HomeMy WebLinkAbout1998-09-08 - AGENDA REPORTS - LACO TRANS FUND (2)CITY OF SANTA CLARITA
AGENDA REPORT
49
CONSENTCALENDAR City Manager Approv :
Item to be presented by: T. Brad TheVe �
DATE: September 8, 1998
SUBJECT: LOS ANGELES COUNTY/CITY FUNDING AGREEMENT (SURFACE
TRANSPORTATION PROGRAM LOCAL)
DEPARTMENT: Transportation and Engineering Services
RECOMMENDED ACTION
City Council approve the draft Cooperative Agreement and authorize the City Manager or his
designee to approve all documents relating to this agreement, subject to final approval of the
City Attorney.
Authorize the assignment of $654,955.00 of STP -L funds from MagicMountain/Via Princessa
Projects to Los Angeles County in exchange for design and construction management services
of several pending projects.
BACKGROUND
During the budget process, Surface Transportation Program -Local (STP -L) funds were budgeted
for Magic Mountain/Via Princessa and Wiley Canyon Realignment projects. STP -L funds are
federal funds restricted for use on major roadways and transportation projects. The MTA
receives this money from the federal government and distributes it to local agencies through
Caltrans.
While working with the federal environmental process (NEPA) to approve the Magic
Mountain/Via Princessa project for design, the City was informed that an additional two years
would be necessary for review and approval by the federal government. The two-year delay
may jeopardize the STP -L funds. Also, since this project is already part of a development
condition, additional federal funding for construction is unlikely. The decision was made to
delete the NEPA process and shift federal funds (STP -L) to other projects.
LOS ANGELES COUNTY/CITY FUNDING AGREEMENT (STP -LOCAL)
September 8, 1998 — Page 2 .
On July 15, 1998, the City received a letter from the MTA regarding the extension of funding
for a significant allocation of STP -L funds. The letter stated that no extension would be
granted, but it did indicate that an appeal process was being formulated. To avoid possible loss
of these funds, the following alternatives have been considered. However, funding source
restrictions and time constraints severely limit our flexibility.
Option 1. Do nothing and hope the money does not lapse while appealing for a time
extension.
This has not been a problem in the past, but is a high risk today. This would be
a significant gamble with a sizeable sum of money.
Pros: Hope MTA grants extension.
Cons: The City may lose $654,955.00 in funding for capital projects.
Option 2. Transfer these funds to another project eligible for federal funds.
Staff identified two projects eligible for federal funds, the Town Center Transit
Center and 1999-2000 Annual Overlay projects. However, we can only obligate
for the environmental work and design cost at this time, which would cover
about $200,000.00 of the $654,955.00. The remaining $454,955.00 will still be
subject to lapse or appeal for time extension.
Pros: This will prevent the $200,000.00 from lapsing.
Cons: The City may lose $454,955.00 in funding for capital projects.
Option 3. Broker the STP -L funds to Los Angeles County in exchange for their professional
design and construction management services.
This option clears the City's books of those STP -L funds_ for this year that are
subject to lapse. The advantage for the County is that we use their services on
future projects in an amount equal to the amount of money exchanged. The Los
Angeles County Public Works Department is considered as the City's own forces
and will not violate any consultant hiring laws or procedures.
Pros: This will prevent the $654,955.00 from lapsing.
Cons: May take more time for the coordination with Los Angeles County.
This money will be replaced in the Magic Mountain/Via Princessa project by the funds made
available from the following bridge widening projects: Sierra Highway over the Santa Clara
River, and Bouquet Canyon over the Santa Clara River. This approach is particularly timely,
as staff already had plans to use the County for the design and contract administration of these
projects.
LOS ANGELES COUNTY/CITY FUNDING AGREEMENT (STP -LOCAL)
September 8, 1998 — Page 3
Due to the type of money under discussion, staff believes that a service/trade transaction with
Los Angeles County appears to be the best method to protect the funding.
The Cooperative Agreement details the duties of the City and the County for transferring of
STP -L funds on a dollar -to -dollar. basis in exchange for design and construction management
services.
ALTERNATIVE ACTIONS
Direct staff to proceed with either Option 1 or Option 2.
FISCAL IMPACT
Option 1. If one extension is granted, then there is no fiscal impact. Funds are currently
budgeted. If no extension is granted, the project would lose $654,955.00 in
funding.
Option 2. The City may lose $454,955.00 in funding for capital projects.
Option 3. We would receive services in an amount equal to $654,955.00, so there would be
no net fiscal impact.
ATTACHMENTS
Cooperative Agreement will be presented at the City Council meeting.
RM:mrr
Council\mvstplfdoc
AGREEMENT
THIS AGREEMENT, made and entered into by and between the CITY OF
SANTA CLARITA, a municipal corporation in the County of Los Angeles, hereinafter
referred to as "CITY," and the COUNTY OF LOS ANGELES, a political subdivision of the
State of California, hereinafter referred to as "COUNTY:"
WITNESSETH
WHEREAS, CITY has Six Hundred Fifty-five Thousand and 00/100 Dollars
($655,000.00) in available Federal Surface Transportation Program (STP) funds which are
scheduled to lapse on September 30,1998 unless they are obligated to a qualifying project
or otherwise assigned to another agency; and
WHEREAS, COUNTY is currently processing projects under the STP program to
which CITY'S STP funds can be obligated; and
WHEREAS, CITY desires to assign its lapsing STP funds to COUNTY; and
WHEREAS, COUNTY is willing to accept the assignment of CITY'S lapsing
available STP funds and to utilize the assignment as credit toward CITY'S financial share
of a future CITY -COUNTY cooperative road construction project or projects.
NOW, THEREFORE, in consideration of the mutual benefits to be derived by CITY
and COUNTY and of the promises herein contained, it is hereby agreed as follows:
(1) CITY AGREES:
To assign Six Hundred Fifty-five Thousand and 00/100 Dollars ($655,000.00) of
CITY'S STP funds to COUNTY as credit toward CITY'S financial share of a future
CITY -COUNTY cooperative road construction projector projects to be designed and
administered by COUNTY.
I
-2-
(2) COUNTYAGREES:
a.To accept CITY'S assignment of CITY'S STP funds.
b. To utilize CITY'S assignment toward CITY'S financial share of a future CITY -
COUNTY cooperative road construction project or projects to be designed and
administered by COUNTY
(3) IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS:
a. Said future road construction project, as set forth herein, shall be mutually
acceptable to both CITY and COUNTY and shall be in the general interest
of CITY and COUNTY.
b. This AGREEMENT may be amended or modified only by mutual written
consent of COUNTY and CITY.
C. The credit accorded CITY hereunder shall be for the sum actually received
by COUNTY, and shall not accrue interest.
d. Any correspondence, communication, or contact concerning this
AGREEMENT shall be directed to the following:
CITY:
Mr. Anthony J. Nisich
Director of RbftICSEnd6 @C .Transportation. & Engineering Services
City of Santa Clarita
23920 West Valencia Boulevard, Suite 300
Santa Clarita, CA 91355
COUNTY:
-3 -
Mr. Harry W. Stone
Director of Public Works
County of Los Angeles
Department of Public Works
P.O. Box 1460
Alhambra, CA 91802-1460
e. It is understood and agreed that the provisions of Assumption of Liability
Agreement No. 59595 between CITY and COUNTY, adopted by the Board
of Supervisors on June 21, 1988, and currently in effect are inapplicable to
this AGREEMENT.
Ie
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
executed by their respective officers, duly authorized, by the CITY OF SANTA CLARITA
on 19_ and by the COUNTY OF LOS ANGELES on 19_.
ATTEST:
JOANNE STURGES
Executive Officer of
the Board of Supervisors
By
Deputy
APPROVED AS TO FORM:
LLOYD W.PELLMAN
County Counsel
0
ATTEST:
Z
Deputy
City Clerk
P:W DPUB\PUBLIC\SECFINAL\PBSCUdA\STCLARIT.STP
COUNTY OF LOS ANGELES
Chair, Board of Supervisors
CITY OF SANTA CLARITA
By
Mayor
APPROVED AS TO FORM:
m
City Attorney