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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