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March 8, 2022
<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 at 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 temporarily modify and amend the
<br />Allocation Agreement so that HRT may help mitigate adverse financial impacts to it and
<br />the other Participating Cities from the date of this Resolution until June 30, 2023; and
<br />
<br />WHEREAS,
<br /> HRT and other Participating Cities have represented that Article IX,
<br />Allocation of Revenues, sections (D) and (E) are not deleted permanently but suspended
<br />between July 1, 2022 and June 30, 2023 and Portsmouth has relied upon this
<br />representation; and
<br />
<br />WHEREAS,
<br /> Portsmouth’s approval of this amendment is conditioned upon Article
<br />IX, Allocation of Revenues, sections (D) and (E) being suspended one year and returning
<br />to effect on July 1, 2023;
<br />
<br />NOW, THEREFORE, BE IT RESOLVED
<br /> by the Council of the City of Portsmouth,
<br />Virginia that:
<br />
<br />1. Beginning July 1, 2022 and continuing until June 30, 2023 (“Effective
<br />Period”), which corresponds with HRT fiscal year 2023, HRT is authorized to strategically
<br />allocate its available and eligible federal and state funding, to the City of Portsmouth.
<br />
<br />2. During the Effective 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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