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Home My WebLink About1996-01-23 - AGENDA REPORTS - LSCMTA PROPOSITION C FUNDS (2)AGENDA REPORT /A_ City Manager Approv Item to be presented by: Lvnn M. Harris CONSENT CALENDAR DATE: January 23, 1996 SUBJECT: MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY TO APPROVE THE USE OF PROPOSITION C DISCRETIONARY FUNDS FOR RECESSION MITIGATION DEPARTMENT: Public Works BACKGROUND Proposition C Discretionary funding is part of a voter -approved countywide ballot measure passed in 1990. 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. The Los Angeles County Metropolitan Transportation Authority (LACMTA), administers Proposition C 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 one-time grant of $75,619 will be awarded to the City to assist in mitigating the recession revenue shortfall in order to eliminate any need for service reductions or fare increases during the Fiscal Year 1996. RECOMMENDATION Approve the attached agreement between the City and LACMTA and authorize the City Manager to sign on behalf of the City. Increase estimated revenues in account number 17-3578 by $75,619. FMOME\PW\CCAGENOATROKC .AGN -APPROVED MEMORANDUM OF UNDERSTANDING FOR PROPOSITION C DISCRETIONARY FUNDS FOR RECESSION MITIGATION 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, the Los Angeles County Metropolitan Transportation Authority (MTA), as the agency responsible for administering the tax; and WHEREAS, at its meeting of the governing board on June 28, 1995, MTA approved a one-time appropriation of Proposition C Discretionary funds (the FUNDS), to the region's included Municipal operators for operating assistance to assist in mitigating the recession revenue shortfall in order to eliruinate any need for significant service reductions or fare increases for the Fiscal Year 1996; and WHEREAS, the City of Santa Clarita ("GRANTEE'), is an eligible operator and desires to receive the FUNDS from 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, 1995 through June 30, 1996. 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 $75,619 subject to the terms and conditions contained herein. This one-time grant shall be prorated over a twelve (12) month period. MTA shall make twelve (12) monthly disbursements in the amount of $6,301.58 each. 2b. Invoice by GRANTEE. GRANTEE must submit one invoice to MTA requesting the FUNDS in the amount of $75.619 to be paid to GRANTEE monthly over a twelve (12) month period. 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 Patricia Larsen of the San Fernando Valley/North County Area Team at the same address. MEMORANDUM OF UNDERSTANDING FOR PROPOSITION C DISCRETIONARY FUNDS FOR RECESSION MITIGATION PAGE 2 3. Use of FUNDS. A. GRANTEE shall use the FUNDS in accordance with the Proposition C Discretionary Guidelines 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 1996. 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 its Fiscal Year 1996 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 1996 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 1996 as operating revenues does not decrease as a result of such reprogramming and the Maintenance of Effort continues to be met. C. GRANTEE understands that these FUNDS are for Fiscal Year 1996 only and cannot be carried over to the next fiscal year. D. Any unspent FUNDS must be returned to MTA no later than 60 days after the completion of any required fiscal and compliance audits performed either by the MTA or GRANTEE. 4. Reporting and Audit Requirements. MTA shall have the right to audit the books and records of GRANTEE for the Fiscal Year 1995-96 with regard to the FUNDS. GRANTEE shall comply with the Federal Transit Administration Section 15 �- reporting requirements and submit a copy of said report to MTA 5. One -Time Grant. This is a one-time only grant to deal with the specific Fiscal Year 1996 recession 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. MEMORANDUM OF UNDERSTANDING FOR PROPOSITION C DISCRETIONARY FUNDS FOR RECESSION MITIGATION PAGE 3 6. GRANTEE understands and agrees that in programming these 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 FUNDS for public transit purposes. GRANTEE agrees to idemnify MTA for all liability arising out of GRANTEE's performance in the provision of public transit services paid for by these FUNDS. 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. 8. Penalties A. The MTA reserves the right to terminate this MOU and withhold funds if it is determined that the GRANTEE has not made every effort to adhere to all warranties and conditions identified in the Proposition C Discretionary Guidelines. In addition, the MTA reserves the right to terminate this MOU in the event of continued and/or gross violations of this MOU. B. Any withholding of funds, termination of the MOU, or imposition of any financial penalty against GRANTEE under the Proposition C Discretionary Guidelines is subject to nine (9) affirmative votes by the governing board of the MTA. i MEMORANDUM OF UNDERSTANDING FOR PROPOSITION C DISCRETIONARY FUNDS FOR RECESSION MITIGATION PAGE 4 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. CITY OF SANTA CLARITA GEORGE CARAVALHO City Manager DATE: APPROVED AS TO FORM: By: L}£ity Attorney DATE: f AYA F \teaxy.mou LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FRANKLIN E. WHITE Chief Executive Officer DATE: APPROVED AS TO FORM De Witt W. Clinton County Counsel