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HomeMy WebLinkAboutStaff Report 3.B 02/22/2016F DATE: W FROM: Agenda Item #3.B February 22, 2016 Honorable Mayor and Members of the City Council through City Manager Dan St. John, F.ASCE — Director, Public Works & Utilities Joe Rye — Transit Manager SUBJECT: Resolution to Adopt Certifications and Assurances and Designation of Authorized Agent to Accept Low Carbon Transit Operations Program Funding ( LCTOP) Through the Metropolitan Transportation Commission (MTC) and Caltrans and Authorizing the City Manager to Execute the Application and Grant Funding Agreement Documents; and a Resolution Authorizing Submittal of an LCTOP Cycle 3 Application for Operating Funds for Weekday Afternoon Service Enhancements, and Authorizing the City Manager to Accept Grant Funds on Behalf of the City. RECOMMENDATION It is recommended that the City Council approve a Resolution to Adopt Certifications and Assurances and Designation of Authorized Agent to Accept Low Carbon Transit Operations Program Funding ( LCTOP) Through the Metropolitan Transportation Commission (MTC) and Caltrans and Authorizing the City Manager to. Execute All Required Documents of the LCTOP Program and Any Amendments Thereto; and a Resolution Authorizing Submittal of an LCTOP Cycle 3 Application for Operating Funds for Weekday Afternoon Service Enhancements, and Authorizing the City Manager to Accept Grant Funds on Behalf of the City. BACKGROUND The LCTOP is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 under Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility with a priority on serving disadvantaged communities. Approved LCTOP projects that reduce greenhouse gas emissions will support new or expanded bus or rail services, or intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other operational costs. DISCUSSION MTC has proposed distribution of new program funding based largely upon existing State Transit Assistance (STA) formulas, which are indexed to population and fare revenues generated by transit operators. In the first two years of the LCTOP, emphasis was placed on revenue generation in lieu of population, which did not work to Petaluma's advantage. Working cooperatively with other small transit operators in the region and MTC staff, a more advantageous distribution formula was agreed upon for Cycle 3. For Cycle 3, Petaluma is programmed to receive a total of $62,410 with $59,618 based on population and $2,792 based on revenue. Projections for future allocations to Petaluma are approximately $100,000 annually. As a condition of LCTOP program funding, all transit operators are required to adopt the programs Certifications and Assurances and to designate an Authorized Agent to execute grant documents and funding allocations. The Certifications and Assurance obligate the City to comply with specified project administration, reporting, cost principle, and records retention requirements, which are typical for federally and state funded grant programs. The FY 2016 -17 allocation of $62,410 is proposed to be expended on additional bus service in the late afternoons on weekdays. This is the highest priority project in the draft 2016 Short Range Transit Plan and improves both service frequency in the PM peak hours and on -time performance which reduces missed transfer connections. The improvements will be delivered in FY 2017 to meet the requirements to expend these funds in a timely fashion. These additional new funds will assist Petaluma Transit in providing a high level of transit service and increasing ridership in future years while maintaining reserves to avoid service reductions during future economic downturns. At Caltrans' direction, there are two separate resolutions on this item. The proposed action meets Council Goals: "Improve and Enhance Fiscal Stability and Sustainability ". FINANCIAL IMPACTS A dramatic increase over LCTOP funding programmed to Petaluma last year, the Cycle 3 LCTOP funding of $62,410 is projected to grow to near $100,000 to Petaluma Transit annually by 2020. ATTACHMENTS 1. Resolution Adopting LCTOP Certifications and Assurances and Authorized Agent 2. Resolution Authorizing Submittal of LCTOP Cycle 3 Application 3. LCTOP Authorized Agent Form 4. LCTOP Certifications and Assurances Form 2 Attachment 1 RESOLUTION TO ADOPT CERTIFICATIONS AND ASSURANCES AND DESIGNATION OF AUTHORIZED AGENT TO ACCEPT LOW CARBON TRANSIT OPERATIONS PROGRAM FUNDING ( LCTOP) THROUGH THE METROPOLITAN TRANSPORTATION COMMISSION AND CALTRANS AND AUTHORIZING THE CITY MANGER TO EXECUTE ALL REQUIRED DOCUMENTS OF THE LCTOP PROGRAM AND ANY AMENDMENTS THERETO WHEREAS, the City of Petaluma is an eligible project sponsor and may receive state funding for the Low Carbon Transit Operations Program ( LCTOP) now or sometime in the future for transit projects; and WHEREAS, the statutes related to state - funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 (2014) named the Department of Transportation (Department) or (Caltrans) as the administrative agency for the LCTOP; and WHEREAS, the Department (Caltrans) has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies); and WHEREAS, the City of Petaluma wishes to delegate authorization to execute requisite documents and any amendments thereto to the City Manager. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma authorizes: 1. That the City as fund recipient agrees to comply with all conditions and requirements set forth in the LCTOP Certifications and Assurances document, which is hereby incorporated by reference as part of this resolution, and applicable statutes, regulations and guidelines for all LCTOP funded transit projects in accordance with the LCTOP Guidelines dated December 19, 2014. 2. That the Mayor of the City of Petaluma is hereby authorized and directed to execute the LCTOP Authorized Agent Form attached herein, designating the City Manager as the Authorized Agent of the City for purposes of the LCTOP and authorizing the execution of all required documents of the LCTOP program and any amendments thereto. Attachment 2 RESOLUTION TO AUTHORIZE SUBMITTAL OF A LCTOP CYCLE 3 APPLICATION FOR OPERATING FUNDS FOR WEEKDAY AFTERNOON SERVICE ENHANCEMENTS, AND AUTHORIZING THE CITY MANAGER TO ACCEPT GRANT FUNDS ON BEHALF OF THE CITY WHEREAS, the City of Petaluma is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program ( LCTOP) now or sometime in the future for transit projects; and WHEREAS, the statutes related to state - funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 (2014) named the Department of Transportation (Department) or (Caltrans) as the administrative agency for the LCTOP; and WHEREAS, the Department (Caltrans) has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies); and WHEREAS, the City plans to use the $62,410 allocated from Cycle 3 for Operating Funds for Weekday Afternoon Service Enhancements, an eligible expenditure of LCTOP funds, ( "Project "); and WHEREAS, the Project is exempt from the requirements of the California Environmental Quality Act ( "CEQA ") pursuant to section 15301 of the CEQA Guidelines because it involves minor alterations of existing public facilities with negligible or no expansion of use; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma 3. Designates the City Manager, as the Authorized Agent of the City for purposes of the LCTOP program, to execute the Certifications and Assurances, and to execute all required documents of the LCTOP program and any amendments thereto. 4. Certifies that the City as fund recipient agrees to comply with all conditions and requirements set forth in the LCTOP Certifications and Assurances document, which is hereby incorporated by reference as part of this resolution, and applicable statutes, regulations and guidelines for all LCTOP funded transit projects in accordance with the LCTOP Guidelines dated December 19, 2014. 19 5. Authorizes and directs the City Manager to accept on behalf of the City $62,410 in Cycle 3 funding of the LCTOP for operating funds for weekday afternoon service enhancements in accordance with all applicable LCTOP requirements. 5 Attachment 3 AS THE Authorized Agent City Manager OF THE City of Petaluma City of Petaluma I hereby authorize the following individual(s) to execute for and on behalf of the named Regional Entity /Transit Operator, any actions necessary for the purpose of obtaining Low Carbon Transit Operations Program (LCTOP) funds provided by the California Department of Transportation, Division of Rail and Mass Transportation. This form is valid for Fiscal Year 2014 -2015 funds. If there is a change in the authorized agent, the project sponsor must submit a new form. This form is required even when the authorized agent is the executive authority himself. I understand the City must provide a resolution approving the Authorized Agent. The City Resolution appointing the Authorized Agent is attached. _John C Brown City Manager OR (Name and Title of Authorized Agent) OR (Name and Title of Authorized Agent) (Name and Title of Authorized Agent) (Print Name) (Signature) Approved this (Title) day of , 20 Attachment: Board Resolution approving Authorized Agent rel Low Carbon Transit Operations Program (LCTOP) Certifications and Assurances Project Sponsor: Agency Name: Effective Date of this Document: City of Petaluma City of Petaluma Attachment 4 The California Department of Transportation (Department) has adopted the following certifications and assurances for the Low Carbon Transit Operations Program. As a condition of the receipt of LCTOP funds, project sponsors (both Project Lead and Contributing Sponsors) must comply with these terms and conditions. A. General (1) The project sponsor agrees to abide by the current LCTOP Guidelines and applicable legal requirements. (2) The project sponsor must submit to the Department a signed Authorized Agent form designating the representative who can submit documents on behalf of the project sponsor and a copy of the board resolution appointing the Authorized Agent. B. Project Administration (1) The project lead certifies that required environmental documentation is complete before requesting an allocation of LCTOP funds. The project lead assures that projects approved for LCTOP funding comply with Public Resources Code § 21100 and § 21150. (2) The project lead certifies that when LCTOP funds are used for a transit capital project, that the project will be completed and remain in operation for its useful life. (3) The project lead certifies that it has the legal, financial, and technical capacity to carry out the project, including the safety and security aspects of that project. (4) The project lead certifies that they will notify the Department of pending litigation, dispute, or negative audit findings related to the project, before receiving an allocation of funds. (5) The project lead must maintain satisfactory continuing control over the use of project equipment and facilities and will adequately maintain project equipment and facilities for the useful life of the project. 7 (6) Any interest the project lead earns on LCTOP funds must be used only on approved LCTOP projects. (7) The project lead must notify the Department of any changes to the approved project with a Corrective Action Plan (CAP). (8) Under extraordinary circumstances, a project lead may terminate a project prior to completion. In the event the project lead terminates a project prior to completion, the project lead must (1) contact the Department in writing and follow -up with a phone call verifying receipt of such notice; (2) pursuant to verification, submit a final report indicating the reason for the termination and demonstrating the expended funds were used on the intended purpose; (3) submit a request to reassign the funds to a new project within 180 days of termination. (9) Funds must be encumbered and liquidated within the time allowed. C. Reporting (1) The.project lead must submit the following LCTOP reports: a. Semi - Annual Progress Reports by February 15th and August 15th each year. b. A Final Report within six months of project completion. c. The annual audit required under the Transportation Development Act (TDA), to verify receipt and appropriate expenditure of LCTOP funds. A copy of the audit report must be submitted to the Department within six months of the close of the year (December 31) each year in which LCTOP funds have been received or expended. (2) Other Reporting Requirements: ARAB is developing funding guidelines that will include reporting requirements for all State agencies that receive appropriations from the Greenhouse Gas Reduction Fund. Caltrans and project sponsors will need to submit reporting information in accordance with ARAB's funding guidelines, including reporting on greenhouse gas reductions and benefits to disadvantaged communities. D. Cost Principles (1) The project lead agrees to comply with Title 2 of the Code of Federal Regulations 225 (2 CFR 225), Cost Principles for State and Local Government, and 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. (2) The project lead agrees, and will assure that its contractors and subcontractors will be obligated to agree, that: a. Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual project cost items and b. Those parties shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Every sub - recipient receiving LCTOP funds as a contractor or sub - contractor shall comply with Federal administrative procedures in accordance with 49 CFR, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. (3) Any project cost for which the project lead has received funds that are determined by subsequent audit to be unallowable under 2 CFR 225, 48 CFR, Chapter 1, Part 31 or 49 CFR, Part 18, are subject to repayment by the project lead to the State of California (State). All projects must reduce greenhouse gas emissions, as required under Public Resources Code section 75230, and any project that fails to reduce greenhouse gases shall also have its project costs submit to repayment by the project lead to the State. Should the project lead fail to reimburse moneys due to the State within thirty (30) days of demand, or within such other period as may be agreed in writing between the Parties hereto, the State is authorized to intercept and withhold future payments due the project lead from the State or any third -party source, including but not limited to, the State Treasurer and the State Controller. E. Record Retention (1) The project lead agrees, and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred project costs and matching funds by line item for the project. The accounting system of the project lead, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of the project lead, its contractors and subcontractors connected with LCTOP funding shall be maintained for a minimum of three (3) years from the date of final payment and shall be held open to inspection, copying, and audit by representatives of the State and the California State Auditor. Copies thereof will be furnished by the project lead, its contractors, and subcontractors upon receipt of any request made by the State or its agents. In conducting an audit of the costs claimed, the State will rely to the maximum extent possible on any prior audit of the project lead pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by the project lead's external and internal auditors may be relied upon and used by the State when planning and conducting additional audits. (2) For the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with the performance of the project lead's contracts with third parties pursuant to Government Code § 8546.7, the project sponsor, its contractors and subcontractors and the State shall each maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire project period and for three (3) years from the date of final payment. The State, the California State Auditor, or any duly authorized representative of the 9 State, shall each have access to any books, records, and documents that are pertinent to a project for audits, examinations, excerpts, and transactions, and the project lead shall furnish copies thereof if requested. (3) The project lead, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by the State, for the purpose of any investigation to ascertain compliance with this document. F. Special Situations The Department may perform an audit and/or request detailed project information of the project sponsor's LCTOP funded projects at the Department's discretion at any time prior to the completion of the LCTOP. I certify all of these conditions will be met. JOHN C. BROWN, CITY MANAGER (AUTHORIZED AGENT) City of Petaluma 10