Pismo Beach City Council
October 1, 2024

G\T Y OF

PISMO BEACH CITY COUNCIL STAFF REPORT
A�syoBt Agenda Item #9.E
Meeting Date: October 1, 2024
TITLE:

Shell Beach Road Shared Use Path Extension Project Agreements RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute the following agreements relating to the Shell Beach Road Shared Use Path Project:

1. Phase 2 Baseline Agreement;

2. Phase 3 Memorandum of Understanding;

3. Administering Agency - State Agreement And Program Supplement; and

4. Amendment #1 To the RSTP Exchange/STBG Cooperative Agreement.

DISCUSSION:

The Shell Beach Streetscape project completed in 2021 was Phase 1 of a city-wide multi- use path identified in the City's Bicycle and Pedestrian Master Plan and Complete Street Plan. The current Shell Beach Road Shared Use Path (SBSUP) project includes Phase 2 (from Avila Beach Drive to Spyglass Drive) and Phase 3 (Spyglass Drive to Terrace Avenue). On June 28, 2023, the California Transportation Commission (CTC) awarded San Luis Obispo Council of Governments (SLOCOG) $65 million from the Trade Corridor Enhancement Program (TCEP) for the Five Cities Multimodal Transportation Network Enhancement Project. The TCEP award includes funding to construct the US 101 southbound managed lane project, as well as $508,000 for design of the SBSUP Extension project from Avila Beach Drive to Spyglass Drive (Phase 2).

Phase 2 Baseline Agreement
In order to allocate grant funds for the Shell Beach Road Multi-Use Path Extension project, the City is required to approve a Project Report Equivalent (PRE) and execute a Baseline Agreement (Attachment 2) with SLCOOG, Caltrans, and the CTC, which provides assurances the project will be fully funded through construction with no additional TCEP funds. On March 19, 2024 the City Council approved the PRE.

Phase 3 Memorandum of Understanding
The Memorandum of Understanding (MOU) provided as Attachment 3 is between the City of Pismo Beach, SLOCOG, and the California Department of Transportation (Caltrans). The MOU is intended to formalize the development of a schedule and financial plan for the planning of the Shell Beach Path Phase 3, and represents a commitment to subsequently enter into a cooperative agreement to fund and construct the Shell Beach Path Phase 3.

Administering Agency - State Agreement and Program Supplement On April 16, 2024, the CTC allocated $508,000 in State TCEP funds to be used for the SBSUP design phase. Before the City can begin invoicing for reimbursements an Council Agenda 10-1-2024 9.E-1

Administering Agency - State Agreement (Attachment 4), and a project specific program supplement (Attachment 5) need to be executed between the City and the state.

Amendment #1 to the RSTP Exchange/STBG Cooperative Agreement On January 10, 2024 the SLOCOG Board approved $500,000 of Regional State Highway Account (RSHA) funds to be used for the SBSUP. Before the City can begin invoicing for reimbursement for work performed on that project, Amendment #1 to the existing Cooperative Agreement (Attachment 6) must be executed between SLOCOG and the City.

Conclusion and Recommendation
Staff recommends the City Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute the Phase 2 Baseline Agreement, Phase 3 MOU, Administering Agency - State Agreement and Program Supplement, and Amendment #1 to the RSTP Exchange/STBG Cooperative Agreement, as outlined above, for the Shell Beach Road Shared Use Path extension project.

FISCAL IMPACT:

There is no immediate fiscal impact associated with executing the agreements. Staff will return to the Council to award a design contract and to recommend accepting and appropriating the grant funds to the project at that future Council meeting.

ATTACHMENTS:

1. Resolution

2. Phase 2 Baseline Agreement

3. Phase 3 Memorandum of Understanding

4. Administering Agency - State Agreement

5. Program Supplement

6. Amendment #1 to the RSTP Exchange/STBG Cooperative Agreement Prepared by:

Erin Olsen, Senior Management Analyst
Submitted by: Mike James, Assistant City Manager/Acting Public Works Director City Manager Approval:
_7Y
Council Agenda 10-1-2024 9.E-2

Attachment 1
RESOLUTION NO. R-2024-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE THE FOLLOWING

AGREEMENTS RELATING TO THE SHELL BEACH ROAD
SHARED USE PATH PROJECT:

1. PHASE 2 BASELINE AGREEMENT;

2. PHASE 3 MEMORANDUM OF UNDERSTANDING;

3. ADMINISTERING AGENCY - STATE AGREEMENT AND PROGRAM
SUPPLEMENT; AND

4. AMENDMENT #1 TO THE RSTP EXCHANGE/STBG COOPERATIVE

AGREEMENT
WHEREAS, the Shell Beach Road Shared Use Path project includes Phase 2 (from Avila Beach Drive to Spyglass Drive) and Phase 3 (Spyglass Drive to Terrace Avenue); and WHEREAS, in order to allocate grant funds for the Shell Beach Road Multi-Use Path Extension project, the City is required to execute a Baseline Agreement with SLOCOG, Caltrans, and the CTC; and
WHEREAS, the agencies have worked to develop a Memorandum of Understanding (MOU) to formalize the development of a schedule and financial plan for the planning of the Shell Beach Path Phase 3; and
WHEREAS, the CTC allocated $508,000 in state TCEP funds to be used for the design phase which requires an Administering Agency - State Agreement and a project specific program supplement executed; and
WHEREAS, the SLOCOG Board approved $500,000 of regional RSHA funds to be used for the SBSUP design phase which requires Amendment #1 to the existing Cooperative Agreement executed before the City can request reimbursements.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute the following agreements relating to the Shell Beach Road Shared Use Path project, in the substantially the same form provided in staff's report dated October 1, 2024:

1. Phase 2 Baseline Agreement, among the City, California Transportation Commission, California Department of Transportation, and the San Luis Obispo Council of Governments;

2. Phase 3 Memorandum of Understanding, among the City, the San Luis Obispo Council of Governments, and the California Department of Transportation;

3. Administering Agency - State Agreement and Program Supplement, between the City and the California Department of Transportation; and

4. Amendment #1 to the RSTP Exchange/STBG Cooperative Agreement, between the City and the San Luis Obispo Council of Governments.

Council Agenda 10-1-2024 9.E-3

Attachment 1
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 1st day of October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:

Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on
Erica Inderlied, City Clerk
Council Agenda 10-1-2024 9.E-4

Attachment 2

STATE OF CALIFORNIA -CALIFORNIA TRANSPORTATION COMMISSION CTC-0001 (REV.03/2023)
ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

PROJECT BASELINE AGREEMENT
Five Cities Multimodal Transportation Network Enhancement Project Resolution TCEP-P-2324-08B
(to be completed by CTC)

1. FUNDING PROGRAM
❑ Active Transportation Program
❑ Local Partnership Program(Competitive)
❑ Solutions for Congested Corridors Program
❑ State Highway Operation and Protection Program
0 Trade Corridor Enhancement Program

2. PARTIES AND DATE

2.1 This Project Baseline Agreement(Agreement)effective on 6/28/2024 (will be completed by CTC),is made by and between the California Transportation Commission(Commission),the California Department of Transportation(Caltrans),the Project Applicant,San Luis Obispo Council of Governments and the Implementing Agency,Caltrans and City of Pismo Beach sometimes collectively referred to as the"Parties".

3. RECITAL

3.1 Whereas at its 6/28/2023 meeting the Commission approved the I Trade Corddor Enhanoement Program and included in this program of projects the r­sMAm .1T.nsno i N.woxe na .m ,the parties are entering into this Project Baseline Agreement to document the project cost, schedule,scope and benefits,as detailed on the Project Programming Request Form attached hereto as Exhibit A,the Project Report attached hereto as Exhibit B,the Performance Metrics Form,if applicable,attached hereto as Exhibit C,as the baseline for project monitoring by the Commission.

3.2 The undersigned Project Applicant certifies that the funding sources cited are committed and expected to be available;the estimated costs represent full project funding;and the scope and description of benefits is the best estimate possible.

4. GENERAL PROVISIONS
The Project Applicant,Implementing Agency,and Caltrans agree to abide by the following provisions:

4.1 To meet the requirements of the Road Repair and Accountability Act of 2017(Senate Bill[SB] 1,Chapter 5,Statutes of 2017)which provides the first significant,stable,and on-going increase in state transportation funding in more than two decades.

4.2 To adhere,as applicable,to the provisions of the Commission:
❑ Resolution�,"Adoption of Program of Projects for the Active Transportation Program",dated ❑ Resolution�,"Adoption of Program of Projects for the Local Partnership Program",dated ❑ Resolution�,"Adoption of Pro ram of Projects for the Solutions for Congested Corridors Program", dated
❑ Resolution�,"Adoption of Program of Projects for the State Highway Operation and Protection Program", dated
■❑ Resolution G23 46 "Adoption of Program of Projects for the Trade Corridor Enhancement Program", dated 6/28/2023
Project Baseline Agreement Page 1 of 3
Council Agenda 10-1-2024 9.E-5

Attachment 2

4.3 All signatories agree to adhere to the Commission's Guidelines.Any conflict between the programs will be resolved at the discretion of the Commission.

4.4 All signatories agree to adhere to the Commission's SB 1 Accountability and Transparency Guidelines and policies,and program and project amendment processes.

4.5 SLOCOG,Caltrans and City of Pismo Beach agrees to secure funds for any additional costs of the project.

4.6 Caltrans and City of Pismo Beach agrees to report to Caltrans on a quarterly basis;on the progress made toward the implementation of the project, including scope,cost,schedule,and anticipated benefits/performance metric outcomes.

4.7 Caltrans agrees to prepare program progress reports on a on a semi-annual basis and include information appropriate to assess the current state of the overall program and the current status of each project identified in the program report.

4.8 1 Caltans and City of Pismo Beach agrees to submit a timely Completion Report and Final Delivery Report as specified in the Commission's SB 1 Accountability and Transparency Guidelines.

4.9 ICaltrans and City of Pismo Beach agrees to submit a timely Project Performance Analysis as specified in the Commission's SB 1 Accountability and Transparency Guidelines.

4.10 All signatories agree to maintain and make available to the Commission and/or its designated representative,all work related documents,including without limitation engineering,financial and other data,and methodologies and assumptions used in the determination of project benefits and performance metric outcomes during the course of the project,and retain those records for six years from the date of the final closeout of the project.Financial records will be maintained in accordance with Generally Accepted Accounting Principles.

4.11 The Inspector General of the Independent Office of Audits and Investigations has the right to audit the project records,including technical and financial data,of the Department of Transportation,the Project Applicant,the Implementing Agency,and any consultant or sub-consultants at any time during the course of the project and for six years from the date of the final closeout of the project,therefore all project records shall be maintained and made available at the time of request. Audits will be conducted in accordance with Generally Accepted Government Auditing Standards.

5. SPECIFIC PROVISIONS AND CONDITIONS

5.1 Project Schedule and Cost
See Project Programming Request Form,attached as Exhibit A.

5.2 Project Scope
See Project Report or equivalent,attached as Exhibit B.At a minimum,the attachment shall include the cover page,evidence of approval,executive summary,and a link to or electronic copy of the full document.

5.3 Performance Metrics
See Performance Metrics Form,if applicable,attached as Exhibit C.

5.4 Additional Provisions and Conditions (Please attach an additional page if additional space is needed.) Implementing Agencies:

Caltrans-Contract#1:Five Cities Multimodal Transportation Network Enhancement Project City of Pismo Beach-Contract#2:Shell Beach Road Shared Use Path Extension In the event of a cost overrun,at the discretion of the department on a case-by-case basis,the state may cover a share proportionate to the state contribution of the TCEP funding identified in the Project Programming Request(PPR)submitted with the project application.For example,if the state/regional TCEP funding share was a 40/60 ratio,the state may fund no more than 40%of the cost overrun.

Additional funding sources available for cost overruns are regional and local discretionary funds,including but not limited to, STIP-RIP,STBG,or CMAQ funds.

Attachments:

Exhibit A: Project Programming Request Form
Exhibit B: Project Report
Exhibit C: Performance Metrics Form(f applicable)
Project Baseline Agreement Page 2 of 3
Council Agenda 10-1-2024 9.E-6

Attachment 2

SIGNATURE PAGE
TO

PROJECT BASELINE AGREEMENT
Project Name Five Cities Multimodal Transportation Network Enhancement Project Resolution TCEP-P-2324-08B
(to be completed by CTQ
Peter F. Rod ers Digitally signed by Peter P.Rodgers 4/11/2024 g Date:2024.04.11 15:02:17-07'00'
Pete Rodgers Date
Executive Director
Project Applicant
9�- 05/06/2024
Scott Eades Date
District Director-
Implementing Agency
05/06/2024
Scott Eades Date
District Director
California Department of Transportation
11s-mw06/25/2024
Tony Tavares Date
Director
California Department of Transportation
r/31/2024
Tanisha Taylor Date
Executive Director
California Transportation Commission
Project Baseline Agreement Page 3 of 3
Council Agenda 10-1-2024 9.E-7

Attachment 3

MEMORANDUM OF UNDERSTANDING BETWEEN

CITY OF PISMO BEACH,

SAN LUIS OBISPO COUNCIL OF GOVERNMENTS, AND

CALIFORNIA DEPARTMENT OF TRANSPORTATION

REGARDING REQUIREMENTS TO EXECUTE

COASTAL DEVELOPMENT PERMIT FOR THE

FIVE CITIES MULTIMODAL TRANSPORTATION NETWORK

ENHANCEMENT PROJECT
This Memorandum of Understanding (MOU) is entered into on month/day/year and is made by and between the City of Pismo Beach (CITY), the San Luis Obispo Council of Governments (SLOCOG), and the California Department of Transportation (Caltrans), collectively referred to herein as the AGENCIES.

WHEREAS, SLOCOG is the Lead Nominating Agency for the Five Cities Multimodal Transportation Network Enhancement Project (PROJECT) in the Statewide Transportation Improvement Program (STIP), where PROJECT includes a part-time managed lane approximately 5.27 miles in length on southbound US 101, a mobility transit hub, and electric vehicle charging stations, primarily within the City of Pismo Beach.

WHEREAS, SLOCOG intends to ensure a multimodal pathway is completed in conjunction with the project, including a Shell Beach Path Phase 1 (already complete), a Phase 2, and a Phase 3.

WHEREAS, the California Transportation Commission (CTC) adopted the 2022 Senate Bill 1 Trade Corridor Enhancement Program on June 28, 2023, which includes grant funding to construct PROJECT and Shell Beach Path Phase 2 (SBP 2).

WHERAS, SLOCOG, CTC, Caltrans, and the City of Pismo Beach entered into a Baseline Agreement on July 31, 2024 that sets forth the agreed upon expected benefits, delivery schedule, project cost, and funding plan for PROJECT and SBP 2.

WHEREAS, Caltrans District 5 is the Implementing Agency for the PROJECT.

WHEREAS, the CITY, is the Implementing Agency for SBP 2.

WHEREAS, PROJECT will require a Coastal Development Permit (the CDP) from the California Coastal Commission and it is anticipated that the Commission will require as a condition of approval that Caltrans as the Permittee support planning and construction of the Shell Beach Path Phase 3.

WHEREAS, the AGENCIES wish to demonstrate that, in conjunction with the PROJECT, they intend to plan and complete the Shell Beach Path Phase 3.

WHEREAS, the AGENCIES wish to enter into this MOU to develop a schedule and financial plan for the planning of the Shell Beach Path Phase 3 in its entirety, and to subsequently enter into a cooperative agreement to fund and construct the Shell Beach Path Phase 3. See attached mapping.

IT IS THEREFORE MUTUALLY AGREED:

1. Nothing in this MOU shall be construed to interfere with the authority, under any State law in effect of the date of the enactment of Section 134 of Title 23 USC, of SLOCOG to develop transportation improvement programs.

2. All obligations of Caltrans under the terms of this MOU are subject to appropriation of resources by Council Agenda 10-1-2024 9.E-8

Attachment 3
the Legislature, State Budget Act authority and the allocation of funds by the California Transportation Commission (CTC).

3. All obligations of SLOCOG under the terms of this MOU are subject to approval of programming of resources by the SLOCOG Board of Directors and may also require allocation of funds by the CTC.

4. All obligations of CITY under the terms of this MOU are subject to approval of the CITYs capital improvement programs and programming of resources by the City Council.

5. Within two years from Commission approval of the CDP for the Project, the AGENCIES shall enter into the Cooperative Agreement for the planning and construction of the Shell Beach Path Phase 3.

6. The Cooperative Agreement shall be submitted for review by the Commission's Executive Director prior to execution. The Cooperative Agreement shall include an outline of the AGENCIES' roles and responsibilities, a timeline for completion, and funding of the Shell Beach Path Phase 3. The Cooperative Agreement shall be consistent with the terms and conditions of the CDP issued for the PROJECT. The timetable for completion of the Shell Beach Path Phase 3 shall demonstrate that construction will begin by December 31, 2027.

7. Subject to items 2, 3 and 4 above, Caltrans and SLOCOG shall diligently pursue and complete financial programming and transfer of funds to the CITY.

8. The CITY shall diligently pursue construction and completion of Shell Beach Path Phase 3 as soon as possible, but no later than the deadlines set in the Cooperative Agreement.

9. Funds shall be deposited into separate interest-bearing account(s) specifically established to underwrite the planning, design and engineering, and construction of the Shell Beach Path Phase 3.

10. Within 360 days of the execution of this MOU, and annually thereafter, the AGENCIES shall submit a written report to the California Coastal Commission documenting the progress toward funding and completion of the Shell Beach Path Phase 3.

11. Failure by the AGENCIES to enter into the Cooperative Agreement described above, or to implement it in a manner consistent with the CDP shall be remedied consistent with the terms below. a. In the event the AGENCIES fail to enter into the Cooperative Agreement described above, Caltrans shall submit an application for an amendment to the CDP for the PROJECT to the California Coastal Commission. Such an amendment application shall be required within 90 days upon notice from the Commission's Executive Director. The amendment application shall include a new proposal (or combination of proposals) for multimodal corridor access improvements that provides greater (e.g., longer, more complete amenities, or serving a greater density of population) mitigation than the Shell Beach Path Phase 3. b. In the event the AGENCIES are not able to complete financial programing and transfer the funds to the City by December 31, 2027, or no entity has begun construction of the Shell Beach Path Phase 3 by December 31, 2027, Caltrans shall submit an application for an amendment to the CDP for the PROJECT to the California Coastal Commission. Such an amendment application shall be required within 90 days upon notice from the Commission's Executive Director. The amendment application shall include a new proposal (or combination of proposals) for multimodal corridor access improvements that provides greater (e.g., longer, more complete amenities, or serving a greater density of population) mitigation than the Shell Beach Path Phase 3.
c. The AGENCIES agree that the Commission's Executive Director may extend any deadline above if the Executive Director determines that AGENCIES: (i) have been diligently pursuing the completion of the tasks and milestones, (ii) have demonstrated good cause for any identified delays, and (iii) determines no CDP amendment is legally required.

12. The AGENCIES shall coordinate the planning, funding, design, and construction of the Shell Beach Path Phase 3. The AGENCIES shall work diligently and in good faith to see that the Shell Beach Path Phase 3 is planned, funded, and constructed.

13. No party may terminate its participation in this MOU.

Council Agenda 10-1-2024 9.E-9

Attachment 3
City of Pismo Beach
Mayor City Manager
Date: Date:

City Clerk Legal Counsel
Date: Date:

San Luis Obispo Council of Governments
Andy Pease Peter Rodgers
Board President Executive Director
Date: Date:

Jon Ansolabehere
Legal Counsel
Date:

California Department of Transportation
Scott Eades
District 5 Director
Date:

Council Agenda 10-1-2024 9.E-10

Attachment 4

MASTER AGREEMENT

ADMINISTERING AGENCY-STATE AGREEMENT

STATE-FUNDED PROJECTS
05 City of Pismo Beach
-------- ---------------------------------------------- District Administering Agency
Agreement No. 05-5289S21
This AGREEMENT, is entered into effective this day of 20_, by and between the City of Pismo Beach, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY."
RECITALS:

1. WHEREAS, the Legislature of the State of California 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 these state funds; and

2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and

3. WHEREAS, said PROJECT will not receive any federal funds; and

4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.

NOW, THEREFORE, the PARTIES agree as follows:

Council Agenda 10-1-2024 9.E-11

Attachment 4

ARTICLE I - PROJECT ADMINISTRATION

1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY.

2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work.

3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing.

5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.

6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT.

7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE.

8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA).

9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration.

Council Agenda 10-1-2024 9.E-12

Attachment 4

10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities.

11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work.

12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT.

13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual.

14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities.

15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.

16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.

17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a

Council Agenda 10-1-2024 9.E-13

Attachment 4
fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT.

18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts.

19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT.

20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award.

21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual.

22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA.

23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement.

24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY.

ARTICLE II - RIGHTS-OF-WAY

1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract.

2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise.
(a) Expenditures of capital and support to purchase all real property required for

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Attachment 4
PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT.
(c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization. (d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made.

3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.

ARTICLE III - MAINTENANCE AND MANAGEMENT

1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide.

With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.

2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not

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being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence.

3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.

4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards.

ARTICLE IV - FISCAL PROVISIONS

1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC.

2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter.

3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six- month period

4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included.

5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.

6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY.

7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of

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Attachment 4
indirect cost incurred within each fiscal year being claimed for reimbursement.

ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE.

8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.

9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter.

10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds.

11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs.

12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual.

13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE.

14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter.

15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CaIHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CaIHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand.

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Attachment 4

16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326.

17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments. ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies.

18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations.

19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual.

20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY.

21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.

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Attachment 4

22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.

ARTICLE V

AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS

1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V.

2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.

3. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY.

4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds.

5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for AE Consultant Contracts.

6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335- 10381 for other professional service contracts.

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7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors.

8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures.

9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries.

ARTICLE VI - MISCELLANEOUS PROVISIONS

1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws.

2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT.

3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.

4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE.

5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT.

6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.

7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

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8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.

9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT.

10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT.

11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.

12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager.

13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT.

14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.

15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or

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jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.

16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY.

17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE.

18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.

19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT.

20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.

21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.

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Attachment 4
IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer.

STATE OF CALIFORNIA City of Pismo Beach

DEPARTMENT OF TRANSPORTATION
By By
Chief, Office of Project Management
Oversight City of Pismo Beach
Division of Local Assistance
Representative Name & Title
(Authorized Governing Body
Representative)
Date Date

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Attachment 4

EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM

1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following:
employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section.

2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.

3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.

4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement.

5. Remedies for Willful Violation:
(a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement

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Attachment 4
and the actual cost thereof to STATE to cure ADMINISTERING AGENCY'S breach of this Agreement.

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Attachment 4
PROGRAM SUPPLEMENT NO. 0000OA685 Adv. Project ID Date: September 04, 2024 to 0524000153 Location: 05-SLO-0-PBCH
ADMINISTERING AGENCY-STATE AGREEMENT Project Number: TCEP-5289(017) FOR STATE FUNDED PROJECTS NO 05-5289S21 E.A. Number:

Locode: 5289
This Program Supplement, effective 08/16/2024, hereby adopts and incorporates into the Administering Agency-State Agreement No. 05-5289S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of and is subject to all the terms and conditions thereof.This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project,Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

PROJECT LOCATION: In the City of Pismo Beach on Shell Beach Road from Avila Beach Drive to Spyglass Drive construct a paved shared use path.

TYPE OF WORK: Shared Use Path Extension LENGTH: 0.O(MILES) Estimated Cost State Funds Matching Funds STATE $508,000.00 LOCAL OTHER
$726,000.00 $218,000.00 $0.00
CITY OF PISMO BEACH STATE OF CALIFORNIA
Department of Transportation
By By
Title Chief, Office of Project Implementation Division of Local Assistance
Date
Attest Date
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer Date 09/04/2024 $508,000.00 Program Supplement 05--528-A685-SERIAL Page 1 of 3 Council Agenda 10-1-2024 9.E-26

Attachment 4
05-SLO-0-PBCH
TCEP-5289(017)

SPECIAL COVENANTS OR REMARKS

1. All obligations of STATE under the terms of this Agreement are subject to the appropriation of resources by the Legislature and the encumbrance of funds under this Agreement. Funding and reimbursement are available only upon the passage of the State Budget Act containing these STATE funds.

2. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumberances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.

If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.

3. ADMINISTERING AGENCY agrees to submit PROJECT specific award information, using Exhibit 25-0 of the LAPG, to the STATE's District Local Assistance Engineer (DLAE) immediately after award of contract, and prior to first invoice submittal. Failure to do so will delay processing invoices for the construction contract. As a minimum, the award information should include the following information: project number, Advantage ID, project description, date funds allocated by the CTC, date project was advertised, bid opening date, award date, award amount, and estimated completion date.

4. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects).

5. This PROJECT is programmed to receive State Senate Bill 1, Chapter 5, Statutes of 2017 (SB1) funds from Trade Corridor Enhancement Program (TCEP). This PROJECT will be administered in accordance with the California Transportation Commission (CTC) approved/adopted TCEP Guidelines, and this Program Supplement Agreement.

Program Supplement 05--528-A685-SERIAL Page 2 of 3 Council Agenda 10-1-2024 9.E-27

Attachment 4
05-SLO-0-PBCH
TCEP-5289(017)

SPECIAL COVENANTS OR REMARKS
ADMINISTERING AGENCY agrees to use eligible matching funds of the type identified in its project application/nomination, for the required dollar for dollar minimum local match to the TCEP funds.

ADMINISTERING AGENCY agrees to submit invoices for PROJECT costs in accordance with the Local Assistance Procedures Manual (LAPM).

To satisfy the SB1 accountability requirements, ADMINISTERING AGENCY agrees to:
1) Submit Progress Reports on the activities, expenditures and progress made towards implementation of the PROJECT, as applicable, per CTC SB1 Transparency and Accountability Guidelines. Changes to the scope and budget from the CTC approved project application/nomination shall also be identified in these reports.

The Progress Reports shall be submitted to the Division of Local Assistance - Office of State Programs via the CaISMART reporting tool. 2) Submit a Completion Report after each phase using TCEP funds is complete and a Final Delivery Report to the CTC, within six months of the PROJECT construction contract being accepted, on the scope of the completed PROJECT, its final costs as compared to the project budget in its project application/nomination, its duration as compared to the project schedule in its application/nomination and performance outcomes derived from the PROJECT as compared to those described in the project application/nomination, per the SB1 Transparency and Accountability Guidelines.

6. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the California Transportation Commission. Any changes to the approved PROJECT scope without the prior expressed approval of the California Transportation Commission are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement.

Program Supplement 05--528-A685-SERIAL Page 3 of 3 Council Agenda 10-1-2024 9.E-28

Attachment 5
San Luis Obispo Council of Governments
Agreement No. PB-FAST-01

RSTP EXCHANGE/STBG COOPERATIVE AGREEMENT
Amendment No. 1 to Agreement No. PB-FAST-01
THIS AGREEMENT, ENTERED INTO ON THE DATE BELOW STATED is between the San Luis Obispo Council of Governments, referred to herein as"SLOCOG", and the

CITY OF PISMO BEACH
a municipal corporation and
political subdivision of the
State of California, referred
to herein as the"CITY".

RECITALS
WHEREAS, SLOCOG and the CITY are authorized, pursuant to requirements of the Fixing America's Surface Transportation (FAST Act), FAST Act § 1109(a), to enter into a Cooperative Agreement for any transportation purpose within the CITY; and
WHEREAS, SLOCOG and the CITY entered into Agreement No. AG-FAST-01 ("Agreement") on December 5, 2018; and,
WHEREAS, the Agreement is being modified by this Amendment No. 1 to reflect SLOCOG Board programming actions on January 2, 2022, to modify the CITY's Surface Transportation Block Grant Program(STBGP)"Local Choice"program consistent with the 2022 Regional Transportation Improvement Program; and,
WHEREAS, the Agreement is being modified by this Amendment No. 1 to reflect SLOCOG Board programming actions on August 3,2022,to modify the CITY's Surface Transportation Block Grant Program (STBGP)program of projects consistent with the adoption of SLOCOG's Community Betterments Cycle 1.

NOW,THEREFORE,the parties mutually agree as follows:
1) That Agreement No. PB-FAST-01 is hereby amended by adding the programming amounts of January 2, 2022 (2022 Regional Transportation Improvement Program (RTIP), and January 10, 2024(2024 RTIP).
2) That reimbursement of invoices should be based on the estimates provided by the CITY and approved by the SLOCOG Board.
3) That SLOCOG, as grantor of these funds, be recognized in all promotion of the projects in the Amendment. CITY shall include the recognition of SLOCOG in all project branding, signage, press releases, and other marketing materials related to the projects. 4) That remaining terms and conditions of the original Agreement No. PB-FAST-01 shall remain in full force and effect unless otherwise amended per agreement.

SIGNATURES:

CITY OF PISMO BEACH SAN LUIS OBISPO

COUNCIL OF GOVERNMENTS
By: By:

Jorge Garcia, City Manager Peter Rodgers, Executive Director Date: Date:

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 1 Council Agenda 10-1-2024 9.E-29

Attachment 5
ATTEST:

By:

Erica Inderlied, City Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:

By: By:

Dave Fleishman, City Attorney Jon Ansolabehere, SLOCOG Counsel Date: Date:

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 2 Council Agenda 10-1-2024 9.E-30

Attachment 5
TABLE 1

CITY OF PISMO BEACH PROJECTS
For
Amendment No. 1 to Agreement No. PB-FAST-01
SLOCOG# Project Name USHA RSHA
SMAPPB02U Urban Area Apportionment $124,800 - (FY 21/22-FY 24/25)
FUTURE# Shell Beach Road Shared Use Path - $500,000 Extension Project(P.E. only)
Total $124,800 $500,000
SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 3 Council Agenda 10-1-2024 9.E-31

Attachment 5

EXHIBIT A
San Luis Obispo Council of Governments
Regional Surface Transportation Program Exchange (RSTP Exchange)

REIMBURSEMENT REQUEST FORM
Agency Name: Date:

Contact Person:

Project Number(s): Regional: Urban:

Project Title:

This Invoice Covers Work Completed from: / / to:

Project Budget Information: (complete box below-refer to cooperative agreement "Table I"for budget information)
Total SPENT This invoice $ - When using electronic format:fill in unshaded areas only Other Sources TOTAL
Regional Urban Non Regional (must equal 100%)
Reimbursement Rate by Fund
Source(must be consistent with Exhibit 0%
A Project Sheet)
Pro-rata Reimbursement by
Funding Source $ $ - $ $
(Regional/Urban)
Please send a check for$
Total RSTP Exchange share due this invoice (total of heavier shaded boxes above)
Attachments: 1) A brief description of work completed; and 2) Consultant invoices
3) Proof of payment (e.g. copy of CITY check to consultant).

Signed:
(Agency Rep.)
Shaded boxes below for SLOCOG Use
Regional Planner Approval Accounting Initials
SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 4 Council Agenda 10-1-2024 9.E-32

Attachment 5

EXHIBIT B

PROJECT COMPLETION FORM
for
RSTP Exchange Projects
This form notifies SLOCOG of project completion in accordance with the provisions in the Cooperative Agreement noted below. Our records indicate that the project listed below, funded all or in part with RSTP Exchange funds, has been completed:

Project Name:

Project Number(s):

Cooperative Agreement Date(Recipient Agency):

Approved RSTP amount:

I certify, on behalf of the CITY/County
name of authorized official
of that the project named above was completed name ofjurisdiction
on in accordance with the provisions set forth in the cooperative approximate date of completion
agreement dated It is my understanding that all savings date jurisdiction representative signed
from a cost underrun will be returned to for
CITY/county or SLOCOG
reprogramming in accordance with the cooperative agreement.

Signed: Date:
signature of authorized official date signed
Return completed and signed Project Completion Forms within 2 months of the completion of each project to:

SLOCOG
1114 Marsh Street
San Luis Obispo, CA 93401
Attn: Stephen Hanamaikai
SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 5 Council Agenda 10-1-2024 9.E-33

Attachment 5

EXHIBIT C
Project Eligibility by Fund Program - Project eligibility requirements by funding program are summarized below.

I. Regional Surface Transportation Program. The Surface Transportation Program (STP) provides flexible funding that may be used by States and localities for projects to preserve and improve the conditions and performance on any Federal-aid highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure, and transit capital projects, including intercity bus terminals. SLOCOG's 2014 RTP will provide guidance on priority routes for regional funding consideration.

The STP program supports national performance goals as defined in FAST-Act, but there are no measures tied specifically to this program. Eligible costs for funds under these programs include pre-project initiation documents (Pre-PID), project study reports (PSR), preliminary engineering (PE), right-of-way acquisition (RW), capital costs, and construction costs associated with an eligible activity.

Eligible Project Activities:
• Construction, reconstruction, rehabilitation, resurfacing, restoration, preservation, or operational improvements for highways, streets, and roads; bikeways and other surface transportation improvements.
• Replacement, rehabilitation, and preservation of bridges on any public road, including construction or reconstruction necessary to accommodate other modes. • Construction of new bridges on a Federal-aid highway. • Capital costs for transit projects eligible for assistance under chapter 53 of title 49, including vehicles and facilities used to provide intercity passenger bus service. • Carpool projects, fringe and corridor parking facilities and programs, including electric and natural gas vehicle charging infrastructure, bicycle transportation and pedestrian walkways, and ADA sidewalk modification.
• Highway and transit safety infrastructure improvements and programs, installation of safety barriers and nets on bridges, hazard eliminations, mitigation of hazards caused by wildlife, railway-highway grade crossings.
• Highway and transit plans research and development. • Capital and operating costs for traffic monitoring, management and control facilities and programs, including advanced truck stop electrification. • Surface transportation planning.
• Transportation Alternatives; newly defined, includes most transportation enhancement eligibilities with the exception of landscaping.
• Transportation control measures (e.g. as defined by region's APCD Clean Air Plan) • Development and establishment of transportation management systems. • Environmental mitigation efforts
• Modifications to intersections with high accident rates or levels of congestion. • Infrastructure-based ITS capital improvements consistent with the Central Coast ITS Implementation Plan.
• Environmental restoration and pollution abatement.

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 6 Council Agenda 10-1-2024 9.E-34

Attachment 5
• Control of noxious weeds and establishment of native species. • Congestion pricing projects and strategies, including electric toll collection and travel demand management strategies and programs.
• Recreational trails projects.
• Construction of marine terminals.
• Truck parking facilities.
• Surface transportation infrastructure modifications within port terminal boundaries, only if necessary to facilitate direct intermodal interchange, transfer, and access into and out of the port.
• Construction and operational improvements for a minor collector in the same corridor and in proximity to an NHS route if the improvement is more cost-effective(as determined by a benefit-cost analysis)than an NHS improvement and will enhance NHS level of service and regional traffic flow.

Available Funding
• Direct urban and rural apportionment up to minimum required equal to 110%, plus 15%, of the FY 1990/91 allocation of Federal Aid Secondary(FAS)based upon 2010 census data (initiated in 2015). Final apportionment tables will be developed for the August 2017 Board meeting.
• Regional discretionary funds of$S.OM through FY 2021.

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 7 Council Agenda 10-1-2024 9.E-35

Attachment 5

EXHIBIT D
General Programming Policies -All Fund Programs
SLOCOG's 2014 Regional Transportation Plan/Sustainable Communities Strategy identifies an overall goal to develop a multi-modal transportation system which is balanced, coordinated, safe, cost effective, environmentally sound, economically supportive, meeting all the financially reasonable transportation needs of all citizens in San Luis Obispo County. General programming policies affecting the decision making and project selection of the surface transportation system are summarized as follows:

1. SLOCOG will strive to be fair and equitable in the allocation of funding between the various subregions in the county and among member jurisdictions.

2. SLOCOG will adhere to the federal and state statutes, policies, regulations and guidelines applicable to each fund being allocated, and require recipients of grants to do the same.

3. SLOCOG will recommend projects for funding that are:
• Deliverable
• Consistent with the goals, policies, and programs of the 2014 Regional Transportation Plan
• Regionally Significant
• Responsive to immediate funding and project needs
• Consistent with specific criteria of a particular funding program • High likelihood of leveraging other funding (state, federal and/or local)

4. SLOCOG will seek to implement all programs in a timely and efficient manner.

5. SLOCOG will seek to maximize the use of the funds for general public benefit,and will marshal other funds when possible to complete funded projects by prioritizing joint-funded projects.

6. SLOCOG will integrate social equity factors in to the decision making process by applying the findings generated from the Disadvantaged Communities Assessment that is now amended in to the 2014 RTP/SCS.

7. SLOCOG will, to the extent feasible, assure the integration of all projects with jurisdiction, region and statewide transportation plans, providing a comprehensive, systematic approach to resolving transportation problems in the region.

8. SLOCOG will retain maximum flexibility of federal programs under FAST ACT,where feasible, and will also seek to exchange Surface Transportation Block Grant Program (STBGP) (federal)funds for Regional Surface Transportation Program (RSTP) Exchange (state)funds, for reasons of cost efficiency and simplicity in administration. Through the RSTP Exchange funds ultimately become (local)funds.

9. SLOCOG will retain a continuing commitment to emphasize quality and promote excellence in the development of competitive proposals, seeking to fund the best possible projects in terms of cost effectiveness, public benefit and regional and local significance.

10. SLOCOG will reserve discretionary funds for advance development work to ensure regionally significant projects are well scoped, alternatives assessed, accurate estimates prepared, and a finance plan for implementation is developed.

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 8 Council Agenda 10-1-2024 9.E-36

Attachment 5

11. SLOCOG will reserve off-the-top funding for programs identified in the 2014 RTP/SCS, including Transportation Demand Management (i.e. Rideshare), Active Transportation Partnership Program, Highway Safety Improvement Program and Safe Routes to School.

12. SLOCOG will maintain funding commitments for existing programmed projects as long as those projects have achieved the project delivery milestones set out at the time of programming. Unavoidable delays to the project delivery milestones will be considered on a case by case basis.

13. SLOCOG will commit a portion of discretionary funding to match and leverage other competitive state-wide grant programs (e.g. new SB1 programs, State of CA Active Transportation Program, Highway Safety Improvement Program (HSIP) for projects of regional significance.)

14. SLOCOG may consider using the above referenced fund sources to address surface transportation needs as identified in the June 7th 2017 SLCOOG Board Staff Report item B-3 2018 RTIP Fund Assumptions Programming Approach - Table 2 Sections 1, 2, and 3, and defer the programming of funds on needs identified in Section 4 (Other Multi-Modal Needs, including bicycle, pedestrian, and public transit related needs).

SLOCOG RSTP Exchange/STBG General Cooperative Agreement page 9 Council Agenda 10-1-2024 9.E-37