HomeMy WebLinkAbout1992-04-21 - AGENDA REPORTS - MOU LACTC LOAN PROPOITION FUND (2)AGENDA REPORT
_CONSENT CALENDAR
DATE: April 21, 1992
City Manager Apprc
Item to be presented
SUBJECT: MOU WITH THE LACTC FOR THE LOAN OF PROPOSITION A
FUNDS
DEPARTMENT: Public Works
BACKGROUND
At their September 24, 1991 meeting, the City Council took action subject to the City
Attorney's approval, which authorized the City Manager and the City Attorney to execute a
Memorandum of Understanding with the Los Angeles County Transportation Commission for
the loan of $2.5 million for the construction for the Commuter Rail Station.
This loan program was implemented by the LACTC because Proposition C funding, which
could be used for Rail Station purposes is currently in litigation. Proposition C funds are the
City's main funding source for the Rail Station construction and possible future land
acquisition funds. The MOU stipulates that the LACTC would loan the City Proposition A
funds and this loan would ultimately be paid back by Proposition C Local Return Funds.
However, in the MOU a provision exists that in the event that Proposition C is struck down
by the courts, the loan would then be repaid with the TDA funds, Proposition A funds or
General Fund money. At this time, staff finds this to be acceptable considering that
Proposition A and TDA funds have been reduced by 20% and that these funds are committed
to capital debt service for the buses and the operation of our transit system and any
possibility of reducing those funds would significantly impact our transit service in the Santa
Clarita Valley.
City staff and the City Attorney's office have been working with the LACTC to strike the
provision requiring the backing of the loan with TDA or Proposition A funds. To date we
have ongoing meetings on this subject. Both sides are committed to creatively work through
the MOU so minimal risk is involved for either party.
APPROVED Agenda ltem:.�PiiA7
MOU With LACTC for Loan of Prop A Funds
April 21, 1992
Page 2
Staff brings this report to Council's attention for their information and will continue to work
towards an amenable and acceptable way of securing the Proposition A loan from the
LACTC.
RECOMMENDATION
Receive and file.
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