PURPOSE:

The Media District Intelligent Transportation System (ITS) project is being constructed to provide advanced traffic monitoring and control systems for emergency traffic management and recurring traffic congestion on major travel routes and at freeway interchanges in the Media District.  On December 9, 2003, the City Council authorized staff to execute a contract to construct the project utilizing a combination of grant and local match funding, totaling $2,045,000.  This report requests authorization to substitute $210,000 of Proposition C funds for the originally identified $210,000 Development Impact Fee portion of the local match requirement.  The use of Proposition C funding is being recommended in order to meet a Metropolitan Transportation Authority (MTA) expenditure deadline for this fiscal year.   

BACKGROUND AND ANALYSIS:

The Media District ITS project involves the installation of various data collection and traveler information systems to better control traffic signals and manage incidents within the southwest portion of the city.  The project�s $2,045,000 cost is currently funded by a combination of $1,647,000 in grant funds programmed through a MTA application, and $398,000 in local Development Impact funds for the required 20% local match.  Staff proposes to substitute $210,000 of the Impacts Fee funds with Proposition C funds, leaving a total Development Impact Fee contribution of $188,000. 

The MTA is responsible for allocating Proposition A and C funds to local agencies, and for insuring that the funds are spent in accordance with adopted guidelines.  In addition to reviewing proposed project expenditures, the MTA monitors usage to ensure that funds are utilized within a 3-year period of receipt by the local agency.  The MTA recently advised the City that $210,000 of Proposition C funds needed to be expended prior to the end of the 03-04 fiscal year to prevent a possible funding lapse.  The MTA has approved the use of Proposition C funds for this project, and has assured staff that this proposed substitution of funding would address the expenditure deadline. 

CONCLUSION:

The proposed substitution of Proposition C funds for local Development Impact Fee funds will ensure that the City conforms to the MTA�s Proposition C expenditure guidelines, and will allow the City to retain the Development Impact Fee revenues to use for local roadway improvements.  Staff recommends that the City Council appropriate $210,000 of Proposition C money from the un-appropriated fund, and that the $210,000 in Development Impact Fee revenues previously allocated be returned to the unallocated fund balance.  This will leave $188,000 in Development Impact funds and $210,000 in Proposition C revenues to fund the required $398,000 local match for this project.   

FISCAL IMPACT:

There is no fiscal impact associated with the funding substitution recommended in this report.  Both funds are administered by the Community Development Department, Transportation Division.  The account that the Prop C funds would be appropriated to is 105.CD33A.70002.0000.12705.  

RECOMMENDATION:

Authorize staff to substitute $210,000 in Proposition C money for Development Impact Fee money for the Media District ITS project. 

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