; ii. Plan for the operation, coordination, and expansion of regional and local public transit services within the boundaries of the District.
The Regional Transit Act adopted in 2003 encourages the following: a.
Governmental units to contract with one another to provide any function, service or facility lawfully authorized to each and provide for the joint exercise of the · function, service or facility including the establishment of a separate legal entity to do so;
b.
Serve the public by providing for the creation of regional networks of safe and efficient public transit services.
The Santa Fe Metropolitan Public Transit Master Plan adopted on June 25, 2015 by the Santa Fe MPO Transportation Policy Board provided for the following among other goals and objectives: a. b.
Overarching Goal 3: increase the cost effectiveness and efficiency of service · delivery; Goal 1: Have all services function as one overall seamless transit network.
In July 2016, the Board awarded the contract to conduct the Transit System Merger/Consolidation Analysis to Transportation Management & Design (TMD). The subconsultants working with TMD arc Felsburg, Holt, and Ullcvig (FHU) and Rosemary Romero Consulting. On August 28, 2017, a presentation was made to the Board and then later in the afternoon a similar presentation was provided to the Santa Fe City Council. Two (2) public presentations were also conducted on August 28 and 29 in Santa Fe. TMD has completed the following: • Task 1, Study Consensus Building and Pre-Study External stake holder engagement • Task 2, Evaluation of Current Operations which was inclusive of a financial, physical asset, labor force, service and para transit, dial-a-ride and demand response system evaluations. • Task 3, Development and Evaluation of proposed consolidation options which was inclusive of financial, physical asset, labor force and service comparisons. • Task 4, guidance and implementation document and will include the final consolidation assessment plan. • Public meeting input ham>
>JWt.1>
'ff!!'"'~.,,..,,= il:t •',
I
LETTER OF INTENT BETWEEN THE NORTH CENTRAL REGIONAL TRANSIT DISTRICT (DISTRICT) AND THE CITY OF SANTA FE (CITY) COLLECTIVELY KNOWN AS THE , PARTIES REGARDING THE ANALYSIS AND THE FEASABILITY OF A CONSOLIDATED TRANSIT SYSTEM. Whereas, the District and the City both operate separate transit systems serving within the City of Santa Fe; and Whereas, the District and the City have an interest in working to identify opportunities to achieve increased coordination, cost efficiencies and consolidation of the City system by the District; and Whereas, the District annually contributes funding in excess of $950,000.00 to the City for services operated by the City deemed to be regional in nature as defined in the District's Financial Policies; and Whereas, the City currently levies a Y. cent Municipal Gross Receipts tax which is dedicated to the
public bus system and quality of life purposes of which approximately 62% is historically allocated to the public bus system; and Whereas, the Parties desire to express their intent regarding exploration of the feasibility of a consolidation with this letter of intent indicating a commitment to funding the analysis regarding a consolidation and to in good faith explore the recommendations contained within such study;
NOW, THEREFORE, THE DISTRICT AND CITY HEREBY AGREE AS FOLLOWS:
The City and District agree, to further explore the feasibility of consolidating the Santa Fe transit system into the District, with a goal of achieving uninterrupted and seamlc:ss service in 2016, if the follo..ying -· conditions are met: A. The District will request $150,000.00 in federal Transit Administration (FT A) Section 5304
B.
C. D.
L.
.Planning funds through the New Mexico Department of Transportation (NM DOT). The funding being sought is for the explicit purpose of retaining a firm to analyze the possibility of a consolidation of the City transit system into the District. If such FTA funds arc awarded a matching requirement of 20% is required. The District will contribute the 20% matching fonds requirement. The City will pay to the District an amount equal to 50% of the matching funds requirement upon receipt of an invoice from the District. The District as the recipient of said funds will enter into all agreements required by the NMDOT. The District will prepare all Request for Proposuls, Scope of Work and all other pertinent documents for solicitation of consultants for the consolidation study. The City will provide review and input into the solicitation documents. The solicitation will occur pursuant to the District's procurement rules and regulations and pursuant to FTA requirements. The District and City will be participants in the selection of a qualified proposer for the study.
EXHIBIT
A 16
F. The District will enter into a contract with the successful proposer. G. The District and City agree that in the event that a consolidation is recommended and the Parties agree to pursue such consolidation, that the fonn of Governance will be pursuant to the Intergovernmental Contract (lGC) currently in existence between the Parties and the other Thirteen ( 13) members of the District pursuant to the Regional Transit Act. H. The City and District agree and acknowledge that this document is a Jetter of intent. The Parties agree to enter into this letter of intent in good faith to explore consolidation of the City transit system into the District subject to the conditions outlined above; however, if unforeseen or changing legal or financial conditions preclude the ability of either the City or the District to agree to a consolidation as contemplated herein, or if the necessary approval(s) are not obtained, then this document shall be of no further force and effect upon the notification of one party to the other. This letter of intent is entered into as authorized by the Santa Fe City Council and the North Central Regional Transit District Board of Directors.
For the District:
Daniel Barrone Chainnan
Date For the City: Javier Gonzales Mayor
Date
17
