Meeting_Body
FINANCE BUDGET AND AUDIT COMMITTEE
JUNE 15, 2016
Subject/Action
SUBJECT: FISCAL YEAR 2017 TRANSIT FUND ALLOCATIONS
ACTION: APPROVE FY2017 TRANSIT FUND ALLOCATIONS
AND RELATED ACTIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. APPROVING $1.8 billion in FY2017 Transit Fund Allocations for Los Angeles County jurisdictions, transit operators and Metro operations as shown in Attachment A. These allocations comply with federal and state regulations and LACMTA Board policies and guidelines.
1. Planning and Administrative allocations of Transportation Development Act (TDA), Proposition A, Proposition C and Measure R in the amount of $73.4 million as shown in Attachment A, page 2 Line 37.
2. Bus Transit Subsidies of State and Local funds in the amount of $934.9 million as shown in Attachment A, page 3.
3. Allocation of Federal Formula Grants in the amount of $349.1 million as shown in Attachment A, pages 12-13.
4. Proposition A Incentive Programs in the amount of $15.3 million as shown in Attachment A, pages 19-21.
5. Proposition A Local Return, Proposition C Local Return, Measure R Local Return, TDA Article 3 (Pedestrian and Bikeways) and TDA Article 8 (Streets and Highways) for $496.4 million as shown in Attachment A, pages 22-24.
B. AUTHORIZING the Chief Executive Officer to adjust FY2017 Federal Section 5307 (Urbanized Formula), Section 5339 (Bus and Bus Facilities) and Section 5337 (State of Good Repair) allocations upon receipt of final apportionment from the Federal Transit Authority and amend FY2017 budget as necessary to reflect the aforementioned adjustment.
C. APPROVING fund exchange in the amount of $6 million of Santa Monica’s Big Blue Bus’ FY2017 Federal Section 5307 formula share allocation with Metro’s TDA Article 4 allocation.
D. APPROVING fund exchange of Federal Section 5307 discretionary fund awarded to the Southern California Regional Transit Training Consortium (SCRTTC) through Long Beach Transit in the amount of $250,000 with Metro’s TDA Article 4 allocation.
E. APPROVING fund exchanges in the amount totaling $11.5 million of Metro’s share of Federal Section 5307 with municipal operators’ shares of Federal Sections 5339 and 5337.
F. ADOPTING a resolution designating Transportation Development Act (TDA) and State Transit Assistance (STA) fund allocations in compliance to the terms and conditions of the allocation (Attachment C); and
G. Upon approval, AUTHORIZE the Chief Executive Officer to negotiate and execute all necessary agreements to implement the above funding programs.
Issue
ISSUE
• Each year, transit operating and capital funds consisting of federal, state and local revenues are allocated to Metro operations, transit operators and Los Angeles County local jurisdictions for programs, projects and services according to federal guidelines, state laws and established funding policies and procedures. The Board of Directors must approve allocations for FY2017 before funds can be disbursed.
• The Tier 2 Operators Funding Program is continued with $6 million funding from Proposition A 95% of 40% Discretionary growth over inflation.
• Santa Monica’s Big Blue Bus (BBB) is requesting a $6 million fund exchange of its Federal Section 5307 FY2017 formula allocation with Metro’s non-federal funds in order to pay capital projects that require local funds such as mid-life bus rebuilds, yard improvements, farebox upgrades, facility improvements and advanced technology projects.
• The municipal operators are requesting fund exchanges of their Federal Sections 5339 and 5337 allocations with Metro’s share of Federal Section 5307 allocation in order to minimize the impact on administrative processes associated with these new funding programs.
• At its April 15, 2014 meeting, the Bus Operators Sub-Committee awarded $250,000 a year for three years Federal Section 5307 15% Discretionary fund to the Southern California Regional Transit Training Consortium (SCRTTC) through Long Beach Transit. This allocation ends in FY17. Funds will be exchanged with Metro’s share of the Transportation Development Act (TDA) fund.
Discussion
DISCUSSION
We developed the recommended FY2017 Transit Fund Allocations according to federal, state and local requirements, as well as policies and guidelines previously approved by LACMTA Board. Details of significant information, methodologies and assumptions are described in Attachment B.
We have reviewed the recommended allocations and related methodologies and assumptions with Metro operations, transit operators, Los Angeles County local jurisdictions, The Technical Advisory Committee (TAC), the Bus Operators Subcommittee (BOS) and the Local Transit Systems Subcommittee (LTSS). At their previous meetings, the TAC, the BOS and the LTSS all formally adopted the recommended FY2017 Transit Fund Allocations.
POLICY IMPLICATIONS
The Los Angeles County Metropolitan Transportation Authority, as the Regional Transportation Planning Entity for Los Angeles County, is responsible for planning, programming and allocating transportation funding to Los Angeles County jurisdictions, transit operators, and Metro Operations. The Board approval will allow the continued funding of transportation projects, programs and services in Los Angeles County.
OPTIONS
There is no alternative to approving the FY2017 Transit Fund Allocations because federal, state and local requirements, as well as prior LACMTA Board policies and guidelines require us to annually allocate funding to Los Angeles County jurisdictions, transit operators, and Metro Operations for programs, projects and services. Allocation methodologies and assumptions comply with federal, state and local requirements, as well as policies and guidelines previously approved by LACMTA Board.
Financial_Impact
FINANCIAL IMPACT
The FY2017 Transit Fund Allocations are included in the FY2017 Budget in multiple cost centers and multiple projects. Approval of these recommendations authorizes LACMTA to disburse these funds to the Los Angeles County jurisdictions and transit operators.
Next_Steps
NEXT STEPS
After the Board of Directors approves the recommended allocations and adopts the resolution, we will work with Los Angeles County jurisdictions, transit operators, Southern California Association of Governments (SCAG) and Metro Operations to ensure the proper disbursement of funds.
Attachments
ATTACHMENTS
Attachment A - FY 2017 Transit Fund Allocations
Attachment B - Summary of Significant Information, Methodologies and Assumptions
Attachment C - TDA and STA Resolution
Prepared_by
Prepared by: Carlos Vendiola, Transportation Planning Manager, (213)922-4527
Manijeh Ahmadi, Transportation Planning Manager III, (213)922-3083
Reviewed_By
Reviewed by: Nalini Ahuja, Executive Director, Finance and Budget, (213)922-3088
