Santa Clara Valley Transportation Authority
MEMORANDUM
TO:
Santa Clara Valley Transportation Authority
Board of Directors
FROM:
Peter M. Cipolla
General Manager
DATE:
January 30, 2004
SUBJECT:
MTC Issues
Over the past several years, Metropolitan Transportation Commission (MTC) staff (particularly) has pursued an apparent agenda that has become increasingly troublesome for VTA, as well as for many of the other Congestion Management Agencies (CMAs) and Public Transit Operators in the region. The situation became even more exacerbated these past several months, as was noted in my recent correspondence to MTC Executive Director Steve Heminger (attached).
Through the development of the 2004 Regional Transportation Plan (RTP), MTC is once again pursuing an objective of taking a higher percentage of future funds projected to be allocated to the Bay Area "off the top" for commission-controlled programs and projects, leaving a smaller percentage of funds available for the CMAs to program for critical local priorities. By directly programming more and more of the revenues coming into the Bay Area, MTC is essentially restricting the ability of the CMAs to effectively solve local transportation problems.
Of even greater concern, several of MTC' s recently proposed policies would further restrict the fair and equitable distribution of federal transit formula dollars generated from and allocated to the San Jose urbanized area (UZA), severely jeopardizing VTA' s ability to meet our highest priority of preserving the maximum amount of public transit service.
Although there have been issues between MTC, and the CMAs and Public Transit Operators in the region in the past that have managed to work themselves out, these recent courses of action are so alarming that we believe it is necessary for the Board of Directors to discuss and explore whether it would be in the best interests of VTA and the communities in Santa Clara County to begin to take steps to maximize local control over funds generated by and/or allocated to our county.
To assist the Board of Directors in this discussion, this memo and accompanying attachments have been prepared to provide background information on the organizational structure and responsibilities of MTC, which are defined in both state and federal law, as well as two options for rethinking VTA's relationship with MTC, both of which would require the enactment of legislation at the state level.
MTC'S ROLES AND RESPONSIBILITIES
In 1971, MTC was created by state legislation to serve as the Regional Transportation Planning Agency (RTPA) for the nine-county San Francisco Bay Area. Under state law, the commission consists of 16 voting members and 3 ex-officio members, as follows:
Five Largest Counties:
Alameda -2 voting members
Contra Costa -2 voting members
San Francisco -2 voting members
San Mateo -2 voting members
Santa Clara - 2 voting members
Four Smallest Counties:
Marin - 1 voting member
Napa - 1 voting member
Solano - 1 voting member
Sonoma - 1 voting member
Other Voting Members:
Association of Bay Area Governments (ABAG) - 1 voting member
San Francisco Bay Conservation & Development Commission - 1 voting member
Ex-Officio Members (Non-Voting):
California Business, Transportation and Housing Agency - 1 non-voting member
U.S. Department of Transportation - 1 non-voting member
U.S. Department of Housing and Urban Development - 1 non-voting member
It is important to point out that Santa Clara County is severely underrepresented on MTC. Although Santa Clara County's population is more than 25 percent of the region's total population, it holds only two out of 16 voting seats on the commission (12.5 percent). The commission's structural inequities do not always serve Santa Clara County well.
Pursuant to its enabling statutes and other applicable state laws, MTC, as the Bay Area's designated RTPA, is responsible for preparing and adopting the Regional Transportation Plan (RTP), and for programming state funds that are allocated to the region. This includes State Transportation Improvement Program (STIP), State Transit Assistance Program (STA), and Transportation Development Act (TDA) dollars. In the case of the latter, revenues generated by the TDA quarter-cent sales tax in Santa Clara County are allocated to MTC. Each year, VTA must submit a claim to MTC for these funds, which must be formally approved by the commission. However, VTA does not receive all of the TDA revenues generated in Santa Clara County; 3 percent remains with MTC to help fund regional planning activities.
Pursuant to federal law, a Metropolitan Planning Organization (MPO) must be designated for each urbanized area (UZA) exceeding 50,000 residents. Historically, the federal requirement for urban planning emerged under the Federal Aid Highway Act of 1962, largely in response to the construction of the Interstate Highway System, and the planning of routes through and around urban areas. The Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 and the Transportation Equity Act for the 21 Century (TEA-21) continued the requirements for urban planning, while enacting several minor changes with respect to how MPOs are to be designated.
Under current federal law, MPOs are designated one of two ways: (1) through an agreement of the Governor and units of general purpose local government together representing at least 75 percent of the affected population, including the central city or cities; or (2) in accordance with procedures established in applicable state or local law. Existing MPO designations remain valid unless revoked or until a new MPO is re-designated, using the same process.
MTC is the designated MPO for the Bay Area. This came about not through a formal designation process, but rather because MTC was already serving as the regional planning agency for the nine Bay Area counties when ISTEA was enacted. ISTEA included a provision "grandfathering" all such entities as MPOs.
Under federal law, MTC's responsibilities as the region's MPO fall into the following three basic categories:
1.
Preparing and periodically updating a long-range transportation plan: This function largely replicates the responsibilities that are specified under MTC's enabling statutes.
2.
Performing air quality conformity functions pursuant to the federal Clean Air Act: In metropolitan areas that are designated as "non-attainment" or "maintenance" areas for ozone or carbon monoxide under the Clean Air Act, the MPO is required to develop an implementation plan consisting of transportation control measures to ensure conformity with federal air quality standards. In addition, the long-range transportation plan for the metropolitan area must be analyzed in terms of its impacts on federal air quality standards. As the MPO for the Bay Area, MTC performs these functions.
3.
Developing and adopting a Transportation Improvement Program (TIP), which includes a priority list of proposed federally supported projects: As the MPO for the Bay Area, MTC prepares the TIP for the nine counties in the region. Any project seeking federal funding participation must be included in the TIP. This means that MTC is responsible for programming all federal flexible funds-i.e., Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) funds and federal transit formula funds-i.e. Section 5307 UZA Formula Program and Section 5309 Fixed Guideway Modernization Program funds-that are allocated to the region. In the latter case, federal transit formula funds are allocated according to federally designated UZAs. Under the most recent federal census, there are 11 such UZAs in our nine-county region. Two are in Santa Clara County-the San Jose UZA and the Morgan Hill/Gilroy UZA.
Over the years, MTC has sought and been granted through the enactment of state legislation additional responsibilities beyond those that are typically performed by RTPAs and MPOs. For example, MTC serves as the Bay Area Toll Authority (BATA). As such, the commission administers the current toll revenues generated by the seven state-owned toll bridges in the region and will be responsible for administering the $1 toll increase proposed by Regional Measure 2, if the voters approve it on March 2, 2004.
MTC also serves as the Bay Area's Service Authority for Freeways and Expressways (SAFE). In this capacity, MTC utilizes a $1 annual vehicle registration fee in participating counties, as well as federal and state funds, to administer the Freeway Service Patrol and Emergency Callbox Programs in the region.
Finally, MTC has been statutorily granted numerous transit-related functions, including: (a) developing regional transit service objectives, and performance measures of efficiency and effectiveness; (b) conducting audits of Bay Area Public Transit Operators; (c) specifying uniform data requirements to assess public transit benefits and costs; (d) adopting rules and regulations to promote coordination of fares and schedules of Bay Area Public Transit Operators; (e) identifying functions performed by individual Bay Area Public Transit Operators that could be consolidated; and (f) identifying service coordination and improvements in transit corridors of regional significance.
Attachment 1 summarizes the federal- and state-mandated roles and responsibilities of MTC.
HOW THINGS WORK IN SOUTHERN CALIFORNIA
The relationship between regional and local transportation organizations in Southern California is markedly different from that which exists in the Bay Area. Although the Southern California Association of Governments (SCAG) is the designated MPO and RTPA, its role is limited to regional planning and air quality conformity activities. Programming responsibilities lie in the hands of statutorily created "County Transportation Commissions"-the Los Angeles County Metropolitan Transportation Authority (LACMTA), the Orange County Transportation Authority (OCTA), the Riverside County Transportation Commission (RCTC), the San Bernardino Associated Governments (SanBAG), and the Ventura County Transportation Commission.
Through the adoption of Transportation Improvement Programs, the County Transportation Commissions program STIP, STP, CMAQ, and federal transit formula funds that are allocated to their counties. Although these Transportation Improvement Programs are required to be submitted to SCAG, its role is limited to reviewing them to ensure that there are no significant conflicts between recommended programs or with the adopted RTP. If a conflict does exist, SCAG cannot unilaterally dictate the outcome; state law requires that the resolution of any such conflict come about through a cooperative effort on the part of the affected commissions and SCAG. If an impasse is reached, then the California Transportation Commission (CTC) resolves the conflict. In the case of TDA and STA, the County Transportation Commissions have separate statutory authority to allocate these funds.
Attachment 2 summarizes the relationship between SCAG and the County Transportation Commissions.
RECENT TRENDS IN THE BAY AREA
Since the enactment of ISTEA, MTC has continuously assumed additional responsibilities, evolving from being purely a planning organization, as was originally envisioned, to more of a program administrator and project implementer. In the former case, MTC has pursued taking more funding "off the top" for programs directly administered by the commission, a trend that is
leaving fewer and fewer dollars on the table for Bay Area CMAs to program for local needs. For this purpose, MTC primarily is utilizing STP, CMAQ and STA Proposition 42 dollars, which do not have the same county share requirements as STIP funds do. Under MTC-administered programs, the commission solicits projects from local entities and then decides which projects will receive funding without necessarily adhering to any guidelines for geographic equity. Current examples include the Transportation for Livable Communities Program (TLC), the Housing Incentive Program (HIP), the Low-Income Flexible Transportation Program (LIFT), the Regional Express Bus Program, and the Traffic Engineering Technical Assistance Program (TETAP). As part of the development of the 2004 RTP, MTC is proposing to create even more commission-administered programs, including a Regional Bicycle Program and a Lifeline Transit Service Program.
As a whole, only $3.5 billion out of the $8.8 billion identified by MTC as uncommitted funds in the 2004 RTP, or 40 percent, is being proposed to be allocated to the CMAs for county distribution. By comparison, $3.7 billion out of the $7.4 billion identified by MTC as uncommitted funds in the 2001 RTP, or 51 percent, was allocated to the CMAs for county distribution. For the 2004 RTP, it appears that VTA will have $1.081 billion available to allocate to VTP 2030 program areas at its discretion. In the case of the 2001 RTP, VTA had $1.157 billion available for distribution to VTP 2020 program areas. However, the 2001 RTP did not include Proposition 42 dollars, since the ballot measure was passed by the voters after the 2001 RTP was adopted.
In the latter case, MTC has taken on the role of project sponsor, competing directly with the CMAs for regional discretionary funds that the commission currently has responsibility for programming. Not surprisingly, MTC-sponsored projects tend to receive funding with more regularity. Examples include TransLink, Travlnfo and the Freeway Service Patrol.
Particularly problematic for VTA is MTC's new "regional model" approach for programming federal Section 5307 UZA Formula Program and Section 5309 Fixed Guideway Modernization Program funds generated by the San Jose UZA. This approach has the effect of using federal transit formula funds that are allocated to the San Jose UZA for a portion of Caltrain project costs that, under the terms of the Caltrain Joint Powers Agreement (JPA), should be funded by our two partners in the San Francisco UZA. This allows operators in the San Francisco UZA to fund more of their projects, while "crowding out" both the $15 million per year that VTA's longterm funding plan requires for preventive maintenance and our critical station platform retrofit project that is needed to effectively serve our light rail customers.
These trends are indicative of an organizational evolution, under which MTC is moving more and more toward directing where funds must be spent, rather than playing the role of a facilitator and consensus-builder. Over the long term, this direction will negatively impact the ability of Bay Area CMAs and Public Transit Operators, including VTA, to engage in effective financial planning at the local level.
OPTIONS:
If the Board of Directors decides that VTA should pursue an effort to maximize local programming control over state and federal funds generated by and allocated to our county, then there are two options to consider. VTA could seek to become the MPO for the UZAs within Santa Clara County. This could be achieved either through the rather confusing MPO designation process specified in federal law or through state legislation. However, it is important to point out that "MPO" is a federal designation and does not carry with it the responsibility for programming state funds. Therefore, state legislation also would be needed to designate VTA as the RTPA for Santa Clara County to accomplish this purpose.
Under this option, VTA would assume all planning and programming functions for our county that currently are performed by MTC. In general, VTA would become responsible for: (a) developing and adopting an RTP for our county; (b) performing air quality conformity functions pursuant to the federal Clean Air Act, including the development of transportation control measures; and (c) programming all state and federal funds that flow to our county. MTC would continue to administer the Freeway Service Patrol and Emergency Callbox Programs, unless the county Board of Supervisors and the city councils representing a majority of the population in the county adopt a resolution to have VTA become the SAFE in our area instead. Although this option would put VTA in control of both planning and programming functions, it does bring along with it additional federal requirements and obligations, particularly as they relate to air quality conformity and other Clean Air Act mandates.
The other option is to pursue state legislation to substantially model the relationship that exists in Southern California. Under this option, VTA would continue to be part of the MTC region, with MTC performing regional planning and air quality conformity functions. However, VTA, similar to the County Transportation Commissions in Southern California, would assume the responsibility for programming all state and federal funds that flow to Santa Clara County, with MTC playing a limited oversight role in terms of ensuring consistency with the RTP and the programming of funds in the other Bay Area counties. Under this option, VTA would achieve the goal of exercising much greater programming control, within the framework established by MTC's RTP, but would not have to take on the additional complicated responsibilities associated with federal air quality conformity requirements.
Attachment 3 summarizes these two options. In general, the difference between them stems from a policy consideration as to how much of MTC's current responsibilities the Board of Directors would feel comfortable trying to assume, if any.
At this point, we offer these concepts for discussion purposes only. We would urge further and more in-depth discussion at our next Board Workshop.
ATTACHMENT 1
ROLE OF THE METROPOLITAN TRANSPORTATION COMMISSION (MTC)
FEDERAL AND STATE MANDATED ACTIVITIES
PLANNING
o Prepares/adopts an Overall Work Program (OWP), providing a comprehensive overview of regional planning in the Bay Area.
o Prepares/adopts a Regional Transportation Plan (RTP).
o Develops transportation control measures for air quality purposes.
o Prepares guidelines for the development of county transportation plans.
o Develops an emergency transportation system management plan.
PROGRAMMING
o Prepares/adopts a Regional Transportation Improvement Program (RTIP) that programs the regions transit, highway and general aviation funds allocated by the California Transportation Commission (CTC).
o Prepares/adopts a federal Transportation Improvement Program (TIP) that programs highway and transit projects seeking federal funds.
o Establishes the Regional Transit Capital Priorities List, which represents a five-year program of capital improvements for Bay Area transit operators.
o Programs federal Surface Transportation Program (STP) and Congestion Management and Air Quality Improvement Program (CMAQ) funds.
FUND ALLOCATION/ADMINISTRATION
o Allocates State Transit Assistance Program (STA) funds to Bay Area transit operators.
o Administers and allocates Transportation Development Act (TDA) funds to counties, including Articles 4 Public Transit, 4.5 Paratransit, 3 Pedestrian and Bicycles, and 8 in rural counties for streets/roads.
o Conducts hearings for Unmet Transit Needs in rural counties regarding the allocation of TDA funds for streets/roads.
o Designated as the recipient of federal Section 5307 Urbanized Area (UZA) Formula Program funds for the urbanized areas in the Bay Area.
o Designated as the recipient of federal Section 5309 Fixed Guideway Modernization Program funds for the urbanized areas in the Bay Area.
TRANSIT
o Conducts audits of Bay Area transit operators.
o Develops regional transit service objectives, and performance measures of efficiency and effectiveness.
o Specifies uniform data requirements to assess public transit benefits and costs.
o Prepares/adopts rules and regulations to promote the coordination of fares and schedules of Bay Area transit operators.
o May identify functions performed by individual Bay Area transit operators that could be consolidated.
o May recommend service coordination and improvements in transit corridors of regional significance.
OTHER AUTHORITY
o Designated as the Metropolitan Planning Organization (MPO) for the Bay Area.
o Reviews and approves transportation projects receiving federal and state funds consistent with the Regional Transportation Plan (RTP).
o Designated as the Bay Area Toll Authority (BATA) and, as such, implements Regional Measure 1 and other programs related to the state-owned toll bridges in the Bay Area. Also in its role as BATA, MTC will implement Regional Measure 2, if approved by the voters on March 2, 2004.
o Designated as the regional Safe Authority for Freeway Emergencies (SAFE) and, as such, implements the Emergency Callbox and Freeway Service Patrol Programs in the Bay Area.
o Formulates procedures for establishing regional transportation priorities in the allocation of transportation funds.
1.
MTC is a statutorily created Metropolitan Planning Organization (MPO) under Government Code Section 66500, and provides comprehensive regional transportation planning for the nine-county Bay Area.
2.
MTC has 19 members (16 voting and 3 non-voting) appointed by local governmental agencies throughout the region. The non-voting members provide policy ties to state and federal planning entities.
3.
MTC provides the continuing, cooperative and comprehensive planning process required by federal regulations in an urbanized area as a condition for receiving federal funds.
ATTACHMENT 2
ROLE OF THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) AND COUNTY TRANSPORTATION COMMISSIONS FEDERAL AND STATE MANDATED ACTIVITIES
PLANNING
o Prepares/adopts an Overall Work Program (OWP), providing a comprehensive overview of regional planning in Southern California. SCAG
o Prepares/adopts a Regional Transportation Plan (RTP). SCAG
o Develops transportation control measures for air quality purposes. SCAG
PROGRAMMING
o Prepares/adopts a Transportation Improvement Program that programs transit, highway and general aviation projects for State Transportation Improvement Program (STIP) funds allocated by the California Transportation Commission (CTC), and that programs highway and transit projects seeking federal funds. COMMISSIONS
o Programs federal Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ) funds. COMMISSIONS
o Reviews and comments on Transportation Improvement Programs prior to adoption by the commissions. SCAG
o May revise Transportation Improvement Programs submitted by the commissions to resolve conflicts between recommended programs or with the adopted Regional Transportation Plan (RTP). SCAG
FUND ALLOCATION/ ADMINISTRATION
o Allocates State Transit Assistance Program (STA) funds to local transit operators. COMMISSIONS
o Administers and allocates Transportation Development Act (TDA) funds, including Articles 4 Public Transit, 4.5 Paratransit, 3 Pedestrian and Bicycles, and 8 for rural streets/roads. COMMISSIONS
o Allocates federal Section 5307 Urbanized Area (UZA) Formula Program funds for the urbanized areas within its jurisdiction. COMMISSIONS
o Allocates federal Section 5309 Fixed Guideway Modernization Program funds for the urbanized areas within its jurisdiction. COMMISSIONS
OTHER AUTHORITY
o Designated as the Metropolitan Planning Organization (MPO) for the Southern California region. SCAG
o Designated as the Safe Authority for Freeway Emergencies (SAFE) and, as such, implements the Emergency Callbox and Freeway Service Patrol Programs. COMMISSIONS
o Develops expenditure plans for local transportation sales tax programs. COMMISSIONS
o Coordinates the operation of public transportation services to achieve operating efficiencies and resolve jurisdictional disputes between public transit operators. COMMISSIONS
o Approves plans for the design, construction and implementation of public mass transit systems or projects, and for federal-aid and state highway projects. COMMISSIONS
o Approves any plan for a transit system proposed to serve more than one county. SCAG
o May coordinate the implementation of a Smart Freeway Demonstration Project within its jurisdiction. COMMISSIONS
o May jointly develop an implementation program for regional transit services. COMMISSIONS
1.
The role of SCAG in coordinating, reviewing, and resolving intercommission conflicts, in approving multi-county transportation plans, and in developing plans and programs shall be a cooperative effort with the county transportation commissions.
2.
In the case of a disagreement between SCAG and the county transportation commissions as to the resolution of a conflict involving recommended commission programs and the adopted Regional Transportation Plan (RTP), the California Transportation Commission (CTC) shall resolve the conflict.
ATTACHMENT 3
OPTION (1)
o Designate VTA as the Metropolitan Planning Organization (MPO) and the Regional Transportation Planning Agency (RTPA) for Santa Clara County.
DESCRIPTION
o VTA prepares/adopts the Regional Transportation Plan (RTP) for Santa Clara County.
o VTA develops transportation control measures for air quality purposes.
o VTA programs State Transportation Improvement Program (STIP), Surface Transportation Program (STP), and Congestion Mitigation and Air Quality Improvement Program (CMAQ) funds.
o VTA is the designated recipient of federal transit formula funds for the urbanized areas (UZAs) within Santa Clara County.
o VTA administers and allocates Transportation Development Act (TDA) and State Transit Assistance Program (STA) funds.
IMPLEMENTATION STEPS
o For VTA to become a Metropolitan Planning Organization (MPO), one of the following must occur: (1) reach an agreement with the Governor and cities/county representing at least 75 percent of the affected population, including the central city or cities; OR (2) enact state legislation.
o State legislation must be enacted to designate VTA as a Regional Transportation Planning Agency (RTPA) for purposes of programming state funds.
OPTION (2)
o Designate VTA as a county transportation commission, but VTA would continue to remain a part of the MTC region.
Description
o MTC continues to prepare/adopt the Regional Transportation Plan (RTP).
o MTC continues to develop transportation control measures for air quality purposes.
o VTA programs State Transportation Improvement Program (STIP), Surface Transportation Program (STP), Congestion Mitigation and Air Quality Improvement Program (CMAQ), and federal transit formula funds through the adoption of a Transportation Improvement Program for Santa Clam County.
o MTC reviews VTA's Transportation Improvement Program to ensure consistency with the Regional Transportation Plan (RTP) and the programming of funds in the other Bay Area counties. Any conflicts must be resolved cooperatively between VTA and MTC; otherwise the California Transportation Commission (CTC) decides.
o VTA administers and allocates Transportation Development Act (TDA) and State Transit Assistance Program (STA) funds.
IMPLEMENTATION STEPS
o State legislation must be enacted to designate VTA as a county transportation commission.
1.
Federal Transit Formula Funds = Section 5307 Urbanized Area (UZA) Formula Program Section 5309 Fixed Guideway Modernization Program