TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Joe Parco, City Engineer
Edward Kao, Senior Civil Engineer
SUBJECT:Title
Resolution Authorizing Public Works Director to Sign Cooperative Work Agreement (CWA) Extension Request to Extend the Federal Transportation Fund (SAFETEA-LU) in the Amount of $486,882 (Public Works Director Olmos).
APPROVE
Line
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council adopt Resolution No. 15-0049 authorizing the Public Works Director to sign a Cooperative Work Agreement (CWA) Extension
Request to extend the Federal Transportation Fund (SAFETEA-LU) grant in the amount of $486,882.
FISCAL IMPLICATIONS:
The City is authorized to receive Federal funding in the amount of $1,439,840 under the “Safe, Accountable, Flexible, Efficient Transportation Equality Act: A Legacy for Users” (SAFETEA-LU) through the State of California Department of Transportation (Caltrans) for the Sepulveda Boulevard Bridge Widening Project. Caltrans divides the SAFETEA-LU funding into different internal accounts. These different accounts are also sequenced differently. According to Caltrans’ records, $805,449 has been encumbered from the total allocation of $1,439,840. From the $805,449, $318,567 has been reimbursed (spent), leaving an unliquidated (unspent) amount of $486,882. The unliquidated (unspent) fund is subject to lapsing if a CWA Extension is not requested.
The remaining fund balance of $634,381 ($1,439,840 minus $805,449) is not in jeopardy of lapsing and does not require any action at this time.
BACKGROUND:
The federal highway and transit programs legislation, “Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users” (SAFETEA-LU) was signed into law in 2005. SAFETEA-LU expired on September 30, 2009 and has been operating on a series of short-term extensions since. SAFETEA-LU provides funding for surface transportation including earmark funds for 5173 high priority projects nationwide. Congresswoman Jane Harman sponsored high priority project 1286 the “South Bay Cities COG Coastal Corridor Transportation Initiative, Phase 3” and directed the entire earmark to the Sepulveda Boulevard Bride Widening Project. These funds are available on a reimbursement basis and a 20% local match is required. City Council approved a funding agreement for the use of these funds on February 15, 2011.
DISCUSSION:
On June 5, 2012, the City Council approved the use of SAFETEA-LU fund to hire a design consultant, HDR, Inc., to provide the design, environmental and right-of-way acquisition services related to the Sepulveda Boulevard Bridge Widening Project. Due to the complexity of the project and the various required federal and state permitting and approval requirements the designing process has taken longer than originally anticipated. Consequently, a portion of the SAFETEA-LU fund has not been spent.
On October 13, 2014, Caltrans notified the City that the unspent federal fund will be subject to lapsing if the encumbrance has not been fully reimbursed or closed out by December 31, 2014. As a result, the City was required to request a CWA extension by October 24, 2014. The short time frame made it impossible to go to City Council for authorization prior to October 24, 2014. To avoid delay, Caltrans allowed the Public Works Director to request a CWA extension with an understanding that the Public Works Director will receive forthcoming delegation authority from the City Council. The CWA Extension was requested, approved by Caltrans and extended to June 30, 2017. A resolution from the City Council authorizing the request is required to complete the process.
CONCLUSION:
Staff recommends that City Council adopt Resolution No. 15- 0049 authorizing the Public Works Director to sign the CWA Extension Request to extend the Federal Transportation Fund (SAFETEA-LU) in the amount of $486,882.
ATTACHMENTS:
1. Resolution No. 15-0049