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June 9, 2020 <br /> <br /> <br /> If the legislation had not been adopted, the City of Portsmouth would have received <br />a portion of the Recordation Tax. <br /> <br /> HRT intends to help Portsmouth and the other member localities mitigate the <br />adverse financial impact of losing their share of the Recordation Tax by strategically <br />allocating HRT’s eligible state and federal funding to reduce the localities’ net <br />contributions to HRT for FY 2021. <br /> <br />Discussion: <br /> <br /> The Fund provides financial support for the development, maintenance, <br />improvement and operation of a core and connected regional network of transit routes <br />and related infrastructure, rolling stock, and support facilities, to include the operation of <br />a regional system of inter-jurisdictional, high-frequency bus service. <br /> <br /> Two core regional network routes are planned for Portsmouth and would operate <br />on 15-minute peak hour frequency along the High Street and Portsmouth Boulevard <br />corridor currently served by Route 44 and Route 45. <br /> <br /> The current Cost Allocation Agreement between HRT and its member localities <br />(originally executed in 1999) does not permit HRT to strategically allocate its state and <br />federal funding among the localities. <br /> <br /> The Allocation Agreement may be amended through the adoption of resolutions <br />by all member localities. <br /> <br /> Adopting the Resolution presented for Council consideration will allow HRT to <br />achieve positive FY 2020 year-end balances for each locality; HRT will then strategically <br />re-program the positive balances to mitigate the loss of the Recordation Tax funding <br />through the expenditure of Regional Transit funds in place of local transportation funds. <br /> <br />Financial Impact: <br /> <br /> Amending the HRT Cost Allocation will effectively negate the loss of $132,871 in <br /> <br />Recordation Tax funding. <br /> <br />Recommended Action: <br /> <br /> Adoption of the resolution. <br /> <br />Next Steps Following Council Action: <br /> <br /> The Finance Department will make any necessary budget adjustments. <br /> <br />Motion by Ms. Lucas-Burke, and seconded by Ms. Psimas, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />“RESOLUTION TO AMEND THE COST ALLOCATION AGREEMENT BETWEEN THE <br />CITIES OF CHESAPEAKE, HAMPTON, NEWPORT NEWS, NORFOLK, <br />PORTSMOUTH, VIRGINIA BEACH AND THE TRANSPORTATION DISTRICT <br />COMMISSION OF HAMPTON ROADS. <br /> <br />WHEREAS <br />, the Cities of Chesapeake, Hampton, Newport News, Norfolk, <br />Portsmouth and Virginia Beach (collectively, the “Participating Cites”) and the <br />Transportation District Commission of Hampton Roads (“HRT”) are parties to the Cost <br />Allocation Agreement, effectively dated October 1, 1999 (“Allocation Agreement”). <br /> <br />WHEREAS <br />, the Allocation Agreement, among its other provisions, defines how <br />state and federal funding received by HRT is allocated to the Participating Cities for the <br />capital and operating costs associated with acquiring, consolidating, rehabilitating, <br />operating and expanding public transportation facilities and services for the Hampton <br />Roads region. <br /> <br />WHEREAS <br />, the Allocation Agreement currently requires HRT to distribute its <br />eligible federal and state funding to each Participating Cities on a pro rata basis based on <br />the annual cost to provide transit services and the level requested by each Participating <br />City. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />