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HomeMy WebLinkAboutE-14 Staff Report - MTA Measure R FundCONSENT ITEM E-14 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., PUBLIC WORKS DIRECTOR/ CITY ENGINEER DATE: JUNE 19, 2023 SUBJECT: AUTHORIZE THE USE OF METROPOLITAN TRANSPORTATION AUTHORITY MEASURE R FUNDS TO SUPPLEMENT GAS TAX FUND BACKGROUND: Los Angeles County Metropolitan Transportation Authority Measure R Local Return Fund is a one-half cent sales tax measure approved by Los Angeles County voters in 2008 to finance a countywide transit development program. As a condition of voter approval, 15 percent of Measure R revenues are earmarked for the Local Return Programs to be used by cities and the County of Los Angeles in developing and/or improving local public transit and transportation infrastructure such as street resurfacing, rehabilitation/reconstruction, pothole repair, traffic signals, bikeways, and pedestrian improvements. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Authorize the use of Metropolitan Transportation Authority Measure R Fund in the amount of $200,000 to supplement the increased operational costs in the Public Works Department’s Gas Tax Fund. ANALYSIS: The Los Angeles County Measure R sets aside 15 percent of revenues to be used by cities and the County of Los Angeles in developing or improving local public transit and transportation infrastructure, such as streets, traffic signals, sidewalks, and other pedestrian improvements. The Public Works Department’s Street Maintenance Division is funded primarily by Gas Tax funds. Over the past fiscal year, the department has seen an unpredictable increase in operational costs. These costs are due to various reasons such as rising costs in materials and equipment, utility costs, and traffic Approved City Council June 19, 2023 Authorize Use of MTA Measure R Funds to Supplement Gas Tax Fund June 19, 2023 Page 2 signal accidents. The proposed use of Measure R funds will cover the operational overruns for the Public Works Department’s Street Maintenance Division. The Public Works Department would like to utilize the City’s Measure R funds appropriated by the Metropolitan Transportation Authority (MTA) to supplement the increased operations costs. By using the available Measure R funds, the Public Works Department will not have to burden the department’s General Fund. FISCAL IMPACT: There is no fiscal impact to the General Funds, and there are available Measure R funds with the proposed recommendation. The recommended actions allow for the use of Measure R funds in the amount not to exceed $200,000 and authorizes staff to use these funds to supplement the Public Works Department’s Gas Tax Fund. Upon Council approval, staff will prepare a budget amendment and increase the account budget of 0355661000-XXXX (Object code to be determined later) by $200,000. Prepared by: Reviewed by: Natalie Reagan Robert Delgadillo, P.E. Management Analyst Director of Public Works/ City Engineer Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager