HomeMy WebLinkAboutE-21 Staff Report - FY 23-24 Measure R MTA FundCONSENT ITEM
E-21
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: AUGUST 19, 2024
SUBJECT: AUTHORIZE THE USE OF METROPOLITAN TRANSPORTATION AUTHORITY
MEASURE R, TRANSPORATION DEVELOPMENT ACT ARTICLE 3 (TDA 3),
AND SEWER FUNDS TO SUPPLEMENT THE 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. Transportation Development Act Article 3 (TDA 3) funds are annual grants for bicycle
and pedestrian projects and programs apportioned by the Los Angeles County Metropolitan
Transportation Authority.
RECOMMENDATION:
Staff recommends the City Council take the following action:
1)Authorize the use of the Metropolitan Transportation Authority Measure R Funds in the amount
of $400,000, the use of the Transportation Development Act Article 3 (TDA 3) Funds in the
amount of $100,600, and the use of the Sewer Funds to supplement the increased operational
costs in the Public Works Department’s Gas Tax Fund for Fiscal Year 2023-2024.
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.
Approved
City Council
August 19, 2024
Authorize Use of MTA Measure R, TDA, and Sewer Funds to Supplement Gas Tax Fund
August 19, 2024
Page 2
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 increase in operational costs. These costs are due to
various reasons such as rising costs in materials and equipment, utility costs, and traffic signal accidents.
Fortunately, the use of Measure R funds are allowable for the stated operation costs and can fund the
operational overruns for the Public Works Department’s Street Maintenance Division.
Transportation Development Act Article 3 (TDA 3) funds are annual grants for bicycle and pedestrian
projects and programs received through the Los Angeles County Metropolitan Transportation Authority.
The Public Work’s Department has completed two sidewalk replacement projects this year and has
requested the use of the TDA 3 fund apportionment from Metro to cover the costs of these projects.
The Public Works Department would like to utilize the City’s Measure R and TDA 3 Funds
appropriated by the Metropolitan Transportation Authority (MTA) and Sewer Funds to supplement the
increased operation costs. By using the available Measure R Fund, TDA 3 Fund, and Sewer Fund, the
Public Works Department will not have to burden the department’s General Fund.
Going forward, staff plans to budget other funds including Measure R, TDA, and or Sewer funds to
supplement the Gas Tax operation budget to address the rising costs. The use of the special revenues
will have no impact to the General Funds.
FISCAL IMPACT:
There is no fiscal impact to the General Funds, and there are available Measure R and Sewer Funds with
the proposed recommendation. The recommended actions allow for the use of Measure R Funds in the
amount not to exceed $400,000, TDA Funds in the amount not to exceed $100,600, and Sewer Funds in
the amount not to exceed $90,000 authorize staff to use these funds to supplement the Public Works
Department’s Gas Tax Fund for fiscal year 2023-2024. Upon Council approval, staff will prepare a
budget amendment and increase the Fiscal Year 2023-24 approved budget by $400,000 under account
number 0355661000-XXXX (Object code to be determined later), $100,600 under account number
0900000001-XXXX (TDA fund-Account number to be determined) and $90,000 under account number
3455665000-5950.
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