SR-062596-6K
. C~. JU~ 5*996
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EPWM:CP:AA:RS:ST s'\sp1336 cc1336 Santa Monica, Callfornia
CouLc::..l Meetlng: J"Jne 25, 1996
TO: Mayor and City Councll
FROY'! Cl':.y Staff
S"JBJECT: Reccnmendatlon to A~thorlze the Clty Ma~ager to Negotiate
and Execute a Cooperatlve Agreement wlth the State of
Callfornla, Department of Transportatlon, to Relinqulsh
Portlons of Lincoln Boulevard and Santa Monica Boulevard
frOT the Santa Monlca Freeway (Route 10) to the Easterly
Clty Limlts at Centlnela Avenue and Receive $4,707,000
from C~TRANS for Necessary Improvements and Malntenance
I::-::rcductlon
ThlS report recommends that the Clty Cauncll authorlze the Clty
Manager to negotiate and execute a cooperatlve agreement wlth the
Sta::e of Call::ornia, Denartment of Transportation ( CALTRANS) , to
re~ln::ru::..st. a po~tion of State 2 from the Santa Monlca Freeway
(Ro-.lte 18) ::0 the easterly City llmlts at Centlnela Avenue and
recelve $4,7C7,OO8 f~om CALTRANS for necessary urprovements ,
ana
malr:.::enar..ce The portlon of State Route 2 proposed to be
re~inaulsl:eci lS Llncoln Boulevard fro'l' Route 10 to Santa Moruca
Boulevar:i a::1d Sar:.ta Monlca Boulevard from Lincoln Boulevard
easterly to ':.he Clty lirn ts at Centinela Avenue (thlS comprises
approxurately 2 3 total mlles) .
Backoround
In Jar..uary :"990, the City recelved a letter fro~ CALTRANS regardir..g
the POSS::..bllity of the State rellnqulshlng control and ownership of
Santa Monlca Boulevard (State Route 2) to the east City llffilts at
Centlnela Avenue, and Lincoln Boulevard (State Route 1) from the
Santa MODlca Freeway (Ro....:.te 10) to Sar:ta Monica Boulevard. In
JUN 2 5 1996
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excha:lge, the State was w1ll1ng to prov1de funds to the C1ty to
1Tprove and ma1ntai~ the highway so that the roadway would be 1n a
cond1tlon acceptable to the C1ty.
By tak1ng ownershlp control, the C1ty would be able to better serve
resldents anc ~erchants by: 1) d1rectly perform1ng mod1f1cat1ons to
the road to meet local trafflc needs; 2) rev1ew1ng and approvlng
appl1cable p~bllC works permlts wlthout CALTRANS's review, and 3)
app~y~ng nore strlngent C1ty street construction standards instead
of State street constructlon standards. The proposed payment of
$4,707,000 would allow the city to make some improvements
lmnediate::"y and mair:tain the street at a higher level in future
years. Also, 1t 1S llkely that the City will be able to leverage
t::te funds rece:..ved by using them as matching funds for Federal
street\h1ghway grant funds.
In 1592, an i2depeLdent englneerlng flrm cond~cted a relinquishment
study to assess areas of roadway surface damage and ldentify
circ~la~lon and ~raffic mitigation measures 1n need of lmprovement
as part of the rellnquishment. The method used for this analysis
was approved by both the City and CALTRANS. The scope of the study
lncl~ded a survey of parkway, roadway, and ut1l1ty conditions. Any
infrastLlcture element not meetlng current design standards for a
1 Q-year 11fe was Jdentlfied as deflClent. The various deflc1encles
were tl:en tabulated and repalr costs were estimated and submitted
to CA"I..., TRA..\fS for cons1deratlon. Some of the specific types of
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deficlenCles addressed In the study included old street llghtlng
systerrs, deterlorated bus pads, poor dralnage systems, damaged
pavements, ciefectlve curbs, gutters, and sldewalks The consultlng
engiLeeri~g firT determined that the cost of necessary lmprovements
and malnten.ance would be approximately $3,200,000
On the basls of the consultlDg Ilrm's report, on September 9, 1994,
CALTRANS submitted a draft Cooperatlve Agreement to the Clty to
negctlate and execc.te for a S3.2 mlllion relinqulshment fee.
Because the state hlghway crosses through several nelghboring
C~-::les (~os Angeles, Beverly Hills, West Hollywood) , Clty staff
lL~tlated several interclty meetlngs to compare negotiating pOlnts
a::d strategles. As a result of these meetlngs and subsequent
::.egotlatlons w~th CALTRANS, UTIlt costs were standardlzed across
c~tles and areas of work were included lD the proposal, increaslng
-::he offer to Sa~-::a Monlca by more than $1. 5 mllllon for a total of
$4,707,00'0.
3udget!Flna~c~al ImDact
T:te C~tyls Street Malntenance D1V1Slon spends about $15,000
annua~ly for street repalrs to Santa Monica Boulevard Pursuant to
a ::"'969 agreeT:en t with the State, the City lS able to recoup an
establ~s"ted pe::: nile a'llount of actual annual expendltures. The
State has therefore relIT.bursed the Clty approximately $4,400
annua~ly, Wt:lC:: 16 deposlted lnto the "State and Hlghway Road Bed
Mai.ntenance" revenue account Nhlle the Clty would lose this
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ar..:::ual relmDUrse't'.ent for malntenance, the $4,707,000 more than
offsets antlclpated futu~e relmbursements for malntaining the
highway
To ~npleme~t the reco~mended rellnquishment, the City Councll must
app:::::-cve :.he recelpt of a lump sum payment of $4,707,000 from
CALTRANS to be held In a deferred revenue account In the General
Funci u::tll ma:..ntenance and improvement expendltures for these
streets are approprlated by City Counell from time to time pursuant
to the award of ~alntenance and repalr contracts
?ecoIT'TIendation
It is recommended that the Clty Councll authorize the City Manager
to negot:..ate and execute a cocperatlve agreement with the State of
Califor~la, Depar~nent of T:::::-ansportation (CALTRANS) , to relinqulsh
a port:..on of State Route 2 from the Santa Monica Freeway (Route 10 )
to the easterly Clty limits at Centlnela Avenue, recelve $4,7071000
froM CAL':'RANS for necessary street lmprovements and maintenance;
a:::d approve the budget adJustments as descrlbed In the
Budget/Flnanclal ::;:mpact sect laD of the report.
At :'achTle:1t : Proposed Agreement wlth CALTRANS
Prepa::-ed 6'1: Cralg ?er:<l:ls, Dlrecto~ of ~:lvlronmental & PubllC Works
Ha::.agerrLe~t
~. - t . P. S. , Clty Englnee::-
i....::: :''::'O:lY An 1 C.::.,
Ro::: :::J.chlwakl1 Cl t.y ?ar<H:.g & Tra==:..c Englr.eer
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07-LA-2 0.0/2.32
In Santa Monica from
Lincoln Boulevard to
Centinela Avenue
07227-1187AK
DISTRICT AGREEMENT NO. 4299
COOPERATIVE AGREEMENT
THIS AGREEMENT, entered into on , 19 is
between the state of california, acting by and through its
Department of Transportation, referred to herein as STATE, and
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CITY OF SANTA MONICA, a
political subdivision of the
state of California referred
to herein as "CITY".
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DISTRICT AGREEMENT NO. 4299
Recitals
1. STATE and CITY, pursuant to Streets and Highways Code
section 73, are authorized to enter into a Cooperative
Agreement providing for relinquishment to CITY of a portion
of state Highway within CITY.
2. STATE desires to relinquish to CITY that portion of Route 2
(Santa Monica Boulevard) from Route 10 Freeway on Lincoln
Boulevard to the east city limits at Centinela Avenue (the
Propert.y) as more particularly described in Exhibit "A",
attached hereto and incorporated by reference. CITY agrees
to accept said relinquishment, subject to the terms and
conditions stated herein.
3 . LegiSlative enactment will be required to delete said
portion of Route 2 from the state Highway System and process
is underway by CITY to accomplish it.
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4. CITY is ~ursuing the proposed deletion and a resolution from
the CITY supporting the proposal is anticipated.
5. This portion of Route 2 will cease to be a State Highway
- when the California Transportation Commission (CTC)
relinquishes that portion to the City.
6. Sf ATE and CITY have reached an understanding on the work
nec~ssary to place the Property in a condition of good
repair, and agreed to the amount of S4!707.000 as the
estimated cost to perform such work. The agreed upon amount
is itemized in Exhibit "B" which is attached hereto and made
a part of this Agreement.
7. STATE is willing to make a lump sum payment in the amount of
S4.707.000 (the "lump sum payment") to CITY to satisfy
STATE's obligation to place the Property in a condition of
good repair.
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8. CITY is willing to accept such lump sum payment as STATE's
total responsibility to place the Property in a condition
of good repair for the purpose of relinquishing the Property
to CITY.
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DISTRICT AGREEMENT NO. 4299
9. Relinquishment will occur upon satisfaction of the
following: ( 1) payment of the lump sum to city;
(2) approval by the California Transportation commisslon
(CTC) of a resolution of relinquishment; and (3 ) recording
of such resolution in the Los Angeles county Recorder's
Office. Upon such approval and recording of such
resolutlon, and CITY's acceptance of relinquishment, the
Property shall cease to be a state Highway.
10. The parties hereto desire to define herein the terms and
conditions under which rellnquishment is to be accomplished.
Section I
CITY' AGREES:
1. To accept relinquishment of the Property upon receipt of the
above described lump sum payment from STATE and approval by
the CTC of a resolution of relinquishment and recording of
said resolution in the Los Angeles County Recorder's Offlce.
2. Payment of STATE's lump sum contribution of $4.707,000 to
CITY fully meets STATE's responsibility to place the
property in a condition of good repalr and CITY shall accept
relinquishment and all rights. title and interest in the
property, without any additional cost to STATE.
3. Except as provided in Section III, subsection 5 of this
Agreement, to accept ownership, maintenance, operation and
liability of the relinquished highway, upon the adoption
filing and recording of the Resolution of Relinquishment by
the CTC, and upon CITY's receipt of STATE's payment.
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DISTRICT AGREEMENT NO. 4299
Section II
STATE AGREES:
1. To make a lump sum payment, after allocation of funds and
approval of the resolution of relinquishment by the CTC and
deletion of the Property from the State Highway System of
S4~707~OOO to CITY. The payment amount represents STATE's
final and only payment toward the cost of placing the
Property in a condition of good repair for the purpose of
relinquishment.
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2 . To transfer to CITY, upon City's acceptance of the
relinquishment of the Property, all records and files for
such relinquished section of highway, including, but not
limited to, plans, survey data and right of way information.
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Section III
IT .IS MUTUALLY AGREED:
1. STATE and CITY enter into this Agreement with the
understanding that the terms and conditions entered herein
in this Agreement are contingent on that section of Route 2
described in Article 2 of Recitals being deleted from the
state Highway System by Legislative enactment. When
Legislative enactment is accomplished, the terms and
conditions herein will take effect on the effective date the
highway is deleted from the state Highway System. In the
event Legislative enactment does not take placet this
Agreement shall terminate and STATE and CITY will have no
further obligations.
2. All obligations of STATE under the terms of this Agreement
are subject to the appropriation of resources by the
Legislature and the allocation of resources by the CTC.
3. CITY shall have no obligation to accept the relinquishment
of the property until the lump sum payment described above
is paid to CITY.
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DISTRICT AGREEMENT NO. 4299
4. Neither STATE nor any officer or employee thereof is
responsible for any damage or liability occurring by reasons
of anything done or omitted to be done by CITY under or in
connection with any work, authority or jurisdiction
delegated to CITY under this Agreement. It is understood
and agreed that, pursuant to Government Code section 895.4,
CITY shall fully defend, indemnify and save harmless the
state of California, its officers and employees from all
claims, suits or actions of every name, kind and description
brought for or on account of injury (as defined in
Government Code section 810.8) occurring by reason of
anything done or omitted to be done by CITY under or in
connection with any work, authority or jurisdiction
delegated to CITY under this Agreement.
5. Neither CITY nor any officer or employee thereof is
responsible for any damage or liability occurring by reasons
of anything done or omitted to be done by STATE under or in
connection with any work, authority or jurisdiction
delegated to STATE under this Agreement. Furthermore,
neither CITY nor any officer or employee thereof is
responsible for any damage or liability occurring from the
STATE's willful misconduct or negligent acts, errors and
omissions in connection with the Property, during the time
. period prior to the CITY's acceptance of the relinquishment
of the Property. It is understood and agreed that, pursuant
to Government Code section 895.4, STATE shall fully defend,
indemnify and save harmless the CITY, its officers and
employees from: (1) all claims, suits or actions on
account of injury (as defined in Government Code Section
810.8) occurring by reason of anything done or omitted to be
done by STATE under or in connection with any work,
authority or jurisdiction delegated to STATE under this
Agreement and (2) all claims, suits or actions of every
name, kind and description arising or accruing in connection
with the STATE's willful misconduct or negligent acts,
errors or omissions prior to the CITY's acceptance of the
relinquishment of the Property.
6. No alteration or variation of theUterms -ofUtlifs- -Agreement
shall be valid unless made in writing and signed by the
parties hereto and no oral understanding or agreement not
incorporated herein shall be binding on any of the parties
hereto.
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DISTRICT AGREEMENT NO. 4299
7. This Agreement shall terminate upon sat1sfaction of all of
the following conditions: (1) recording in the Los Angeles
County Recorder's Office of the relinquishment resolution
for the property; and (2) receipt by CITY of the lump sum
payment from STATE as described in this Agreement and CITY's
acceptance of relinquishment of the property.
STATE OF CALIFORNIA CITY OF SANTA MONICA
Department of Transportation
JAMES VAN LOBEN SELS By:
Director of Transportation
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By: Attest:
KEN STEELE City Clerk
District Director
District 7
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Approved as to Form and Procedure: Approved as to Form:
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Attorney
Department of Transportation
certified as to Funds:
Manager, Office of Budget NOTE:
A certified copy of the
Approved as to Procedure: resolution authorizing
the above signatures
must be submitted with
~he executed agreement.
Account1ng Administrator
Approved as to Form:
~~kfz-<-
MARSHA JONE" MOUTRIE
city Attorney DA-4299.MNW
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EXHIBIT A
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June 4, 1996
DISTRICT AGREEMENT NO. 4299
EXHIBIT liB"
Estimated Total Cost to Caltrans
A. Cosntruction CQs~ (September 1994)
Roadway Items $3,460,000
Drainage Items 122,000
Traffic Items 92.500
$3,674,500
contingenc1es (5%) 184.000
Total Construction Cost $3,858,500
B. Preliminary Engineering (8%) $ 308,500
C. Construction Engineering,
Administration and Overhead(14% of A) 540.000
TOTAL ESTIMATED CALTRANS COST $4.707.000
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