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)