File #: 2022-0331   
Type: Motion / Motion Response Status: Filed
File created: 5/9/2022 In control: Construction Committee
On agenda: 6/16/2022 Final action: 6/16/2022
Title: RECEIVE AND FILE a report on the approach to the 3% local contribution per Board Motion 35 (Attachment A).
Sponsors: Construction Committee
Indexes: Alignment, Construction, Eric Garcetti, Fernando Dutra, First/Last Mile, Guidelines, James Butts, Janice Hahn, Local Returns, Measure M, Measure R, Motion / Motion Response
Attachments: 1. Attachment A - Board Motion 35, 2. Attachment B - 3% Local Contribution Fact Sheet, 3. Presentation
Meeting_Body
CONSTRUCTION COMMITTEE
JUNE 16, 2022

Subject
SUBJECT: 3% CONTRIBUTION MOTION RESPONSE

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE a report on the approach to the 3% local contribution per Board Motion 35 (Attachment A).

Issue
ISSUE

This Receive and File report responds to Motion 35 authored by Directors Hahn, Garcetti, Butts, and Dutra titled 3% Contribution, which directed staff to report back on the motion to the Construction Committee in June 2022.

Background
BACKGROUND

The Measure M Ordinance (Ordinance) requires that local jurisdictions pay three percent (3%) of the total project cost of new major rail projects. Under Measure R, the expenditure plan also assumed a 3% contribution from jurisdictions. Metro has implemented several 3% local contribution agreements under Measures R and M prior to adopting the Measure M Guidelines (Guidelines). Before staff proceeds with negotiating and entering into new 3% contribution agreements, the Board, through Motion 35, directed staff to clarify and modify elements of the 3% local contribution approach, prepare a fact sheet (Attachment B) and report back on these items to the Construction Committee.

Discussion
DISCUSSION

Through Motion 35, the Board requested that Staff revise the Guidelines, confirm several aspects of the calculation, and clarify and provide additional flexibility on sources available to jurisdictions to satisfy the 3% contribution.

Staff will revise the Guidelines in response to direction from Motion 35 and a legal opinion received in November 2021. These revisions will reflect a change in the cost allocation approach, the exclusion from the total project cost the First/Last Mile (FLM) expenses incurred by jurisdictions, and the availability of FLM credit to situations when Metro is withholding local return funds in alignment with the Board direction in Motion 35. Staff has begun making these changes [Directive A] and intends to req...

Click here for full text