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June 9, 2020
<br />
<br />WHEREAS
<br />, the Hampton Roads Regional Transit Program and Fund (“Fund”) was
<br />established pursuant to Virginia Code § 33.2-2600.1 for the purpose of helping to provide
<br />a modern, safe, and efficient core network of transit services across the Hampton Roads
<br />region. 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 interjurisdictional, high-frequency bus service.
<br />
<br />WHEREAS
<br />, the Fund is funded, in part, by real estate recordation taxes pursuant
<br />to Virginia Code § 58.1-816 (“Recordation Tax”).
<br />
<br />WHEREAS
<br />, prior to the establishment of the Fund, the City of Portsmouth received
<br />a portion of the Recordation Tax from the Commonwealth of Virginia.
<br />
<br />WHEREAS
<br />, the loss of revenue from the reallocation of the Recordation Tax has
<br />created an ongoing financial burden on the City of Portsmouth.
<br />
<br />WHEREAS
<br />, HRT may help all Participating Cities mitigate this adverse financial
<br />impact by strategically allocating its eligible state and federal funding.
<br />
<br />WHEREAS
<br />, the current Allocation Agreement does not permit HRT to strategically
<br />allocate its state and federal funding amongst the Participating Cities.
<br />
<br />WHEREAS
<br />, the Allocation Agreement may be amended, via a resolution from
<br />each Participating City, to permit HRT to strategically allocate its eligible state and federal
<br />funding.
<br />
<br />WHEREAS
<br />, the City of Portsmouth desires to modify and amend the Allocation
<br />Agreement so that HRT may help mitigate adverse financial impacts to it and the other
<br />Participating Cities from the date of this Resolution until June 30, 2021.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA FROM THE DATE OF THIS RESOLUTION UNTIL JUNE 30,
<br />2021
<br />:
<br />
<br />1. Beginning July 1, 2020 and continuing until June 30, 2021 (“Hold Harmless
<br />Period”), which corresponds with HRT’s fiscal year 2021, HRT is authorized to
<br />strategically allocate its available and eligible federal and state funding, to the City of
<br />Portsmouth in such a manner as to first offset the loss of recordation tax revenue to the
<br />City of Portsmouth as a result of Virginia Code § 58.1-816. During the Hold Harmless
<br />Period, the City of Portsmouth will support HRT as the transportation district in the
<br />Hampton Roads region to receive moneys from the Fund. The Fund shall, in accordance
<br />with all applicable statutes, be administered by the Hampton Roads Transportation
<br />Accountability Commission (“HRTAC”) for the purpose of the development, maintenance,
<br />and improvement of a core regional network of transit routes and related infrastructure,
<br />rolling stock, and support facilities with high frequency bus service in the Hampton Roads
<br />region.
<br />
<br />2. During the Hold Harmless Period, the City agrees to modify the Allocation
<br />Agreement. Article IX, Allocation of Revenues, sections (D) and (E) shall be deleted and
<br />replaced as follows:
<br />
<br />Article IX. Allocation of Revenues
<br />\[* * *\]
<br />D. Federal funds received to reimburse net eligible operating expenses will be
<br />strategically allocated to each Participating City. Eligible federal funds, in combination
<br />with eligible state funds, will be allocated on an annual basis, in such combinations and
<br />amounts to be determined by the Commission. Subject to the requirements of Article X,
<br />and in the event eligible federal funds are available, such funds will be allocated to the
<br />Participating Cities to offset any deficiencies between the estimated Local Share in each
<br />Participating City TSP and the actual Local Share determined by the Commission at the
<br />end of each of the fiscal year.
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