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Amendment 10 to the CEA between DOTD and RTA to revise Exhibit K
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DESCRIPTION: Execute an amendment to the CEA between DOTD and RTA. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Chief Executive Officer to execute an amendment to the Cooperative Endeavour Agreement (CEA) between the Department of Transportation and Development (DOTD) of the State of Louisiana and the Regional Transit Authority (RTA), specifically Exhibit K, as provided in the attached draft of Amendment No. 10.
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ISSUE/BACKGROUND:
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RTA’s management present for the Committee’s consideration and referral to the Board of Commissioners approval and issuance of a resolution authoring the RTA’s Chief Executive Officer to execute an amendment to an existing (CEA) between the RTA and the DTOD to add a new Purchase Order number to the CEA for future annual subsidies.
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DISCUSSION:
The CEA, effective on February 16, 2014, regulates the cooperative endeavor agreement between RTA and DOTD related to the ferry service. Amongst the CEA’s exhibits is Exhibit K (Purchase Order (PO) 2000071309), the State Annual Subsidy Schedule, which contains the statement of annual ferry subsidy, including the schedule of transfer of estimated funds. While several sources of State provided funding have subsidized the ferry service, the main source of State funding to subsidize the ferry service is pursuant to RS 48:25.1(A), known as the Transportation Trust Fund, and RS 48:25.2, known as the New Orleans Ferry Fund.
In the case of the Transportation Trust Fund, RS 48:25.1(A) provides that “[t]he [DOTD][ ] shall…contribute from its operating budget not more than four million dollars annually for the continued operation of the Chalmette ferry..." On the other hand, for the New Orleans Ferry Fund, RS 48:25.2 requires that,
A. …beginning July 1, 2019, and each year thereafter, after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, and after allocating state highway fund No. 2 for the Greater New Orleans Expressway Commission, the treasurer shall deposit into the fund, an amount equal to the total of all of the funds derived from the collection of registration and license fees and taxes collected by the state pursuant to R.S. 47:462, and as provided in R.S. 47:481, in the parish of Orleans.
C. Monies appropriated from the [New Orleans Ferry F] fund shall be used exclusively by the [DOTD][ ] to fund operations of the Chalmette Ferry and to provide service formerly operated by its Crescent City Connection Division.
The actual amount of the subsidy derived from the New Orleans Ferry Fund is subject to the Revenue Estimating Conference Forecast.
As per Exhibit K, as amended to date, since February 16, 2014 (Project Year 1) and July 1, 2023 (Project Year 11), the DOTD has transferred annually the following amounts:
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Project Year/Period |
Transfer Date |
Transfer Amounts |
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Project Year 1 |
February 16, 2014 |
$975,760 |
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Project Year 2 |
July 1, 2014 |
$5,500,000 |
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Project Year 2 |
January 1, 2015 |
$680,881 |
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Project Year 3 |
July 1, 2015 |
$4,800,000 |
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Project Year 4 |
July 1, 2016 |
$4,800,000 |
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Project Year 4 |
November 1, 2016 |
$700,000 |
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Project Year 5 |
July 1, 2017 |
$5,630,000 |
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Project Year 6 |
July 1, 2018 |
$4,000,000 |
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Project Year 7 |
July 1, 2019 |
$4,000,000 |
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Project Year 8 |
July 1, 2020 |
$6,280,000 |
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Project Year 9 |
July 1, 2021 |
$5,140,000 |
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Project Year 10 |
July 1, 2022 |
$5,140,000 |
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Project Year 11 |
July 1, 2023 |
$5,140,000 |
Since its effective date, the CEA has been amended on occasions, amongst other reasons, to add project years and/or to increase the maximum compensation payable to the RTA for each project year. The latest amendment to Exhibit K, incorporated as part of Amendment No. 10 to the CEA, maximizes compensation payable to the RTA under Purchase Order (PO) Number 2000071309, decreasing it from $99,046,641.00 to $52,786,641.00, which includes compensation for the CEA, inclusive of Amendment Nos. 1 through 10 but limiting this PO to project years 1 through 11; incorporates PO Number 2000799072 into this CEA, with a maximum compensation payable to the RTA under it to $46,260,000.00, which includes compensation for the CEA, inclusive of Amendments Nos. 1 through 10, but limiting this PO to project years 12 through 20.
Amendment No. 10 to the CEA is intended to revise Exhibit K of the CEA to add a new Purchase Order (PO) for future annual subsidies Project Years 12-20as follows:
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Project Year/Period |
Transfer Date |
Transfer Amounts |
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Project Year 12 |
July 1, 2024 |
$5,140,000 |
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Project Year 13 |
July 1, 2025 |
$5,140,000 |
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Project Year 14 |
July 1, 2026 |
$5,140,000 |
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Project Year 15 |
July 1, 2027 |
$5,140,000 |
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Project Year 16 |
July 1, 2028 |
$5,140,000 |
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Project Year 17 |
July 1, 2029 |
$5,140,000 |
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Project Year 18 |
July 1, 2030 |
$5,140,000 |
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Project Year 19 |
July 1, 2031 |
$5,140,000 |
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Project Year 20 |
July 1, 2032 |
$5,140,000 |
FINANCIAL IMPACT:
No Financial Impact
NEXT STEPS:
RTA’s management recommends that this Committee submit for the Board of Commissioner’s approval the issuance of a resolution authoring the RTA’s Chief Executive Officer to execute the corresponding amendment to the CEA, as provided in the attached draft of Amendment No. 10. The effective date will be entered by DOTD secretary upon execution of the amendment.
ATTACHMENTS:
1. Resolution
2. Amendment 10 to RTA Ferry Services Line CEA
3. RTA DOTD CEA
4. Exhibit K
Prepared By: Justin Cayless
Title: Chief Transit Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
5/1/2024
Lona Edwards Hankins Date
Chief Executive Officer