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HomeMy WebLinkAbout1991-09-24 - AGENDA REPORTS - SAN FERNANDO RD LACTC FUNDING (2)AGENDA REPORT City Manager Approval Item to be presented y: CONSENT CALENDAR L nnn M Harris o// DATE: September 24, 1991 SUBJECT: SAN FERNANDO ROAD LOS ANGELES COUNTY TRANSPORTATION COMMISSION (LACTC) FUNDING AGREEMENT DEPARTMENT: Community Development :U4IIeff*1flW1 The funding for the San Fernando Road project could be characterized as an epic tale. This State Highway has been high on Caltrans' list for improvement in order to facilitate the flow of traffic through the City. Unfortunately, State funding constraints have forestalled the completion of . these improvements. However, the need to widen this roadway was so important to the City that soon after incorporation the Council identified it as its top' priority project. In order to clarify the various phases of the improvements, we have attached a map showing the phases of construction that have been identified by Caltrans. The portion which is the subject of this agenda item are Phases III/IV which is the area between 15th Street and Drayton Street. Originally, the City had budgeted its Transportation Development Act (TDA) funds for the improvements included in Phases III/IV. Subsequently, we were advised that the LACTC would use some regional Federal -Aid -Urban (FAU) funds to assist the City and Caltrans in funding the widening project. However, these funds had been overprogrammed, and continued funding has been held up in Congress because of delays in enacting a continuation of the Surface Transportation Act which is typically used to fund federally -assisted projects. Since we had completed the plans for the project over six months ago and had just recently learned about this turnaround in the commitment for funding, we have been proceeding on our original funding proposal to use TDA monies. Since we received very good bids, approximately 30% below our original estimate, we currently have enough carryover and current TDA funds to proceed with construction of the project. The LACTC has been very supportive in identifying funds that could be used for the improvement of San Fernando Road. in that regard, the Commission took an action to use Proposition C interest money to replace the regional and local FAU funds which had been previously identified for the project. Although Prop C is currently in litigation, which will probably not be adjudicated for another 16 months, the Commission has been advised by its legal counsel that they are not restricted in utilizing the interest that is being earned from the collection of Prop C money for any purposes the Commission deems necessary. The Commission has approved approximately $6,000,000 in Proposition C interest money for the San Fernando project. In order to receive these funds, the City and the Commission must enter into an agreement stipulating the various commitments by .the Commission and the City. A co the agreement is attached.IF Agenda {tem: . SAN FERNANDO ROAD (LACTC) FUNDING AGREEMENT Page 2 The agreement would transfer $6,000,000 of Proposition C.interest money to the City in exchange for the City's commitment to the following: • The City would transfer any future regional and local FAU allocations up to $6,000,000 to the Commission. • The City would also agree to transfer any State/Local Transportation Partnership Program funds which would be eligible for the improvement of San Fernando Road. • The City would not receive the funds until April 1992 and in 12 equal installments of approximately $455,000 per month. Staff is recommending that the City Council approve the agreement and authorize: staff to proceed with the project using previously set-aside TDA funds in both the 1990/91 and 1991/92 fiscal year budgets. Provisions in the agreement for reimbursement of the City's -expenditure of TDA funds is too good an opportunity to pass up. One final note: Although we will be .agreeing to transfer future FAU funds to the Commission, the agreement does stipulate that these funds will be used for the construction of Phases I and II. This.was the City's original intent for this funding, so we should have nonegatives. associated with the City's agreement to transfer these allocations to the LACTC. RECOMMENDATION The City Council approve the agreement and authorize the City Manager and City Attorney to execute and send it on to the LACTC.for further processing. ATTACHMENTS Map Agreement hds/513 11 STAGE 5 — VALENCIA BLVD. to BOUQUET CYN. ROAD /44C�76CS4� BGYQ STAGE 4; DRAYTON STREET to 15TH STREET c STAGE 2 F MAGIC MTN. PKWY, at 00 BOUQUET CYN. ROAD 10 GYOMJ q✓ENUE Q VICINITY MAP .V.7S. SAN FERNANDO ROAD PHASE CONSTRUCTION STAGE 3 DRAYTON ST. to CIRCLE J RANCH RD. STAGE I 15TH STREET to LYONS AVENUE i Revised 7/19/91 KODEL AGRIEMINT THIS AGREEMENT is made and entered, in duplicate, as of the day of , 1991, pursuant to an action taken by the City Council of the City of at its meeting held on , 1991, and pursuant to an action taken by the Los Angeles County Transportation Commission at its meeting . held on January 23, 1990, by and between the CITY OF , a municipal corporation, ("City") and the LOS ANGELES COUNTY TRANSPORTATION COMMISSION, a public body, ("Commission"). WHEREAS, City is a designated recipient of Federal Aid - Urban allocations from the Federal Highway Administration ("FAU allocations"); and WHEREAS, City wishes to transfer Dollars ($ ) of its unobligated [and future] FAU allocations to Commission; and, WHEREAS, Commission wishes to transfer Dollars ($ ) of its Combined Road Plan (CRP) cash account funds to City for costs incurred by the Project ("Project"), NOW, THEREFORE in consideration of the mutual terms and conditions herein, the parties agree as follows: 1• City shall transfer Dollars (Local FAU $ , Regional FAU INTEREST FAU $ ) to Commission upon execution of, this AGREEMENT. 2. To the. extend CRP cash account funds are available, the Commission shall authorize and transfer Dollars ($ ) of CRP cash account funds to City in accordance with the terms of this Agreement. 3. City shall expend CRP cash account funds for cost incurred by Project. 4. City shall give to Commission a copy of Cityls written approval from the California Department of Transportation ("Caltrans") to advertise for bids on Project. on receipt of said COPY, Commission shall notify City of the eligibility of the cost components of the Project for cRP cash account funds. Following expenditure of City funds for eligible items, the City shall request reimbursement from Commission in CRP cash account funds. S. Commission shall return to City previously transferred FAU (Proposition A7 allocations, if CRP Cash account funds are not available. . 6. If Project does not use the total Dollars (Local FAU $ 1 REGIONAL FAU $ , INTEREST FAU $ ) of CRP cash account funds, Commission may compensate City in an —a— 0 amount equal.to the difference between the total cost of Project and Dollars restoring to City previously transferred FAU (Proposition A) allocations. 7. The term of this Agreement shall commence on the date of execution by the City Manager of city or the date of execution by Commission, whichever occurs later, and shall terminate when City has received the extent of CRP cash account funds available for reimbursement from Commission for the Project,. unless terminated earlier as provided herein. S. Commission shall make twelve (12) prorate monthly disbursements to City based on the awarded contract cost of the project and the construction start data or. the estimated construc- tion period if longer than twelve (12) months, and shall retain ten percent of the total awarded Project cost. The tan percent retain - nage shall be disbursed to City upon satisfactory completion of the 30 -day maintenance review. 9. City hereby agrees and authorizes remittance of any State -Local Transportation Partnership Program Funds (S -L TRP to the commission, which may be approved pursuant to an application submitted by the Commission on behalf of City for subject Project. S -L TPP funds received by the Commission for subject Project will be apportioned by the Commission, between the City and the Commission, in an amount equal to the percentage of total Project - 3 - coat contributed by the City and the Commission. However, the total contribution from the Commission, of CRP cash account funds co the extent available, and Proposition C interest revenues if available, and Proposition C principal revenues if available and S -L TPP funds if available, shall not exceed the Commission's authorized FAU cash management contribution for subject Project. 10. At the and of FY 1991-92, the Commission shall conduct a post -construction financial and compliance audit of the Project. City agrees to maintain proper accounting procedures and. cash management records and documents for the audit. The city may .be required to reimburse Commission for any expenditures not in Project plans, specifications and estimates. 11. Notice under this Agreement shall be in writing and personally served or deposited in the U. S. Postal Service, first class, postage prepaid to City at , California , Attention: City Manager, and to Commission at 818 West 7th 1street. Los Angeles, California 90017. Notice shall be deemed given on the date personal service is obtained or on the date of deposit in the mail, whichever applies. 12. This Agreement shall not be amended, nor any provision or breach hereof waived, except in writing signed by the parties which expressly refers to this Agreement. 13. This Agreement Constitutes the entire understanding between the parties, with respect to'the subject matter herein. 4 14. In the event that there is any legal proceeding between the parties to enforce or interpret this Agreement or to protect or establish any rights or remedies hereunder, the prevailing party shall be entitled to its costs and expenses, including reasonable attorney's fees. 0 C] IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed with all of the formalities required by the law on the respective dates set forth opposite their signatures. LOS ANGELES COUNTY TRANSPORTATION COMMISSION NEIL PETERSON Executive Director APPROVED AS TO FORM: DE WITT CLINTON County Counsel RINI PHILLIPS Deputy County Counsel CITY OF City Manager Date: Date: Date: This Agreement is hereby approved as to form this day of , 1991. D1-CRPCAGMT 6 City Attorney By Deputy Revised 7/19/91