RPVCCA_SR_2010_10_05_06A_Proposition_A_and_C_FundsC~OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
Staff Coordinator:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
RAY HOLLAND,PUBLIC WORKS DIRECTOR --nYJ-£or e-.Ii .
OCTOBER 5,2010
PROPOSITION A AND C FUNDS
CAROLYN LEHR,CITY MANAGER ~~~}.f:tJi
Lauren Ramezani,Senior Administrative Analyst
RECOMMENDATIONS
ADOPT RESOLUTION NO.2010-_,A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,ASSERTING AN ONGOING
COMMITMENT TO RECEIVING AND UTILIZING PROPOSITION A AND
PROPOSITION C FUNDS AS REQUIRED AND DIRECTING AND AUTHORIZING
SPECIFIED STAFF MEMBERS TO EXECUTE ANY DOCUMENTS THEREFOR.
BACKGROUND
The Proposition A sales tax,approved by Los Angeles County ("County")voters in
1980,is one half of one percent (0.5%)tax on most retail sales in the County.The
Proposition C sales tax,approved by voters in 1990,is an additional one half of a one
percent (0.5%)tax on retail sales in the County.The majority of Los Angeles County
Metropolitan Transportation Authority's ("Metro")funding is provided from the
Proposition A and Proposition C local sales taxes.Metro returns twenty-five percent
(25%)of the Proposition A tax funds and twenty percent (20%)of the Proposition C tax
funds to the cities for transportation purposes.Metro annually allocates and distributes
the Local Return funds to jurisdictions on a per capita basis.
DISCUSSION
As a condition of receiving Proposition A and Proposition C funds,Metro requires a
document from the City that lists assurances and understandings regarding the receipt
and use of these funds.A sample of such a document,which Metro provides in its
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Proposition A and Proposition C Local Return Guidelines,2007 Edition,is attached.
Metro further requires other documents be submitted by the City with regard to these
funds.
The City has an ongoing commitment to utilize the Proposition A and Proposition C
funds as required and to provide Metro with all required assurances and
understandings therefor.This resolution asserts that ongoing commitment.It further
directs and authorizes the City Manager,Deputy City Manager,or Director of Public
Works to execute on behalf of the City any documents required by Metro,including,but
not limited to,the attached document providing assurances and understandings.
FISCAL IMPACT
The City's approved FY 10-11 budget already includes Proposition A and Proposition C
revenues.This resolution will not change the City's annual Local Return allocation.
Attachments:
Resolution No.2010-
Sample Document providing Assurances and Understandings
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6A-2
RESOLUTION NO.2010-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES,CALIFORNIA,
ASSERTING AN ONGOING COMMITMENT TO
RECEIVING AND UTILIZING PROPOSITION A AND
PROPOSITION C FUNDS AS REQUIRED AND
DIRECTING AND AUTHORIZING SPECIFIED STAFF
MEMBERS TO EXECUTE ANY DOCUMENTS THEREFOR
WHEREAS,for many years,the City of Rancho Palos Verdes ("City")has
utilized Proposition A and Proposition C funds for programs eligible to be funded
accordingly;and
WHEREAS,the City has provided the paperwork required by the Los
Angeles County Metropolitan Transportation Authority ("Metro")to acquire such
Proposition A and Proposition C funds,including assurances and understandings;and
WHEREAS,the City would like to reassert its ongoing commitments and
enable staff to provide all assurances and understandings or other required
documentation in this regard to Metro.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,AS FOLLOWS:
Section 1.The City Council of Rancho Palos Verdes asserts the City's
ongoing commitment to receiving and utilizing the Proposition A and Proposition C
funds as required,and to providing Metro with all required assurances and
understandings or other documentation therefor.
Section 2.The City Council of Rancho Palos Verdes directs and
authorizes the City Manager,Deputy City Manager,or Director of Public Works to
execute on behalf of the City any documents required by Metro in connection with the
City's receipt and use of Proposition A and Proposition C funds.
PASSED,APPROVED,AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ON THIS 5TH DAY OF OCTOBER,2010.
Mayor
ATIEST:
City Clerk
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ASSURANCES AND UNDERSTANDINGS REGARDING
RECEIPT AND USE OF PROPOSITION A and PROPOSITION C FUNDS
The undersigned,in conjunction with the receipt of funds derived [rom the one-half cent sales tax
imposed by Ordinance No.16 (proposition A)and the one-half cent sales tax imposed by the Proposition
C Ordinance of the Los Angeles County Metropolitan Transportation Authority (Metro),and as required
by Metro's Local Return Program Guidelines,hereby provides the following assurances and
understandings.
A.The undersigned hereby assures Metro:
I.That the Proposition A and Proposition C funds will not be substituted for
property tax funds which are currently fimding existing public transportation
programs;
2.That Proposition A and Proposition C funds will be used for public h'ansit
purposes as defined in Metro's Local Refilm Program Guidelines;
3.That the undersigned will submit to Metro a description oftlle use offunds:
a.For service expansion or new service:at least 60 days before encumbrance
of funds;
b.For other projects:at least 30 days before encumbrance of funds;
c.Annually,by August I"ofeach year,an update of previously approved
projects;
d.Ailliually,by October 15thofeach year,an update of the prior year's
expenditures;
4.Any proposed use of fimds will not duplicate or compete with any existing
publicly-funded transit or paratransit service;
5.That Proposition A and Proposition C funds will be expended by the date that is
three years from the last day of the fiscal year in which funds were originally
allocated;
6.Unless otherwise required by Metro,an audit certified by a Certified Public
Accountant,will be conducted by Metro within 180 days of the close of the fiscal
year;
7.That the description of the intended use of the fimds,as submitted to Meh'o,is an
accurate depiction of the project to be implemented;
8.That a 25 percent change in project scope or financing for those projects defined
in the Guidelines will be submitted to Metro at least 60 days before that change in
scope is implemented;
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9.That all projects proposed for Proposition A and Proposition C funding will meet
the legal requirements of the Proposition A and Proposition C Ordinances and
Metro's Local Retum Progranl Guidelines criteria.
B.The undersigned further understands and agrees:
1.That Metro will require the undersigned to retum any Proposition A and
Proposition C funds and may impose interest penalties on any expenditure found
to be illegal or improper under the terms of the Proposition A and Proposition C
Ordinance or the Metro's Local Retum Program Guidelines;
2.That the undersigned will,for projects to be funded in part or in whole with
Proposition A and/or Proposition C 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 either utilize the State Controller's Uniform System of
Accounts and Records to accommodate uses and disbursements of Proposition A
and Proposition C funds or will establish a separate Proposition A and Proposition
C Local Transit Assistance accOlmting system which will allow financial and
compliance audits of Proposition A and Proposition C nmds transactions and
expenditures to be conducted;
4.That any Proposition A and Proposition C funds not expended within the year of
receipt of funds plus three years thereafter will be retumed to Metro upon request
therefrom.
IN WITNESS WHEREOF the undersigned has executed this "Assurances and Understandings
Regarding Receipt and Use of Proposition A and Proposition C Funds"this __day of
______-',20_by its duly authorized officer:
CITY OF
BY
(Title)
DATE
-2-
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