Metro - File #: 2023-0345

• File #: 2023-0345
• Type: Program
• Status: Passed
• File created: 5/10/2023
• In control: Finance, Budget and Audit Committee
• On agenda: 6/14/2023
• Final action: 6/22/2023
• Title: CONSIDER: A. AUTHORIZING 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 Account as approved; and B. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Cudahy (Measure R), Glendora (Proposition C), Lawndale (Proposition A), Lomita (Proposition C), Montebello (Proposition C), South El Monte (Proposition C, Measure R, and Measure M), South Pasadena (Proposition A, Proposition C, and Measure M), Temple City (Proposition C), and amend the existing account for the City of Hidden Hills (Proposition C) (Attachment A).
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Arroyo Verdugo subregion, Audit, Bikeways, Budget, Budgeting, Capital Project, Capital Project Funds, Cudahy, Formula Allocation / Local Return, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Glendora, Guidelines, Hidden Hills, Las Virgenes/Malibu subregion, Lawndale, Local Returns, Lomita, Measure M, Measure R, Montebello, Program, Project, Proposition A, Proposition C, Safety, San Fernando Valley Service Sector, South Bay Cities subregion, South Bay Service Sector, South El Monte, South Pasadena, Temple City, Transit buses
• Related files: 2023-0411, 2023-0467

Date	Action By	Action	Result
6/22/2023	Board of Directors - Regular Board Meeting

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JUNE 14, 2023

Subject
SUBJECT: LOCAL RETURN PROPOSITION A, PROPOSITION C, MEASURE R AND MEASURE M CAPITAL RESERVE

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. AUTHORIZING 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 Account as approved; and

B. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Cudahy (Measure R), Glendora (Proposition C), Lawndale (Proposition A), Lomita (Proposition C), Montebello (Proposition C), South El Monte (Proposition C, Measure R, and Measure M), South Pasadena (Proposition A, Proposition C, and Measure M), Temple City (Proposition C), and amend the existing account for the City of Hidden Hills (Proposition C) (Attachment A).

Issue
ISSUE

A local jurisdiction may need additional time to accumulate sufficient funding to implement a project, or to avoid lapsing of funds. Similar to previous years, many cities require a lapsing extension due to the limited spending caused by project delays that occurred during the pandemic.

Background
BACKGROUND

According to the Local Return Guidelines, Board approval is required to extend the deadline for lapsing Local Return funds. Typically, the local jurisdiction requests that funding be dedicated to 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 its Local Return funds. Proposition A and Proposition C utilize a "three year plus current year" period for a total of four years for the timely use of funds requirement. Measure R and Measure M utilize a fi...