Beverly Hills City Council
July 21, 2026

STAFF REPORT
Meeting Date: July 21, 2026
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Jessie Holzer Carpenter, PTP, Transportation Manager
Subject:

Attachments:

Microtransit Pilot Project

1. LA County Transportation Tax Local Return Estimate FY26/27

2. Proposition A and Proposition C Local Return Guidelines

INTRODUCTION
On May 5, 2026, staff presented a proposed two-year microtransit pilot project to City Council at a Study Session. The proposed pilot would implement the City's adopted Complete Streets Plan and Climate Action & Adaptation Plan goals for a locally operated transit system providing first/last mile connections to the Metro D Line subway stations opening along Wilshire Boulevard in 2026 and 2027.

Following Council discussion, staff was directed to return to City Council/Traffic and Parking Commission Liaison Committee to address questions raised and provide additional information.

This report responds to those questions and summarizes recommendations from the Liaison Committee’s June 8, 2026 meeting regarding next steps.

BACKGROUND
Following the 2022 Transit Needs Assessment Study, which identified significant unmet transit needs in Beverly Hills, the Liaison Committee directed staff in August 2023 to pursue on-demand, point-to-point transportation options. Staff subsequently conducted a competitive Request for Proposals (RFP) process and selected Via Transportation as the recommended vendor.

On January 7, 2026, the Liaison Committee received a report on the proposed microtransit pilot and directed staff to further develop three aspects: Dial-A-Ride integration, Waymo partnership capabilities, and launch timing relative to the Metro D Line opening.

DISCUSSION
Staff has compiled City Council's questions and comments from the May 5, 2026 meeting, organized them by topic, and provided responses to each below.

Meeting Date: July 21, 2026

FUNDING AND COSTS
Proposition A Funding
Proposition A is a permanent half-cent countywide sales tax restricted exclusively to public transit uses.

Twenty-five percent of the Proposition A tax is designated for the Local Return Program funds to be used by the 88 Cities and the County (Jurisdictions) in developing and/or improving public transit, paratransit, and the related transportation infrastructure.

Local Return funds are allocated and distributed monthly to Jurisdictions on a "per capita" basis by the Los Angeles County Metropolitan Transportation Authority (Metro). Attachment 1 outlines the estimated Local Return revenue that agencies are expected to receive in fiscal year 2026/27 from all four transportation tax measures (Propositions A and C and Measures R and M).

Will the two-year pilot be completely funded through Prop A? The proposed two-year pilot is fully funded through dedicated Proposition A transit funds. In addition, there are sufficient Prop A funds (current balance and projected revenue) to fund several years beyond the pilot project should Council desire to do so.

How much in Prop A funds does the City have and how much does the City receive each year?
The City currently has approximately $4.8 million in Prop A fund balance, plus annual revenue of approximately $840,000. This dedicated funding is separate from the General Fund and cannot be used for any non-transit purpose.

What can Prop A funds be used for?
Transit Services and Operations:
 Fixed-route public transit service
 Paratransit service (including dial-a-ride and specialized public transit)  Non-exclusive school service
 Recreational transit service
Transit Capital and Infrastructure:
 Bus stop improvements and maintenance
 Public transit capital expenditures (vehicles, facilities)  Park-and-ride lots
 Transit facilities and transportation enhancements
 Metro Rail capital projects
 Right-of-way improvements supporting transit
 Commuter rail capital and operations
 Capital reserve for future transit projects
Transit System Support:
 Transit systems management (bus priority)
 Transit security
 Fare subsidies
 Transportation planning
Meeting Date: July 21, 2026

 Transit marketing
 Direct administration of transit programs
What is the process for submitting the Prop A plan to Metro? Details about the Metro approval and audit process are included in the attached Local Return Guidelines (page 3 of Attachment 2).

When will the funds expire?
Prop A funds are subject to a three-year spending requirement, but funds committed to an approved program in the City's annual Local Return Program submittal to Metro are protected from claw-back. Staff confirmed with Metro representatives that currently no Prop A funds are expiring. In June 2027, approximately $1,000,000 are set to expire, but the City would commit to spending those funds on an approved program well in advance of expiration.

Has the City ever had to give Prop A funds back?
No.

How much in Prop A funds did the City purchase?
Prop A funds totaling $2,057,000 were purchased from five other cities (at a cost of $1,456,050) to support the Metro D Line North Portal project. To date, only $400,425 of those funds remain.

As noted previously, Metro representatives confirmed that no Prop A funds are expiring.

What are the City’s Prop A funds currently used for?
Prop A Funded Program Approximate
Annual Expense
Dial-A-Ride $480,000
Senior On-Demand subsidy $80,000
Trolley operations $70,000
Senior bus pass subsidy $2,000
Approximate Total $632,000
Can Prop A funds cover the Waymo overflow?
The Waymo overflow trips are eligible for Prop A funding because they operate within the sharedride microtransit service framework as overflow capacity, not as standalone single-passenger trips. Riders cannot directly request Waymo service (in other words, request a solo ride); the system algorithmically dispatches Waymo based on operational efficiency within the public transit service. This distinction is what differentiates eligible overflow capacity from ineligible private rideshare subsidies.

What happens if the City doesn't use the funds in three years? Can the City allocate Prop A funds to microtransit to extend the lifetime of the funds? Funds not committed to eligible transit purposes within three years must be returned to Metro.

Approving microtransit would commit current and future Prop A funds to an approved program, protecting them from claw-back and extending their useful life beyond the three-year window.

Meeting Date: July 21, 2026

Cost Structure and Per-Ride Economics
Provide clarity on initial vs. recurring costs. What is the up-front cost to start the program? What goes into the $1.6 million and $1.5 million per year estimates? The Year 1 estimate of $1.6 million includes ~$1.488 million in operational costs plus ~$112,000 in one-time upfront costs, corresponding to fees to acquire vehicles, deploy the technology, wrap vehicles with Beverly Hills branding, and retrofit vehicles to be wheelchair accessible. The remaining costs are “per vehicle hour costs,” where Beverly Hills pays for just the driver hours that are actually deployed, meaning costs are variable depending on demand. Year 2 operational costs are estimated at $1.5 million.

Via has a not-to-exceed amount of $3.1M over the two years1 that they commit to not surpassing.

If demand is lower than anticipated, Via will schedule fewer driver hours to ensure the service operates efficiently.

The cost is all inclusive of any efforts needed to run the program – insurance, marketing, vehicle storage, vehicle charging, driver pay, consultative support from Via’s team, facility rentals, etc.

Is there a hidden cost (ex: charging) or impact on the City leading to out-of-pocket costs? There are no hidden costs. There would be no impact on City charging infrastructure or hidden costs to the City for vehicle storage or charging. Vehicle lease, maintenance, driver wages, insurance, fuel/charging, customer service, technology platform, and marketing support are all included in the per-vehicle-hour rate.

How was the $20 per ride estimate calculated?
Via's pricing is structured on a per-vehicle-hour basis at $89 per hour, not on a per-ride basis.

The $20 per ride figure is a calculated estimate derived by dividing the projected two-year program cost (~$3.1 million) by projected ridership (200 rides/day × 730 days ≈ 146,000 rides). The City pays for vehicle service hours regardless of ridership levels.

What would the cost per ride be with fewer than 200 rides per day? At lower ridership levels, the calculated cost per ride would be higher because fixed costs are spread across fewer rides. However, the total program cost remains the same unless service hours are reduced. If ridership is lower than projected, Via can scale down vehicle hours, which reduces total cost while keeping cost per ride relatively stable.

How can costs be lowered?
Service metrics are continuously monitored and identify tactics to address performance, as needed. If service is running less efficiently, Via will recommend strategies to grow demand (therefore increasing efficiency) and/or driver hours will be reduced to only schedule the supply needed. Beverly Hills will only pay for actual driver hours deployed.

Would using Waymo only (instead of Via) be a lower cost ride, compared with the $20 per ride estimate?
Waymo-only service is not a comparable option. Waymo operates as a private autonomous ride service with dynamic pricing, does not provide shared rides, and is not eligible for Proposition A 1 Note that Via has provided a Best And Final Offer reducing the upfront costs to $110,000 and the two-year operating costs to $2.79M. However, to avoid confusion when discussing the proposal over multiple Liaison and City Council meetings, staff is using the figures from Via’s original proposal.

Meeting Date: July 21, 2026

funding as standalone single-passenger rides. The Via-Waymo partnership leverages Waymo for overflow capacity within the public transit service framework, not as a replacement for it.

Fare Structure and Revenue
What is the proposed fare? What could be charged to break even? Microtransit fares typically range from $1 to $5 per trip nationally. Previous reports have discussed a $2 fare, but City Council has full discretion to set the fare – given the comparably high cost of trips via rideshare, a $5 fare would still likely be a competitive price.

Like all public transit in the US, microtransit cannot achieve break-even through fares alone.

California transit systems average 10% farebox recovery2. While transit subsidies help provide affordable mobility options for low-income riders, they also help encourage choice riders to choose public transit – which translates to fewer cars on the road, reduced congestion, and lower greenhouse gas emissions.

Regarding subsidies for transit, the proposal to subsidize public transit using Prop A funds is precisely what was envisioned when Prop A was drafted. It is also worth noting that most other City services are subsidized for community benefit – meaning the City endures most if not all of the cost – including emergency services, parks and recreation programs, library services, and street maintenance.

Some agencies offer a fare-free period to encourage people to try the service – should Beverly Hills consider that?
A fare-free launch period (typically 3-6 months) is a common practice that builds initial ridership and community awareness. After the launch period, Council could implement a fare structure based on data from the initial period.

Where is the economy of scale to make the service less costly and sustainable long-term? Cost per ride decreases meaningfully only when ridership grows beyond current capacity. Within the proposed service structure, the cost-effective ridership range is 200-300 rides per day. Below 200, the calculated cost per ride increases. Above 300, additional vehicles would be needed, creating step increases in fixed costs.

Can microtransit vehicles be equipped with TAP readers? While technically feasible, TAP integration would require coordination with Metro and could delay the service launch timeline.

Most riders pay through the Via app, which stores payment preferences similar to rideshare apps; credit cards are not charged until the rider boards the vehicle.

Long-term Funding Sustainability
If the City continues microtransit beyond the 2-year pilot period, what funding sources would support the program?
Staff estimates the current Prop A fund balance and annual revenue can sustain the program for an additional 2-4 years, depending on operating hours, cost escalation, and a decision to use Prop A funds for additional transit uses. For sustainability beyond that time, staff would actively 2 "California Policy Center, "The Cost of Transit in California" (January 2025), available at https://californiapolicycenter.org/reports/the-cost-of-transit-in-california." Meeting Date: July 21, 2026

pursue grant funding during the pilot period. Via has secured significant grants for peer agencies, including $8.5 million for Cupertino and $3.2 million for Richmond. Data gathered during the pilot phase would strengthen Beverly Hills' grant applications.

How can the City ensure only Prop A money is used – not having to contribute any out-ofpocket costs? The General Fund is protected throughout this program. Proposition A funds are legally restricted to transit uses and cannot be redirected to the General Fund or other non-transit City programs.

The proposed program structure ensures all costs are covered by dedicated Prop A funds for the pilot period and several years beyond.

SERVICE DESIGN AND OPERATIONS
Service Design and Boundaries
What is the goal of microtransit? Is it first/last mile or to create mobility through the city and the business triangle?
Both. The goals are complementary: providing first/last mile connections to Metro D Line stations and improving local mobility throughout the city. The Transit Needs Assessment Study identified both needs, and microtransit's flexible design serves both simultaneously.

Is this for residents only?
No. Under Proposition A requirements, the service must be open to the general public, including residents, workers, and visitors. The service cannot be restricted to residents only.

What are the service boundaries – where can people go to / from? Can non-seniors get to medical facilities outside of Beverly Hills?
Staff recommends the service area for all riders include all of Beverly Hills, Metro D Line stations along Wilshire Boulevard, and the Cedars-Sinai Hospital area immediately outside City limits. The Transit Needs Assessment Study identified high-demand destinations – all within or immediately adjacent to City limits. Service boundaries are at Council's discretion and can be adjusted.

Additionally, Dial-A-Ride customers are recommended to have access to other medical facilities available with the current service: Kaiser Permanente on Cadillac Avenue in Los Angeles, UCLA Medical Center, West Los Angeles VA Hospital, and Century City Medical Plaza.

How does the system / routing / algorithm work?
As shown in the image below, all components of the Via software suite are powered by ViaAlgo, their proprietary routing, aggregation, dispatch, and demand prediction algorithms. These algorithms are the foundation of Via’s platform, achieving the lowest cost per ride in the industry while maintaining a high-quality customer experience. With machine learning and artificial intelligence, the algorithms become smarter over time, continuously optimizing pickups, drop-offs, and routing while dynamically updating riders, drivers, and administrators with real-time information. These algorithms are configurable and can be adjusted to accommodate a diverse and nuanced set of local needs, ensuring that Via can optimize the use of its technology platform to best meet the City’s service goals and objectives.

Meeting Date: July 21, 2026

How would this service cut emissions if no other riders request the same route? It is possible that some trips would only have one rider – especially when the program is new – but given the city’s small size, most trips would be expected to overlap routes enough to justify shared rides.

Dial-A-Ride Integration
Will the combined program delay the Dial-A-Ride users due to increased demand? Protections are built into Via’s algorithm to ensure that Dial-A-Ride riders maintain high on-timeperformance even when aggregated microtransit rides. Dial-A-Ride riders will also be able to specify an “appointment time” for prebooked trips, which Via’s system will monitor to ensure they are not late for their appointment.

Will Dial-A-Ride users delay the microtransit users because it takes longer for them to load / unload?
No, this should not significantly impact the microtransit users, as the algorithm includes anticipated time to load / unload Dial-A-Ride riders. Therefore, this data is factored into the wait time and trip time assumptions presented to riders.

Could Via replace Dial-A-Ride without microtransit? Would that be a large enough service to pilot?
This is not an option as Via’s proposal was scoped to microtransit at a larger scale based on the RFP scope – restructuring the scope to Dial-A-Ride-only would create risk of a procurement protest from other proposers who responded based on the original scope.

Additionally, limiting the service to Dial-A-Ride alone would forfeit the cost efficiencies that make the program financially viable — the economies of scale achieved by combining Dial-A-Ride with broader microtransit ridership help drive down the per-trip cost and justify the operational investment.

Meeting Date: July 21, 2026

How would Dial-A-Ride booking change with microtransit – can users still pre-book to ensure rides?
Under the proposed integration, Dial-A-Ride users would retain or improve upon all current service features: pre-booking up to one month in advance through phone or app, curb-to-curb service, no fare, trained drivers with wheelchair securement and accessibility training.

Additionally, Dial-A-Ride users would gain new flexibility to book on-demand when desired, rather than requiring 24-hour advance booking.

Provide more clarity on wait times, ease of usage, the senior learning curve for utilizing technology, etc.

In general, the app is designed to be as intuitive and easy to use as possible. Via only asks a few simple prompts (where you are traveling, whether anyone is traveling with you, and how you are paying) to book a ride. The app is also designed to be accessible and compliant with the Web Content Accessibility Guidelines to ensure that riders with accessibility challenges are able to use the technology.

During and after the launch process, the City will host engagement sessions and train the trainer sessions at senior centers to help walk riders (and staff) through the process.

It is understood that not all riders feel comfortable with a smart phone app, so the service is always available by phone for any rider to call and book a ride.

For the other current transit services that the five vehicles are being used for (ex: shuttle to Roxbury Park), would there still be costs to maintain those programs? The current Dial-A-Ride vehicles are leased by the vendor (MV Transportation), not the City. NonDial-A-Ride uses (e.g., charters) of these vehicles have been charged to other funds, not Proposition A. Under the microtransit pilot, City departments wishing to charter shuttle service for events or programs would contract directly with vendors.

Phased Implementation Options
As a first step, was only providing first / last mile connections to the D Line considered to see how the program could be managed before expanding it to point-to-point? A first / last mile-only pilot is an option for consideration, but it would come with significant tradeoffs. Restricting trips to those starting or ending at Metro D Line stations (and adjacent bus stops) would reduce ridership, increasing the calculated cost per ride. The fixed costs of operating the service (vehicles, drivers, technology) remain similar regardless of restriction, so reduced ridership simply spreads those costs across fewer rides.

If Council wishes to phase implementation, options could include:
 Phased Geographic Rollout: Launch with service to Metro stations and the Business Triangle, expanding to full citywide service after 3-6 months  Phased Service Hours: Launch with reduced hours (such as commute periods only) and expand based on demand data
 Phased User Groups: Launch with general public service while continuing Dial-A-Ride separately for the first 6 months
Meeting Date: July 21, 2026

Trade-offs to Consider:

Reduced Ridership and Higher Cost per Ride: Restricting service eliminates a significant portion of potential trips—particularly those connecting residential areas to business districts, medical facilities, schools, and shopping areas identified in the Transit Needs Assessment. Since the fixed costs of operating the service (vehicles, drivers, technology) remain largely the same, fewer rides means a higher cost per ride compared with full service.

Reduced Trip Aggregation Efficiency: Microtransit's cost efficiency comes from algorithmically combining trips heading in similar directions. With unrestricted service, a trip from a residence to a station might pick up another rider going to the station and drop off a third rider at a nearby destination, such as a grocery store. Restricting trips to station origins or destinations reduces these aggregation opportunities.

Limited Implementation of Adopted Plans: The Complete Streets Plan and Climate Action & Adaptation Plan establish goals for a locally operated transit system that addresses broader mobility needs, not just subway connections. The Transit Needs Assessment Study identified significant unmet needs for local circulation, north-south connectivity, and connections to nonstation destinations. Restricted service would address the subway connection goal but leave other identified needs unaddressed.

Reduced Visibility and Awareness: Microtransit programs build ridership over time through community awareness and word-of-mouth. A service that only operates near subway stations may have lower visibility throughout the community, potentially limiting long-term adoption.

Staff recommends proceeding with the full citywide service as originally proposed, as this approach best implements the City's adopted plans and provides the most cost-effective service per ride. However, Council may direct staff to pursue any of the alternatives described above.

Vehicle Operations and Charging
What is the charging plan? Where would vehicles be charged and stored overnight? Via will procure a dedicated lot or space in or near Beverly Hills to store vehicles when not in service (this is included in the cost proposal).

For charging, Via will utilize existing publicly available charging stations in the area, and the charging costs are included in the cost proposal. The City's existing Level 2 chargers are not anticipated to be used for fleet operations.

Are all vehicles dedicated to Beverly Hills?
Yes. All four vehicles in the fleet (plus one spare) will be dedicated exclusively to Beverly Hills, branded with City-approved wraps, and not used for service in other cities.

Between picking up and dropping off, will drivers stage somewhere or continuously drive around?
During service hours when between trips, drivers will pull over at pre-identified safe waiting locations rather than driving continuously. Via continuously monitors these patterns and adjusts staging locations as needed to avoid neighborhood impacts.

Meeting Date: July 21, 2026

Ridership Projections and Demand Management
How did staff arrive at the 200 rides per day? What is that based on? As noted above, 200 rides per day is an estimate that Via developed. Via has powered hundreds of microtransit services across the county and dozens of cities in California and has used that large data set to build a robust model in their transit planning software, Remix, which can predict ridership for a given area based on the demographic characteristics of that area and observed ridership in similar, nearby locations. They considered Beverly Hills' specific characteristics:
compact 5.7 square mile service area, daytime population exceeding 200,000, mix of residential and commercial land uses, Metro D Line connections, and integrated Dial-A-Ride service.

Ridership typically starts lower and grows over time; the 200 daily rides figure represents an average over the two-year pilot.

Why is the proposed service comparable to Rosemead’s?
This comparison was made in regard to incorporating Dial-A-Ride services into the microtransit pilot project; therefore, it is based on resident population size and not the daytime population.

Rosemead has a population of just over 50,000 relative to around 30,000 in Beverly Hills and previously had a stand-alone Dial-A-Ride service, which moved riders at a cost per ride of $71.

Rosemead deployed a microtransit service that shared rides with the Dial-A-Ride service, and the Dial-A-Ride cost-per ride decreased to $27.

At what point is the wait so long that people stop riding? Industry experience indicates riders typically tolerate wait times up to approximately 20 minutes before some begin choosing alternative transportation. The proposed service targets a 15-minute average wait with 90% of pickups within 20 minutes.

Via has a team of transit planners that monitor service performance and will identify solutions to address these trends as needed. If demand is higher than expected, they will identify solutions to address this, such as adjusting the logic for which rides are sent to overflow. Over the long-run, it may be recommended to develop fixed routes if consistent travel patterns are seen. The benefit of a pilot like this is that the City will gather data on where and when people are trying to travel, which can inform ongoing transit planning.

When the program hits the not-to-exceed amount, what happens? Will the City increase the fixed cost and cost per ride?
The not-to-exceed amount would not be exceeded without Council authorization, nor would service be cut back without notice. If demand exceeds capacity, wait times would increase. Via and City staff would continuously monitor demand and provide Council with regular performance reports well before any capacity issue requires decision. Council could then choose to expand service capacity, adjust service parameters (such as through a truncated operating schedule), or accept longer wait times.

AUTONOMOUS VEHICLE INTEGRATION
When is it more efficient to service rides with Waymo?
Via’s system will be able to intelligently deploy the most cost-effective way to serve a ride. In some situations, it may be less expensive for the City to have a trip dispatched to Waymo vs. the dedicated fleet. The system will be able to dynamically weigh this tradeoff. To give an example, Meeting Date: July 21, 2026

a trip near the edge of the city that is unlikely to be matched with another trip may be less expensive to serve with a Waymo than the dedicated fleet. Additionally, Waymo can help provide extra capacity at peak periods where there is heavy demand for the dedicated fleet.

Do Waymo overflow rides in the system stop to pick someone up going the same direction?
Waymo’s policy does not offer shared rides. As the autonomous vehicle industry evolves, sharedride capability may become available, at which point the Via-Waymo partnership could expand to include shared autonomous trips. Having an established partnership positions Beverly Hills to incorporate this capability when available.

Would the City be able to layer other technology, including public safety technology, that could be a part of an integrated system?
Yes, the vehicles' video feeds to the BHPD Real Time Watch Center already support public safety.

Future phases could incorporate additional technology consistent with applications, such as license plate readers and roadway condition monitoring, which could be added in future contract iterations subject to additional cost analysis and Council direction.

IMPLEMENTATION AND RISK
Marketing and Community Outreach
How will the City promote the program, given the low utilization of the Dial-A-Ride service? A comprehensive marketing strategy and branding would be developed by Via’s in-house marketing team working with the City's Public Information Team prior to launch, including resident outreach (direct mail, website, social media, newsletter), targeted community engagement events at Metro stations, senior outreach (in-person sessions at the Active Adult Club, one-on-one training, phone-based support, large-print materials), visitor outreach (hotel partnerships, concierge programs), and employee outreach (e.g., Chamber of Commerce). These efforts are already included in Via’s cost proposal.

Is technology the only way for someone to request service? Is there a way for someone to call instead?
Via also provides 24/7 phone-based customer support for booking and assistance for those who prefer to call for service. Smartphone app and phone-based booking are available to all users.

How will abuse be managed? How can the City provide oversight of who is using the service and how it's being utilized?
Riders must create an account to ride with the service, ensuring Via knows who each passenger is. All vehicles are equipped with cameras, which both deter bad behavior and allow the City to investigate any incidents that occur in the vehicle. Drivers are trained with deescalation tactics with protocols on how to handle difficult riders. Should a rider break the terms of use, the City has the ability to ban that rider’s account and block any future accounts from being created on their device.

Meeting Date: July 21, 2026

Contract Terms and Risk Management
Would this be a two-year commitment? Is that recommended by staff? Staff and the Traffic and Parking Commission recommended at least 18-months, but preferably a two-year pilot period, to provide sufficient time to build community awareness of the service, adapt to actual demand patterns, and gather data needed to make an informed decision about whether to continue the service permanently. The contract includes standard termination provisions, so the City is not locked into the full two-year period if circumstances warrant ending the pilot earlier.

If after a year the City chooses not to continue, is the cost amortized or is it exactly half the cost of the $3.1 million?
All City contracts include termination provisions allowing the City to discontinue service with appropriate notice. If terminated early, the City would pay only for services actually delivered up to the termination date. The upfront setup costs (~$112,000) are incurred regardless of pilot duration but represent a small portion of total contract value. Unused contracted hours in the second year would not be paid.

Liability and Legal
Since the vehicle would be branded Beverly Hills but is operated by an independent contractor, what would be the City’s potential liability if involved in a crash? The contract will include standard provisions to protect the City: full indemnification by Via for claims arising from service operations, commercial auto liability and general liability insurance coverage with the City as additional insured, and insurance limits consistent with City standards for transportation contractors. While these provisions provide substantial protection, the City may still be named in litigation as with the existing transit services and any other City service.

If vehicles start conducting additional municipal activities (ex: license plate readers and cameras to evaluate roadway conditions), would that potentially increase the City’s chances of being held liable?
Adding additional technologies in future phases can be explored through contract amendments with appropriate liability provisions and insurance adjustments in consultation with the City Attorney and City’s Risk Manager.

LIAISON COMMITTEE RECOMMENDATIONS
Staff presented the following three options for next steps at the June 8, 2026 Liaison Committee meeting:

1. Proceed with the proposed two-year microtransit pilot with a passenger fare between $1- 5, as determined by Council;

2. Proceed with the proposed two-year microtransit pilot but with a passenger fare of $5 to allow committing $1-2 million of current Prop A funds to other eligible transit uses, such as bus shelters, rider amenities, or the Public Safety Center (currently under construction); or

3. Do not proceed with a microtransit pilot.

All four Liaison Committee members supported moving forward with a two-year microtransit pilot.

The Committee was divided on the appropriate use of Proposition A funds. Two members recommended dedicating Proposition A funds exclusively to the microtransit pilot to support lower Meeting Date: July 21, 2026

fares and maximize the program's appeal — particularly to choice riders who might otherwise drive, contributing to traffic congestion and greenhouse gas emissions.

Two members recommended allocating Proposition A funds to the microtransit pilot and other eligible transit uses, noting that the pilot could be fully funded for the two-year term even with a portion of funds directed to other projects.

Liaison Committee members expressed differing views on the appropriate fare level. Some members favored a free or low fare (e.g., $1–2) to maximize ridership and accessibility, while others noted that a slightly higher fare may reinforce the service's value. Via stated when asked they typically recommend to clients a comparable fair to riding mass transit, which is around $2.

FISCAL IMPACT
Funds are available in the current Proposition A (Fund 300) balance of approximately $4.8 million.

Combined with annual Proposition A Local Return revenue of approximately $840,000 and projected farebox revenue, available funds are sufficient to direct $2 million toward construction of the Public Safety Center while fully funding the two-year microtransit pilot with no impact to the General Fund or other City programs (see below). Directing $2 million in Proposition A funds to the Public Safety Center would free up $2 million in currently earmarked General Fund dollars for other City priorities.

Prop A Fund Scenario Years of Funding for Microtransit* No redirection of funds 6 years
$1 million to other transit uses 5 years
$2 million to other transit uses 4 years
*Assumes: No major fluctuations in Prop A revenue, $2 fare ($5 fare would add approx. 3-4 months), 4% escalation on microtransit costs.

RECOMMENDATION
Staff recommends that City Council receive a follow-up report on the proposed microtransit pilot project and:

1. Approve moving forward with a two-year microtransit pilot;

2. Authorize the City Council/Traffic and Parking Commission Liaison Committee to make decisions regarding fares, vehicle branding, and marketing of the microtransit service; and

3. Approve the use of $2 million of current Prop A funds for construction of the Public Safety Center at the Wilshire/La Cienega D Line Station.

Shana Epstein,
Director of Public Works
Approved By
Attachment 1
FY27 DRAFT
Los Angeles County Metropolitan Transportation Authority Population Population Proposition A Proposition C Measure R Measure M DOF Report as % of Local Return Local Return Local Return Local Return Article 8 2025 data (1) County Estimate (2) Estimate (2) Estimate (2) Estimate Population Allocation 1 AGOURA HILLS 19,904 0.2015% 521,213 $ 432,332 $ 324,249 $ 367,482 $ 16,746 $ - $ $ 1,662,023 2 ALHAMBRA 82,374 0.8340% 2,157,073 1,789,236 1,341,927 1,520,850 69,252 6,878,338 3 ARCADIA 56,116 0.5682% 1,469,472 1,218,889 914,167 1,036,055 47,183 4,685,766 4 ARTESIA 16,359 0.1656% 428,382 355,332 266,499 302,032 13,767 1,366,012 5 AVALON 3,383 0.0343% 88,588 73,482 55,111 62,459 5,000 3,383 167,800 452,441 6 AZUSA 48,988 0.4960% 1,282,816 1,064,062 798,047 904,453 41,191 4,090,570 7 BALDWIN PARK 70,848 0.7173% 1,855,250 1,538,881 1,154,161 1,308,049 59,565 5,915,904 8 BELL 33,315 0.3373% 872,398 723,631 542,723 615,086 28,018 2,781,857 9 BELLFLOWER 76,656 0.7761% 2,007,340 1,665,036 1,248,777 1,415,280 64,446 6,400,879 10 BELL GARDENS 38,471 0.3895% 1,007,415 835,624 626,718 710,280 32,352 3,212,389 11 BEVERLY HILLS 31,945 0.3234% 836,523 693,873 520,405 589,792 26,867 2,667,460 12 BRADBURY 902 0.0091% 23,620 19,592 14,694 16,653 5,000 79,560 13 BURBANK 106,146 1.0747% 2,779,575 2,305,584 1,729,188 1,959,747 89,233 8,863,327 14 CALABASAS 22,797 0.2308% 596,970 495,171 371,378 420,895 19,178 1,903,592 15 CARSON 91,812 0.9296% 2,404,220 1,994,237 1,495,678 1,695,102 77,185 7,666,422 16 CERRITOS 47,871 0.4847% 1,253,566 1,039,800 779,850 883,830 40,253 3,997,299 17 CLAREMONT 37,299 0.3776% 976,724 810,167 607,625 688,642 31,367 3,114,525 18 COMMERCE 12,146 0.1230% 318,059 263,822 197,866 224,249 10,226 1,014,222 19 COMPTON 93,692 0.9486% 2,453,450 2,035,072 1,526,304 1,729,812 78,765 7,823,404 20 COVINA 51,090 0.5173% 1,337,860 1,109,720 832,290 943,262 42,958 4,266,089 21 CUDAHY 22,132 0.2241% 579,556 480,726 360,545 408,617 18,619 1,848,064 22 CULVER CITY 40,403 0.4091% 1,058,007 877,589 658,191 745,950 33,976 3,373,713 23 DIAMOND BAR 53,539 0.5421% 1,401,990 1,162,914 872,186 988,477 45,017 4,470,583 24 DOWNEY 111,871 1.1327% 2,929,492 2,429,936 1,822,452 2,065,446 94,045 9,341,371 25 DUARTE 23,746 0.2404% 621,821 515,784 386,838 438,416 19,976 1,982,835 26 EL MONTE 107,986 1.0933% 2,827,758 2,345,551 1,759,163 1,993,718 90,779 9,016,969 27 EL SEGUNDO 16,983 0.1719% 444,723 368,886 276,664 313,553 14,291 1,418,117 28 GARDENA 60,263 0.6101% 1,578,067 1,308,965 981,724 1,112,620 50,668 5,032,045 29 GLENDALE 192,212 1.9461% 5,033,328 4,175,013 3,131,260 3,548,761 161,571 16,049,934 30 GLENDORA 51,254 0.5189% 1,342,155 1,113,282 834,961 946,290 43,096 4,279,783 31 HAWAIIAN GARDENS 13,561 0.1373% 355,113 294,557 220,918 250,373 11,415 1,132,376 32 HAWTHORNE 85,653 0.8672% 2,242,938 1,860,458 1,395,344 1,581,390 72,008 7,152,138 33 HERMOSA BEACH 19,014 0.1925% 497,907 413,001 309,751 351,051 15,998 1,587,707 Prop A, Prop C, MR & MM LOCAL RETURN
TDA ARTICLE 3 & 8
LOCAL JURISDICTION TDA Article 3
Ped & Bike (A)
TDA Article 8 (S & H)
Total
Printed 2/26/2026
FY27 DRAFT
Population Population Proposition A Proposition C Measure R Measure M DOF Report as % of Local Return Local Return Local Return Local Return Article 8 2025 data (1) County Estimate (2) Estimate (2) Estimate (2) Estimate Population Allocation 34 HIDDEN HILLS 1,746 0.0177% 45,721 37,925 28,443 32,236 5,000 149,325 35 HUNTINGTON PARK 53,051 0.5371% 1,389,211 1,152,314 864,236 979,467 44,606 4,429,835 36 INDUSTRY (B) 431 0.0044% 11,286 9,362 7,021 7,957 - 35,627 37 INGLEWOOD 106,305 1.0763% 2,783,739 2,309,038 1,731,778 1,962,682 89,366 8,876,603 38 IRWINDALE 1,509 0.0153% 39,515 32,777 24,583 27,860 5,000 129,735 39 LA CANADA-FLINTRIDGE 20,160 0.2041% 527,917 437,893 328,420 372,209 16,962 1,683,400 40 LA HABRA HEIGHTS 5,503 0.0557% 144,103 119,530 89,647 101,600 5,000 459,881 41 LAKEWOOD 80,596 0.8160% 2,110,514 1,750,616 1,312,962 1,488,023 67,758 6,729,873 42 LA MIRADA 48,233 0.4883% 1,263,046 1,047,663 785,747 890,514 40,557 4,027,527 43 LANCASTER 177,768 1.7999% 4,655,093 3,861,277 2,895,958 3,282,085 149,431 177,768 8,817,477 23,661,321 44 LA PUENTE 37,546 0.3801% 983,192 815,532 611,649 693,202 31,574 3,135,150 45 LA VERNE 32,300 0.3270% 845,819 701,584 526,188 596,347 27,165 2,697,103 46 LAWNDALE 30,860 0.3124% 808,110 670,306 502,730 569,760 25,955 2,576,862 47 LOMITA 20,407 0.2066% 534,385 443,258 332,443 376,769 17,169 1,704,024 48 LONG BEACH 462,561 4.6833% 12,112,778 10,047,231 7,535,423 8,540,146 388,800 38,624,378 49 LOS ANGELES CITY 3,835,263 38.8310% 100,431,489 83,305,277 62,478,958 70,809,486 3,663,045 320,688,254 50 LYNWOOD 66,660 0.6749% 1,745,581 1,447,914 1,085,935 1,230,727 56,045 5,566,202 51 MALIBU 10,604 0.1074% 277,680 230,328 172,746 195,779 8,930 885,463 52 MANHATTAN BEACH 34,051 0.3448% 891,671 739,618 554,713 628,675 28,637 2,843,314 53 MAYWOOD 24,496 0.2480% 641,461 532,075 399,056 452,263 20,606 2,045,460 54 MONROVIA 38,920 0.3941% 1,019,172 845,377 634,032 718,570 32,729 3,249,881 55 MONTEBELLO 62,732 0.6351% 1,642,721 1,362,594 1,021,946 1,158,205 52,743 5,238,209 56 MONTEREY PARK 59,269 0.6001% 1,552,038 1,287,375 965,531 1,094,268 49,833 4,949,045 57 NORWALK 101,075 1.0234% 2,646,784 2,195,438 1,646,578 1,866,122 84,971 8,439,893 58 PALMDALE 167,097 1.6918% 4,375,658 3,629,493 2,722,120 3,085,069 140,462 167,097 8,288,185 22,240,988 59 PALOS VERDES ESTATES 12,999 0.1316% 340,396 282,350 211,762 239,997 10,943 1,085,448 60 PARAMOUNT 52,371 0.5302% 1,371,405 1,137,544 853,158 966,912 44,035 4,373,054 61 PASADENA 140,631 1.4239% 3,682,611 3,054,629 2,290,972 2,596,434 118,217 11,742,863 62 PICO RIVERA 60,858 0.6162% 1,593,648 1,321,889 991,417 1,123,606 51,168 5,081,728 63 POMONA 153,042 1.5495% 4,007,609 3,324,207 2,493,155 2,825,576 128,649 12,779,195 64 RANCHO PALOS VERDES 40,727 0.4123% 1,066,491 884,626 663,470 751,932 34,248 3,400,767 65 REDONDO BEACH 68,091 0.6894% 1,783,054 1,478,996 1,109,247 1,257,147 57,248 5,685,692 66 ROLLING HILLS 1,677 0.0170% 43,914 36,426 27,319 30,962 5,000 143,622 67 ROLLING HILLS ESTATES 8,545 0.0865% 223,762 185,605 139,204 157,764 7,199 713,534 68 ROSEMEAD 50,501 0.5113% 1,322,436 1,096,926 822,695 932,387 42,463 4,216,907 69 SAN DIMAS 34,209 0.3464% 895,808 743,049 557,287 631,592 28,770 2,856,507 70 SAN FERNANDO 23,692 0.2399% 620,407 514,611 385,958 437,419 19,930 1,978,326 LOCAL JURISDICTION TDA Article 3
Ped & Bike (A)
TDA Article 8 (S & H)
Total
Printed 2/26/2026
FY27 DRAFT
Population Population Proposition A Proposition C Measure R Measure M DOF Report as % of Local Return Local Return Local Return Local Return Article 8 2025 data (1) County Estimate (2) Estimate (2) Estimate (2) Estimate Population Allocation 71 SAN GABRIEL 38,953 0.3944% 1,020,036 846,093 634,570 719,179 32,757 3,252,636 72 SAN MARINO 12,330 0.1248% 322,878 267,818 200,864 227,646 10,380 1,029,586 73 SANTA CLARITA 232,377 2.3528% 6,085,102 5,047,432 3,785,574 4,290,317 195,330 232,377 11,526,141 30,929,897 74 SANTA FE SPRINGS 18,680 0.1891% 489,161 405,746 304,309 344,884 15,718 1,559,818 75 SANTA MONICA 93,212 0.9437% 2,440,881 2,024,646 1,518,485 1,720,949 78,362 7,783,323 76 SIERRA MADRE 10,870 0.1101% 284,645 236,106 177,079 200,690 9,153 907,674 77 SIGNAL HILL 11,421 0.1156% 299,074 248,074 186,056 210,863 9,616 953,683 78 SOUTH EL MONTE 19,535 0.1978% 511,550 424,317 318,238 360,670 16,436 1,631,211 79 SOUTH GATE 92,955 0.9411% 2,434,151 2,019,064 1,514,298 1,716,205 78,146 7,761,864 80 SOUTH PASADENA 26,287 0.2661% 688,360 570,977 428,233 485,330 22,111 2,195,011 81 TEMPLE CITY 36,322 0.3678% 951,140 788,946 591,709 670,604 30,546 3,032,945 82 TORRANCE 143,261 1.4505% 3,751,481 3,111,755 2,333,816 2,644,991 120,428 11,962,471 83 VERNON 207 0.0021% 5,421 4,496 3,372 3,822 5,000 22,111 84 WALNUT 28,214 0.2857% 738,821 612,833 459,625 520,908 23,731 2,355,918 85 WEST COVINA 109,428 1.1079% 2,865,518 2,376,872 1,782,654 2,020,341 91,991 9,137,377 86 WEST HOLLYWOOD 35,284 0.3572% 923,959 766,399 574,800 651,440 29,673 2,946,271 87 WESTLAKE VILLAGE 7,918 0.0802% 207,343 171,986 128,989 146,188 6,672 661,179 88 WHITTIER 87,850 0.8895% 2,300,470 1,908,179 1,431,134 1,621,952 73,855 7,335,590 89 UNINCORP LA COUNTY 1,004,490 10.1702% 26,303,914 21,818,404 16,363,803 18,545,643 1,869,766 136,022 6,746,833 91,648,362 90 TOTAL 9,876,811 100.0000% 258,637,500 $ 214,533,000 $ 160,899,750 $ 182,353,050 $ 9,789,899 $ 716,647 35,546,436 $ 861,759,635 $ NOTES:

LOCAL JURISDICTION TDA Article 3
Ped & Bike (A)
TDA Article 8 (S & H)
Total
(1) Population estimates are based on State of California Department of Finance's (DOF) 2025 population estimates. The Unincorporated Population figure for TDA Article 8 is based on 2007 estimates by Urban Research.
(2) Proposition A, Proposition C, Measure R and Measure M Local Return funds are allocated their share of estimated revenues (minus administration) without carryover since payments are made based on actual revenues received.

TDA Article 3 Allocation:
(A) 15% of the estimated revenue is first awarded to the City of Los Angeles and Los Angeles County (30%-70% split) as Supplemental Allocation. (B) City of Industry has opted out of the TDA Article 3 program indefinitely.

Printed 2/26/2026
Attachment 2

GUIDELINES
Proposition A and Proposition C

LOCAL RETURN

PROPOSITION A AND PROPOSITION C

DISTRIBUTION

PROPOSITION C
Security 5%
Transit-related
Highway
Improvements
25%
Local Return
(allocation to
Jurisdictions
Based on
Population)
20%
Discretionary
40%
Commuter
Rail/Park-andRide Lots and
Freeway Bus
Stops 10%

PROPOSITION A
Rail
Local Return
(allocation to
Jurisdictions
Based
Population)
Discretionary
(Includes
for
Projects
40%
35%
25%
i Proposition A and Proposition C
Local Return Guidelines 2007 Edition

TABLE OF CONTENTS
I. PROGRAM SUMMARY ....................................................................................................... 1 A. Introduction ......................................................................................................................... 1 B. General Provisions Concerning Proposition A and Proposition C Local Return Expenditures ....................................................................................................................... 1 C. Proposition A and Proposition C Form and Submittal Requirements................................. 3 D. Process Flow Chart of Obtaining and Expending Local Return Funds............................... 3

II. PROJECT ELIGIBILITY (Project Codes)............................................................................ 5 A. Eligible Uses of Proposition A and Proposition C ......................................................... 5

1. Public Transit Services - Operating (110, 120, 130, and 140) ................................... 5

1.1 Fixed Route Service (110)........................................................................... 5

1.2 Paratransit Service (120 & 130) .................................................................. 6 Non-exclusive School Service ..................................................................... 6 Specialized Public Transit ........................................................................... 6

1.3 Recreational Transit Service (140) .............................................................. 7

2. Bus Stop Improvements and Maintenance (150, 160, and 170)................................ 7

3. Public Transit - Capital (180, 190, and 200) ............................................................. 8

4. Transit Systems Management (Bus Priority) (210).................................................... 8

5. Transit Security (220 and 230).................................................................................. 9

6. Fare Subsidy (240 and 250)........................................................................................ 9

7. Transportation Planning (270).................................................................................... 9

8. Transit Marketing (280) .......................................................................................... 10

9. Park-and-Ride Lots (290)........................................................................................ 10

10. Transit Facilities and Transportation Enhancements (300 and 310) ........................ 10

11. Metro Rail Capital - (320) ........................................................................................ 11

12. Right-of-Way Improvements (350)......................................................................... 11

13. Commuter Rail (360 and 370).................................................................................. 11

14. Capital Reserve (380) .............................................................................................. 12

15. Direct Administration (480) ..................................................................................... 12

16. Other (500) ............................................................................................................... 12 B. Exclusive Uses of Proposition A Funds......................................................................... 13

1. Signal Synchronization (400)................................................................................... 13

2. Fund Exchange (405) ............................................................................................... 13

3. Transportation Demand Management (410)............................................................. 14 C. Exclusive Uses of Proposition C Funds....................................................................... 15

1. Signal Synchronization and Traffic Management (400) .......................................... 15

2. Transportation Demand Management (410)............................................................. 16

3. Congestion Management Program (420).................................................................. 17

4. Bikeways and Bike Lanes (430)............................................................................... 18

5. Street Improvement and Maintenance (440, 450 and 460)....................................... 18

6. Pavement Management System (470) ...................................................................... 20 ii Proposition A and Proposition C
Local Return Guidelines 2007 Edition

TABLE OF CONTENTS
III. METRO'S ADMINISTRATIVE PROCESS....................................................................... 21 A. Reporting Requirements for Jurisdictions ............................................................. 21 Standard Assurances Form ..................................................................................... 21 Proposition A and Proposition C Local Return Forms (Form A, Form B, and Form C)............................................................................................................ 21 B. Appeal of Eligibility ............................................................................................... 23 C. Governing Body Authorization .............................................................................. 23 D. Environmental Review Responsibility ................................................................... 23 E. Project Description Forms and the Proposition A and
Proposition C 40% Disc. Program.......................................................................... 23 F. Annual Project Update Submittals by Recipients of Metro Formula Funds........... 24 G. Other Responsibilities of Local Jurisdictions ......................................................... 24 H. Americans With Disabilities Act Maintenance of Effort (MOE) ........................... 24 I. Service Coordination Process ................................................................................. 24

1. Implementing a Proposed New/Modified Transit /Paratransit Service...... 25

2. Seasonal or Emergency Temporary Service .............................................. 26

3. Contracting with Other Service Providers ................................................. 26 J. Capital Reserve Process - Approval Procedure ...................................................... 26 K. Fund Exchange ....................................................................................................... 27 L. Loaning LR Funds Between Jurisdictions (For Proposition A Only)..................... 27 M. Giving Proposition C LR Funds to Another Jurisdiction........................................ 27 N. Reimbursement ....................................................................................................... 28 IV. FINANCE SECTION ............................................................................................................. 28 A. Metro’s Method of Apportionment......................................................................... 28 B. Metro’s Fund Disbursement ................................................................................... 28 C. Accounting for Proposition A And Proposition C Revenues and Expenditures by Jurisdictions .......................................................................... 28

1. Establishing a Separate Account................................................................ 28

2. Exceptions for Recipients of TDA Article 4 Funds................................... 29

3. Pooling of Funds........................................................................................ 29

4. Interest and Other Earned Income ............................................................. 29

5. Project Revenue ......................................................................................... 29

6. Inter-Fund Transfers .................................................................................. 29

7. Unexpended Project Funds ........................................................................ 29

8. Ongoing Operating Projects....................................................................... 30

9. Carryover Capital Projects......................................................................... 30

10. Reimbursement .......................................................................................... 30 D. Non-Substitution of Funds...................................................................................... 30 E. Timely Use of Funds.............................................................................................. 30

1. Proposition A and Proposition C Funds .................................................... 30

2. Determining Compliance with Timely Use Provision............................... 31

3. Extension of Timely Use Provision ........................................................... 31 F. Relationship to TDA Entry and Formula Distribution ........................................... 31 G. National Transit Database (NTD)........................................................................... 31 H. Repayment of Funds for Fixed Asset Purchases.................................................... 31 iii Proposition A and Proposition C
Local Return Guidelines 2007 Edition

TABLE OF CONTENTS
V. AUDIT SECTION................................................................................................................. 33 A. Financial and Compliance Provisions..................................................................... 33 B. Audit Deliverables .................................................................................................. 35 C. Suspension or Revocation ...................................................................................... 35

TABLE OF APPENDICES
APPENDIX I - SUMMARY OF PROPOSITION A AND PROPOSITION C USES..................... 36 APPENDIX II - ASSURANCES AND UNDERSTANDINGS ...................................................... 37 APPENDIX III - PAVEMENT MANAGEMENT SYSTEM CERTIFICATION ........................... 39 APPENDIX IV - SAMPLE CAPITAL RESERVE AGREEMENT ................................................ 40 APPENDIX V - SAMPLE FUND EXCHANGE AGREEMENT.................................................... 43 APPENDIX VI - ITS POLICY AND PROCEDURES .................................................................... 45 APPENDIX VII - ELIGIBLE RECREATIONAL TRANSIT SERVICE AREA MAP................... 48 APPENDIX VIII - PROJECT FORMS A, B AND C, INSTRUCTIONS AND CODES ................ 49

PROJECT DESCRIPTION FORM (FORM A)

ANNUAL PROJECT UPDATE (FORM B) AND

ANNUAL EXPENDITURE REPORT (FORM C)
APPENDIX IX - GLOSSARY OF TERMS USED IN LOCAL RETURN GUIDELINES ............ 56 ACKNOWLEDGEMENTS.............................................................................................................. 65 1 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
I. PROGRAM SUMMARY
A. INTRODUCTION
The Proposition A and Proposition C Programs are funded by two 1/2 cent sales tax measures approved by Los Angeles County voters to finance a Transit Development Program. The Proposition A tax measure was approved in 1980 and the Proposition C tax measure was approved in 1990. Collection of the taxes began on July 1, 1982, and April 1, 1991, respectively.

Twenty-five percent of the Proposition A tax and twenty percent of the Proposition C tax is designated for the Local Return (LR) Program funds to be used by cities and the County (Jurisdictions) in developing and/or improving public transit, paratransit, and the related transportation infrastructure.

LR funds are allocated and distributed monthly to Jurisdictions on a "per capita" basis by the Los Angeles County Metropolitan Transportation Authority (Metro).

1. PROPOSITION A LOCAL RETURN FUNDS
The Proposition A Ordinance requires that LR funds be used exclusively to benefit public transit. Expenditures related to fixed route and paratransit services, Transportation Demand Management, Transportation Systems Management and fare subsidy programs that exclusively benefit transit are all eligible uses of Proposition A LR funds. Proposition A LR funds may also be traded to other Jurisdictions in exchange for general or other funds.

2. PROPOSITION C LOCAL RETURN FUNDS
The Proposition C Ordinance directs that the LR funds also be used to benefit public transit, as described above, but provides an expanded list of eligible project expenditures including, Congestion Management Programs, bikeways and bike lanes, street improvements supporting public transit service, and Pavement Management System projects. Proposition C funds cannot be traded.

The tables in Appendix I, page 36, summarize the Proposition A and Proposition C LR Programs and the respective eligible project expenditures.

B. GENERAL PROVISIONS CONCERNING PROPOSITION A

AND PROPOSITION C LOCAL RETURN EXPENDITURES
Jurisdictions are required to use LR funds for developing and/or improving public transit service. As a general rule, an expenditure that is eligible for funding under one or more existing state or federal transit funding programs would also be an eligible LR fund expenditure provided that the project does not duplicate an existing regional or municipal transit service, project or program.
2 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Allocation of LR funds to and expenditure by Jurisdictions shall be subject to the following conditions:

1. TIMELY USE OF FUNDS
Metro will enforce regulations to insure the timely use of LR funds. Under the Proposition A and Proposition C Ordinances, Jurisdictions have three years to expend LR funds. Funds must be expended within three years of the last day of the fiscal year in which funds were originally allocated. Therefore, by method of calculation, each Jurisdiction has the Fiscal Year of allocation plus three years to expend Proposition A and/or Proposition C funds. For example, a Jurisdiction receiving funds during FY 2005-06 must expend those funds, and any interest or other income earned from Proposition A and/or Proposition C projects, by June 30, 2009.

2. AUDIT OF PROPOSITION A AND PROPOSITION C FUNDS
Jurisdictions shall annually account, through a fiscal and compliance audit, to Metro on the use of LR funds. The Audit Section, (Section V, page 33), details Project Expenditure Criteria, Allowable Costs, Audit Deliverables, and Administrative Accounting Procedures.

3. INELIGIBLE USE OF FUNDS
If LR funds have been expended prior to Metro approval and/or used for ineligible purposes, Jurisdictions will be required to reimburse their Proposition A or C LR account, including interest and/or earned income, as indicated in the Audit Section (page 33).

Stand alone projects, such as, lighting, landscaping, traffic signals, storm drains, or Transportation Planning projects unrelated to an eligible project, are not eligible.

4. STANDARD ASSURANCES
If a new Jurisdiction is formed within Los Angeles County, Metro will require that a Standard Assurances and Understanding agreement be submitted prior to participation in the LR Program. A sample Standard Assurance and Understanding Agreement form is included as Appendix II (see page 37). 3 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
C. PROPOSITION A AND PROPOSITION C FORMS AND SUBMITTAL

REQUIREMENTS
To maintain eligibility and meet LR Program compliance requirements, Jurisdictions shall submit a Project Description (Form A) as required, an Annual Project Update (Form B) and Annual Expenditure Report (Form C). Form submittal information is detailed in the Administrative Process section, page 21. Sample forms along with instructions for their completion are included as Appendix VIII (page 49). An electronic version is available on the website @www.Metro.net (under Projects/Programs; Local Return Program).

Project Description Form (Form A)
Jurisdictions shall submit for approval a Project Description Form prior to the expenditure of funds for: 1) a new project; 2) a new route; 3) a 25 percent change (increase or decrease) in route or revenue vehicle miles for an established LR funded transit service; 4) a 0.75 miles or greater service change that duplicates/overlays an existing transit service; or 5) a 25 percent or greater change in an approved LR project budget or scope on all operating or capital LR projects.

Annual Project Update (Form B)
Jurisdictions shall submit on or before August 1 of each fiscal year an Annual Project Update to provide current information on all approved on-going and carryover LR projects. Metro will review and accept or return the report for changes. Cities shall report the anticipated expenditure cash flow amounts for the covered fiscal year.

Annual Expenditure Report (Form C)
On or before October 15th of each fiscal year, the Jurisdictions shall submit an Annual Expenditure Report to provide an update on previous year LR fund receipts and expenditures.

The following provides a summary of form use and due dates:

FORM DETERMINATION DUE DATE
Project Description Form - Form A New and amended projects Any time during the year Annual Project Update - Form B All on-going and/or capital (carryover) projects
August 1st of each year
Annual Expenditure Report - Form C Report expenditures October 15th of each year 4 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
METRO Reviews
Project/Determines
Eligibility
Jurisdiction Submits Project
Description Form (Form A) for New
Projects or Amended Projects
New or Expanded
Transit/Paratransit
Project
Other Eligible
Project
Ineligible Project /
Jurisdiction Notified
Service
Review/Notification
Process
Project
Approved
Project
Disapproved*
Jurisdiction Authorized
to Expend Funds
Jurisdiction Obtains any Necessary
Environmental or Other Statutory
Clearance and Expends Revenues
Received
Funds Audited for
Fiscal and Compliance
Purposes
Project
Disapproved*
*METRO Appeals Process:

If a Jurisdiction’s proposed project is formally denied by Metro project manager, the Jurisdiction may request a formal appeal. See Section III METRO’s Administration Process - Appeal of eligibility. 5 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
II. PROJECT ELIGIBILITY
The Proposition A and Proposition C Ordinances specify that LR funds are to be used for “public transit purposes” as defined by the following: “A proposed expenditure of funds shall be deemed to be for public transit purposes to the extent that it can reasonably be expected to sustain or improve the quality and safety of and/or access to public transit services by the general public or those requiring special public transit assistance”.

For simplification and user ease, project categories that share common eligibility requirements and/or project code designations are defined and listed as either Proposition A and Proposition C Eligible, Proposition A Exclusive, or Proposition C Exclusive.

Local Return can be used as a match to grant programs such as the Metro Call for Projects, the Safe Routes to School, and the Hazard Elimination and Safety programs, so long as the projects are LR eligible. Note: The following project eligibility criteria provide for general guidance only and are not the sole determinant for project approval.

The authority to determine the eligibility of an expenditure rests solely with Metro.

Jurisdictions may appeal projects deemed ineligible as described in Section III, Metro’s Administrative Process, page 23.

A. ELIGIBLE USES OF PROPOSITION A AND PROPOSITION C

1. PUBLIC TRANSIT SERVICES - OPERATING (Codes 110,120, 130 & 140) New or expanded Transit or Paratransit services are subject to review under the Service Coordination Process (SCP) as detailed in Section III, page 24. The process will, in part, determine the proposed service’s compatibility with the existing regional bus transit system provided by Metro and services provided by the municipal transit operators. Metro may request that modification be made to proposed services that duplicate or compete with existing services. Proposed services must also meet the criteria outlined under Non-exclusive School Service and Specialized Transit discussed on the following page. Note that Emergency Medical Transportation is not an eligible use of LR funds.

Examples of Fixed Route, Paratransit, and Recreational Transit Service projects follow:

1.1 FIXED ROUTE SERVICE (Project Code 110)
• New fixed route or Flexible Destination bus service
• Extension or augmentation of an existing bus route(s) • Contracting with a transit operator or private provider for commuter bus service
• Contracting with a transit in an adjacent county to provide transit within Los Angeles County
• Operating subsidy to existing municipal or regional bus operator • Service enhancements related to Bus/rail Interface
• ADA improvements to fixed route operations
• Shuttle service between activity centers
6 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

1.2 PARATRANSIT SERVICE (Project Codes 120 & 130)
• Expansion/ coordination of existing paratransit service • Subsidized, shared-ride taxi service for disadvantaged residents • Taxi coupon programs used to provide intermittent or temporary capacity to support paratransit systems for senior and disabled patrons • New paratransit service
• General public paratransit service
• ADA-related improvements to paratransit operations
Non-Exclusive School Service
Fixed-route bus services or Demand-responsive services available to the general public, which also provide school trips, are eligible for LR funding. Exclusive school bus services are not eligible. Projects must meet the following conditions:
• The bus Vehicles utilized cannot be marked "School Bus" or feature graphics that in any way indicate they are not available to the general public. Yellow paint schemes should not be for the specific purpose of meeting the vehicle code definition of a school bus
• The bus Head Sign is to display its route designation by street intersection, geographic area, or other landmark/destination description and cannot denote "School Trip" or "Special." In cases where the service includes an alternate rush-hour trip to provide service by a school location, the dashboard sign is to indicate the line termination without indicating the school name • Timetables for such services will be made available to the general public, shall provide the given schedule and route but must not be labeled “school service”
• Drivers must be instructed that such service is available to the general public and board and alight all passengers as required at designated stops • The same fare payment options must be made available to all users • The overall transportation service provided in the Jurisdiction must not be for school service hours only
Specialized Public Transit
Metro will approve special-user group service or social service transit where it can be incorporated into the existing local transit or paratransit program.

Jurisdictions must demonstrate that existing services cannot be modified to meet the identified user need. Projects must meet the following conditions:
• The special user group identified does not discriminate on the basis of race, religion, sex, disability or ethnicity
• Service shall be available to all members of the general public having that specialized need and not be restricted to a specific group or program • Service shall be advertised to the general public
• Metro may require, as a condition of approval, inter-jurisdictional project coordination and consolidation
• LR funds may only be used for the transportation component of the special user group program, i.e., direct, clearly identifiable and auditable 7 Proposition A and Proposition C
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transportation costs, excluding salaries for specialized escorts or other program aides
• The designated vehicle(s) used must be made available for coordination with other paratransit programs if space permits

1.3 RECREATIONAL TRANSIT SERVICE (Project Code 140)
Jurisdictions shall submit a listing of Recreational Transit Services no later than October 15 after the fiscal year. Recreational Transit Service projects must meet the following conditions:
• Travel within the area of Los Angeles, Orange and Ventura Counties, and portions of Kern, Riverside and San Bernardino Counties (see map Appendix VII, page 48) are eligible expenditures. Trip segments to areas shown on the proportionately eligible areas of the map must be funded through other sources. Trips to locations not within either the eligible or proportionately eligible area are not eligible.
• Trips may be limited to certain general age groups (e.g., children under 18, senior citizens, persons with disabilities), however, trips must be made available to all individuals within that designated group. • Special events or destinations (e.g., city parks, concerts, special events) may be served, however, all members of the general public including individuals with disabilities must be allowed to use, the service.
• LR funds may not be used to pay the salaries of recreation leaders or escorts involved in recreational transit projects.
• All recreational transit trips must be advertised to the public, such as through newspapers, flyers, posters, and/or websites.

2. BUS STOP IMPROVEMENTS AND MAINTENANCE (Codes 150, 160 & 170) Examples of eligible Bus Stop Improvement and Maintenance projects include installation/replacement and/or maintenance of:
• Concrete landings - in street for buses and at sidewalk for passengers • Bus turn-outs
• Benches
• Shelters
• Trash receptacles
• Curb cuts
• Concrete or electrical work directly associated with the above items Amenities shall be integral to the bus stop. Improvements must be located within 25 feet of the bus stop signpost, or have one edge or end within that area. At high volume stops, where more than one bus typically uses the stop at a time, improvements must be placed at the immediate locations where buses normally stop.

Curb cuts may be located on or adjacent to street segments (blocks) with bus stops.
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Conditions:

Jurisdictions shall coordinate bus stop improvements (excluding curb cuts) with effected Transit Operators. A letter of coordination must be submitted with the Project Description Form. Jurisdictions that propose replacing privately owned benches or shelters must notify the Operator before requesting City Council project approval. The Operator shall have seven (7) days to respond to the notification before the Jurisdiction takes further action.

3. PUBLIC TRANSIT - CAPITAL (Project Codes 180, 190 & 200) Public Transit Capital projects will be approved only for the percentage of vehicle or equipment use, as determined by Metro staff, exclusive to public transit service.

A list of sample Public Transit Capital projects follows:
a. Vehicles/parts purchases and repairs
• Transit vehicles for passenger service
• Mechanical parts and supplies for buses or vans
• Non-revenue support vehicles, such as supervisor’s cars, service trucks • ADA-related improvements to vehicles
• Retrofits or additions to buses or vans, such as lifts, fare boxes, or radios
• Security equipment, for example, cameras on buses
b. Equipment
• New or modified transit maintenance facilities
• Maintenance equipment for new or existing transit or paratransit operations
• Office equipment and furnishings for new and existing transit and paratransit operations
NOTE: Jurisdictions shall reimburse their LR Account, in the amount of the current appraised value or purchase price from resale, for Public Transit Capital projects no longer used for public transit purposes.

4. TRANSPORTATION SYSTEMS MANAGEMENT (TSM) (Project Code 210) TSM projects are relatively low-cost, non-capacity-enhancing traffic control measures that serve to improve vehicular (bus and car) flow and/or increase safety within an existing right-of-way. Proposals must include an element demonstrating the project’s benefit to public transit. A list of sample TSM projects follows:
• Reserved bus lanes (no physical separation) on surface arterials • Contra-flow bus lanes (reversible lanes during peak travel periods) • Ramp meter by-pass (regulated access with bus/carpool unrestricted entry) • Traffic signal priority for buses (to allow approaching transit vehicles to extend green phase or change traffic signal from red to green) • Preferential turning lanes for buses
• Other traffic signal improvements that facilitate bus movement If a Local Return funded project is or has an Intelligent Transportation System (ITS) component, it must be consistent with the Regional ITS Architecture. ITS projects must comply with the Countywide ITS Policy and Procedures adopted by 9 Proposition A and Proposition C
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the Metro Board including the submittal of a completed, signed self-certification form. Please go to http://RIITS.net/RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document’ or see Appendix VI (page 45) for information on Countywide ITS Policy and Procedures, and the selfcertification form.

5. TRANSIT SECURITY (Project Codes 220 & 230)
Transit Security projects may include Transit Safety, Security Operations and Safety Education Programs, provided that they demonstrate a direct benefit to public transit service and do not supplant general law enforcement programs.

A list of sample Transit Security Programs follows:
• Local police deployment for direct and specific transit security • Private security (state licensed) deployment for transit security • Contracted police services for direct and specific transit security • Capital improvements for transit security
• Innovative and/or advanced technology transit security • Community-based policing activities in direct support of transit security • Security awareness, graffiti prevention, Safety education and/or crime prevention programs
• Transit security at commuter rail stations and park and ride facilities NOTE: Jurisdictions are encouraged to participate in existing local and regional transit security efforts, which should be coordinated through Metro.

6. FARE SUBSIDY (Project Codes 240 & 250)
Fare Subsidy programs provide residents within Jurisdictions a discount fare incentive for using public transit. The method, amount of subsidy and user group(s) shall be determined by Jurisdictions. A list of sample Fare Subsidy Programs follows:
• User-side subsidies (buy down of passes, tickets, or coupons) for the general public or segments of the general public (i.e., elderly, individuals with disabilities, or low-income residents)
• Subsidy of bus/rail passes, tickets or tokens for transit riders

7. TRANSPORTATION PLANNING (Project Code 270)
Planning, coordination, engineering and design costs incurred toward the implementation of eligible LR projects are eligible when the following conditions are met:
• The projects being planned (designed, coordinated, etc.) are LR eligible. • Coordination includes: local jurisdictions’ start up costs or dues for Councils of Governments (COG’s) and Transportation Management
Associations (TMA’s); advocacy; and funding for Joint Powers Authorities (JPA’s) by local jurisdictions or (COG’s).
• If some of a COG’s, TMA’s or JPA’s projects or activities are LR eligible and some are not, partial payment of dues must be made, in proportion to the organization’s budget for LR eligible projects.
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• Proposition A must be used to plan for Proposition A eligible projects.

Proposition C must be used to plan for Proposition C eligible projects.

8. TRANSIT MARKETING (Project Code 280)
Transit Marketing projects may include:
• Transit user guides, maps, brochures
• Transit information Kiosks
• Transit information/pass sales centers
• New rider subsidy programs

9. PARK-AND-RIDE LOTS (Project Code 290)
Park-and-Ride Lot projects must be coordinated with Metro and appropriate affected transit operator(s). Additional justification including, for example, surveys or studies that provide a basis for determining the project’s level of public transit use and related funding, may be requested prior to project evaluation.

Park-n-Ride Lot projects shall:
• be located adjacent to (no greater than 0.25 mile away from) a fixed route service bus stop, HOV lanes and/or rail stations.
• be located on unimproved land unless a specific Metro waiver is granted. • have received environmental clearance by the Jurisdiction prior to Metro approval for construction funds
• require a letter from the affected transit operator(s) to the Jurisdiction and Metro, as reasonable assurance, that park-and-ride lot users will be assured of continued access to services.
• be used primarily by transit/rideshare patrons during commute hours. • have appropriate exclusive-use signage posted and enforced. • be open for general parking during non-transit use time, e.g., evenings and weekends, provided that transit user demands are not adversely impacted. All revenues, (for example, parking, advertising or related revenue) generated during the non-transit use time must be returned to the Jurisdictions' LR Account in the same proportion as the original LR investment in the facility.

In the event that the facility ceases operation, the Jurisdiction shall be required to repay its LR Account as determined by the audit, see page 33.

10. TRANSIT FACILITIES/TRANSPORTATION ENHANCEMENTS (TE) (Project Codes 300 & 310)
Examples of Transit Facility projects include:
• Bus-only transit malls or stations
• Transit/paratransit accessible Transfer Centers that feature, for example, shelters, telephones, information displays/centers, and other related amenities) • Eligible as match to TE grants.
• Eligible projects may include building rehabilitation and restoration for transitrelated purposes. • Project itself must be LR eligible.
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Conditions:

Jurisdictions shall submit a project budget and scope of work that specifies the proposed facility’s public transit and, if applicable, joint development. Additional documentation may be required to determine project eligibility and level of funding.

If the facility ceases to be used for public transit purposes, LR funds used toward land purchase for a facility must be returned at the original purchase price or present appraised value, whichever is greater, to the Jurisdiction’s LR Account.

Repayment of facility expenditures shall be based on the schedule outlined on page

31. Prior to land and/or facility purchases, Jurisdictions shall provide the following:
• Documentation of the financial resources for facility implementation, operation and maintenance
• Assurance(s) from the affected transit carrier(s) to provide facility service • Land appraisal
• Assurance that the Jurisdiction will proceed with the project per the implementation schedule outlined in the application
• Environmental clearance in conformance with, wherever applicable, all local, state and federal requirements. Jurisdictions preparing an Environmental Impact Report (EIR) must coordinate with Metro Regional Transportation Planning and Development Department.

11. METRO RAIL CAPITAL (Project Codes 320)
Metro Rail Capital projects may include, for example, Metro Red, Blue, Green, or Gold Line or Mid-City Exposition Light Rail Transit station or line improvements, local match toward Metro Rail Capital projects, Metro Art or related Metro Rail enhancements.

12. RIGHT-OF-WAY IMPROVEMENTS (Project Code 350)
Right-of-Way Improvements or land purchases must be coordinated through Metro to ensure consistency with adopted regional corridors, priorities or preferred alignments. Right-of-Way Improvement project proposals must also demonstrate direct, quantifiable, environmental and/or economic benefit to given LR-eligible projects.

13. COMMUTER RAIL (Project Codes 360 & 370)
Rail (commuter system and station enhancement) projects must be consistent with Metro’s existing and planned program of rail projects. Eligible project may include match to TE grants for building rehabilitation and restoration for transitrelated purposes. Project itself must be LR eligible. Examples of Rail projects include:
• Signal upgrades at rail crossings
• Signage and marketing materials to promote increased commuter rail ridership • Landscaping, lighting, fencing and environmental enhancements at or along commuter rail facilities
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• System safety
• Safety education programs
• Commuter rail station operating, maintenance, insurance, or other stationrelated costs • Commuter rail station capital costs

14. CAPITAL RESERVE (Project Code 380)
A Capital Reserve project provides Jurisdictions the opportunity to accumulate LR funds (over and above the year of allocation and three year expenditure requirement see page 30, Timely Use of Funds) to finance a large project.

Projects are limited to construction of bus facilities, bus purchases, transit centers, park-and-ride lots, construction of major street improvements or rail projects along Metro's planned and adopted rail corridors.

A Capital Reserve project constitutes a long-term financial and planning commitment. For specific information on the Capital Reserve approval process, see Section III, Metro’s Administration Process, page 26.

15. DIRECT ADMINISTRATION (Project Code 480)
Direct Administration is defined as those fully burdened costs which are directly associated with administering Local Return program or projects, and includes salaries and benefits, office supplies and equipment, and other overhead costs.

Direct Administration project conditions:
• All costs shall be associated with developing, maintaining, monitoring, coordinating, reporting and budgeting specific LR project(s) • Expenditures must be reasonable and appropriate to the activities undertaken by the locality
• The administrative expenditures for any year shall not exceed 20 percent of the total LR annual expenditures, based on year-end expenditures, and will be subject to an audit finding if the figure exceeds 20%;
• The annual expenditure figure will be reduced by fund trades to other cities and/or funds set aside for reserves; conversely, the annual expenditure figure will be increased by expenditure of reserves or LR funds received in fund exchanges;
• Jurisdictions are required to report all administrative charges to Direct Administration in order to verify compliance of 20% administration cap.

16. OTHER (Project Code 500)
Projects that do not fit under any of the project codes, but are for public transit purposes, may be included in the “other” category. Note that “public transit purposes” are defined as follows: “A proposed expenditure of funds shall be deemed to be for public transit purposes to the extent that it can reasonably be expected to sustain or improve the quality and safety of and/or access to public transit services by the general public or those requiring special public transit assistance”.
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B. EXCLUSIVE USES OF PROPOSITION A FUNDS
Projects listed below are eligible for Proposition A LR funding only. Jurisdictions must certify that all project conditions will be met and include all supporting documents with submittal of the Form A. Stand alone amenities such as traffic signals, landscaping and storm drains are ineligible. Note: The following project eligibility criteria provide general guidance only and are not the sole determinant for project approval. The authority to determine the eligibility of an expenditure rests solely with Metro.

Jurisdictions may appeal projects deemed ineligible as described in Section III, page 23.

1. SIGNAL SYNCHRONIZATION (Project Code 400)
Signal Synchronization projects must meet the following eligibility conditions:
• Bus priority must be included as an element of the project • The project arterial must be used by a minimum of ten transit buses, counted bi-directionally, per hour, or five buses hourly in each direction • Projects may be implemented only on major arterials
• Documentation of coordination with affected public transit operators is required for approval (e.g., correspondence between the Jurisdiction and the transit operator with written concurrence between the transit operator and Metro)
• Local return funds shall not be used to alter system/signal timing that was implemented under a traffic forum project/grant unless coordinated with all affected jurisdictions in the corridor.

If a Local Return funded project is or has an Intelligent Transportation System (ITS) component, it must be consistent with the Regional ITS Architecture.

ITS projects must comply with the Countywide ITS Policy and Procedures adopted by the Metro Board including the submittal of a completed, signed self-certification form. Please go to http://RIITS.net/ RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document’ or see Appendix VI (page 45) for information on Countywide ITS Policy and Procedures, and the self-certification form.

2. FUND EXCHANGE (Project Code 405)
Proposition A funds may be given, loaned, or exchanged by Jurisdictions provided that the following conditions are met:
• Participants are responsible for insuring that the traded funds will be utilized for public transit purposes
• The exchange of funds should not result in a net loss of revenues available for public transit in Los Angeles County (i.e., trade of Proposition A funds for farebox or other transit revenues)
• Traded Proposition A LR funds retain their original date of allocation and lapse date. Jurisdictions submitting Fund Exchange projects shall note the year of allocation on their Form A so that the fund lapse policy may be monitored.

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In addition, Jurisdictions shall provide the following detail in submitting Fund Exchange projects for approval:
• Source of funds to be exchanged
• Fund amounts to be exchanged
• Period of exchange
• Assurance that the end use of Proposition A LR funds will be for eligible transit uses
• Provision for circumstances should source of funds (one or both) become unavailable during the exchange period.
• Certification by participating Jurisdictions (e.g. City Council action) A sample Fund Exchange Agreement is included in Appendix V page 43.

NOTE: Jurisdictions participating as the “seller” in a Proposition A Fund Exchange projects will, for two years from the date of transaction, be subject to disqualification or reduced project application scores in the Transportation Improvement Program (TIP) Call for Projects.

3. TRANSPORTATION DEMAND MANAGEMENT (Project Code 410)
Transportation Demand Management (TDM) projects are defined as strategies/actions intended to influence the manner in which people commute, resulting in a decrease in the number of vehicle trips made and vehicle miles traveled during peak travel periods.

TDM projects funded by Proposition A require a public transit element and will be evaluated on their projected impact on reduction of single-occupancy vehicle trips, corresponding vehicle miles traveled, and potential to increase transit use.

A list of sample TDM projects follows:
• Formation and operation of vanpool and/or vanpool incentive programs, including ride matching programs (must be made available to all employers and/or residents within the Jurisdiction boundaries • Community-based shuttles for employees as long as such services complement existing transit service
• Parking Management incentive programs, such as, parking cash outs or parking pricing strategies
• Employer or citizen ride-matching programs and subsidies • Formation or ongoing operation of a Transportation Management Association to administer and market local TDM programs (provided that the 20 administrative cost stipulated for Proposition A and Proposition C is not exceeded)
• Transit and TDM-related activities required by the Congestion Management Program (CMP) including: preparation of TDM ordinances; administration and implementation of transit or TDM-related projects pursuant to CMP deficiency plans; and monitoring of transit standards by transit operators
• Funding Transportation Management Organization's (TMO) insurance costs or individual employer's vanpool programs under the umbrella vehicle insurance policy of the Jurisdiction
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• Providing matching funds for LR eligible Safe Routes to School projects.

Jurisdictions are encouraged to adopt monitoring and evaluation performance standards for funding TDM projects. Jurisdictions are encouraged to utilize regionally adopted standards, and demonstrate, for example, how AQMD trip reduction targets are addressed through the TDM measure.

In conformity with regional, state and federal air quality objectives, Metro encourages use of alternative-fuel vehicles (e.g. LNG, CNG, Methanol) for any TDM-related shuttle, vanpool or paratransit vehicles.

If a Local Return funded project is or has an Intelligent Transportation System (ITS) component, it must be consistent with the Regional ITS Architecture. ITS projects must comply with the Countywide ITS Policy and Procedures adopted by the Metro Board including the submittal of a completed, signed self-certification form. Please go to http://RIITS.net/RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document’ or see Appendix VI (page 45) for information on Countywide ITS Policy and Procedures, and the selfcertification form.

C. EXCLUSIVE USES OF PROPOSITION C FUNDS
Projects listed below are eligible for Proposition C LR funding only. Jurisdictions must certify that all project conditions will be met and include all supporting documents with submittal of the Form A. Jurisdictions are encouraged to use LR funds for improved public transit services and for multi-jurisdictional cooperation of arterial traffic signal control operations. Agency costs for operating a centralized traffic signal system, including those costs linked to a local agency’s participation in the countywide Information Exchange Network (IEN), are now eligible for reimbursement. Stand alone amenities such as landscaping and storm drains are ineligible. Note: The following project eligibility criteria provide for general guidance only and are not the sole determinant for project approval. The authority to determine the eligibility of an expenditure rests solely with Metro. Jurisdictions may appeal projects deemed ineligible as described in Section III, page 23.

1. SIGNAL SYNCHRONIZATION & TRAFFIC MANAGEMENT (Project Code 400) Synchronized Signalization projects must meet the following conditions:
• Projects shall be implemented only on major arterials. • Operation costs associated with centralized traffic signal control systems, including updating traffic signal coordination timing and costs associated with multi-jurisdictional or inter-community systems, (such as the IEN or ATSAC/ATCS) or with transit signal priority systems, are eligible. Costs may include: lease lines for communication; software licenses and maintenance; hardware maintenance, maintenance and repair of hardware, vehicle detection devices and interconnect lines; warranties; and upgrades and enhancements for software or hardware. Cities shall coordinate the signal timing or systems with other affected jurisdictions.
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• The major arterial targeted for implementation must have full-sized transit buses operating on regularly scheduled fixed routes.
• Documentation of coordination with affected public transit operators is required for approval (e.g., correspondence between the Jurisdiction and the transit operator with written concurrence from the transit operator to Metro) • Local return funds shall not be used to alter system/signal timing that was implemented under a traffic forum project/grant unless coordinated with all affected jurisdictions in the corridor.

Installation or modification of traffic signals which are not part of a larger transit project are not eligible, except as detailed in this section. Maintenance and replacement of traffic signals are not eligible.

Traffic signal projects will be reviewed and considered on a case by case basis to evaluate the transit benefit of the project. The following information may be requested and evaluated, depending on the type of traffic signal project:
• Number of transit boardings at the affected transit stop or station • Transit patrons as a proportion of pedestrian volume
• Transit vehicles as a proportion of vehicle flow
• Letter from affected transit operator requesting and justifying traffic signal installation or modification
• Proximity of proposed signal to transit stop or station • The affected transit stop(s) must be served by transit with 15 minute or greater frequency to be eligible.
• Proximity to adjacent controlled intersection
Based on the review, all or a proportion of the project costs may be eligible for Local Return funds.

If a Local Return funded project is or has an Intelligent Transportation System (ITS) component, it must be consistent with the Regional ITS Architecture. ITS projects must comply with the Countywide ITS Policy and Procedures adopted by the Metro Board including the submittal of a completed, signed self-certification form. Please go to http://RIITS.net/RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document’ or see Appendix VI (page 45) for information on Countywide ITS Policy and Procedures, and the self-certification form.

2. TRANSPORTATION DEMAND MANAGEMENT (Project Code 410)
Transportation Demand Management (TDM) projects are defined as strategies/actions intended to influence the manner in which people commute, resulting in a decrease in the number of vehicle trips made and vehicle miles traveled during peak travel periods.

TDM projects funded by Proposition C will be evaluated on their proposed impact on reduction of single-occupancy vehicle trips and corresponding vehicle miles traveled.

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A list of sample TDM projects follows:
• Formation and operation of vanpool and/or vanpool incentive programs, including ride matching programs (must be made available to all employers and/or residents within the Jurisdiction boundaries)
• Community-based shuttles for employees as long as such services complement existing transit service
• Parking Management incentive programs, such as, parking cash outs or parking pricing strategies
• Employer or citizen ride-matching programs and subsidies • Formation or ongoing operation of a Transportation Management Association to administer and market local TDM programs (provided that the 20% administrative cost stipulated for Proposition A and Proposition C is not exceeded)
• Transit and TDM-related activities required by the Congestion Management Program (CMP) including: preparation of TDM ordinances; administration and implementation of transit or TDM-related projects pursuant to CMP deficiency plans; and monitoring of transit standards by transit operators • Funding Transportation Management Organization's (TMO) insurance costs or individual employer's vanpool programs under the umbrella vehicle insurance policy of the Jurisdiction
• Providing matching funds for LR eligible Safe Routes to School projects.

Jurisdictions are encouraged to adopt monitoring and evaluation performance standards for funding TDM projects. Jurisdictions are encouraged to utilize regionally adopted standards, and demonstrate, for example, how AQMD trip reduction targets are addressed through the TDM measure.

In conformity with regional, state and federal air quality objectives, Metro encourages use of alternative-fuel vehicles (e.g. LNG, CNG, Methanol) for any TDM-related shuttle, vanpool or paratransit vehicles.

If a Local Return funded project is or has an Intelligent Transportation System (ITS) component, it must be consistent with the Regional ITS Architecture. ITS projects must comply with the Countywide ITS Policy and Procedures adopted by the Metro Board including the submittal of a completed, signed self-certification form. Please go to http://RIITS.net/RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document’ or see Appendix VI (page 45) for information on Countywide ITS Policy and Procedures, and the self-certification form.

3. CONGESTION MANAGEMENT PROGRAM (CMP) (Project Code 420) The following provides a list of sample CMP projects:
• Land use analysis as required by CMP
• Computer modeling as required to support CMP land use analysis • Administration, monitoring and implementation of transit- or TDM-related projects as part of deficiency plans
• Monitoring of transit standards by transit operators
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4. BIKEWAYS AND BIKE LANES (Project Code 430)
Bikeway projects include bikeway construction and maintenance, signage, information/safety programs, and bicycle parking, and must meet the following conditions:
• Shall be linked to employment or educational sites
• Shall be used for commuting or utilitarian trips
• Jurisdictions must have submitted a PMS Self Certification (see page 20, and Appendix III on page 39).

5. STREET IMPROVEMENT AND MAINTENANCE (Codes 440, 450 & 460) Proposition C Local Return funds are to be used for the maintenance and improvements to street and highways used as public transit thoroughfares. Street Improvement and Maintenance Projects Capacity enhancements include repair and maintenance projects with a direct benefit to transit. Projects must meet the following conditions and reporting requirements:

A. CONDITIONS:

Public Transit Benefit
Projects must demonstrate a public transit benefit or be performed on streets “heavily used by public transit,” where such streets carry regularly-scheduled, fixed-route public transit service, and where service has operated for a minimum of one (1) year and there are no foreseeable plans to discontinue such service.

If there are no fixed-route systems within a Jurisdiction, or if all the streets supporting fixed-route systems are already in a satisfactory condition as documented by the required Pavement Management System (PMS), a Jurisdiction may use LR funds for street improvements and maintenance and repair on streets within their community on which they can demonstrate that public paratransit trips, that have been in service for a minimum of one year, concentrate.

The method of demonstrating heavy-use by paratransit vehicles is to document trip pick-up and drop-off locations, including street-routing, for a consecutive three month time period. The data will be used in making a determination on which street segments have heavy-use by this form of transit.

Pavement Management System (PMS)
If Proposition C LR funds are to be used for street improvement or maintenance, a jurisdiction must have a PMS in place, and use it. (See PMS code 470 for self certification requirements, page 20).

Maintenance of Effort (MOE) Requirement
The goal of the Proposition C LR Program is to improve transportation conditions, including the roadways upon which public transit operates. When used to improve roadways, the additional funds provided to local jurisdictions through the Proposition C LR Program are intended to supplement existing local revenues being used for road improvement purposes. Cities and counties shall maintain their existing commitment of local, discretionary funds for street and 19 Proposition A and Proposition C
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highway maintenance, rehabilitation, reconstruction, and storm damage repair in order to remain eligible for Proposition C LR funds to be expended for streets and roads.

Metro will accept the State Controller's finding of a Jurisdiction's compliance with the California Streets and Highways Code as sufficient to demonstrate the required Maintenance of Effort during any fiscal year in which Proposition C LR funds are expended for streets and roads.

B. REPORTING REQUIREMENTS
Street maintenance, rehabilitation or reconstruction projects should be submitted individually. Jurisdictions shall submit a Project Description Form listing all new project street segments prior to undertaking each street maintenance or improvement project. Jurisdictions will be advised as to any eligible and ineligible street segments within 30 days of project submittal.

The projects must be reflected on subsequent Annual Project Update (Form B) submittals and Annual Expenditure Reports (Form C) until the project is completed or deleted from the work program. Once deleted, a segment must be re-submitted for approval if a new street maintenance project on the segment is subsequently planned.

Eligible Street Improvement and Maintenance Projects

1. Exclusive Bus Lane Street Widening
Such projects are for exclusive bus lanes (physically separated) on surface arterials.

2. Capacity Enhancement
Capacity Enhancement projects are level-of-service and/or capacity improvements capital projects. These projects must include a public transit element that is comprised of transit vehicles on streets that are "heavily used by transit." Examples of these projects include street widening or restriping to add additional lanes.

3. Street Repair and Maintenance
Eligible Street Repair and Maintenance projects are limited to pavement maintenance, slurry seals, and chip seals, pavement rehabilitation and roadway reconstruction. Required curb, gutter, and catch basin repair (storm drains) on streets "heavily used by transit" that are part of a rehabilitation or reconstruction project are eligible. Betterments are not eligible for LR funding.

4. Safety
Street improvement projects to increase safety are eligible, but must have a direct and clearly demonstrable benefit to both safety and transit. At Metro’s discretion, a project may be approved on a down-scoped demonstration basis.

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5. Americans with Disabilities Act Related Street Improvements In compliance with the Americans with Disabilities Act (ADA), the provision of curb cuts or passenger boarding/alighting concrete pads at or adjacent to bus stops and other accessible improvements on roadways “heavily used by transit” is an eligible use of Proposition C LR funds. Such modifications must meet ADA and California Title 24 specifications.

7. PAVEMENT MANAGEMENT SYSTEM (PMS) (Project Code 470)
Sample Pavement Management System projects include:
• Cost to purchase, upgrade or replace a Pavement Management System. • The ongoing cost of maintaining a PMS equal to the proportion of a Jurisdiction’s eligible street mileage to total street mileage; or 50% of the PMS maintenance cost, whichever is greater.

Note: Jurisdictions are required to certify that they have conducted and maintain Pavement Management Systems when proposing "Street Repair and Maintenance" or “Bikeway” projects (see Appendix III, page 39). The requirement for a PMS is consistent with Streets & Highways Code Section 2108.1.

PMS must include the following:
• Inventory of existing pavements including, as a minimum, arterial and collector routes, reviewed and updated triennially;
• Inventory of existing Class I bikeways, reviewed and updated triennially; • Assessment of pavement condition including, as a minimum, arterial and collector routes, reviewed and updated triennially;
• Identification of all pavement sections needing rehabilitation/replacement; and
• Determination of budget needs for rehabilitation or replacement of deficient sections of pavement for current and following triennial period(s) Self-certifications (included in Appendix III) executed by the Jurisdiction’s Engineer or designated, registered civil engineer, must be submitted with a Form A for new street maintenance or bikeway projects, or Form B (biannually) for ongoing projects, to satisfy “Street Repair and Maintenance” and “Bikeway” project eligibility criteria. 21 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
III. METRO'S ADMINISTRATIVE PROCESS
A. REPORTING REQUIREMENTS FOR JURISDICTIONS

STANDARD ASSURANCES
In the event that a new Jurisdiction is formed within Los Angeles County, Metro will require that a Standard Assurances and Understanding agreement be submitted prior to participation in the LR Program. A sample Standard Assurance and Understanding agreement form is included as Appendix II, see page 37.

PROPOSITION A AND PROPOSITION C FORMS
To maintain legal eligibility and meet LR Program compliance requirements, Jurisdictions shall submit to Metro a Project Description Form as required, an Annual Project Update and Annual Expenditure Report. A Project Description Form, Annual Project Update and Annual Expenditure Report (Forms A, B and C along with instructions) are included in Appendix VIII, starting on page 49.

PROJECT DESCRIPTION FORM (FORM A)
A new project that meets the eligibility criteria listed in Section II, Project Eligibility, must be submitted to Metro on Project Description Form (Form A) prior to the expenditure of funds. Metro will review the project to determine if it meets the statutory eligibility requirement and notify Jurisdictions of the project’s LR funding eligibility. If a Jurisdiction expends Proposition A or Proposition C LR funds for a project prior to Metro approval, the Jurisdiction will be required to reimburse its LR Account. Additionally, approvals cannot be retroactive.

A Project Description Form (Form A) may be submitted any time during the fiscal year.

Metro will review and accept or return the report for changes. All projects must be identified with their own unique sequence and project code, e.g. 01-200, and the form must be filled out completely. Once a Jurisdiction decides to proceed on a new or revised project, the Jurisdiction should comply with the following process before expending any funds:

STEP 1 - Form Submittal
A Project Description Form (Form A) shall be submitted whenever a Jurisdiction proposes a 1) a new project; 2) a new route; 3) a 25 percent or more (increase or decrease) in route or revenue vehicle miles for an established LR funded transit service); 4) a 25 percent or greater change in an approved LR project budget or scope, or 5) a service change that duplicates/overlays an existing transit service equal to or greater than .75 miles.

A change is defined as any modification to route, budget, service area, stops, frequency, fare or clientele for the project as originally approved or subsequently approved by Metro.

NOTE: a.) All new transit or paratransit service projects, existing services with a change of 25% or more (increase or decrease),or cancellation of services, are subject to review under the Service Coordination Process (as described on page 24). 22 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
b.) If transit service is canceled, Jurisdictions should notify Metro in writing, secure review by the Service Review Process, and inform the public.

STEP 2
Metro staff will review Form A to determine if the project is eligible for LR expenditure.

STEP 3
After it is determined that the project is eligible, Metro staff will notify Jurisdictions in writing authorizing the expenditure of the LR funds. This will be done within thirty days of receipt of Form A. However, if additional information/justification for the project is required, it may take longer for the approval.

STEP 4
Form A will be used as the basis for a Jurisdiction's annual compliance audit required under the LR Program. Records should be maintained as stated in Audit Section V, page 33.

ANNUAL PROJECT UPDATE (FORM B)
Jurisdictions shall submit on or before August 1 of each fiscal year an Annual Project Update (Form B) to provide Metro with an update of all approved, on-going and carryover LR projects. Jurisdictions will be informed in writing of approval for project continuance.

Metro will review the report and accept or return the report for changes. Staff review will consist of verification that the status of the projects listed corresponds to the originally approved projects. All projects should have their own identifying code, e.g. 01-200.

Projects for service operations whose anticipated start-up date is in the middle of the fiscal year, should be budgeted for services through the end of the fiscal year only. After the first year of service operations, project updates should be submitted annually, by August 1 of the new fiscal year.

ANNUAL EXPENDITURE REPORT (FORM C)
On or before October 15 of each fiscal year, Jurisdictions shall submit an Annual Expenditure Report (Form C) to notify Metro of previous year LR fund receipts and expenditures. Metro will review the report and approve or return for changes.

For Jurisdictions with Recreational Transit projects, Jurisdictions are required to annually submit an accounting of Recreational Transit trips, destinations and costs. This information should be submitted along with the Form C, no later than October 15 after the fiscal year.

Jurisdictions are required to call out administration charges to Direct Administration (Project Code 480) in order to verify compliance of 20% cap on administration costs.

The following provides a summary of form use and due dates:

FORM DETERMINATION DUE DATE
Project Description Form - Form A New and amended projects Any time during the year Annual Project Update - Form B All on-going and/or capital (carryover)projects
August 1st of each year
Annual Expenditure Report - Form C Report expenditures October 15th of each year 23 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
B. APPEAL OF ELIGIBILITY
Jurisdictions submitting a project, which has been classified by Metro staff as ineligible, may appeal the determination. An appeal should be submitted in writing to the Chief Planning Officer of Countywide Planning & Development. The project will then be reviewed for eligibility.

Should the project be denied eligibility status by the Chief Planning Officer, a final appeal may be submitted in writing to the Chief Executive Officer. The project will then come before the Metro Board for final determination of eligibility.

The appeal process is administered as a Board Public Hearing by the Board Secretary's office at the regularly scheduled Planning and Programming meetings. The Board has the authority to act on the transcript of the Hearing or to conduct its own hearing. The Metro Board decision is final.

Once the determination is final (either by an administrative determination that is not appealed within the 10-day statute of limitations, or as a result of the appeal process), Metro staff will send a notice of final determination of project eligibility to the Jurisdiction with conditions described or attached.

C. GOVERNING BODY AUTHORIZATION
While Metro does not require Jurisdictions to file a governing body authorization when submitting LR Forms (e.g., a city resolution or minute order), it is the responsibility of the Jurisdiction to keep these documents on file for audit purposes.

D. ENVIRONMENTAL REVIEW RESPONSIBILITY
Jurisdictions are the lead agencies for the projects with which they propose to implement using LR funds. Therefore, those agencies are responsible for preparing the necessary state and/or federal environmental documentation, and must comply with all applicable provisions of the California Environmental Quality Act, or if federal funds are involved, the National Environmental Policy Act.

E. PROJECT DESCRIPTION FORMS AND THE PROPOSITION A AND PROPOSITION C 40% DISCRETIONARY PROGRAM
If a Jurisdiction submits a project description for operating assistance for an included transit operator, the amount of operating assistance applied for will be considered as an operating subsidy in the fiscal year specified in Forms A or B. The full LR operating assistance amount shown in Form A or B will be considered when determining the eligible Proposition A or C Discretionary grant amount in accordance with the Proposition A and Proposition C 40% Discretionary Program Guidelines. Any changes must be approved prior to the close of the specific fiscal year. No changes will be approved after November 1 of the following fiscal year (e.g., changes in FY 2006-2007 projects must be received by Metro prior to November 1, 2007 to allow adequate time for staff review).

In addition, depreciation is not an eligible operating expense for which LR funds can be allocated, committed, encumbered, or claimed.
24 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
F. ANNUAL PROJECT UPDATE SUBMITTALS BY RECIPIENTS OF METRO FORMULA FUNDS
Jurisdictions with municipal bus operations receiving Metro formula funds (e.g. TDA Article 4, FTA Section 5307 and State Transit Assistance funds) should submit projects with the regular Transportation Improvement Program (TIP) and TIP-amendment cycle to facilitate processing and coordination. Other Jurisdictions may submit Project Description Forms at any time. LR projects and revenue may be shown in the Los Angeles County TIP for information purposes.

G. OTHER RESPONSIBILITIES OF JURISDICTIONS
It is the responsibility of Jurisdictions to ensure that all applicable federal, state and local requirements are met with regard to public health and safety, affirmative action, fair labor practices, transit accessibility to disabled persons, etc. Metro has no responsibilities in these areas with regard to local transit projects carried out by Jurisdictions receiving Proposition A or C revenues.

H. AMERICANS WITH DISABILITIES ACT MAINTENANCE OF EFFORT (MOE) Metro will continue to monitor the operations of LR funded paratransit services to ensure that ADA paratransit-eligible riders continue to receive non-discriminatory transportation service on local paratransit systems pursuant to ADA and TDA. If Metro determines that ADA paratransit-eligible individuals are disproportionately being denied service, Metro will work with the LR funded agency to resolve the issue, up to and including a Maintenance of Effort.

Jurisdictions that currently provide paratransit service are required to continue to provide either ADA-eligible individual transportation service, or fund transportation trips that are completely within their jurisdictional boundaries, when requested. This obligation may not exceed 20 percent of the total LR allocation to the jurisdiction. If no requests for service within the jurisdiction are received, there will be no obligation to provide service or funding.

To better determine the accessibility of pathways to and from bus stops in Los Angeles County, all jurisdictions and the County of Los Angeles are requested to submit their projects on the Project Description Form (Form A) indicating what accessible features are being updated. Examples include curb cuts, installation or repair of pedestrian walkways, bus pads, and/or removal of sidewalk barriers (telephone poles, light poles, and other barriers). This form shall be submitted as required under these Guidelines.

I. SERVICE COORDINATION PROCESS
If a Jurisdiction is proposing to use LR funds for a new or expanded paratransit or transit service project, it is required to comply with the following Service Coordination Process:

The Service Coordination Process has four principal steps: Early Consultation by the proposing Jurisdiction with Metro Operations, and Contract Departments as the service is being developed at a local level; Proposition A or Proposition C LR eligibility review; service coordination administrative review; Metro Board Appeal Process to review the administrative determination, if requested. The following instructions should assist Jurisdictions in completing the service coordination review process:
25 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Under the Proposition A and Proposition C Ordinances, transit services provided by Jurisdictions with LR funds should not duplicate existing transit or paratransit services.

The Proposition A and Proposition C LR Guidelines require Jurisdictions to follow the service coordination process under the following conditions: when a new service is proposed or when current service is modified by expanding service by 25 percent (increase or decrease) in route miles, revenue vehicle miles, service areas, stops, frequency or fare; when a proposed new route or change duplicates an existing route for 0.75 miles or more; or if a service is canceled.

1. Implementing A Proposed New or Modified Transit or Paratransit Service When implementing a new or modified transit service or paratransit service project Jurisdictions should comply with the following process:
a. Prior to Submittal of the Project Description Form -- Metro encourages Jurisdictions to work closely with Programming and Policy Analysis staff and Metro's Operations Unit (Sector General Managers and Deputy Executive Officer of Service Development) when a service project is being developed, in order to avoid or reduce service duplication impacts.
b. Submitting a Project Description Form -- Similar to other LR projects, Jurisdictions are required to submit a Form A describing the new or modified service. c. Letter of Conditional Approval Will Be Sent to Jurisdictions -- After Metro Operations staffs have reviewed Form A, a letter of conditional approval is sent to Jurisdictions, subject to Metro Service Development Team review. This letter is then forwarded with a recommendation to the Service Development Team, to potentially affected Jurisdictions and transit operators, with the Form A and any route maps, service schedules and fare information provided by the proposing Jurisdiction. d. Role of Service Development Team – Metro Service Development Team is an executive level committee that is chaired by Metro Chief Executive Officer (CEO).

This committee reviews key issues concerning agency transportation and planning projects. The Service Development Team will use the following criteria for evaluating the impacts of new or expanded services funded:
• Potential for passenger and revenue diversion from the existing transit services, resulting from service duplication, to the proposed new or expanded service • Operational considerations such as available street capacity, bus zone curb space, street configuration and traffic congestion
• Type of service and/or markets served by the new service, compared to existing services in the area
• Early coordination and project development with existing service providers and Jurisdictions (efforts beyond the minimum 60 days)
Metro will encourage fare coordination and connectivity with other interfacing transit operators.
e. Letter of Final Approval or Disapproval -- Based on the evaluation criteria, the Service Development Team will either grant approval or deny a Jurisdiction’s request. The Committee will notify the Jurisdiction of the outcome. f. Board Appeal Process -- If the project is disapproved, the Jurisdiction may file an appeal. See Appeal of Eligibility, page 23.
26 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

2. Seasonal or Emergency Temporary Service
Seasonal service lasting less than 60 days will be administratively reviewed and considered for approval without Metro Board review, unless an Metro Board action is specifically requested. In the event of an emergency, staff reserves the right to temporarily waive the service coordination requirements. Any projects begun under emergency waiver conditions must undergo the New Service Coordination review process within 60 days after the emergency has ended, in order to continue to be eligible for expenditure of LR funds. Seasonal or emergency services are not considered ongoing projects. Equipment purchased during the emergency waiver period will not be subject to prior approval. Emergency service may continue during the subsequent New Service Review process.

3. Contracting With Other Service Providers
Jurisdictions may use their LR funds to contract with other public or private service providers for new or improved transit services, subject to non-duplication/competition requirements.

J. CAPITAL RESERVE PROCESS - APPROVAL PROCEDURE
Jurisdictions who wish to establish a Capital Reserve fund with LR revenues should note that establishing a Capital Reserve fund constitutes a long term financial and planning commitment. The approval procedure is as follows:
a. The Project Description Form (Form A), submitted by the Jurisdiction, must be reviewed by Metro staff and approved by Metro Board;
b. If the project is approved, the Jurisdiction is required to:
• Enter into a Capital Reserve Agreement (see sample in Appendix IV, page 40) with Metro to reserve funds
• Establish a separate account, or a sub-account, for Capital Reserve funds. Any interest accrued on the Capital Reserve Account would remain in said account • Include the Capital Reserve amount and the current project status in their Project Annual Update (Form B) and on the Annual Expenditures Report (Form C, including any expenditures or interest accrued.
c. Conditions of the Capital Reserve Agreement:
• The annual audit will include a detailed audit of the jurisdiction’s capital reserve account.
• Every three (3) years, Metro must evaluate the Capital Reserve Account as it pertains to the status of the project; and the projected amount of funds available. • If the funds are expended for projects other than the originally-approved capital project, the jurisdiction must pay the funds back to Metro. • If the capital project is not completed within the time specified under the terms of the Capital Reserve Agreement, its funds will be subject to lapse. However, if the project is delayed, Jurisdictions should request in writing to Metro approval to extend the life of the reserve. Such projects will be reviewed on a case-by-case basis. • For rail projects, if it is decided by Metro that the Rail corridor is no longer a high priority, the agreement will be terminated and the Jurisdiction must:

1. Dissolve the Capital Reserve fund and return the accumulated funds, including any interest earned, to the Jurisdiction's LR fund; and 27 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

2. Reprogram the funds, within the next three (3) years from the Agreement termination date (see Appendix IV for Sample Agreement, page 40). While the Jurisdiction is not required to expend all of the funds within these three years, Metro reserves the right to impose a reasonable limit on the period of expenditure for reprogrammed funds.
• If there is action by Metro to suspend a rail project, the Jurisdiction may continue to hold onto the reserve until such time the project is reinstated as active or terminated. • If, at any time a Jurisdiction, independent of any Metro action, desires to reprogram all or part of the funds in the Capital Reserve Account, the Jurisdiction must indicate the proposed use of the accumulated funds to be reprogrammed, and receive Metro approval.
• If, at any time either party decides to terminate the Capital Reserve Project, a letter shall be submitted giving 30 days notice of the termination. • If the Capital Reserve Project is terminated, the Timely Use of Funds period on the lapsing date of the reserved funds will be reviewed and determined by the audit. d. Metro approval for reprogramming funds will be based on the following:
• If after exhausting all LR funds, additional funds are necessary to meet critical immediate or pending transit needs
• If the reprogramming request is approved, the agreement between Metro and the Jurisdiction will be either terminated or amended accordingly • If the reprogramming request is disapproved, the Jurisdiction would be required to continue the capital reserve account as stipulated or apply to draw the fund down for another Metro approved capital-related project.

K. FUND EXCHANGE
Only Proposition A funds may be exchanged or traded. Refer to page 13 for conditions.

L. LOANING LR FUNDS BETWEEN JURISDICTIONS (FOR PROPOSITION A ONLY) In order to meet short-term project needs while preserving longer-term reserves or to avoid loss of funds due to the timely-use provisions, the Jurisdictions may arrange a mutually acceptable temporary transfer or loan from one Jurisdiction to another. These loans are to be made on terms to be negotiated between the involved parties. The participating Jurisdictions are held mutually responsible for ensuring that the end use of Proposition A is for statutorily-allowed purposes. The timely use provision as indicated on page 30 will apply to loaning of such funds. Metro must be notified of the amount, terms and period of such arrangements within thirty days of such arrangements.

Note: Metro reserves the right to temporarily reallocate funds. Any temporary reallocation would be subject to full review by the Planning and Programming Committee and approved by Metro Board.

M. GIVING PROPOSITION C LR FUNDS TO ANOTHER JURISDICTION Since the Proposition C Ordinance does not allow trades or exchanges of these funds, a Jurisdiction can give its Proposition C funds to another Jurisdiction for the implementation of a mutual project. However, the Jurisdiction giving the funds away cannot accept an exchange or gift of any kind in return. Jurisdictions involved in giving funds should obtain Metro approval and keep official agreements on file. 28 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
N. REIMBURSEMENT
LR funds may be advanced for other grant funds as long as the project itself is eligible under LR Guidelines. The grant funds must be reimbursed to the LR fund.

IV. FINANCE SECTION
A. METRO'S METHOD OF APPORTIONMENT
The Proposition A Ordinance specifies that twenty-five percent (25%) of all Proposition A revenues, while the Proposition C Ordinance specifies that twenty percent (20%) of all Proposition C revenues, are to be allocated to Jurisdictions for local transit on a "per capita" basis. The annual estimate of Proposition A and Proposition C revenues will be derived by Metro staff based on projections by the State Board of Equalization.

After administrative costs of the Proposition A and Proposition C Programs are deducted, apportionments are made to all Jurisdiction within Los Angeles County, currently 88 cities and the County of Los Angeles (for unincorporated areas), on the basis of population. These population shares are based on the projected populations derived from annual estimates made by the California State Department of Finance.

B. METRO'S FUND DISBURSEMENT
The Proposition A and Proposition C funds are disbursed by Metro on a monthly basis.

The disbursements to an individual Jurisdiction will equal that Jurisdiction's populationbased share of actual net receipts for the month.

C. ACCOUNTING FOR PROPOSITION A AND PROPOSITION C REVENUES AND

EXPENDITURES BY JURISDICTIONS

1. ESTABLISHING A SEPARATE ACCOUNT
Jurisdictions which do not use the State Controller's Uniform System of Accounts and Records must establish a separate Proposition A and Proposition C Local Transit Assistance Account and deposit all Proposition A and Proposition C LR revenues, interest earnings received, and other income earned from Proposition A and Proposition C LR in that account.

In accordance with the State Controller's instructions, Jurisdictions which use the Controller's Uniform System do not need to establish a separate Proposition A and Proposition C Local Transit Assistance Account but will list all Proposition A and Proposition C revenues (including interest) and expenditures as special line items in the Uniform System. In any case, all Jurisdictions will be required to account for and identify all Proposition A and Proposition C receipts, interest, and expenditures. This will enable financial and compliance audits to be conducted in an organized and timely fashion. Sufficient unrestricted cash or cash equivalent must be available at all times to meet the needs of general Jurisdiction operations without impairment of the Proposition A and Proposition C Local Transit Assistance Accounts. 29 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

2. EXCEPTIONS FOR RECIPIENTS OF TDA ARTICLE 4 FUNDS
A separate account or fund is not mandatory when Proposition A and Proposition C LR funds are accounted for in an enterprise fund and are exclusively used as transit operating subsidies as long as the Jurisdiction/operator is able to maintain accounting records. These records should allow for the preparation of financial statements, which present assets, liabilities, revenues, expenditures (if any) and transfers out.

While it is necessary that Proposition A and Proposition C Program recipients be able to demonstrate that they have complied with applicable guidelines in expending Proposition A and Proposition C funds as operating subsidies, it is not necessary that such expenditures be separately identifiable for audit purposes.

3. POOLING OF FUNDS
Metro will allow Jurisdictions to pool Proposition A and Proposition C LR funds in order to obtain maximum return on investments. Such investment earnings must be reported and expended consistent with these guidelines. As in fund exchanges or transfers, Jurisdictions involved in such arrangements should keep adequate records of such transactions in order to allow for subsequent audits.

4. INTEREST AND OTHER EARNED INCOME
Jurisdictions are entitled to retain any and all interest revenues, which they may earn on their Proposition A, and Proposition C revenues. Other income earned from Proposition A and Proposition C projects such as fare revenues, revenue from advertising, etc., may also be retained by Jurisdictions in their LR accounts. Such earnings must be reported and expended consistent with these guidelines.

Jurisdictions must maintain accurate records for the amount of interest earned each year. Interest must be allocated to the Local Transit Assistance Account on an annual basis, and reported as part of the annual audit.

5. PROJECT REVENUE
The Jurisdictions need only report project-generated revenues, such as fares, when such revenues are retained and recorded by the Jurisdiction. Revenues should be reported on the accrual basis.

6. INTER-FUND TRANSFERS
On an accrual basis of accounting, Jurisdictions should make note of the following:
expenditures for an approved project, which are made from a fund other than the Proposition A or Proposition C LR fund and will be reimbursed by Proposition A and Proposition C LR funds, should be included in the Annual Expenditure Report to Metro in the period such expenditures are made and not in the period in which the disbursing fund is reimbursed for such expenditures.

7. UNEXPENDED PROJECT FUNDS
All unexpended project funds remaining upon completion of an approved project must be re-programmed.
30 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

8. ONGOING OPERATING PROJECTS
Continuing administration, transit or paratransit projects, are ongoing projects. Such projects which have unexpended funds at the year end (excluding any outstanding liabilities) may not carry fund balances into the next fiscal year. Ongoing projects must be resubmitted on an annual basis (see Annual Project Update on page 22).

9. CARRYOVER CAPITAL PROJECTS
All other types of projects not cited above which 1) are not completed within the applied fiscal year and 2) have unexpended funds (i.e., fund balance), may be carried into the next fiscal year without resubmitting a project description. However, until completed, such projects must continue to be reported in the Annual Project Update and Annual Expenditure Report (Forms B and C).

10. REIMBURSEMENT
Local Return funds may be used to advance a project which will subsequently be reimbursed by federal, state, or local grant funding, or private funds, if the project itself is eligible under LR Guidelines. The reimbursement must be returned to the appropriate Proposition A or Proposition C LR fund.

D. NON-SUBSTITUTION OF FUNDS

1. Proposition A and Proposition C revenues should only be used to maintain and/or improve public transit services. They may not be used to substitute for property tax revenues, which are currently funding existing programs. If the Jurisdiction is unable to segregate property tax from other general fund revenues which cannot be so distinguished, substitution of Proposition A and Proposition C funds for general funds is also prohibited.

2. Jurisdictions which currently receive federal and/or state transit-assistance funds may use Proposition A and Proposition C revenues to replace or supplement any other state, federal, or local transit funds, as long as there is no relation to the property tax (as noted above).

3. Metro Staff reserves the right to bring project proposals involving the substitution of funds before Metro Board.

E. TIMELY USE OF FUNDS

1. PROPOSITION A AND PROPOSITION C FUNDS
Under the Proposition A and Proposition C Ordinances, Jurisdictions have three years to expend LR funds. Funds must be expended within three years of the last day of the fiscal year in which funds were originally allocated. Therefore, by method of calculation, each Jurisdiction has the Fiscal Year of allocation plus three years to expend Proposition A and/or Proposition C funds. For example, a Jurisdiction receiving funds during FY 2004-05 must expend those funds, and any interest or other income earned from Proposition A and Proposition C projects, by June 30, 2008.
31 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Proposition A and Proposition C disbursements, interest income and other income earned from LR projects, such as fare revenues or revenues from advertising which are not expended within the allocated time will be returned to Metro for reallocation to Jurisdictions for discretionary programs of county-wide significance.

2. DETERMINING COMPLIANCE WITH TIMELY USE PROVISION
In applying the timely use provision, Metro will use a "First-In-First-Out" (FIFO) accounting principle, to afford Jurisdictions maximum time to expend funds. For example, City A had a fund balance of $1,000,000 as of June 30, 2004. In order to avoid lapsing LR funds, City A must expend a total of $1,000,000 or more from its LR funds during Fiscal Years 2004-05, 2005-06 and 2006-07. This calculation will be done individually for Proposition A and Proposition C funds.

3. EXTENSION OF TIMELY USE PROVISION
Metro will allow Jurisdictions to reserve funds for multi-year capital projects.

A specific project must be identified under the Capital Reserve Process. See Capital Reserve Process, page 26.

F. RELATIONSHIP TO TDA ENTRY AND FORMULA DISTRIBUTION
Provision of transit services with LR funds will not qualify Jurisdictions for Transit Development Act (TDA) funding programs. In addition, mileage will not be counted in Metro's subsidy allocation formula for TDA operators.

G. NATIONAL TRANSIT DATABASE (NTD)
Locally funded transit systems are encouraged to report NTD data, either directly to the Federal Transit Administration (FTA), or through Metro’s consolidated NTD report.

Examples of locally funded transit systems include community based fixed route circulators, community shuttles, Metrolink feeder services and other rail station and neighborhood shuttles (Code 110). Also included are locally funded paratransit, dial-aride and demand response services, including taxi voucher and specialized transportation programs (Codes 120, 130).

Benefits of increased NTD reporting include additional Federal Section 5307 capital funds for the LA County region, and improved data collection for regional transportation planning purposes. At this time, NTD reporting is voluntary for locally funded operators.

The Proposition A Incentive Guidelines, as adopted by Metro Board, provide a mechanism to reimburse voluntary reporters dollar-for-dollar for additional funds generated to the LA County region, subject to funds availability.

H. REPAYMENT OF FUNDS FOR FIXED ASSETS PURCHASES
If a facility ceases to be used for public transit use as originally stated in the project description, all Proposition A and Proposition C funds expended for the project must be returned to the Proposition A and Proposition C LR accounts. 32 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
General guidelines for repayment are as follows:

Land: Repayment of purchase price or appraised value, whichever is greater.

Facilities: 100% repayment of Proposition A and Proposition C LR funds if discontinuation of public transit use occurs between 0-5 years. 75% if discontinuation occurs in more than 5 years but less than 10 years. 50% if discontinuation occurs in more than 10 years but less than 15 years.
25% if discontinuation occurs in more than 15 years.

Repayment must be made no later than five years after the decision is made to cease utilizing the project as a public transit facility. Payback may be made in one lump sum or on an annual equal payment schedule over a five-year period.

Vehicles: Jurisdictions that cease to utilize vehicles for "public transit" purposes before their useful life, will be required to repay the funds into their Proposition A and Proposition C LR accounts in proportion to the useful life remaining. Federal standards for useful life will apply.

Repayment will be made in the same fiscal year as the vehicles ceased to be used for "public transit" purposes.
33 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
V. AUDIT SECTION
A financial and compliance audit will be conducted annually as part of Metro’s Consolidated Audit Program to verify adherence to the Proposition A and Proposition C guidelines.

Audits will be performed in accordance with auditing standards generally accepted in the United States of America and the Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that the audit is planned and performed to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. The audit shall include examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. The audit shall also include review of internal control procedures, assessing the accounting principles used, as well as evaluation of the overall basic financial presentation.

It is the jurisdictions’ responsibility to maintain proper accounting records and documentation to facilitate the performance of the audit prescribed in these guidelines.

Jurisdictions are required to retain Local Return records for at least three years following the year of allocation and be able to provide trial balances, financial statements, worksheets and other documentation required by the auditor. Jurisdictions are advised that they can be held accountable for excess audit costs arising from poor cooperation and inaccurate accounting records that would cause delays in the completion of the required audits.

A. FINANCIAL AND COMPLIANCE PROVISIONS
The Proposition A and Proposition C Local Return Audits shall include, but not limited to, verification of adherence to the following financial and compliance provisions of this guidelines:

Audit Area Penalty for Non-Compliance
Verification that jurisdictions which do not
use the State Controller’s Uniform System of
Accounts and Records has established a
Separate Proposition A and Proposition C
Local Transit Assistance Account for local
return purposes.

Verification of revenues received including
allocations, project generated revenues,
interest income.

Verification that funds were expended with
Metro’s approval and have not been
substituted for property tax.

Verification that the funds are expended
within three years from the last day of the
fiscal year in which funds were originally
allocated or received. (see “E” page 30).

Suspension of disbursements.

Audit exception.

Jurisdiction will be required to reimburse its
Local Return account for the amount
expended prior to or without approval.

Lapsed funds will be returned to Metro for
reallocation to jurisdictions for discretionary
programs of countywide significance.
34 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Verification that administrative expenditures
(project code 480) did not exceed over 20%
of the total annual LR expenditures.

Verification that projects with greater than
25% change from the approved project
budget has been amended by submitting
amended Project Description Form (Form
A).

Verification that the Annual Project Update
(Form B) was submitted on or before August
1st following the end of fiscal year.

Verification that the Annual Expenditure
Report (Form C) was submitted on or before
October 15th following the end of fiscal year.

Where expenditures include Street
Maintenance or Improvement projects
(project codes 430, 440 or 450), verification
that Pavement Management System (PMS) is
in place and being used.

Where funds expended are reimbursable by
other grants or fund sources, verification that
the reimbursement is credited to the Local
Return account upon receipt of
reimbursement.

Where Proposition A funds were given,
loaned or exchanged by one jurisdiction to
another, verification that the receiving
jurisdiction has credited its Local Return
Accounts with the funds received.

Where funds expended were for Intelligent
Transportation Systems (ITS) projects or
projects with ITS elements, verification that
a Self Certification has been completed and
submitted to Metro.

Verification that jurisdictions have a LR
Assurances and Understandings form on file.

Jurisdictions will be required to reimburse
their Local Return account for the amount
over the 20% cap.

Audit exception.

Audit exception.

Audit Exception.

Any Local Returned funds spent must be
returned to the Local Return Funds.

Audit exception and reimbursement received
must be returned to the Local Return Funds.

Audit exception and reimbursement of
affected funds to the Proposition A LR
account.

Audit exception.

Audit exception.
35 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Where a capital reserve has been established,
verification that a Capital Reserve
Agreement is in effect, a separate account for
the capital reserve is established, and current
status is reported in the Annual Project
Update (Form B).

Audit exception.

B. AUDIT DELIVERABLES
The auditor shall submit to the Jurisdictions and to Metro a Comprehensive Annual Report of Proposition A and Proposition C Local Return Funds no later than March 31st following the end of fiscal year. The report must contain at the minimum, the following:
x Audited Financial Statements – Balance Sheet, Statement of Revenues and Expenditures and Changes in Fund Balances.
x Compliance Report, Summary of Exceptions, if any, and ensuing recommendations. x Supplemental Schedules – Capital Reserves, if any; Schedule of Detailed Project Expenditures; and Capital Assets.

C. SUSPENSION OR REVOCATION
Jurisdictions are expected to take corrective action in response to the Local Return financial and compliance audit. Notwithstanding the provisions of these guidelines, Metro reserves the right to suspend or revoke allocation to jurisdictions that may be found to be in gross violation of these guidelines, or repeatedly committing violations, or refusing to take corrective measures.
36 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX I

PROPOSITION A AND PROPOSITION C LOCAL RETURN PROGRAM

SUMMARY OF PROPOSITION A AND PROPOSITION C USES

PROJECT TYPE PROPOSITION A PROPOSITION C
Streets and Roads Expenditures x Allowed exclusively for Bus Lanes and Curb Cuts at corners
located or adjacent to Bus
Stops
x Allowed only on streets that
carry regularly scheduled,
Fixed-Route Public Transit
Services and on streets that
carry public Paratransit trips
(see conditions outlined in
eligibility section of the
Guidelines)
Signal Synchronization x Allowed if performed to
predominantly benefit Transit.
x Bus Priority must be included
as part of the project.
x The street must have a
minimum of five (5) full-sized
transit buses in each direction
per hour
x Allowed on streets that are
heavily-used by Public Transit
x The street must have full-sized
transit buses operating on a
regularly scheduled fixed-route
(no minimum number of buses)
x Operating costs such as
software and hardware
maintenance are allowed
Bikeways and Bike Lanes x Not allowed x Commuter bikeways x Shall be linked to employment
sites.

Congestion Management Activities x Not allowed Most elements allowed, such as:
x Preparation of TDM
Ordinances and Deficiency
Plans.
x Land Use Analysis required by
CMP
x Monitoring of Transit
Standards by transit operators
Pavement Management System x Not allowed Some elements allowed, such as:
x One-time development costs of
a Pavement Management
System.
x The ongoing costs of
maintaining the Pavement
Management System (see
Guidelines for conditions)
Trading or Exchanging of Funds x Allowed if the traded funds are used for Public Transit
purposes
x Not allowed
37 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX II

ASSURANCES AND UNDERSTANDINGS REGARDING
RECEIPT AND USE OF PROPOSITION A and PROPOSITION C FUNDS

The undersigned, in conjunction with the receipt of funds derived from 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:

1. That the Proposition A and Proposition C funds will not be substituted for property tax funds which are currently funding existing public transportation programs;

2. That Proposition A and Proposition C funds will be used for public transit purposes as defined in Metro's Local Return Program Guidelines;

3. That the undersigned will submit to Metro a description of the use of funds:
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 1st of each year, an update of previously approved projects; d. Annually, by October 15th of each year, an update of the prior year’s expenditures;

4. Any proposed use of funds 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 funds, as submitted to Metro, 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;

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 Return Program Guidelines criteria.
38 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
B. The undersigned further understands and agrees:

1. That Metro will require the undersigned to return 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 Return 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 accounting system which will allow financial and compliance audits of Proposition A and Proposition C funds 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 returned 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 _____________________________________________
39 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX III

LOS ANGELES COUNTY METROPOLITAN

TRANSPORTATION AUTHORITY (METRO)

PAVEMENT MANAGEMENT SYSTEM CERTIFICATION

PROPOSITION C
The City of certifies that it has a Pavement Management System (PMS) in conformance with the criteria stipulated by the Proposition C Local Return Guidelines (identical to the criteria adopted by the Joint City/County/State Cooperation Committee, pursuant to Section 2108.1 of the Streets and Highways Code).

The system was developed by and contains, as a minimum, the following elements:
* Inventory of arterial and collector routes (including all routes eligible for Proposition C funds), reviewed and updated triennially. The last inventory update was completed , 20 . * Inventory of existing Class I bikeways, reviewed and updated triennially. * Assessment (evaluation) of pavement condition for all routes in the system, updated triennially. The last review of pavement conditions was completed , 20__.

* Identification of all sections of pavement needing rehabilitation or replacement. * Determination of budget needs for rehabilitation or replacement of deficient sections of pavement for current triennial period, and for following triennial period.

If PMS was developed in-house, briefly describe it on an attached sheet.

FROM:

AGENCY DATE __________________________
___________________________________________
(Please Print Name)

___________________________________________
(Please Print Name)
___________________________________________
(Title)
40 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX IV

CAPITAL RESERVE AGREEMENT
This Capital Reserve Agreement (this “Agreement”) is entered into as of _______, by and between the Los Angeles County Metropolitan Transportation Authority (“Metro”) and the City of __________ (the “City”).

RECITALS:

A. The City receives Proposition [A] [C] local return funds (the “Local Return Funds”) from Metro.

B. Pursuant to the Proposition A and Proposition C Local Return Guidelines, which are incorporated herein by reference, the City has three years, beginning the last day of the Fiscal Year in which funds were originally allocated, to expend the Local Return Funds. By method of calculation, each jurisdiction has three years plus the Fiscal Year of allocation to expend the Local Return funds. This is period is identified in the Guidelines as Timely Use of Funds.

C. As of Fiscal Year _____, the City desires to commit and accumulate its Local Return Funds beyond the Timely Use of Funds period in order to construct and/or purchase ________________ as more particularly described in City’s project description attached hereto as Exhibit A (the “Project”).

D. The Metro Board at its ________ board meeting approved the City’s establishment of a capital reserve fund for the Project.

NOW, THEREFORE, the parties hereby desire to agree to the following terms and conditions:

AGREEMENT

1. The City acknowledges that establishing a capital reserve fund for the Project constitutes a long term financial and planning commitment.

2. The City shall establish a separate interest bearing account or sub-account to be designated as the Capital Reserve Account. Commencing with Fiscal Year _____ , the City shall deposit $________ of its Local Return Funds into the Capital Reserve Account. For future Fiscal Years, the City shall deposit the amount specified in its Project Annual Update submitted to Metro for that fiscal year, provided, however, if the City fails to submit its Project Annual Update, the City shall deposit its Local Return Funds in an amount equal to the amount deposited into the Capital Reserve Account for the immediately preceding fiscal year.
41 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

3. All interest accruing on the Capital Reserve Account shall remain in such account.

4. The City shall complete the Project by _____________.

5. The City shall comply with all terms and conditions for the Capital Reserve Account as provided in the Proposition A and Proposition C Local Return Guidelines, including, without limitation, the following:

A. Each fiscal year, submitting the following items:

(i) an updated Project Description Form (Form A); and
(ii) an Annual Project Update (Form B), including the amount to be reserved and the current project status;
B. Every three years commencing with the Commencement Date of this Agreement, Metro will evaluate the Capital Reserve Account, the status of the Project and the projected amount of available funds. Based on this evaluation, Metro may require the City to take certain actions including, without limitation, terminating the Capital Reserve Account.

C. If the City uses the Local Return Funds in the Capital Reserve Account for a project different from the Project described above, the City shall return an amount equal to the improperly used funds to the Proposition A or Proposition C Central Account held by Metro. If the City fails to return the amount within 30 days from the date Metro notifies City that it must return the funds, the City hereby authorizes Metro to offset future Local Return allocations to the City in an amount equal to the improperly used funds.

D. If the City fails to complete the Project as specified by the date in paragraph 4 above, the Local Return Funds in the Capital Reserve Account may be subject to lapse unless otherwise agreed to in writing by the parties.

E. If the Project is a rail project, Metro may decide that the rail corridor is no longer a high priority. Metro can then terminate this Agreement and the City shall:
(i) close the Capital Reserve Account and return the outstanding balance of the Capital Reserve Account, including accrued interest (the “Returned Funds”), to the City’s local return account; and
(ii) reprogram the Returned Funds to be used within three years from the termination date of this Agreement. Any funds remaining after such threeyear period shall lapse.

F. If the City, independent of Metro action, desires to reprogram all or part of the funds in the Capital Reserve Account, the City must prior to such reprogramming, receive Metro’s written approval. The City shall provide Metro with notice of its desire to reprogram the funds in the Capital Reserve Account and indicate the proposed use 42 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
of the funds to be reprogrammed and the effect of such reprogramming on the Project. Metro approval may be based on, among other things, whether after exhausting all Local Return funds, additional funds are necessary to meet the City’s critical immediate or pending transit needs. If Metro approves reprogramming the funds, this Agreement shall be amended or terminated as appropriate. If Metro does not approve reprogramming the funds, the City must continue the Capital Reserve Account as provided herein or draw the funds down for Metro approved capital related project.

6. This Agreement shall commence on __________. This Agreement shall continue until such time as terminated by either party with a 30 day written notice under the conditions set forth in the Proposition A and Proposition C Local Return Guidelines.

IN WITNESS WHEREOF, the parties have executed this Capital Reserve Agreement by their duly authorized representatives as of the date above.

City of ___________________ Los Angeles County Metropolitan Transportation Authority
By:_______________________ By:______________________
Name:____________________ Name:___________________
Its:_______________________ Its:______________________
Approved as to form: Approved as to form:
_________________________ Raymond G. Fortner, Jr.

Name:____________________ County Counsel
Its:_____________________ By:_____________________
Deputy
43 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX V

SAMPLE FUND EXCHANGE AGREEMENT
(PROPOSITION A LOCAL RETURN ONLY)
This Fund Exchange Agreement is made and entered into this _______day of ____________, 20__, by and between the City of Surf City, California and the City of Mountain Valley, California with respect to the following facts:

A. The City of Mountain Valley proposes to provide Dial-A-Ride services to its elderly and individuals with disabilities. Approximately 20% of the City population is unable to use the available fixed route service due to frailty or handicap. No door-to-door public transit services are available in the City of Mountain Valley. Adequate Proposition A Local Return funding for such a service is not available given the limited amount of the City of Mountain Valley's Local Return allocation and the needs of other priority transit projects in the City.

B. City of Surf City, has uncommitted funding authority for its Fiscal Year 2000-01 allocation of Proposition A Local Return funds which could be made available to the City of Mountain Valley to assist in providing the services discussed in Paragraph A of this Agreement.

C. City of Mountain Valley is willing to exchange its general funds in the amount indicated in Section 1 below in exchange for City of Surf City’s uncommitted Proposition A Local Return funds.

D. City of Surf City is willing to exchange its uncommitted Proposition A Local Return funding in the amount indicated in Section 1 below to City of Mountain Valley, for the purpose identified in Paragraph A above, for City of Mountain Valley’s general funds.

Now, therefore, in consideration of the mutual benefits to be derived by the parties and of the premises herein contained, it is mutually agreed as follows:

1. Exchange. City of Surf City shall transfer $100,000 of its Fiscal Year 20__-20__ Proposition A Local Return Funds to City of Mountain Valley. In return, City of Mountain Valley shall transfer $50,000 of its General Funds to City of Surf City.

2. Consideration. City of Surf City shall transfer the Proposition A Local Return funds to City of Mountain Valley in twelve equal installments due the first day of each month (or in one lump sum payment). City of Mountain Valley shall transfer its general funds to City of Surf City in twelve equal installments due the first of each month (or in one lump sum payment).

The first installment shall be due and payable upon approval by the Los Angeles County Metropolitan Transportation Authority (“Metro”) of City of Mountain Valley's project description Form (Form A) covering the services discussed in Paragraph A above.

3. Term. This Agreement is effective on the date above written and for such time as is necessary for both parties to complete their mutual obligations under this Agreement. 44 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

4. Termination. Termination of this Agreement may be made by either party before the date of approval of the project description covering the funds in question by the Metro so long as written notice of intent to terminate is given to the other party at least five (5) days prior to the termination date.

5. Notices. Notices shall be given pursuant to this agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows:
a. City Manager
City of Surf City
101 Main Street
Surf City, CA 90000
b. City Manager
City of Mountain Valley
401 Valley Boulevard
Mountain Valley, CA 90000

6. Assurances
A. City of Mountain Valley shall use the assigned Proposition A Local Return funds only for the purpose of providing the services discussed in Paragraph A of this Agreement and within the time limits specified in Metro's Proposition A Local Return Program Guidelines.

B. Concurrently with the execution of this Agreement City of Mountain Valley shall provide Metro with the Standard Assurances and Understandings Regarding Receipt and Use of Proposition A Funds specified in the Guidelines regarding the use of the assigned Proposition A Local Return funds.

7. This Agreement constitutes the entire understanding between the parties, with respect to the subject matter herein. This Agreement shall not be amended nor any provisions or breach hereof waived, except in writing signed by the parties hereto.

IN WITNESS WHEREOF, the parties hereto have caused this Fund Exchange Agreement to be executed by their respective officers, duly authorized, on the day and year above written.

CITY OF _________________ CITY OF _________________________ BY ________________________ BY _________________________ ATTEST:
_______________________________ _______________________________________ City Clerk City Clerk
Approved as to Form: Approved as to Form:
45 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX VI

LOS ANGLES COUNTYWIDE

INTELLIGENT TRANSPORTATION SYSTEMS (ITS)

POLICIES AND PROCEDURES
Policy Summary
Federal regulations (23 CFR Parts 655 and 940 Intelligent Transportation System (ITS) Architecture and Standards; Final Rule) now require ITS projects funded with the Highway Trust Fund to conform to the National ITS Architecture and Standards; be guided by a regional architecture with geographic boundaries defined by stakeholder needs; and use systems engineering analysis on a scale commensurate with the project scope. It is Metro’s Policy to abide by the Federal ITS regulations and requirements for those agencies seeking federal funding programmed by Metro for projects subject to this rule. For consistency and to maximize benefits, Los Angeles Countywide ITS Policy and Procedures is also applied to projects with state and local funding sources programmed and administered by the Metro.

Procedures Summary
To ensure compliance with the ITS Policy, all ITS project sponsor agencies including Metro internal departments are required to complete the Los Angeles County Regional ITS Architecture Consistency Certification Form (Attachment B) and to self certify that their project’s ITS elements in whole or in part are consistent with the Los Angeles County Regional ITS Architecture.

Attached is the RIITS self-certification form. This form must be completed and submitted to Metro for each Local Return funded ITS project or project which includes an ITS element. To learn more about RIITS, please visit www.riits.net. For a complete copy of the Los Angeles Countywide ITS Policy and Procedures, you may go directly to http://RIITS.net/RegITSDocs.html and choose “Los Angeles Countywide ITS Policy and Procedures Document.”
46 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

LOS ANGELES COUNTY REGIONAL ITS ARCHITECTURE CONSISTENCY

SELF-CERTIFICATION FORM
This form should be completed and executed for all ITS projects or projects with ITS elements except routine maintenance and operations, traffic signal controller replacement, purchase of bus or rolling stock, expansion or enhancement of an existing operating system. The form should be sent to Metro Countywide Planning and Development (CP&D) for any planned ITS projects or proposed funding involving Local, State or Federal funds programmed or administered through the Metro at the time of submittal of project application.

1. Name of Sponsoring
Agency:____________________________________________________________

2. Contact Name:_______________________________________________________

3. Contact Phone:_______________________________________________________

4. Contact Email:_______________________________________________________

5. Project Description:
_______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________

6. Identify the ITS elements being implemented and the relevant National Architecture User Services(s), see Attachment A.
________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 47 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

7. Outline of the concept of operations for the project:
________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

8. Identify participating agencies roles and responsibilities:
________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ By signing and self-certifying this form, the agency commits itself to follow the ITS requirements listed below during project design and implementation. Please be advised that your project may be subject to further review and documentation by FHWA or FTA during project design and implementation phases:
x Perform a lifecycle analysis for the ITS project elements and incorporate these costs into the Operations and Maintenance plan as part of the system engineering process, x Maintain and operate the system according to the recommendations of the Operations and Maintenance plan upon project completion,
x Use the systems engineering process and document the system engineering steps, and x Use the Los Angeles County Regional ITS Architecture interface standards if required and conform to the regional configuration management process.

Signature:
___________________________________ Date_________
Agency Representative
Please return the original Project Self Certification Form to Metro Department of CP&D, Attention, Ms.

Carol Inge, Deputy Executive Officer, Los Angeles County Metropolitan Transportation Authority, One Gateway Plaza, MS 99-22-1, Los Angeles, CA 90012-2952
48 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX VII

ELIGIBLE RECREATION TRANSIT SERVICE AREA
Recreational transit area eligible for full Proposition A & C funding Recreational transit area available for Proposition A & C funding on a proportional share basis 49 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

LOCAL RETURN FORMS
Summary:

Project Code: All projects must have Project Codes
(see column on right). This code is critical in Form
submittal as it is used in the LR database system.

Sequence Number: Sequence Numbers distinguish
between the different projects being implemented.

Indicate the sequence number of the project that is the order of submittal for the project (i.e., oldest approved to most recent approval).

Form A should be submitted whenever a Jurisdiction is
requesting the approval of a new project or if there is a budget or scope change of more than 25 percent in an
ongoing transit or paratransit project (as defined in the Proposition A and Proposition C Guidelines).

Form B requires Jurisdictions to give an update of
already approved, ongoing and carryover Prop A and
Prop C LR projects. Since new projects require
additional information, please include all new projects on Form A only. (Note: Jurisdictions are required to call out all administration charges to Direct Administration in order to verify compliance of 20 percent maximum limit).

Form C requires Jurisdictions to report the annual
expenditures for both Prop A and Prop C LR for the
previous fiscal year. (Note: Jurisdictions are also
required to submit an accounting of recreational transit trips, destinations and costs, if applicable).

APPENDIX VIII

PROJECT CODES
PROP A AND PROP C LR JOINT CODES:
110 Fixed Route Service
120 Paratransit Service - General Public Dial-a-Ride
130 Paratransit Service - Elderly & Disabled (E&D)
140 Recreational Transit Service (incl. special event)
150 Bus Stop Improvement (BSI) Program
160 Bus Stop Improvement - Capital
170 Bus Stop Improvement - Maintenance
180 Capital - Vehicle & Misc. Equipment (fare box)
190 Capital - Vehicle Modification Program
200 Capital - Vehicle Purchase Program
210 Transportation Systems Management (TSM)
220 Transit Security - On-Board & Bus Stop
230 Transit Security - Station/Park-and-Ride Lot
240 Fare Subsidy (Taxi)
250 Fare Subsidy (User-Side Subsidy)
270 Transportation Planning
(Prop A eligible and Prop C eligible)
280 Transit Marketing
290 Park-and-Ride Lot Program
300 Transit Facility Transportation Enhancements
310 Transit Centers Program
320 Metro Rail Capital
350 Right-of-Way Improvements
360 Commuter Rail (Operations)
370 Commuter Rail (Capital)
380 Capital Reserve
390 Rail Transit Enhancements
480 Direct Administration
500 Other (Specify)
Exclusive Uses of Prop A LR Funds:
400 Signal Synchronization
405 Fund Exchange
410 Transportation Demand Management
Exclusive Uses of Prop C LR Funds:
400 Signal Synchronization & Traffic Management
410 Transportation Demand Management
420 Congestion Management Program (CMP)
430 Bikeways & Bike Lanes
440 Street Repair and Maintenance (e.g., slurry
seal)
450 Street Improvement Projects (e.g., widenings)
460 Street TSM Projects (e.g., signalization)
470 Pavement Management Systems (PMS)
Form A - Project Description Form
(This form may be submitted any time during the fiscal year) --Instructions--
50 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

Click here to access form.

Form A - Project Description Form
(This form may be submitted any time during the fiscal year) --Instructions--
51 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Summary:

Form A should be submitted whenever a
Jurisdiction is requesting the approval of a new
project or if there is a budget or scope change of
more that 25 percent in an ongoing transit or
paratransit project (as defined in the Prop A and
Prop C Guidelines).

Key Terms:
x Local Jurisdiction: Indicate your City or
Agency.
x Fiscal Year: Indicate the fiscal year (July 1 -
June 30th) for which Prop A or Prop C LR funds
will be used.
x Project Description and Justification:

Provide a brief project description (include any
necessary details) to help Metro staff determine
project scope and eligibility.
x Project Revenues: Under the appropriate fund
sources, indicate the revenues expected to fund
the project.
x Accessibility Features: Check box applicable
for Bus Stop Improvement Projects only.
x Street Maintenance, Improvement or
bikeway projects: Check the box to indicate
that a Pavement Management System (PMS) is
in place and being used (see Appendix III).
x Intelligent Transportation Systems projects:

Please check the box is this project is or has an
ITS project element to indicate that an ITS selfcertification (see Appendix VI) for has been submitted to Metro.
x Authorized Signature: Form A may be
printed, signed and dated by authorized Local
Jurisdiction, and sent to Metro by mail or fax, or
e-mailed as described in Step 5.

Excel Operations:

Step 1 – Confirm computer is set to run macros
Open Microsoft Excel application
From the menu, select:
x Tools
x Macros
x Security
x Set it at Medium
x Press OK
Close Excel application
Step 2 Open Form A
Visit Metro’s Web Site at www.metro.net
x Go to Projects/Programs
x Click on Local Return
x Click on Form A to open
Click yes to open the document containing Macros
Step 3 – Enter Form A Information
Once Form A is opened,
x Select correct agency (click on small arrow to
scroll agency names)
x Enter contact name, telephone number, and email address x Enter project information on Form A
Step 4 – Save document under MY DOCUMENTS
Once information is entered on Form A, save document in My Documents
x Save Document as Form A City of ..

Step 5 – Forward Form A to Metro
Open Outlook (or other e-mail browser)
On e-mail include:
x Contact information including name, title,
telephone number, and jurisdiction
x Brief description of the e-mail (transmittal)
x Attach Form A to the e-mail message
Important Changes
ƒ All forms require that the entire value of project be entered, no longer will values be stated in $ thousands. ƒ DO NOT alter forms. If for any reason there is a difference in Project Code, Sequence Number, or Project Title, contact Metro to resolve any discrepancies.
ƒ Enter value for every project. If project is finalized, enter COMPLETE. DO NOT enter a dollar value.

Form B – Annual Project Update Form
(This form must be submitted by August 1st of each year) --Instructions--
52 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Click here to access form.

Form B – Annual Project Update Form
(This form must be submitted by August 1st of each year) --Instructions--
53 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Summary:

Form B requires Jurisdictions to give an update of
already approved, ongoing and carryover Prop A
and Prop C LR projects. Since new projects require
additional information, please include all new
projects on Form A only. (Note: Jurisdictions are
required to call out all administration charges to Direct Administration in order to verify compliance of 20 percent maximum limit).

Key Terms:
x Local Jurisdiction: Indicate your City or
Agency.
x Fiscal Year: Indicate the fiscal year (July 1 -
June 30th) for which Prop A or Prop C LR funds
will be used.
x Project Code: Enter Project Codes (see
column on right). This code is critical in Form
submittal as it is used in the LR database
system.
x Sequence Number: Sequence Numbers
distinguish between the different projects being
implemented. Indicate the sequence number of
the project which is the order of submittal for the
project (i.e., oldest approved to most recent
approval).
x Project Title: Provide Project Title as indicated
on the Form A or previous Form B submittal.
x Project Status: Check box applicable –
Completed, On-going or Carryover.
x Project Revenues: Under the appropriate fund
sources, indicate the itemized revenues
expected to fund the project.
x Authorized Signature: Form B may be
printed, signed and dated by authorized Local
Jurisdiction, and sent to Metro by mail or fax, or
e-mailed as described in Step 5.

Excel Operations:

Step 1 – Confirm computer is set to run macros
Open Microsoft Excel application
From the menu, select:
x Tools
x Macros
x Security
x Set it at Medium
x Press OK
Close Excel application
Step 2 Open Form B
Visit Metro’s Web Site at www.metro.net
x Go to Projects/Programs
x Click on Local Return
x Click on Form B to open
Click yes to open the document containing Macros
Step 3 – Enter Form B Information
Once Form B is opened,
x Select correct agency (click on small arrow to
scroll agency names)
x Enter contact name, telephone number, and email address x Enter appropriate values for each project
Step 4 – Save document under MY DOCUMENTS
Once the values of each project have been entered, save document into My Documents
x Save Document as Form B City of ..

Step 5 – Forward Form B to Metro
Open Outlook (or other e-mail browser)
On e-mail include:
x Contact information including name, title,
telephone number, and Jurisdiction
x Brief description of the e-mail (transmittal)
x Attach Form B to the e-mail message
Important Changes
ƒ All forms require that the entire value of project be entered, no longer will values be stated in $ thousands. ƒ DO NOT alter forms. If for any reason there is a difference in Project Code, Sequence Number, or Project Title, contact Metro to resolve any discrepancies.
ƒ DO NOT add or remove project on Form B, please contact Metro regarding any changes. ƒ Enter value for every project. If project is finalized, enter COMPLETE. DO NOT enter a dollar value.

Form C – Annual Expenditure Report Form
(This form must be submitted by October 15th of each year) --Instructions--
54 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

Click here to access form.

Form C – Annual Expenditure Report Form
(This form must be submitted by October 15th of each year) --Instructions--
55 Proposition A and Proposition C
Local Return Guidelines 2007 Edition
Summary:

Form C requires Jurisdictions to report the annual
expenditures for both Prop A and Prop C LR for the
previous fiscal year. (Note: Jurisdictions are also
required to submit an accounting of recreational transit trips, destinations and costs, if applicable).

Key Terms:
x Local Jurisdiction: Indicate your City or
Agency.
x Fiscal Year: Indicate the fiscal year (July 1 -
June 30th) for which Prop A or Prop C LR funds
will be used.
x Project Title: Provide Project Title as indicated
on the Form A or previous Form B submittal.
x Project Status: Check box applicable –
Completed, On-going or Carryover.
x Project Revenues: Under the appropriate fund
sources, indicate the itemized revenues
expected to fund the project.
x Authorized Signature: Form C may be
printed, signed and dated by authorized Local
Jurisdiction, and sent to Metro by mail or fax, or
e-mailed as described in Step 5.

Excel Operations:

Step 1 – Confirm computer is set to run macros
Open Microsoft Excel application
From the menu, select:
x Tools
x Macros
x Security
x Set it at Medium
x Press OK
Close Excel application
Step 2 Open Form C
Visit Metro’s Web Site at www.metro.net
x Go to Projects/Programs
x Click on Local Return
x Click on Form C to open
Click yes to open the document containing Macros
Step 3 – Enter Form C Information
Once Form C is opened,
x Select correct agency (click on small arrow to
scroll agency names)
x Enter contact name, telephone number, and email address x Enter appropriate values for each project
Step 4 – Save document under MY DOCUMENTS
Once the values of each project have been entered, save document into My Documents
x Save Document as Form C City of ..

Step 5 – Forward Form C to Metro
Open Outlook (or other e-mail server)
On e-mail include:
x Contact information such as name, title, telephone
number, and Jurisdiction
x Brief description of the e-mail (transmittal)
x Attach Form C on the e-mail message
Important Change Important Changes
ƒ All forms require that the entire value of project be entered, no longer will values be stated in $ thousands. ƒ Enter value for every project. If project is finalized, enter COMPLETE. DO NOT enter a dollar value 56 Proposition A and Proposition C
Local Return Guidelines 2007 Edition

APPENDIX IX

GLOSSARY OF TERMS

USED IN LOCAL RETURN GUIDELINES
Americans with Disabilities Act (ADA), 1990
A civil rights law passed by Congress in 1990 that makes it illegal to discriminate against people with disabilities in employment, services provided by state and local governments, public and private transportation, public accommodations and telecommunications.

Advanced Traveler Information Systems (ATIS)
ATIS technologies provide travelers and transportation professionals with the information they need to make decisions, from daily individual travel decisions to larger scale decisions that affect the entire system, such as those concerning incident management.

Air Quality Management District (AQMD)
Administrative districts organized in California to control air pollution. Generally, AQMDs and their national parallel encompass multiple jurisdictions and closely follow the definition of Consolidated Metropolitan Statistical Areas and Metropolitan Statistical Areas.

Adaptive Traffic Control Systems (ATCS)
ATCS uses sensors to interpret characteristics of traffic approaching a traffic signal, and using mathematical and predictive algorithms, adapts the signal timing accordingly, optimizing its performance.

Advanced Traffic Management Systems (ATMS)
ATMS technologies apply surveillance and control strategies to improve traffic flow on highways and arterials.

Automatic Vehicle Location (AVL)
The installation of devices on a fleet of vehicles (e.g., buses, trucks, or taxis) to enable the fleet manager to determine the level of congestion in the road network. AVL is also used to enable the fleet to function more efficiently by pinpointing the location of vehicles in real time.

Bicyclists Rights
According to CVC21200 Bicyclists have all the rights and responsibilities of vehicle drivers.

Bikeway Definitions
Class I Bikeway - Off road paved bike path
Exclusive bi-directional path designated for bicycles or as multi-use path shared with pedestrians (if pedestrian path is not adjacent).

Class II Bikeway - On-road striped bike lane
Class III Bikeway - On-road bike route (signage only)
Streets designated as preferred routes through high demand corridors, used to provide continuity to other bicycle facilities (usually II bikeways), or provide routes to transit or other destinations where the streets are too narrow for bike lanes. Usually bike routes have some added preferential bike treatments that offers advantages over alternative routes. 57 Proposition A and Proposition C
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Bus turn-out
A branch from or widening of a road that permits buses to stop, without obstructing traffic, while laying over or while passengers board and alight. It is designed to allow easy reentry of the bus into the traffic stream.

California Streets and Highways Code
This is the legal code regulating the roads and highways of the State of California. The code sets forth the administration and funding of the highway system, the relationship of the state government to the county and local governments in regards to streets and roads, administration of tolls collected by the state, and various acts dealing with streets and highways passed by the state legislature.

Capital Reserve
With Metro Board approval and signed Capital Reserve Agreement, funds may be set aside for Capital projects to provide reserve funds for a period of time over the three year timely use provision.

Carry-over Project
A project that was not completed and which takes two or more year to finish. The construction of a transit center or a citywide bus shelter installation project may be multi-year projects.

Congestion Management Program (CMP)
A state mandated program linked to Proposition 111 (1990) that requires each county to prepare a plan to address traffic congestion on regional streets and freeways. Elements of the CMP include designation of a regional highway system with level of service (LOS) standards, a local trip reduction ordinance, capital improvement program, land use impact analysis, and transit performance standards. If LOS standards are not maintained, deficiency plans must be prepared and implemented.

Changeable Message Signs (CMS)
Electronic road and transit station signs used to display information that can be updated, such as warnings of road incidents, hazardous weather conditions, or estimated arrival times of transit vehicles.

Used in ATIS and ATMS. Also called Variable Message Signs (VMS).

Councils of Governments (COG)
Regional planning bodies that exist throughout the United States. A typical council is defined to serve an area of several counties, and they address issues such as regional planning, water use, pollution control, and transportation. The Council membership is drawn from the county, city, and other government bodies within its area.

Commuter Rail
Railroad local and regional passenger train operations between a central city, its suburbs and/or another central city. It may be either locomotive-hauled or self-propelled, and is characterized by multi-trip tickets, specific station-to-station fares, railroad employment practices and usually only one or two stations in the central business district. Also known as "suburban rail." Curb Cut
A small ramp between the sidewalk and curb that facilitates passage by wheelchairs, strollers, etc. between the sidewalk and street intersection.

Commercial Vehicle Operations (CVO)
ITS program to apply advanced technologies to commercial vehicle operations, including commercial vehicle electronic clearance; automated roadside safety inspection; electronic purchase of credentials; 58 Proposition A and Proposition C
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automated mileage and fuel reporting and auditing; safety status monitoring; communication between drivers, dispatchers, and intermodal transportation providers; and immediate notification of incidents and descriptions of hazardous materials involved.

Demand Responsive
Non-fixed-route service utilizing vans or buses with passengers boarding and alighting at pre-arranged times at any location within the system's service area. Also called "Dial-a-Ride." Dial-a-Ride
A shared-ride public transportation service for senior citizens age 65 and older, people with disabilities and people who meet American Disabilities Act (ADA) eligibility.

Direct Administration
Those fully burdened salaries and overhead, office supplies and equipment directly associated with administering LR operating and capital projects.

Electronic Payment Systems
Systems that collect payments using an electronic transponder. Payment types include fees for transit fares, taxis, parking, and tolls. Electronic payment systems can also gather real-time transit information on travel demand for better planning and scheduling of services.

Farebox revenue
Money, including fares and transfers, zone and park and ride receipts, paid by transit passengers; also known as "passenger revenue."
Financial and Compliance Audit
The review and examination of the jurisdictions' books and records to verify compliance with existing statutes governing the Local Return Funds. Such review and examination include verification of adherence to the generally accepted accounting principles, review of internal control system and evaluation of compliance with the Local Return Guidelines. The Financial and Compliance Audit shall be conducted by an independent auditor and in accordance with the Government Auditing Standards issued by the Comptroller General of the United States.

Fiscal year
A twelve-month period to which the annual budget applies and at the end of which a governmental unit determines its financial position and the results of its operations. This twelve-month period varies from the calendar year. In the California, State Government system, the fiscal year starts July 1 and ends the following June 30. In the Federal system, the fiscal year starts October 1 and ends the following September 30.

Fixed Route
Service provided on a repetitive, fixed-schedule basis along a specific route with vehicles stopping to pick up and deliver passengers to specific locations; each fixed-route trip serves the same origins and destinations, unlike demand responsive and taxicabs.

Flexible Destination
A type of demand-responsive service which takes on passengers according to a fixed route, and drops passengers off at alternative destinations within a defined service area. 59 Proposition A and Proposition C
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Formula Funds
Funds distributed or apportioned to qualifying recipients using formulas which are based on statistics (such as operating performance or route characteristics) and established by law or by funding agencyadopted policies.

Fund Exchange
Funds traded to another Local Jurisdiction or Agency for an agreed amount. Funds returned may be from General, State, Federal funds or other agreed upon method of exchange between the agencies.

Eligible under Proposition A only.

Giving
Local Jurisdictions can give Prop C funds to another Jurisdiction for a transit related project as long as Metro approves, and no exchange or gift of any kind is received in return.

Headsign
A destination sign above the front (and sometimes side) window of a bus or train.

Information Exchange Network (IEN)
The Los Angeles County IEN can exchange real-time TCS data from intersections in each of the county's several traffic forums and enables all forums, the county, and partner cities to access the information.

Intelligent Transportation Systems (ITS)
This program is an initiative of the United States Department of Transportation to add information technology to surface transportation infrastructure and vehicles. It aims to manage vehicles, roads, and routes to improve efficiency, safety and reduce vehicle wear, transportation times and fuel costs. ITS Architecture relates to the overarching framework that allows individual ITS services and technologies to work together, share information, and yield synergistic benefits.

Loaning
Local Jurisdictions may arrange a mutually acceptable temporary transfer or loan from one Jurisdiction to another. Refer to Metro’s Administrative Process for additional information.

Local Jurisdiction
City or Agency that is the applicant for the project to be funded with Proposition A or Proposition C Local Return (LR).

Maintenance
Maintenance refers to minor work to prevent further deterioration, such as, slurry seal, or pothole repair Maintenance of Effort
This requirement provides for the continuation of funding commitments by local jurisdictions on roadways used by public transit while supplementing these improvements with Proposition C Local Return funds. Local Return funds cannot be used to replace any pre-existing roadway funding but only to augment what is currently being utilized by local jurisdictions. In the past, local jurisdictions have had to report to the State Controller those funds spent on streets and roads in order to be in compliance with the California Streets and Highways Code.
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Metro
The Metropolitan Transportation Authority. Metro staff manages the administration of the program.

Metro refers to the administrative staff.

Metro Art
The Metro department responsible for incorporating art enhancements into Metro projects, including rail stations, bus stops, construction sites, streetscapes and other public oriented improvements..

Metro Board
The Metropolitan Transportation Authority has an established member list of Board of Directors and Executives as appointed by the Board. The Metro Board makes decisions on funding allocations, Guidelines, Capital Reserves and possible appeals.

Metro Rail
Rail service operated by the Los Angeles County Metropolitan Transportation Authority (Metro) Metro Long Range Transportation Plans
In April 2001, the Metro Board adopted the Long Range Transportation Plan. This plan is a 25-year blueprint for transportation planning in Los Angeles County through the year 2025. The Long Range Transportation Plan assesses future population increases projected for the county and what such increases will mean for future mobility needs. The plan recommends what can be done within anticipated revenues, as well as what could be done if additional revenues become available.

Metro Short Range Transportation Plans
The 2003 Short Range Transportation Plan focuses on the phasing of transportation improvements through 2009 that will help put together the pieces of our mobility puzzle. The Plan relies on performance-based modeling to identify the best solution for each mobility challenge. In total, $19.3 billion is needed to fund this Plan’s transportation priorities through 2009. These include the costs of operating the current system and funding new transportation solutions.

National ITS Architecture
A systems framework to guide the planning and deployment of ITS infrastructure. The national ITS architecture is a blueprint for the coordinated development of ITS technologies in the U.S. The architecture defines the functions that must be performed, the subsystems that provide these functions, and the information that must be exchanged to support the defined User Services. The National ITS Architecture was released as a final document in June 1996.

National Transit Database (NTD)
A reporting system administered by the Federal Transit Administration (FTA) that uses uniform categories to record mass transportation financial and operating information through a uniform system of accounts on an annual basis.

Paratransit
Auxiliary public transportation available to elderly or disabled passengers or patrons in areas, which are underserved by conventional transit. Paratransit is generally operated using smaller vehicles, with flexible schedules and routes.

Park-and-Ride
An access mode to transit in which patrons drive private vehicles or ride bicycles to a transit station, bus or rail stop or carpool or vanpool waiting area and park their vehicles in the area provided for the 61 Proposition A and Proposition C
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purpose. They then ride the transit system or take the carpool/vanpool to their destinations. (TRB) 2 involve the use of a motorized personal vehicle in conjunction with transit. Park-and-ride facilities include a parking lot or portion of a lot near transit stops, allowing transit users to park their personal vehicles for a short period of time and make convenient transfers to the transit system.

Pavement Condition Index (PCI)
A value for a pavement segment representing its condition. The Pavement Condition Index (PCI) is a numerical rating of the pavement condition that ranges from 0 to 100, with 0 being the worst possible condition and 100 being the best possible condition.

Pavement Management System (PMS)
A systematic process that provides, analyzes, and summarizes pavement information for use in selecting and implementing cost-effective pavement construction, rehabilitation, and maintenance programs and projects. A PMS involves the identification of optimum strategies at various Pavement Condition Index (PCI) levels and maintains pavements at an adequate PCI Threshold (level of serviceability). These include, but are not limited to, systematic procedures for scheduling maintenance and rehabilitation activities based on optimization of benefits and minimization of costs.

Project Code
Project Codes distinguish the type of projects being implemented.

Reconstruction
Activities that extend the serviceable life by at least 10 years, and involve reworking or removal and replacement of all or part of the engineered layers in the pavement structure. Removal and replacement of all asphalt and concrete layers and often the base and sub-base layers, in combination with remediation of the sub-grade and drainage, and possible geometric changes. Due to its high cost, reconstruction is rarely done solely on the basis of pavement condition. Other circumstances such as obsolete geometrics, capacity improvement needs, and/or alignment changes, are often involved in the decision to reconstruct a pavement.

Recreational Transit
City-sponsored trips to recreational or cultural destinations within defined geographic area. Charter buses are frequently used and trips must be advertised to the general public. Service is generally contracted out to a private sector operator.

Rehabilitation
Activities that extend the serviceable life by at least 10 years, and add structural capacity to the pavement.

Reimbursement
LR funds may be advanced for other grant funds as long as the project itself is eligible under LR Guidelines. The grant funds must be reimbursed to the LR fund.

Resurfacing
Activities that extend the serviceable life by at least 10 years and change the surface characteristics of the pavement. Resurfacing generally consists of placing additional asphalt concrete over a structurally sound highway or bridge that needs treatment to extend its useful life. 62 Proposition A and Proposition C
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Revenue Vehicle Miles
The miles a vehicle travels while in revenue service. Vehicle revenue miles exclude travel to and from storage facilities, training operators prior to revenue service, road tests and deadhead travel, as well as school bus and charter services.

Ride matching programs
Programs that provide nearest major intersection-matching services to commuters who wish to establish a car- or van-pool.

Right of Way
Land; a public or private area that allows for passage of people or goods, including, but not limited to, freeways, streets, bicycle paths, alleys, trails and walkways. A public right-of-way is dedicated or deeded to the public entity for use under the control of a public agency.

Regional Integration of Intelligent Transportation Systems (RIITS) This system supports information exchange between freeway, traffic, transit and emergency service agencies to improve management of the Los Angeles County transportation system.

Ramp Metering Station (RMS)
Traffic-responsive regulation of vehicle entry to a freeway, typically via sensor controlled freeway ramp stoplights.

Sequence Code
Sequence Codes distinguish between the different projects being implemented.

Shuttle
A public or private vehicle that travels back and forth over a particular route, especially a short route or one that provides connections between transportation systems, employment centers, etc.

State Controller
The Controller is the state’s chief financial officer and is elected by a vote of the people every four years. The duties of the State Controller are prescribed by the Constitution with additional powers and functions set by statute. The primary function of the State Controller is to provide sound fiscal control over both receipt and disbursement of public funds, to report periodically on the financial operations of both state and local governments and to make certain that money due the state is collected in a fair, equitable and effective manner. The office also enforces collection of delinquent gas, truck and insurance taxes.

Traffic Control Systems (TCS)
Advanced systems that adjust the amount of “green time” for each street and coordinate operation between each signal to maximize traffic flow and minimize delay. Adjustments are based on real-time changes in demand.

Traffic/Transportation/Transit Management Center (TMC)
Traffic/Transportation/Transit Management Center (interchangeable) Transfer Center
A fixed location where passengers interchange from one route or transit vehicle to another. 63 Proposition A and Proposition C
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Transit revenues
Revenues generated from public transportation (bus, rail or other conveyance for public).

Transportation Demand Management (TDM)
A program designed to maximize the people-moving capability of the transportation system by increasing the number of people in each vehicle or by influencing the time of, or need to, travel. To accomplish these sorts of changes, TDM programs must rely on incentives or disincentives to make the shifts in behavior attractive. The term TDM encompasses both the alternatives to driving alone and the techniques or supporting strategies that encourage the use of these modes.

Transportation Improvement Program (TIP)
A prioritized program of transportation projects to be implemented in appropriate stages over several years (3 to 5 years). The projects are recommended from those in the transportation systems management element and the long-range element of the planning process. This program is required as a condition for a locality to receive federal transit and highway grants.

Transportation Management Associations (TMAs)
An urbanized area with a population more than 200,000 (as determined by the most recent decennial census) or other area when TMA-designation is requested by the Governor and the MPO (or affected local officials), and officially designated by the Federal Highway Administration and the Federal Transit Administration. TMA designation applies to the entire metropolitan planning area(s). (23CFR500).

Transportation Enhancements (TE)
A funding program of the USDOT Federal Highway Administration that offers communities the opportunity to expand transportation choices. Activities such as safe bicycle and pedestrian facilities, scenic routes, beautification, and other investments increase opportunities for recreation, accessibility, and safety for everyone beyond traditional highway programs.

Transportation Systems Management (TSM)
Transportation Systems Management is the cooperative development and implementation of strategies to maximize the safe movement of people and goods by managing an integrated multimodal transportation system. The effective management of the system will enable the traveling public more efficient use of the existing transportation facilities. Elements of TSM include incident management programs, traveler information systems, traffic signal systems upgrades, intermodal freight planning, surveillance control systems, demand management techniques, and commercial vehicle operations.

Traffic Signal Priority (TSP)
It gives preferential treatment to one type of system user over other users and allows signal controllers to service competing needs in the order of relative importance.

User Services
Services available to travelers on an ITS-equipped transportation system, as set forth by ITS America.

The 30 services are arranged in 7 categories, as follows: travel and transportation management, travel demand management, public transportation operations, electronic payment, commercial vehicle operations, emergency management, and advanced vehicle control and safety systems.

User-side Subsidies
This refers to funds set aside to offer discounts to public transit users. Such subsidies are approved by local jurisdictions councils or boards and are optional. A city, for example, pays full price for a monthly 64 Proposition A and Proposition C
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bus or rail pass but will sell it to a transit user (city resident) for a lower (subsidized) rate. Each city defines who is eligible for subsidies based on demand and budgetary constraints.

Vehicle Miles Traveled (VMT)
The number of miles traveled within a specific geographic location by vehicles for a period of one year.

VMT is calculated either by using two odometer readings or, in the absence of one of the odometer readings, by regression estimate.

REFERENCES
American Public Transportation Association
Website: http://www.apta.com/research/info/online/glossary.cfm California Highway Design Manual Chapter 1000
California Streets and Highways Code
Website: http://ntl.bts.gov/
Caltrans-California Department of Transportation
Website: http://www.dot.ca.gov/
City and County of Honolulu and the Hawaii Department of Transportation Website: http://www.oahutrans2k.com/info/glossary
Department of Energy
Website: http://www.energy.gov/
Federal Transportation Authority glossary
Website: http://www.fta.dot.gov/31_ENG_Printable.htm
Federal Highway Administration (ITS glossary )
Website: http://www.fhwa.dot.gov/planning/glossary/glossary_listing.cfm Kitsap Transit, Bremerton, Washington.

Website: www.kitsaptransit.org/home/ktjargon.html
State of North Carolina Department of Transportation
Website: http://www.ncdot.org/transit/transitnet/Glossary/ US Department of Transportation glossary
Website: http://www.dot.ca.gov/hq/MassTrans/trterms.htm Other website sources
http://en.wikipedia.org/wiki/infrastructure
http://sco.ca.gov
http://www.belmont.gov/SubContent.asp?CatId=240000622
http://www.dieselnet.com/gl-a.html
http://www.pvpc.org/html/tier3/transp/trans_study.html
http://www.tempe.gov/tim/DialARide.htm
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ACKNOWLEDGEMENTS
The Fiscal Year 2007 revision of the Proposition A and Proposition C Local Return Guidelines was made possible through the combined efforts of Metro staff and the constituent representatives comprising the Local Return Guidelines Update Working Group:

Maged El-Rabaa, County of Los Angeles, Technical Advisory Committee Mike Uyeno, City of Los Angeles, Technical Advisory Committee Desi Alvarez, City of Downey, Gateway Cities Council of Governments Victor Rollinger, League of California Cities, South Bay Cities Council of Governments Greg Hermann/Ryan Mills, City of Burbank, Arroyo Verdugo Cities Council of Governments Daniel Rix, City of Pasadena, San Gabriel Valley Council of Governments James Thorsen, City Of Agoura Hills, Los Virgenes –Malibu Council Of Governments Mark Bozigian, City Of Lancaster, North County Transportation Coalition David Feinberg, City of Santa Monica, Westside Cities Council of Governments Sumire Gant, City of Long Beach
Mark Yamarone, City of Pasadena, TDM/Air Quality Subcommittee Susan Lipman, City of Santa Clarita, Bus Operators Subcommittee David Feinberg, City of Santa Monica,Bus Operators Subcommittee Joyce Rooney, City of West Hollywood, Local Transit Systems Subcommittee Ken Johnson, City of Burbank, Streets & Freeways Subcommittee Nalini Ahuja, Local Programming, Metro
Patricia Chen, Local Programming, Metro
Ed Clifford, Service Coordination, Operations, Metro
Jay Fuhrman, Local Programming, Metro
Jon Grace, Transportation Development & Implementation, Metro Chip Hazen, ADA Compliance, Metro
Lori Huddleston, Transportation Development & Implementation, Metro Ben Jong, Transportation Development & Implementation, Metro Randy Lamm, Transportation Development & Implementation, Metro Robert Machuca, Local Programming, Metro
Al Patashnick, Transportation Development & Implementation, Metro Susan Richan, Local Programming, Metro
James Rojas, Transportation Development & Implementation, Metro Armineh Saint, Local Programming, Metro
Carlos Vendiola, Local Programming, Metro
Thomas Soteros-McNamara (cover)