Report to Mayor and City Council
Tuesday, October 19, 2021
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF THE EXCHANGE AGREEMENT AND ASSIGNMENT OF FEDERAL HIGHWAY INFRASTRUCTURE PROGRAMS FUNDS BETWEEN THE CITY OF CARSON AND THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMTA) FOR PROJECT NO. 1612: TRAFFIC SIGNAL INSTALLATION AT THE ENTRANCE TO THE CORPORATE YARD
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I. SUMMARY
The City is eligible for Federal Highway Infrastructure Programs Funds (HIP Funds) and was allocated $435,283.00 from the Coronavirus Response and Relief Supplemental Appropriations ACT (CRRSAA) that was enacted on December 27, 2020. City staff has opted for the exchange of Los Angeles County Metropolitan Transportation Authority (Metro) local funds in place of the federal CRRSAA-HIP allocated to the city. The next step in the exchange process is to execute a funding agreement between the City of Carson and Metro. This exchange of City’s HIP Funds for Metro Funds will benefit both the City and Metro; the City will benefit because the funds will be available for use by the City for the project immediately.
Staff requests that the City Council approve the Exchange Agreement and Assignment of Federal Highway Infrastructure Programs Funds between the City of Carson and LACTMA to move forward with the use of the funds to implement Project No. 1612 - Traffic Signal Installation at the entrance to the Corporate Yard. (Exhibit No. 1).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the Exchange Agreement with the Los Angeles County Metropolitan Transportation Authority (METRO) exchanging the total allocation of $435,283 of City’s HIP Funds that METRO approved on April 22, 2021 for a like total amount of $435,283 of Metro Local Transportation Funds.
2. Authorize the City Mayor to sign the Agreement after approval as to form by the City Attorney.
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III. ALTERNATIVES
1. DO NOT APPROVE the Exchange Agreement; however, the City must execute this agreement to complete the exchange process and allow staff to use the fund for Project No. 1612 - Traffic Signal Installation at the entrance to the Corporate Yard.
2. TAKE another action the City Council deems appropriate, consistent with the requirements of the law.
IV. BACKGROUND
The City is eligible for and has available Federal Highway Infrastructure Programs Funds (HIP). HIP funds are available for use on federal-aid eligible projects. On April 22, 2021, the Board of Directors of the Los Angeles County Metropolitan Transportation Authority (Metro) approved the programming of about $47.5 million in Coronavirus Response and Relief Supplemental Appropriations ACT (CRRSAA) HIP funds enacted on December 27, 2020. These funds are available through the Caltrans Local Assistance Surface Transportation Block Grant Program (STBGP) and allocated to all 88 cities in Los Angeles County, as well as to the County of Los Angeles, by their relative share of the total county population; Carson was allocated $435,283.00 from the CRRSAA funds.
The Metro Board also included the approval of the opportunity for agencies to exchange their CRRSAA HIP Local Assistance Surface Transportation Block Grant Program (STBGP) funding allocations with local funds provided through Metro’s existing federal Surface Transportation Program - Local (STPL) Exchange Program.
Based on the current total amount of local funds available for the STPL Exchange Program, the City would be eligible to exchange its HIP funding allocations. City staff is recommending that the federal CRRSAA-HIP funds already allocated to the City be exchanged for Metro local funds in their place. This would entail exchanging its total allocation of $435,283 of City’s HIP Funds for a like total amount of $435,283 of Metro’s Funds, but the City would need to pay Metro a nominal two percent (2%) processing and administrative fee in connection with the exchange of funds; however, by doing so, the funds will be available for use by the City for the project immediately.
The fee shall be assessed against the total amount of Metro’s funds payable to the City. As a result, Metro would pay the City $426,577 of Metro’s funds which includes the deduction for the processing fee. This fund will be used for the design and construction of Capital Improvement Program Project No. 1612: Traffic Signal Installation at the two entrances to the Corporate Yard - Main Street and Broadway. The new traffic signals are anticipated to improve vehicle turning movement coming in and out of the Corporate Yard and increase driver- and pedestrian safety.
The next step in the exchange process is to execute an Exchange Agreement and Assignment of Federal Highway Infrastructure Program Funds between the City and Metro, which has been completed by Metro and submitted to the City for approval.
V. FISCAL IMPACT
Funds in the amount of $300,000 for Project 1612 - Traffic Signal Installation was included in the FY 2021-22 budget, however, given that there are two entrances to the Corporate Yard (Main St. and Broadway), the amount budgeted is not sufficient and supplemental funding will be necessary. The exchange of $435,283 funding from CRRSAA-HIP to Metro Fund will help cover the shortfall to complete this project. There will be no impact on the City’s General Fund.
VI. EXHIBITS
1. Location Map (pg. 4).
2. Exchange Agreement and Assignment of Federal Highway Infrastructure Program Funds (pgs. 5-9)
Prepared by: Gilbert Marquez, P.E., City Engineer