Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 17, 2025
Subject
SUBJECT: FISCAL YEAR 2022 to 2024 TRIENNIAL PERFORMANCE REVIEW
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the report on the:
A. Fiscal Year 2022 to 2024 Triennial Performance Reviews of Los Angeles County Transit Operators, and Metro Operations (Attachment A); and
B. Fiscal Year 2022 to 2024 Triennial Performance Review of Metro as the Regional Transportation Planning Agency (RTPA) (Attachment B).
Issue
ISSUE
The State Transportation Development Act (TDA) requires Triennial Performance Reviews of Transit Operators and RTPAs. The FY 2022 to 2024 Triennial Performance Review Reports are completed, and this report presents the results of the reviews.
Background
BACKGROUND
The California Public Utilities Code (PUC) Section 99246, included in the Transportation Development Act (TDA), requires Metro to conduct an independent performance review of all Los Angeles County Transit Operators receiving TDA Article 4 funds, as well as operators receiving Proposition A funds in lieu of TDA funds. The TDA also requires that regional transportation planning agencies (RTPAs) undergo an independent performance review, focusing particularly on the planning roles. The review is conducted every three years, and Metro must send a Certificate of Completion to the California Department of Transportation (Caltrans), so that Metro may receive and allocate TDA and State Transit Assistance (STA) funds for Los Angeles County.
Discussion
DISCUSSION
Under contract to Metro, the firm of BCA Watson Rice, LLP independently conducted the FY 2022 to 2024 Performance Reviews of the Transit Operators, Metro Operations and Metro as the RTPA for Los Angeles County. The following summarizes the scope of the reviews:
Reviews of Los Angeles County Transit Operators and Metro Operations
The following Los Angeles County transit operators were included in these reviews:
• Antelope Valley Transit Authority (AVTA)
• Arcadia Transit
• City of Redondo Beach - Beach Cities Transit
• Claremont Dial-A-Ride
• Commerce Transit
• Culver City Bus
• Foothill Transit
• Gardena Transit
• LA County Metropolitan Transportation Authority Operations
• La Mirada Transit
• Long Beach Transit
• Los Angeles Department of Transportation (LADOT)
• Montebello Bus Lines
• Norwalk Transit System
• Santa Clarita Transit
• Santa Monica’s Big Blue Bus (BBB)
• Torrance Transit
• City of Burbank
• City of Glendale
• City of Los Angeles - Community DASH Services
• Pasadena Transit
The FY 2022 to 2024 Performance Reviews included all areas that the State mandates. Areas reviewed were:
• Verification of TDA data collection and reporting requirements
• Compliance with (PUC) requirements
• Progress in implementing prior review recommendations
• Review of TDA performance indicator trend analysis
• High level functional area performance review
In addition, operators’ data submitted for Metro’s Transit Performance Measurement Program (TPM) was reviewed. Metro uses the TPM data to allocate transit subsidy funds to Los Angeles County Transit Operators, including Metro Operations.
Progress on Implementing Prior Review Recommendations
The prior review found that all operators needed to work with Metro, as the RTPA, to clarify proper fund source reporting in their agency’s annual performance monitoring reports which have been implemented.
Compliance with Requirements
The Los Angeles County Transit Operators and Metro Operations are in full compliance with requirements as defined in the Public Utilities Code, the California Code of Regulations, and other relevant state and federal laws and compliance requirements reviewed as part of this Triennial Review.
Key LA County Transit Operator Accomplishments
• AVTA, Burbank, Foothill Transit, Glendale, LADOT, Long Beach and Pasadena purchased new electric and/or CNG buses, with one agency, AVTA, completing a full conversion to an electric fleet.
• Arcadia and Beach Cities Transit completed service operations studies.
• Two operators implemented enhanced customer information services: Claremont implemented a mobility manager program and Culver City launched an ambassador program.
• Norwalk implemented new measures to improve system safety.
• Commerce, Gardena and Torrance expanded dial-a-ride and/or micro transit service.
• Santa Monica improved wait-times by using a Transportation Network Company for dial-a-ride trips.
• Montebello completed the installation of a new system to improve communication between their buses and dispatchers.
• Santa Clarita opened the Vista Canyon Multi-Modal Center that includes a Metrolink rail station and bus transfer station.
Key Metro Operations Accomplishments
• Metro hired more than 1,000 additional bus and rail operators since the pandemic to maintain service and prevent service disruptions.
• Metro has continued to increase ridership following the pandemic. Bus service was fully restored in December of 2022.
• Metro has focused on increasing participation in its reduced fare programs. In 2023, the GoPass pilot program saw over a 50% increase in usage. Additionally, Metro introduced a fare-capping policy where riders who pay with a TAP card will not have to pay more than $5 per day or $18 over seven days.
• Metro’s K Line opened in 2022 (Expo/Crenshaw to Westchester/Veterans) and was extended in 2024 to Aviation/Century.
• The Regional Connector Project was completed in January 2023 with revenue operations beginning in June 2023.
Findings and Recommendations
This review of the LA County Transit Operators and Metro Operations included no recommendations and found all agencies to be in compliance with program requirements. Attachment A provides an Executive Summary of the FY2022 to 2024 Triennial Performance Review reports for transit operators and Metro operations.
Review of Metro as the Regional Transportation Planning Agency (RTPA)
The review of Metro as the RTPA included:
• Progress on implementing prior review recommendations
• Compliance with PUC requirements
• Review of Metro Functions
• Findings and Recommendations
Progress on Implementing Prior Review Recommendations
The prior review of Metro as the RTPA included one recommendation to clarify for operators the proper fund source reporting in their agency’s annual performance monitoring reports to Metro which has been implemented.
Compliance with Requirements
Metro is in full compliance with requirements as defined in the Public Utilities Code, the California Code of Regulations, and other relevant state and federal laws and compliance requirements reviewed as part of this Triennial Review.
Review of Metro Functions
Key conclusions from the review of Metro functions include:
• Metro planned and programmed transportation funds and addressed the challenges faced methodically, effectively, and efficiently over the triennial period.
• Metro effectively and efficiently administered transportation funds for the region during the triennium including clear identification of guidelines or requirements, appropriate tracking and certifying of the use of funds, reasonable flexibility, and coordination and assistance to municipal operators receiving funds.
• Metro continues to be effective in planning, designing, and constructing a rail transit system for Los Angeles County.
• Metro’s Government Relations function provides a well-focused, well structured, comprehensive and effective legislative proponent and analysis for Metro.
• Metro meets or exceeds its obligations to support and improve air quality in the Southern California region and the regional Air Quality Management Plan (AQMP).
• Metro has met legislatively mandated responsibilities related to planning for coordination and improvement of social service transportation services.
• Metro’s administrative funds were adequately and effectively allocated to achieve Metro’s stated goals through the budget process.
• Metro’s budget development process incorporated the processes and practices to provide an effective budget for the organization.
• Metro has multiple internal controls approaches and systems in place to safeguard its assets from error, loss, theft, misuse, misappropriation, and fraud.
• Metro has adequate accounting procedures and properly accounts for and makes available monthly its fund balances.
• Metro has established an organization structure that provides an effective framework of functional areas within which individuals can achieve the organization’s goals.
Findings and Recommendations
This review of Metro as the RTPA included no recommendations and found Metro to be in compliance with program requirements. This is the third consecutive Triennial Performance Review of Metro as the RTPA in which no findings were found. Attachment B provides an Executive Summary of the FY2022 to 2024 Triennial Performance Review of Metro as the RTPA.
Equity_Platform
EQUITY PLATFORM
In compliance with State requirements, completion of the Triennial Performance Review enables the programming of funds to eligible transit operators to support their service operations and capital improvements throughout the region. The review allows for the annual allocation of TDA, STA and Proposition A equivalent funding intended to enhance mobility for transit users, and individuals with disabilities. Through the process of public input and engagement, local decision-making, and project implementation, transit operators have control to appropriately and equitably address the needs of their communities. Regarding Metro Service Operations, through the hiring of more than 1,000 additional bus and rail operators since the COVID pandemic during the review period, Metro has maintained services and prevented service disruptions. Additionally, Metro has focused on increasing ridership participation in its reduced fare programs which is a significant equity commitment to transit users in the Los Angeles County region. Finally, in the review of Metro as the RTPA, the consultants noted that the Metro Vision 2028 Strategic Plan and Equity Platform Framework used for goal setting and process monitoring provides a “well-founded, well-structured and strong direction” for the agency.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
While this item does not directly encourage taking transit, sharing a ride or using active transportation, it is a vital part of Metro’s operations, as it is a future funding requirement and it provides transparency and accountability. Because the Metro Board has adopted an agency-wide VMT reduction Target, and this item supports the overall function of the agency, this item is consistent with the goals of reducing VMT.
*Based on population estimates from the United States Census and VMT estimates from the highway performance monitoring system data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The recommendation supports the following goals of the Strategic Plan by performing the performance review required to ensure funding is made available for local transit operations and capital improvements:
• Goal 1: Provide high-quality mobility options that enable people to spend less time traveling
• Goal 2: Deliver outstanding trip experiences for all users of the transportation system
• Goal 5: Provide responsible, accountable, and trustworthy governance within the Metro organization
Next_Steps
NEXT STEPS
As required by PUC §99246, staff will transmit the FY 2022 to 2024 Triennial Performance Review reports to the State Department of Transportation. Copies of the reports are available upon request.
Attachments
ATTACHMENTS
Attachment A - FY 2022 to 2024 Performance Review Executive Summary - Transit Operators & Metro Operations
Attachment B - FY 2022 to 2024 Performance Review Executive Summary - Metro as RTPA
Prepared_by
Prepared by: Rufus E. Cayetano, Senior Director, Finance, (213) 922-2379
Cosette Stark, Executive Officer, Finance, (213) 922-2822
Michelle Navarro, Deputy Chief Financial Officer (Interim), (213) 922-3056
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
