RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING A FUND TRADE AGREEMENT FOR THE EXCHANGE OF PROPOSITION A FUNDS WITH THE CITY OF DIAMOND BAR WHEREAS, Proposition A (“Prop A”) Funds in the County of Los Angeles are restricted for transit purposes only; and WHEREAS, many cities have had difficulties expending allocated Prop A Funds due to said restricted purposes; however, the City of Commerce has no such trouble due to its unmatched level of transportation service; and WHEREAS, the Los Angeles Metropolitan Transportation Authority (“LACMTA”), which administers such funds, has allowed cities that can expend the restricted Prop A Funds to exchange unrestricted revenues for the right to use another city’s Prop A Funds for approved projects; and WHEREAS, such exchanges usually involve an agreement by a city that can utilize the restricted Prop A Funds to pay the city that has available Prop A Funds a sum that is less than the amount of the Prop A Funds; and WHEREAS, the city that can utilize the restricted Prop A Funds is therefore able to obtain these funds at a discounted rate, while the other city that cannot utilize its Prop A Funds is able to receive unrestricted funds that can be put to use for other purposes; and WHEREAS, the City of Commerce is proposing to provide ongoing operating funding for fixed route, dial-a-ride and recreation services to the residents of the City and certain capital projects that are eligible for Prop A Funds; and WHEREAS, adequate Proposition A Local Return funding for such services is not available to the City of Commerce because of the City’s Local Return allocation; and WHEREAS, the City of Diamond Bar has uncommitted funding authority for its Fiscal Year 2025-26 allocation of Proposition A Local Return Funds that can be made available to the City of Commerce to assist in providing these services; and WHEREAS, the City of Diamond Bar is willing to assign $1,333,333 of its uncommitted FY 2025-26 Proposition A Local Return Funds to the City of Commerce in exchange for the assignment by the City of Commerce of $1,000,000 of its General Fund monies to the City of Diamond Bar.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE, DECLARE, AND DETERMINE AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The Proposition A Fund Trade Agreement between the City of Diamond Bar and the City of Commerce, California, is hereby approved. The Mayor is authorized to execute the Agreement for and on behalf of the City of Commerce. This transaction is contingent upon approval by LACMTA.
Section 3. The City Council authorizes the Mayor to execute this Resolution for and on behalf of the City of Commerce.
Section 4. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED, AND ADOPTED this 12th day of August 2025. _________________________
Ivan Altamirano
Mayor
ATTEST:
__________________________
Lena Shumway
City Clerk
RESOLUTION NO.
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