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MOU. PA 11 ARC 1
MEMORANDUM OF UNDERSTANDING
Proposition A 40% Discretionary Grant Funds
This Memorandum of Understanding (the "MOU ") is entered into by and between
City of Arcadia (the "GRANTEE ") and the Los Angeles County Metropolitan
Transportation Authority ( "LACMTA ").
WHEREAS, 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
purposes; and
WHEREAS, the LACMTA is the agency responsible for administering the tax; and
WHEREAS, each year the LACMTA may, but it is not obligated to, include in its annual
budget process an allocation of Proposition A 40% Discretionary Funds to the GRANTEE
(the "Funds "); and
WHEREAS, the GRANTEE is an eligible operator and desires to receive the FUNDS from
LACMTA for public transit purposes; and
WHEREAS, LACMTA and GRANTEE desire to agree to the terms and conditions of the
grant of FUNDS to the GRANTEE ( "MOU ").
NOW, THEREFORE, in consideration of the mutual terms and conditions contained herein,
LACMTA and Grantee hereby agree as follows:
ARTICLE 1. TERM
1.0 This MOU shall be in effect from July 1, 2010 until June 30, 2020, unless:
(a) the Proposition A Discretionary Guidelines adopted April 24, 1991 (the
Guidelines ") are revised by LACMTA prior to the expiration date, in which
case this MOU shall terminate on the effective date of the revised
Guidelines; or, (b) terminated early: (i) by either party for any reason upon
six months prior written notice; or (ii) by the LACMTA upon its decision
not to include the Funds in its annual Budget.
ARTICLE 2. USE OF FUNDS - SERVICE ADJUSTMENTS AND STANDARDS
2.0 Grantee shall utilize the Funds in accordance with the LACMTA
Proposition A 40% Discretionary Fund Guidelines (the "Guidelines ")
adopted, and in accordance with the LACMTA Board's action in
approving this grant of Funds. The Grantee agrees to comply with all
applicable provisions of the Guidelines, including without limitation, all
applicable service adjustments, standards, warranties and conditions
specified in Sections 1.1. through 8.4 of the Guidelines.
MOUTA 11 ARC 1
2.1 Grantee shall use the Funds only for operating assistance of public transit
and shall not use the Funds to substitute for any other funds, service, or
project not specified in this MOU.
2.2 Grantee agrees to continue reporting Transit Performance Measurement
(TPM) data to LACMTA as required under the TPM Guidelines adopted
pursuant to AB 103 (PUC Section 130380). The TPM data will be
evaluated as needed by LACMTA. Only the services included in the TPM
program are eligible for the Funds.
2.3 In order to receive the Funds, Grantee warrants that it will:
A. Cooperate and coordinate with other operators in the
development of an integrated county wide transportation system;
B. Make every effort to improve upon the existing span and scope
of their transit service (minimum standards are detailed in
Section 8.1 of the Guidelines);
C. Ensure that service quality improvements are implemented
whenever possible (e.g. added service to meet demand; routing
and scheduling improvements);
D. Ensure that the existing level of service is maintained and that
major service changes are subject to the adopted Service
Notification Policy;
E. Make every effort to ensure that the total number of linked
passengers (riders) is maintained or increased:
F. Certify that Grantee is not effectively precluded by any collective
bargaining agreement which is in effect on or after July 1, 1988,
from contracting existing, new or restructured services;
G. Agree to secure a local contribution as described in Section 8.3
of the Guidelines.
ARTICLE 3. PAYMENT OF FUNDS - REIMBURSEMENT TO GRANTEE
3.0 Each fiscal year, to the extent the Funds are available, LACMTA may make
to Grantee a grant of the Funds in an amount approved and authorized by the
LACMTA Board as part of the LACMTA budget for such fiscal year. The
authorized annual grant amount for each fiscal year will be specified in the
Annual Funding Marks for that fiscal year as approved by the LACMTA
MOUTA 11 ARC 1
Board. Attached as Exhibit A is the applicable Annual Funding Marks for
GRANTEE'S Proposition A 40% Discretionary funds for FY 2011. If
LACMTA staff, in coordination with the Eligible/Included Operators,
develops a mid -year reallocation of any Annual Funding Marks that is
approved by the LACMTA Board, GRANTEE hereby directs and authorizes
LACMTA to make such mid -year adjustments to its Annual Funding Marks,
as approved by the LACMTA Board, if applicable.
3.1 Requests for reimbursement to Grantee shall be made by the Grantee
annually using the Proposition A Discretionary Grant Worksheet Exhibit B.
However, the LACMTA will disburse 1/12 of the Grantee's maximum
eligible funding mark each month, provided the funds are available.
3.2 Reconciliation will occur annually in May, based upon estimated actual
expenses and revenues. All disbursements will be considered an estimate
subject to adjustment upon receipt of reporting and audit compliance
requirements (see Article 4 contained herein). The audit must be submitted
within 120 days of the close of the fiscal year.
3.3 If the audit indicates that the Grantee did not expend all the Funds received
during the fiscal year of allocation, such unexpended Funds must be returned
to LACMTA within 60 days of the completion of the financial and
compliance audit(s). Such unexpended Funds will be treated as carryover
funds and held by LACMTA on behalf of Grantee for a period of two years.
3.4 Grantee may carryover for two years, one hundred percent (100 %) of its
annual funding mark minus any portion expended during the fiscal year.
The carryover funds will be calculated after the Discretionary Grant formula
fund program's fiscal year close -out, and will be based on audited expenses.
3.5 Only carryover Program formula funds can be used for capital
projects. Grantee must follow the existing LACMTA approval process when
applying program carryover funds to capital projects.
3.6 After two years, any unused carryover funds will be transferred to the
LACMTA's general Proposition A 40% Fund and will be available for
reprogramming by the LACMTA.
3.7 Under no circumstances will the amount of money transferred to the
Grantee under this MOU exceed the monthly, (1/12) funding
allocation as listed in the applicable Annual Funding Marks.
3.8 Each year, GRANTEE shall submit one (1) invoice to LACMTA requesting
the Funds. All invoices must include information documenting the cost
of the project for the upcoming fiscal year.
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MOU TA I I ARC I
3.9 An invoice and the Proposition A Discretionary Grant Worksheet (Exhibit
B) must be submitted annually to the LACMTA by Grantee indicating
maximum annual allocation and estimated monthly payments.
ARTICLE 4. REPORTING AND AUDIT REQUIREMENTS
4.0 For the term of this MOU, Grantee shall comply with all Transportation
Development Act (TDA), State Transit Assistance (STA) and National
Transit Database (NTD) reporting requirements and shall annually submit a
completed copy of said reports to LACMTA. Grantee agrees to commit all
TDA, STA and NTD operating subsidies prior to committing the Funds.
4.1 If Grantee receives the Funds in lieu of STA and or TDA funds, the portion
of Proposition A Discretionary funds received in lieu of STA funds ( "In-
Lieu- Funds ") are subject to the STA efficiency test; and if Grantee fails the
STA efficiency test, Grantee may not use the In- Lieu -Funds for transit
operating purposes. A Grantee in receipt of In- Lieu -Funds is not required to
submit a TDA Article 4 claim form, and is therefore not subject to the TDA
reporting requirements. However, Grantee must comply with the audit
requests as prescribed by LACMTA (see Article 4.3), and comply with all
other Proposition A Discretionary Guideline provisions.
4.2 By November 1 st of each year, the Grantee shall submit to the LACMTA a
completed TPM form, which separately reports data pertaining to these
Funds and to the applicable fiscal year.
4.3 Each fiscal year, LACMTA or its designee shall have the right to conduct a
financial and compliance audit(s) of the Project. Grantee agrees to establish
and maintain proper accounting procedures and cash management records
and documents in accordance with conditions defined by this MOU and the
Guidelines.
ARTICLE 5. LOCAL CONTRIBUTION REQUIREMENT
5.0 In accordance with the Proposition A Local Return Guidelines, the Grantee
agrees to secure continued financial support from any funds derived from a
property tax. In addition, the Grantee agrees to secure local financial
support.
5.1 The actual amount of local support will be equivalent to the lesser of: (i) five
percent (5 %) of the current fiscal year operating budget, or (ii) twenty -five
percent (25 %) of the current fiscal year Local Return funds received by the
Grantee or Grantee's sponsoring municipality, as applicable. The Grantee
agrees that the above requirements equate to a local contribution as stated in
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MOUTAHARC1
the fiscal worksheet Exhibit B. This amount will be adjusted upon receipt
of the financial and compliance audit(s).
5.2 Only local contributions made to the operating budget are eligible to meet
the Local Contribution Requirement.
5.3 Any Grantee not expending an amount equal to or greater than fifty percent
(50 %) of the annual Proposition A Local Return allocation during the year
ended June 30 will have the Funds described in the Annual Funding Marks
for the applicable fiscal year reduced by the amount of unexpended annual
Proposition A Local Return funds allocated which exceed fifty percent of
that year's allocation.
5.3 If the Local Contribution Requirement is not met, the Grantee must make a
full refund of the Funds for the applicable fiscal year to LACMTA.
ARTICLE 6. CONDITIONS
6.0 This grant is subject to the terms and conditions agreed herein and in
the Guidelines. The LACMTA, at its discretion, may withhold all or
part of the Grantee's discretionary grant allocation if all conditions
identified in Section 8 of the Guidelines are not met. This grant does
not imply nor obligate any future funding commitment on the part of
LACMTA.
6.1 Grantee agrees to comply with all applicable local, state and federal laws,
rules and regulations in the provision of public transit services.
6.2 Grantee understands and agrees that in programming these Funds and
entering into this MOU, LACMTA is acting pursuant to its statutory
authority and shall have no liability in connection with the use of these
Funds for public transit purposes. Grantee agrees to indemnify LACMTA
for all liability arising out of Grantee's use of the Funds and Grantee's
performance in the provision of public transit services paid for by these
Funds.
6.3 Grantee is not a contractor, agent or employee of the LACMTA. Grantee
shall not represent itself as a contractor, agent or employee of the LACMTA
and shall have no power to bind the LACMTA in contract or otherwise.
6.4 No amendment or modification to this MOU shall be binding upon either
party unless such amendment or modification is in writing duly executed by
both parties. This MOU shall not be amended or modified by any acts or
conduct of the parties.
MOUTA H ARC 1
ARTICLE 7. PENALTIES
7.0 The LACMTA reserves the right to terminate this MOU and withhold Funds
if it is determined that the Grantee has not made every effort to adhere to all
warranties and conditions identified in the Guidelines. In addition, the
LACMTA reserves the right to terminate this MOU in the event of
continued and/or gross violations of this MOU.
7.1 Any withholding of Funds, termination of the MOU, or imposition of any
financial penalty against Grantee under the Guidelines is subject to a two -
thirds affirmative vote of the LACMTA governing board.
MOU.PA 11 ARC 1
IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of
Understanding to be duly executed as of the dates below with all the formalities required by
law.
CITY OF ARCADIA
By: ..Ten. � paly �
Donald Penman
City Manager
Date: p-M 10
ATTEST:
By:
Name: Lisa Mussenden
Title: Chief Deputy City Clerk
Date: 9-q - td
APPROVED AS TO FORM:
By:
Steph n P. Deitsch
City Attorney
fd
LOS ANGELES COUNTY
METROPOLITAN
TRANSPORTATION AUTHORITY
tk--
By:
rthur T"
Chief Executive Officer
Date:
APPROVED AS TO FORM:
ANDREA SHERIDAN ORDIN
County Counsel
Exhibit A
LACMTA
PROPOSITION A 40% DISCRETIONARY
FISCAL YEAR 2011
Operators
Prop A Disc.
95% of 40%
Capped at CPI
Formula
Equivalent Funds
+ Prop A Disc.
95% of 40%
Growth over CPI
City of Arcadia
$155,531
City of Claremont
$74,493
City of Commerce
$140,388
City of Culver City
$2,713,145
Foothill Transit
$12,740,785
City of Gardena
$2,971,900
City of La Mirada
$80,573
Long Beach Transit
$12,318,671
City of Montebello
$4,372,577
City of Norwalk
$1,750,343
City of Redondo Beach
$302,320
City of Santa Monica
$10,738,547
City of Torrance
$3,361,973
Antelope Valley Transit Authority
$4,002,902
City of Santa Clarita
$4,046,511
City of Los Angeles Department of Transportation
$15,333,291
Foothill Transit BSCP
$3,457,950
Local Programming Policy Analysis Board approved June 24, 2010
Exhibit B
FY 2011 Proposition A Discretionary Grant Worksheet
Claimant: Date:
Mode: Contact:
(Bus, DAR, Rail, or System Total)
SOURCE OF OPERATING FUNDS: Maximum Estimated
Annual Monthly
Allocation Payment
FEDERAL: CASH: GRANTS :A.N..D :: ElMgUkStMENtS,: ... ...::..:.:.
FT Sec. 5307 (Sec. 9) Operating
CMAQ (Operating)
-
TDA Current from unallocated
Costs per VSH
STA Current from unallocated
% Chan eNSH
Other State (Specify)
5% Operating Expenses
_-
......................
Passenger Fares
Costs per VSH
Special Transit Service
% Chan eNSH
Charter Service Revenues
5% Operating Expenses
Auxiliary Transportation Revenues
25% of Local Return Funds
Non-transportation Revenues
Prop. A 40% Discretionary
Prop. A 25% Local Return
Prop. A Incentive fund
Prop. A Interest
BSIP
TSE
Base
MOSIP
Prop. C 40% Discretionary
Prop. C 20% Local Return
Prop. C 5% Security
Prop. C Interest
Measure R 20%
Measure R 15%
Other Local S eci )
TOTAL OPERATING REVENUES
TOTAL OPERATING EXPENSES
Vehicle Service Hours VSH)
Costs per VSH
% Chan eNSH
Maintenance of Effort
5% Operating Expenses
25% of Local Return Funds