SR-04-25-1978-6KSanta Monica, California, April 13, 1978
TO: Mayor and City Council
AM
FROM: City Staff
SUBJECT: Approval of Contract with the Federal Urban Mass
Transportation Administration
Introduction
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 £areboxes 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.
* r
y R
To: Mayor and Council -2- April 13, 1978
Alternatives
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
Attachment:
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
URBAN MASS TRANSPORTATION ADMINISTRATION
WASHINGTON, D.C. 20590
URBAN MASS TRANSPORTATION CAPITAL GRANT CONTRACT
PART I
Project No. CA -03 -0136
PUBLIC BODY: CITY OF SANTA MONICA
ESTIMATED TOTAL PROJECT COST: Two Million, Five Hundred Seven
Thousand, Two Hundred Ninety Dollars ($2,507,290)
ESTIMATED NET PROJECT COST: Two Million, Four Hundred Forty -Seven
ousan , Two Hun re Ninety Dollars ($2,447,290)
MAXIMUM FEDERAL SHARE: One Million, Nine Hundred Fifty -Seven
Th-o-us—a-n-a-,--E—i-gh:F--Iru-n-d-r—ed Thirty -Two Dollars ($1,957,832)
DATE OF SECTION 13(c) CERTIFICATION LETTER
FROM THE DEPARTMENT OF LABOR:
ovem e-6�I ; I
PROJECT DESCRIPTION:
a. purchase of 12 40' air - conditioned diesel transit buses;
b�. purchase of 5 35' air - conditioned diesel transit buses;
C. purchase and installation of 5 registering fareboxes;
d. purchase and installation of 5 radio units;
e. purchase and installation of 300 new bus benches;
f. implementation of Project FARE;
g. supporting services; and
h. contingencies.
Page 1
(11/75)
THIS CONTRACT, effective on the date herein below
specified, by and between the United States of America
(herein called the "Government ") and the Public Body named
on page one of this Grant Contract, WITNESSETH:
In consideration of the mutual covenants, promises, and
representations herein, the parties hereto agree as follows:
Sec. 1. Purpose of Contract - The purpose of this
Contract is to provide for dertaking of an urban mass
transportation capital improvement project (herein called
the "Project ") with Government financial assistance to the
Public Body in the form of a capital grant (herein called
the "Grant "), under the Urban Mass Transportation Act of
1964, as amended (herein called the "Act "), and to state the
terms and conditions upon which such assistance will be
provided and the manner in which the Project will be undertaken
and completed and the Project facilities /equipment used.
Sec. 2. The Project - The Public Body agrees to undertake
and complete the Project, and to provide for the use of
Project facilities /equipment, substantially as described in
its Application, herewith incorporated by reference, filed
with and approved by the Government, and in accordance with
the terms and conditions of this Contract. The "Project
Description" on page one of this Grant Contract describes
the Project to be funded under this Contract.
Sec. 3. The Grant - In order to assist the Public Body
in financing that r io t on of the total cost of the Project
which the Department of Transportation (DOT) has determined
cannot reasonably be financed from revenues of the public
transportation system in which the Project facilities /equipment
are to be used (herein called the "Net Project Cost "), such
Net Project Cost being estimated to be that amount stated on
page one of this Grant Contract, the Government will make a
Grant in an amount equal to eighty percent (80 %) of the
actual Net Project Cost, as determined by DOT upon completion
of the Project, or in the amount designated as Maximum
Federal Share on page one of this Grant Contract, whichever
is the lesser. However, if this Contract is an amendment to
a prior Grant Contract and if the Government's share was
limited to 66 2/3% under that Contract, then that limit
shall continue to apply in calculating the Government's
share of the Net Project Cost as approved on the date of the
original Contract and the date of any amendment subject to
such 66 2/3% limit.
The obligation of the Government to make Federal Grant
payments in any fiscal year shall not exceed the amount
provided in the Project Budget for the fiscal year in which
requisitions therefor are submitted.
Page 2
(1/27/77)
The Public Body agrees that it will provide from
sources other than (a) Federal funds, (b) receipts from the
use of the Project facilities /equipment, or (c) revenues of
the public transportation system in which such facilities /equip-
ment are used, funds in the amount sufficient, together with
the Grant, to assure payment of the actual Project Cost.
The Public Body further agrees that no refund or reduction
of the amount so provided will be made at any time, unless
there is at the same time a refund to the Government of a
proportional amount of the Grant.
Sec. 4. Use of Project Facilities/Equipment - The
Public Body agrees that the Project facilities equipment
shall be used for the provision of mass transportation
service within its urban area substantially as described in
the Project Description for a period from the date of purchase
of 10 years in the case of buses and items of equipment
costing less than $50,000 and for a period from the date of
construction or installation of 20 years in the case of
facilities or items of equipment costing $50,000 or more.
If, during such period, any Project facilities /equipment are
not used in this manner or are withdrawn from mass trans-
portation service, the Public Body shall immediately notify
the Government and shall remit to the Government a proportional
amount of the fair market value, if any, of such property
(determined on the basis of the ratio of the Grant made by
the Government to the actual total cost of the Project).
For the purpose of this Section, the fair market value shall
be deemed to be the value of the property as determined b_v
competent appraisal conducted as soon after such withdrawal
or misuse occurs as feasible or the actual proceeds from the
public sale of such property, whichever is approved by UMTA.
The Public Body shall keep satisfactory records with
regard to the use of the property and submit to the Govern-
ment upon request such information as is required in order
to assure compliance with this Section and shall immediately
notify UMTA in all cases where Project facilities /equipment
are used in a manner substantially different from that
described in the Project Description. The Public Body shall
maintain in amount and form satisfactory to the Government
such insurance or self- insurance as will be adequate to
protect Project facilities and /or equipment throughout the
period of required use. The cost of such insurance shall
not be an item of allowable cost. The Public Body shall
also submit to the Government at the beginning of each
calendar year during such period, a certification that the
Project facilities /equipment are still being used in accordance
with the terms of this Section and that no part of the local
contribution to the cost of the Project has been refunded or
reduced.
Page 3
(11/75)
Sec. 5. Labor Protection - The Public Body agrees to
undertake, carry out, and complete the Project under the
terms and conditions determined by the Secretary of Labor to
be fair and equitable to protect the interests of employees
affected by the Project and meeting the requirements of
section 13(c) of the Act.
These terms and conditions are identified in the letter
of ®certification to the Government from the Department of
Labor on the date indicated on page one of this Grant Contract.
That letter and any documents cited in that letter are
incorporated by reference into this Grant Contract. The
Grant is subject to the conditions stated in the Department
of Labor letter.
Sec. 6. Minority Business Enterprise In connection
with the performance o this Contract, t e Public Body will
provide for the maximum utilization of minority business
enterprises and will use its best efforts to insure that
minority business enterprises shall have the maximum practi-
cable opportunity to compete for contract and subcontract
work under this Contract.
Sec. 7. Compliance with Environmental Standards - The
Public Body shall comply with the provisions of the Clean
Air Act as amended (42 U.S.C. §1857 et seq); the Federal
Water Pollution Control Act, as amended (33 U.S.C. §1251 et
seq); and implementing regulations issued by the Environmental
Protection Agency, in the facilities which are involved in
the Project for which Federal assistance is given in this
Grant.
Sec. 8. Compliance with Elderly and Handicapped
Regulations - The Public Body shall insure that all fixed
facility construction or alteration and all new equipment
included in the Project comply with applicable provisions
of 49 CFR Part 609 -- Transportation for Elderly and Handi-
capped Persons.
Sec. 9. Charter and School Bus Operations
(a) The Public Body agrees that it, or any operator of
mass transportation for the Public Body, will not engage in
charter bus operations outside of the urban area within
which it provides regularly scheduled mass transportation
service except in accordance with an agreement, to be entered
into hereafter, providing fair and equitable arrangements
under the terms of section 813 of the Housing and Community
Development Act of 1974, 88 Stat. 633, Pub. L. 93 -383. Such
agreement, when executed, shall become an integral part of
this contract of assistance, and the remedies specified in
any such agreement shall include and be in addition to the
Secretary's contract remedies and rights contained herein.
Page 4
3C 12/77
(b) The Public Body agrees that it, or any operator of
mass transportation for the Public Body, will not engage in
school bus operations, exclusively for the transportation of
students and school personnel, in competition with private
school bus operators. IT IS UNDERSTOOD THAT THIS SUBSECTION
DOES NOT APPLY IF THE PUBLIC BODY COMES WITHIN THE SPECIFICALLY
ENUMERATED EXCEPTIONS OF EITHER SUBSECTION (b) OR SUBSECTION
(g) OF SECTION 1602 OF TITLE 49, UNITED STATES CODE. Any
change in the school bus operations by the Public Body or
the operator, as set forth in the application, must be
concurred in by UMTA.
(c) A violation of this Section may preclude the Public
Body (or the Operator) from receiving any other Federal
financial assistance under (1) subsection (a) or (c) of
section 142, title 23, United States Code, (2) paragraph (4)
of subsection (e) of section 103, title 23, United States
Code, or (3) the Urban Mass Transportation Act of 1964.
Sec. 10. Cargo Preference - Use of Onited States -Flag
Vessels
(a) Pursuant to Pub. L. 664 (46 U.S.C. 1241(b)) at
least 50 percent of any equipment, materials or commodities
procured, contracted for or otherwise obtained with funds
granted, guaranteed, loaned, or advanced by the U.S. Government
under this agreement, and which may be transported by ocean
vessel, shall be transported on privately -owned United
States -flag commercial vessels, if available.
(b) Within 20 days following the date of loading for
shipments originating within the United States or within 30
working days following the date of loading for shipments
originating outside the United States, a legible copy of a
rated, "on- board" commercial ocean bill -of- lading in English
for each shipment of cargo described in paragraph (a) above
shall be furnished to both the UMTA Administrator (through
the prime contractor in the case of subcontractor bills -of-
lading) and to the Division of National Cargo, Office of
Market Development, Maritime Administration, Washington,
D.C. 20230.
(c) The Public Body agrees to insert the following
clauses in all contracts let by the Public Body in carrying
out the Project:
Cargo Preference - Use of United States -Flag Vessels
The contractor agrees --
(1) To utilize privately owned United States -flag
commercial vessels to ship at least 50 percent of
the gross tonnage (computed separately for dry
bulk carriers, dry cargo liners, and tankers)
involved, whenever shipping any equipment, material,
3C 12/77 Page 5
or commodities pursuant to this contract, to the
extent such vessels are available at fair and
reasonable rates for United States -flag commercial
vessels.
(2) To furnish within 20 days following the date
of loading for shipments originating within the
United States, or within 30 working days following
the date of loading for shipments originating
outside the United States, a legible copy of a
rated, "on- board" commercial ocean bill -of- lading
in English for each shipment of cargo described in
paragraph (1) above to the UMTA Administrator and
grantee (through the prime contractor in the case
of subcontractor bills -of- lading) and to the
Division of National Cargo, Office of Market
Development, Maritime Administration, Washington,
D.C. 20230.
(3) To insert the substance of the provisions of
this clause in all subcontracts issued pursuant to
this contract.
Sec.11. The Grant Contract - This Contract consists of
this Part I, entitled Urban Mass Transportation Capital
Grant Contract, and Form UMTA F 5, dated 4/27/77, entitled
Urban Mass Transportation Grant Contract, Part II, Terms and
Conditions. The latest approved Project Budget is incorporated
herein by reference. Amendments to the Project Description
or the Project Budget shall require a formal amendment to
this Contract, except that reallocations of funds among
budget items or fiscal years which do not increase the total
amount of the Federal Grant shall only require prior authorization
from UMTA and the issuance of a new Project Budget.
Sec. 12. Offer and.Acceptance
(a) Execution of Contract - This Contract may be simul-
taneously executed in several counterparts, each of which
shall be deemed to be an original having identical legal
effect.
(b) Offer - When dated and signed by the Government,
this instrument shall constitute an offer which should be
accepted by the Public Body by execution within sixty (60)
days of such date. The Government may withdraw any offer
not accepted within the above sixty -day period. Upon acceptance
of the offer the effective date of the Contract shall be the
date on which this offer was executed by the Government.
3C 12/77
Page 6
The Government has duly executed this offer thffg 141979
day of , 19
BY
ASSOCIATE ADMINISTRATOR,
URBAN MASS TRANSPORTATION
ADMINISTRATION
(c) Acceptance - The Public Body does hereby ratify and
adopt all statements, representations, warranties, covenants,
and agreements contained in the Application and supporting
materials submitted by it, and does hereby accept the Govern-
ment's offer and agrees to all of the terms and conditions
thereof.
Executed this
ATTEST
day of , 19
EMS
TITLE AND ORGANIZATION TITLE AND ORGANIZATION
(d) Certificate of Public Body's Attorney
I, , acting as Attorney for the
Public Body, do hereby certify that I have examined this
grant contract and the proceedings taken by the Public Body
relating thereto, and find that the acceptance of the Govern-
ment's offer by the Public Body has been duly authorized by
the Public Body's action dated (a copy of which
has been submitted to UMTA) and that the execution of this
Contract is in all respects due and proper and in accordance
with applicable State and local law and further that, in my
opinion, said grant contract constitutes a legal and binding
obligation of the Public Body in accordance with the terms
thereof. I further certify that to the best of my knowledge
there is no legislation or litigation pending or threatened
which might affect the performance of the Project in accord-
ance with the terms of this Contract.
Dated this day of , 19
SIGNATURE
TITLE AND ORGANIZATION
(11/75) Page 7
Form UMTA F 5
(4/27/77)
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
URBAN MASS TRANSPORTATION ADMINISTRATION
WASHINGTON, D. C. 20590
URBAN 144SS TRANSPORTATION GRANT CONTRACT
PART II
TERMS AND CONDITIONS