CITY OF COMMERCESTAFF REPORTCITY OF COMMERCESTAFF REPORT
CITY OF COMMERCE
STAFF REPORT
CITY OF COMMERCE
STAFF REPORT
Item No. Item No.
Item No.
Item No.
TO: The Honorable City Council
FROM: City Manager
SUBJECT: adoption of a resolution of the city council of the city of commerce, california, approving the eastside transit corridor phase 2 proect (“esp2 project”) cooperative agreement with the los angeles county metropolitan transportation authority (“lacmta”) Meeting Date: February 25, 2025
RECOMMENDED ACTION:
Staff is recommending the City Council to adopt a resolution approving the cooperative agreement (“MCA”) by and between the City of Commerce (“City”) and LACMTA related to the ESP2 Project.
BACKGROUND:
The ESP2 Project intends to expand the Metro E Line, a light rail transit line, from its current terminus at Pomona Blvd. and Atlantic Ave.(the “Atlantic Station”) in the unincorporated community of East Los Angeles to the City of Whittier. The approximate 9-mile extension will run through the Gateway Cities subregion of Los Angeles, including through the cities of Commerce, Montebello, Santa Fe Springs, Pico Rivera, Whittier, and unincorporated communities of East Los Angeles and West Whittier-Los Nietos.
Funded in large part by Measure M, the ESP2 Project requires local jurisdictions to pay three percent (3%) of the total project cost of the Measure M rail project (known as the “3% Contribution”). It should be noted that the MCA presented to the City Council for consideration is not intended to address the City’s 3% Contribution nor meant to address any other in-kind contribution at this time. Further discussions and negotiations with LACMTA regarding the City’s financial contributions is expected to take place within the next 18-24 months. Rather, the intent of the MCA is to identify the rights and responsibilities of each of the local participating agencies and LACMTA with respect to the design, construction, operation, and maintenance of the EPS2 Project. The MCA also addresses the allocation of costs and the procedures for the City to be reimbursed for conducting design reviews and construction support services.
Construction for the initial phase of the ESP2 Project is scheduled to begin in 2029. Once fully completed, the project will increase mobility operations for the local participating cities.
The Metro Board of Directors approved staff’s request to negotiate and execute the remaining cooperative agreements with corridor cities on January 23, 2025.
ENVIRONMENTAL ASSESSMENT:
LACMTA is the lead agency for the ESP2 Project. On May 23, 2024, LACMTA’s Board of Directors approved the certification of the Final Environmental Impact Report (EIR) for the EPS2 Project in accordance with the California Environmental Quality Act (CEQA). The City of Commerce along with the other Gateway Cities submitted a letter of support for the project and the Final EIR, which was read into the record at the May 23, 2024 hearing. The LACMTA Board’s approval finalizes the EIR for the two-phased project. A copy of the EIR, along with other planning and environmental records can be located on LACMTA’s website: https://boardagendas.metro.net/board-report/2024-0190/ In February 2022, the LACMTA Board directed its staff to reinitiate the National Environmental Policy Act (NEPA) process for federal environmental clearance which will enable LACMTA to seek federal funding opportunities for the project.
FISCAL IMPACT:
None at the present time. Measure M guidelines reflect provisions adopted by the LACMTA Board (including Motion 14.2 (1026-0451) passed on May 26, 2016) that allow for local jurisdictions, through an agreement with LACMTA, to meet all or portion of their 3% Contribution obligation through first/last mile investments (known as the 3% Local Funding Contribution Credit”). This MCA does not address, and is not intended to address, any terms and conditions with respect to any 3% Contribution for the ESP2 Project by the City nor any 3% Local Funding Contribution Credit for first/last mile investments. Any terms related to the City’s 3% Contribution, 3% Local Funding Contribution Credit, or any other in-kind contributions, will be discussed, negotiated, and agreed by LACMTA and the City under a separate agreement.
CONCLUSION:
Staff recommends the City Council approve a resolution approving the MCA by and between the City and LACMTA related to the ESP2 Project, authorize the City Manager to execute the MCA on the City’s behalf and take any additional steps reasonably necessary to finalize the MCA in a form approved by the City Attorney.
Recommended/Prepared By: Vilko Domic, Assistant City Manager Approved as to Form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
ATTACHMENTS:
Resolution
LACMTA cover letter and Execution Version of the Cooperative Agreement for Design and Construction of the Eastside Transit Corridor Phase 2 Project