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SR-072308-1GCity Council Report City of Santa Moniea" City Council Meeting: July 23, 2008 Agenda Item: ~_~ To: Mayor and City Council From: Lee E. Swain, Director of Public Works Stephanie Negriff, Director of Transit Services Subject: Memorandum of Understanding with the Los Angeles County Metropolitan Transportation Authority to Establish a Capital Reserve Account for the 20th and Cloverfield and Bus Stop and Shelter Improvement Projects Recommended Action Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with the Los Angeles County Metropolitan Transportation Authority (Metro) to establish a Capital Reserve Account for the 20th and Cloverfield and the Bus Stop and Shelter Improvement Projects. Executive Summary The Proposition A and Proposition C programs are funded by two half cent sales tax measures approved by Los Angeles County voters to finance public transit, paratransit, and related transportation infrastructure projects. The Proposition A tax measure was approved in 1980 and the Proposition C tax measure was approved in 1990. Funds are distributed monthly by Metro to local cities. Per the Proposition A and C Local Return guidelines, jurisdictions may establish a Capital Reserve Account for. large capital projects. $1,000,000 of its Proposition C funds for the 20th and Cloverfield Improvement Project and $1,500,000 of its Proposition A funds for the Bus Stop and Shelter Improvement Project are programmed in existing capital project accounts. The execution of the attached resolution is required to establish the Capital Reserve Account. Discussion The City receives approximately $1.4 million in Proposition A funds and $1.2 million in Proposition C Local Returns funds annually. Once received, the City has three years to spend the funds which have historically been used for capital projects and recreational transit for various groups, such as youth and seniors. The City has always been able to 1 meet its annual spending obligations. However, in order to more effectively manage the grant funds and to preserve the funds already allocated to two large projects, 20t" and Cloverfield Improvement Project and the Bus Stop and Shelter Improvement Program, staff has worked with the Metropolitan Transportation Authority to .establish capital reserve accounts. The establishment of the accounts preserves the funds, while removing the funds from the annual expenditure requirement. This allows the City to better. manage the funds and to use significant amounts of funding for individual projects. The Metro Board approved the establishment of the Capital Reserve Account at its meeting on June 26, 2008. The City has until June 30, 2011 to complete the above projects included in the Capital Reserve Account and comply with all standard administrative requirements involving the expenditure of the Proposition A and C Local Return funds within these accounts. The execution of the attached resolution is the final step in the process necessary to establish the Capital Reserve Account. 20t" & Cloverfield Since 2004, the. City has budgeted a total of $5,500,000 for the 20t" and Cloverfield Improvement Project. It is anticipated that a concept design will be presented to Council in early fall. The establishment of a $1 million Capital Reserve Account enables the City to set aside the funds necessary to complete construction of the project without impactirig other Proposition C Local Return funding expenditure deadlines. The project. will provide street, bus stop and pedestrian improvements along 20~" Street, from Pico Boulevard to the I-10 freeway. Bus Stop. and Shelter Improvement Proiect The Bus Stop and Shelter Improvement Program, will provide system-wide improvements to bus stops, including lighting, benches, bus shelters, installation of a new uniform signage system and real-time traffic information. This is a multiphase project to be implemented over the next three years.. The $1.5 million Capital Reserve Account ensures the funds will be available for this project and supports the City's local 2 match to a $2.4 million Federal Transportation Administration Urbanized Area Formula Section 5307 Grant. Big Blue Bus will program future Section 5307 formula allocations to this project. In addition, Big Blue Bus will also continue to competefor federal discretionary funds: The estimated project cost is approximately $7 million. Financial Impacts & Budget Actions There is no budget or financial impacts to execute this MOU, funds for the projects are in existing capital improvement program accounts. Prepared by: Margaret Talamantes, Senior Administrative Analyst Gretchen Kubacky, Senior Administrative Analyst Approved: Lee E. Swain Director of Public Works Forwarded to Council: .Il~~ ~~_ St pt,~a~e Negriff Director of Transit Services Attachment: Resolution 3 ager Reference Contract No. 8957 (CCS) and Resolution No. 10326 (ccs).