TRAN2507.SR.TH.DD
CITY OF SIMI VALLEY
MEMORANDUM
T
O:
FROM:
Subject:
May 19, 2025
CITY Council
Department of Public Works
ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE CERTIFICATIONS AND ASSURANCES AND APPOINT
AUTHORIZED AGENT FOR ANY ACTIONS NECESSARY FOR THE
PURPOSE OF OBTAINING THE LOW CARBON TRANSIT
OPERATIONS PROGRAM (LCTOP) FUNDS
STAFF RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution No. 2025- 12 authorizing the City Manager to execute the certifications and assurances (Attachment B) and appoint the Authorized Agent(s) as required by Caltrans (Attachment A), for any actions necessary for the purpose of obtaining the Low Carbon Transit Operations Program (LCTOP) funds.
BACKGROUND AND OVERVIEW
The Low Carbon Transit Operations Program (LCTOP) is part of California’s comprehensive Transit, Affordable Housing, and Sustainable Communities Program , established in 2014 by Senate Bill 862 (SB 862). LCTOP was created to provide both operating and capital assistance for transit agencies aimed at reducing greenhouse gas emissions and improving mobility. Part of the funding is allocated directly to the transit operators based on their proportional share of the statewide transit fares collected in the prior year. For fiscal year FY2024- 25, the estimated State allocation to the City is $20,726.
In recent years, VCTC has used the regional LCTOP funds it received to r eimburse the county transit operators the approved fare for the Free Fare transit programs : College Ride Program, Youth Free Ride Program, and Free Fare Days . These programs have been proven effective in increasing bus usage, reducing school traffic congestion, and fostering comfort with public transit. In Simi Valley, nearly 2,000 college students and 5,700 youth ride the City transit services each month. However, due to limited regional LCTOP funds and the rising demand for the program, VCTC is reducing the reimbursement rate to 75% of the fares this year. Staff recommends that the City utilize its LCTOP formula funds to recover the reimbursement shortfall for the college and student ride-free programs.
FINDINGS AND ALTERNATIVES
The City of Simi Valley is eligible to receive $20,726 in LCTOP formula funds for FY2024-25. These funds can be utilized to offset the reduction in funding from VCTC for AGENDA ITEM NO.
Cons ent (9)
TRAN2507.SR.TH.DD
the Free Fare transit programs. Based on ridership trends, staff projects that the LCTOP funds will be sufficient to cover the reimbursement shortfall.
To receive and utilize these funds, the City must adopt a resolution authorizing the City Manager to execute the certifications and assurances and appoint authorized agent(s) for any actions necessary for the purpose of obtaining the LCTOP funds.
The following alternatives are available to the City Council:
1. Adopt the attached Resolution No. 2025- 12 authorizing the City Manager to execute the Certifications and Assurances and appoint authorized agent(s) for any action necessary for the purpose of obtaining the LCTOP funds;
2. Provide other direction to staff.
Staff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I move to adopt Resolution No. 2025- 12 authorizing the City Manager to execute the Certifications and Assurances and appoint the Authorized Agent(s) for any action necessary for the purpose of obtaining the LCTOP funds.
SUMMARY
The City has participated in the VCTC ’s Free Fare transit programs : College Ride Program, Youth Free Ride Program, and Free Fare Days . These programs have positively impacted transit usage, especially among youth riders who lack transportation options. However, VCTC is reducing its reimbursement rate to all the transit operators.
In response, t he State is providing the City with LCTOP funds which can be used to supplement the VCTC funds. To access these funds, the City needs to adopt a resolution authorizing the City Manager to execute the certifications and assurances and appoint authorized agent(s) for any action necessary for the purpose of obtaining the LCTOP funds.
___________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Ben Gonzales, Deputy Public Works Director (Transit)
INDEX Page
Resolution No. 2025-12 .......................................................................... 3 Attachment A - Authorized Agent ........................................................... 5 Attachment B - Certifications and Assurances ....................................... 6 2 RESOLUTION NO.2025-12
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
THE CERTIFICATIONS AND ASSURANCES AND APPOINT
AUTHORIZED AGENT FOR ANY ACTIONS NECESSARY FOR THE
PURPOSE OF OBTAINING THE LOW CARBON TRANSIT OPERATIONS
PROGRAM (LCTOP) FUNDS
T
he City Council of the City of Simi Valley does resolve as follows:
SECTION 1: Findings. The City Council finds and declares as follows:
A. T
he State of California has made $20,726 available to the City of Simi Valley though the Low Carbon Transit Operations Program (LCTOP) for transit projects; B. E
ligible recipients are transportation planning agencies and transit operators eligible for State Transit Assistance (STA) funds per Public Utilities Code § 99313 or § 99314. The City of Simi Valley is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects;
C.
The statutes related to state-funded transit projects require a local or regional implementing agency to abide by various regulations;
D. S
enate Bill 862 (2014) named the Department of Transportation (Department) as the administrative agency for the LCTOP; and
E.
The Department developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors (local agencies).
SECTION 2: Eligible Project. In accordance with the Department Guidelines (p.9), the City Council finds as follows:
• P
roject Name:
Free Fare Transit Programs Supplement
S
hort description of project:
The project will supplement the $20,726 to support the Ventura County Transportation Commission (VCTC) Free Fare Transit Programs. These programs allow youth and college students to ride for free and provide free fare days for certain selected dates throughout the year. Currently, the reimbursement provided by VCTC covers only 75% of the total fare costs.
Therefore, the requested amount of $20,726 will be used to address the shortfall in these reimbursements.
• A
mount of LCTOP funds requested:
$20,726
3 • Amount to benefit Priority Populations:
All youth and college students will benefit from the program.
SECTION 3: Authorizations.
A. T
he City of Simi Valley wishes to delegate authorization to execute all required documents of the LCTOP program, including any amendments with the Department, to Samantha C. Argabrite, City Manager
B. T
he City Manager, or designee, is authorized to execute all required documents of the LCTOP program, including any amendments with the California Department of Transportation, to individuals listed on the Authorized Agent form.
C. T
he City Manager, or designee, is authorized to accept and spend the grant monies identified in this Resolution for the purposes set forth herein.
D. T
he City Council of the City of Simi Valley agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations and guidelines for all LCTOP funded transit projects.
SECTION 4: The City Council amends or supplements the City’s Budget for fiscal year 2025-26 to appropriate the monies identified herein to pay for the items proposed by the City in support of its grant application. The City Manager, or designee, is authorized to implement the purpose of this section.
SECTION 5: This Resolution will become effective immediately upon adoption.
P
ASSED and ADOPTED this 19th day of May 2025.
A
ttest:
___
__________________________
Lucy Blanco, City Clerk
A
pproved as to Form: Approved as to Content:
___
__________________________ _______________________________ Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager ___
________________________________
Ronald K. Fuchiwaki, Public Works Director
4 Res. No. 2025-12
TRAN2519.SR.TH
Authorized Agent
AS THE City Manager
(Chief Executive Officer/Director/President/Secretary)
OF THE Ventura County, City of Simi Valley
(Name of County/City/Transit Organization)
I hereby
authorize the following individual(s) to execute for and on behalf of the City of Simi Valley, any actions necessary for the purpose of obtaining Low Carbon Transit Operations Program (LCTOP) funds provided by the California Department of Transportation, Division of Local Assistance. I understand that if there is a change in the authorized agent, the project sponsor must submit a new form. This form is required even when the authorized agent is the executive authority himself. I understand the Board must provide a resolution approving the Authorized Agent. The Board Resolution appointing the Authorized Agent is attached.
Samantha Argabrite, City Manager OR
(Name and Title of Authorized Agent)
Ron Fuchiwaki, Director of Public Works OR
(Name and Title of Authorized Agent)
Ben Gonzales, Deputy Public Works Director, Transit OR
(Name and Title of Authorized Agent)
Click here to enter text. OR
(Name and Title of Authorized Agent)
Samantha C. Argabrite City Manager
(Print Name) (Title)
(Signature)
Approved
this 19
day
of May , 2025
ATTACHMENT A
5 TRAN2519.SR.TH
Certifications and Assurances
Lead
Agency: City of Simi Valley
Project Title: Free Fare Transit Programs
Prepared by: Ben Gonzales, Deputy Director of Public Works, Transit The Cali
fornia Department of Transportation (Caltrans) has adopted the following Certifications and Assurances for the Low Carbon Transit Operations Program (LCTOP). As a condition of the receipt of LCTOP funds, Lead Agency must comply with these terms and conditions.
A. Gen
eral
1. The Lead A
gency agrees to abide by the current LCTOP Guidelines and applicable legal requirements.
2. The Lead A
gency must submit to Caltrans a signed Authorized Agent form designating the representative who can submit documents on behalf of the project sponsor and a copy of the board resolution appointing the Authorized Agent.
B. Proje
ct Administration
1. The Lead A
gency certifies that required environmental documentation is complete before requesting an allocation of LCTOP funds. The Lead Agency assures that projects approved for LCTOP funding comply with Public Resources Code § 21100 and § 21150.
2. The Lead A
gency certifies that a dedicated bank account for LCTOP funds only will be established within 30 days of receipt of LCTOP funds.
3. The Lead A
gency certifies that when LCTOP funds are used for a transit capital project, that the project will be completed and remain in operation for its useful life.
4. The Lead A
gency certifies that it has the legal, financial, and technical capacity to carry out the project, including the safety and security aspects of that project.
5. The Lead A
gency certifies that they will notify Caltrans of pending litigation, dispute, or negative audit findings related to the project, before receiving an allocation of funds.
ATTACHMENT B
6 TRAN2519.SR.TH
6. The Lead Agency must maintain satisfactory continuing control over the use of project equipment and facilities and will adequately maintain project equipment and facilities for the useful life of the project.
7. Any
interest the Lead Agency earns on LCTOP funds must be used only on approved LCTOP projects.
8. The L
ead Agency must notify Caltrans of any changes to the approved project with a Corrective Action Plan (CAP).
9. Under
extraordinary circumstances, a Lead Agency may terminate a project prior to completion. In the event the Lead Agency terminates a project prior to completion, the Lead Agency must (1) contact Caltrans in writing and follow-up with a phone call verifying receipt of such notice; (2) pursuant to verification, submit a final report indicating the reason for the termination and demonstrating the expended funds were used on the intended purpose; (3) submit a request to reassign the funds to a new project within 180 days of termination.
C. Re
porting
1. The L
ead Agency must submit the following LCTOP reports:
a. Annual Project Activity Reports October 30th each year. b. A C
lose Out Report within six months of project completion. c. The a
nnual audit required under the Transportation Development Act (TDA), to verify receipt and appropriate expenditure of LCTOP funds. A copy of the audit report must be submitted to Caltrans within six months of the close of the year (December 31) each year in which LCTOP funds have been received or expended.
d. Pr
oject Outcome Reporting as defined by CARB Funding Guidelines. e. Jobs
Reporting as defined by CARB Funding Guidelines.
2. Ot
her Reporting Requirements: CARB develops and revises Funding Guidelines that will include reporting requirements for all State agencies that receive appropriations from the Greenhouse Gas Reduction Fund. Caltrans and project sponsors will need to submit reporting information in accordance with CARB’s Funding Guidelines, including reporting on greenhouse gas reductions and benefits to disadvantaged communities.
D. Cost Principles
1. The L
ead Agency agrees to comply with Title 2 of the Code of Federal Regulations 225 (2 CFR 225), Cost Principles for State and Local Government, and 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
7 TRAN2519.SR.TH
2. The L
ead Agency agrees, and will assure that its contractors and subcontractors will be obligated to agree, that:
a. 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 and b. Thos
e parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
Every sub-recipient receiving LCTOP funds as a contractor or sub- contractor shall comply with
Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments.
3. Any
project cost for which the Lead Agency has received funds that are determined by subsequent audit to be unallowable under 2 CFR 225, 48 CFR, Chapter 1, Part 31 or 2 CFR, Part 200, are subject to repayment by the Lead Agency to the State of California (State). All projects must reduce greenhouse gas emissions, as required under Public Resources Code section 75230, and any project that fails to reduce greenhouse gases shall also have its project costs submit to repayment by the Lead Agency to the State. Should the Lead Agency fail to reimburse moneys due to the State within thirty (30) days of demand, or within such other period as may be agreed in writing between the Parties hereto, the State is authorized to intercept and withhold future payments due the Lead Agency from the State or any third-party source, including but not limited to, the State Treasurer and the State Controller.
A. Reco
rd Retention
1. The L
ead Agency agrees and will assure that its contractors and subcontractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred project costs and matching funds by line item for the project. The accounting system of the Lead Agency, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles (GAAP) and enable the determination of incurred costs at interim points of completion. All accounting records and other supporting papers of the Lead Agency, its contractors and subcontractors connected with LCTOP funding shall be maintained for a minimum of three (3) years after the “Project Closeout” report or final Phase 2 report is submitted (per CARB Funding Guidelines, Vol. 3, page
3.A-16), and shall be held open to inspection, copying, and audit by representatives of the State and the California State Auditor. Copies thereof will be furnished by the Lead Agency, its contractors, and subcontractors upon receipt of any request made by the State or its agents. In conducting an audit of the costs claimed, the State will rely to the maximum extent possible on any prior 8 TRAN2519.SR.TH
audit of the Lead Agency pursuant to the provisions of federal and State law. In the absence of such an audit, any acceptable audit work performed by the Lead Agency’s external and internal auditors may be relied upon and used by the State when planning and conducting additional audits.
2. For
the purpose of determining compliance with Title 21, California Code of Regulations, Section 2500 et seq., when applicable, and other matters connected with the performance of the Lead Agency’s contracts with third parties pursuant to Government Code § 8546.7, the project sponsor, its contractors and subcontractors and the State shall each maintain and make available for inspection 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. All of the above referenced parties shall make such materials available at their respective offices at all reasonable times during the entire project period and for three (3) years from the date of final payment. The State, the California State Auditor, or any duly authorized representative of the State, shall each have access to any books, records, and documents that are pertinent to a project for audits, examinations, excerpts, and transactions, and the Lead Agency shall furnish copies thereof if requested.
3. The L
ead Agency, its contractors and subcontractors will permit access to all records of employment, employment advertisements, employment application forms, and other pertinent data and records by the Civil Rights Department, or any other agency of the State of California designated by the State, for the purpose of any investigation to ascertain compliance with this document.
F. Sp
ecial Situations
Cal
trans may perform an audit and/or request detailed project information of the project sponsor’s LCTOP funded projects at Caltrans’ discretion at any time prior to the completion of the LCTOP.
I c
ertify all these conditions will be met.
Samantha Argabrite City Manager
(Print Authorized Agent) (Title)
(Signature) (Date)
9