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DESCRIPTION: CEA between the State of Louisiana and the Regional Transit Authority for the Ferry Operations and Maintenance. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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To authorize the Chief Executive Officer (CEO) to receive and execute a Cooperative Endeavor Agreement (CEA) between the State of Louisiana (State) and the Regional Transit Authority (RTA) for the Ferry Operations and Maintenance.
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ISSUE/BACKGROUND:
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A CEA between the State and RTA is needed to set forth the terms of administering funds for the Ferry Operations and Maintenance.
Prior to the 2023 State budget cycle, the RTA projected a $19,800,000 Ferry Operations budget shortfall for FY 2024. As a cost saving measure, the RTA took the second Chalmette Ferry vessel out of service to avoid $6,000,000 in repair costs which were scheduled for next year. The agency received $10,000,000 in House Bill 1 to partially cover the cost of Canal Street - Algiers Point Ferry and Lower Algiers-Chalmette Ferry Service. The RTA’s local sales tax funding was established with the intent purpose of funding streetcars and bus service and cannot be used to fund Ferry Operations.
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DISCUSSION:
The RTA has made revenue and expense projections that comprehensively demonstrate the agency’s critical Ferry Service fiscal cliff. If no action is taken this legislative cycle, and the RTA continues its current level of service, the agency is projected to realize an $123,000,000 Ferry deficit by 2028. To reduce these costs, the RTA has provided projections based on taking the Levy out of revenue service and discontinuing service to the Canal-Algiers Point Ferry Service to help guide conversations about Ferry Service in the future.
FINANCIAL IMPACT:
The RTA was awarded $10,000,000 in House Bill 1 by the Louisiana Legislature.
The total Financial Impact for this agreement is a $10,000,000 benefit to the RTA.
NEXT STEPS:
Upon Board approval, CEO will execute the CEA between the State and RTA. During the performance of this CEA, staff will conduct ongoing dialogue to the RTA Board.
ATTACHMENTS:
1. RTA Board Resolution
2. Louisiana House Bill 1
3. CEA
Prepared By: Jessica M. Lang
Title: Finance Administrative Analyst
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
12/4/2023
Lona Edwards Hankins Date
Chief Executive Officer