This report requests authorization to execute a memorandum of understanding (MOU) with the Los Angeles County Metropolitan Transportation Authority (MTA). This MOU would authorize the MTA to act as a pass-through agent on the City�s behalf to administer the Congressional Earmark funds with the Federal Transit Administration (FTA). The 2002 Congressional Earmark of $396,012 was awarded for the purchase of alternative fuel shuttle buses. This report also requests an appropriation of Proposition C funds to front the remainder of this new grant source.

Background

During the 1997 MTA Call for Projects, the City submitted an application for the purchase of shuttle buses. In October 2000, a grant for $305,000, with a local match of $180,000 was included in the Federal Transportation Improvement Program (FTIP).

The FTA requires agencies receiving funds for transit projects to complete a comprehensive certification process. This certification includes extensive instruction on: the FTA�s electronic application system; the procedure for coordinating the review, input, and approval of effected unions; and, the process for obtaining necessary certification by the Department of Labor.

In lieu of completing this extensive training, the FTA suggested that the MTA act as a pass-through agent for LA county agencies that do not have the required certification. MTA�s extensive experience in applying for and receiving federal transit funds uniquely qualifies it to act in this capacity. In February 2001, the MTA Board authorized its staff to act as the pass-through grant sponsor for FTA funds on behalf of the City of Burbank and seven other local Cities and agencies.

On October 2^nd, 2001, the City Council authorized the execution of an MOU with the MTA to act as our pass-through agent in order to receive the federal funding for the shuttle bus purchase. The cost of MTA�s assistance in administering the grant and complying with FTA�s certification requirements was 5% of the $305,000 grant, equaling $15,250. While this did reduce the grant funding, staff believed that the time and expense saved by this assistance outweighed the cost of the services.

In 2002, the City of Burbank was awarded a Federal Congressional Earmark of $396,012 with a local match of $99,003 for the purchase of additional alternative fuel shuttle buses. With these funds added with the original Federal Grant from the MTA Call for Projects, the City had received enough funding to purchase a total of seven new Compressed Natural Gas (CNG) Shuttle Buses for the Media District fixed route service.

As with the original grant, since the Congressional Earmark is federally funded, the City again requires the assistance of the MTA to act as a pass-through agent to receive the funding. This requires another MOU to be executed with the MTA for this separate funding source.

The cost of MTA�s assistance in administering the grant and complying with FTA�s certification requirements is again 5% of the $396,012 grant amount, equaling $19,800. The service staff has received from the MTA thus far on the original grant awarded has been extremely efficient, supportive, and helpful. The time and expense saved by the MTA�s assistance has thus far proven itself to outweigh the cost of the services, and has helped staff move through the procurement process efficiently.

Staff recommends that the proposed MOU be executed authorizing the MTA to act as the pass-through agent to receive the Federal Congressional Earmark on the City�s behalf. Staff continues to believe that the time and expense saved by using MTA�s assistance outweighs the cost of the service.

Authorization to execute the proposed MOU will authorize the MTA to act as the City�s pass-through agent in securing the grant funding from the FTA. The cost of this service is 5% of the $396,012 grant amount, $19,800.

With the original MTA Call for Projects Grant of $305,000 and local match of $180,000, and the Congressional Earmark of $396,012 with local match of $99,003, the total project budget for the purchase of seven CNG Shuttle Buses is $980,015. Previous appropriations for this project total $703,500 in Proposition C funds. Therefore, an appropriation of $276,515 of Proposition C funds is needed from the Unappropriated Fund Balance to front the rest of the Congressional Earmark Funds.

Staff recommends that the City Council:

• Approve the proposed resolution authorizing the execution of the MOU with the MTA, and
• Appropriate $276,515 from the Proposition C Unappropriated Fund Balance 105.ND000.30004.0000.000000 to the CNG Bus Purchase project account 105.PR44A.70010.0000.13883.

go to the top