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SR-09-12-1978-6MSanta Monica, California, August 31, 1978 TO: Mayor and City Council go FROM: City Staff S E P 1 2 1978 SUBJECT: APPROVAL OF A CONTRACT WITH THE FEDERAL URBAN MASS TRANSPORTATION ADMINISTRATION Introduction In order for the City to receive Federal assistance to purchase new buses and supporting equipment, it is necessary to enter into an agreement with the Federal Urban Mass Transportation Administration(UMTA) for grant funds. Background On February 3, 1978, the Santa Monica City Council authorized the submission of an application for a Federal grant to assist in the purchase of fifteen (15) advanced design transit buses and supporting equipment. The grant was approved by UMTA on August 10, 1978 and formally announced by U.S. Secretary of Transportation Brock Adams on August 24th. A copy of the grant contract is attached. When UMTA informed the City that the grant would be approved, steps were taken to amend an existing request for bids for seventeen buses to include an option for the fifteen additional coaches to be purchased under this grant. This allows the City to obtain the benefits that come from a larger bus order and to avoid having to meet the same UMTA purchasing regulations twice, while not committing the City to purchase the buses in the absence of UMTA assistance. The award of the option for the fifteen advanced design buses to be purchased under this grant is scheduled to be considered at this Council meeting. That award has been made conditional upon the City's approval of the grant contract. M S E P 1 2 1978 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 -0170 GRANTEE: City of Santa Monica ESTIMATED TOTAL PROJECT COST: ONE MILLION, NINE HUNDRED EIGHTY -FOUR THOUSAND, EIGHT HUNDRED FIFTEEN DOLLARS ($1,984,815) ESTIMATED NET PROJECT COST: ONE MILLION, NINE HUNDRED THIRTY -FOUR THOUSAND, EIGHT HUNDRED FIFTEEN DOLLARS ($19934,875): MAXIMUM FEDERAL SHARE: ONE MILLION, FIVE HUNDRED FORTY -SEVEN THOUSAND, EIGHT HUNDRED FIFTY TWO DOLLARS ($1,547,852) DATE OF SECTION 13(c) CERTIFICATION LETTER FROM THE DEPARTMENT OF LABOR: 6/30/78 PROJECT DESCRIPTION: a. Purchase of 15 advanced design transit coaches; b. Purchase of 5 fareboxes; c. Purchase of 5 mobile two -way radios; d. Purchase of spare components (2 V -730 transmissions and 1 air - conditioning compressor; and e. Contingency. nnPROVED PROJECT BUDGET Capital Grant Project No.: CA -03 -0170 Applicant: City of Santa Monica AUG 10 1978 The project budget and corresponding cost estimates are as follows: Project Budget Line Item Code Description Cost 10.01.66 15, new, advance design transit coaches $1,765,500 10.02.04 5, new, registering fareboxes 14,775 10.02.08 5, mobile, two -way radios 11,600 10.03.04 Spare bus components two V -730 transmission 10,000 one a/c compressor 2,500 32.00.00 Contingency 180,440 APPROVED FINANCING ESTIMATED GROSS PROJECT COST 40,01.10 Revenue Financing ESTIMATED NET PROJECT COST $ 1 , 984,815 (50,000) $ 1 ,934,815 Federal Grant (80%) $ 1,547,852 Local Share (20 %) $ 386,963 Maximum Federal funds to be expended under this grant CASH DISBURSEMENT 2nd Quarter FY 79 $1,547,852 $ 1,547, 852 THIS CONTRACT, effective on the date herein below specified, by and between the United States of America (herein called the "Government ") and the Grantee 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 the undertaking of an urban mass transportation capital improvement project (herein called the "Project ") with Government financial assistance to the Grantee 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 Grantee 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 Grantee in financing that portion 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 (808) 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 2/38 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 2/38 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. 5/8/78 page 1 The Grantee agrees that it will provide from sources othen 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 Grantee 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 Grantee 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 transportation service, the Grantee shall immediately notify the Government and shall remit to ghe 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 by 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 Grantee shall keep satisfactory records with regard to the use of the property and submit to the Government upon request such information as is required in order to assure compliance with this Section and shall immediately tifyused UMTA in all cases where Project facilities/equipment in a manner substantially different from that described in the Project Description. The Grantee 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 Grantee shall also submit to the Government at the beginning of each calendar year during such period, still certification that the Project facilities/equipment 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 2 5/6/76 Sec. S. Labor Protection - The Grantee 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 require- ments 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. The Grant Contract - This Contract consists of this Part I, entitled Urban Mass Transportation Capital Garnt Contract, and Form UMTA F 5B, dated 5,18/78 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 authori- zation from UMTA and the issuance of a new Project Budget. Sec. 7. 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 acepted by the Grantee by execution within sixty (60) days of such date. The Government may withdraw any offer not accepted with the above sixty -day period. Upon accept- ance of the offer the effective date of the Contract shall be the date on which this offer was executed by the Govern- ment. 5/8/78 Page 3 The Government has duly executed this offer this AUG 10 1976 day of 19 BY 4LPIA�'SLTRAN Regqion ctor URBAN SPORTATION ADMINISTRATION (c) Acceptance - The Grantee does hereby ratify and adopt all statements, representations, warranties, convenants, 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 m TITLE AND ORGANIZATION TITLE AND ORGANIZATION (d) Certificate of Grantee's Attorney I, , acting as Attorney for the Grantee, do hereby certify that I have examined this grant contract and the proceedings taken by the Grantee relating thereto, and find that the acceptance of the Goverment's offer by the Grantee has been duly authorized.by the Grantee'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 Grantee 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 accordance with the terms of this Contract. Dated this day of 19 5/8/78 SIGNATURE Page 4 TITLE AND ORGANIZATION I APPROVED PROJECT BUDGET Capital Grant Project No.: CA -03 4170 AUG 10 1978 Applicant: City of Santa Monica The project budget and corresponding cost estimates are as follows: Project Budget Description Line Item Code Cost 10.01.66 15 new advance de sign transit coaches $1,765,500 10.02.04 5, new, registering fareboxes 14,775 10.02.08 5, mobile, two -way radios 11,600 10.03.04 Spare bus components two V -730 transmission 10,000 one a/c compressor 2,500 32.00.00 Contingency 180,440 APPROVED FINANCING ESTIMATED GROSS PROJECT COST $ 1 ,984,815 40,01.10 Revenue Financing - (50,0001 ESTIMATED NET PROJECT COST $ 1 934,815 Federal Grant (809;) $ 1,547,852 Local Share (20"-') $ 386,963 Maximum Federal funds to be expended under this grant $1,547, 852 CASH DISBURSEMENT 2nd Quarter FY 79 $1,547,852 Reference: Contract No. 3084 (CCS)