Agenda Item
City Council
Item #: 3.13. 12/12/2023 File #: 23-0788
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Adoption of a resolution approving the terms and conditions of the Master Agreement between the City of Orange and Caltrans for State Funded Projects. Resolution No. 11507.
2. SUMMARY
The Master Agreement is a requirement to enable the City of Orange to receive state funds for local transportation projects. Resolution 11507 will approve the terms and conditions of the Master Agreement and authorize the City Manager or Director of Public Works, or their respective designee, to execute the Master Agreement and any related project-specific Program Supplement Agreements.
3. RECOMMENDED ACTION
Adopt Resolution No. 11507. A Resolution of the City Council of the City of Orange approving the terms and conditions of the Master Agreement between the City and the State for state-funded projects from the State Transportation Improvement Program or other state-funded programs and authorizing the City Manager or the Director of Public Works to execute any and all Program Supplement Agreements to implement the Master Agreement.
4. FISCAL IMPACT
None. Adoption of Resolution 11507 and approval of the Master Agreement requires no funding obligation at this time.
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 3: Enhance and promote quality of life in the community e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
The California Legislature has enacted legislation by which certain state funds are made available for use on local transportation related projects of public entities qualified to act as recipients of state funds. A Master Agreement between the Administering Agency (local agency, in this case City of Orange) and the State (Caltrans) is required to be in place before funds are made available for a state-funded transportation project. The Master Agreement will enable the City to receive and City of Orange Printed on 12/7/2023Page 1 of 2
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Item #: 3.13. 12/12/2023 File #: 23-0788
state-funded transportation project. The Master Agreement will enable the City to receive and administer funding from the State Transportation Improvement Project or other state-only funded programs. It establishes the terms and conditions applicable to both parties. In the Master Agreement, the Administering Agency agrees to comply with all state laws, regulations, policies, and procedures relative to design, right-of-way acquisition, environmental compliance, construction, and maintenance of a completed facility.
The City had previously executed a similar Master Agreement for state-funded projects in 2008.
However, as federal and state laws evolve, such Master Agreements are periodically updated to account for changes in policies. It has been 15 years since the previous Master Agreement was executed and as a result, the State requires an update. New state-funded projects to be implemented will be tied to this newer Master Agreement, while prior projects will continue to be tied to the version of the Master Agreement they were originally associated with.
In addition, Program Supplement Agreements (PSA) are used to amend the Master Agreement and describe the phase(s), costs, and special conditions that apply to specific state-funded projects. The PSA identifies the reimbursable phase(s) of work in addition to the types and amounts of state and local funds that will be used to finance the project. It is the contractual basis for the State to reimburse the City for work done. For every state-funded transportation project, there is a corresponding project-specific PSA.
As in any agreement, each PSA is required to be executed by the local governing agency. By adopting Resolution 11507, the City Council is authorizing the City Manager or the Director of Public Works, or their respective designee, to execute the attached Master Agreement and individual PSAs as they occur. In doing so, the process of executing specific project PSAs is streamlined, saving time and effort in processing state-funded projects. This method is both encouraged by Caltrans and consistent with its Local Assistance Procedures.
This Master Agreement and Resolution mirrors the same documents and procedures that the City already has in place for federally-funded projects.
7. ATTACHMENTS
· Resolution No. 11507
City of Orange Printed on 12/7/2023Page 2 of 2
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