City of Culver City, California
Agenda Item Report
Meeting Date: 01/24/2011 Item Number: C-7
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution Authorizing the Execution
of the Certifications and Assurances for the Public Transportation Modernization,
Improvements and Service Enhancement Account Bond Program
Contact Person/Dept.:
Crystal Alexander, Transportation
Phone Number: 310-253-6543
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [x] Date: _______________
Public Notification): (E-Mail) Meetings and Agendas – City Council (1/19/11); (E-Mail)
Ongoing Topics – Culver CityBus (1/19/11)
Department Approval:
Art Ida (xx/xx/xx)
City Attorney Approval:
Carol Schwab (by H. Baker) (01/18/11)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (01/19/11)
City Manager Approval:
John M. Nachbar (01/19/11)
RECOMMENDATION:
Staff recommends the City Council adopt a Resolution authorizing the execution of
the certifications and assurances for the Public Transportation Modernization,
Improvements and Service Enhancement Account (PTMISEA) Proposition 1B Bond
Program.
BACKGROUND:
The California State Treasurer sold bonds on November 23, 2010. However, the
amount being allocated to the PTMISEA Prop 1B Program for transportation projects
is considerably less than anticipated. Based on the allocation requests processed
prior to the November bond sale, the projected need was $350 million for PTMISEA.
Although the exact amount available to the PTMISEA program is still being
determined, the $77 million now expected compared to the $350 million originally
requested means the sales were not at a level high enough to fund all of the pending
PTMISEA allocation requests. Criteria are being developed to determine how the
limited funds should be distributed to various transit agencies statewide.
To meet State Auditor requirements, CalTrans’ Division of Mass Transportation has
updated their guidelines and developed a Certifications and Assurances document
(see attachment). Beginning in January 2011, each PTMISEA Project Sponsor will
be required to sign the Certification and Assurances document prior to receiving an
allocation of Fiscal Year 2010/2011 funds or later. City of Culver City, California
Agenda Item Report
DISCUSSION:
The Certification and Assurances document contains general conditions of the
PTMISEA program, which are already stated in the guidelines, as well as some
additional cost principles and record retention requirements that are standard for
other State funded projects. This level of accountability is becoming standard for
grant funded projects. Each agency only needs to sign and submit the document
once for the remainder of the PTMISEA program.
The City must return a signed copy of the document, along with the City Council
Resolution, by February 15, 2011.
The State Controller’s Office will be sending out the annual letter identifying each
agencies’ formulated share in the next few weeks. CalTrans will then begin
accepting new allocation requests using the remaining balances from Fiscal Year
2008/2009 and Fiscal Year 2009/2010, and beginning to use the Fiscal Year
2010/2011 funds.
FISCAL ANALYSIS:
The financial impact to the Transportation Department is substantial. Presently,
funding requests of $1,406,824 for Fiscal Year 2007/2008 through Fiscal Year
2009/2010 were made for purchase of twenty new CNG transit buses and for partial
payment of the Expo Light Rail Aerial Station. As is typical for Transportation
Department capital projects, matching fund sources from other federal, state and
local funds will be applied to these projects as well. PTMISEA requests for Fiscal
Year 2010/2011 through Fiscal Year 2016/2017 are estimated to be greater than
$2.5 million to fund future CNG bus purchases and transit modernization projects.
ATTACHMENTS:
A. Proposed Resolution
B. Certifications and Assurances Document
MOTION:
That the City Council:
Adopt a Resolution authorizing the execution of the certifications and assurances
for the PTMISEA Proposition 1B Bond Program.
MEETING DATE:
AGENDA ITEM:
1 /24/1 1
Authorizing the execution of the certifications and
assurances for the Public Transportation Modernization,
Improvement, and Service Enhancements Account Bond
Program.
ATTACHMENTS
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1. Resolution
2. Certifications and Assurances Agreement 1
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RESOLUTION NO. 2011-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, AUTHORIZING THE
EXECUTION OF THE CERTIFICATIONS AND
ASSURANCES FOR THE PUBLIC TRANSPORTATION
MODERNIZATION, IMPROVEMENT, AND SERVICE •
ENHANCEMENT ACCOUNT BOND PROGRAM
WHEREAS, the City of Culver City is an eligible project sponsor and may
receive state funding from the-Public Transportation Modernization, Improvement, and
Service Enhancement Account (PTMISEA) now or sometime in the future for transit
projects; and
WHEREAS, the statutes related to state-funded transit projects require a •
local or regional implementing agency to abide by various regulations; and
WHEREAS, Senate Bill 88 (2007) named the Department of
Transportation (Department) as the administrative agency for the PTMISEA; and
WHEREAS, the Department has developed guidelines for the purpose of
administering and distributing PTM1SEA funds to eligible project sponsors (local
agencies); and
WHEREAS, the City of Culver City wishes to delegate the authority to
execute these documents and any amendments thereto to the Transportation Director.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
1. That the City, as the fund recipient, agrees to comply with all
conditions and requirements set forth in the Certification and Assurances document and
applicable statutes, regulations and guidelines for all PTIVIISEA funded transit projects.
-1- APPROV • TO FID °M:
f
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OL A. SCHWAB
Attorney
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2. The Transportation Director is hereby authorized to execute all
required documents of the PTMISEA program and any Amendments thereto with the
California Department of Transportation.
3. The Mayor, or presiding officer, is hereby authorized to affix his
signature to this Resolution signifying its adoption and the City Clerk, or his duly
appointed deputy is directed to attest thereto.
4. This Resolution is effective upon adoption.
APPROVED and ADOPTED this day of , 2011.
CHRISTOPHER ARMENTA, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk
A11-00036
-2- City of Culver City
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Public Transportation Modernization, Improvement, and Service
Enhancement Account (PTMISEA) Bond Program
Certifications and Assurances
Project Sponsor: Culver CityBus
Effective Date of this Document: Date Month, 20xx
The California Department of Transportation (Department) has adopted the following
certifications and assurances for the Public Transportation Modernization, Improvement,
and Service Enhancement Account (PTMISEA) bond program. As a condition of the
receipt of PTMISEA bond funds, project sponsors must comply with these terms and
conditions.
A. General
(1) The project sponsor agrees to abide by the current PTMISEA Guidelines
(2) The project sponsor must submit to the Department a PTMISEA Program
Expenditure Plan, listing all projects to be funded for the life of the bond, including
the amount for each project and the year in which the funds will be requested.
(3) The project sponsor must submit to the Department a signed Authorized Agent form
designating the representative who can submit documents on behalf of the project
sponsor and a copy of the board resolution appointing the Authorized Agent.
B. Project Administration
(1) The project sponsor certifies that required environmental documentation is complete
before requesting an allocation of PTMISEA funds. The project sponsor assures that
projects approved for PTMISEA funding comply with Public Resources Code §
21100 and § 21150.
(2) The project sponsor certifies that PTMISEA funds will be used only for the transit
capital project and that the project will be completed and remains in operation for its
useful life.
(3) The project sponsor certifies that it has the legal, financial, and technical capacity to
carry out the project, including the safety and security aspects of that project. City of Culver City
Page 2
(4) The project sponsor certifies that they will notify the Department of pending
litigation, dispute, or negative audit findings related to the project, before receiving an
allocation of funds.
The project sponsor must maintain satisfactory continuing control over the use of
project equipment and facilities and will adequately maintain project equipment and
facilities for the useful life of the project.
(6) Any interest the project sponsor earns on PTMISEA funds must be used only on
approved PTMISEA projects.
The project sponsor must notify the Department of any changes to the approved
project with a Corrective Action Plan (CAP).
(8) Under extraordinary circumstances, a project sponsor may terminate a project prior to
completion. In the event the Project Sponsor terminates a project prior to completion,
the Project Sponsor must (1) contact the Department in writing and follow-up with a
phone call verifying receipt of such notice; (2) pursuant to verification, submit a final
report indicating the reason for the termination and demonstrating the expended funds
were used on the intended purpose; (3) submit a request to reassign the funds to a new
project within 180 days of termination.
(9) Funds must be encumbered and liquidated within the time allowed in the applicable
budget act.
C. Reporting
(1) Per Government Code § 8879.55, the project sponsor must submit the following
PTMISEA reports:
a. Semi-Annual Progress Reports by February 15 th and August 15 th each year.
b. A Final Report within six months of project completion.
c. The annual audit required under the Transportation Development Act (TDA),
to verify receipt and appropriate expenditure of PTMISEA bond funds. A
copy of the audit report must be submitted to the Department within six
months of the close of the year (December 31) each year in which PTMISEA
funds have been received or expended.
D. Cost Principles
(1) The project sponsor agrees to comply with Title 2 of the Code of Federal Regulations
225 (2 CFR 225), Cost Principles for State and Local Government, and 49 CFR, Part
18, Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments.
(5)
(7) City of Culver City
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(2) The project sponsor agrees, and will assure that its contractors and subcontractors will
be obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR,
Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to
determine the allowability of individual project cost items and (b) those parties shall
comply with Federal administrative procedures in accordance with 49 CFR, Part 18,
Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments. Every sub-recipient receiving PTMISEA funds as a
contractor or sub-contractor shall comply with Federal administrative procedures in
accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments.
Any project cost for which the project sponsor has received payment that are
determined by subsequent audit to be unallowable under 2 CFR 225, 48 CFR,
Chapter 1, Part 31 or 49 CFR,Part 18, are subject to repayment by the project
sponsor to the State of California (State). Should the project sponsor fail to reimburse
moneys due to the State within thirty (30) days of demand, or within such other
period as may be agreed in writing between the Parties hereto, the State is authorized
to intercept and withhold future payments due the project sponsor from the State or
any third-party source, including but not limited to, the State Treasurer and the State
Controller.
E. Record Retention
The project sponsor agrees, and will assure that its contractors and subcontractors
shall establish and maintain an accounting system and records that properly
accumulate and segregate incurred project costs and matching funds by line item for
the project. The accounting system of the project sponsor, its contractors and all
subcontractors shall conform to Generally Accepted Accounting Principles (GAAP),
enable the determination of incurred costs at interim points of completion, and
provide support for reimbursement payment vouchers or invoices. All accounting
records and other supporting papers of the project sponsor, its contractors and
subcontractors connected with PTMISEA funding shall be maintained for a minimum
of three (3) years from the date of final payment and shall be held open to inspection,
copying, and audit by representatives of the State and the California State Auditor.
Copies thereof will be furnished by the project sponsor, its contractors, and
subcontractors upon receipt of any request made by the State or its agents. In
conducting an audit of the costs claimed, the State will rely to the maximum extent
possible on any prior audit of the Project Sponsor pursuant to the provisions of
federal and State law. In the absence of such an audit, any acceptable audit work
performed by the project sponsor's external and internal auditors may be relied upon
and used by the State when planning and conducting additional audits.
(2) For the purpose of determining compliance with Title 21, California Code of
Regulations, Section 2500 et seq., when applicable, and other matters connected with
(3)
( 1 ) City of Culver City
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the performance of the project sponsor's contracts with third parties pursuant to
Government Code § 8546.7, the project sponsor, its contractors and subcontractors
and the State shall each maintain and make available for inspection all books,
documents, papers, accounting records, and other evidence pertaining to the
performance of such contracts, including, but not limited to, the costs of
administering those various contracts. All of the above referenced parties shall make
such materials available at their respective offices at all reasonable times during the
entire project period and for three (3) years from the date of final payment. The
State, the California State Auditor, or any duly authorized representative of the State,
shall each have access to any books, records, and documents that are pertinent to a
project for audits, examinations, excerpts, and transactions, and the project sponsor
shall furnish copies thereof if requested.
(3) The project sponsor, its contractors and subcontractors will permit access to all
records of employment, employment advertisements, employment application forms,
and other pertinent data and records by the State Fair Employment Practices and
Housing Commission, or any other agency of the State of California designated by
the State, for the purpose of any investigation to ascertain compliance with this
document.
F. Special Situations
(1) A project sponsor may lend its unused funds from one year to another project sponsor
for an eligible project, for maximum fund use each fiscal year (Julyl — June 30). The
project sponsor shall collect no interest on this loan.
(2) Once funds have been appropriated in the budget act, a project sponsor may begin a
project with its own funds before receiving an allocation of bond funds, but does so at
its own risk.
(3) The Department may perform an audit and/or request detailed project information of
the project sponsor's PTMISEA funded projects at the Department's discretion at any
time prior to the completion of the PTMISEA program.
I certify all of these conditions will be met.
City of Culver City
BY:
Art Ida, Transportation Director, Culver CityBus City of Culver City
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ATTACHMENT I
(INSERT Agency Board Resolution approving this document)