Item No. y.
TO: HONORABLE MAYOR AND MEMBERS OFTHE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: K8ATTHBWBA0K8KSARDNER'DIRECTOR 0FPUBLIC WNORKS/CKTY ENGINEER DATE: J0NE0.2O2G
APPROVAL @FFULFILLMENT AGREEMENT BETWEEN THE CITY OFDOVVNEY AND SUBJECT.THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (LACMT) FOR UNPROGRAMMED SURFACE TRANSPORTATION PROGRAM -LOCAL (STP-L) FUNDS
EXECUTIVE SUMMARY
The Los Angeles County Metropolitan Transportation /LACMTA\has historically apportioned $31million in Federal Surface Transportation Block Grant funds to agencies in Los Angeles County each year based on population through the local STP-L funding program. In 2023, the federal government issued a Corrective Action that stated the population -based apportionment was not in compliance with the Federal funding requirements and would not continue going forward. In 2025' the LACK4TA board approved issuing funds to any agencies with unused balances. The City of [Jom/noy has an unused balance of$330'&52 in funds, which will be used on the upcoming Bellflower Pavement Rehabilitation Project.
RECOMMENDATION
That the City Council:
1.Authohze the City Manager to enter into an agreement with the LACMTA for the unprogrammed STP-L funds converted NProp C funds toLmused for street rehabilitation projects; anU.
2. Appropriate $339,952 in Prop C funds into the Bellflower Pavement Rehabilitation Project .
BACKGROUND
The Los Angeles County Metropolitan TransportationAuthority /LACMT7\ has historically apportioned $3lmillion in Federal Surface Transportation Block Grant funds to agencies in Los Angeles County each year based on population through the local STP'Lfundin8 program. These funds were made available to agencies as Prop C funds to be used on pavement rehabilitation projects. In 2023, the federal government issued a Corrective Action that stated the population -based apportionment was not in compliance with the Federal funding requirements and would not continue going forward. In 2025' the LACMTA board approved issuing funds to any agencies with unused balances.
ANALYSIS
The City of Downey currently has an unused balance of $339,952 in funds from the STP-L program, which will be used onthe upcoming Bellflower Pavement Rehabilitation Project. ThosefundsviUbeaddedtoLhoproject balance
CITY COUNCIL PRIORITIES
Ck/ahv of Life. Safety 8L Infrastructure
FUSCALKN1FACT
The recommended action will result in a revenue increase of $339,952 in Proposition C Revenue and appropriation of$338,9G2 for the Bellflower Pavement Rehabilitation Project (54'1'6712'052[) in Fiscal Year 2026' 2027.
Attachments
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
FULFILLMENT AGREEMENT FOR UNPROGRAMMED SURFACE
TRANSPORTATION PROGRAM -LOCAL (STP-L)
This Fulfillment Agreement of Proposition C Funds ("AGREEMENT"), is made and entered into as of February 15, 2026, by and between the City of Downey ("CITY") and the Los Angeles County Metropolitan Transportation Authority ("LACMTA").
RECITALS:
LACMTA had historically apportioned, on an annual basis, $31 million of Federal Surface Transportation Block Grant (STBG) funds to agencies in Los Angeles County based on population through the STP-L funding program.
WHEREAS, in 2021 and 2022, the federal government issued a Corrective Action to Caltrans and the Southern California Association of Governments (SCAG), respectively, finding that the practice of allocating STP-L by population was out of compliance with STBG requirements; and WHEREAS, on July 1, 2023, the Corrective Action took effect on the Federal Transportation Improvement Program (FTIP) and prevented agencies from programming and accessing their unprogrammed STP-L balance through the FTIP; and
WHEREAS, the LACMTA Board of Directors at its April 24, 2025, meeting approved using Proposition C funds to fulfill $339,952 of unprogrammed STP-L balance for the City of Downey; and
WHEREAS, eligible project activities must occur on or after the LACMTA Board of Directors April 24, 2025, approval date; and
NOW THEREFORE, in consideration of the mutual benefits to be derived by CITY and LACMTA, and of the promises contained herein, it is hereby agreed as follows:
I . LACMTA hereby provides a fulfillment of $339,952 of Proposition C funds (the "Funds") to the City of Downey for use on eligible project(s), to be determined by LACMTA.
This assignment shall be automatically effective upon full execution of this AGREEMENT without the necessity of the execution, delivery or recording of any further instrument whatsoever. Notwithstanding the foregoing, at LACMTA's request, CITY shall execute and deliver such documents and instruments as may be required to evidence such assignment of the Funds.
2. CITY must complete and submit an Automated Clearing House (ACH) form (Attachment A) through LACMTA's website to allow LACMTA to make disbursements electronically. Disbursements via ACH will be made at no cost to CITY. If electronic disbursements are not the preferred method of disbursement, CITY may request an
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
exception in writing.
3. CITY shall expend the Funds on eligible project(s), consistent with the Statement of Work, Schedule and Budget provided in Attachment B.
4. For the purposes of this AGREEMENT, the term "Eligible Project" shall mean the transportation activities described in the Proposition C Guidelines.
5. CITY must use the LACMTA Funds in the most cost-effective manner. If CITY intends to use a consultant or contractor to implement all or part of the Eligible Project, LACMTA requires that such activities be procured in accordance with CITY's contracting procedures and be consistent with State law as appropriate. CITY will also use the LACMTA Funds in the most cost-effective manner when the LACMTA Funds are used to pay "in-house" staff time. CITY staff or consultants with project oversight roles may not award work to companies in which they have a financial or personal interest. This effective use of funds provision will be verified by LACMTA through on -going project monitoring and through any LACMTA interim and final audits.
6. CITY shall submit Quarterly Progress and Expenditure Reports (Attachment C) to LACMTA that cover all activities related to the project, including deliverables, milestones, and costs incurred. The reports are due to LACMTA one month after the close of each quarter on October 31, January 31, April 30, and July 31. In cases where there are no activities to report, or problems causing delays, clear explanation, including actions to remedy the situation, must be provided.
7. LACMTA, and/or its designee, shall have the right to conduct audits of CITY's use of the LACMTA Funds, as deemed appropriate, such as financial and compliance audits; interim audits; pre -award audits, performance audits, and final audits. CITY agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with Generally Accepted Accounting Principles (GAAP). CITY's records shall include, without limitation, any supporting evidence deemed necessary by LACMTA to substantiate CITY's use of LACMTA Funds. These records must be retained by CITY for five years following CITY's last use of the LACMTA Funds. CITY shall. reimburse LACMTA for any expenditure not in compliance with the Scope of Work and/or not in compliance with other terms and conditions of this AGREEMENT. The eligibility of costs for CITY's own expenditures submitted to LACMTA for the Eligible Project shall be in compliance with Office of Management and Budget (OMB) Circular A-87 (relocated to Title 2 in the Code of Federal Regulations, Subtitle A, Chapter II, part 225). The eligibility of costs for CITY's contractors, consultants, and suppliers' expenditures submitted to LACMTA through CITY's Quarterly Progress and Expenditure Reports shall be in compliance with OMB Circular A-87 (as relocated) or Federal Acquisition Regulation (FAR) Subpart 31 (whichever is applicable). Findings of the LACMTA audit are final.
When LACMTA audit findings require CITY to return monies to LACMTA, CITY agrees to return the monies within thirty (30) days after the final audit is sent to CITY.
8. The terms of this AGREEMENT shall commence on the date that this AGREEMENT
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
is fully executed and shall terminate once CITY has expended all the LACMTA Funds and all LACMTA audit and reporting requirements have been satisfied.
9. CITY shall fully indemnify, defend and hold LACMTA and its officers, agents, and employees harmless from and against any liability and expenses, including, without limitation, defend costs, any costs or liability on account of bodily injury, death or personal injury of any person, or for damages of any nature whatsoever arising out of (i) a breach of CITY's obligations under this AGREEMENT; or (ii) any act or omission of CITY or its officers, agents, employees, contractors, or subcontractors in the use of the LACMTA Funds.
10. LACMTA shall fully indemnify, defend and hold CITY and its officers, agents, and employees harmless from and against any liability and expenses, including, without limitation, defend costs, any costs or liability on account of bodily injury, death or personal injury of any person, or for damages to or loss of risk of property, any environmental obligations, any legal fees and any claims for damages of any nature whatsoever arising out of (i) a breach of LACMTA's obligations under this AGREEMENT; or (ii) any act or omission of LACMTA or its officers, agents, employees, contractors, or subcontractors in the use of CITY's Funds.
11. This AGREEMENT may be amended or modified only by mutual written consent of LACMTA and CITY.
12. Any correspondence, communication, or contact concerning this AGREEMENT shall be directed to the following:
CITY OF DOWNEY
Matthew Baumgardner
Director of Public Works/City Engineer
Department of Public Works
11111 Brookshire Avenue
Downey, CA 90241
Email: mbaum ar (,.downe cy a.org
LACMTA
Mercedes Meneses
Principal Transportation Planner
Countywide Planning and Development
One Gateway Plaza (Mail Stop: 99-23-3)
Los Angeles, California 90012-2952
Email: [email protected]
13. This AGREEMENT shall be interpreted and governed by the laws of the State of California.
14. This AGREEMENT constitutes the entire understanding between the parties with respect to the subject matter herein.
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date stated below.
LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION
AUTHORITY
Stephanie Wiggins
Chief Executive Officer
APPROVED AS TO FORM:
Dawyn R. Harrison
County Counsel
gi
By:
Deputy
CITY OF DOWNEY
Roger Bradley
City Manager
APPROVED AS TO FORM:
John M. Funk
City Attorney
Vv
Signed by:
%W:
21Vlif Wrney
M
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
Attachment A
AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION
Supplier Number
Company Name: C't i� "Jere"
Payment Address: Nre
--T
State:
City: O e,-Q L CA _, Zi Code:
Contact
Contact Name: f) 61 f\)ckvoLYyo P}tone Number:
Email Address: -Pr) ck \/A. y r 0 CD
Tax I D:
Bank Name (Required): M
Account Name: auj A e-Lj
Account Type (Required): R Checking ❑ Savings
Account Ntimber (Required): GS S "0 1 G ,
Rotiti► a Number Re i ired 0'1 1 000 Z9�'
Print Name of Authorized Person:
Print Title : (7, V� a Yt (-C o. ro (L cNe r
Phone Number: c~iL, 2- - Cl0Cl Q-Le
Signature of Authorized Person:
Date: pp}} p
f �
Approved by: Date:
Entered by: Date:
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C19lB6577F87 Agreement Number 9200000000FUL29
Attachment A
AUTOMATED CLEARING HOUSE (ACH) PAYMENT AUTHORIZATION
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Supplier Number
if you t<now the supplier number, please enter. If not, not required.
Company Name
Enter naive of company doing business with L.A. Metro.
Payment Address
Enter address where payment illay be mailed in accordance with Metro records.
Contact Name
Enter name of person f-oin your coInpany that Metro may contact for more information If regUired.
Contact Pllone Number
Enter dumber where contact person May be reached.
Enter the email address where payment detail information call be Entail Address
sent (i.e., information to include pavinent ai iouiit, pa%,ment date. descri tion of invoices paid, etc.)
Tax I D Number
Filter company's tax identification number.
Bank Name
Eltter the hank naive where payments are to be sent (i.e. Banl< of America. Washincton Mutual. etc.)
Enter the first 9 numbers Of the account to w liC l y0u1 wOti i <e Routi o, Number
funds sent. This information is located oil your check for the account. Do not use information from a deposit slip.
Account Naine
Eilter the official naive of the account.
Account Number
Enter the account number to which funds are to be sent.
Account Type
Checl< the appropriate account type
Authorized Person &
Enter name and title of person of your company authorized to Title
approve ACI I transactions:
Signature
Must be a wetsigilature
Phone Number
Enter phone number where authorized person may be contacted.
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement Number 9200000000FUL29
Attachment A
AUTOMATED CLEARING HOUSE, (ACH) PAYMENT AUTHORIZATION
Please mail your completed form along with a copy of a
voided clieckto:
Metro Accounts Payable
P.O. Box 512296
Los Angeles, CA 90051
Questions? Please feel free to contact the AP hotline at:
213-922-6811 option 3
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement No. 9200000000FUL29
Attachment B
STATEMENT OF WORK
Project Title: Bellflower Boulevard Pavement Rehabilitation Project Project Description:
Rehabilitation of the existing pavement on Bellflower Boulevard between Lakewood Blvd. and Foster Rd., including the removal and replacement of existing asphalt pavement with full reconstruction in concentrated areas, reconstruction and repair of existing concrete surfaces, including sidewalk, curb ramps and drive approaches to comply with ADA as well as curb and gutter replacement and incidental replacement of striping, pavement markings and signage.
Project Schedule:
Advertise
July 2026
Award Contract
September 2026
Start Construction
December 2026
Complete Construction
May 2027
Project Funding:
Metro Prop C
Fulfillment Funds
$339,952
SB 1 Funds
$1,000,000
City Funds
$4,771,101
Total Project Cost:
$6,111,053
Project Map:
See next page.
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement No. 9200000000FUL29
Project Map
Docusign Envelope ID: C165EDOF-F7CO-8DOB-8399-C191B6577F87 Agreement No. 9200000000FUL29
Attachment C
QUARTERLY PROGRESS REPORT
Project Title:
Report Date:
Submitted by:
Submitted for Fiscal Year:
Quarter: Jul -Sep ❑ Oct -Dec ❑ Jan -Mar ❑ Apr -Jun ❑
Project Budget: _
Fulfillment Amount:
1. Project -to -Date Expenditure
% of Project Budget Expended to Date:
% of Project Completion:
2. Milestones
Description
Start Date
End Date
Environmental Clearance
Design Bid & Award
Design
Right -of -Way
Construction Bid & Award
Construction
3. List tasks or milestones accomplished and progress made this quarter.
4. If project is delayed, describe reasons for delay.