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HomeMy WebLinkAbout1993-11-23 - AGENDA REPORTS - PROPOSITION C FY 93-94 (2)AGENDA REPORT Manager Approval to be presented by, CONSENT CALENDAR DATE: November 23, 1993 SUBJECT: PROPOSITION C DISCRETIONARY MEMORANDUM OF UNDERSTANDING FY 93-94 DEPARTMENT: Public Works BACKGROUND The voters of the County of Los Angeles approved by majority vote Proposition C, an ordinance establishing a one-half percent sales tax for public transit purposes on November 6, 1990. The City of Santa Clarita Transit is an eligible operator and as such, in order to mitigate the recession revenue shortfall, will receive grant funds from Los Angeles County Metropolitan Transportation Authority (MTA), the responsible administrator of the tax. The funds in the amount of $138,445 will be disbursed in twelve monthly payments of $11,537.08 after the City submits an invoice. Of this funding amount, $87,368 had previously been included in the budget, therefore, at this time we are adjusting for additional funds. RECOMMENDATION That the City Council Review and approve the attached Memorandum of Understanding (MOU), subject to the City Attorney's approval, and, adopt said MOU 2. Amend the 1993-94 Budget to increase Revenue Account 17-3577 by $51,077 and Appropriation Account 55-1700-227 by $51,077 as well as conduct appropriate transfers within funds. ATTACHMENT Memorandum of Understanding Agenda Item: I MEMORANDUM OF UNDERSTANDING WHEREAS, on November 6, 1990, the voters of the County of.Los Angeles approved by majority vote Proposition C, an ordinance establishing a one-half percent sales tax for public transit purposes; and WHEREAS, Los Angeles County Metropolitan Transportation Authority("MTA"), is responsible for the administration of the tax; and WHEREAS, at its meeting of the governing board on June 30, 1993, MTA approved a one time appropriation of Proposition C Discretionary funds (the. "FUNDS"), to the Los Angeles County Metropolitan Transportation Authority ("MTA") Operations Unit and other eligible operators to assist in mitigating the recession revenue shortfall in order to eliminate any need for significant service reductions or fare increases for the Fiscal Year 1994; and WHEREAS, the Santa Clarita Transit ("GRANTEE"), is an eligible operator and desires to receive the FUNDS for MTA; and WHEREAS, MTA and GRANTEE desire to agree to the terms and conditions of the grant of FUNDS. NOW, THEREFORE, in consideration of the mutual terms and conditions contained herein, MTA and GRANTEE hereby agree as follows: 1. Term. This Memorandum of Understanding ("MOU"), will be in effect from July 1, 1993 through June 30, 1994. 2a. Payment of FUNDS. To the extent the FUNDS are available, MTA shall pay to GRANTEE a one time grant of the FUNDS in the amount of One Hundred Thirty Eight Thousand Four Hundred and Forty Five Dollars ($138,445). This one time grant shall be prorated over a twelve (12) month period. MTA shall make twelve (12) monthly disbursements in the amount of $11.537.08 each. 2b. Invoice by GRANTEE. GRANTEE shall submit an invoice to MTA requesting the FUNDS in the amount of One Hundred Thirty Eight Thousand Four Hundred and Fortv Five Dollars ($138,445). 2c. GRANTEE shall send the invoice to MTA at 818 West Seventh Street, Suite 1100, Los Angeles, California 90017, ATTN: Mr. Terry Matsumoto, with a copy to your area team representative. 3. Use of FUNDS. A. GRANTEE shall use the FUNDS to assist in mitigating the recession revenue shortfall in order to eliminate any need for significant service reductions or fare increases for the Fiscal Year 1994. B. GRANTEE shall not use the FUNDS to substitute for other funds; provided, however, GRANTEE may use the FUNDS to substitute for the following funds only: (i) Formula Allocation Procedure funds; (ii) Proposition A Discretionary funds; (iii) if GRANTEE has incurred debts or is planning to incur debts to balance Fiscal Year 1994 operating and capital budgets, GRANTEE may use the FUNDS in lieu of such borrowings; and/or (iv) Proposition A & C Local Return funds budgeted in Fiscal Year 1994 which were originally programmed as operating revenues and which have been reprogrammed for capital purposes; provided, however, the total amount of FUNDS budgeted in Fiscal Year 1994 as operating revenues does not decrease as a result of such reprogramming and the Maintenance of Effort continues to be met. 4. Reporting and Audit Requirements. MTA shall have the right to audit the books and records of GRANTEE for the Fiscal Year 1993-94 with regard to the FUNDS. GRANTEE shall comply with the Federal UMTA Section 15 reporting requirements. 5. One Time Grant. This is a one time only grant to deal with the specific Fiscal Year 1994 revenue shortfall. The requirements described in the Proposition C Discretionary Guidelines adopted by the MTA, including, without limitation, submittal and approval requirements, are not modified or waived as to other grants of Proposition C Discretionary funds. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be duly executed as of the dates below with all the formalities required by the law. SANTA CLARITA TRANSIT: BY: GEORGE CARAVALHO CITY MANAGER DATE: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY I -vii FRANKLIN E. WHITE CHIEF EXECUTIVE DIRECTOR DATE: APPROVED TO FORM: DeWitt W. Clinton County Counsel BY: Deputy