City of Culver City, California
Agenda Item Report
Meeting Date: 05/28/13 Item Number: A-6
CITY COUNCIL AGENDA ITEM: Discussion Regarding Potential Deobligation of
Metro Funds for the Downtown Real Time Motorist Information System Project and
Direction to the City Manager Related Thereto.
Contact Person/Dept.:
J. Christopher Evans/PW
Phone Number:
(310) 253-5621
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (05/21/2013).
Department Approval:
Charles D. Herbertson (05/16/13)
City Attorney Approval:
Carol Schwab (by H. Baker) (05/21/13)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (05/21/13)
City Manager Approval:
John M. Nachbar (05/21/13)
RECOMMENDATION:
Staff recommends the City Council discuss the potential deobligation of Metro Grant
Funds for the Real Time Motorist Information System Project (Project) and direct the
City Manager as deemed appropriate.
BACKGROUND:
Given the current design, this Project would utilize dynamic message signs (DMS)
located in the downtown and Washington/National area to communicate real-time
parking availability information to motorists. The signs will display the availability of
parking in the downtown public parking structures and the proposed parking
structure adjacent to the Expo Light Rail Station. The Project will also include
parking space availability signage at the entrance to each parking structure and at
strategic locations inside the parking structures.
On May 7, 2013 the City received a Notice of Potential Deobligation of Project
Funding (see Attachment 1) from the Los Angeles County Metropolitan
Transportation Authority (“Metro”). Metro administers the grant that provides 80%
($858,000) of the project funds from a Federal Congestion Management and Air
Quality (CMAQ) grant, with the remaining 20% ($214,000) of the required local
match provided by former Redevelopment Agency funds. Due to the potential loss
of Redevelopment Agency matching funds and the fact that the Project is about to
exceed the completion date of June 30, 2013, Metro is requesting that the City
identify other local matching funds and appeal for an extension of the Project
completion date or have the Project grant fund “deobligated” and assigned to
another grantee.
City of Culver City, California
Agenda Item Report
City engineering consultant, Kimley-Horn, with input from staff and City Council has
finalized the Project design and specifications. Due to the loss of the former
Redevelopment Agency matching funds and ongoing negotiations with the State
Department of Finance (DOF) over control of the former Redevelopment Agency
owned downtown parking structures and Washington/National site, proceeding with
the project at this time has significant potential negative consequences for the City,
the two most pressing of which are (1) the DOF’s ultimate denial of the matching
funds and (2) the State’s potential “clawback” (seizure) of the parking lots.
Therefore, staff has significant concerns about proceeding with the Project at this
time.
DISCUSSION:
To facilitate discussion staff proposes the following options:
Option 1: Direct staff to appeal the deobligation of Project grant funds (if necessary),
request a two year extension for completion of the Project to June 30,
2015, and commit Measure R funds as the local match should former
Redevelopment Agency funding not be restored to the Project.
To date $84,740 has been expended to complete the design of the
Project. Of that amount, 20% or $16,948 has been funded through former
Redevelopment Agency matching funds. The City would need to commit
$197,052 ($214,000 - $16,948 = $197,052) to meet the grant’s required
local match.
Option 2: Direct staff to not appeal deobligation of grant funds and allow Project
funding to lapse.
There is the possibility that DOF may not approve the use of former Redevelopment
Agency funding that is earmarked for this Project. City discussions with the DOF are
now underway; however a final decision is not expected for at least three to four
months. Also, as the City Council is aware, the DOF has been issuing contradictory
and unfavorable decisions throughout the State regarding the application of former
Redevelopment Agency funding. This has created an environment of significant
uncertainty as any former Redevelopment Agency funds that are disallowed by the
DOF subject the City to having to fund the matching funds or risk withholding by the
State of the City’s future property and sales tax revenues.
In addition, should the State “clawback” (seize) the parking structures and the
Washington/National site, then this Project may no longer be desirable.
To appeal the deobligation of grant funds, City attendance and presentation may be
required at the June 5, 2013 Metro – Transportation Advisory Committee (TAC) City of Culver City, California
Agenda Item Report
meeting. The TAC is a recommending body and if they do not grant an extension,
the City has another opportunity to appeal the deobligation at the Metro Board
meeting. Should the City Council determine to authorize the use of other funds
(Measure R, Gas Tax or General Fund) for the required matching funds, Metro has
indicated that they will remove the project from the deobligation list.
Staff requests that City Council discuss the desirability to proceed with this Project
given the significant uncertainty created by the DOF and direct the City Manager as
deemed appropriate.
FISCAL ANALYSIS:
The total cost of design and installation of the Project is estimated to be $1,072,000.
The grant requires applicants to provide 20% funding of the total cost. The former
Redevelopment Agency was to contribute $214,000 ($858,000 + $214,000 =
$1,072,000) as the local match. To date, former Redevelopment Agency funds have
provided $16,948 of Project design costs. In order to fund the remaining local
match, the City would need to commit $197,052 ($214,000 - $16,948 = $197,052) to
meet its grant required local match. In the event the City Council determines to
proceed with the project, Staff recommends that the City Council allocate future
Metro Measure R funds for the required 20% matching funds.
ATTACHMENT:
1. Notice of Potential Deobligation of Project Funding, dated May 7, 2013
MOTIONS:
That the City Council:
Discuss the Downtown Real Time Motorist Information System Project and direct
the City Manager as deemed appropriate.
MEETING DATE: 5/28113
AGENDA ITEM: CITY COUNCIL AGENDA ITEM: Discussion Regarding
Potential Deobligation of Metro Funds for the Downtown
Real Time Motorist Information System Project.
ATTACHMENTS
Item Description
1. Notice of Potential Deobligation of
1 - 2
Project Funding, dated May 7, 2013 Los Angeles County
One Gateway Plaza
213.922.2000 Tel
Metropolitan Transportation Authority
Los Angeles, CA 90012-2952
.4?
Metro
May 7, 2013
Mr. John Nachbar
City Manager
City of Culver City
9770 Culver Blvd.
Culver City, CA 90232
RE: Notice of Potential Deobligation of Project Funding
Dear Mr. Nachbar:
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Over the last year, we have been working with City staff on the below listed Call for Projects
project that committed Community Redevelopment Agency (CRA) funds as local match. In your
April 2012 letter, you committed to completing This project with former CRA bond funds as local
match and no alternate funds needed to be identified as the new local match. Recently, your staff
notified us that the usage of CRA bond funds as the local match is under review by the State.
This project is now subject to deobligation by our Board through the annual Call for Projects
Recertificationpeobligation process in July 2013.
Project
ID #
Project Name Deobligated
Amount
(000')
Reason for Deobligation
Fl 717
Real-Time Motorist Parking
Information System
Demonstration $600 Did not meet Lapsing Policy
Should the City wish to appeal the potential deobligation of funding, an opportunity will be
given to address LACMTA's Technical Advisory Committee (TAC) at its
Wednesday, June 5,
2013 meeting. The meeting will be held at our Headquarters' Buildingin the William
Mulholland Conference Room on the 15 th floor. At this meeting, TAC will make
recommendation(s) regarding the projects subject to deobligation for staff consideration.
Sponsors wishing to appeal are required to complete the attached Deobligation Appeal Project
Fact Sheet and submit the Fact Sheet to LACMTA by close of business Tuesday, May 28, 2013,
so that TAC members will have an opportunity to review it prior to the meeting. We will not
accept additional handouts at the meeting. The Deobligation appeals will be on a timed
schedule. Project sponsors will have an opportunity to make a three-minute presentation,
followed by a two-minute question and answer session. Failure to appear may result in the
deobligation of funds. Should the City determine funds are available prior to May 28, 2013, the
project may be removed from the deobligation list
To schedule an appointment to address the TAC, please call Veronica Guzman at (213) 922-
3038 or email at GuzmanVmetro.net upon receipt of this letter. The 2013 Call for Projects
Recertification/Deobligation is scheduled for Board adoption in July 2013. If you have any questions or need additional information, please call Fanny Pan, TAC chairperson at (213)
922-3070_
Sincerely,
\fiatatui)
Renee Berlin
Executive Officer, Transit Corridors/Systemwide Planning
cc: Sol Blumenfeld
Todd Tipton
Christopher Evans