January 7, 1999 PD-5

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

Dear Supervisors:

MUNICIPAL AREA EXPRESS COMMUTER TRANSPORTATION SERVICE
PROPOSITION A LOCAL RETURN TRANSPORTATION PROGRAM
SUPERVISORIAL DISTRICT 4
3 VOTES

IT IS RECOMMENDED THAT YOUR BOARD:

1. Find that the operation of the Municipal Area Express is exempt from the provisions of the California Environmental Quality Act.

2. Approve the County's share of funding for a capital reserve account for bus replacement for the Municipal Area Express service from Fiscal Year 1998-99 through Fiscal Year 2001-02.

3. Approve the continuation of the Municipal Area Express commuter transportation service for the residents of the South Bay area as part of the County's Proposition A Local Return Transportation Program from July 1, 1999 through June 30, 2002.

4. Authorize the Director of Public Works to negotiate a new or amend the existing agreement between the County and the cities in the South Bay area, which will participate in the Municipal Area Express, to extend the County participation for three more years through Fiscal Year 2001-02.

5. Approve and instruct the Chairman to sign upon receiving the completed agreement or amendment previously approved by County Counsel.

The Honorable Board of Supervisors
January 7, 1999
Page 2

PURPOSE OF RECOMMENDED ACTION

The purpose of this action is to approve the County's annual contribution to the capital reserve account for bus replacement commencing in Fiscal Year (FY) 1998-99 and the continuation of the County participation in the Municipal Area Express (MAX) service from July 1, 1999 through June 30, 2002.

JUSTIFICATION

On December 12, 1989, and in subsequent fiscal years, your Board approved allocation of Proposition A Local Return funds to provide the residents of the South Bay with a direct commuter transportation service to the El Segundo Employment Center. This service began on April 18, 1990 and was developed in cooperation with the South Bay Cities to reduce the peak hour traffic congestion in the South Bay. This action continues the County's participation in providing this transportation service through FY 2001-02. The capital reserve account was created by the MAX to finance the 20 percent local match for replacement of the fleet of 14 MAX buses.

FISCAL IMPACT

The estimated cost of the County's share of the capital reserve account for FY 1998-99 is $8,000. The anticipated annual cost of the County's share of the service, including the capital reserve account for bus replacement, for FY 1999-2000 through FY 2001-02 is estimated to be $21,000. The total estimated cost to be approved by this Board action through FY 2001-02 is $71,000.

FINANCING

This service will be financed from the Fourth District's allocation of Proposition A Local Return funds available in the Transit Operations Enterprise Fund administered by the Department of Public Works for FY 1998-99 through FY 2001-02.

The Honorable Board of Supervisors
January 7, 1999
Page 3

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

The Los Angeles County Metropolitan Transportation Authority has approved this project as eligible for Proposition A Local Return funding. The amendment or agreement will be approved as to form by County Counsel prior to submittal to the Chairman for signature.

CONTRACTING PROCESS

The City of Torrance, the lead agency for the program, will continue to implement and administer the service. The MAX contracts for service through a competitive process which dictates the annual cost of the service. The participants' share of the cost of the service is based on their percent of the total project.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

There will be no impact on current services or projects resulting from these actions.

NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORTS

This service is categorically exempt pursuant to the Class I category provided under Section 15301 of the California Environmental Quality Act Guidelines and Appendix G of the County's Environmental Document Reporting Procedures and Guidelines.

The Honorable Board of Supervisors
January 7, 1999
Page 4

CONCLUSION

Upon approval, please return two approved copies of this letter to the Department of Public Works.

Respectfully submitted,

HARRY W. STONE
Director of Public Works

AM:al
C981153
A:\MAX99.WPD

cc: Chief Administrative Officer

County Counsel