Convene as the Tulare County Transportation Authority

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1 Tulare County Transportation Authority 210 N. Church Street, Suite B Visalia, California Phone (559) Fax (559) Tulare County Transportation Authority Date: Monday, December 10, 2018 Time: 11:00 a.m. (Workshop) 1:00 p.m. TCTA Board Meeting Place: Tulare Ag Auditorium 4437 S. Laspina Tulare, CA Technical Advisory Committee Date: Thursday, December 6, 2018 Time: 1:30 p.m. Place: Tulare County Association of Governments 210 N. Church Street, Suite B (Sequoia Conference Room) Visalia, CA In compliance with the Americans with Disabilities Act and the California Ralph M. Brown Act, if you need special assistance to participate in this meeting, including auxiliary aids, translation requests, or other accommodations, or to be able to access this agenda and documents in the agenda packet, please contact the TCAG office at at least 3 days prior to the meeting. Any staff reports and supporting materials provided to the Board after the distribution of the agenda packet are available for public inspection at the TCAG office. I. CALL TO ORDER & WELCOME II. PUBLIC COMMENTS-TIMED ITEM NOTICE TO THE PUBLIC PUBLIC COMMENT PERIOD At this time, members of the public may comment on any item of interest to the public and within the subject matter jurisdiction of TCAG but not appearing on this agenda. Under state law, matters presented under this item cannot be discussed or acted upon by the Board at this time. For items appearing on the agenda, the public is invited to make comments at the time the item comes up for Board consideration. Any person addressing the Board will be limited to a maximum of three (3) minutes so that all interested parties have an opportunity to speak with a total of fifteen (15) minutes allotted for the Public Comment Period. Speakers are requested to state their name(s) and address(es) for the record. Convene as the Tulare County Transportation Authority All items on the Consent Agenda are considered to be routine and non-controversial by Authority staff and will be approved by one motion if no member of the Authority Board or public wishes to comment or ask questions. Items pulled from the Calendar will be considered separately. III. AUTHORITY CONSENT CALENDAR ACTION AND INFORMATION ITEMS Request approval of the Authority Consent Calendar Action Items III-A through III-E. A. Action: Minutes of October 15, 2018 Authority Meeting (Pages 01-02) B. Action: Summary of October 11, 2018 Technical Advisory Committee Meeting (Pages 03-04) C. Action: Adoption of Resolution: Approval of Updated Conflict of Interest Code Designations (Pages 05-10) D. Action: Approval of Measure R Audit Extensions for Member Agencies (Pages 11-12) E. Action: Approve the 2019 Tulare County Association of Governments (TCAG), Tulare County Transportation Authority (TCTA), and Technical Advisory Committee (TAC) Meeting Calendar and Reconfirm Cancellation Policy (Pages 13-14) Dinuba Exeter Farmersville Lindsay Porterville Tulare Visalia Woodlake County of Tulare

2 F. Action: Adoption of Resolution: Affirm Citizens Oversight Committee Member (Pages 15-18) IV. AUTHORITY ACTION/DISCUSSION ITEMS A. Action: Adoption of Resolution: Approval of Loan Agreement with County of Tulare Auditor (Pages 19-30) B. Information: Measure R Revenue for October 2018 (Pages 31-33) V. OTHER BUSINESS A. Information: Item from Staff B. Information: Item from Board Members C. Information: Other Items D. Request from Board Members for Future Agenda Items VI. ADJOURN The next scheduled Tulare County Transportation Authority (TCTA) meeting will be held on Monday, January 28, 2019 at 1:00 p.m. at the Farmersville Community Center, 623 N. Avery Street, (Corner of Ash), Farmersville, CA The Technical Advisory Committee will meet on Wednesday, January 23, 2018 at 1:30 p.m. at the Tulare County Association of Governments (TCAG), 210 N. Church Street, Suite B, Sequoia Conference Room, Visalia, CA Dinuba Exeter Farmersville Lindsay Porterville Tulare Visalia Woodlake County of Tulare

3 TULARE COUNTY TRANSPORTATION AUTHORITY BOARD OF GOVERNORS AGENCY ALTERNATE Kuyler Crocker Chair Tulare County-District 1 Vacant Pete Vander Poel Tulare County-District 2 William Cushing Amy Shuklian Tulare County-District 3 Vacant J. Steven Worthley Tulare County-District 4 Vacant Mike Ennis Tulare County-District 5 Vacant Maribel Reynosa City of Dinuba Linda Launer Vacant City of Exeter Mary Waterman Paul Boyer City of Farmersville Leonel Benavides Pamela Kimball City of Lindsay Brian Watson Martha A. Flores City of Porterville Milt Stowe Maritsa Castellanoz City of Tulare David Macedo Bob Link Vice-Chair City of Visalia Phil Cox Rudy Mendoza City of Woodlake Frances Ortiz ===================================================================================== TCAG STAFF Office Address Ted Smalley, Executive Director Tulare County Association of Governments Ben Kimball, Deputy Executive Director 210 N. Church, Suite B Ben Giuliani, Executive Officer- LAFCO Visalia, CA Leslie Davis, Fiscal Manager P: (559) Elizabeth Forte, Principal Regional Planner F: (559) Roberto Brady, Principal Regional Planner Mark Hays, Senior Regional Planner Derek Winning, Senior Regional Planner Gabriel Gutierrez, Senior Regional Planner Kasia Poleszczuk, Associate Regional Planner Steven Ingoldsby, Associate Regional Planner Barbara Pilegard, Associate Regional Planner-EH Maria Garza, Associate Regional Planner-EH Britt L. Fussel, Engineer III-EH Michele Boling, Accountant II Brideget Moore, Staff Services Analyst III Amie Kane, Administrative Clerk Servando Quintanilla, Administrative Clerk Wendy Gutierrez, Administrative Clerk-EH Olivia Forte, Intern Apprentice-EH Dinuba Exeter Farmersville Lindsay Porterville Tulare Visalia Woodlake County of Tulare

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5 AGENDA ITEM: III-A TULARE COUNTY ASSOCIATION OF GOVERNMENTS TULARE COUNTY TRANSPORTATION AUTHORITY ****** Executive Minutes October 15, 2018 Board Members Alternates Present Member/Alternate Agency Kuyler Crocker (Chair) Vacant M Tulare County-Dist. 1 Pete Vander Poel William Cushing M Tulare County-Dist. 2 Amy Shuklian Vacant M Tulare County-Dist. 3 J. Steve Worthley Vacant M Tulare County-Dist. 4 Mike Ennis Vacant M Tulare County-Dist. 5 Maribel Reynosa Linda Launer M City of Dinuba Vacant Mary Waterman City of Exeter Paul Boyer Leonel Benavides M City of Farmersville Pamela Kimball Brian Watson M City of Lindsay Martha A. Flores Milt Stowe M City of Porterville Maritsa Castellanoz David Macedo City of Tulare Bob Link (Vice-Chair) Phil Cox M City of Visalia Rudy Mendoza Frances Ortiz City of Woodlake Counsel and TCAG Staff Present (X) X Jennifer Takehana, Tulare County Deputy Counsel X Ted Smalley, Executive Director Kasia Poleszczuk, Associate Regional Planner X Benjamin Kimball, Deputy Executive Director X Steven Ingoldsby, Associate Regional Planner Benjamin Giuliani, Executive Officer-LAFCO Maria Garza, Associate Regional Planner/EH Leslie Davis, Fiscal Manager X Britt Fussel, Engineer III/EH X Elizabeth Forte, Principal Regional Planner Michele Boling, Accountant X Roberto Brady, Principal Regional Planner X Brideget Moore, Staff Services Analyst III X Mark Hays, Senior Regional Planner X Amie Kane, Administrative Clerk Derek Winning, Senior Regional Planner Wendy Gutierrez, Administrative Clerk/EH X Gabriel Gutierrez, Senior Regional Planner Olivia Forte, Intern Apprentice/EH I. CALL TO ORDER & WELCOME The Tulare County Transportation Authority was called to order by Chair Crocker at 2:18 p.m. on October 15, 2018 at the Lindsay Wellness Center, 860 N. Sequoia, Lindsay, CA II. PUBLIC COMMENTS Public comments opened/closed at 2:19 p.m. No public comments received. III. AUTHORITY CONSENT CALENDAR ACTION/INFORMATION ITEMS Request approval of the Authority Consent Calendar Action Items III-A through III-B. A. Action: Minutes of September 17, 2018 Authority Meeting B. Action: Summary of September 13, 2018 Technical Advisory Committee Meeting 1

6 Upon a motion by Member Kimball, and seconded by Member Flores, the Tulare County Transportation Authority unanimously approved the Authority Consent Calendar Action Items III-A through III-B. Absent: Castellanoz, Waterman, and Mendoza. IV. AUTHORITY ACTION/DISCUSSION ITEMS A. Information: Updated Conflict of Interest Code Designations Ms. Moore reported that the updated conflict of interest code would be brought back for approval in December and was the same as presented during the TCAG meeting. B. Information: Measure R Revenue for September 2018 Mr. Smalley reported the Measure R allocations for the month of September were $2,757,442.79; adding, the year to date amount was $8,057, which represented a 1.4% annual decrease between fiscal years 17/18 and 18/19. C. Action: Cancel the November 2018 Technical Advisory Committee (TAC) and Tulare County Transportation Authority (TCTA) Meetings Chair Crocker announced the recommendation to cancel the November TAC and TCTA meetings. Upon a motion by Member Worthley, and seconded by Member Ennis, the Tulare County Transportation Authority unanimously approved the cancellation of the November meetings as recommended. Absent: Castellanoz, Waterman, and Mendoza. V. OTHER BUSINESS A. Information: Items from Staff B. Information: Items from Board Members C. Information: Other Items D. Request from Board Members for Future Agenda Items There were no items reported or comments noted for Other Business Items V-A through V-D. VI. ADJOURN The Tulare County Transportation Authority adjourned at 2:21 p.m. 2

7 AGENDA ITEM: III-B TCTA Technical Advisory Committee Meeting Tulare County Association of Governments N. Church Street, Suite B, Visalia, CA October 11, 2018 Summary Meeting Minutes City of Dinuba City of Exeter Cities of Farmersville, Woodlake City of Lindsay County of Tulare City of Porterville City of Tulare City of Visalia Tule River Indian Reservation TCAG Caltrans ATTENDANCE LIST Others Present: TCAG Staff Present: Roberto Brady, Leslie Davis, Elizabeth Forte, Britt Fussel, Mark Hays, Gabriel Gutierrez, Kasia Poleszczuk, Steven Ingoldsby, Brideget Moore SUMMARY MEETING MINUTES (Minutes reflect agenda items discussed only) Absent Eddie Wendt Absent Mike Camarena Hernan Beltran Javier Sanchez Michael Miller Leslie Blair Absent Ben Kimball Lorena Mendibles I. Call to Order: The meeting convened as the Tulare County Transportation Authority Meeting and was called to order by Ben Kimball at 2:13 p.m. All action and informational documents were distributed for review and discussion. All actionable items would be voted on at the next Tulare County Transportation Authority (TCTA) Board meeting, scheduled for October 15, IV. VII. Authority Action/Discussion Items The following reports were distributed and reviewed: A. Information: Updated Conflict of Interest Code Designations Ms. Moore reiterated that the item was similar to the TCAG agenda item and that the conflict of interest code would be reviewed and brought back to the Board in December for action. B. Information: Measure R Revenue for September 2018 Ms. Davis reported the allocation for the month of September was $2,757, noting that it was a 1.4% decrease for the same time period between fiscal years 17/18 and 18/19. C. Action: Cancel the November 2018 Technical Advisory Committee (TAC) and Tulare County Transportation Authority (TCTA) Meetings Mr. Kimball stated that the meeting cancelation was in effect the same item from the TCAG agenda and no questions or concerns were noted. Adjourned: The TCAG Technical Advisory Committee adjourned at 2:16 p.m. 3

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9 Tulare County Association of Governments Sitting as the Tulare County Transportation Authority AGENDA ITEM III-C December 10, 2018 Prepared by Brideget Moore, TCAG Staff SUBJECT: Action: Adoption of Resolution: Approval of Updated Conflict of Interest Code Designations BACKGROUND: The Tulare County Transportation Authority (TCTA) is required to adopt and maintain a conflict of interest code. This code outlines who must disclose information on an annual basis, and what type of information must be disclosed. The code must be updated periodically. A review of the conflict of interest code for the Tulare County Transportation Authority resulted in the following proposed changes to the code: Recommended Revision: Program Manager for TCAG Principal Planner (Disclosure Categories 1, 2, 3) The proposed designated position and the required disclosure categories are attached in Appendix A. Appendix B outlines the disclosure categories. Form700s are due April 1 st every year for those who hold the designated positions. DISCUSSION: Upon revision of conflict of interest code designations, forty-five days of notice was given to those governed by the code in addition to members of the public and posted in three public places within the jurisdiction including the TCAG office, Resource Management Agency and the Board of Supervisors. The recommended revisions are being presented to the Board for review and action. RECOMMENDATIONS: Approve the recommended revisions. FISCAL IMPACT: No fiscal impact. ATTACHMENT(S): 1. Resolution Approving the Updated Conflict of Interest Code Designations 2. Appendix A- TCTA Designated Employees 3. Appendix B- Disclosure Categories Work Element: TCAG Administration 5

10 BEFORE THE TULARE COUNTY TRANSPORTATION AUTHORITY COUNTY OF TULARE, STATE OF CALIFORNIA In the matter of: APPROVAL OF UPDATED CONFLICT ) Resolution No. OF INTEREST CODE DESIGNATIONS ) WHEREAS, The Tulare County Transportation Authority (TCTA) is required to adopt and maintain and periodically revise a conflict of interest code and those governed by it must disclose information on an annual basis; and WHEREAS, TCTA has determined that the Principal Planer position with disclosure categories 1,2, and 3 should be added to the conflict of interest code ; and WHEREAS, forty-five days notice was given to the public and those governed by the conflict of interest code. NOW, THEREFORE, BE IT RESOLVED that the TCTA conflict of interest code reflect the following changes: Principal Planner (Disclosure Categories 1,2,3). The foregoing Resolution was adopted upon motion of Member, seconded by Member, at a regular meeting held on the 10 th day of December, 2018, by the following vote: AYES: NOES: ABSTAIN: ABSENT: TULARE COUNTY ASSOCIATION OF GOVERNMENTS Kuyler Crocker Chair, TCAG Ted Smalley Executive Director, TCAG 6

11 APPENDIX A (DESIGNATED EMPLOYEES) DESIGNATED POSITIONS DISCLOSURE CATEGORIES Members of TCAG Board 1, 2, 3 Alternate Members of TCAG Board 1, 2, 3 Executive Director 1, 2, 3 Deputy Executive Director 1, 2, 3 Fiscal Manager 1, 2, 3 Principal Planner 1, 2, 3 LAFCo Executive Officer 1, 2, 3 Consultant* 1 * Consultants are included as designated employees and shall disclose pursuant to the broadest disclosure category, subject to the following limitation: The executive director/executive officer of this local agency may determine in writing whether a particular consultant is a designated employee or whether the consultant is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements required by this Code. Such written determination shall include a description of the consultant s duties and, based upon that description, a statement of the extent of disclosure requirements. The determination of the executive director/executive officer is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. Work Element: TCAG Administration October 15,

12 APPENDIX B 2018 CONFLICT OF INTEREST CODE DISCLOSURE CATEGORIES 1. Full Disclosure: All interests in real property located entirely or partly within this Agency s jurisdiction or boundaries, or within two miles of this Agency s jurisdiction or boundaries or of any land owned or used by this Agency. Such interests include any leasehold, ownership interest or option to acquire such interest in real property. All investments, business positions, and sources of income, including gifts, loans and travel payments. (Intended for board members and high-level decision-making employees with broad duties) 2. Full Disclosure (excluding interests in real property): All investments, business positions, and sources of income, including gifts, loans and travel payments. 3. Interests in Real Property (only): All interests in real property located entirely or partly within this Agency s jurisdiction or boundaries, or within two miles of this Agency s jurisdiction or boundaries or of any land owned or used by this Agency. Such interests include any leasehold, ownership interest or option to acquire such interest in real property. 4. General Contracting: A. All investments, business positions, and sources of income, including gifts, loans and travel payments, from sources that provide, or have provided in the last two years, leased facilities, goods, supplies, materials, equipment, vehicles, machinery, services, or the like, including training or consulting services, of the type utilized by the agency. (Intended for employees whose duties and decisions involve contracting and purchasing for the entire County) COUNTY OF TULARE Page 1 of 2 APPENDIX B Disclosure Categories 8

13 5. Regulatory, Permit or Licensing Duties: All investments, business positions, and sources of income, including gifts, loans and travel payments, from sources that are subject to the regulatory, permit or licensing authority of, or have an application for a license or permit pending before the agency. 6. Grant/Service Providers/Agencies that Oversee Programs : A. All investments, business positions, and sources of income, including gifts, loans and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants or other monies from or through the agency. (Intended for employees whose duties and decisions involve awards of monies or grants to organizations or individuals) COUNTY OF TULARE Page 2 of 2 APPENDIX B Disclosure Categories 9

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15 Tulare County Association of Governments Sitting as the Tulare County Transportation Authority AGENDA ITEM III-D December 10, 2018 Prepared by Leslie Davis, TCAG Staff SUBJECT: Action: Approval of Measure R Audit Extension for Member Agencies BACKGROUND: The Tulare County Association of Governments (TCAG) member agencies submits annual independent audits to ensure fiscal and reporting compliance in accordance with Federal, State, and Local guidelines. The audits are performed for Measure R funding. DISCUSSION: TCAG member agencies have until December 31 st to complete the audit of the previous year ended June 30 th. The Tulare County Transportation Authority (TCTA) has the ability to grant a 90-day extension to March 31 st of the following calendar year for member agencies to deliver their audits. The Measure R independent audit will begin once member agencies are near completion of their own agency audit. The Tulare County Transportation Authority may grant a 90-day extension, to March 31 st of the following calendar year, to avoid a lapse in the deadline of the member agency audit. All audits should be completed by December 31 st and the extension will be activated if necessary. RECOMMENDATIONS: Approve the audit extension for TCTA member agency Measure R audits. FISCAL IMPACT: No fiscal impact. ATTACHMENTS: None Work Element: Measure R Administration and Planning 11

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17 Tulare County Association of Governments AGENDA ITEM III-E December 10, 2018 Prepared by Amie Kane, TCAG Staff SUBJECT: Action: Approve the 2019 Tulare County Association of Governments (TCAG), Tulare County Transportation Authority (TCTA), and Technical Advisory Committee (TAC) Meeting Calendar and Reconfirm Cancellation Policy BACKGROUND: Tulare County Association of Governments (TCAG) does not have its own facility to accommodate Board meetings. Past TCAG Chairs and member agencies have requested that the location for the TCAG and TCTA Board meetings rotate throughout the county. In some instances, where more space is needed for hearings or workshops or if a facility is not available, TCAG reserves the Tulare Ag Commission Auditorium at 4437 S. Laspina St., Tulare, CA The Technical Advisory Committee (TAC) meeting locations are held at the TCAG office at 210 North Church Street, Suite B, Visalia, CA DISCUSSION: The 2019 Tulare County Association of Governments (TCAG), Tulare County Transportation Authority (TCTA), and Technical Advisory Committee (TAC) meeting schedule is attached for the Governing Board s review and approval. Generally, the TCAG and TCTA Board meeting is held on the third Monday of each month, with a few exceptions. The TAC meeting is held the Thursday, prior to the TCAG Board meeting. Due to occasional conflicts, meetings are subject to change with notice. The Chair in consultation with the Executive Director may cancel or reschedule a meeting. RECOMMENDATIONS: Approve the 2019 TCAG, TCTA and TAC Meeting Calendar, including the provision allowing the Chair, in consultation with the Executive Director, to cancel or reschedule a meeting. ATTACHMENT: 2019 TCAG, TCTA and TAC Meeting Calendar Work Element: Administration 13

18 2019 TCAG/TCTA and TAC Meeting Calendar with Meeting Locations TAC Meeting (Thursdays, 1:30 p.m.) TCAG/TCTA Board Meeting (3 rd Monday, 1:00 pm) January 23, 2019* January 28, 2019* February 21, 2019* February 25, 2019* Location# Farmersville Community Center 623 N. Avery Street Farmersville, CA Tulare County Board of Supervisors 2800 W. Burrel Avenue Visalia, CA March 14, 2019 March 18, 2019 TBD April 11, 2019* April 15, 2019* May 16, 2019 May 20, 2019 June 13, 2019 June 17, 2019 Tulare Ag Auditorium 4437 S. Laspina Tulare CA Woodlake Community Center 145 N. Magnolia Street Woodlake, CA Porterville Fire Department Training Facility 500 N. Newcomb Street Porterville, CA July 11, 2019 July 15, 2019 TBD August 15, 2019 August 19, 2019 September 12, 2019 September 16, 2019 October 17, 2019 October 21, 2019 November 14, 2019* November 18, 2019* December 12, 2019* December 16, 2019* * Exception to standard board meeting dates is due to Holidays or a meeting conflict. # Meeting locations are subject to change. Exeter Historical Museum 125 South B Street Exeter, CA Dinuba Community Center 1390 E. Elizabeth Way Dinuba, CA Lindsay Wellness Center 860 N. Sequoia Lindsay, CA Woodlake Community Center 145 N. Magnolia Street Woodlake, CA Tulare Ag Auditorium 4437 S. Laspina Tulare CA ^ Times may vary if a workshop precedes a meeting 14

19 Tulare County Association of Governments Sitting as the Tulare County Transportation Authority AGENDA ITEM III-F December 10, 2018 Prepared by Leslie Davis, TCAG Staff SUBJECT: Action: Adoption of Resolution: Affirm Citizens Oversight Committee Member BACKGROUND: The Measure R Expenditure Plan provides guidelines for the Citizens Oversight Committee, including the requirements for membership and the agencies responsible for nominations to the Oversight Committee. All selections to the Oversight Committee require confirmation from the TCTA. DISCUSSION: The City of Visalia has re-appointed Tom Weise. The new term will cover July 1, 2018 to June 30, An Oversight Committee member may serve up to eight years, and are reappointed every two years. RECOMMENDATION: Affirm the selection of Tom Weise to represent the City of Visalia position on the Citizens Oversight Committee for the term July 1, 2018 to June 30, FISCAL IMPACT: No fiscal impact. ATTACHMENT: 1. Resolution for Approval of Citizens Oversight Committee Member, Tom Weise, to represent the City of Visalia for the term July 1, 2018 to June 30, Work Element: Measure R Implementation 15

20 BEFORE THE TULARE COUNTY TRANSPORTATION AUTHORITY COUNTY OF TULARE, STATE OF CALIFORNIA In the matter of: AFFIRMATION OF MEASURE R ) CITIZENS OVERSIGHT COMMITTEE ) Resolution No. [ ] MEMBERS ) WHEREAS, on November 7, 2006 the citizens of Tulare County approved Measure R; and WHEREAS, Measure R included an Expenditure Plan that provides the guidance for the formation of a Citizens Oversight Committee, including the agencies that will provide nominations and the terms which they will serve; and WHEREAS, The City of Visalia has re-appointed Tom Weise. The new term will cover July 1, 2018 to June 30, An Oversight Committee member may serve up to eight years, and are reappointed every two years; and WHEREAS, the Expenditure Plan outlines that the Transportation Authority Board has the responsibility of final approval of all appointments. 16

21 Resolution No. NOW, THEREFORE, BE IT RESOLVED that the Tulare County Transportation Authority affirms that the following nomination is approved to serve on the Tulare County Measure R Citizens Oversight Committee, Tom Weise for the City of Visalia, term ending June 30, The foregoing Resolution was adopted upon motion of Member, seconded by Member, at a regular meeting held on the 10 th day of December, 2018 by the following vote: AYES: NOES: ABSTAIN: ABSENT: TULARE COUNTY ASSOCIATION OF GOVERNMENTS Kuyler Crocker Chair, TCAG Ted Smalley Executive Director, TCAG 2 17

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23 Tulare County Association of Governments Sitting as the Tulare County Transportation Authority AGENDA ITEM IV-A December 10, 2018 Prepared by Leslie Davis and Ted Smalley, TCAG Staff SUBJECT: Actions: (1) Approve entering into a new or refinanced $20 Million Promissory Note and Loan Agreement with County of Tulare Treasurer (for a total loan obligation of $20 Million), on the following material terms: (a) up to a five year maturity date, (b) interest on the principal payable quarterly, at a rate based on the prior quarter s Tulare County Treasury Pool annual earnings rate plus 100 basis points (annual interest rate estimated to be in the range of 1.5% to 3% per year); (2) Authorize the Chairman and Executive Director to finalize and execute a Promissory Note and Agreement with the Tulare County Treasurer on substantially similar terms to the previous Promissory Note between the parties, except for the material changes approved above, with such Agreement subject to approval as to form by County Counsel or other outside counsel retained by TCTA for this purpose. BACKGROUND: Over the past four years, Regional Project costs have been increasing, primarily due to inflation. In the past year alone, Regional Project costs have increased by approximately 25% from the previous year. Thus, as staff drafted a proposed Bi-Annual Work Plan for your Board s consideration, staff had to carefully review and budget for anticipated cost increases. On May 21, 2018 staff presented the Bi-Annual Work Plan for TCTA Board approval. This Work Plan outlines the recommended five-year expenditures for the Regional and Transit/Bike/Environmental Programs of Measure R. Staff suggested that an additional $10 Million in cash flow would allow Regional Measure R Projects to proceed more quickly, and therefore be accomplished more economically. Thus, staff requested authority to negotiate with the County of Tulare Treasurer for an additional $10 million loan, secured by a new or amended promissory note, with the loan amount anticipated to be repaid through Measure R funds. Staff also requested authority to extend the maturity date of TCTA s current $10 Million promissory note and loan agreement with the Tulare County Treasurer until August 31, If the new loan and extension (or refinanced loan) are approved by both parties under these terms, this would create a total obligation to the County of Tulare Treasurer of $20 million in outstanding principal, plus interest, to be repaid over the next five years. Your Board approved these material terms on May 21, 2018 in Resolution (see Attachment A). During negotiations, the Treasurer requested an adjustment to the interest rate paid by TCTA on both the new and outstanding principal amounts to be repaid. The current interest rate paid by TCTA is the prior quarter s Tulare County Treasury Pool annual earnings rate plus 100 basis points (for last quarter, this rate was 2%, but the rate will vary each quarter). 19

24 DISCUSSION: In order to deliver the scheduled projects within our approved expenditure plan and strategic work plan, it has become evident that TCTA will need additional short term cash flow funding. Pursuant to Resolution , staff would like to enter into an agreement with the County of Tulare Treasurer for a loan (secured by a promissory note) of up to $20 million, with up to a 5 year maturity date. The cost of the loan would be the interest paid quarterly on the outstanding principal, and TCTA anticipates repaying the principal amount in one lump sum at or before the loan maturity date. The interest rate would vary each quarter, and would be calculated as the prior quarter s Treasury Pool annual earnings rate plus 100 basis points. It is estimated that this formula will equal an annual interest rate in the range of approximately 1.5% to 3%, which is less than the approximate 4% market interest rate for similar tax exempt borrowings (based on tax free bonds). This continues to make borrowing from the County s Investment Pool a very economical way to provide cash flow financing for the Measure R program, and at the same time, gives the Investment Pool a slightly higher rate of return than it would otherwise earn on a different $20 million investment. The parties could structure the transaction for the additional $10 million in at least two ways: (1) amend the current loan agreement and promissory note to add an additional $10 million to the outstanding principal owed, for a total outstanding loan of $20 million; or (2) refinance the outstanding loan by repaying the existing outstanding $10 million loan, and entering into a new $20 million promissory note and loan. Please note that if the parties attempted to amend the current loan, pursuant to the County s Annual Investment Policy of the Pooled Investment Fund for Fiscal year , such an investment would need to be approved by the Board of Supervisors three months in advance of the investment being made, which would delay the additional cash flow by a quarter and slow down the ability of TCTA to fund Regional Projects. RECOMMENDATIONS: Because the amendment of the current loan agreement would result in additional delay in financing certain Regional Projects, staff recommends that the TCTA Board approve refinancing the original loan by entering into a new loan for $20 million with the Tulare County Treasurer, as opposed to amending the original loan, if at all possible. Staff requests that the TCTA Board approve the material terms of the new loan agreement (maximum amount and maturity date, maximum interest rate), with other terms in the loan agreement to be substantially similar to the terms agreed to in the previous promissory note and loan agreement (see Attachment B, which includes the previous promissory note and loan agreement, as amended). If the form of the Agreement can be finalized before the TCTA Board meeting, staff will also present the proposed Agreement to the Board at the meeting. Finally, staff requests that the Board authorize the Chair and TCAG Director to finalize and execute a promissory note and loan agreement with the County of Tulare Treasurer on the terms specified herein. FISCAL IMPACT: The loan was anticipated when the work plan was approved on May 21, Failure to approve the loan will delay projects and ultimately increase the cost of projects over the life of Measure R. Low interest rate loans allow for financially prudent investment in transportation. 20

25 ATTACHMENTS: 1. Resolution to approve promissory note and loan agreement with County of Tulare Treasurer Promissory Note and Loan Agreement between TCTA and County Treaurer, as amended. 3. Resolution to approve new Promissory Note and Loan Agreement with County of Tulare Treasurer. Work Element: Measure R Implementation 21

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32 BEFORE THE TULARE COUNTY TRANSPORTATION AUTHORITY COUNTY OF TULARE, STATE OF CALIFORNIA In the matter of: APPROVING THE LOAN AGREEMENT ) WITH THE COUNTY OF TULARE ) AUDITOR ) Resolution No. WHEREAS, on November 7, 2006 the citizens of Tulare County approved Measure R and the Measure R Expenditure Plan; and WHEREAS, the adopted Measure R Expenditure Plan outlines that a Bi-Annual Strategic Work Plan will be prepared; and WHEREAS, the 2018 Strategic Work Plan will serve as a master plan for the delivery of projects in the upcoming five year period from FY 2017/18 to 2022/23; and WHEREAS, TCTA Board approve refinancing the original loan by entering into a new loan for $20 million with the Tulare County Treasurer, as opposed to amending the original loan, if at all possible; and WHEREAS, the TCTA Board approve the material terms of the new loan agreement (maximum amount and maturity date, maximum interest rate), with other terms in the loan agreement to be substantially similar to the terms agreed to in the previous promissory note and loan agreement. The agreement amount will not exceed $20 million, with a term date not to exceed 5 years, and for an interest rate not to exceed the County of Tulare s current interest rate of return plus 100 basis points; and WHEREAS, the Board authorize the Chair and TCAG Director to finalize and execute a promissory note and loan agreement with the County of Tulare Treasurer on the terms specified herein. 28

33 Resolution No.[ ] NOW, THEREFORE, BE IT RESOLVED that the Tulare County Transportation Authority authorizes the Chair and TCAG Director to finalize and execute a promissory note and loan agreement with the County of Tulare Treasurer on the terms specified herein. An amount not to exceed (NTE) $20 million, with a term date NTE 5 years and with an interest rate NTE the current rate plus 100 basis points. The foregoing Resolution was adopted upon motion of Member, seconded by Member, at a regular meeting held on the 10 th day of December 2018 by the following vote: AYES: NOES: ABSTAIN: ABSENT: TULARE COUNTY TRANSPORTATION AUTHORITY Kuyler Crocker Chair, TCTA Ted Smalley Executive Director, TCTA 2 29

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35 AGENDA ITEM IV-B December 10, 2018 Prepared by Leslie Davis, TCAG Staff Tulare County Association of Governments Sitting as the Tulare County Transportation Authority SUBJECT: Information: Measure R Revenue for October 2018 BACKGROUND: On November 7, 2006, the voters of Tulare County approved Measure R, imposing a ½-cent sales tax for transportation within the incorporated and unincorporated area of Tulare County through The transportation sales tax funds are spent in accordance with the Expenditure Plan that resulted from a joint effort among all the cities and the County of Tulare. The Expenditure Plan reflects the transportation needs of the residents of Tulare County. The plan includes funding for Regional Projects, Local Programs, Transit/Bike/Environmental Programs and Administration. The funds are distributed as follows: 1. Regional Projects (50%) 2. Local Programs (35%) 3. Transit/Bike/Environmental (14%) 4. Administration and Planning Program (1%) Measure R revenue collection began on April 1, Monthly Measure R advancements are received by TCAG from the State Board of Equalization followed by quarterly clean-up disbursements. In total TCAG receives eight advancements and four clean-up disbursements throughout a fiscal year. The Measure R 2018 Strategic Work Plan was approved by the Authority on June 18, 2018 with Resolution No The Work Plan serves as a guide for the delivery of Measure R projects in the upcoming five-year period. DISCUSSION: Status of Measure R Revenues Fiscal Year 2018/ Measure R allocations have been received for October 2018 and requested distribution made through October The allocation for the month of October is $3,453,863 compared to $2,215,600 for the same period last year. The year to date amount is $11,511,423 compared to $10,386,460 for the same 12 month period last year, representing an 11% increase. See attached revenue chart covering fiscal years 2014/2015, 2015/2016, 2016/2017, 2017/2018 and 2018/2019 year to date. 31

36 Transit Investment Funding exchange with MR Transit The City of Farmersville is our first agency to take advantage of the Transit Investment Funding exchange with Measure R Transit for the fiscal year 18/19. Member agencies may replace the MR service-expansion funding with additional state or federal funding. The amount replaced can be used for new or existing air quality projects. ATTACHMENT: 1. Annual Revenue Comparison through October of Each Fiscal Year Work Element: Measure R Implementation 32

37 Attachment 1 $4,000, $3,750, $3,500, Actual Revenues Annual Revenue Comparison through October of Each Fiscal Year Projected Revenue $3,453, Linear (Actual Revenues) $3,250, $3,000, $2,750, $2,500, $2,250, $2,192, $2,164, $2,215, $2,000, $1,979, $1,750, $1,500, $1,415, $1,457, $1,501, $1,531, $1,562, $1,250, $1,000, $750, $500, / / / / /