SR-072308-1G (2)City 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
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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
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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).