HomeMy Public PortalAbout09) 7E Prop A Exchange-Foothill TransitAGENDA
ITEM 7.E.
ADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: May 19, 2020
TO: The Honorable City Council
FROM: Bryan Cook, City Manager
Via: Susan Paragas, Administrative Services Director
SUBJECT: APPROVAL OF PROPOSITION A FUNDS ASSIGNMENT AGREEMENT
WITH FOOTHILL TRANSIT
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the Proposition A Local Return fund exchange with Foothill Transit;
2. Authorize the City Manager to execute the Assignment Agreement; and
3. Approve the budget amendments:
a. Increase Expenditure Budget of $750,000 from Proposition A Fund; and
b. Increase Revenue Budget of $562,500 in General Fund.
BACKGROUND:
1. In 1980, the Los Angeles County voters approved a ½ cent sales tax measure for the
Proposition A program to finance a Transit Development Program.
2. On July 1, 1982, the collection of the approved sales tax began. Twenty-five percent
was designated for the Local Return Program fund to be used by cities and Los
Angeles County (Jurisdictions) in developing and/or improving public transit,
paratransit and the related transportation infrastructure.
City Council
May 19, 2020
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ANALYSIS:
Proposition A Local Return (Prop A) monies have restrictions that require its funds to be
used exclusively to benefit public transit. Expenditures related to fixed route and
paratransit services, Transportation Demand Management, Transportation Systems
Management and fare subsidy programs that exclusively benefit transit are all eligible
uses of Prop A funds. Cities receive Prop A allocations based on a per capita basis.
The Los Angeles County Metropolitan Transportation Authority (LACMTA), which
administers the Prop A funds, allows cities with restricted Prop A funds to exchange
such funds for unrestricted revenues such as general fund monies provided that the
Prop A funds are used by for approved projects.
Prop A exchanges usually involve an agreement by a city/agency that can utilize the
restricted funds to pay another city/agency that has available Prop A funds at a
discounted rate.
On June 30, 2019, the City has accumulated a fund balance of approximately $1.18
million and is estimated to have a fund balance of $1.23 million by June 30, 2020. At
this time, the City primarily uses its Prop A funding for Dial-A-Ride. The City evaluated
additional projects. However, they were not viable at this point.
With the COVID-19 pandemic, the City’s General Fund will experience reductions in its
revenues not only during the remainder of this current fiscal year, but also in the next
few years as the economy is not expected to rebound immediately after the virus has
been eradicated. Therefore, to help offset the losses, staff is recommending to
exchange $750,000 of the City’s Prop A funds to Foothill Transit for general fund monies
at the rate of $.75 resulting in $562,500 to the City’s General Fund.
The Foothill Transit operates a fixed-route bus public transit service that provides
community-oriented, environmentally friendly bus service throughout Southern
California's San Gabriel and Pomona Valleys, including express bus routes to Pasadena
and Downtown Los Angeles.
Staff recommends that the City Council approve and authorize the City Manager to
execute the attached Assignment Agreement with the Foothill Transit authorizing the
exchange of $750,000 in Prop A funds for $562,500 in General Funds.
CITY STRATEGIC GOALS:
City Council approval of this agreement would further the Strategic Goal of Good
Governance.
City Council
May 19, 2020
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FISCAL IMPACT:
The Prop A exchange will result in an increase of $562,500 in the City’s General Fund
and reduce the fund balance in Prop A funds by $750,000.
ATTACHMENT:
A. Assignment Agreement with Foothill Transit
ATTACHMENT A
ASSIGNMENT AGREEMENT
BETWEEN THE CITY OF TEMPLE CITY AND FOOTHILL TRANSIT
This Fund Exchange Agreement (Agreement) is made and entered into this ___ day of May
2020, by and between the City of Temple City, California and the Foothill Transit, California
with respect to the following facts:
A. Foothill Transit provides community-oriented, environmentally friendly bus service
throughout Southern California's San Gabriel and Pomona Valleys, including express bus
routes to Pasadena and Downtown Los Angeles.
B. The City of Temple City (City) has uncommitted Proposition A Local Return (Prop A LR)
funds which could be made available to Foothill Transit to assist in providing the services
discussed in Paragraph A of this Agreement. In exchange for the assignment by Foothill
Transit of the amount for its general use funds (non -formula allocation funds) indicated in
Section 1 below, the City is willing to assign uncommitted Prop A LR funds to Foothill Transit
for the purpose identified in Paragraph A.
Now, therefore, in consideration of the mutual benefits to be derived by the parties and of
the premises herein contained, it is mutually agreed as follows:
1. Exchange. The City agrees to assign a total of $750,000 of its Prop A LR
funding to Foothill Transit from the Fiscal Year 2018-19 and 2019-2020
allocations. In return, Foothill Transit agrees to assign $562,500 of its
general use funds (non-formula allocation funds) to the City.
2. Consideration. The City shall assign the agreed upon Prop A LR funds to
Foothill Transit in one lump-sum payment. Foothill Transit shall assign the
agreed upon general use funds to the City in one lump-sum payment. Each
payment shall be due within 30 days of the first date that bot h of the following
have occurred: (a) execution of this Agreement, and (b) approval by Los
Angeles County Metropolitan Transportation Authority (LACMTA) of the
Foothill Transit's project description.
3. Term. This Agreement is effective on the date above written and for such
time as is necessary for both parties to complete their mutual obligations
under this Agreement.
4. Termination. Termination of this Agreement may be made by either party
so long as both of the following are correct: (a) written notice of intent to
terminate is given to the other party at least five (5) days prior to the
termination and (b) the effective date of the termination is before the date
LACMTA approves the Foothill Transit project description.
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5. Notice. Notices shall be given pursuant to this Agreement by personal
service on the party to be notified, or by written notice upon such party
deposited in the custody of the United States Postal Service addressed as
follows:
a. Bryan Cook
City Manager
City of Temple City
9701 Las Tunas Dr.
Temple City, CA 91780
b. Doran J. Barnes
Executive Director
Foothill Transit Administrative Office, 2nd Floor
100 South Vincent Avenue
West Covina, CA 91790
If notice is provided via personal service, it is deemed "given" on the date of
personal service. If notice is provided via U.S. mail, then the notice is
deemed "given" two days after the notice is properly addressed and placed
in the U.S. mail.
6. Assurances
a. Foothill Transit shall use the assigned Prop A LR funds only for the
purpose of providing the services discussed in Paragraph A of this
Agreement, and within the time limits specified in LACMTA Proposition
A Local Return Program Guidelines.
b. Concurrently with the execution of this Agreement, Foothill Transit
shall provide LACMTA with the Standard Assurances and
Understandings Regarding Receipt and Use of Proposition A funds
specified in the Guidelines regarding the use of the assigned
Proposition A LR funds.
7. This Agreement constitutes the entire understanding between the
parties, with respect to the subject matter herein. This Agreement shall not
be amended nor any provisions or breach hereof waived, except in writing
signed by the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers, duly authorized, by Foothill Transit on
______________________ and the City of Temple City on ___________________.
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CITY OF TEMPLE CITY: FOOTHILL TRANSIT:
BY: __________________________ BY: ______________________
Susan Paragas Michelle Lopes Caldwell
Director of Administrative Services Director of Finance and Treasurer
BY: __________________________ BY: ______________________
Bryan Cook Doran J. Barnes
City Manager Executive Director
ATTEST: ATTEST:
BY: __________________________ BY: ______________________
Peggy Kuo Christina Lopez
City Clerk Board Secretary