2005 JUN 21 CC PACKET -REVISEDREVISED AGE N DA
EL SEGUNDO CITY COUNCIL
COUNCIL CHAMBERS - 350 Main Street
The City Council, with certain statutory exceptions, can only take action upon properly posted and listed agenda items
Unless otherwise noted in the Agenda, the Public can only comment on City- related business that is within the
jurisdiction of the City Council and /or items listed on the Agenda during the Public Communications portion of the
Meeting During the first Public Communications portion of the Agenda, comments are limited to those items
appearing on the Agenda During the second Public Communications portion of the Agenda, comments may be made
regarding any matter within the jurisdiction of the City Council Additionally, the Public can comment on any Public
Hearing item on the Agenda during the Public Hearing portion of such item The time limit for comments is five (5)
minutes per person
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organization you represent, if desired Please respect the time limits
Members of the Public may place items on the second Public Communications portion of the Agenda by submitting a
Written Request to the City Clerk or City Manager's Office at least six days prior to the City Council Meeting (by 2 00
p m the prior Tuesday) Other members of the public may comment on these items only during this second Public
Communications portion of the Agenda The request must include a brief general description of the business to be
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meeting, please contact City Clerk, 524 -2305 Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
NOTE: Item 1 - See revised Description
Item 10 -See revised Fiscal Impact
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, JUNE 21, 2005 - 7:00 P.M.
Next Resolution # 1385
Next Ordinance # 4426
7:00 P.M. SESSION
CALL TO ORDER
INVOCATION — Pastor Rich Reid of El Segundo Christian Church
PLEDGE OF ALLEGIANCE — Council Member Carl Jacobson
PRESENTATIONS -
(a) Commendations to the ESHS Baseball Team, winners of the CIF Division IV Championship
game
ROLL CALL
PUBLIC COMMUNICATIONS - (Related to City Business Only - 5 minute limit per person, 30
minute limit total) Individuals who have received value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all
comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The
Council will respond to comments after Public Communications is closed
A. PROCEDURAL MOTIONS
Consideration of a motion to read all ordinances and resolutions on the Agenda by title
only.
Recommendation - Approval
B. SPECIAL ORDERS OF BUSINESS
C. UNFINISHED BUSINESS
1. Consideration and possible action with regard to the following items relating to
the Douglas Street Gap Closure/ Railroad Grade Separation Project ( "Project" -PW
05 -06) Approved Capital Improvement Project: Adopt a resolution authorizing
execution of a lease agreement to secure a California State Infrastructure Bank
loan; Approval of a Program Supplement for MTA Grant funding; Appropriation of
funds; and, Award of a construction contract to Sema Construction, Inc. (Fiscal
Impact = $27,361,800)
Recommendations
California Infrastructure Bank
1) Adopt a resolution authorizing the Mayor to execute Facility and Site Lease Agreements
with the California State Infrastructure and Economic Development Bank (California
Infrastructure Bank) for the potential financing of the Project,
B
Caltrans Program Supplement for MTA Grant Funding
2) Approve a Program Supplement Agreement to the Master State - Agency Agreement to set
the terms and conditions for the receipt of MTA grant funds in the amount of $9,233,000 for
the Project,
3) Authorize the City Manager to execute Program Supplement Agreement on behalf of the
City,
Appropriation of Funds:
4) Appropriate Transportation Community System Preservation (TCSP) Funds in the amount of
$937,433 for the Project ,
5) Appropriate Federal Transit Administration (FTA) grant funds in the amount of $2,079,661 for
the Project,
6) Appropriate MTA grant funds in the amount of $9,233,000 for the Project,
7) Appropriate Proposition C 25% funds in the amount of $500,000 for the Project,
8) Appropriate Surface Transportation Program Local TEA -21 (STPL) Funds in the amount of
$500,000 for the Project,
9) Appropriate CIP Savings in the amount of $111,698 for the Project,
Appropriations for Contingency Funding:
10)Appropriate California Infrastructure Bank funding in the amount of $10,000,000 and
Transportation Equity Act for the 2151 Century (TEA -21 Demonstration Funds) funding in the
amount of $4,000,000 upon outside agency approval of these funds,
11) Appropriate all or a portion of the following funds, in the order listed, as needed in the event
that California Infrastructure Bank funding and /or TEA -21 Demonstration Funds are not
available for the Project Water Enterprise Funds in the amount of $270,000, General Funds
(CIP Savings) in the amount of $1,248,652, Traffic Mitigation funds in the amount of
$1,831,898, Proposition C funds in the amount of $600,000, Gas Tax Funds in the amount of
$215,000 from funds currently appropriated to the Five -Year Street Reconstruction Project,
General Funds in the amount of $152,100 from funds currently appropriated to the
Downtown Specific Plan, General Funds in the amount of $819,900 from funds currently
appropriated to the City Hall Remodel Project, General Funds in the amount of $5,945,500
from funds currently appropriated to the Community Center Project, General Funds in the
amount of $675,750 from funds currently appropriated to the Aquatics Master Plan, General
Funds in the amount of $2,241,300 from funds currently appropriated to the Fire Station No
2 Project (Ail totaling $14,000,000),
Award of Construction Contract:
12)Award a construction contract to Sema Construction, Inc in the amount of $19,239,025 for
construction of the Project (PW 05 -06),
13) Authorize a 10% contingency for said contract in the amount of $1,923,903,
14) Authorize the City Manager to execute the contract on behalf of the City, and,
15) Alternatively, discuss and take other action related to these items
D. REPORTS OF COMMITTEES, BOARDS AND COMMISSIONS
2. Consideration and possible action regarding the announcement of the
appointments of candidates to the following Committees, Commissions and
Boards (GCBs): Senior Citizen Housing Corporation Board and the Planning
Commission.
Recommendation — (1) Announce the appointees to the Senior Citizen Housing
Corporation Board and the Planning Commission, and terms of office, (2) Announce
that the interviews for the Library Board of Trustees and Investment Advisory
Committee will be scheduled for 6 00 p m , July 19, 2005, and the current positions on
these two committees are extended until July 19`h or until filled, whichever first occurs,
(3) Announce that recruitment continues for positions on remaining CCBs El Segundo
Community Cable Advisory Committee and Capital Improvement Program Advisory
Committee and interviews will be scheduled for October or November, 2005; (4)
Alternatively, discuss and take other action related to this item
E. CONSENT AGENDA
All items listed are to be adopted by one motion without discussion and passed unanimously If a call for discussion of
an item is made, the item(s) will be considered individually under the next heading of business
3. Warrant Numbers 2547693 on Register No. 2547930 in the total amount of
$649,698.96 and Wire Transfers from 5/2712005 through 61912005 in the total
amount of $1,552,056.01.
Recommendation — Approve Warrant Demand Register and authorize staff to release
Ratify Payroll and Employee Benefit checks, checks released early due to contracts or
agreement, emergency disbursements and/or adjustments, and wire transfers
4. City Council Meeting Minutes of June 7, 2005 and Special City Council Meeting
Minutes of May 20, 2005.
Recommendation — Approval
5. Consideration and possible action regarding a Resolution providing for salary and
benefit changes to Chapter 1A2 (Management - Confidential Series) of the El
Segundo Administrative Code. (Fiscal Impact: $394,500 over 3 years).
Recommendation — (1) Adopt the attached resolution, (2) Alternatively, discuss and take
other action related to this item
M
6. Consideration and possible action regarding approval of a change order,
additional appropriations and final acceptance of the project for the City Library
Interior Modifications (111 West Mariposa Avenue) — PW 03 -09 — Approved Capital
Improvement Program. (Final Contract Amount: $188,129.25)
Recommendation — (1) Accept the work as complete, (2) Approve Change Order No 1
in the amount of $24,329 25, (3) Approve an appropriation in the amount of $16,493
from Developer Funds deposited for the Library, (4) Authorize the City Clerk to file a
Notice of Completion in the County Recorder's Office; (5) Alternatively, discuss and take
other action related to this item
7. Consideration and possible action regarding award of contract to S &L Specialty
Contracting Inc. for construction related to the Residential Sound Insulation
Program's Group 6 (38 residences). (Estimated construction cost and retention -
$1,226,500)
Recommendation — (1) Award contract to S &L Specialty Contracting, Inc, (2) Authorize
the City Manager to execute a construction contract in a form approved by the City
Attorney, (3) Alternatively, discuss and take other action related to this item
8. Consideration and possible action to approve the purchase order issued for
emergency replacement of leaking hot water boilers at the Park Vista Senior
Apartments at 615 East Holly Avenue. (Fiscal Impact: $16,500)
Recommendation — (1) Approve the purchase order with John E Phillips Plumbing and
Heating, Inc in the amount of $16,500 issued for emergency replacement of leaking hot
water boilers at the Park Vista Senior Apartments at 615 East Holly Avenue, (2)
Alternatively, discuss and take other action related to this item
9. Consideration and possible action regarding the request of the El Segundo Rotary
Club to waive fees for city services associated with Movie in the Park. (Fiscal
Impact: $200)
Recommendation — (1) Waive fees for city services associated with Movie in the Park,
(2) Alternatively, discuss and take other action related to this item
10. Consideration and possible action regarding a special permit, per Municipal Code,
Section 8- 8 -7(D) (2), the waiver of fees for city services associated with the South
Bay Masonic Lodge's request for the city's co- sponsorship in the first
Constitution Observance Day Festival to be held September 11, 2005 from 10:00
a.m. until 4:00 p.m. (Fiscal Impact: $2,080)
Recommendation — (1) Approve waiver of city fees associated with the South Bay
Masonic Lodge's request and consider city co- sponsorship of the event, (2) Alternatively,
discuss and take other action related to this item
7
11. Consideration and possible action regarding the request of the El Segundo Police
Officers Association for City Council's approval and support to close off the 100
to 600 blocks of Main Street for the Annual Car Show to be held on August 27,
2005 from 6:00 a.m. to 6:00 p.m. (Fiscal Impact: $300)
Recommendation (1) Approve Special Event Permit application, (2) Alternatively,
discuss and take other action related to this item
12. Consideration and possible action regarding the waiver of fees for city services
associated with the Pacifica District Cub Scout Soap Box Derby. (Fiscal Impact:
Recommendation — (1) Approve waiver of fees for city services associated with the
Pacifica District Club Scout Soap Box Derby, (2) Alternatively, discuss and take other
action related to this item
13. Consideration and possible action regarding adoption of the National Initiatives;
National Incident Management System (NIMS) and National Response Plan (NRP).
These systems provide guidelines for local, regional and national coordination of
major disasters. (Fiscal Impact: None)
Recommendation — (1) Adopt the attached Resolution, (2) Alternatively, discuss and
take other action related to this item
14. Consideration and possible action regarding the purchase of Vecta Train
computer data tables for installation into the Emergency Operations Center (EOC)
as authorized by the State Homeland Security Grant Program (SHSGP) and County
of Los Angeles Office of Emergency Management (OEM). (Fiscal Impact: $26,600)
Recommendation — (1) Recommend that City Council waive the formal bidding process
pursuant to El Segundo Municipal Code Sec 1 -7 -10 and approve the City's use of
competitively solicited U S Communities Contract #05Z00801, (2) Authorize the
issuance of a purchase order for 16 Vecta (manufacturer) Train computer tables through
Tangram Interiors (authorized distributor and installers) in an amount not to exceed
$26,600, (3) alternatively, discuss and take other action related to the item
15. Consideration and possible action to authorize the City Manager to sign a
Designation of Applicant's Agent Resolution for the purpose of obtaining federal
and state assistance under Public Law 93 -288 as amended, under the Robert T.
Stafford Disaster Relief Act and Emergency Assistance Act of 1988, and /or state
financial assistance under the California Disaster Assistance Act. (Fiscal Impact:
Recommendation — (1) Designate the City Manager or Fire Chief or Emergency Services
Coordinator as the city's designated agents to file claims for reimbursement with state
and federal authorities, (2) Alternatively, discuss and take other action related to this
item
M
CALL ITEMS FROM CONSENT AGENDA
F. NEW BUSINESS
G. REPORTS — CITY MANAGER — NONE
H. REPORTS — CITY ATTORNEY — NONE
REPORTS — CITY CLERK
16. Consideration and possible action regarding cancellation of the July 5, 2005 City
Council Meeting.
Recommendation — (1) Approve cancellation of the July 5, 2005 City Council Meeting,
(2) Alternatively, discuss and take other action related to this item
J. REPORTS — CITY TREASURER — NONE
K. REPORTS — CITY COUNCIL MEMBERS
Council Member Boulgarides —
Council Member Busch —
Council Member Jacobson —
17. Consideration and possible action directing staff to research and present
alternative public notice procedures pertaining to issues and items requiring
published legal notices.
Recommendation — (1) Direct staff to research available alternative procedures
regarding public legal notices, (2) Alternatively, discuss and take other action related to
this item
Mayor Pro Tern Gaines —
0
Mayor McDowell —
18. Consideration and possible action to amend the City's agreement with Cassidy &
Associates and increase the contract by an amount not to exceed $1,700 /month
through September 30, 2005 to represent the City's interests regarding the LAAFB
and the BRAC process in lieu of paying annual dues to the Los Angeles Air Force
Base Regional Alliance. (Fiscal Impact: $5,100).
Recommendation — Approve Amendment #1 to the City's current agreement with
Cassidy & Associations, (2) Alternatively, discuss and take other action related to this
item
19. Consideration and possible action regarding a resolution appointing a new
delegate to the South Bay Cities Council of Governments (SBCCOG).
Recommendation — (1) Approve appointment of a new delegate to the SBCCOG, (2)
Adopt resolution, (3) Alternatively, discuss and take other action related to this item
20. Consideration and possible action to support AB556 (Gordon) which seeks to
codify regulations regarding airport noise standard and procedures for obtaining
and renewing airport noises variances.
Recommendation — (1) Approve attached list of proposed amendments to the bill and
authorize the Mayor to send a letter supporting the amended version of AB556, (2)
Alternatively, discuss and take other action related to this Item
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per person, 30
minute limit total) Individuals who have receive value of $50 or more to communicate to the City Council on
behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to
addressing the City Council Failure to do so shall be a misdemeanor and punishable by a fine of $250 While all
comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda The
Council will respond to comments after Public Communications is closed
MEMORIALS —
CLOSED SESSION
The City Council may move into a closed session pursuant to applicable law, Including the Brown Act (Government
Code Section §54960, et seg) for the purposes of confernng with the City's Real Property Negotiator, andlor
conferring with the City Attorney on potential and /or existing litigation, and /or discussing matters covered under
Government Code Section §54957 (Personnel), and /or confernng with the City's Labor Negotiators
10
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
ADJOURNMENT
POSTED
DATE
TIME 4: k3,5.
NAME
11
EL SEGUNDO CITY COUNCIL MEETING DATE: June 21, 2005
AGENDA ITEM STATEMENT AGENDA HEADING: Unfinished Business
AGENDA DESCRIPTION:
Consideration and possible action with regard to the following Items relating to the Douglas
Street Gap Closure/ Railroad Grade Separation Project ( "Project' -PW 05 -06)
Approved Capital Improvement Project Adopt a resolution authorizing execution of a lease
agreement to secure a California State Infrastructure Bank loan, Approval of a Program
Supplement for MTA Grant funding, Appropriation of funds, and, Award of a construction
contract to Sema Construction, Inc
(Fiscal Impact = $27,361,800)
COUNCIL ACTION:
Recommendations —
California Infrastructure Bank
1) Adopt a resolution authorizing the Mayor to execute Facility and Site Lease Agreements
with the California State Infrastructure and Economic Development Bank (California
Infrastructure Bank) for the potential financing of the Project,
Caltrans Program Supplement for MTA Grant Funding
2) Approve a Program Supplement Agreement to the Master State - Agency Agreement to set
the terms and conditions for the receipt of MTA grant funds in the amount of $9,233,000 for
the Project,
3) Authorize the City Manager to execute Program Supplement Agreement on behalf of the
City,
Appropriation of Funds:
4) Appropriate Transportation Community System Preservation (TCSP) Funds in the amount
of $937,433 for the Project ,
5) Appropriate Federal Transit Administration (FTA) grant funds in the amount of $2,079,661
for the Project,
6) Appropriate MTA grant funds in the amount of $9,233,000 for the Project,
7) Appropriate Proposition C 25% funds in the amount of $500,000 for the Project,
8) Appropriate Surface Transportation Program Local TEA -21 (STPL) Funds in the amount of
$500,000 for the Project;
9) Appropriate CIP Savings in the amount of $111,698 for the Project,
Appropriations for Contingency Funding:
10)Appropriate California Infrastructure Bank funding in the amount of $10,000,000 and
Transportation Equity Act for the 21 s` Century (TEA -21 Demonstration Funds) funding in
the amount of $4,000,000 upon outside agency approval of these funds,
11)Appropriate all or a portion of the following funds, in the order listed, as needed in the
event that California Infrastructure Bank funding and /or TEA -21 Demonstration Funds are
not available for the Project Water Enterprise Funds in the amount of $270,000, General
Funds (CIP Savings) in the amount of $1,248,652, Traffic Mitigation funds in the amount of
$1,831,898, Proposition C funds in the amount of $600,000, Gas Tax Funds in the amount
of $215,000 from funds currently appropriated to the Five -Year Street Reconstruction
Project, General Funds in the amount of $152,100 from funds currently appropriated to the
Downtown Specific Plan, General Funds In the amount of $819,900 from funds currently
appropriated to the City Hall Remodel Project, General Funds in the amount of $5,945,500
from funds currently appropriated to the Community Center Project, General Funds in the
1
amount of $675,750 from funds currently appropriated to the Aquatics Master Plan,
General Funds in the amount of $2,241,300 from funds currently appropriated to the Fire
Station No 2 Project (All totaling $14,000,000),
Award of Construction Contract:
12)Award a construction contract to Sema Construction, Inc in the amount of $19,239,025 for
construction of the Project (PW 05 -06),
13)Authorize a 10% contingency for said contract In the amount of $1,923,903,
14)Authorize the City Manager to execute the contract on behalf of the City, and,
15)Alternatively, discuss and take other action related to these items
BACKGROUND & DISCUSSION:
nd and discussion provided on the
ATTACHED SUPPORTING DOCUMENTS. California Infrastructure Bank Resolution (Attachment A)
Program Supplement (Attachment B)
FISCAL IMPACT:
Operating Budget:
Capital Improvement Program:
Amount Requested:
Account Number:
Project Phase:
$5,181,250
$32,543,050
Various
Award of construction contract
Yes
DATE:
(O '-'Iii —Q�
Stems Finton, City Engineer
REVIEWED BY. DATE:
` /10Jr
BACKGROUND & DISCUSSION:
1. GENERAL PROJECT BACKGROUND
Douglas Street is presently discontinuous between Park Place and Alaska Street
Completion of this 1000 -foot long segment of roadway has been considered essential to
regional mobility for decades Design commenced in 2000 and was completed in 2003
Construction Elements
The basic elements of the design are as follows
➢ Four -lane arterial roadway underpass 1000 feet long under existing railroad
facilities
➢ Concrete retaining walls 2000 feet in length to support adjacent properties
➢ Railroad bridge to convey BNSF line over the new road
➢ Pedestrian bridge to reconnect two portions of the Green Line light rail station
➢ Storm drains to divert flow away from the underpass area
➢ Storm water pump station to drain the underpass
➢ Park and ride lot at the north end of the protect to facilitate use of the Green Line
transit station
➢ ADA compliant sidewalks to provide access through the underpass and to the
Green Line Station
➢ Relocation of the following utilities 45" water main, 27" water main, 12" water main,
SBC communication lines, four petroleum pipelines, and Edison electrical facilities
➢ Traffic signal at entrance to park and ride lot
➢ Temporary railroad track detour (shoofly)
➢ Street lighting, decorative fencing and other incidental work
Environmental Clearance
An Initial Study/ Environmental Assessment (IS /EA) (dated January 2003) was prepared
for this project finding that the project will have no significant impact on the environment.
On February 4, 2003 Council held the required public hearing after due notification and
approved the IS /EA designation of a Negative Declaration / Finding of No Significant
Impact The State of California and the Federal Highway Administration also concur with
this finding
Right -of -Way Acquisition
Right -of -way is required for the project from a portion of four private parcels Settlement
agreements were reached with two owners and a court order of possession has been
granted through eminent domain proceedings to provide full right -of -way clearance forthe
project Further negotiations will be required to secure settlement agreements with the
two remaining property owners
Separate agreements have been entered into by the City with utility purveyors for the
relocation of six utilities in conflict with the construction Additionally, the City and the
BNSF Railroad Company have entered into an agreement for the temporary relocation of
track during the project and construction of the new railroad bridge All remaining work will
be completed under a separate construction contract
Costs and Funding
Bids for construction of the project were opened on May 17, 2005 The low bid of
$19,239,025 was significantly higher than the $10 6 Million estimate for the work In
analyzing the bids, it was evident that the bids were higher due to increases in steel and
concrete costs and the need to construct the project in multiple phases to coordinate
construction work with utility and railroad relocations and operations Staff is currently
exploring opportunities to facilitate utility and railroad coordination that could save
construction costs
The following is the current estimate of costs reflecting the recent bid results
Total Project $32,543,042 $4,228,189
Summary of Cost and Funding
Estimated Total Project Cost $32,543,042
Current Appropriations $5,181,250
Additional Appropriations $Y7,361,792
Needed
II. CALIFORNIA INFRASTRUCTURE BANK (RESOLUTION)
Since the bid opening, staff has reviewed a variety of alternatives to cover the anticipated
Project Elements and Costs
Total
Estimated
Cost
Expended to date
1
Design
$1,845,000
$4,228,189
2 Right of Way (County)
$495,000
3 Right of Way (Acquisitions)
$1,568,530
4 Utility Relocations
$3,771,381
5 Railroad Work
$1,652,720
6 MTA Grant Administration
TCSP Grant
$103,983
7
Project Report (required by
TCSP
$50,000
8
Construction Engineering
$1,800,000
9
Construction Contract
$19,239,025
10
Construction Contingency
$1,923,903
11
Infrastructure Bank Loan
Origination Fees and Title
Insurance estimate
$93,500
Total Project $32,543,042 $4,228,189
Summary of Cost and Funding
Estimated Total Project Cost $32,543,042
Current Appropriations $5,181,250
Additional Appropriations $Y7,361,792
Needed
II. CALIFORNIA INFRASTRUCTURE BANK (RESOLUTION)
Since the bid opening, staff has reviewed a variety of alternatives to cover the anticipated
shortfall One option discussed was a low- interest loan of $10 million dollars from the
California Infrastructure and Economic Development Bank Staffs preliminary analysis of
this option indicates that it may be a viable option to address the shortfall of available
funds
Based on a thirty -year term and recent interest rates, the California Infrastructure Bank
has indicated that the loan repayments would be approximately $550,000 per year with a
one -time 0 85% ($85,000) loan origination fee The intended loan repayment source is
Traffic Mitigation Fees It is expected that the amount of traffic Mitigation Fees collected
will vary from year to year based on the amount of development Therefore, in some
years, there may be an excess of fees collected and in other years there may be a
shortfall Two developments that will pay these fees in the future are the Corporate
Campus Development and the Plaza El Segundo Development Please note that the
traffic mitigation fees for the Corporate Campus project have been established by a
current development agreement at the current rate However, those fees have not yet
been paid
The following is a timeline of previous events regarding this loan application
➢ On June 3, 2005, the Preliminary application was submitted to the California
Infrastructure and Economic Development Bank
➢ On June 7, 2005, City Council adopted a Resolution authorizing the submission of
an application to the California State Infrastructure and Economic Development
Bank for the potential funding related to the financing of the Douglas Street Gap
Closure Project
➢ On June 8, 2005, the City received an invitation to submit a full financial
application
➢ On June 10, 2005, staff submitted the financial application and backup
The California Infrastructure and Economic Development Bank has placed this item on
their June 21, 2005 agenda for consideration and approval of the loan
Staff is requesting that City Council adopt the attached Resolution (Attachment A)
authorizing the Mayor to execute the Facility Lease Agreement and the Site Lease
Agreement with the California Infrastructure and Economic Development Bank The use
of a financing lease provides an alternative to issuing bonds to finance capital assets
The lease structure being proposed by the California Infrastructure and Economic
Development Bank is an "Asset Transfer" financing This type of financing is essentially a
method of leveraging a public asset and borrowing all of portion of the value of the City's
equity in that asset to finance other capital improvements The property that is the subject
of the lease in an asset transfer financing is already owned by the City, such as the Police
Station (which was leased in an asset transfer financing to fund improvements at the golf
course) or City Hall which will be leased in the current transaction The proposed lease
financing contemplates that the City will lease City Hall to the Bank for a lump sum
payment and immediately lease it back over a term of years in which to repay the monies
received The funds received by the City will then be placed in the appropriate capital
improvement fund and will be available for the protect
lll. PROGRAM SUPPLEMENT FOR MTA GRANT FUNDING
On July 20, 2001, the City entered into a Letter of Agreement with the Metropolitan
Transportation Authority (MTA) setting the terms and conditions for the receipt of
$9,233,000 in federal funds awarded through the 1999 MTA Call for Projects competitive
grant program This grant requires a 35% local match and is available on a
reimbursement basis These funds will lapse if not obligated to a construction contract by
June 30, 2005 The City has succeeded in placing these funds in the Federal
Transportation Improvement Program (FTIP) and has secured the State of California
Department of Transportation's (Caltran's) authorization to proceed with construction
The Program Supplement (Attachment B) is the final step to be taken before
reimbursement requests can be submitted It adds the project to our Master Agreement
with the State which sets the general terms for the receipt of federal grant funds This is
the third such Program Supplement the City has entered into since the adoption of the
Master Agreement in 1998.
IV. APPROPRIATIONS
Estimated Total Project Cost $32,543,042
Project Elements and Costs
Current Appropriations $5,181,250
Funding Secured and
Recommended for $13,361,792
Appropriation
$27,361,792 total
Additional Funds Pending $14,000,000
External Agency Approval
Total Funding $32,543,042
Total Project $32,543,042 $4,228,189
Project Elements and Costs
Total
Estimated
Cost
Expended to date
1
Design
$1,845,000
$4,228,189
2 Right of Way (County)
$495,000
3 Right of Way (Acquisitions)
$1,568,530
4 Utility Relocations
$3,771,381
5 Railroad Work
$1,652,720
6 MTA Grant Administration
TCSP Grant
$103,983
7
Project Report (required by
TCSP
$50,000
8
Construction Engineering
$1,800,000
9
Construction Contract
$19,239,025
10
Construction Contingency
$1,923,903
11
Infrastructure Bank Loan
Origination Fees and Title
Insurance estimate
$93,500
Total Project $32,543,042 $4,228,189
I General Funds $4,700,000
2 Developer Fee $250,000
3 HUD Grant $231,250
Subtotal $5,181,250
1 TCSP Grant $937,433
On March 1, 2002, The City entered into an agreement with the State of California to
transfer Transportation Community System Preservation (TCSP) funds in the amount
of $138,615 for use on the Douglas Street project On December 6, 2004, the City
entered into another agreement with the State increasing the amount of TCSP funds
to $937,433 This grant requires a 50% local match* and is available on a
reimbursement basis
2 FTA Grant $2,079,661
On October 9, 2000, Congress appropriated $2,079,661 in federal funds through the
Transportation Equity Act for the 21st Century (TEA -21) for an intermodal transit facility
(park and ride lot) in the City This grant requires a 20% local match* and is available
on a reimbursement basis The City entered into an agreement with the Metropolitan
Transportation Authority (MTA) on January 15, 2002 to provide FTA grant
administration for the amount of 5% ($103,983) of the grant amount
3 MTA Grant (STIP) $9,233,000
Appropriation of these funds and approval of State Program Supplement are required
and discussed above These funds are available on a reimbursement basis and
require a 35% local match*
4 Prop C 25% Grant $500,000
On May 3, 2005, the City Council approved a Memorandum of Understanding with the
MTA to provide Proposition C 25% funds in the amount of $500,000 for use on this
project This grant has no matching requirement and is available on a reimbursement
basis These funds must be appropriated for use on this project
5 TEA -21 STPL $500,000
STPL funds are a per capita allocation of TEA -21 funds El Segundo receives
approximately $50,000 in STPL funds annually and these funds are typically allowed
to accumulate for use on a larger project Caltrans is allowing the City to also spend
ahead such that ten years allocation of STPL funds is available at this time These
funds are available on a reimbursement basis and require an 1147% local match
6 CIP Savings General Funds $111,698
CIP savings are funds available due to cost savings on completed Capital
Improvement Program (CIP) projects The current balance of these funds is
$1,360,350 and was generated primarily by cost savings from sewer and storm drain
pump station rehabilitation projects completed over the last several years
Total Funds Secured $18,543,042 1 appropriations are sufficient to
Remaining Balance Needed $14,000,000 Lcover the local match
IV. APPROPRIATIONS FOR CONTINGENCYFUNDING
The funding sources listing below are expected to be available for the project in the
near future
1 TEA -21 Demonstration Funds $4,000,000
Congress continues to contemplate reauthorization of the Federal surface
transportation bill Douglas Street has a $4,000,000 earmark in the bill These funds
will be available on a reimbursement basis for the project upon congressional
approval of the bill A local match is required which will be covered by the
recommended appropriations above
2 Proposed CIEDB Loan $10,000,000
Financing
Staff has submitted an application for funding through the California Infrastructure and
Economic Development Bank (CIEDB) Infrastructure State Revolving Fund The
CIEDB Board will act on the loan at their June 21, 2005, 1 30 P,M meeting It is
proposed that this loan be paid back over thirty -year period with Traffic Mitigation
Fees **
Subtotal Additional Potential $14,000,000
Funding
Total Funding Available
including Funding Pending $32,543,042
Approval
** As was contemplated by the recent amendment to the General Plan's Circulation
Element, the City has begun the process of searching for a consultant to update the
City's traffic mitigation fees imposed on development within the City It is anticipated
that some or all of the increased construction costs will be included in the updated
traffic mitigation fees which will likely require future development to pay its fair share of
the costs associated with the Project Staff anticipates returning to the Council in July
to award a contract to a consultant to assist the City in updating the traffic mitigation
fees
Agreements for the above additional funding are not secured at this time To permit
encumbrance of the construction contract prior to the MTA grant deadline of June 30,
2005, it is recommended that Council appropriate CIEDB loan proceeds and TEA -21
Demonstration funds to the Project contingent on external agency approval of the funds
It is also recommended that Council approve contingency appropriations to be made only
in the event that CIEDB loan proceeds and/or TEA -21 Demonstration funds are not
ultimately available for the Project The contingency appropriations would come from
existing capital project appropriations and in the order as follows
$270,000 Water Enterpnse Funds
$1,248,652 General Funds (CIP Savings)
$1,831,798 Traffic Mitigation funds
$600,000---- Propositon C funds__
$215 000 Gas Tax Funds currently appropriated to the Five -Year
Projects listed above would be put on hold until it is determined whether or not their
appropriations will be needed for Douglas Street
V. AWARD OF CONSTRUCTION CONTRACT
On February 1, 2005, City Council approved the plans specifications for this project and
authorized staff to solicit construction bids. On May 17, 2005, the following bids were
received
1 Sema Construction, Inc $19,259,025
2 Steve P Rados, Inc $19,431,435
3 Brutoco Engineering and Construction, Inc. $22,151,388
The bid submitted by Sema Construction included a cost for an item thatwas deleted from
the bid through an addendum With this cost deleted, the actual bid amount is
$19,239,025. Sema Construction, Inc is a well qualified contractor with verified
successful experience with similar projects of similar magnitude Their contractor's
license is in order and they have the financial capability to undertake this project
Street Reconstruction Project
$152,100
General Funds currently appropriated to the Downtown
Specific Plan
$819,900
General Funds currently appropriated to the City Hall
Remodel Project
$5,945,500
General Funds currently appropriated to the Community
Center Project
$675,750
General Funds currently appropriated to the Aquatics
Master Plan
$2,241,300
General Funds currently appropriated to the Fire Station
No 2 Proiect
Projects listed above would be put on hold until it is determined whether or not their
appropriations will be needed for Douglas Street
V. AWARD OF CONSTRUCTION CONTRACT
On February 1, 2005, City Council approved the plans specifications for this project and
authorized staff to solicit construction bids. On May 17, 2005, the following bids were
received
1 Sema Construction, Inc $19,259,025
2 Steve P Rados, Inc $19,431,435
3 Brutoco Engineering and Construction, Inc. $22,151,388
The bid submitted by Sema Construction included a cost for an item thatwas deleted from
the bid through an addendum With this cost deleted, the actual bid amount is
$19,239,025. Sema Construction, Inc is a well qualified contractor with verified
successful experience with similar projects of similar magnitude Their contractor's
license is in order and they have the financial capability to undertake this project
ATTACHMENT A
RESOLUTION NO
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL
SEGUNDO AUTHORIZING THE EXECUTION AND DELIVERY OF THE
FACILITY LEASE AND THE SITE LEASE BY AND BETWEEN THE CITY
OF EL SEGUNDO AND THE CALIFORNIA INFRASTRUCTURE AND
ECONOMIC DEVELOPMENT BANK AND APPROVING CERTAIN
OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City of El Segundo (the "City ") has accumulated approximately
$10 million to finance the Douglas Street Gap Closure Project (the "Project "), and
WHEREAS, the total projected cost of the Project is approximately $19 4 million,
and
WHEREAS, the City has applied for a Federal appropriation in the amount of $4
million to be used for the Project, in the event that the City does not obtain the
appropriation in full, the City has available and commits to funding an amount not to
exceed $5 million in addition to the amounts already committed to the Project by the
City in Resolution No 4425 adopted on June 7, 2005, and
WHEREAS, at a previous meeting, the City Council of the City adopted its
Resolution authorizing the submission of an application to the California Infrastructure
and Economic Development Bank for financing the Project, and
WHEREAS, the City Council of the City has determined that in order to provide
the balance of the necessary funds to complete the Project the City is proposing to
enter into a Facility Lease, dated as of June 21, 2005, by and between the California
Infrastructure and Economic Development Bank, as lessor and the City, as lessee (the
"Facility Lease "), and
WHEREAS, the City is also proposing to enter into a Site Lease, dated as of
June 21, 2005, by and between the City, as Site Lessor and the California Infrastructure
and Economic Development Bank, as Site Lessee (the "Site Lease "), and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO AS FOLLOWS
SECTION 1 Recitals The City Council of the City finds and declares that the above
recitals are true and correct and incorporates them herein
SECTION 2 Approval of Facility Lease The City Council hereby approves the Facility
Lease in substantially the form thereof on file with the City Clerk together with any
additions thereto or changes therein deemed necessary or advisable by the City
Manager, and execution of the Facility Lease shall be deemed conclusive evidence of
the City Manager's approval of such additions or changes The City Manager and City
Clerk of the City or any Deputy City Clerk of the City are hereby authorized and directed
to execute, attest and affix the seal of the City to the Facility Lease for and in the name
and on behalf of the City The City Council hereby authorizes the delivery and
performance of the Facility Lease
SECTION 3 Approval of Site Lease The City Council hereby approves the Site Lease
in substantially the form thereof on file with the City Clerk together with any additions
thereto or changes therein deemed necessary or advisable by the City Manager, and
execution of the Site Lease shall be deemed conclusive evidence of the City Manager's
approval of such additions or changes The City Manager and City Clerk of the City or
any Deputy City Clerk of the City are hereby authorized and directed to execute, attest
and affix the seal of the City to the Site Lease for and in the name and on behalf of the
City The City Council hereby authorizes the delivery and performance of the Site Lease
SECTION 4 Funding Commitment In the event the City does not obtain funding from
other sources, including any Federal appropriation, to fully pay the cost of the Project,
the City commits to funding an amount not to exceed $5 million in addition to the
amount already committed to the Project by the City in Resolution No 4425 adopted on
June 7, 2005
SECTION 5. Official Action All actions heretofore taken by the officers and agents of
the City with respect to the Facility Lease, the Site Lease and the transactions
contemplated thereby are hereby approved, confirmed and ratified The Mayor, the City
Manager, the Administrative Services Director, the City Attorney, the City Clerk and any
and all other officers of the City are hereby authorized and directed, for and in the name
and on behalf of the City, to do any and all things and take any and all actions, including
execution and delivery of any and all assignments, certificates, requisitions, agreements,
notices, consents, instruments of conveyance, warrants and other documents, which
they, or any of them, may deem necessary or advisable in order to consummate the
transactions contemplated under this Resolution
SECTION 6 County General Plan Consistency The City certifies that the Project is
consistent with the General Plan of the County of Los Angeles
SECTION 7 Effective Date This Resolution shall take effect from and after the date of
approval and adoption thereof
SECTION 8 Certification The Secretary of the Agency shall certify the adoption of this
Resolution
PASSED, APPROVED, AND ADOPTED this _day of June, 2005
KELLY MCDOWELL, MAYOR
ATTEST
CINDY MORTESEN, CITY CLERK
APPROVED AS TO FORM
MARK D. HENSLEY, CITY ATTORNEY
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss
CITY OF EL SEGUNDO }
I, Cindy Mortesen, City Clerk of the City of El Segundo, do hereby certify
that the foregoing Resolution No was adopted at a regular
meeting of the City Council of the City of El Segundo held on June
2005, by the following vote
AYES COUNCILMEMBERS
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS
ABSTAIN COUNCILMEMBERS
CINDY MORTESEN
CITY CLERK
Attachment B
STATE OF CALIFORNIA BUSINESS,TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N STREET
P O BOX 942874, MS# 1
Sacramento, CA 94274 -0001
TDD (916) 654 -4014
(916) 654 -3151
Fax(916)653 -7621
May 17, 2005
Mr Bellur Devaraj
City Engineer
City of El Segundo
350 Main Street
El Segundo, Ca 90245
Dear Mr Devaral
Arnold Schwarzenegger, Governor
File 07- LA- 0 -ESEG
RPSTPL- 5235(008)
Douglas St between Rosecrans Ave
and Alaska Ave
Enclosed are two originals of the Program Supplement Agreement No 003 -M to Administering Agency -State
Agreement No 07 -5235 and an approved Finance Letter for the subject project Please retain the signed Finance
Letter for your records
We have included two new special covenants that allow any funding for future phases of this project be encumbered
upon approval of the "Request for Authorization" and Finance Letter The Program Supplement Agreement need not be
revised for that purpose However, please note that federal funding will be lost if you proceed with future
phase(s) of the project prior to getting the "Authorization to Proceed" with that phase.
Please review the covenants and sign both copies of this Agreement and return both to this office, Office of Project
Implementation - MS1 before 6/15 /05. If the signed Agreements are not received back in this office by 6/15105 and
Caltrans is subsequently unable to execute the Agreement by 6/30105 the Agreements will need to be revised and
resent to the City, Alterations should not be made to the agreement language or funding Attach your local ap ncv's
certified authorizing resolution that clearly identifies the project and the official authorized to execute the agreement A
fully executed copy of the agreement will be returned to you upon ratification by Caltrans No invoices for
reimbursement can be processed until the agreement is fully executed
In accordance to Government Code 16304, Federal funds appropriated by the State budget are available for liquidation
only for seven years and the State funds are available only for five years The attached Finance Letter shows these
deadlines as the "Reversion Date" Please ensure that your invoices are submitted at least 60 days prior to the
reversion date to avoid any lapse of funds If your agency Is unable to seek reimbursement by this date you may
request an extension through a Cooperative Work Agreement (CWA) A CWA is subject to the final approval of the
State Department of Finance If approved, the CWA may extend the deadline for up to one year for federal funds and
up to three years for State funds
Please note that Government Code 16304 does not supersede any other more restrictive expenditure deadlines
Your prompt action is requested If you have questions, please contact your District Local Assistance Engineer
Sincerely,
DENIX ANSIAH, Chief
Office of Project Implementation
Division of Local Assistance
Enclosure
c: DLA AE Project Files
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JGRAM SUPPLEtt MT NO. M003 Date: May 12, 2005
to Location • 07- LA -0-ESEG
ADMINISTERING AGENCY -STATE AGREEMENT Project Number•RPSTPL- 5235(008)
FOR FEDERAL -AID PROJECTS NO. 07 -5235 E.A. Number:074U2554
This Program Supplement hereby incorporates the Administering Agency -State Agreement for Federal Aid which was entered into
between the Administering Agency and the State on 06/10/98 and is subject to all the terms and conditions thereof This Program
Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No
, approved by the Adnumstering Agency on (See copy attached)
The Admuustenng Agency further stipulates that as a condition to the payment by State of any funds derived from sources noted
below obligated to this project, the Administering Agency accepts and will comply with the Special covenants or Remarks setforth
on the following pages
PROJECT LOCATION:
Douglas St between Rosecrans Ave and Alaska Ave
TYPE OF WORK: Grade Separation
LENGTH: O(MILES)
Estimated Cost
Federal Funds
Matching Funds
$12,093,009 00
RPEO $8,173,97500
LOCAL
$2,860,009 00
SB45 STATE
$1,059,025 00
OTHER
$000
CITY OF EL SEGUNDO
By
Date
Attest
Title
STATE OF CALIFORNIA
Department of Transportation
BY
Chief, Office of Project Implementation
Division of Local Assistance
Date
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance
Accounting Officer Gf;% Date $9,233,000 00
Chapter statutes I Item Year Program { BC i Category Fund Source AMOUM
379 2002 2660 -101 -890 2002 -2003 20 30 600 620 S 262042 892 -F
379 2002 2660- 101 -042 2002 -2003 20 30 600 620 S 262042 042 -T
8,173,975 00
1,059,025 00
Program Supplement 07- 5235 -MO03- ISTEA Page 1 of 6
07- LA -0-ESEG
RPSTPL- 5235(008)
SPECIAL COVENANTS OR REMARKS
05/12/2005
1. The ADMINISTERING AGENCY will reimburse the STATE for the
ADMINISTERING AGENCY share of costs for work requested to be
performed by the STATE.
2. The ADMINISTERING AGENCY will advertise, award and administer
this project In accordance with the most current published Local
Assistance Procedures Manual.
3. All project repair, replacement and maintenance involving the
physical condition and the operation of project improvements
referred to in Article III MAINTENANCE, of the aforementioned
Master Agreement will be the responsibility of the ADMINISTERING
AGENCY and shall be performed at regular intervals and as
required for efficient operation of the completed project
improvements.
4. This PROJECT is programmed to receive funding from the State
Transportation Improvement Program (STIP). Funding may be
provided under one or more components. A component(s) specific
fund allocation is required, in addition to other requirements,
before reimbursable work can occur for the component(s)
identified. Each allocation will be assigned an effective date
and identify the amount of funds allocated per component(s).
This PROGRAM SUPPLEMENT has been prepared to allow reimbursement
of eligible PROJECT expenditures for the component(s) allocated.
The start of reimbursable expenditures is restricted to the later
of either 1) the effective date of the Master Agreement, 2)the
effective date of the PROGRAM SUPPLEMENT, or 3)the effective date
of the component specific allocation.
5. STATE and ADMINISTERING AGENCY agree that additional funds made
available by future allocations will be encumbered on this
PROJECT by use of a STATE approved Allocation Letter and Finance
Letter. ADMINISTERING AGENCY agrees that STATE funds available
for reimbursement will be limited to the amount allocated by the
California Transportation Commission (CTC) and/or the STATE.
6. This PROJECT is subject to the timely use of funds provisions
enacted by Senate Bill 45 (SB 45), approved in 1997, and
subsequent CTC guidelines and State procedures approved by the
CTC and STATE, as outlined below:
Program Supple t07- 5235 -M003- ISTEA Page 2 of 6
07- LA -0-ESEG
RPSTPL- 5235(008)
SPECIAL COVENANTS OR REMARKS
05/12/2005
Funds allocated for the environmental & permits, plan
specifications & estimate, and right -of -way components are
available for expenditure until the end of the second fiscal year
following the year in which the funds were allocated.
Funds allocated for the construction component are subject to an
award deadline and contract completion deadline. ADMINISTERING
AGENCY agrees to award the contract within 12 months of the
construction fund allocation and complete the construction or
vehicle purchase contract within 36 months of award.
7. Upon ADMINISTERING AGENCY request, the CTC and /or STATE may
approve supplementary allocations, time extensions, and fund
transfers between components. An approved time extension will
revise the timely use of funds criteria, outlined above, for the
component(s) and allocation(s) requested. Approved supplementary
allocations, time extensions, and fund transfers between
components, made after the execution of this PROGRAM SUPPLEMENT
will be documented and considered subject to the terms and
conditions thereof.
Documentation for approved supplementary allocations, time
extensions, and fund transfers between components, will be a
STATE approved Allocation Letter, Fund Transfer Letter, Time
Extension Letter, and Finance Letter, as appropriate.
B. This PROJECT will be administered in accordance with the CTC STIP
guidelines, as adopted or amended, and the STATE Procedures for
Administering Local Grant Projects in the State Transportation
Improvement Program (STIP), the Local Assistance Program
Guidelines, and the Local Assistance Procedures Manual. The
submittal of invoices for project costs shall be in accordance
with the above referenced publications and the following.
9. The ADMINISTERING AGENCY shall invoice STATE for environmental &
permits, plans specifications & estimate, and right -of -way costs
no later than 180 days after the end of last eligible fiscal year
of expenditure. For construction costs, the ADMINISTERING AGENCY
has 180 days after project completion to make the final payment
to the contractor and prepare the final Report of Expenditures
and final invoice, and submit to STATE for verification and
payment.
Program SuPPI —t07- 5235 -14003- ISTEA Page 3 of 6
07- LA -0-ESEG
RPSTPL- 5235(008)
SPECIAL COVENANTS OR REMARKS
05/12(2005
10.All obligations of STATE under the terms of this Agreement are
subject to the appropriation of resources by the Legislature and
the encumbrance of funds under this Agreement. Funding and
reimbursement are available only upon the passage of the State
Budget Act containing these STATE funds.
ll.The ADMINISTERING AGENCY is required to have an audit in
accordance with the Single Audit Act and OMB A -133 if it receives
a total of $500,000 or more in federal funds in a single fiscal
year. The federal funds received under this project are a part
of the Catalogue of Federal Domestic Assistance (CFDA) 20.205,
Highway Planning & Research. OMB A -133 superceded OMB A -128 in
1996. A reference to OMB A -128 in a Master Agreement (if any) is
superceded by this covenant to conform to OMB A -133.
12.The ADMINISTERING AGENCY agrees that payment of Federal funds
will be limited to the amounts approved by the Federal Highway
Administration (FHWA) in the Federal -Aid Project
Authorization /Agreement or Amendment /Modification (E -76) and
accepts any resultant increases in ADMINISTERING AGENCY funds as
shown on the Finance Letter, any modification thereof as approved
by the Division of Local Assistance, Office of Project
Implementation.
13.Award information shall be submitted by the ADMINISTERING AGENCY
to the District Local Assistance Engineer immediately after the
project contract award. A copy of the award package shall also
be included with the submittal of the ADMINISTERING AGENCY's
first invoice for the construction contract to:
Department of Transportation
Division of Accounting
Local Programs Accounting Branch, MS #33
P. O. Box 942874
Sacramento, CA 94274 -0001
Failure to do so will cause a delay in the State processing
invoices for the construction phase. Please refer to Section
15.7 "Award Package" of the Local Assistance Procedures Manual
and LPP 01 -06.
Program Supplement 07- 5235 -M003- ISTEA Page 4 of 6
07 -LA-0- ESE_3
RPS7PL- 5235(008)
SPECIAL COVENANTS OR REMARKS
05/12/2005
14. STATE and ADMINISTERING AGENCY agree that any additional funds
which might be made available for new phase(s) of work by future
Federal obligations will be encumbered on this PROJECT by use of
a STATE approved "Authorization to Proceed" and Finance Letter.
ADMINISTERING AGENCY agrees that Federal funds available for
reimbursement will be limited to the amounts obligated by the
Federal Highway Administration.
15.ADMINISTERING AGENCY agrees that it will only proceed with work
authorized for specific phase(s) with an "Authorization to
Proceed" and will not proceed with future phase(s) of this
project prior to receiving an "Authorization to Proceed" from the
STATE for that phase(s) unless no further State or Federal funds
are needed for those future phase(s).
16. Any State and Federal funds that may have been encumbered for
this project are only available for disbursement for a period of
five (5) years and seven (7) years, respectively, from the start
of the fiscal year(s) that those funds were appropriated within
the State Budget Act. All project funds not liquidated within
these periods will revert unless an executed Cooperative Work
Agreement extending these dates is requested and is approved by
the California Department of Finance per Government Code Section
16304. The exact date of each fund reversion will be reflected
in the approved finance letter(s) issued for this project.
Notwithstanding the unliquidated sums of project specific State
and Federal funding remaining and available to fund project work,
any invoice for reimbursement that is not submitted to the
Department on or before 60 days after that applicable fixed fund
reversion date will not be paid from that fiscal year's
encumbered funds because all of these unexpended funds will be
irrevocably reverted by the Department's Division of Accounting
on that date.
Pursuant to a directive from the State Controller's Office and
the Department of Finance, the last date to submit invoices for
reimbursed work in each fiscal year is May 15th in order for
payment to be made out of those then current appropriations.
Project work performed and invoiced after May 15th will be
reimbursed only out of available funding that might be encumbered
in the subsequent fiscal year, and then only when those funds are
Program Supplement07- 5235 -MO03- ISTEA Page 5 of 6
07- LA -0-ESEG
RPS-fPL- 5235(008)
SPECIAL COVENANTS OR REMARKS
05/12/2005
actually allocated and encumbered as authorized by the California
Transportation Commission and the Department's Accounting Office.
17. "ADMINISTERING AGENCY certifies that neither the ADMINISTERING
AGENCY nor its principals are suspended or debarred at the time
of the execution of this agreement. ADMINISTERING AGENCY agrees
that it will notify the STATE immediately, in the event a
suspension or a debarment happened after the execution of this
agreement."
Program S"PPIe t07- 5235 -M003- ISTEA Page 6 of 6