HomeMy WebLinkAboutItem 2f - Agreement with Los Angeles County for Assignment of Federal Surface Transportation Program Local FundsV~'Y GP1,iFOkn,�9y�r
°�'h4nityof�o�y STAFF REPORT
Development Services Department
DATE: August 6, 2013
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
Philip A. Wray, Deputy Director of Development Services /City Engineer
SUBJECT: AN AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR THE
ASSIGNMENT OF FEDERAL SURFACE TRANSPORTATION
PROGRAM — LOCAL FUNDS IN EXCHANGE FOR GASOLINE TAX
FUNDS
Recommendation: Approve
SUMMARY
The City of Arcadia annually receives Federal Surface Transportation -Local (STP -L)
funding from the Federal Highway Administration through Metro. The City's current
fund balance is approximately $695,000, of which $170,000 is subject to lapse on
September 30, 2013. The County of Los Angeles has offered to exchange Gas Tax
funds for the City's STP -L funds. The exchange will relieve the City of any lapsing fund
issues and the Gas Tax funding can be used for, among other things, the same purpose
as the STP -L funds. Staff recommends the approval of the agreement to exchange the
funds.
BACKGROUND
The City of Arcadia annually receives Federal Surface Transportation - Local (STP -L)
funding from the Federal Highway Administration that passes through Metro for their
administration. STP -L funds can be used for a variety of road improvements ranging
from simple pavement rehabilitation to complex road widening. Only streets on the
approved Federal Functional Classification Network are eligible for expenditure of these
funds. This covers the City's arterial streets and some collector streets. Metro places
a restriction that the funding must be spent within three years of its allocation. The
City's current STP -L fund balance is approximately $695,000, of which $170,000 is
subject to lapse on September 30, 2013. The City has budgeted $440,000 in STP -L
funding for a project in Fiscal Year 2013 -14. However, it is questionable whether the
project will be bid and awarded by the deadline. Caltrans acts as the compliance
Agreement with County of Los Angeles to Swap Grant Funds
August 6, 2013
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authority, and the project must be reviewed and approved by Caltrans to receive
funding approval. The City has no control over their approval process and timing.
DISCUSSION
The County of Los Angeles has offered to exchange its Gas Tax funds for the City's
STP -L funds to help insure that no funds lapse. Gas Tax funding can be expended on
any public roadway in the City and does not require Federal approval for each
expenditure. A simple agreement has been drafted by the County and approved by the
City Attorney. The City will proceed with its STP -L funded project as scheduled and the
Gas Tax funding will be re- budgeted with another street repair project and presented to
the City Council at a later date.
FISCAL IMPACT
This action will assign $170,000 of the City's STP -L funding with Gas Tax funding to the
County of Los Angeles in exchange for their Gas Tax funding. Gas Tax funding can be
used for, among other things, the same purposes as the STP -L funds.
RECOMMENDATION
It is recommended that the City Council authorize and direct the City Manager to
execute an Agreement with the County of Los Angeles for the assignment of Federal
Surface Transportation Program — Local Funds in exchange for Gasoline Tax Funds.
Approved:
Dominic Lazzareftd
City Manager