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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 Page 2 of 2 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