SR-04-25-1978-6ITO:
FROM:
SUBJECT
Santa Monica,' Iifornia, April 13, 1978
Mayor and City Council
City Staff
Approval of Contract with the Federal Urban Mass
Transportation Administration
Introduction
APR 2 5 1978
In order for the City to receive federal assistance to purchase new buses,
bus benches and obtain reimbursement for the implementation of a new ac-
counting system, it is necessary to enter into an agreement with the federal
Urban Mass Transportation Administration(UMTA) for grant funds.
Background
On November 23, 1976, the Santa Monica City Council authorized the submission
of an application for a federal grant to assist in the purchase of seventeen
(17) diesel transit buses and three hundred bus benches. Five of the buses
will be used to expand the fleet, so that the Department may accommodate the
patronage growth experienced in the last few 'years. The five, therefore,
will be equipped with new radios and fareboxes, while the other twelve will
have fareboxes and radios removed from buses to be sold.
The Department amended the application December 16, 1977 to include the in-
stallation of the new UMTA- mandated accounting and reporting system, which
will be necessary to maintain the City's eligibility for federal transpor-
tation funds.
UMTA approved the City's application on February 14, 1978 and forwarded the
grant contract to the City. Although UMTA regulations call for the City to
consider the contract within sixty days, staff has received a verbal extension
of this date, because the contract was not received by the City until early
April.
6 OK
APR 2 5 1978
To: Mayor and Council -2-
Alternatives
April 13, 1978
1. The City can decide to reject the contract. It could then make a later
decision to purchase the capital equipment and install the accounting
system without federal funds, losing the benefit of $1,957,832 in federal
assistance, or to retain older equipment to be replaced.
2. The City can decide to approve the contract. This would allow the City
to use the federal grant to assist in purchasing new buses, bus benches
and provide reimbursement for implementing the accounting system. This
alternative will require no expenditure of City funds.
Recommendation
City Staff recommends that the City Council approve the attached contract by
authorizing the City Manager to execute the grant contract for the purchase
of seventeen buses, five radios and fareboxes, three hundred bus benches, and
implementation of the Section 15 accounting and reporting system.
Prepared by: Jack Hutchison
Bob Ayer
JFH /dag
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