City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve the exchange of Federal Surface
Transportation Funds (STPL) for flexible Los Angeles County Metropolitan
Transportation Authority STP-L Transportation Funds.
BACKGROUND/DISCUSSION:
The Federal Highway Reauthorization Bill became Federal law in 2005. A portion of
the highway bill provides local agencies allotments of federal transportation funds for
pavement rehabilitation projects. The Federal Highway Administration entrusts
Caltrans to manage these federal funds. In order to obligate the funds for
construction, agencies are required to identify a project and submit an application to
Caltrans. The preparation of the application is lengthy and can take many hours to
complete the process. After the federal funds are obligated for construction,
Caltrans’ project administration and closeout requirements are rigorous and take
considerable amount of staff and consultant time. Finally, the reimbursement and
audit process is lengthy and can take over one year to complete. The purpose of
these stringent requirements is to ensure that federal funds are not being
inappropriately used by agencies. These requirements have been in effect since the
1930’s.
The Los Angeles County Metropolitan Transportation Authority (Metro) has provided
an opportunity for agencies to exchange Federal STPL funds for flexible Metro STPL
funds. According to the attached agreement, the flexible Metro funds can only be
used on transportation capital projects as would be used for the federal funds,
however, without the federal procurement process. The Metro STPL funds then can
be used for street paving projects just as a state or local city funded project. Metro
Meeting Date: 11/10/08 Item Number: C-5
AGENDA ITEM: Approval of an Exchange of Federal Surface Transportation
Program – Local Funds (STPL) for Flexible Los Angeles County Metropolitan
Transportation Authority STP-L Local Transportation Funds
Contact Person/Dept.: Mate Gaspar/PW Phone Number: 310-253-5602
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification: Master E-Mail Notification List on (November 5, 2008) and via e-mail
to Los Angeles County Metropolitan Transportation Authority on (November 5, 2008).
Department Approval:
Charles D. Herbertson 10/30/2008
City Attorney Approval:
Carol Schwab (by H. Baker) (11/05/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (11/05/08)
City Manager Approval:
Jerry B. Fulwood (11/05/08) City of Culver City, California
City Council Agenda Item Report
is requiring a 2% administrative fee be deducted from the funds when they are
exchanged. The Metro funds can be directly deposited to the City bank account in
several weeks.
The total amount of Federal STPL funds allotted to Culver City is $712,572. The
administrative charge of 2% is $14,251. The net amount of Metro STPL funds to be
exchanged to Culver City would therefore be $698,321.
Staff believes that the 2% administrative charge of $14,251 for the exchange would
be less costly than the aforementioned procurement process. Staff recommends
that the City Council approve the exchange of the federal STPL funds for Metro
STPL funds.
FISCAL ANALYSIS:
It is proposed that the funds be deposited in a new revenue account titled Metro
flexible STPL funds. This account will be created dependent upon City Council
action this evening. Staff will propose to spend these funds with a list of street
paving projects in February 2009.
ATTACHMENT:
1. Exchange agreement and assignment of federal surface transportation program
local funds.
MOTIONS:
1. Approve the exchange of Federal Surface Transportation Program – Local Funds
(STPL) for Flexible Los Angeles County Metropolitan Transportation Authority
STP-L Local Transportation Funds; and
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
MEETING DATE: 11/10/08
AGENDA ITEM: Approval to Exchange Federal Surface
Transportation Program - Local Funds (STPL) for
Flexible Los Angeles County Metropolitan
Transportation Authority STP-L Local
Transportation Funds
ATTACHMENTS
Pages|109| Exchange Agreement and Assignment of Federal Surface 1-4
Transportation Program - Local FundsMOU.STPLEXCC
Enclosure B
EXCHANGE AGREEMENT AND ASSIGNMENT OF FEDERAL SURFACE
TRANSPORTATION PROGRAM — LOCAL FUNDS
This Exchange Agreement and Assignment of Federal Surface Transportation Program —
Local Funds ("AGREEMENT"), is made and entered into as of October 8, 2008, by and
between Culver City (the "CITY") and the Los Angeles County Metropolitan
Transportation Authority ("LACMTA").
RECITALS:
A. CITY is eligible for and has available Federal Surface Transportation Program-
Local funds (the "STP-L Funds").
B. CITY desires to exchange $ 712,572 of CITY's STP-L Funds for a like amount of
LACMTA STP-L Local Transportation Funds (the "LACMTA Funds").
C. LACMTA is willing to exchange $ 712,572 in LACMTA Funds for a like amount
of CITY's STP-L Funds subject to the terms and conditions contained herein.
D. An exchange of CITY's STP-L 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 $ 712,572 of CITY'S STP-L Funds.
LACMTA shall be authorized to deduct such amount from CITY's STP-L Fund balance_
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.
2_ LACMTA hereby accepts CITY's assignment of CITY's STP-L Funds for use on
Federal-aid-eligible project(s), to be determined by LACMTA in its sole and absolute
discretion.
3. Upon receipt of (i) a fully executed AGREEMENT, (ii) CITY's written
certification of the amount of CiTY's STP-L Fund Balance, as defined herein, which
rITY's QTP-I Fund Balance shows that CITY has sufficient STP- T f---ids to meet its
obligations hereunder, and (iii) LACMTA's deduction of the CITY's STP-L Funds as|1010| 1MOU.STPLEXCC
provided in paragraph I above, LACMTA shall pay CITY $ 698,321of LACMTA Funds
which includes the deduction for the processing fee described in paragraph 5 below. For
purposes of this AGREEMENT, the CITY' s STP-L Fund Balance shall mean the amount
of funds contained in CITY's STP-L Fund account as of the date this AGREEMENT is
fully executed plus CITY's FY2009 apportionment share of STP-L Funds. If the STP-L
Fund Balance is insufficient to satisfy CITY's exchange obligations hereunder, CITY
hereby authorizes LACMTA to deduct from CITY's future STP-L Funds until LACMTA
has in the aggregate received the amount of CITY's STP-L Funds specified in paragraph
1 above.
4. LACMTA will make all disbursements electronically unless an exception is requested
in writing. CITY must complete an Automated Clearing House (ACH) form as provided in
Exhibit A. Disbursements via ACH will be made at no cost to CITY.
5. CITY shall pay LACMTA a two (2) percent processing and administrative fee
("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. The 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 STP-L Eligible Projects within three
(3) years from the date this Agreement is fully executed. For purposes of this
Agreement, STP-L Eligible Projects shall mean any transportation capital improvements
that would normally qualify for the STP-L program, provided however, any federal
regulations and standards relating to procurement and other project delivery issues that
might apply may be substituted with applicable state and local regulations, standards and
policies; and "expend" as used in this section shall mean that the LACMTA Funds have
been encumbered by an awarded contract.
7. LACMTA, and/or its designee, shall have the right to conduct audits of CITY'S use
of the LACMTA Funds to determine compliance with terms and conditions of this
AGREEMENT. CITY shall establish and maintain proper accounting procedures and cash
management records and documents in accordance with Generally Accepted Accounting
Principles (GAAP). CITY shall reimburse LACMTA for any expenditure not in
compliance with this AGREEMENT. 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 three years following
CITY's last use of the LACMTA Funds.
8. The term of this AGREEMENT shall commence on the date this AGREEMENT is
fully executed and, shall terminate once the CITY has expended all the LACMTA Funds
and all LACMTA audit and reporting requirements have been satisfied.
9. 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
2MOU.STPLEXCC
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.
10. 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.
11. This AGREEMENT may be amended or modified only by mutual written consent
of LACMTA and CITY.
12. Any correspondence, communication, or contact concerning this AGREEMENT
shall be directed to the following:
CITY:
LACMTA:
Los Angeles County Metropolitan Transportation Authority
One Gateway Plaza
Los Angeles, California 90012
Attn: Frank Flores
13. This AGREEMENT shall be interpreted and governed by the laws of the State of
California.
14. This AGREEMENT constitutes the entire understanding between the parties with
respect to the subject matter herein.|1010| 3MOU.STPLEXCC
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
executed by their respective officers as of the date stated below.
CITY:
[INSERT CITY NAME]
By: Name: Its:
Date: LACMTA:
Los Angeles County Metropolitan Transportation Authority
By: ROGER SNOBLE DATE
Chief Executive Officer
Approved as to form:
Raymond G. Fortner, Jr.
County Counsel
By:
DEPUTY|1013|