Introduction to the Los Angeles County Metropolitan Transportation Authority ______Introduction “On and after April 1, 1993, any reference This document captures the roles in this part, or in any other provision of responsibilities of the Los Angeles County law or regulation, to the Southern Metropolitan Transportation Authority California Rapid Transit District or to the (LACMTA) to plan, construct, and operate Los Angeles County Transportation a regional multimodal transportation Commission in general shall be deemed system, to set policy, and to administer to refer to the Los Angeles County regional transportation programs per its Metropolitan Transportation Authority.” enabling legislation under the State of California’s Public Utilities Code. These The powers and authorities granted to the responsibilities include those carried over first public transit agency, the LAMTA from the three prior transportation (1951-1964) were entirely replaced with agencies formed by the state for Los those granted to the SCRTD, effective Angeles County. November 5, 1964. The changeover of assets, routes and employees from To gain a better understanding of how the LAMTA to SCRTD was also referred to as roles and responsibilities of the LACMTA a merger. are put into action throughout the region, the Long Range Plan, Short Range Plan, First Publicly Governed Transit Funding Sources Matrix and Annual Agency Budget documents provide excellent Public ownership of transportation in Los insight and detail. Angeles began later than it did in other cities of similar size and importance. The LACMTA was created by AB152 Privately operated public transportation (Katz), the Los Angeles County got its start in 1871 when the City of Los Metropolitan Transportation Authority Angeles granted operational franchises for Reform act of 1992. Signed into law by horse drawn streetcar railways, which later Governor Pete Wilson on May 19, 1992, became cablecar railways, then electric the merger of the Southern California railways, trolley bus lines, and motorbus Rapid Transit District (1964-1993) and the lines. There was even an early subway Los Angeles County Transportation line that operated from 1925-1955. Over Commission (1976-1993) became effective the years approximately 220 privately on February 1, 1993 with both prior owned and operated companies have come agencies being dissolved effective April 1, and gone. They were loosely governed by 1993. the Railroad Commission, which later became the Public Utilities Commission. Although the legislation modified the Up until the formation of the first local sections of the Public Utilities Code public transit agency, there was little local relevant to the Transportation control or coordination of the patchwork Commission and left the Transit District system, which had been largely converted law untouched, the powers and authorities over to a bus system. granted to both the SCRTD and LACTC in their original legislation remain in effect The Los Angeles Chamber of Commerce, for the LACMTA. believing that an integrated public transportation system was essential to the PUC 130051.14 economic health of the metropolitan area, 1

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______worked with the California state legislature to form the Los Angeles Prior to the creation of a public agency to Metropolitan Transit Authority (LAMTA) operate transit services in Los Angeles, the in 1951. It was empowered to formulate California Public Utilities Commission plans and policy for a publicly would have to approve all fare and routes owned/operated mass rapid transit system modifications, line by line. The new in Los Angeles that would replace the LAMTA now had the power to approve crumbling infrastructure of privately those changes at the local level. owned and operated systems. The enabling legislation mandated that the During its tenure, the LAMTA presented Governor appoint the LAMTA’s seven three major mass rapid transit system member Board of Directors in proposals for Los Angeles County, consultation with local officials. including the now infamous proposed monorail plans. The LAMTA’s final plan In 1957, the legislature gave the LAMTA was knows as the “Backbone Route”, the authority to purchase and operate elevated rail from El Monte to Downtown existing privately owned bus lines with and then subway from Downtown to capital provided by the sale of revenue Century City along Wilshire Boulevard. bonds. Effective March 3, 1958, they The agency even held a groundbreaking acquired the Los Angeles Transit Lines ceremony in 1962 with the media and (successor to Los Angeles Railway and Los Governor Pat Brown in attendance touting Angeles Motor Bus companies) the project as vitally important. Metropolitan Coach Lines (successor to Unfortunately, without adequate powers Pacific Electric Railway and other of its own and without state and federal independent bus companies) and Asbury funding partners (they hadn’t been Rapid Transit System to create the first formed yet), the Backbone Route project publicly run transit system in Los Angeles. went nowhere.

LAMTA Act of 1957 In 1964, the state legislature recognized “It is hereby declared to be the policy of that they had granted limited authority to the State of California to develop mass the LAMTA to solve the transit problems rapid transit systems in the various of the Southern California area, and that metropolitan areas within the State for the as the LAMTA was currently constituted, it benefit of the people. A necessity exists would be unable to deliver the needed within Los Angeles County for such a comprehensive mass rapid transit system. system. Because of the numerous It did not have the power to levy taxes for separate municipal corporations and any purpose whatsoever, its board did not unincorporated populated areas in the wield sufficient political influence to build metropolitan area, only a specially created broad public support, and it did not have authority can operate effectively. Because the right to acquire real property by of the unique problem presented in Los eminent domain. While it could issue Angeles County and the facts and revenue bonds, it did not have sufficient circumstances related to the establishment revenue sources to implement a large- of a mass rapid transit system therein, the scale system with broad local support. adoption of a special act and the creation of a special authority is required.” 2

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Local Control and Additional and Western Greyhound Lines. Serious Authority consideration was even given to the The Southern California Rapid Transit possible annexation of both Orange and District (SCRTD) was formed in 1964 as San Diego county transit districts via voter the LAMTA’s successor corporation, a referendums (PUC 40600 and 93000). transit district, governed by an 11 member board that included representatives from PUC 30001 the City of Los Angeles, the County of Los “The Legislature hereby finds and declares Angeles and the county’s other that: There is an imperative need for a municipalities chosen by the city selection comprehensive mass rapid transit system committee. in the Southern California area, a particularly in Los Angeles County. Its newly constituted Board was formally Diminution of congestion on the streets introduced to the community-at-large via a and highways in Los Angeles will facilitate special transportation day program passage of all Californians motoring sponsored by the Los Angeles Chamber of through the most populous area of this Commerce at the Ambassador Hotel’s state and will especially benefit Cocoanut Grove with more than 600 civic, domicilaries of that county who reside business and government leaders in both within and without the rapid transit attendance. district. It is, further, declared the policy of the state to foster the movement of The new SCRTD could acquire property people in and around the Los Angeles area by eminent domain, levy taxes with voter for the benefit of the entire state, and one approval, issue bonds and create Benefit of the purposes of the Southern California Assessment Districts to support its Rapid Transit District is to further this mandate. The legislature believed this policy.” would provide sufficient power and authority to solve the region’s PUC 30256 transportation problems and provide the “The Board (of the SCRTD) shall needed comprehensive mass rapid transit determine what transit facilities should be system. Its jurisdiction included all of Los acquired, constructed, developed, jointly Angeles County as well as operation of developed, leased or disposed of, by mean transit service in Orange, Riverside, and including, but not limited to, lease, sale, San Bernardino counties, until 1973 when purchase, option, gift, devise, each county formed its own transportation condemnation, grant, or otherwise.” agency. The SCRTD took its mandate to build a SCRTD acquired the assets, transportation fixed guideway system very seriously but services and employees of the LAMTA, ran into difficulties in forging regional and quickly expanded its reach through consensus even as additional revenue the acquisition of Pasadena City Lines, sources were becoming available from the Inglewood City Lines, Blue and White Bus Urban Mass Transit Administration Company, Easter Cities Transit, San Pedro (UMTA) now called the Federal Transit Transit Lines, Highland Transit, Ontario- Administration (FTA), SB325 Local Upland Bus Lines, La Rambla Bus Lines, Transportation Funds and Proposition 5. Pomona Valley Municipal Transit System The defeat of a 1968 ballot proposition to 3

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______levy a half-cent sales tax to support the and federal levels. The composition of the construction of a 62-mile rail rapid transit SCRTD Board, which only included two system was a major setback for the agency. representatives from the City of Los Angeles, lessened its ability to respond to Anxious to show progress in relieving the complexity of the region. And finally, congestion, SCRTD and the SCAG began there was a lack of structured ongoing looking at alternatives to move the concept participation by citizens at the regional, of mass transit forward within available corridor, and neighborhood levels. This funding and meet new and stringent EPA led the State to seek creative alternatives air quality standards. Construction began for region’s transportation issues. on the El Monte HOV facility began in 1972 and opened to traffic in 1973. In spite of major hurdles in its way, the Innovative at the time, it is still considered SCRTD obtained a Federal Full Funding one of the most successful facilities of its Grant Agreement and finally broke kind in the U.S. ground on the construction of the Metro Rail subway in 1986, delivering a long Over the years there were persistent envisioned beginning to a new mass institutional battles among various entities transit system for Los Angeles. at odds over the proposals for a large-scale mass rapid transit system. In response, Need for Improved, Innovative the SCRTD formed the Rapid Transit Policy and Decision-making Advisory Committee (RTAC) in March 1975 with representatives from Institutions CALTRANS, SCAG, Los Angeles County, In 1976 the state legislature enacted Orange County Transit District, the AB1246, the County Transportation League of California Cities and the City of Commissions Act, by Assemblyman Los Angeles. It began formulating a new Walter Ingalls. It formed transportation approach and building consensus for a commissions initially in Los Angeles, “starter” line subway project. Orange, Riverside and San Bernardino counties. Over the years, additional A comprehensive study of the urban counties throughout the state have also transportation planning and funding formed transportation commissions. issues in Los Angeles was performed by the United States Congress, Senate The Board of the Los Angeles County Committee on Appropriations, Office of Transportation Commission (LACTC) was Technology Assessment, and published in comprised of the Mayor of the City of Los February, 1976. Assessment of Angeles, the five Los Angeles County Community Planning for Mass Transit: Supervisors, the Mayor of Long Beach, two Volume 6 – Los Angeles Case Study. In city council members from other cities in its conclusion, the report cited three main Los Angeles County and one additional issues to be addressed locally. The forum appointee of the Mayor of Los Angeles. for decision-making on regional Mayor Bradley routinely appointed the transportation issues was not well City Council President to the integrated; there was no authoritative Commission, first John Ferraro and then procedure for resolving conflicts between Pat Russell. decision makers at local, regional, state 4

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______The LACTC was charged with efficient 65080) of Title 7 of the Government oversight of public transit, coordination Code.” between transit providers, and highway policy. The law required LACTC to approve all plans and funding with respect to transit PUC 130056 capital development, transit operations “The commissions shall rely to the and highway capital development. maximum extent possible on existing LACTC's authority over highways was state, regional, and local transportation ultimately subject to approval by the planning and programming data and California state transportation expertise, rather than on a large commission. The authority of LACTC was duplicative commission staff and set of similar to that of the New York plans. The Legislature envisions the Metropolitan Transit Authority and development of a small, but very capable, Chicago’s Regional Transportation core staff able to provide the commissions Authority. with an objective analysis of the various options relative to plans and proposed The LACTC was successful in achieving projects of the regional and local two countywide voter approved half cent transportation agencies and operators, and sales tax increases, Proposition A in 1980 then translate those options into a short- and Proposition C in 1990, to support range transportation improvement regional transportation improvements, program to be developed and approved including a countywide rail transit pursuant to subdivision (b) of Section program. 130303 in accordance with decisions made by the commissions.” PUC 130001 “(a) Public demand for an efficient public PUC 130250 transportation system in the southern “The commission shall coordinate the California region resulting from operation of all transportation services population sprawl, the concentration of within the county so as to achieve efficient many transit dependent citizens in the operation thereof and shall resolve all large urban areas, and increasing mobility jurisdictional disputes between public requirements indicates a need for transit operators” improved, as well as more innovative, policy and decision-making institutions to PUC 130252 resolve these problems. “All plans proposed for the design, (b) A basic purpose of transportation construction, and implementation of policy within the region should be to avoid public mass transit systems or projects, undesirable duplication of transportation including exclusive public mass transit services, achieve the operation of a guideway systems or projects, and federal- coordinated and integrated transportation aid and state highway projects, shall be system which will reduce automobile submitted to the commission for approval. usage and dependency, reduce the No such plan shall be approved unless it consumption of scarce and expensive conforms to the appropriate adopted energy fuels, and reduce the levels of regional transportation plan pursuant to automobile-related air pollution. Chapter 2.5 (commencing with Section 5

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______(c) Recognizing the scarcity of resources diverse socioeconomic levels and travel available for all transportation patterns, and a majority of the trips in the development, the commissions shall give county are four miles or less.” priority to low-cost highway and transit improvements, and shall work toward These policy statements continue on, as maximizing the effectiveness of existing do those cited earlier in the SCRTD’s resources available to the commissions. enabling legislation, as guiding principles (d) Recognizing the importance of the for the LACMTA. state highway system in the Los Angeles metropolitan area to bus, automobile, and There was a great deal of tension that freight transportation, it is necessary to developed between the SCRTD and the maintain this highway system at least at LACTC. Part of the explanation may be its present operating standards and to that LACTC was successful in obtaining increase the person-moving capability of voter approval for its two ballot initiatives, this system by such methods as 1980 and 1990 to fund transportation carpooling, improved traffic operations, programs, whereas three transportation exclusive busways, and fringe parking ballot initiatives sponsored by the SCRTD facilities. were rejected by the voters in 1968, 1974 (e) The transportation system should offer and 1976. Issues between the two adequate public transportation to all agencies came to a head in 1988 with an citizens, including those immobilized by “Eight-Point Plan” adopted by both poverty, age, physical handicaps, or other boards. Among the elements of the plan reasons. were provisions for LACTC to release $140 (f) The cities and local communities acting million in funding for SCRTD operations singly or jointly should be given more if SCRTD agreed to move responsibility responsibilities for designing and for the Metro Rail subway construction providing project to LACTC’s newly formed Rail local transit services to improve the Construction Corporation, and also drop responsiveness of public transit to public opposition to the formation of the Foothill needs. Transit zone, which was carved out of (g) The transportation decision-making SCRTD’s service area in the San Gabriel process should be responsive to public Valley. The same plan is the origin of the values, and provide for the continuing names Metro Red Line and Metro Blue involvement of the public in the Line, and also the beginning of open preparation, revision, and discussion of discussions about a possible future transportation plans and services. merger of the agencies The atmosphere of (h) Transportation planning should rivalry, instead of partnership needed to be recognize that transportation systems have addressed. significant effect on the physical and socioeconomic characteristics of the areas Transportation Agency Merger served, and emphasis should be given to Citing overlapping administrative the protection and enhancement of the functions and achievable cost savings that environment and the restoration of could be redirected toward additional blighted neighborhoods near community transportation improvements for the centers. Los Angeles County, in region, the legislature passed AB152 particular, is a multi-centered area with (Katz) merging the Los Angeles County’s 6

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______largest transportation operator with the  Highway construction funding and primary planning, funding and traffic flow management. construction agency.  Research and development of alternative energy sources for transit PUC 130050.2. vehicles. “There is hereby created the Los Angeles  Air quality, environmental impact, County Metropolitan Transportation land use, and economic development Authority. The authority shall be the decisions. single successor agency to the Southern  Promotion of the use of public transit California Rapid Transit District and the services and rideshare programs. Los Angeles County Transportation Commission as provided by the act that Besides operating 2,400 coaches in the enacted this section.” Metro Bus fleet, and 255 rail cars, LACMTA also designed, built and now The Los Angeles County Metropolitan operates 70 miles of Metro Rail service. Transportation Authority is unique among The Metro Rail system currently consists the nation’s transportation agencies. It of 66 stations. Several more systems are serves as transportation planner and in the planning and/or design stage. coordinator, designer, builder and operator for one of the country’s largest, In addition to operating its own services, most populous counties. More than 9.9 LACMTA funds 16 municipal bus million people, nearly one-third of operators and funds a wide array of California’s residents, live, work, and play transportation projects including bikeways within its 1,433-square-mile service area. and pedestrian facilities, local road and highway improvements such as carpool It operates the second largest bus system lanes, goods movement, and the Freeway in the United States. There are an average Service Patrol and Call Boxes. of 1.1 million bus boardings daily at 18,500 stops on 183 routes, which include Recognizing that no one form of transit a dedicated busway, two freeway bus can solve urban congestion problems transitways and the largest Bus Rapid alone, LACMTA’s multimodal approach Transit system in the nation. It also uses a variety of transportation alternatives operates four light rail lines and one heavy to meet the needs of the highly diverse rail line, with a combined total of over population in the region. First adopted in 250,000 boardings daily. 1991, the "M" logo of the Metro System is the widely recognized public symbol of Included among LACMTA’s primary this fully coordinated network. responsibilities to Los Angeles are the following: LACMTA employs approximately 10,000  Administration of funds for all Los people full time and part time in a broad Angeles County transit providers. range of technical specialties and services  Development and construction of ranging from Metro Bus and Metro Rail Rapid Bus lines and fixed guideways operators and mechanics to construction for buses and multi-passenger engineers and safety inspectors, from vehicles. transportation planning professionals to  Rail construction. customer information agents. 7

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______the LACMTA. It was last adopted in Authority, Structure, Powers and August 2003.

Responsibilities of the LACMTA Affirmative Action – PUC 130051.19 The LACMTA adopts an affirmative action Listed below in alphabetical order are the plan for its management positions, which responsibilities called out in the various reflects the ethnic demographics of the sections of the Public Utilities Code as county and takes into consideration the they relate to the LACMTA. The major availability of the workforce in the various enabling legislation policy statements of ethnic groups. Federal Transit Authority the SCRTD, LACTC and LACMTA are (FTA) Circular C4704.1 requires included above and not repeated here. submission of an updated Equal Because AB152 specifically stated that all Employment Opportunity/Affirmative occurrences of “District” and Action Program every three years. “Commission” shall be considered to refer to the LACMTA, all three terms are used Annexation – PUC 31400-31413 interchangeably. The governing body of any city or county not within the current territory of the Acts of the Board – PUC 30270-30275 LACMTA may apply to the Board of The affirmative vote of a majority of board Directors for consent to annex into the members, except as otherwise noted, is LACMTA’s service area. The Board may sufficient to carry a motion, order, grant or deny such application by resolution or ordinance. Ordinances are resolution and fix terms and conditions not adopted on the day of, or within five for the annexation of such corporate or days of, its introduction, and ordinances unincorporated area(s). The governing do not take effect until thirty days after its body must then submit a proposition to adoption. There are some exceptions; the qualified voters of such city or territory ordinances related to an election, issuance to approve the annexation. or sale of bonds, levying or collection of taxes or fixing of fares, or necessary for the Annual Audit – PUC 30259, 30260 & immediate preservation or protection of 130105(c) property, interests or welfare of the An annual audit make of all books and LACMTA itself might be adopted as taking accounts of the LACMTA by an effect immediately. The enacting clause of independent certified public accountant is all ordinances begins with “Be it ordained required. Copies of the report must be by the Board of Directors….”. Ordinances supplied to the public upon request. are published within 15 days of passage in a newspaper of general circulation. Appointment of a CEO, General Counsel, Board Secretary, Inspector General, and Administrative Code – PUC 130105 Ethics Officer. – PUC 130051.9, 130051.28 The board adopts an administrative code and 130610 by ordinance, which proscribes the powers The LACMTA Board appoints a full time and duties of its officers, appointment of CEO to direct the authority and perform employees, methods, systems, procedures, those duties delegated by the Board. The systems of operation and management of CEO serves an initial four-year term of office and is only removed by either a two- 8

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______thirds vote of the board or by violation of Bonds – PUC 30900-30913 any federal or state law, regulation, local These sections authorize, by two-thirds ordinance, or policy or practice of the vote of the Board, ordinances that call an authority, including those relative to election for the purpose of submitting ethical practices, including the acceptance propositions for bonded indebtedness of gifts or contributions. directly to the voters. LACMTA issues revenue bonds, not general obligation The chief executive officer approves and bonds which require the election that this awards all contracts for construction when section refers to. they are based upon the lowest responsible and responsive bid submitted. Brown Act – PUC 30270 All meetings of the board of directors are The Board also appoints a General conducted pursuant to the Ralph M. Counsel, Board Secretary, Inspector Brown Act, Chapter 9 (commencing with General and Ethics Officer. Section 54950) of Part 1, Division 2, Title 5 of the Government Code. Benefits Assessment Districts 33000- 33020 and 99000-99026 Budget – PUC 130105 and 130106 Sections 33000-33020 specifically The LACMTA adopts an annual budget authorize the levy of special benefit and fixes the compensation of its officers assessments for public rail rapid transit and employees. Public notice for a facilities and services. This section hearing on the adoption of the annual provides a detailed description of the budget must be published at least 15 days process by which the LACMTA may create in advance. Copies of the proposed benefit assessment districts. In short, budget must also be available for public whenever the Board finds that property inspection at least 15 days prior to the adjacent or near rail transit stations will hearing. receive special benefit by reason of the location of one or more of those rail transit Budgetary Control - PUC 30507 and stations, it may, by resolution adopted by Government Code 29000 two-thirds vote, provide notice and hearing “Prior to the time the district incurs any of its intent to establish benefit bonded indebtedness, the district shall assessment districts to raise revenues via a insofar as possible follow the budgetary special assessment tax. Bonds issued control procedures for counties, pursuant pursuant to this chapter may bear interest to Articles 1 to 8, inclusive (commencing not to exceed 12% per annum. Section with Section 29000), Chapter 1, Division 3, 99000-99026 expands the benefits Title 3 of the Government Code. assessment districts concept to any transit Transfers of funds within, or revisions of, district in the State and provides some a budget adopted by the district, whether additional guidance on holding elections before or after the incurring of any bonded and bonds. Bond issued under this indebtedness, may be made by appropriate section are not to exceed paying 6% per act of the board at a regular, adjourned annum. regular or special meeting. After the district incurs any bonded indebtedness the district shall establish suitable budgetary procedures and thereafter 9

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______copies of each proposed annual budget areas of the county. The CAC is supported shall be available to interested persons a by staff to aid it in its work per the reasonable time before the adoption provisions of this section of the PUC. thereof and copies of the final budget shall likewise be available to interested persons. Code of Conduct – PUC 130600-130730 Copies of any special budgets shall be There are specific provisions for conduct furnished to interested parties on at board meetings, the dissemination of request.” investigative reports authored by the Inspector General, distribution of written The Government Code section referred to motions, acceptance of gifts, treatment of above proscribes the presentation of data employees, procurement, contract awards, and information that is to be minimally filing of statements of economic interest presented in an annual budget. Basically: and charitable contributions. The fund balances, reserved and unreserved; Inspector General is required to External funding sources; financing uses investigate and enforce these provisions. for each budget unit by funds; amounts The board determines sanctions for proposed to be provided as appropriations violations based on the severity of the for contingencies; amounts to be provided infraction. as provisions for reserves; schedule by budget unit of each position classification Collective Bargaining – PUC 30750-30756 including salary rate or range, number of and 130051.11 positions currently approved, number This section describes in detail the requested and number finally approved by responsibilities of the agency with respect the Board. Proposed and final budgets to collective bargaining, including those shall equal available financing. created when acquiring or disposing of transit systems or parts thereof. It Call for Projects – See Short Range requires that the LACMTA first make Transportation Improvement Program adequate provision for employees who are or may be displaced or whose wages, Charter Service – PUC 30630.5a-30630.5e hours, place or conditions of employment Charter bus service may be provided are or may be adversely affected. It also subject to various limitations. See PUC recognizes that “employees shall have the sections for complete information. right to self-organization, to form, join, or Charter service is also subject to Federal assist labor organizations, to bargain Transportation Administration rules for collectively through representatives of public transit agencies, which are their own choosing, and to engage in other intended to prevent competition between concerted activities for the purpose of private and public carriers for charter collective bargaining or other mutual aid services. or protection.” AB152 also contained language affirming that the obligations of Citizens Advisory Council – PUC the SCRTD with respect to collective 130051.11 and 130105. bargaining are also the exclusive The LACMTA provides for a Citizens obligations of the LACMTA. Advisory Counsel (CAC) with membership that reflects a broad spectrum of interests and geographic 10

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Composition of the Board – PUC 130051 There are a number of additional The Los Angeles County Metropolitan provisions and definitions contained in Transportation Authority consists of 14 PUC 87100 through 87105. members, as follows: Five members of the Los Angeles County Construction – PUC 150051.11 Board of Supervisors, the Mayor of the The LACMTA is mandated to have a City of Los Angeles, two public members transit construction organizational unit to and one member of the City Council of assume the construction responsibilities the City of Los Angeles appointed by the for all exclusive public mass transit Mayor of the City of Los Angeles, and four guideway construction projects in Los members, each of whom shall be a mayor Angeles County. See also Operations, and or a member of a city council, appointed Planning and Programming. by the Los Angeles County City Selection Committee. Contracting – PUC 30530, 30531, & 30532 The LACMTA may make contracts and For purposes of the selection of these four enter into stipulations of any nature, may members, the County of Los Angeles, contract with any department or agency of excluding the City of Los Angeles, shall be the Federal or State government, or any divided into the following four sectors: public or private corporation, association, (1) The North County/San Fernando organization or other entity with any Valley sector. terms or conditions that the Board finds in (2) The Southwest Corridor sector. the best interests of the organization. See (3) The San Gabriel Valley sector. also: Change Order Procedure, (4) The Southeast Long Beach sector. Competitive Bidding, Competitive The members selected by the city selection Negotiation for Specialized Equipment, committee shall serve four-year terms with Construction Contracts, Design/Build for no limitation on the number of terms that Systems and Facilities, Emergency may be served by any individual. The city Expenditures, Immediate Remedial selection committee may shorten the Measures, Open Market Purchases, Pre- initial four-year term for one or more of Qualification, Prototype Equipment, and the members for the purpose of ensuring Single Source Exceptions. that the members will serve staggered terms. Contracting, Change Order Procedure – PUC 130243 The Governor appoints one nonvoting The Los Angeles County Metropolitan member. Transportation Authority shall adopt a change order procedure for contracts Conflict of Interest – PUC 87100 awarded by the authority that includes “No public official at any level of state or each of the following requirements: local government shall make, participate (a) When a change order is proposed, the in making or in any way attempt to use his contract administrator of the authority official position to influence a shall be notified and shall determine governmental decision in which he knows whether a change order is required. After or has reason to know he has a financial consulting with the general counsel of the interest.” authority and appropriate technical advisers, the contract administrator shall 11

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______either approve or disapprove the proposed dollars ($25,000), the commission shall contract change order. obtain a minimum of three quotations, (b) The general counsel of the authority either written or oral, which permit prices shall be consulted on the proposed change and terms to be compared. order at the earliest possible time to (c) Where the expenditure required by the consider and render advice on the legal bid price is less than fifty thousand dollars implications of the proposed change. The ($50,000), the executive director may act contract administrator shall not approve a for the commission. proposed change order unless the general (d) All bids for construction work counsel recommends changing the terms submitted pursuant to this section shall be of the contract. presented under sealed cover and shall be (c) The contract administrator shall accompanied by one of the following require the contractor to submit certified forms of bidder's security: cost and pricing data for the proposed (1) Cash. change, and shall require an internal fiscal (2) A cashier's check made payable to the audit of any proposed change order that commission. would cost in excess of one hundred (3) A certified check made payable to the thousand dollars ($100,000) to implement. commission. (d) The opinions of informed individuals (4) A bidder's bond executed by an working on the contract who oppose the admitted surety insurer, made adoption of a proposed change order shall payable to the commission. be documented and be taken into (e) Upon an award to the lowest bidder, consideration by the authority's change the security of an unsuccessful bidder control board when determining whether shall be returned in a reasonable period of a contract change is warranted. time, but in no event shall that security be held by the commission beyond 60 days Contracting, Competitive Bidding – PUC from the date that the award was made. 130232 (f) The following provisions apply only to (a) Except as provided in subdivision (f), the Los Angeles County Metropolitan purchase of all supplies, equipment, and Transportation Authority: materials, and the construction of all (1) The contract shall be let to the lowest facilities and works, when the expenditure responsible bidder when the purchase required exceeds twenty-five thousand price of all supplies, equipment, and dollars ($25,000), shall be by contract let to materials exceeds forty thousand dollars the lowest responsible bidder. Notice ($40,000), and the construction of all requesting bids shall be published at least facilities exceeds twenty-five thousand once in a newspaper of general dollars ($25,000). circulation. The publication shall be made (2) The commission shall obtain a at least 10 days before the date for the minimum of three quotations, whether receipt of the bids. The commission, at its written or oral that permit prices and discretion, may reject any and all bids and terms to be compared whenever the re-advertise. expected expenditure required exceeds two (b) Except as provided for in subdivision thousand five hundred dollars ($2,500), (f), whenever the expected expenditure but not forty thousand dollars ($40,000). required exceeds one thousand dollars ($1,000), but not twenty-five thousand 12

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Contracting, Competitive Negotiation for the nature and requirement of the Specialized Equipment – PUC 130238 procurement. (a) The Legislature finds and declares that (2) Notice of the request for proposals (1) because of the highly specialized and shall be published at least twice in a unique nature of all rail transit equipment, newspaper of general circulation, at least (2) because of products and materials 10 days before the date for receipt of the which are undergoing rapid technological proposals. changes, and (3) for the introduction of (3) The commission shall make every new technological changes into the effort to generate the maximum feasible operations of the commission, it may be in number of proposals from qualified the public interest to consider, in addition sources and shall make a finding to that to price, factors such as vendor financing, effect before proceeding to negotiate if performance reliability, standardization, only a single response to the request for life-cycle costs, delivery timetables, proposals is received. support logistics, and the broadest (4) The request for proposals shall identify possible range of competing products and all significant evaluation factors, including materials available, fitness of purchase, price, and their relative importance. manufacturer's warranty, and similar (5) The commission shall provide factors in the award of contracts for these reasonable procedures for technical vehicles and equipment. evaluation of the proposals received, (b) This section applies only to the identification of qualified sources, and purchase by the commission of selection for contract award. (1) Specialized rail transit equipment, (6) Award shall be made to the qualified including rail cars, and proposer whose proposal will be most (2) Computers, telecommunications advantageous to the commission with equipment, fare collections equipment, price and all other factors considered. microwave equipment, and other related (7) If award is not made to the bidder electronic equipment and apparatus. This whose proposal contains the lowest price, section does not apply to contracts for the commission shall make a finding construction or for the procurement of any setting forth the basis for the award. product available in substantial quantities (d) The commission, at its discretion, may to the general public. reject any and all proposals and request (c) The commission may, after finding by new proposals. a two-thirds vote of all of its members that (e) A person who submits, or who plans to a particular procurement qualifies under submit, a proposal may protest any subdivision (b), direct that the acquisition conducted in accordance with procurement be conducted through this section as follows: competitive negotiation under this section. (1) Protests based on the content of the For purposes of this section, competitive request for proposals shall be filed with negotiation includes, but is not limited to, the commission within 10 calendar days all of the following requirements: after the request for proposals is first (1) The request for proposals shall be advertised in accordance with subdivision prepared and submitted to an adequate (c). The commission shall issue a written number of qualified sources, as decision on the protest prior to opening of determined by the commission, to permit proposals. A protest may be renewed by reasonable competition consistent with re-filing the protest with the commission 13

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______within 15 calendar days after the mailing management, acquisition, leasing, of the notice of the recommended award. installation, and warranty of all or (2) Any bidder may protest the components of (1) transit systems, recommended award on any ground not including, without limitation, passenger based upon the content of the request for loading or intermodal station facilities, proposals by filing a protest with the and (2) facilities on real property owned or commission within 15 calendar days after to be owned by the authority. the mailing of the notice of the recommended award. (b) The authority may award contracts (3) Any protest shall contain a full and pursuant to subdivision (a) after a finding, complete written statement specifying in by a two-thirds vote of the members of the detail the grounds of the protest and the authority that awarding the contract under facts supporting the protest. Protestors this section will achieve for the authority, shall have an opportunity to appear and be among other things, certain private sector heard before the commission prior to the efficiencies in the integration of design, opening of proposals in the case of project work, and components. protests based on the content of the request for proposals, or prior to final (c) A contract awarded pursuant to this award in the case of protests based on section may include operation and other grounds or the renewal of protests maintenance elements, if the inclusion of based on the content of the request for those elements (1) is necessary, in the proposals. reasonable judgment of the authority, to (f) Provisions in any contract concerning assess vendor representations and women and minority business enterprises, warranties, performance guarantees, or which provisions are in accordance with life cycle efficiencies, and (2) does not the request for proposals, shall not be conflict with collective bargaining subject to negotiation with the successful agreements to which the authority is a bidder. party.

Contracting, Construction Contracts – (d) Any construction, alteration, PUC 10051.9 demolition, repairs or other works of The CEO is authorized to approve and improvement performed under a contract award all contracts for construction based awarded pursuant to this section shall be on the lowest responsible and responsive considered a public works project subject bid submitted. to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Contracting, Design/Build for Systems Code, and shall be enforced by the and Facilities; Low Bid Award – PUC Department of Industrial Relations in the 130242 same way it carries out this responsibility (a) In addition to the other powers it under the Labor Code. possesses, the authority may enter into contracts with private entities, the scope of (e) A contract under this section shall be which may combine within a single let to the lowest responsible bidder whose contract all or some of the planning, bid is responsive to the criteria set forth in design, permitting, development, joint the invitation for bids. Notice requesting development, construction, construction bids shall be published at least once in a 14

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______newspaper of general circulation. The Contracting, Immediate Remedial publication shall be made at least 60 days Measures – PUC 130235 before the receipt of the bids. The (a) Upon determining that immediate authority, at its discretion, may reject any remedial measures to avert or alleviate and all bids, and may re-advertise. All bids damage to property, or to replace, repair, submitted pursuant to this section shall be or restore damaged or destroyed property, presented under sealed cover and shall be of the commission are necessary in order accompanied by one of the following to ensure that the facilities of the forms of bidder security: (1) cash, (2) a commission are available to serve the cashier' s check made payable to the transportation needs of the general public, authority, (3) a certified check made and upon determining that available payable to the authority, or (4) a bidder's remedial measures, including bond executed by an admitted surety procurement or construction in insurer, made payable to the authority. compliance with Sections 130232, 130233, Upon an award to the lowest responsible and 130234 are inadequate, the executive bidder, the security of each unsuccessful director may authorize the expenditure of bidder shall be returned in a reasonable money previously appropriated specifically period of time, but in no event shall that by the commission for the direct security be held by the authority beyond 60 purchases of goods and services, without days from the time the award is made. following those sections. Public Contract Code section 20209.5- (b) The executive director shall, after any 20209.14 can also utilized for transit such expenditure, submit to the design-build procurement processes. commission a full report explaining the necessity for the action. Contracting, Emergency Expenditures – PUC 130234 Contracting, Open Market Purchases – In case of any great public calamity, such PUC 130233 as an extraordinary fire, flood, storm, If, after rejecting bids received under epidemic, or other disaster, or interruption Section 130232 the commission of contracts essential to the provision of determines and declares, by a two-thirds daily transit service or catastrophic failure vote of all of its members, that the of revenue-producing equipment or supplies, equipment, or materials may be facilities, the commission may, by purchased at a lower price in the open resolution passed by a two-thirds vote of market, the commission may proceed to all its members, declare and determine purchase those supplies, equipment, or that public interest and necessity demand materials in the open market without the immediate expenditure of public further observance of the provisions in money to safeguard life, health, or this article regarding contracts, bids, property, and thereupon proceed to advertisement, or notice. expend or enter into a contract involving the expenditure of any sum needed in the Contracting, Pre-qualification – PUC emergency without observance of the 130051.21 provisions in this article regarding The LACMTA’s Inspector General is contracts, bids, advertisement, or notice. required to prepare a pre-qualification questionnaire to be completed by any business entity seeking to contract with 15

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______the authority. The questionnaire for subleases by such operator upon such minimally solicits the following terms and conditions as it deems in the information: public interest. The word "operator" as  Experience. used in this section means any city or  Quality and timeliness of past public agency or any person, firm or performance. private corporation properly licensed and  Reliability and responsibility. engaged in the transportation of  Compliance with equal employment passengers for hire. requirements.  Compliance with wage, hours, and Contracting, Single Source – PUC 130237 other fair labor standards. The Board may also direct the purchase of  Subcontractors used by the firm. any supply, equipment or material without  Integrity of the firm and its key contract, bid or advisement upon finding personnel. by two-thirds vote that there is only a  Gifts given, or contributions made, to single source of procurement and its members or alternate members or purchase is for the sole purpose of employees of the authority. duplicating or replacing a supply, Neither the authority nor any of its equipment or material already in use. organizational units may contract or do business with any responding firm that Contracting, Transit Equipment – PUC knowingly provides false information in 130051.12 the questionnaire. The Board reserves the right to approve all contracts for transit equipment acquisition Contracting, Prototype Equipment – PUC that exceeds $5,000,000 130236 Notwithstanding Section 130232, and Debt and Debt Limits – PUC 30700-30706, upon a finding by two-thirds vote of all 130221 members of the commission that the Bonds may be issued, money borrowed proposed purchase in compliance with and debt incurred as authorized by law. Sections 130232 (competitive bidding) and These sections go on to describe the ability 130233(open market) does not constitute a to accept contributions and enter into method of procurement adequate for the agreements with the United States, State operation of commission facilities or of California, and other public agencies for equipment, the commission may direct the acquisition, construction, the procurement of prototype equipment development, joint development, or modifications in an amount sufficient completion, maintenance, operation, or to conduct and evaluate operational testing repair of transit facilities. LACMTA is without further observance of any authorized make irrevocable pledges or provisions in this article regarding contracts for the payment of principal and contracts, bids, advertisements, or notice. the interest, or other obligation of any bonded indebtedness, of any transit funds Contracting, Rapid Transit Facilities – or other continuing or annual PUC 30632 appropriations, contributions, grants, or The LACMTA may lease or contract for loans by the United States or any the use of its facilities, or any portion department or agency thereof, the State of thereof, to any operator, and may provide California, a county, a city, or any other 16

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______public agency, or any other individual or entity, public or private. The only Elections – PUC 30740-30742 limitation stated in this section is This section authorizes the LACMTA to contained in section 30704, “shall not hold elections for bond or tax measures incur an indebtedness which exceeds in consolidated with statewide general or the aggregate 15 percent of the assessed statewide direct primary elections, in value of all real and personal property…” accordance with the State Elections Code. The Board of Directors, officers, members Delegation of Authority – PUC 130051.11 or members authorized by the Board, The LACMTA may administratively individual voters and associations may file delegate to an organization unit or to its written arguments, provided they are less CEO, any powers or duties it deems than 300 words in length, for or against, appropriate such as eminent domain, any LACMTA bond or tax measure. approval of contracts (except final approval of labor contracts), and the hearing and Eminent Domain – PUC 30503 and resolving of bid protests. 130220.5 “The district may exercise the right of Disadvantaged Business Enterprise eminent domain within the boundaries of Program – PUC 130051.19 and 130239 the district to take any property necessary, The authority adopts and implements a incidental, or convenient to the exercise of disadvantaged business enterprise the powers granted in this part.” program. Proposition 209 limits additional provisions of this section. “The commission has the power of eminent domain to take any property Disputes between Public Transit necessary, incidental or convenient to the Operators – PUC 130250, 130262 and exercise of its powers pursuant to this 130263 division.” The LACMTA is to coordinate the operation of all public transportation There are additional provisions for services within the county to ensure exercising eminent domain outside efficient operation, and shall resolve all territorial limits for the purposes of jurisdictional disputes between public environmental mitigation with the transit operators. It is to ensure that consent of the affected county’s board of regional operators, municipal operators supervisors. and local transportation zones do not compete or unnecessarily duplicate Ethics – PUC 130051.17 and 130051.20, services while assisting each other to This section required the adoption of an provide the maximum level of service to ordinance regulating the acceptance of the general public at the lowest possible gifts and placing calendar year dollar cost. It is not permitted to reduce, by limits on gifts from any single source. It order or by reduced funding, the size of also limits campaign contributions to the service areas, levels of service they board members, employees and their provide or the scope of their operations immediate families from anyone seeking without first consulting with the to contract with the authority. municipal operator and the municipalities in which they operate. 17

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Exclusive Powers and Responsibilities – year term of office. The Inspector General PUC 130051.12 can only be removed by either a two-thirds The LACMTA Board, at a minimum, vote or violation of LACMTA policy, local, reserves exclusively to itself, the following state or federal law. The Inspector powers and responsibilities: General is required to provide a quarterly  Establishment of overall goals and report on travel, fees, business expenses objectives to achieve optimal transport and other expenditures specified by the service for the movement of goods and Board. people on a countywide basis.  Adoption of the aggregate budget for Investments – PUC 30730, Government all organizational units of the Code 27000, 53600, 53607, 53635, 53646 authority. The board may, by resolution, order that  Designation of additional included any funds, which are not necessary for municipal operators pursuant to current operating expenses, be invested in subdivision (f) of Section 99285. any obligations, bonds or securities in  Approval of final rail corridor which a county could invest. However, selections. any such investments shall be made in  Final approval of labor contracts such a manner that the moneys in such covering employees of the authority funds will be available at the times and in and organizational units of the the amounts necessary to accomplish the authority. purpose for which said funds where  Establishment of the authority's established, and no such investment shall organizational structure. be made in contravention of any provision  Conducting hearings and the setting of or covenant in any proceedings for the fares for the operating organizational authorization and issuance of bonds, unit established pursuant to paragraph notes, contracts or other evidences of (2) of subdivision (a) of Section indebtedness. 130051.11.  Approval of transportation zones. Per the Government Code as amended by  Approval of the issuance of any debt SB109 (Kopp, ‘95-‘96), the legislative body instrument with a maturity date that of a local agency is authorized to delegate exceeds the end of the fiscal year in its authority to invest or reinvest local which it is issued. agency funds or to sell or exchange  Approval of benefit assessment securities purchased, to the Treasurer or districts and assessment rates. chief fiscal officer for a one-year period,  Approval of contracts for transit renewable annually, subject to review. A equipment acquisition that exceed five statement of investment policy must be million dollars ($5,000,000), and adopted annually at a public meeting. making the findings required by subdivision (c) of Section 130238. The treasurer or chief fiscal officer is required to submit a quarterly report to Facilities (See Rapid Transit Facilities) the CEO, Internal Audit, and the Board, within 30 days following the end of the Inspector General – PUC 130051.28 quarter covered by the report. The Board The Inspector General is appointed by and may also elect to require this report on a reports to the Board with an initial four- 18

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______monthly basis if it so desires. The report provision of transportation services when must: such arrangements are in the public  Include a description of any of the interest. local agency's funds, investments, or programs, that are under the Leasing – PUC 30940-30943 management of contracted parties, The LACMTA has the power to purchase including lending programs; equipment and may execute agreements,  Include the current market value as of leases and trust certificates with the date of the report and the source of companies authorized to conduct business that valuation for all securities held by in the State of California. All such the local agency, and/or under agreements and leases shall be authorized management of any outside party that by resolution is not also a local agency, or the State of California Local Agency Investment Lobbying – PUC 130051.18 Fund; This section required the adoption of an  Include the type of investment, issuer, ordinance for the regulation of lobbying date of maturity par and dollar amount and a lobbyist registration system. It also invested on all securities, investments prohibits former authority officials from and moneys held by the agency; becoming a lobbyist for a period of one  State compliance of the portfolio to the year after leaving the LACMTA. statement of investment policy, or manner in which the portfolio is not in Long Range Plans – PUC 130303.1, compliance; 130250, Government Code 65080, and  Include a statement denoting the Title 23, section 134 United States Code. ability of the local agency to meet its In addition to short range plans of three to pool's expenditure requirements for five years, the LACMTA is also responsible the next six months, or provide an for developing long range expenditure explanation as to why sufficient money plans for transportation programs shall, or may, not be available; included in voter approved transaction and  Report whatever additional use tax measures that are consistent with information the Board may require. the regional transportation plan and regional transportation improvement Finally, any decision that involves program. borrowing of $100,000 or more must be considered as a separate item of business Sections 65080-65086 of the Government on the agenda of the meeting of the Code provide extensive guidance on the legislative body of the local agency. content, process to be followed, alternative scenarios, designation of corridors, etc. Joint Development (See Property and Rapid Transit Facilities) Title 23 mandates the preparation and periodic update of a 20-year long-range Joint Powers Agreements – PUC 130058 transportation plan. The plan is to The LACMTA is encouraged, through the include: intent of the legislature, to form Joint  Identification of transportation Powers Agreements for the development facilities that should function as an of transportation facilities or for the 19

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______integrated metropolitan transportation Merger of SCRTD with the Orange system; County Transit District – PUC 40600-  A financial plan that demonstrates 40617 and the San Diego County Transit how the adopted long-range District – PUC 9300-93017. . transportation plan can be At one time, consideration was given to implemented, including additional creating a truly “Southern California” projects that may be implemented rapid transit district by annexing both should reasonable resources beyond Orange and San Diego County’s transit those identified become available; districts through voter referendum. While  Capital investment necessary to ensure it remains on the books in the Public the preservation of the existing Utilities Code, it appears to be an transportation system; impossibility now that the population base  Coordination with clean air act of those two counties fully supports their agencies; own transportation systems.  Participation by interested parties;  And, publication of the long-range Municipal Operators – 99207, 99207.5, transportation plan for public review. 99209, 99209, 99280, 99285, and 1130263 Included municipal operators are those The Southern California Association of whose public transportation services have Governments (SCAG) must coordinate been continuously provided since January transportation system decisions in 1, 1971, and/or meets established criteria. Regional Transportation Plan and Regional Transportation Improvement An eligible municipal operator is one that Plan with LACMTA. The LACMTA was has been designated as eligible to receive formed with transportation planning and formula equivalent funds allocable for programming responsibilities that flow transit operating purposes other than through SCAG. If LACMTA defaults on funds specifically included in the formula these responsibilities due to a lack of allocation program. consensus or resources, SCAG must make these decisions. See PUC Section 130000 Municipal operators may not add or et seq., 130050 et seq., 130301 (h) and (k), extend routes outside of their boundaries 23 USC Section 134 (h)(2)(a), and Cal Gov or reserved service area without first Code Section 14527, 65082 & 130301. providing the LACMTA board with a 60 day advance written notice of its intention Merger of LAMTA with SCRTD – PUC to add new routes or extend existing ones. 31000-31005 Within 30 days of receiving such notice, Creates the Southern California Rapid the LACMTA must either notify the Transit District Law and merges the municipal operator that it does not intend LAMTA into the SCRTD effective with the to add or extend the routes in question, or, second regular board meeting of the new serve immediate notice to the included agency in 1964. All employees of the municipal operator that it desires to LAMTA become employees of the district establish the proposed new service. with the same rights, privileges and compensation as they had as employees of The reserved service area is defined as the the LAMTA. area that would be formed by joining all points that are distant three-quarters of 20

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______one mile from any point of any of its Rapid Transit District on all exclusive regularly scheduled routes in existence public mass transit guideway projects in and in operation on March 1, 1971. the County of Los Angeles; and the Included municipal operators were operation of bus routes operated by the required to file a certified route map Southern California Rapid Transit District, showing regularly scheduled route and all the duties, obligations, and boundaries that form their reserved liabilities of the district relating to those service area with the transportation bus routes. See also Construction, and planning agency. Planning and Programming.

Municipal Operators, Formula Allocation Orange County-Los Angeles Unified – PUC 99207.5 and 99285 Regional System – PUC 40010 The Mills-Alquist-Deddeh Act (See Transit This section requires that Los Angeles and Development Act) prescribes formulas for Orange County coordinate together on a the allocation of funds to transit operators. regional mass rapid transit system: The SB1755 (Calderon ‘95-‘96) revised those former Orange County Transit District formulas for the allocation of funds to (now merged into Orange County’s transit operators in Los Angeles County. Transportation Commission as the Commencing with the 1996-97 fiscal year, Orange County Transportation Authority) eligible and included municipal operators had the stated purpose, when financing are to be allocated funds based on the became available, to build a rapid transit formula allocation procedure in effect on system as part of a unified Los Angeles- July 1, 1995. Orange County areawide system. It was to incorporate the physical characteristics Based on audited transit performance necessary for full compatibility with the data, funds available for allocation is Los Angeles system and have unified calculated based on 50% of the operators operation and management. Later on, in vehicle service miles and 50% of its PUC section 130254, the Orange County passenger revenues divided by its base Transportation Authority designates itself cash fare. The funding formula for as the transit guideway operator for included and eligible municipal operators Orange County. can only be modified by a three-fourths vote of the principal members of the Organizational Structure – PUC Board. A two-thirds vote is required to 130051.11 establish or change the criteria for The LACMTA has the authority to admitting new included municipal determine its organizational structure, operators or to allocate funds to an departments, divisions, subsidiary units, included operator that has not previously or similar entities. At a minimum, it must received funds. establish a transit construction unit for public mass transit guideway projects, an Operations – PUC 130051.11 operating unit responsible for the LACMTA is mandated to have an operation of all bus and public mass operating organizational unit with the transit guideway routes, and a following transportation planning and programming responsibilities: The operating unit responsible for all those planning responsibilities of the Southern California 21

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______activities previously performed by both the In additional to the responsibilities named SCRTD and LACTC. in various sections of the public utilities code, the metropolitan planning process Personnel System – PUC 30257, 30258, mandated by the federal government in and 30752, Government Code 29007 USC 23, Section 134 (f) includes the The board adopts a personnel system for following guiding policy statement: the purpose of recruiting and maintaining an effective work force with good morale. Scope of Planning Process - The board, by resolution, determines and  In general, the metropolitan creates the number and character of transportation planning process for a positions as are necessary through the metropolitan area under this section annual budget process. The board also shall provide for consideration of establishes the appropriate salary range or projects and strategies that will wage for each position created, except for support the economic vitality of the positions in a collective bargaining unit. metropolitan area, especially by The board may also establish health and enabling global competitiveness, other fringe benefits. The board can also, productivity, and efficiency; by resolution abolish any such position.  Increase the safety and security of the Except for the positions appointed by the transportation system for motorized board, the CEO appoints all other and non-motorized users; positions. The board may contract for or  Increase the accessibility and mobility employ any professional services required, options available to people and for which in the opinion of the board, cannot freight; be satisfactorily performed by regular  Protect and enhance the environment, officers or employees. promote energy conservation, and improve quality of life; Government Code section 29007 requires  Enhance the integration and a schedule in or supporting the budget connectivity of the transportation document, or a separate ordinance or system, across and between modes, for resolution setting forth for each budget people and freight; unit the salary rate or range, number of  Promote efficient system management positions currently approved, number of and operation; and positions requested or recommended by  Emphasize the preservation of the the administrative officer, and the number existing transportation system. approved by the Board. See also Construction, and Operations.

Planning and Programming– PUC Procurement – See Contracting 130051.11 and USC Title 23, Sec 134 The LACMTA is mandated to have a Property – PUC 30600 (acquire, dispose, transportation planning and programming lease, joint develop) organizational unit with all planning The LACMTA may take by grant, responsibilities previously performed by purchase, gift, devise, or lease, or by the Southern California Rapid Transit condemnation, or otherwise acquire, and District and the Los Angeles County hold and enjoy, real and personal property Transportation Commission. of every kind within or without the district necessary or incidental to the full or 22

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______convenient exercise of its powers. That lease, and dispose of works and facilities property includes, but is not limited to, in, under, upon, over, across, or along any property necessary for, incidental to, or road, street, alley, avenue, or public convenient for joint development and highway or any stream, bay, watercourse, property physically or functionally related or other public ways or waterways, or over to rapid transit service or facilities. The any of the lands which are the property of board may lease, sell, jointly develop, or the state, including, but not limited to, otherwise dispose of any real or personal facilities and structures physically or property when, in its judgment, it is for functionally related to rapid transit service, the best to do. See also Rapid Transit to the same extent that those rights and Facilities privileges relating to public ways or waterways are granted to municipalities Rapid Transit Facilities – PUC 30631a within the state for those uses or any other The LACMTA may acquire, construct, use. develop, lease, jointly develop, own, operate, maintain, control, use, jointly use, It may also enter into agreements for the or dispose of rights-of-way, rail lines, joint use or joint development of any monorails, bus lines, stations, platforms, property or rights with any entity, public switches, yards, terminals, parking lots, air or private, for the joint use or development rights, land rights, development rights, of any property. entrances and exits, and any and all other facilities for, incidental to, necessary for, PUC 30634(b)-30634(e) provides or convenient for rapid transit service, definitions of joint development, transit including, but not limited to, facilities and and non-transit facilities. structures physically or functionally related to rapid transit service, within or Records Management – PUC 130051.23 partly without the district, underground, Whenever the Authority determines by upon, or above the ground and under, resolution that any record, map, book, or upon, or over public street, highways, paper in the possession of the authority or bridges, or other public ways or any officer or employee thereof is of no waterways, together with all physical further value to the authority, the board structures necessary for, incidental to, or may authorize its sale, destruction, or convenient for the access of persons and other disposition. Documents significant vehicles thereto, and may acquire, lease, to the activities of the authority, including, sell, or otherwise contract with respect to but not limited to, board and committee any interest in or rights to the use or joint agendas, incoming and outgoing use of any or all of the foregoing. See also correspondence, and contractual PUC 30631(b) and PUC 30631(c) for documents, shall be microfilmed or further detail on agreements with local otherwise preserved prior to the sale, jurisdictions for rapid transit facilities. destruction, or other disposition of the original. Rapid Transit Facilities, Joint Development PUC 30633 and PUC Regional Transit Services Program – PUC 30634(a) 130450 The LACMTA may construct, acquire, The LACMTA, in consultation with the develop, jointly develop, maintain, operate, Southern California Association of 23

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Governments, the California will satisfactorily provide an adequate and Transportation Commission, the Los sure method of meeting the payments Angeles-San Diego Rail Corridor Agency contemplated by the retirement system. and the South Coast Air Quality Management District jointly develops an The board adopts ordinances and implementation program for regional resolutions to perform all acts necessary transit services every two years. It serves for the initiation, maintenance, and as the basis for funding allocated by the administration of the retirement system. California Transportation Commission. It also decides the terms and conditions The program minimally includes: upon which the officers, employees and  a system plan and map of all regional their beneficiaries are entitled to. transit services,  an implementation plan and schedule Any pension or retirement system must to establish each regional service not be adopted on a sound actuarial basis and already in existence, provide for contributions by both the  a policy and implementation plan for LACMTA and the employee members of the coordination of technologies, fare the system, which shall be based on and schedules to maximize percentage of pay roll to be changed only convenience of passengers in by adjustments based experience under transferring among regional services, the system.  a program for the operation of regional transit services that provides as Contributions are to be made in amounts efficient and convenient service as it that will accumulate sufficiently to meet appropriate, the promise to pay benefits to the  considers the needs of the elderly and individual, without further contributions handicapped, from any source. The board may at any  and it consistent with and implements time amend, change, modify or terminate the adopted regional transportation any provision for benefits, participation, or plan. contributions. See also Transportation Development Act. The adoption, terms, and conditions of the Retirement System – PUC 30400-30403, retirement systems covering employees in 30430-30433, & 30450-30451, and 130110 a bargaining unit represented by a labor The board may establish a retirement organization shall be pursuant to a system for its officers and employees, and collective bargaining agreement between provide for the payment of annuities, such labor organization and the district. pensions, retirement allowances, disability Any such retirement system must be payments, and death benefits for any of based on a sound actuarial basis. Both the them. LACMTA and the labor organization that represents employees in a bargaining unit The LACMTA may maintain its own must be equally represented in the retirement fund or may provide for administration of such a retirement benefits to eligible officers and employees, system.” or their beneficiaries, by means of group insurance or other insurance, or any means that, in the opinion of the board, 24

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______Retirement System, Public Employee Safety, Construction – PUC 130051.25 Retirement System – PUC 30404-30406, This section requires construction firms 130109-130110 contracting with the authority to report As an alternative method of providing a total recordable injuries on a monthly retirement system, the board may contract basis. A recordable injury is defined as with the Board of Administration of the any requiring treatment beyond simple Public Employees' Retirement System first aid. The authority shall then (PERS) and enter all or any portion of its determine if the number of recordable employees under such system pursuant to injuries exceeds the national average as law and under the terms and conditions of reported by the Bureau of Labor Statistics such contract, or may contract with the and base any safety bonus program on the Board of Administration of the Public overall rate of recordable injuries. Employees' Retirement System for reciprocal benefits between the Public Safety, Public Utilities Commission – Employees' System, or a city, or city and PUC 30646 county, or any other public agency The LACMTA is subject to the regulations contracting with the Public Employees' and jurisdiction of the Public Utilities Retirement System and the district's Commission relating to safety appliances, retirement system as authorized by procedures, rule and regulations Section 20042 of the Government Code, governing the operation of street railways, and may perform all acts necessary or and requires the inspection of all work for convenient to provide for such reciprocal the safety of employees and the general benefits. public.

The board may also contract with the Safety, Vehicle Code and California Board of Administration of the State Highway Patrol – PUC 30647 Employees' Retirement System for The LACMTA is subject to the provisions participation in the Federal Social Security of Division 14.8 (commencing with Act and may perform all acts necessary or Section 34500) of the Vehicle Code with convenient for such participation. respect to the operation of buses and to the rules and regulations prescribed by the Under section 130109a, it states that the Department of the California Highway board must enter into a contract with the Patrol for the safe operation of buses. Board of Administration of the Public Employees' Retirement System, and the San Fernando Valley, Public Mass Transit board shall enter into such a contract to Guideway System and Trust Fund – PUC include all non-represented employees 30648(a)-30648(e) into that retirement system, and the This section contains specific provisions employees shall be entitled to substantially for the San Fernando Valley related to the similar health benefits as state employees construction of any exclusive public mass transit guideway from downtown Los Section 130110 attempts to clarify the Angeles, including the deposit of 15% of differences in retirement systems between non-federal funds allocated for represented and non-represented construction into a trust fund to ensure its employees. expenditure on qualified Valley Metro Rail construction. 25

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______The LACTC’s territory included all of Los San Fernando Valley, Burbank Branch Angeles County (including the island of Line Right of Way – PUC 130265 Santa Catalina). This section allows for The LACMTA may not construct any future annexation of additional territory exclusive mass transit rail guideway, rail and/or whole other counties. See also rapid transit, or light rail system, or other Annexation. track, other than as a subway system that is covered and below grade along the Short Range Transportation Improvement Burbank-Chandler right-of-way. Program – PUC 130056 and 130303, Title 23 United States Code, Sec 134 (g) and (h). Section 13(c) – PUC 130051.15 The LACMTA is to provide objective All obligations of the SCRTD and LACTC analysis of various options relative to plans with respect to the Metro Rail Full and proposed projects of regional and Funding Grant Agreement and UMTA local transportation agencies and then section 13(c) provisions are assumed translate those options into a short-range without condition by the LACMTA. transportation improvement program.

Security – PUC 30504 and 130051.12 It is responsible for determination, on an The LACMTA is authorized to maintain a annual basis, of the total amount of funds suitable security force comprised of transit that could be available for transportation police officers and security guards. It planning and development. It is also currently contracts out its transit police responsible for the development and force. approval of a short-range three- to five-year transportation improvement program with The LACMTA is also required to perform an annual updated element reflecting all a security assessment once every five transportation capital and service priorities years, in conjunction with the other to be developed with all appropriate municipal operators in the County of Los coordination and cooperation between Angeles, to determine the safety and state and local transportation agencies and security measures required to protect the operators. operation of their systems and their passengers. All projects utilizing federal and state highway and transit funds, and all Service Area – PUC 30100 exclusive public mass transit guideway The LACMTA’s service area within Los projects no matter how funded, must be Angeles County is defined in legal terms, included in the adopted transportation as it existed in 1964 for the SCRTD, which improvement program. The program excluded the island of Santa Catalina. Of shall also be developed in coordination the county’s 4,100 square miles, the with the multi-county designated LACMTA covers 1,433 miles with transit transportation planning agency and the service, which is the vast majority of the Department of Transportation, shall be county’s urbanized area. See also the consistent with the adopted regional Municipal Operators section on Reserved transportation plan, and shall be reviewed Service Areas. and commented on pursuant to subdivision (j) of Section 130301.

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LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______The LACMTA will also determine or transportation providers, approve of the location and capacity of all representatives of users of public capital development projects, including, transit and other interested parties; but not limited to, exclusive public mass  Funding estimates of money transit guideway systems, state highway reasonably expected to available to projects, and federal-aid highway projects. support program implementation; It will also make the selection and specific  Update and approval at least once approval of appropriate mass transit every two years; hardware and technology to be funded by  Priority list of proposed federally the transportation improvement program. supported projects and strategies to be It will determine and approve of the carried out within each three year staging and scheduling of construction period after initial adoption; and other development relative to all  Regionally significant projects; transportation improvement projects to be  Additional projects that would be funded by the transportation improvement included if reasonable additional program. And finally, it will administer resources beyond those identified were the countywide program for the available; expenditure of funds allocated pursuant to  Consistency with the Long Range Chapter 4 (commencing with Section Transportation Plan; 99200) of Part 11 of Division 10.  Publication and public availability of transportation improvement The LACMTA is required by federal and programs. state statutes to prepare a Transportation Improvement Program (TIP) for Social Service Transportation Inventory – Angeles County. The LACMTA is Government Code 15950-15986 and PUC required to program revenues in the TIP 99200. across all transportation modes based on The Social Service Transportation the planning requirements of the Improvement Act, implemented by AB120 Intermodal Surface Transportation in 1979, amended by SB826 in 1989 and Efficiency Act (ISTEA) of 1991 and the also by AB2647 in 2002, requires the Transportation Equity Act for the 21st LACMTA to prepare and adopt an action Century in 1998. The LACMTA plan that describes in detail the steps accomplishes this mandate by required to accomplish the consolidation programming funds on a multi-modal of social service transportation services. basis through the TIP Call for Projects. Funding for the action plan is to be provided from Transportation The federal requirements for the Development Act (TDA) funds under transportation improvement program section 99200 of the PUC. include:  Development with the state and any There are now just four basic issues to be affected public transit operator; addressed by the report:  Opportunity for comment by citizens,  The designation of a Consolidated affected agencies, representatives of Transportation Service Agency transportation agency employees, (CTSA), freight shippers, providers of freight  The identification of the recipients to transportation services, private be served, funds available and a 27

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______strategy to implement consolidated or and has the authority and power vested in coordinated services, the Southern California Rapid Transit  Measures to coordinate services with District to plan, design, and construct an existing public and specialized exclusive public mass transit guideway transportation services, system in the County of Los Angeles,  Measures to insure that the action plan including, but not limited to, Article 5 is consistent with the legislative intent (commencing with Section 30630 of of Section 15951, the Social Service Chapter 5 of Part 3 of Division 11). Transportation Act. (b) The commission shall conform to this article in letting contracts for the The legislative intent included the construction of that system.” identification of social service transportation providers and encouraging This reflects the results of the two half- consolidation. It was envisioned that cent sales tax increases approved by the consolidation would accrue benefits such voters in 1980 as Proposition A and 1990 as consolidated purchasing, training, as Proposition C and clarifies the dispatching, maintenance, administration responsibility for planning and and funding. construction of mass transit projects prior to the merger of the two transportation After twenty years of reporting to the state agencies. legislature through CalTrans, the specific requirements for regional transportation “A retail transactions and use tax planning agencies and transportation ordinance applicable in the incorporated commissions to adopt a plan every four and unincorporated territory of the County years, hold public hearings, publish an of Los Angeles may be adopted by the Los update every two years and submit the Angeles County Transportation report to the Director of CalTrans was Commission in accordance with Part 1.6 repealed by AB2647 in 2002. The current (commencing with Section 7251) of requirement only requires the preparation Division 2 of the Revenue and Taxation and adoption of a plan. Code, provided that a majority of the electors voting on the measure vote to Taxation – PUC 30502, 130231 and authorize its enactment at a special 130350-130355. election called for that purpose by the “The district may levy and collect or cause commission.” to be collected, taxes for any lawful purpose, as provided in Chapter 6 Section 130350.5 allows for the Board to (commencing with Section 30800) of this adopt an ordinance that would put a part.” Section 30800 was repealed. proposition before Los Angeles County voters for an additional half cent sales tax “(a) The Los Angeles County to fund a specific set of capital projects. Transportation Commission is authorized to impose a transactions and use tax Transit Development Act - PUC 99220- within the County of Los Angeles The Transportation Development Act pursuant to the approval by the voters of (TDA) was enacted during the 1971 the commission' s Ordinance No. 16 in legislative session by SB325. It is also 1980 and its Ordinance No. 49 in 1990, known as the Mills-Alquist-Deddeh act. It 28

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______provides two major sources of funding for  Approve allocations and issue public transportation: the Local allocation instructions. Transportation Fund (LTF) and the State  Review and analyze fiscal and Transit Assistance fund (STA). ¼ of 1¢ of compliance audits from claimants. the state sales tax and 6¢ state sales tax on  Approve TDA projects by inclusion in motor vehicle fuel is deposited annually the county TIP. into the LTF. The STA fund was created  Approve priority list of bikeway and later through an amendment to the TDA pedestrian projects. during the 1979 legislative session  Review claims for consistency with through SB620. It requires that SCAG TIP, forward claims for approval. and LACMTA establish separate funds  Conduct unmet transit needs hearings into which money is allocated from the and develop recommended findings. State Transportation Planning and  Submit fiscal/conformance audit of its Development Account. activities.

These funds are for the development and SCAG retains all administrative functions support of public transportation needs that not delegated to the LACMTA. It exist in California and are allocated to specifically retains its statutorily mandated areas of each county based on population, authority to issue allocation instructions. taxable sales and transit performance. Disbursement of funds takes place upon the County Auditor receiving allocation Although the Secretary of Business, instructions from SCAG and Transportation and Housing has disbursement instructions from LACMTA. designated the Southern California Association of Governments as the The County Auditor is responsible for Transportation Planning Agency to maintaining the LTF and STA funds, administer these funds, the LACMTA is obtaining audits of these funds, and the administrator pursuant to an MOU issuing payments from these funds. between the former LACTC and SCAG to Other responsibilities include preparation carry out the required provisions of the of annual revenue estimates for TDA. apportionments and the submission of annual trust fund audits. LACMTA is responsible for the overall administration of the TDA Local Technical Advisory Committee – PUC Transportation Fund for Los Angeles 130105 County. It approves claims that conform The LACMTA appoints a Technical to the Regional Transportation Plan and Advisory Committee of representatives the Regional Transportation Improvement from all of the transit operators, all of the Program and that are in compliance with cities and the county, and the Department legal and administrative requirements. of Transportation, and may appoint any Responsibilities include: other such advisory committees as it  Calculate and publish annual Local deems necessary. Transportation Fund apportionments.  Issue reports on LTF activity. Transportation Business Advisory Council  Prepare and publish TDA guidelines. – PUC 130051.19  Review and evaluate claims. 29

LACMTA...leading the nation in safety, mobility and customer satisfaction. Introduction to the Los Angeles County Metropolitan Transportation Authority ______The LACMTA is required to have Zones – PUC 130051.12, 130051.24 and Transportation Business Advisory Council 130261. to advise it on matters regarding the Approval of transportation zones is disadvantaged business enterprise exclusive responsibility of the LACMTA program to enable the authority to meet or Board. exceed women and minority business “In determining the cost-effectiveness of enterprise participation goals. Members any proposed transportation zone, the of the council are selected by the authority authority may not approve or disapprove a include representatives of professional transportation zone based upon organizations and other groups, which consideration of rates of wages and other advocate on behalf of greater participation forms of compensation or hours and of women and minority business working conditions of employees of the enterprises in public contracts. The proposed transportation zone. Any chairperson of the authority or his or her determination of efficiencies that may be designee meets with the council and derived from the approval of a considers its recommendations. The transportation zone shall include authority provides adequate staff support consideration of maintaining the for the council. prevailing rate of wages, hours, and other terms and conditions of employment Unified Public Transportation System – contained in current collective bargaining PUC 99220-99222 agreements applicable to the authority as This section attempts to clarify the roles required under subdivision (d) of Section and responsibilities of the former SCRTD 130051.11. and LACTC. The LACMTA now assumes both roles. “The Legislature recognizes A proposed transportation zone is not that in the Southern California Rapid required to demonstrate lower operating Transit District a unique factual situation costs than those of the existing operator or exists where several municipal bus operators of the service to be transferred to systems are providing essential local the zone, but shall demonstrate that the transportation services within the net cost will not be greater than the operating territory of the district, which current service.” was created by the Legislature to provide area-wide coordinated public Section 130051.24 provides additional transportation services. Within the detail on the process to be followed in Southern California Rapid Transit District, forming transportation zones and with as with all transportation service special emphasis on collective bargaining improvements in the County of Los agreements. Angeles, the Los Angeles County Transportation Commission shall be the governmental entity responsible to establish a unified or officially coordinated public transportation system as part of the comprehensively planned development of the urban area.”

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LACMTA...leading the nation in safety, mobility and customer satisfaction.