TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: November 12, 2025
SUBJECT: APPROVAL OF AMENDMENT NO. 3 TO TRANSPORTATION
REIMBURSEMENT AGREEMENT WITH SAN MARINO
UNIFIED SCHOOL DISTRICT
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
The Proposition A Local Return (LR) Program is funded by a 1/2 cent sales tax measure approved by Los Angeles County voters to finance a Transit Development Program. The Proposition A tax measure was approved in 1980 and collection of the taxes began on July 1, 1982. Twenty-five percent of the Proposition A tax is designated for the LR Program funds to be used by cities and the County in developing and/or improving public transit, paratransit, and the related transportation infrastructure.
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.
The San Marino Unified School District (District) provides recreational transportation services to and from San Marino High School and special events and destinations, including competitions, tournaments, concerts, parks, venues, athletic events and activities, and visual and performing arts event and activities. During FY 2024-25, the city provided $150,000 in Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
reimbursement to the District for these recreational transportation services as allowed by Proposition A guidelines.
Auditors for the Los Angeles County Metropolitan Transit Authority’s LR funds requested that a reimbursement agreement between the City and the District be in place as a recommendation during their FY 2024-25 audit.
Notably, an agreement for FY 2025-26 is not needed as these funds are no longer available in the City’s budget to be provided to the District.
DISCUSSION
Staff recommends the City Council approve this amendment with the District through June 30, 2025. Under this agreement, the following provisions are documented in writing which had been previously been agreed upon through informal discussions.
1. Obligations of the District
2. Reimbursement obligations of the City
3. Term of the agreement as well as termination provisions
4. Method of reimbursement
5. Indemnification clauses
6. Insurance requirements which are consistent with City limits
FISCAL IMPACT & PROCUREMENT REVIEW
Procurement review is not applicable for this agreement. The total annual cost to the City was $150,000 for FY 2024-25 which was budgeted in the annual budget in account 207-11-4208-8140 (Bus Transportation-SMUSD Youth).
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council authorize the City Manager to execute an amendment to the original transportation reimbursement agreement with the District for the fiscal year ending June 30, 2025, for transportation reimbursements under the terms described in the attached agreements. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to authorize the City Manager to execute an amendment to the original transportation reimbursement agreement with the San Marino Unified School District for transportation reimbursements for the year ended June 30, 2025.”
ATTACHMENTS
1.Transportation Reimbursement Agreement
2. Transportation Reimbursement Agreement Amendment #3