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LACMTA No. LOA.P000F1605 (2009) Measure R . .� ASSURANCES AND UNDERSTANDINGS REGARDING RECEIPT AND USE OF MEASURE R LOCAL RETURN FUNDS The undersigned, in conjunction with the receipt of funds derived from the one-half cent sales tax approved pursuant to Assembly Bill 2321, Measure R Ordinance of the Los Angeles County Metropolitan Transportation Authority ("LACMTA"), and as required by LACMTA's Measure R Local Return ("LR") Guidelines, hereby provides the following assurances and understandings. A. The undersigned hereby assures LACMTA: 1. That the Measure R LR funds are to be used to augment, not supplant, existing local revenues being used for transportation purposes; 2. That Measure R LR funds will be used for public transportation purposes as defined in LACMTA's Measure R LR Guidelines; 3. That the undersigned will submit to LACMTA for the use of Measure R LR funds: a. An Expenditure Plan, annually, by August 1st of each year, including a proposed budget of the current year's expenditures; b. An Expenditure Report, annually, by October 15th of each year, including an update of the prior year's expenditures; 4. Unless otherwise required by LACMTA, an audit certified by a Certified Public Accountant, will be conducted by LACMTA within 180 days of the close of the fiscal year; 5. That all projects proposed for Measure R LR funding will meet the legal requirements of the Measure R Ordinance and LACMTA's LR Guidelines criteria. B. The undersigned further understands and agrees: 1. That LACMTA will require the undersigned to return any Measure R LR funds and may impose interest penalties on any expenditure found to be illegal or improper under the terms of the Measure R Ordinance or the LACMTA's LR Guidelines; 2. That the undersigned will, for projects to be funded in part or in whole with Measure R LR funds, comply with all applicable federal, state, and local laws and regulations, including without limitation: American With Disabilities Act (ADA), CEQA and NEPA, affirmative action, transit accessibility and public health and safety requirements and fair labor practices; 3. That the undersigned will utilize the State Controller's Uniform System of Accounts and Records to accommodate uses and disbursements of Measure R LR funds which will allow financial and compliance audits of Measure R LR funds transactions and expenditures to be conducted; 4. That any Measure R LR funds not expended within five (5) years, under the Timely Use of Funds time period, or held in a Capital Reserve account approved by LACMTA, thereafter will be returned to LACMTA upon request. 5. In addition to implementing new Measure R eligible projects and programs, Jurisdictions may use Measure R LR funds to supplement existing Measure R eligible projects and programs should there be a current or projected funding shortfall. LACMTA reserves the right to request appropriate documentation from a Jurisdiction to support the existence of a funding shortfall. IN WITNESS WHEREOF the undersigned has executed this "Assurances and Understandings Regarding Receipt and Use of Measure R LR Funds" this 15th day of December, 2009 by its duly authorized officer: CITY OF RANCHO PALOS VERDES BY: 1 40 , Mayor DATE: ATTEST: By: &A)6127e4A-gal-e--- For City Clerk Date: 491/7491