title
ADOPT RESOLUTION TO AUTHORIZE THE CITY MANAGER TO EXECUTE A MASTER AGREEMENT FOR STATE-FUNDED PROJECTS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager to execute a Master Agreement Administering Agency-State Agreement for State-Funded Projects.
2. Authorize the City Manager to execute all future Program Supplement Agreements, Fund Exchange Agreements, and Fund Transfer Agreements for State-Funded Projects, including any amendments, that arise subsequent in action to execution of the Master Agreement.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
body
Summary
The previous Master Agreement Administering Agency-State Agreement for State-Funded Projects (Master Agreement) was approved by Council on August 12, 2008, by Resolution 08-0334 which also authorized the City Manager to execute all Program Supplement Agreements. The California Department of Transportation (Caltrans) is now requiring the City to adopt a new Master Agreement for State-Funded Projects. Along with the new Master Agreement, it is requested that the City Manager be authorized to sign Program Supplement Agreements, Fund Exchange Agreements, and Fund Transfer Agreements on behalf of the City to expedite the process of receiving State funds.
DISCUSSION
Background
On August 12, 2008, Resolution No. 08-0334 authorized the City Manager to execute the Master Agreement for State-Funded Projects. The Master Agreement outlines the financial, administrative, right-of-way, and maintenance requirements that must be met to receive State funding. This Agreement is executed only once and remains in place for the life of the program. However, periodically the Master Agreement must be revised to account for changes in laws or revisions to program guidelines.
Resolution No. 08-0334 also authorized the City Manager to execute all Program Supplement Agreements. The Program Supplement Agreement is a project specific agreement executed at the beginning of each project. The Program Supplement Agreement designates the funds available, matching funds, and other project specific information. The Master Agreement has no force or effect for a specific project until the Program Supplement Agreement is executed.
Present Situation
Public Works uses a variety of State grants for funding transportation related projects within the Capital Improvement Program. State-funded programs administered by Caltrans will be authorized through this Master Agreement. State-funded programs include, but are not limited to:
• State/Local Transportation Partnership Program
• Environmental Enhancement/Mitigation Program
• State Transportation Improvement Program
• Safe Routes to School Program
Grants from these programs typically reimburse 80 percent to 100 percent of eligible project costs. The State grant process administered by Caltrans has become more complex with each funding cycle, as additional regulations require additional forms to be certified by the receiving agency. The receipt of State funds on a grant reimbursable basis now require the execution of an original Master Agreement, a Program Supplement Agreement, and/or a Fund Transfer Agreement.
Caltrans is now requiring the City to adopt a new Master Agreement for State-Funded Projects. As we have done previously, along with the new Master agreement, staff recommends Council to authorize the City Manager to sign Program Supplement Agreements, Fund Exchange Agreements, and Fund Transfer Agreements on behalf of the City to expedite the process of receiving State funds.
Staff recommends Council adopt a resolution authorizing the City Manager to execute a new Master Agreement. This same resolution will continue to authorize the City Manager to enter into future Program Supplement Agreements, Fund Exchange Agreements, and/or Fund Transfer Agreements for State-Funded Projects, including any amendments with Caltrans, and to take other appropriate actions to carry out the purpose and intent of this resolution.
FINANCIAL SUMMARY
There is no immediate financial impact and no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.