STAFF REPORT
City of Lancaster
CC 18
5/26/2026
TN
Date:May 26, 2026
To: Mayor Parris and City Council Members
From:Marissa Diaz, Director – Public Works
Nicholas Godin, Assistant Director – PW - City Engineering Subject:Acceptance of Fulfillment Agreement for Unprogrammed Surface Transportation Program – Local (STP-L) – Lancaster Health District
Recommendations:
1. Approve the fulfillment agreement for unprogrammed surface transportation program – local (STP-L) funds in the amount of $529,697.00, and accept funds to revenue account CP15ST058.CONST., GL 213.49900.4998.
2. Appropriate $529,697.00 to the Lancaster Health District expense account CP15ST058.CONST., GL 213.49900.8000.
3. Authorize the City Manager, or his designee, to execute the fulfillment agreement, including all necessary documents and provisions, subject to City Attorney approval.
G.C. Section 84308: No
Fiscal Impact:
There is no impact on the General Fund. The City has been awarded $529,697.00 in Proposition C funds. No matching funds or in-kind contributions are required.
Background:
Los Angeles County Metropolitan Transportation Authority (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.
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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.
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.
On April 24, 2025, the LACMTA Board of Directors approved using Proposition C funds to fulfill $529,697.00 of unprogrammed STP-L balance for the City of Lancaster.
The grant funds must be used for eligible projects, as determined by LACMTA, and the City shall expend the funds in accordance with the Statement of Work, Schedule, and Budget approved by LACMTA. Funds must be spent in the most cost-effective manner, and quarterly progress and expenditure reports shall be submitted to LACMTA that cover all activities related to the project.
The approved statement of work for these funds indicates one project: Lancaster Health District.
Work will be performed from October 2025 to December 2026. The fulfillment of unprogrammed STP-L funds as Prop C funds represents only a portion of the budget required to complete the project and will be used to supplement the current project budget.
The City Council’s acceptance is required to execute the fulfillment agreement so that payment can be included in LACMTA’s FY26 approved budget, and payment can be made by June 30, 2026.
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Attachment:
Fulfillment Agreement for Unprogrammed Surface Transportation Program – Local (STP-L)