TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce, California, Approving Memorandum of Understanding with the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the Los Angeles County Regional Zero Emissions Transit Capital Program (ZETCP) Funds MEETING DATE: December 10, 2024
RECOMMENDATION:
Adopt the Resolution approving the Memorandum of Understanding MOU # MOUZET25COM1000 for the Los Angeles County Regional Zero Emissions Transit Capital Program (ZETCP) Funds.
ANALYSIS:
On September 26, 2024, the Los Angeles County Metropolitan Transportation Authority (LACMTA) Board adopted the Los Angeles County Regional Zero Emission Bus Procurement Policy. Senate Bill (SB) 125 Zero Emission Transit Capital Program will allocate $320.6 million to LACMTA, the county’s regional transportation planning agency, over four years beginning in 2024.
The LACMTA Board approved advancing the total four-year allocation of $49.84 million in Proposition C, 40% Discretionary ZETCP funds for eligible transit operators. The ZETCP funds allow agencies to use the approved funds to fund transit operating and/or capital improvement projects.
The City shall utilize the ZETCP funds per the guidelines adopted by LACMTA on September 26, 2024. LACMTA is the agency responsible for administering these funds, and the City's share of the program funding starting FY 2024 is $164,790. This MOU is in effect from October 1, 2024, through June 30, 2028.
ZETCP funds may be used for operations only after the operator has drawn down fully on Federal COVID relief funding, including American Rescue Plan Act (ARPA) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act funding.
ALTERNATIVES:
Approve the attached Resolution approving the Memorandum of Understanding or Provide staff with further direction.
FISCAL IMPACT:
This activity can be carried out without impacting the current operating budget.
RELATIONSHIP TO STRATEGIC GOALS:
This agenda item report relates to the City’s strategic planning goal: "Grow revenues to ensure all expenses are being met so that we can remain fiscally responsible and continue to provide services to the residents." These subsidies will assist in mitigating transportation's operating and capital costs for the City.
Prepared and recommended by: Claude McFerguson, Director of Transportation Fiscal impact reviewed by: Vilko Domic, Assistant City Manager Approved as to form by: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
Attachments: Resolution
MOU – Proposition C 40% Discretionary ZETCP Funds
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CITY OF COMMERCE
AGENDA REPORT
Item No.