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SR-1000-001-01 (2) ,j '\ . TD:JFH'LB;dag Council Meet1ng: A.ugus t 24, 1982 I'" J ,) i\)___ ! V 15D! _ 1)' Ita ~"mca, Califorma 6 - F AUG 2 4 1982 /~<- TO: Mayor and CIty Counc~l FRO}.1- CIty Staff --.. - , \.... , - ,i SUBJECT: AUTHORIZE THE CITY ~k~AGER TO FILE ~SSURA~CES k~D APPLICATIO~ WITH THE LOS ANGELES COUNTY TR~SPORTATIO~ CO~~lISSION TO ENABLE THE CITY TO RECEIVE PROPOSITION "N' LOCAL RETUR~ FUNDS IntroductIon In order for the CIty to receIve Its share of the PropOSItIon t'A," local return funds, the City CounCIl must authorIze the CIty ~1anager to execute standard assurances requIred by the Los 4ngeles County TransportatIon CommlsSlon(LACTC}, as well as an applIcatIon specIfYIng the use to WhICh the funds wIll be put, ThIS report recommends that the CIty CounCIl authorIze the CIty Manager to fIle the assurances and applIcatIon. Background Under the local return prOVISIons of PropOSItIon A, the CIty of Santa MonIca may receIve $827,586 thIS year for local transportat1on purposes. These funds come from the 25% share of the new half-cent sales tax increase, WhICh under Proposl- t10n ~ IS returned to the CItIes and un~ncorporated areas of Los Angeles County. Santa ~onlcals share has been calculated by the Los Angeles County Transportation Comm~ssion, the agency responsible for dIstributing and monItorIng PropositIon A funds based on the CIty'S populatIon. In lts role as d1strIbut1ng agency, the LACTC has also establIshed gUIdelInes and applicatlon procedures for use of these funds, which are commonly referred to as Irlocal return funds.1r In order to be el1gIble for "local return funds", the Clty first must authorIze the C1 ty Ivlanager to execute the standard "Assurances and UnderstandIngs RegardIng ReceIpt and Use of PropOSItion A Funds." ThIS document must be executed and returned to the CommISSIon by September 1, 1982. b -p:- AUB 2 4 1982 - "" .,. e e To. ~ayor and Clty CouncIl -2- August 24, 1982 After fll1ng the assurances, the Clty may apply for "local return funds" by flling an appllcatlon for each lntended use of the funds. The Clty may fIle as many appllcatlons as It wIshes durlng the year as long as It does not re- quest an amount greater than ItS allocatlon. Unused funds may be carrled over for a maXImum of three years beyond the year of allocatIon. Currently, the City has Identified hiO proJects for PrOposltlon 'fA" asslstance. Flrst, the CIty CouncIl approved the use of $550,000 from the funds to delay until July 1, 1983 the need for a fare Increase, orIg1nally proJected for the second half of FY 1983. The second appllcatlon, In the amount of $5,490, would permlt contlnued Clty support of transportatIon to the hot lunch program. The rema1nlng $272,096 WIll be held for future proJects. Recommendation CIty staff recommends that the CIty CouncIl authorlze the Clty Manager to execute the assurances requIred by the Los ~ngeles County TransportatIon CommIsSIon. In addltlon, staff recommends that the C1ty CouncIl author1ze the C1ty Manager to fIle t\..-o applIcatIons for funding under Propos1tlon 11A,", one, ln the amount of $550,000, to help delay the need for a fare Increase, the other, In the amount of $5,490 to permlt CIty support 1n FY 1983 for transportatIon to the hot lunch pro- gram. Prepared by: J. F. HutchIson D1rector of TransportatIon Lynne Barrette Deputy CIty Manager ~ " ~ e - ~-~ ASSURANCES AND UNDERST_~~DINGS REGhRDING RECEIPT ~21D USE OF PROPOSITION A FUNDS The u~dersigned, in conjunction with the receipt of fu~ds derived from the one-half cent sales tax iITposed by Ordinance r;~. 16 (Prop. A) of the Los Angeles County Transportation Co~~~ssion (Co~ission), and as required by the COwuiRsion's Local Return Program Guidelines, hereby provides the following assu=ances and understandings. A. The undersigned hereby assures the CORmission: 1. That Prop. A funds will not be substituted for pro?er~y tax funds which are currently funding existing public transportation programs; 2. That Prop: A funds will be used for public transit purposes' as defined in the Co~~issio~'s Local Return Progr~~ Guide- lines; - 3. That the undersigned will submit to the Cow~ission a description or the use of funds: a. For service expansion O~ new service: at leas~ 60 days before enc~~rance of fundsi b. for other projects: at least 30 days before enctL:brance of funds; - ~ 4. Any proposed use of funds will not duplicate or cOwpete with any existing publicly-funded transit or paratransit service; 5. That Prop. A funds will be used within the year of receipt plus three years thereafter unless specific perMission for a time extension is granted by the Cow~ission; 6. That the unde~signed will submi~ to the Co~nission an annual preliminary report on use of funds withi~ 90 days of the close of the fiscal year; 7. Unless othenv~se required by the Commission, an audited report, certiiied by a Certified Public Accountant, will be subillitted to the C~mrnission within 180 days of the close of the I15cal year and that this report ~ill be paid for out of the underslgned's Prop. A funes; 8. That the description of the intended use of the fQ~ds, as submitted to the Commission, is an accurate depiction of the project to be implemented; e e ~. . , ; \, 9. That any change in project scope of financing, defined as a 10% increase or decrease in project area, mileage or funds, will be submitted to the co~~ission not more than 30 days after the decision to change scope and in any case at least 60 days before that change in scope is implemented; 10. That all projects proposed for Prop. A funding will'meet the legal requirements of the Co~~issionJs Prop. A Ordinance and the Co~mission's Local Return Program Guidelines criteria. B. The undersigned further understands an~agrees: 1. That the Commission will require the undersigned to return any Prop. A funds and may impose interest penalties on any expenditure found to be illegal or improper under the terms of the commission's Prop. A Ordinance or the COll~S- sian's Local Return Program Guidelines; 2. That the undersigned will ass~~ al~ responsibilities for compliance with applicable CEQA and NEPA requirements regarding projects to be funded in part or in whole with Prop. A funds; 3. That the undersigned will comply with all applicable federal, state and local requirements as to affirmative action, fair labor practices and public health and safety; 4. That the undersigned will either utilize the State Con- troller's Uniform System of Accounts and Records to accommodate uses and disbursements of Prop. A funds or _ will establish a separate Prop. A Local Transit Assistanc~ (PALTA) accounting system which will allow financial and cOffi?liance audits of Prop. A fund transactions and expen- ditures to be conducted; 5. That any Prop. A funds not encumbered within the year of receipt of funds plus three years thereafter, or as may be extended by the Commission, wi~l be returned to the Commission upon request therefrom. IN WITNESS ~mEREOF the undersigned has executed this "Assurances and Understandings Regarding Receip~ and Use of Proposition A Fundsft this day of , 19 by its duly authorized off~cer: CITY OF BY (TiTLE} DATE