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HomeMy WebLinkAbout1995-12-12 - AGENDA REPORTS - MOU LACO TRANS FUNDS (2)AGENDA REPORT City Manager Approv A� Item to be presented by: Lynn M. Harris CONSENT CALENDAR DATE: December 12, 1995 SUBJECT, MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY TO APPROVE THE USE OF PROPOSITION A DISCRETIONARY FUNDS DEPARTMENT: Public Works BACKGROUND Proposition A Discretionary funding is part of a voter -approved countywide ballot measure passed in 1980, The measure authorized a one-half percent (0.05%) sales tax increase to be used for public transit purposes. The City's transit system uses some of the funding from this source for operating assistance related to fixed -route bus service. The Los Angeles County Metropolitan Transportation Authority (LACMTA), administers Proposition A funds. The attached Memorandum of Understanding (MOU) is the appropriate instrument, as determined by the LACMTA, to approve and disburse funds. The MOU will guide fund disbursement through June 1996. For the 1995-1996 fiscal year, a maximum of $860,857 will be awarded to the City. RECOMMENDATION Approve the attached agreement between the City and LACMTA and authorize the City Manager to sign on behalf of the City. P;\HOMEPV CCAGENDANROPADISAGN APPROVED Agenda Item:—! — PROPOSITION A DISCRETIONARY INCENTIVE GRANT PROGRAM MEMORANDUM OF UNDERSTANDING WHEREAS, on November 14, 1980, the voters of the County of Los Angles approved by majority vote Proposition A, an ordinance establishing a one-half percent sales tax for public transit purposes; and WHEREAS, the Los Angeles County Metropolitan Transportation Authority ("MTA"), as the agency responsible for administering the tax, has entered into an agreement with the California State Board of Equalization for administration of the tax; and WHEREAS, the City of Santa Clarita ("GRANTEE") has requested funds under the Proposition A Discretionary Incentive Program ("Program") to be expended as provided herein in accordance with the requirements of the Proposition A 40% Discretionary Incentive Grant Program Guidelines ("Guidelines") adopted April 24, 1991; and WHEREAS, at its July 26, 1995 meeting, the MTA authorized the GRANTEE to receive funds under the Program; and WHEREAS, the MTA has approved the following goals for implementation of the Program: • Minimize fare increases; • Minimize service cutbacks; and • Improve transit operator efficiency and effectiveness. NOW, THEREFORE, MTA and GRANTEE hereby agree to the following terms and procedures for transfer of the Discretionary Incentive Grant funds (Program Funds): ARTICLE 1 TERM 1.0 This Memorandum of Understanding ("MOU") will be in effect from July 1, 1995 through June 30, 1996, unless the Guidelines are revised by the MTA prior to the expiration date. In the event the Guidelines are so revised, this agreement shall terminate on the effective date of the revised Guidelines. ARTICLE 2. SERVICE ADJUSTMENTS AND STANDARDS 2.0 The GRANTEE agrees to comply with all applicable service adjustments, standards, warranties and conditions specified in Sections 1.1 through 8.4 of the Guidelines. Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 2 of 7 2.1 The GRANTEE agrees that for the fixed -route operations described on Attachment A, the following minimum service standards will be maintained within the GRANTEE's service area: • Hours of operations - The system shall be in operation on weekdays during the hours of 6:00 a.m. 7:00 p.m. • Availability - It is the responsibility of the GRANTEE to ensure that transit service is provided in the GRANTEE's service area within one mile of 95% of the residents no less frequently than hourly. However, the GRANTEE does not have to be the provider of that service. 2.2 Program funds can be used to provide additional general public service on existing lines or to expand hours of service. In accordance with the Service Notification Policy adopted by the MTA, and which is hereby incorporated into this MOU by reference, the GRANTEE agrees to notify affected jurisdictions of eliminations or significant reductions in service at least ninety (90) days in advance.. Refer to the MTA's Service Notification Policy for details. 2.3 GRANTEE agrees to continue reporting Transit Performance Measurement (TPM) data to MTA as required under the TPM Guidelines adopted pursuant to AB 103 (PUC Section 130380), The TPM data will be evaluated as needed by MTA, Only the services included in the TPM program are eligible for Program funds. 2.4 In order to receive Program funds, GRANTEE guarantees that it will comply with the warranties specified in the Guidelines, including without limitation: A. Cooperate and coordinate with other operators in the development of an integrated countywide transportation system; B. Make every effort to improve upon the existing span and scope of their transit service (minimum standards are detailed in Section 8.1 of the Guidelines); Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 3 of 7 C. Ensure that service quality improvements are implemented wherever possible (e.g., added service to meet demand; routing and scheduling improvements); D. Ensure that the existing level of service is maintained and that major service changes are subject to the adopted Service Notification Policy; E. Make every effort to ensure that the total number of linked passengers (riders) is maintained or increased; F. Certify that they are not effectively precluded by any collective bargaining agreement which is in effect on or after July 1, 1988, from contracting existing, new or restructuring services; G. Make every effort to control operating costs within the Consumer Price Index (CPI) on an average over time, in order to keep base fare increases within the CPI increase; H. Agree to secure a local contribution as described in Section 8.3 of the Guidelines. ARTICLE 3. TRANSFER OF FUNDS TO GRANTEE 3.0 GRANTEE shall request Program funds annually using the Program Worksheet (Attachment B). The MTA will disburse Program funds monthly, provided funds are available. 3.1 MTA will reconcile GRANTEE'S records annually in May, based upon estimated actual expenses and revenues. All disbursements will be considered an estimate subject to adjustment upon receipt of the required Fiscal and Compliance audits. The audit must be submitted within 120 days of the close of the fiscal year. MTA shall have the right to conduct a financial and compliance audit of the Project, 3.2 If the audit indicates GRANTEE did not expend all Program funds received during the fiscal year of allocation, such unexpended funds must be returned to MTA within 60 days of the completion of the required Fiscal and Compliance audits performed either by the MTA or the GRANTEE. Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 4 of 7 3,3 Under no circumstances will the Program funds transferred to the GRANTEE under this agreement exceed $ 71,738.09 per month, or $860.857 for the fiscal year. 3.4 A financial worksheet must be submitted annually by GRANTEE indicating maximum annual allocation and estimated monthly payments. 3.5 The GRANTEE's final approved financial plan will be attached to this MOU upon approval by the Chief Executive Officer, and will serve as an amendment to this MOU. 3.6 The Program funds allocated to GRANTEE herein may be adjusted in certain situations, as specified in the Guidelines. ARTICLE 4. COMMITMENT AND CARRYOVER OF FUNDS 4.0 Should GRANTEE receive Transportation Development Act Article 4 (TDA), State Transit Assistance (STA) and/or Federal Transit Administration (FTA) Section 9 operating subsidies during the term of this MOU, GRANTEE agrees to commit all such subsidies prior to committing Program funds. 4.1 Program Funds can not be carried over to subsequent fiscal years. All Program Funds must be utilized in the prescribed fiscal year. Unexpended funds are subject to the requirements noted in Article 3, Paragraph 3.2 of this MOU. ARTICLE 5. LOCAL CONTRIBUTION REQUIREMENT 5.0 In accordance with the Proposition A Local Return Guidelines, the GRANTEE agrees to secure continued financial support from any funds , derived from a property tax. in addition, the GRANTEE agrees to secure local financial support. Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 5 of 7 5.1 The actual amount of local support will be equivalent to five percent (5%) of the current fiscal year operating budget, or twenty-five percent (25%) of the current fiscal year Proposition A Local Return funds received by the GRANTEE's sponsoring municipalities, whichever is less. The GRANTEE agrees that the above requirements equate to a minimum local contribution of 5325.429.50 for the Fiscal Year 1996. This amount may be adjusted upon receipt of any required Financial and Compliance Audits and any other pertinent financial information. 5.2 Only local contributions made to the operating budget are eligible to meet the Local Contribution Requirement. 5.3 Any GRANTEE whose sponsoring city did not commit to transit projects an amount equal to or greater than fifty percent (50%) of their annual Proposition A Local Return allocation during the year ended June 30 will have their Program Funds grant reduced by the amount of uncommitted annual Proposition A Local Return funds allocated which exceed fifty percent (50%). 5.4 If the Local Contribution Requirement is not met, the GRANTEE must make a full refund of its Program Funds to MTA. ARTICLE 6. CONDITIONS 6.0 The MTA, at its discretion, may withhold all or part of the GRANTEE'S Program Funds if all conditions identified in Section 8.0 of the Guidelines are not met. 6.1 GRANTEE commits local funds (e.g. Proposition A Local Return, Proposition C Local Return, General Revenue Funds) which, when combined with passenger revenues (cash, tickets, tokens, coupons or ' passes) generated from the operation of public transit services, yields a farebox recovery of a minimum 38 percent (38%). Any modification to the farebox recovery can only be made by the MTA: 6.2 GRANTEE agrees to comply with all applicable local, state and federal laws, rules and regulations in the provision of public transit services. Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 6 of 7 6.3 GRANTEE understands and agrees that in programming the Funds and entering into this MOU, MTA is acting pursuant to its statutory authority and shall have no liability in connection with the use of these Program Funds for public transit purposes. GRANTEE agrees to indemnify MTA for all liability arising out of GRANTEE's performance in the provision of public transit services paid for by these Funds. 6.4 GRANTEE is not a contractor, agent or employee of the MTA. GRANTEE shall not represent itself as a contractor, agent or employee of the MTA and shall have no power to bind the MTA in contract or otherwise. 6.5 MTA shall have the right to audit the records of the GRANTEE with regard to the Program Funds, GRANTEE shall comply with applicable Federal Transit Administration Section 15 reporting requirements and submit a copy of said report to MTA. ARTICLE 7, PENALTIES 7.0 The MTA reserves the right to terminate this agreement and withhold Program Funds if it is determined that the GRANTEE has not made every effort, to adhere to all warranties and conditions identified in the Guidelines, In addition, the MTA reserves the right to terminate this agreement in the event of continued and/or gross violations of this Memorandum of Understanding. 7.1 Any withholding of Program Funds, termination of the MOU, or imposition of any financial penalty against GRANTEE under Section 10.1 and 10.2 of the Guidelines is subject to nine (9) affirmative votes by the governing board of the MTA. Proposition A Discretionary Incentive Grant Program Memorandum of Understanding Page 7 of 7 IN WITNESS WHEREOF, the GRANTEE and the MTA have caused this MOU to be executed by their duly authorized representatives on the date noted below: City of Santa Clarita Los Angeles County Metropolitan Transportation Authority George Caravalho City Manager APPROVED AS TO FORM: FRANKLIN WHITE Chief Executive. Officer Date: APPROVED AS TO FORM: DE WITT CLINTON County Counsel By: f3*Y1,/ Legal Counsel Date: Date: g %inccn1w.a