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APPROVE RESOLUTION AUTHORIZING EXECUTION OF MASTER AGREEMENT ADMINISTERING AGENCY - STATE AGREEMENT FOR FEDERAL-AID PROJECTS AND ALL FUTURE PROGRAM SUPPLEMENT AGREEMENTS
recommended action
RECOMMENDATION
It is recommended that the City Council approve a resolution authorizing the City Manager to:
1. Execute a revised Master Agreement Administering Agency - State Agreement for Federal-Aid Projects (Master Agreement) with the California Department of Transportation (Caltrans).
2. Execute all future Program Supplement Agreements to the Master Agreement, including any amendments.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City utilizes federal and State funding to help improve its roads, bridges, and infrastructure. Caltrans oversees the use of the funding on behalf of the Federal Highways Administration (FHWA), and the City is the Administering Agency for the projects. The City is required to enter into two principle agreements when receiving these funds: a Master Agreement and a project specific Program Supplement Agreement. On January 30, 2007, Council approved the last Master Agreement (Resolution No. 07-0044), and authorized the City Manager to execute all Program Supplement Agreements (Resolution No. 07-0045). Caltrans is now requiring the City to enter into a new revised Master Agreement to continue receiving federal transportation funding. This will also require approval of a new resolution authorizing the City Manager to execute the corresponding Program Supplement Agreements to the Master Agreement.
DISCUSSION
Background
Public Works uses a variety of federal grants for funding transportation related projects in the Capital Improvement Program. Federal programs administered by Caltrans are among the most common. Other federal funding programs are administered by the San Joaquin Council of Governments.
The most common federal transportation funding programs include:
§ Active Transportation Program
§ Highway Safety Improvement Program
§ Regional Surface Transportation Program
§ Congestion Mitigation and Air Quality
§ Highway Bridge Program
§ Railroad Funding
§ Transportation Enhancements
§ Safe Routes to School
§ Federal Discretionary Programs
§ Emergency Relief
Caltrans oversees the use of federal funding on behalf of FHWA, and the City is the Administering Agency for projects within the City. The City is required to enter into two principle agreements to be eligible to receiving these funds. First, the City must enter into a Master Agreement to establish general terms and conditions applicable to the Administering Agency or when receiving the funds for a designated project. This agreement is the Master Agreement, which is modified every five to 10 years due to changes in legislation, programs, or other requirements. The second agreement is the Program Supplement Agreement. This latter agreement is a project specific agreement issued to the City for each project, and contains other delivery and funding terms for the project that supplement the Master Agreement.
On January 30, 2007, Council approved the last Master Agreement (Resolution No. 07-0044), and authorized the City Manager to execute a Master Agreement for federal-aid projects, and to sign Program Supplement Agreements (Resolution No. 07-0045).
Present Situation
Caltrans revised the federal Master Agreement (Exhibit 1 to the Resolution) to reflect recent changes to the Code of Federal Regulations (2 C.F.R. 200). These changes consolidated some Office of Management and Budget directives and remove other regulations. This new federal Master Agreement will be required when agencies request an authorization for a new project. Caltrans will issue revised Program Supplement Agreements to the Master Agreement for existing projects that request additional funds or the next phase of work. New Program Supplement Agreements will be issued for new federally funded projects.
Staff recommends Council adopt a resolution authorizing the City Manager to approve a revised Master Agreement (Exhibit 1 to the Resolution) with Caltrans. Staff further recommends Council the resolution authorizing the City Manager to execute all future Program Supplement Agreements to the Master Agreement, including any amendments.
FINANCIAL SUMMARY
No financial appropriations are required with this staff report. All funding associated with grants are appropriated either in the normal Capital Improvement Program Budget or when out of cycle, through project specific Council action.