TITLE
Recommendation to authorize City Manager, or designee, to execute a one-year agreement between the City of Long Beach and the Long Beach Public Transportation Company (Long Beach Transit) for the period of July 1, 2014 through June 30, 2015. (Citywide)
DISCUSSION
Proposition A was approved by the Los Angeles County voters in November 1980, authorizing a sales tax increase of one-half cent for public transit purposes. Collection of this tax began in July 1982, and the funds are administered and disbursed by the Los Angeles County Metropolitan Transportation Authority (MTA) to cities based on a per capita basis.
On August 10, 1982, the City Council approved a joint report by the Director of Public Works and the Executive Director and General Manager of the Long Beach Transit relative to the disbursement of Proposition A Local Return funds. Both the City and Long Beach Transit use these funds for various public transit-related capital and operating expenditures. In accordance with the report, the City of Long Beach and Long Beach Transit entered into an Agreement outlining fund allocation procedures. This Agreement has since been extended by the City Council numerous times.
The MTA estimates the City will receive approximately $8.1 million in Proposition A funds in Fiscal Year 2015. Staff recommends providing $5,190,603 to Long Beach Transit. This amount includes continuing the previous annual allocation of $4,500,000 for Long Beach Transit’s operational needs, to be paid in quarterly installments during the one-year period. Under a separate Agreement for Law Enforcement Services, Long Beach Transit reimburses the Police Department for security services. A portion of these costs, approximately $690,603 annually are reimbursed through Proposition A funds, providing the City with full cost recovery.
Proposition A funding is to be used exclusively for the construction, improvement and maintenance of mass transit services and facilities. Due to the elig...
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