Item No. 7.
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
OFFICE OF THE CITY MANAGER
BY:
MATTHEW BAUMGARDNER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE:
AUGUST 11, 2026
APPROVAL OF A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF
DOWNEY AND METRO FOR THE SOUTHEAST LOS ANGELES TRANSIT
SUBJECT:
IMPROVEMENT PROJECT (SELA TIP) TO RECEIVE GRANT FUNDS FOR NEW BUS
SHELTERS
EXECUTIVE SUMMARY
The City Council will consider approving a Memorandum of Understanding with the Los Angeles County Metropolitan Transportation Authority (Metro) for the Southeast Los Angeles Transit Improvement Project (SELA TIP) to receive $592,765 in grant funds to support the installation of ten (10) new bus shelters Citywide. At its August 13, 2024 meeting, the City Council approved the plan to install ten bus shelters prioritized on ridership data provided by Metro. Four (4) of these locations were installed as part of the Firestone Boulevard and Lakewood Boulevard intersection improvements completed earlier this year. Four (4) new locations were added to replace the completed 4 projects to maintain a prioritized list of 10 bus shelters. The SELA TIP funding will allow the City to complete these locations and focus on planning for other locations throughout the City.
RECOMMENDATION
That the City Council:
1. Approve a Memorandum of Understanding (MOU) between the City of Downey and Metro for the Southeast Los Angeles Transit Improvement Project (SELA TIP) to receive $592,765 in grant funds for new bus shelters;
2. Authorize the City Manager to execute the MOU with SELA TIP;
3. Appropriate $592,765 in Metro SELA TIP Grant funds to account No. 26-1-6966-0520; and,
4. Authorize the appropriation of $81,246 for the remainder of the project costs, with the appropriation financed through Proposition A funds.
At the February 13, 2024 City Council meeting, staff was directed to return to a future meeting with a report discussing the current layout of bus shelters throughout the City and to provide options for a future bus shelter installation plan. The City currently has a variety of bus stop that serve multiple transit providers, including Metro, Long Beach Transit, Downey Link, and Bellflower Transit. At the August 13, 2024 meeting, City staff returned with the requested report, and the City Council discussed and provided staff with direction regarding a proposed multi- year Citywide bus shelter installation plan. Staff presented a report focused on City -of -Downey -branded bus shelters, which were last updated in 2018. At the time, there was 14 Downey -branded bus shelters with a consistent design that includes shade structures, benches, and trash receptacles.
Staff began developing a citywide bus shelter installation plan by first determining the number of bus stops throughout the City, including shared stops (operated by Metro, Downey Link. and Long Beach Transit) and City - branded locations. A total of 185 bus stops exist within City limits. Using Metro's ridership neporta, staff identified the bus stop locations with the highest ridership within City limits. Initially, the list was o four year plan, for ten shelters but since some C|P projects incorporated shelters as pet of the pnoject, they were removed from the original |iyL In June 2020, oioLa| of four new City of Downey branded bus shelters were installed at the intersection of Lakewood Blvd and Firestone Blvd. The revised list (Attachment B) includes the bus stop locations that did not overlap with CIP projects and include new locations that need improvements.
ANALYSIS
As part of developing the proposed p|un, staff notified the County of Los Angeles that the City was considering a bus shelter inakd|udon plan that included upgrades at ten (10) of the most heavily utilized |ooudona identified in Metro ridership reports along the Cit/o main thoroughfares. City staff searched for grant opportunities and identified the Metro Southeast Los Angeles (SELA) Transit Improvement Program (SELA TIP) as a potential funding source for the new bus shelters. SELA TIP is a multi -million -dollar grant initiative focused on bringing upgraded bus sen/iom, transit signal priority, and customer amenities to high -frequency corridors across SELA communities.
The program targets several key improvements to combat transit delays and poor stop conditions, such as Transit Signal Priority (TSP) and Stop Enhancements. Funding covers the purchase and installation ofcloud-based TSP systems along high -frequency corridors to give buses priority at intersections. The initiative also overhauls local bus stops with new shelters, seating, |ighdng, and real-time information displays specifically in municipalities lacking local capital funds.
Staff provided Metro with upvoponed list ofsites that includes afuU description of bus stop |ooadon, ridership status, and other measurements. After staff reviewed the grant guidelines and met at the proposed sites, a final list of locations that would quality for SELA-TIP funding and a payment plan was drafted to receive reimbursement for the ten (10) proposed locations (see Attachment B). As part of the grant requirement, Metro will also provide digital real-time displays at these 10 locations to add an extra enhancement for riders to have accurate arrival times.
The estimated cost to manufacture and install one (1) City -branded shelter is approximately $60.000. The SELA TIP K4OUisprovided for reference (see Attachment A).
CITY COUNCIL PRIORITIES
Quality ofLife, Safety & Infrastructure
FI8CAL|MHACT
Approval of the recommended action will result in an estimated appropriation of approximately $674,010.
Description
Amount
Construction Contract
$549,100
Construction Inspection and Materials Testing
$40,000
Construction Engineering and Administration
$30,000
Total Estimated Project Cost:
$674,010
Funding for the project will be appropriated in the FY2O28-2027 Capital Improvement Program ACIPj budget. of which $592,765 are Metro grant funds under account no. 26-1-6966-0520 and $81,246 from Metro Proposition A local return funds under account no. 55-1-6966-0520.
Account No. Funding Source Amount
26-1-6966-0520 Metro SELA TIP Grant funds $592,764
55-1-6966-0520 Metro Proposition A local return funds $81,246 Total Project Budget: $674,010
Attachments
Southeast Los Angeles Transit Improvement Project (SELA TIP)
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (MOU) is entered into between the Los Angeles County Metropolitan Transportation Authority ("Metro" or "Grantee") and City of Downey ("Sub -Grantee"), as of this date of May 12, 2026 for the Metro Southeast Los Angeles Transit Improvements Project ("SELA TIP"). Metro and Sub -Grantee may each be referred to individually as a "Party" and collectively as the "Parties".
WHEREAS, Metro applied for and secured grant funding under the 2022 Local Partnership Program (LPP) for transit improvements in Southeast Los Angeles; and WHEREAS, the SELA TIP will include procurement and installation of new bus shelters at 100 stops along high -frequency (NextGen Tiers 1 & 2) bus lines within various jurisdictions; and
WHEREAS, the Metro Board of Directors on April 25, 2024 approved the East Los Angeles — Long Beach Corridor Mobility Investment Plan, which identifies bus stop improvements as a component project, including the SELA TIP; and WHEREAS, on June 27, 2024 the California Transportation Commission ("CTC") approved the project baseline agreement for the SELA TIP, the "Baseline Agreement", which is attached as Attachment D.
WHEREAS, bus shelters will be procured and maintained by the jurisdiction in which the bus stop is located; and
WHEREAS, eligible expenditures consist of new bus stop shelters in locations that do not have an existing shelter, which include a shade structure, night-time lighting, real- time information boards, and typically include other amenities such as seating and trash receptacles; and
WHEREAS, the Parties desire to set forth the roles and responsibilities with respect to the implementation and funding of the SELA TIP.
NOW THEREFORE, the Parties hereby agree as follows:
CONDITIONS
1.1 The Sub -Grantee shall use the funds, as described below, to complete the Project as described in the Scope of Work attached as Attachment A. The funds, as granted under this MOU, can only be used towards the completion of this Scope of Work. Sub -Grantee shall not use the funds to substitute for any other funds or projects not specified in this MOU. The Scope of Work shall include a list of selected bus stop locations as indicated by: street and cross street, LA Metro bus stop identification
MEMORANDUM OF UNDERSTANDING (MOU) — MOU
METRO SOUTH EAST LA TRANSIT IMPROVEMENTS PROJECT (:
LA Metro MOU with City of Downey
number, direction of travel, and near or far side of intersection; a description and illustration of shelter(s) to be used (where more than one shelter type is employed, the list of locations shall indicate which type is selected for each location); a project schedule that must be adhered to and that includes milestones consistent with purchase and installation of the new shelters and any site preparation work; and a breakdown of costs by activity.
1.2 The Sub -Grantee shall use the funds in accordance with the Financial Plan attached to this MOU as Attachment B. The Financial Plan shows the Project's cash flow and includes the Project's entire financial commitment as well as the fiscal year that the funds will be expended.
1.3 The Sub -Grantee must demonstrate timely use of funds by: (1) executing this MOU by June 30, 2026, and by (II) expending the funds granted under this MOU by no later than September 1, 2027, which is the construction contract acceptance milestone date for the LPP grant.
1.4 During the term of this MOU, the Sub -Grantee shall submit Quarterly Progress Reports in the form attached as Attachment C. These reports shall include quarterly and inception to date actual expenditures, tasks completed during the reporting period, projected activities for the next quarter and any information that describes the progress of the Scope of Work. The Quarterly Reports are due to the Metro Project Manager on or before the thirtieth day (30th) of the first month following the close of the October - December, January -March, April -June, and July -September quarters.
1.5 Quarterly Reports, notices, and draft invoices shall be submitted as PDF documents via email to:
Joseph Forgiarini, Sr. Executive Officer, Service Development [email protected]
with CC to Monica Waggoner, Service Planning Manager, Gateway Cities [email protected]
1.6 The Sub -Grantee is responsible for reviewing and approving the design plans for the Project. The Sub -Grantee must obtain all necessary permits and approvals from the appropriate agencies.
1.7 The Sub -Grantee must ensure the design of the Project fully complies with the Americans with Disabilities Act (ADA).
1.8 This MOU shall terminate on 2/28/2028.
1.9 In the event that the Sub -Grantee notifies Metro it is unable to provide the real- time information boards, Metro is responsible for acquiring and installing real-time 2 MEMORANDUM OF UNDERSTANDING (MOU) — MOU
METRO SOUTH EAST LA TRANSIT IMPROVEMENTS PROJECT (:
LA Metro MOU with City of Downey
information boards, including hardware, software and power connections, onto the new bus shelters at no expense to the Sub -Grantee. The real-time information boards remain the property of Metro after installation. Metro's expenses for these real-time information boards will reduce the amount of funding available to the Sub -Grantee per shelter.
1.10 The Sub -Grantee is responsible for all maintenance and repair costs for bus shelters and appurtenances, excluding real-time information boards installed by Metro, incurred during the Project asset anticipated normal life span. Metro is responsible for technical supports (including software updates), maintenance, fees, operation and necessary repairs or replacements of real-time information boards installed by Metro, while Sub -Grantee is responsible for general cleaning, graffiti removal, and maintenance of lighting equipment. This requirement shall survive the termination of this agreement.
1.11 This is a one-time only grant subject to the terms and conditions agreed to herein. This grant does not imply nor obligate any future funding commitment on the part of Metro.
1.12 The Sub -Grantee shall carry out the Project in accordance with the terms of this MOU and all applicable laws, regulations, and rules.
2.1 To the extent that funds are available, Metro shall make a one-time grant of the funds in the amount of $592,764.70for the Project subject to the terms of the Baseline Agreement and any additional terms and conditions contained herein. These Funds are programmed during the project span, from execution of agreement to September 1, 2027, and are allocated among the Scope of Work as specified in the Financial Plan.
2.2 The funds will be transferred to the Sub -Grantee on reimbursement basis only and no advance of funds shall be granted. The Sub -Grantee shall submit invoices to Metro upon completion of construction and installation of shelters (including any site preparation work), for the total grant -funded portion of the share of the Project expended by the Sub -Grantee. Sub -Grantee may submit invoices as individual shelters are completed, or after completion of all installations included in attachments A and A-1.
2.3 The invoice submitted to Metro should only relate to approved goods or services provided in accordance with this MOU. The invoice should clearly identify the charges, copies of the invoices, number of the MOU, and the period covered.
2.4 Metro shall reimburse the Sub -Grantee the full amount of the invoice less a ten - percent (10%) retainage. The retainage will be paid to the Sub -Grantee upon the successful completion of the Project's closeout audit to be conducted by Metro. 3 MEMORANDUM OF UNDERSTANDING (MOU) — MOU
METRO SOUTH EAST LA TRANSIT IMPROVEMENTS PROJECT (:
LA Metro MOU with City of Downey
2.5 The Sub -Grantee is responsible for all cost overruns incurred as a result of this Project. Under no circumstance will the total amount of money that Metro reimburses the Sub -Grantee exceed the amount of the Funds allocated in the project's Financial Plan.
2.6 If any amounts paid to Sub -Grantee are disallowed or not reimbursed by the CTC for any reason, Sub -Grantee shall remit to LACMTA the disallowed or non -reimbursed amount(s) within 30 days from receipt of LACMTA's notice. All payments made by LACMTA hereunder are subject to the audit provisions contained herein and within the Baseline Agreement.
2.7 Sub -Grantee shall comply with and ensure that work performed under this Agreement is done in compliance with all applicable provisions of federal, state and local laws, statutes, ordinances, rules, regulations and procedural requirements, and the applicable requirements and regulations of LACMTA. Sub -Grantee acknowledges responsibility for obtaining copies of and complying with the terms of the most recent Federal, State or local laws and regulations and LACMTA requirements, including any amendments thereto.
2.8 Following Metro Operations staff approval, invoices shall be addressed to [email protected], sent as a PDF attachment.
2.9 Payments and notices shall be addressed to:
11111 Brookshire Ave
Downey, California, 90241
Attention: Matthew Baumgardner, Director of Public Works/City Engineer Email: [email protected]
Phone: (562)904-7102
3. PENALTIES
Metro reserves the right to terminate this MOU and withhold all payments of funds in the event of Sub -Grantee's breach or defaults of any term or condition contained in this MOU.
4. MISCELLANEOUS
4.1 California law shall govern this MOU. If any provision of this MOU is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated 91 MEMORANDUM OF UNDERSTANDING (MOU) — MOU
METRO SOUTH EAST LA TRANSIT IMPROVEMENTS PROJECT (:
LA Metro MOU with City of Downey
4.2 The Sub -Grantee shall not assign this MOU, or any part thereof, without written consent and prior approval of Metro's Chief Executive Officer or designee, and any assignment without said consent shall be void and unenforceable.
4.3 This MOU constitutes the entire understanding between Parties, with respect to subject matter herein. This MOU shall not be amended, nor any provision or breach hereof waived except in writing signed by the Parties.
4.4 The covenants and agreements of this MOU shall inure to the benefit of, and shall be binding upon, each of the Parties and their respective successors and assigns.
4.5 Metro shall have the right to conduct a financial and compliance audit(s) of the Project. Sub -Grantee agrees to establish and maintain proper accounting procedures and cash management records and documents in accordance with generally accepted accounting principles. The Sub -Grantee shall reimburse Metro for any expenditure not in compliance with the Scope of Work and/or not in compliance with other terms and conditions of this MOU and Guidelines.
4.6 Metro shall indemnify, defend and hold harmless Sub -Grantee, its trustees, officers, agents, and employees from and against any and all liability, loss, expense, including reasonable attorney's fees, or claims for injury or damages arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorney's fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Metro, its trustees, officers, agents or employees.
Sub -Grantee shall indemnify, defend and hold harmless Metro, its trustees, officers, agents, and employees from and against any and all liability, loss, expense, including reasonable attorney's fees, or claims for injury or damages arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorney's fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Sub -Grantee, its trustees, officers, agents or employees.
Any entity hired by either Party shall be required to indemnify, defend and hold harmless the other Party, its Special Districts, elected and appointed officers, employees, agents and volunteers ("Indemnitees") from and against any and all liability including but not limited to demands, claims, actions, fees, costs, and expenses, including attorney fees, arising from or relating to this agreement, except for such loss or damage arising from the sole negligence or willful misconduct of the Indemnitees.
4.7 Sub -Grantee in the performance of the work required by this MOU is not an agent or employee of Metro. Sub -Grantee shall not represent itself as an agent or employee of Metro and shall have no powers to bind Metro in contract or otherwise.
MEMORANDUM OF UNDERSTANDING (MOU) — MOU
METRO SOUTH EAST LA TRANSIT IMPROVEMENTS PROJECT
LA Metro MOU with City of Downey
IN WITNESS WHEREOF, the Parties have caused this MOU to be executed by their duly authorized representatives as of the dates indicated below:
SUB -GRANTEE:
City of Downey LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION
AUTHORITY
By: By:
Roger Bradley Date Stephanie Wiggins Date
City Manager Chief Executive Officer
APPROVED AS TO APPROVED AS TO
FORM: FORM:
John Funk Dawyn R. Harrison
Title: Attorney County Counsel
By: By:
�4 6-29-26 6/18/2026
Deputy Date Depdty Date
Attest:
Maria Alicia Duarte
City Clerk
I
7/30/2026
LA Metro bus
stop ID
Bus Stop Locations
Bus Shleter Description
1 1926
Firestone Blvd and Brookshire Ave - Eastbound - Far side City of Downey Bus Shelter with City Logo
2 10451
Firestone Blvd and Brookshire Ave - Westbound - Far side City of Downey Bus Shelter with City Logo
3 10473
Firestone Blvd and Old River School Road - Westbound - Far side City of Downey Bus Shelter with City Logo
4 10444
Firestone Blvd and Patton Rd - Westbound - Far side
City of Downey Bus Shelter with City Logo
5 142276
Imperial Hwy and Paramount Blvd - Eastbound- Near side
City of Downey Bus Shelter with City Logo
6 2640
Imperial Hwy and Lakewood Blvd- Eastbound - Near side
City of Downey Bus Shelter with City Logo
7 2624
Imperial Hwy and Downey Ave - Westbound - Near side
City of Downey Bus Shelter with City Logo
8 14725
Studebaker Rd and 1-5, 1-605 Off ramp - Near side
City of Downey Bus Shelter with City Logo
9 10535
Florence Ave and Paramount Blvd - Westbound - Near side City of Downey Bus Shelter with City Logo
10 1985
Florence Ave and Paramount Blvd - Eastbound - Near side City of Downey Bus Shelter with City Logo