HomeMy WebLinkAboutItem 1f: MOU with LA County MTA to Receive Transit Formula Allocation Program FundsDATE: November 3, 2009
TO: Mayor and City Council
STAFF REPORT
FROM: Jason Kruckeberg, Development Services Director
Phil Wray, Deputy Director of Development Services
Prepared by: Linda Hui, Transportation Services Manager
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE MEMORANDA
OF UNDERSTANDING WITH THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY TO RECEIVE
TRANSIT FORMULA ALLOCATION PROGRAM FUNDS
Recommendation: Approve
SUMMARY
Arcadia Transit is a member of the Los Angeles County Metropolitan Transportation
Authority (LACMTA) Included Municipal Bus Operators. As one of 13 included bus
operators, the City is eligible to receive annual transit funds through the Formula
Allocation Program (FAP). The FAP is determined by established criteria including
service cost effectiveness, efficiency, and population. The LACMTA determines the
allocation amount based on the criteria and distributes the funds to all eligible bus
operators. In order to receive these funds, bus operators including the City of Arcadia
are required to enter into a Memorandum of Understanding (MOU) for each type of
funding. The MOUs are for one or more years and routine in nature. In the past, staff
routinely often brought individual MOUs to the City Council for approval resulting in
longer processing time. In order to streamline the approval process, staff requests that
an authorization be given to the City Manager to execute these MOUs with the LACMTA
annually or as needed. This authorization will be void if future MOUs have significant
changes that may adversely impact the City.
Staff recommends that the City Council authorize the City Manager to execute MOUs
with the LACMTA to receive transit Formula Allocation Program funds.
BACKGROUND
Development Services Department
On November 4, 1980, the voters of Los Angeles County approved by majority
Proposition A, an ordinance establishing a one -half percent sales tax for public transit.
The LACMTA is the agency responsible for administering the tax. Of the Proposition A
funds, 40% is discretionary and dedicated to fund the transit needs of the included bus
Staff Report
MOU with LACMTA
November 3, 2009
Page 2
operators. Each year, the LACMTA includes in its annual budget process an allocation
of Proposition A 40% discretionary funds to the included bus operators.
On November 6, 1990, the voters of Los Angeles County approved by majority
Proposition C, an ordinance establishing a one -half percent sales tax for public transit
purposes. The LACMTA is responsible for administering the tax. Forty percent (40
of Proposition C funds were established as discretionary funds, and used as the funding
source for the following transit programs: Proposition C Interest Funds, Transit Service
Expansion, Foothill Transit Mitigation, Recession Mitigation, Fair Share Allocation, Bus
System Improvement Plan, Base Restructuring and Municipal Operator Service
Improvement Program. On occasions, the Proposition C 40% Discretionary funds are
used to backfill state or federal funding shortfalls.
On November 4, 2009, the voters of Los Angeles County approved by a two -third
majority Measure R, an ordinance establishing a one -half percent sales tax for public
transit purposes. The LACMTA is responsible for administering the tax. Twenty
percent (20 of Measure R funding is dedicated to the included bus operators for
transit improvements.
These transit funds are distributed annually to the included bus operators through a
formula allocation program.
DISCUSSION
Every year LACMTA requires the City to enter into an MOU for each source of Transit
funds. The MOU language is standard and routine. Normally the MOU provisions
include: term of the MOU, allocation and invoicing procedure, use of funds, audit and
reporting requirements, and miscellaneous items such as complying with all applicable
local, state and federal laws and regulations.
Staff historically brought these MOUs before the City Council for approval. The Council
approval process usually added two to three weeks to the approval processing time.
The LACMTA does not require City Council resolutions for execution of these MOUs.
Staff recommends that the City Council authorize the City Manager to execute MOUs
with the LACMTA to receive transit Formula Allocation Program funds. Allowing the
City Manager to execute the MOUs will streamline the approval process and expedite
fund reimbursements.
FISCAL IMPACT
There will be no fiscal impact.
Staff Report
MOU with LACMTA
November 3, 2009
Page 3
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to execute
Memoranda of Understanding with the Los Angeles County Metropolitan Transportation
Authority to receive transit Formula Allocation Program funds.
Approved by:
JK:PAW:LH:pa
Donald Penman, City Manager