HomeMy WebLinkAboutC-5 Staff Report - Metro Exchange AgreementCONSENT ITEM
C-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: DECEMBER 19, 2022
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE AN EXCHANGE
AGREEMENT OF FEDERAL SURFACE TRANSPORTATION PROGRAM-LOCAL
AND HIGHWAY INFRASTRUCTURE PROGRAM FUNDS WITH THE LOS
ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
BACKGROUND:
Every Federal Fiscal Year (October 1 – September 30) the Los Angeles County Metropolitan
Transportation Authority (LACMTA) apportions Surface Transportation Funds (STP-L) to eighty-nine
local agencies within Los Angeles County. The City currently has a balance of $971,834 in STP-L
Federal funds for use on transportation projects.
In 2021 the City was provided an additional $231,475 through Metro as part of the Coronavirus
Response and Relief Supplemental Appropriations (CRRSA) Act. The CRRSA funds were dispersed to
local agencies across Los Angeles County to support existing capital projects. The CRRSA funds the
City received are Federal Highway Infrastructure Programs (HIP) funds and must follow strict federal
requirements.
The following recommended action allows the City to exchange these federal transportation funds with
local LACMTA funds for immediate use on upcoming City capital improvement projects.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1)Authorize the City Manager to execute an Exchange Agreement with the Los Angeles County
Metropolitan Transportation Authority to exchange the City’s Federal Surface Transportation
Program-Local and Highway Infrastructure Programs fund balances for local return dollars; and
2)Appropriate $940,000 of LACMTA funds for the Arrow Highway Median Installation Project and
$239,242 of LACMTA funds for the Foothill Boulevard Pavement Rehabilitation Project.
APPROVED SPECIAL
CITY COUNCIL
12/19/2022
Los Angeles County Metropolitan Transportation Authority Exchange Agreement
December 19, 2022
Page 2
ANALYSIS:
Every Federal Fiscal Year (October 1 – September 30) the Los Angeles County Metropolitan
Transportation Authority (LACMTA) apportions Surface Transportation Funds (STP-L) to eighty-nine
local agencies within Los Angeles County. The City currently has a balance of $971,834 in STP-L
Federal funds for use on transportation projects.
In 2021 the City was provided an additional $231, 475 through Metro as part of the Coronavirus
Response and Relief Supplemental Appropriations (CRRSA) Act. The CRRSA funds were dispersed to
local agencies across Los Angeles County to support existing capital projects. The CRRSA funds the
City received are Federal Highway Infrastructure Programs (HIP) funds and must follow strict federal
requirements.
Both STP-L and HIP Funds have numerous federal requirements, regulations, and restrictions such as:
- Project location must be part of the State’s functional classified system (i.e. major arterials and
collectors)
- Extensive submittals and approvals at every phase of the Project which include planning,
conceptual design, engineered design, bidding, construction, invoicing, and project closeout.
These approvals are required by the California Department of Transportation (Caltrans), the
Federal Highway Administration (FHWA), and Federal Transit Administration (FTA).
These submittals and approvals have a significant impact on overhead costs related to every phase of the
project as well as staff time.
Expenditures of LACMTA funds retain the following STP-L regulations and restrictions:
- Project location must be part of the State’s functional classified system (i.e. major arterials and
collectors)
- Project Type must be:
o Repaving/Reconstruction/Rehabilitation
o Transit capital projects
o Bicycle and pedestrian facilities
o Safety improvements and hazard elimination
o Transportation enhancement activities and control measures
o Bridges on any federal aid route or local street
The LACMTA funds have a five-year spending limitation per the exchange agreement and will be
programmed into upcoming capital improvement projects. Staff is recommending that the City Council
appropriate $940,000 of LACMTA funds for the Arrow Highway Median Installation Project and
$239,242 of LACMTA funds for the Foothill Boulevard Pavement Rehabilitation Project.
Los Angeles County Metropolitan Transportation Authority Exchange Agreement
December 19, 2022
Page 3
FISCAL IMPACT:
Staff is recommending that the $971,834 in STP-L funds and $231,475 in HIP funds be exchanged for
$1,179,242 in LACMTA Local Transportations Funds. The $24,067 difference is the 2% processing and
administrative fee that LACMTA charges for the exchange, which is substantially less than the value of
City staff hours and overhead costs that would be required to process the extensive federal
documentation required by federally funded projects. Upon Council approval, staff will prepare a
budget amendment to update the fund exchange (STPL and LACMTA Local Transportation Funds) and
add the budget of $231,475 from CRRSA.
Prepared by: Reviewed and Approved by:
Robert Delgadillo, P.E. Sergio Gonzalez
Director of Public Works/City Engineer City Manager
Fiscal Review by:
Talika M. Johnson
Director of Administrative Services
Attachment:
1) Exchange Agreement
2) Automated Clearing House (ACH)
3) Statement of Work
Agreement Number 9200000000HIP2140
1
EXCHANGE AGREEMENT AND ASSIGNMENT OF FEDERAL SURFACE
TRANSPORTATION PROGRAM-LOCAL AND HIGHWAY INFRASTRUCTURE
PROGRAMS FUNDS
This Exchange Agreement and Assignment of Federal Surface Transportation Program-Local and
Highway Infrastructure Programs Funds ("AGREEMENT"), is made and entered into as of July
1, 2022, by and between the City of Azusa ("CITY") and the Los Angeles County Metropolitan
Transportation Authority ("LACMTA").
RECITALS:
CITY is eligible for and has available Federal Surface Transportation Program-Local ("STP-L
Funds") and Highway Infrastructure Programs funds ("HIP Funds").
A.CITY desires to exchange $971,834 of CITY's STP-L Funds ("STP-L Funds Balance") and
its total allocation of $231,475 of CITY's HIP Funds ("HIP Funds Balance") that LACMTA
approved on April 22, 2021 for a like total amount of $1,203,309 of LACMTA Local
Transportation Funds ("LACMTA Funds").
B.LACMTA is willing to exchange $1,203,309 in LACMTA Funds for a like total amount of
CITY's STP-L Funds and CITY's HIP Funds subject to the terms and conditions contained
herein.
C.An exchange of CITY's STP-L Funds and CITY's HIP Funds with LACMTA Funds is
beneficial to and in the general interest of CITY and LACMTA.
NOW THEREFORE, in consideration of the mutual benefits to be derived by CITY and
LACMTA, and of the promises contained herein, it is hereby agreed as follows:
AGREEMENT:
1.CITY hereby assigns to LACMTA $971,834 of CITY's STP-L Funds and $231,475
of CITY's HIP Funds. LACMTA shall be authorized to deduct such amounts from CITY's
STP-L Funds Balance and CITY's HIP Funds Balance, respectively. This assignment shall be
automatically effective upon full execution of this AGREEMENT without the necessity of
the execution, delivery or recording of any further instrument whatsoever. Notwithstanding
the foregoing, at LACMTA's request, CITY shall execute and deliver such documents and
instruments as may be required to evidence such assignment of STP-L Funds and HIP Funds.
2.LACMTA hereby accepts CITY's assignment of CITY's STP-L Funds and CITY's HIP
Funds for use on federal-aid eligible project(s), to be determined by LACMTA in its sole and
absolute discretion.
Attachment 1
Agreement Number 9200000000HIP2140
2
3. Upon receipt of (i) a fully executed AGREEMENT, (ii) CITY's written certification of
the amounts of CITY's STP-L Funds Balance and CITY's HIP Funds Balance, as defined
herein, which CITY's STP-L Funds Balance and CITY’s HIP Funds Balance show that
CITY has sufficient STP-L Funds and HIP Funds to meet its obligations hereunder, and (iii)
LACMTA's deduction of CITY's STP-L Funds and CITY's HIP Funds as provided in
paragraph 1 above, LACMTA shall pay CITY $1,179,242 of LACMTA Funds which
includes the deduction for the processing fee described in paragraph 5 below. For purposes
of this AGREEMENT, CITY's "STP-L Funds Balance" and CITY's "HIP Funds Balance"
shall mean the amounts of funds contained in CITY's STP-L Funds and CITY's HIP Funds
accounts as of the date that this AGREEMENT is fully executed, which include CITY's
apportionment share of FY22 STP-L Funds and share of HIP Funds from the federal
Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) that was
enacted on December 27, 2020. If the STP-L Funds Balance and HIP Funds Balance become
insufficient to satisfy CITY's exchange obligations hereunder, CITY hereby authorizes
LACMTA to deduct from CITY's future balance of STP-L funds until LACMTA has in the
aggregate received the amount of CITY's STP-L Funds and CITY's HIP Funds specified in
paragraph 1 above.
4. CITY must complete and submit an Automated Clearing House (ACH) form (Exhibit
A) through LACMTA's website to allow LACMTA to make disbursements electronically.
Disbursements via ACH will be made at no cost to CITY. If electronic disbursements are
not the preferred method of disbursement, CITY may request an exception in writing.
5. CITY shall pay LACMTA a two-percent (2%) processing and administrative fee (the
"Processing Fee") in connection with the exchange contemplated by this AGREEMENT.
The Processing Fee shall be assessed against the total amount of LACMTA Funds payable
to CITY. CITY hereby authorizes LACMTA to deduct the Processing Fee from the amount
LACMTA is to pay CITY hereunder.
6. CITY shall expend the LACMTA Funds on an STP-L and HIP Eligible Project and by
the Lapsing Date, consistent with the Statement of Work, Schedule and Budget provided in
Exhibit B. For the purposes of this AGREEMENT, the "Lapsing Date" shall mean the date
that is three (3) years from the date that this AGREEMENT is fully executed. Any
LACMTA Funds not expended by the Lapsing Date shall lapse and be returned to LACMTA
within thirty (30) days of the Lapsing Date for further programming to third parties as
LACMTA determines in its sole discretion.
A. For the purposes of this AGREEMENT, the term "Eligible Project" shall mean
the transportation activities described in Exhibit B that: i) would normally qualify
under Section 133(b) of Title 23, U.S.C: or ii) are for costs related to preventive
maintenance, routine maintenance, debt service payments, availability payments,
operations, personnel (including salaries of employees and those employees who
have been placed on administrative leave, or contractors), and coverage for other
revenue losses due to the coronavirus pandemic. Any other applicable federal
regulations and standards related to procurement and project delivery issues may
be substituted with applicable state and local regulations, standards, and policies.
Agreement Number 9200000000HIP2140
3
B. The term "expend" as used in Section 6 shall mean "encumbered by an awarded
contract or paid for an eligible transportation activity".
C. If the LACMTA Funds have lapsed and CITY has not returned all or a portion of
the lapsed LACMTA Funds to LACMTA, then CITY shall be considered to be in
default and agrees that such outstanding payments shall be paid from CITY funds
in the following priority: first, from any of CITY's unobligated HIP Funds
Balance, then from CITY's STP-L Funds Balance, then from CITY's Proposition
A local return funds, then from CITY's Proposition C local return funds, then
from CITY's Measure R local return funds, and then from CITY's Measure M
local return funds. If CITY is in default hereunder, in addition to all rights and
remedies available to LACMTA at law or in equity and without further notice or
ability to cure by CITY, CITY hereby authorizes LACMTA to withhold the
applicable HIP, STP-L or local return funds in the amount needed to satisfy the
outstanding amount of lapsed LACMTA Funds due and owing to LACMTA prior
to LACMTA transferring the balance of such funds to the CITY in accordance
with the applicable state laws or ordinances.
7. CITY must use the LACMTA Funds in the most cost-effective manner. If CITY
intends to use a consultant or contractor to implement all or part of the STP-L and HIP
Eligible Project, LACMTA requires that such activities be procured in accordance with
CITY's contracting procedures and be consistent with State law as appropriate. CITY will
also use the LACMTA Funds in the most cost-effective manner when the LACMTA Funds
are used to pay "in-house" staff time. CITY staff or consultants with project oversight roles
may not award work to companies in which they have a financial or personal interest. This
effective use of funds provision will be verified by LACMTA through on-going project
monitoring and through any LACMTA interim and final audits.
8. LACMTA, and/or its designee, shall have the right to conduct audits of CITY's use of
the LACMTA Funds, as deemed appropriate, such as financial and compliance audits;
interim audits; pre-award audits, performance audits, and final audits. CITY agrees to
establish and maintain proper accounting procedures and cash management records and
documents in accordance with Generally Accepted Accounting Principles (GAAP). CITY's
records shall include, without limitation, any supporting evidence deemed necessary by
LACMTA to substantiate CITY's use of LACMTA Funds. These records must be retained
by CITY for five years following CITY's last use of the LACMTA Funds. CITY shall
reimburse LACMTA for any expenditure not in compliance with the Scope of Work and/or
not in compliance with other terms and conditions of this AGREEMENT. The eligibility of
costs for CITY's own expenditures submitted to LACMTA for the Eligible Project shall be
in compliance with Office of Management and Budget (OMB) Circular A-87 (relocated to
Title 2 in the Code of Federal Regulations, Subtitle A, Chapter II, part 225). The eligibility
of costs for CITY's contractors, consultants, and suppliers expenditures submitted to
LACMTA through CITY's Monthly Progress Reports and Quarterly Expenditures shall be in
compliance with OMB Circular A-87 (as relocated) or Federal Acquisition Regulation
(FAR) Subpart 31 (whichever is applicable). Findings of the LACMTA audit are final.
When LACMTA audit findings require CITY to return monies to LACMTA, CITY agrees to
Agreement Number 9200000000HIP2140
4
return the monies within thirty (30) days after the final audit is sent to CITY.
9. The terms of this AGREEMENT shall commence on the date that this AGREEMENT
is fully executed and shall terminate once CITY has expended all the LACMTA Funds and
all LACMTA audit and reporting requirements have been satisfied.
10. CITY shall fully indemnify, defend and hold LACMTA and its officers, agents, and
employees harmless from and against any liability and expenses, including, without
limitation, defend costs, any costs or liability on account of bodily injury, death or personal
injury of any person, or for damages of any nature whatsoever arising out of (i) a breach of
CITY's obligations under this AGREEMENT; or (ii) any act or omission of CITY or its
officers, agents, employees, contractors, or subcontractors in the use of the LACMTA
Funds.
11. LACMTA shall fully indemnify, defend and hold CITY and its officers, agents, and
employees harmless from and against any liability and expenses, including, without limitation,
defend costs, any costs or liability on account of bodily injury, death or personal injury of
any person, or for damages to or loss of risk of property, any environmental obligations, any
legal fees and any claims for damages of any nature whatsoever arising out of (i) a breach of
LACMTA's obligations under this AGREEMENT; or (ii) any act or omission of LACMTA
or its officers, agents, employees, contractors, or subcontractors in the use of CITY's STP-L
Funds and CITY's HIP Funds.
12. This AGREEMENT may be amended or modified only by mutual written consent of
LACMTA and CITY.
13. Any correspondence, communication, or contact concerning this AGREEMENT shall be
directed to the following:
CITY OF AZUSA
Robert Delgadillo, Director of Public Works/City Engineer
City of Azusa
213 E. Foothill Blvd.
Azusa, CA 91702
rdelgadillo@azusaca.gov
LACMTA
Michael Richmai
Senior Manager, Countywide Planning and Development
One Gateway Plaza (Mail Stop: 99-23-3)
Los Angeles, California 90012-2952
RichmaiM@metro.net
14. This AGREEMENT shall be interpreted and governed by the laws of the State of California.
15. This AGREEMENT constitutes the entire understanding between the parties with respect to
the subject matter herein.
Agreement Number 9200000000HIP2140
5
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by
their respective officers as of the date stated below.
LOS ANGELES COUNTY CITY OF AZUSA
METROPOLITAN TRANSPORTATION
AUTHORITY
By: By:
Stephanie N. Wiggins Sergio Gonzalez
Chief Executive Officer City Manager
APPROVED AS TO FORM: APPROVED AS TO FORM:
Dawyn R. Harrison Marco Martinez
Acting County Counsel City Attorney
By: By:
Deputy City Attorney
Agreement Number 9200000000HIP2140
Exhibit A
AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION
Attachment 2
Agreement Number 9200000000HIP2140
Exhibit A
AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION
Agreement Number 9200000000HIP2140
Exhibit A
AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION
Agreement Number 9200000000HIP2140
Exhibit B
STATEMENT OF WORK
Project Title: Street Improvements in the City of Azusa.
Arrow Highway Raised Median: The project will incorporate raised median islands with
doweled median curb, ADA compliant curb ramps, minor asphalt concrete paving to
address drainage, pavement resurfacing, landscape improvements, and signing & striping.
The improvements on Arrow Highway are from 500 feet west of Azusa Avenue to Citrus
Avenue.
Foothill Boulevard Pavement Rehabilitation: The project includes concrete
improvement, irrigation, landscape improvements, and signing & striping on Foothill
Boulevard from Orange Avenue to Alosta Avenue. Additional concrete improvements
on Alosta Avenue from Foothill Boulevard to Citrus Avenue are also part of this project.
Project Schedule
Arrow Highway Foothill Boulevard
Advertise November 2022 January 2023
Award Contract January 2023 March 2023
Start Construction February 2023 April 2023
Complete Construction June 2023 August 2023
Project Budget
Arrow Highway Foothill Boulevard TOTAL
LACMTA Funds* $940,000 $239,242 $1,179,242
Total Funding $940,000 $239,242 $1,179,242
*Net of 2% processing and administrative fee.
Attachment 3