HomeMy WebLinkAboutE-5 Staff Report - MTA Measure R and Sewr FundCONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: OCTOBER 2, 2023
SUBJECT: AUTHORIZE THE USE OF METROPOLITAN TRANSPORTATION AUTHORITY
MEASURE R FUNDS AND SEWER 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 measures 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 FY2022-23 operational costs in the Public Works
Department’s Gas Tax Fund; and
2)Authorize the use of Sewer Funds in the amount of $60,000 to supplement the increased
FY2022-23 operational costs in the Public Works Department 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
Approved
City Council
October 2, 2023
Authorize Use of MTA Measure R and Sewer Funds to Supplement Gas Tax Fund
October 2, 2023
Page 2
costs are due to various reasons such as rising costs in materials and equipment, utility costs, traffic
signal accidents, and weather-related maintenance. The end of year deficit totals $260,000. The use of
Measure R funds and Sewer 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) in the amount of $200,000 and Sewer Funds in the
amount of $60,000 to supplement the increased operations costs. By using the available Measure R
funds and Sewer 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 and Sewer funds with
the proposed recommendations. The recommended actions allow for the use of Measure R funds in the
amount not to exceed $200,000 and Sewer Funds in the amount not to exceed $60,000 and authorizes
staff to use these funds to supplement the Public Works Department’s Gas Tax Fund. Upon Council
approval, staff will prepare a budget amendment in FY 2022-23 and amend the budget as summarized
below:
Funds Budget Amount Account Increase/Decrease
Measure R 200,000.00$ 03-55-661-000-XXXX Increase Budget
Gas Tax (200,000.00)$ 12-55-661-000-XXXX Decrease Budget
Sewer 60,000.00$ 34-55-665-000-XXXX Increase Budget
Gas Tax (60,000.00)$ 12-55-661-000-XXXX Decrease Budget
Note: XXXX-Object codes to be determined later
Prepared by: Reviewed by:
Natalie Reagan Robert Delgadillo, P.E.
Management Analyst Director of Public Works/ City Engineer
Fiscal Impact Review by: Reviewed and Approved:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager