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April 27, 2021 <br /> <br />Discussion: <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 />offset any deficiencies between the estimated Local Share in the Portsmouth Transit <br />Service Plan and the actual Local Share determined by the Commission at the end of <br />each fiscal year. <br /> <br />Financial Impact: <br /> <br /> Amending the HRT Cost Allocation Agreement will effectively create a net-zero <br />variance to Portsmouth’s Preliminary FY22 Transit Service Plan (attached). <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 Mr. Battle, 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”); and <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; and <br /> <br />WHEREAS <br />, the Allocation Agreement currently requires HRT to distribute its <br />eligible federal and state funding to each of the Participating Cities on a pro rata basis <br />based on the annual cost to provide transit services and the level requested by each <br />Participating City; and <br /> <br />WHEREAS <br />, HRT may provide greater budgetary certainty to all Participating Cities <br />through strategic allocation of its eligible state and federal funding; and <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; and <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; and <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, 2022. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED <br />by the Council of the City of Portsmouth, <br />Virginia that: <br /> <br /> <br /> <br /> <br /> <br />