SR-03-18-2014-3JCity of
Santa Monica
To: Mayor and City Council
City Council Meeting: March 18, 2014
Agenda Item: 3-J
From: David Martin, Director of Planning and Community Development
Subject: Funding Modification for the Real -Time Beach Parking Project
Recommended Action
Staff recommends that the City Council authorize the budget changes as outlined in the
Financial Impacts and Budget Actions section of this report.
Executive Summary
The City received approval from the Los Angeles County Metropolitan Transportation
Authority (Metro) and the Southern California Association of Governments (SCAG) to
use $57,121 of Transportation Development Credits (Toll Credits) in December 2013 for
the construction of Real -Time Beach Parking Project. In February 2014, the City
received notice from the California Department of Transportation (Caltrans) that Toll
Credits cannot be applied to this project. Staff recommends the budget changes as
outlined in the Financial Impacts and Budget Actions section of this report to reduce the
encumbrance at account C207005.589200 (STPL Fund) in the amount of $57,121 and
to encumber an amount of $57,121 at account 0017024.589000 (Traffic Mitigation
Fund).
Background
Previous Council Actions
On January 14, 2014 Council authorized a contract with Select Electric, Inc. in an
amount not to exceed $1,503,754 for the construction of the Real -Time Beach Parking
Project. This included the use of $57,121 in Toll Credits.
Discussion
The City received a $533,000 grant from the Los Angeles County Metropolitan
Transportation Authority (Metro) to install signs that would display real -time parking
information available to motorists destined for Santa Monica beach parking lots. The
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grant specifies that the $533,000 comes from the federal Congestion Mitigation and Air
Quality Improvement (CMAQ) Program and an additional $286,000 must be provided
through City local match funds. The grant funds are from the Federal CMAQ program.
Additionally, $346,500 in State of California Intelligent Transportation Systems (ITS)
funds were secured for the project. In January 2013, the City received the authorization
to proceed with construction activities from Caltrans.
Since the project is already using federal funds and is ready for construction, the use of
federal Surface Transportation Program Local (STPL) funds was approved by Metro
and SCAG in December 2013. The original approval to proceed with construction
activities from Caltrans did not include the use of STPL or Toll Credits.
In addition to the STPL funds, Metro and SCAG also approved the use of $57,121 in
Toll Credits. , The Federal Highway Administration (FHWA) is the source of Toll Credits,
which are administered by Caltrans. FHWA allows the use of Toll Credits to offset a
portion or all of the agency's local match requirement for federal projects.
In February 2014, the City was notified by Caltrans that the Toll Credits cannot be
applied to this project citing FHWA policy that prohibits "the retroactive use of Toll
Credits on a phase of work that has received federal authorization."
Funding and accounting adjustments need to be made to the budget in order to
encumber the correct amount of federal funds and allocate the proper general funds.
The $57,121 of Toll Credits must be transferred from the STPL fund to an existing
General Fund account as outlined in the Financial Impacts and Budget Actions section
of this report. Funding is available in the General Fund to absorb the additional cost
related to the disallowance of the Toll Credits.
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Financial Impacts & Budget Actions
The funding modification for the Real -Time Beach Parking Project requires the following
FY 2013 -14 budget changes:
1. Reduce revenue budget at account 20416.40839Y in the amount of $57,121.
2. Reduce expenditure budget at account 0207005.589200 (STPL Fund) in the
amount of $57,121.
Funds in the amount of $57,121 are available in the FY 2013 -14 Capital Improvement
Program budget at account 0017024.589000 (Traffic Mitigation Fund).
Prepared by: Andrew Maximous, P.E., T.E., Transportation Engineer
Approved:
tD�I'rj "An�
David Martin, Director
Planning and Community Development
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Forwarded to Council:
Rod Gould
City Manager