DATE: JANUARY 10, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PUBLIC WORKS DIRECTOR
BY: ANDREW EASTERLING, TRAFFIC ENGINEER
TITLE: MASTER AGREEMENT FOR STATE FUNDED PROJECTS
RECOMMENDED MOTION:
A motion recommending the City Council approve a Resolution authorizing and directing the City Manager to execute the Master Agreement Administering Agency-State Agreement for State-Funded Projects.
EXECUTIVE SUMMARY:
The City’s current Master Agreement for use of State Funds was executed in 2009, and Caltrans has informed the City that the existing agreement must be updated, in order to be eligible to receive state grant funding for transportation projects in the future. The Master Agreement Administering Agency-State Agreement for State-Funded Project is the current standard agreement with up-to-date requirements and procedures. By executing this agreement, the City will be eligible to receive State grant funds for future transportation projects.
BACKGROUND:
Many of the City’s transportation projects are funded through federal or state grant programs. Recent projects include the Bardin Safe Routes to Schools Project, the Downtown Complete Streets Project, the Alvin Safe Routes to Schools Project, and the North Main Intersection Improvements Project. Even many of the Federal-Aid Highway Program projects and most all of the local assistance programs are funded with state-only funds. The State of California Department of Transportation, Caltrans, requires a master agreement with each local public agency (LPA) in order to pay grant funds to the LPA. The Division of Local Assistance (DLA) prepares and sends these agreements directly to the LPA. The agreements must be executed before any invoices for payment can be processed.
The City’s current Master Agreement for use of State Funds, Agreement No. 00256S (Attachment 2), was executed on July 28, 2009. Caltrans District 5 Local Assistance has informed the City that the current master agreement is out of date and must be updated. The California Transportation Commission has recently awarded the City grant funds for two Safe Routes to Schools projects for the Active Transportation Program Cycle 7. By executing this agreement, the City will be eligible to receive State grant funds for future transportation projects. The City may forfeit future state grant funds if the agreement is not updated.
The standard Caltrans Administering Agency-State Agreement for State-Funded Projects (State-only Master Agreement) was updated in 2021. The updates to the State-only Master Agreement (previously updated in 2006) were intended to ensure the agreement language is in accordance with current State requirements and procedures. Some notable changes to the State-only Master Agreement include:
Language relating to local agency employee in responsible charge (Article I) Revisions in various paragraphs of Articles II and III.
Language pertaining to invoice procedures (Article IV)
Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP) submittal language, (Article IV) Language pertaining to Budgetary Liquidation period (Article IV) Administrative, Cost Principles and Audit Requirements (Article IV, V).
Note that certain Federal requirements are adopted, as is the case in the 2006 agreement, with updates made in this agreement in part related to 2 CFR 200.
A&E requirements (Article V)
Updates to the Fair Employment Practices Addendum (Exhibit A) Most of the original agreement remains unchanged or similar to the prior agreement. Active projects already under the original agreement will remain tied to the prior Master Agreement and respective supplemental agreements.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This action helps support several of the City Council Goals. This action enables the City to be eligible to receive state grant funds for transportation projects. This enables the City to bring in non-local funds for road improvements and helps contribute to the community’s economic health and support the Council’s goal of “Economic Development”. This action helps finance infrastructure improvements that improve traffic safety, urban greening, and safe routes to schools, which supports the City Council’s goals of “Public Safety”, “Infrastructure and Environmental Sustainability”, and “Youth and Seniors” respectively.
DEPARTMENTAL COORDINATION:
The Public Works and Finance Department administer grant funded transportation projects. The City Attorney’s office reviews and approves all master agreements.
FISCAL AND SUSTAINABILITY IMPACT:
There is no impact to the General Fund. This action will allow the City to be eligible to receive state grant funds for transportation projects.
ATTACHMENTS:
Resolution
Attachment 1: Master Agreement Administering Agency-State Agreement for State-Funded Projects Attachment 2: Master Agreement for use of State Funds, Agreement No. 00256S Page | 3
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