Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
SEPTEMBER 16, 2020
Subject
SUBJECT: LOCAL RETURN PROPOSITION A AND PROPOSITION C CAPITAL RESERVE AND LAPSING EXTENSION
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to negotiate and execute all necessary agreements between Los Angeles County Metropolitan Transportation Authority (LACMTA) and the Cities for their Capital Reserve Accounts as approved; and:
A. ESTABLISH Proposition A Local Return funded Capital Reserve Account for the Cities of Industry and Lynwood
B. ESTABLISH Proposition C Local Return funded Capital Reserve Account for the Cities of Beverly Hills, Manhattan Beach, Pomona, Redondo Beach, San Marino, and Whittier
C. AUTHORIZE a one-time, one year extension of Local Return funds allocated in FY20 or previously, as a result of the COVID-19 pandemic.
Issue
ISSUE
A local jurisdiction may need additional time to accumulate sufficient funding to implement a project, or to avoid lapsing of funds. This year in particular, many cities may require a lapsing extension due to the limited spending caused by project shut down during the Safer at Home Order. Metro staff is requesting that the lapsing policy be extended by one year to assist all cities with their spending.
Background
BACKGROUND
According to the Local Return Guidelines, Board approval is required if there is a need to extend beyond the normal lapsing deadline for Local Return funds. Typically, the local jurisdiction requests that funding be dedicated in a Capital Reserve Account. Once approved, a local jurisdiction may be allowed additional years to accumulate and expend its Local Return funds from the date that the funds are made available.
Discussion
DISCUSSION
Staff uses a First-In-First-Out (FIFO) calculation to determine if a city may be in jeopardy of losing their Local Return Funds. Proposition A and Proposition C utilizes a "three year plus current ye...
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