SR-912-000 (16)
EPWM: CC: AA: LF: DP: F:\DATA\SPFILES\Sp1681\cc1681PSFpropC.DOC
City Council Meeting: April 22, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Change in Budget Authority For Construction of Olympic Drive
Introduction
This report recommends that the City Council appropriate $140,000 in interest earned on
the City?s capital reserve for the construction of Olympic Drive. These funds must be spent
by June 30, 2003.
Background
Los Angeles County voters approved Proposition C on November 6, 1990, authorizing a
half percent sales tax increase to fund transportation-related projects. One component of
the Proposition is a local-return funding source, which is distributed monthly by the
Metropolitan Transportation Authority (MTA) to local cities and to Los Angeles County.
Under the MTA guidelines, Proposition C funds must be spent within three years after
receipt.
In 1995, the City received approval to utilize these funds on the Olympic Drive Extension
project, which will provide drive-thru transit access to the Civic Center by completion of a
new street between Main and Forth Streets. This project is one of the final phases of the
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Public Safety Facility project and is currently under construction and will be completed by
June 30, 2003. On May 22, 2001 the Council authorized the City to enter into a
Memorandum of Understanding (MOU) to preserve the funds for this project in a Capital
Reserve account. All capital reserve funds and interest for this project must be spent by
June 30, 2003.
Discussion
Since the establishment of the Capital Reserve account, the City has been earning interest
on the funds budgeted for the Olympic Drive portion of the Public Safety Facility project.
MTA guidelines require that any interest earned on a Capital Reserve account must be
used on the same project for which the principal balance is budgeted. To date, the City has
earned $139,063 in interest on these funds, which should now be appropriated to the grant
account and spent on the Olympic Drive project. This appropriation will allow for an equal
reduction in general fund dollars budgeted for the project.
Budget/Financial Impact
Funds in the amount of $140,000 are available for appropriation to account
C20062000.589000, ?Olympic Drive Extension.? These funds will be offset by interest
earned on Proposition C Funds in revenue account 20224.400754, ?Prop C ? Local
Return.? With this appropriation, capital account C01005801.589000 can be reduced by
$140,000.
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Recommendation
Staff recommends that the City Council appropriate $140,000 Proposition C ? Local
Return interest for use on the construction of Olympic Drive and approve related
budget changes described.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Lauren Friedman, Principal Architect
Donald Patterson, Sr. Administrative Analyst
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