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HomeMy WebLinkAboutReso 99-082 - Approving entering into Agreements with Caltrans R . , � • RESOLUTION NO. 99- �'f Z-- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING ENTERING INTO THE FOLLOWING AGREEMENTS WITH CALTRANS: (1) ADMINISTERING AGENCY-5TATE MASTER AGREE- MENT NO. 000068 FOR STATE FUNDED PROJECTS; AND (2) PROGRAM SUPPLEMENT NO. 0003 FOR PAVEMENT REHAB ON LOCAL STREETS WITHIN THE CITY, INCORPORATED INTO �HE ADMINISTERING AGENCY—STATE MASTER AGREEMENT NO. 000068; A.ND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO SIGN ALL FUTURE PROGRAM SUPPLEMENTS AS THEY ARE DEVELOPED. BE IT RESOLVED that the City Council of the City of Redding approves entering into the Adininistering Agency—State Master Agreement No. 000068 and Program Supplement No. 003 between the City of Redding as the Administering Agency and the State of California, acting by and through its Department of Transportation. Copies of the Master Agreement and Program Supplement are attached and made a part hereof. BE IT FURTHER RESOLVED that: 1. The Mayor is authorized to sign Master Agreement No. 000068 on behalf of the City, as well as any supplemental agreements required to finalize the Project documents prior to contract award. 2. The Director of Public Works is authorized to sign Program Supplement No. 003 on behalf of the City, as well as any future program supplements as they are developed. 3. The City Clerk is directed to attest the Mayor's signatures and impress the official seal of the City of Redding to the necessary documents. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the l8th day of �ay , 1999, by the following vote: AYES: COUNCILMEMBERS: Cibula, Kight, McGeorge, Pohlmeyer and Anderson NOES: COiJNCIL MEMBERS: None ABSENT: COLTNCIL MEMBERS: None ABSTAIN: COLTNCIL MEMBERS: None ���7���..�-5+�.-�J ROBERT C. ANDERSON, Mayor Attest: Form Approved: � � � �� / � .���.�����-� s� ��C. Connie ,Straht a�yer, City r-�— W. Leonard Winga e City Attorney i � � " _ � AMENDED BY RESOLUTION 01-180 .' � � � � • MASTER AGREEMENT • '- ADMINISTERING AGENCY - STATE AGREEMENT FOR STATE FUNDED PROJECTS District 02 Agreement No. 000068 Citv of Reddina Adminstering Aaency THIS AGREE�tENT, made effective this 30thiay of MARCH , 1999, is by and between the City of Redding, a city, county, or other public entity, hereinafter referred to as' ADMINISTERING AGENCY,' the State of California, acting by and throuQh its Department of Transportation, herinafter referred to as 'STATE.' V WITNESSETH WHEREAS, the Legislature of the State of California has enacted le�islation by which certain State funds are made available for use on local transportation facilities and ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for fundin� from the State Transportation Improvement Program (STIP) or other programs as defined in the Local Assistance Program Guidelines for use on those local transportation facilities as local administered PROJECT(s), hereinafter refened to as "PROJECT"; and WHEREAS, as provided by STATE policy, said PROJECT will not receive any federal funds; and WHEREAS, STATE is required to enter into an AGREEMENT with ADMINISTERING AGENCY to delineate those certain obligations placed upon ADMINISTERING AGENCY relative to said State funding and the prosecution of said PROJECT by ADMINISTERING AGENCY. NOW, THEREFORE, the parties agree as follows: ARTICLE I - PROJECT ADMINISTRATION 1. This AGREEMENT shall have no force or effect with respect to any programmed PROJECT unless and until a PROJECT-specific program supplement, adopting the terms of this AGREEMENT, hereinafter refened to as "PROGRAM SUPPLEMENT," has been fully eYecuted by the parties. 2. The Financial commitment of STATE funds will occur only following the execution of this AGREEMENT and the subsequest execution of each applicable PROJECT-specific PROGRAM SUPPLEMENT. 3. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of State funds encumbered to the PROJECT described in the PROGRAI�1 SUPPLEMENT, to comply with the terms of this AGREEMENT and all of the agreed-upon Special Covenants and Conditions attached to or made a part of the PROGRAM SUPPLEMENT, identifying and defining the nature of that specific PROJECT. Page 1 of 7 4/21/99 � - `, , • � 4. The PROGRaM SUPPLE�IENT shall designate the ADMI�IISTERING AGENCY responsible for impiementing the various phases of the PROJECT, the State funding program, and the matching funds to be provided by ADMINISTERNG AGENCY and/or STATE. Adoption and esecution of the PROGRAi�1 SUPPLEMENT by AD�II.NISTERNG AGENCY and STATE, incorporating the terms and conditions of this AGP1EE�iE�,'T into the PROGR��I SUPPLEMENT as though fully set forth therein, shall be sufficient to bind the ADMINISTERNG AGENCY to these terms and conditions when performin� the PROJECT. Unless other�vise expressly delegated in a resolution by the ADMI�tISTERING AGENCY'S aovernina body and concurred in by STATE, the PROGRAM SUPPLE�IENT shall be managed by the ADMNISTERING AGENCY'S governing body. �. PROJECT shall be acquired, designed, and constructed as required in the Local :4ssistance Program Guidel�nes, such other STATE procedures as are identified in the PROGRAM SUPPLEMENT, and as is specified in this AGREEMENT. 6. Unless otherwise provided in the PROGR.Av1 SUPPLEMENT, the ADMNISTERING AGENCY shall advertise, aw-ard, and administer the PROJECT construction contract or contracts. 7- The estimated cost and scope of PROJECT will be as described in the PROGRAM SUPPLENIENT and State funding participation is limited to the amounts established by STATE. A contract for an amount in eYcess of said approved estimate may be awarded and expenditures may eYceed said estimate provided ADMINISTERNG AGENCY provides the necessary additional fundina or a PROJECT cost increase in State funding is first requested by ADMNISTERI�IG AGENCY and is appro��ed by STATE in the form of an amended PROGR�M SUPPLEMENT or a STATE approved encumbrance document addina or deleting PROJECT funds. 8. Subsequent to the inclusion of the PROJECT in a plan or program approved bv STATE and the �DMNISTERING AGENCY enterina into this AGREEyIENT and the PROJECT specific PROGR��f SUPPLEMENT, the ADMNISTERI�iG �GENCY may request and receive payment for eli�ible work as follows: (a) ST�TE �vill reimburse the ST�.TE's share of eli�ible participating PR07ECT costs monthly in arrears upon ADMNISTERING AGENCY'S submittal of siQned acceptable monthly proaress pay invoices (in duplicate) for expenditures actually made bv AD�II�IISTERING AGENCY. (b) If PROJECT involves work on the STATE highway system, that PROJECT shall also be the subject of separate standard forms of STA�I'E issued encroachment permits issued to ADMNISTERNG AGENCY and any contractors and, where appropriate, an executed cooperative agreement bet�veen STATE and ADMINISTERIi�1G AGENCY to determine ho�v PROJECT is to be acquired, desi�ned, or constructed and to establish o�vnership and future maintenance obliaations. y (c) State funds will not participate in any portion of PROJECT work performed in advance of either the effective date of the executed PROGRAM SUPPLE�IENT for said PROJECT or the effective date of this AGREEMENT. 9. The total of all ADMINISTERNG AGENCY invoices (submitted monthlv or quarterly in arrears) for reimbursement of participating PROJECT costs, includina all required ADti1INISTERNG AGENCY matchinQ funds, must not exceed the actual total allow-able PROJECT costs, includinQ, but not limited to, all completed preliminary en�ineerin� ��-ork, riaht of way acquisition, desian and construction included within the PROJECT description contained in the PROGRAi�i SUPPLEMENT. Page 2 of 7 4/21/99 ' , 10. Invoices shall b•bmitted on ADMINISTERING A�CY letterhead and shal 1 - reference this AGREEVIE�IT number, PROJECT number, and progress billing number for the PROJECT, and shall be formatted and costs reported in accordance w�ith the current version of Chapter �, "AccountinQ/Invoices," of the Local Assistance Procedures �Llanual published by STATE. 1 l. STATE programmed amounts may be increased to cover PROJECT cost increases only if such funds are available, STATE concurs with that proposed increase, and STATE e�cecutes an amendina PROGRA�1 SUPPLE�IENT or a STATE approved encumbrance document encumbering those funds. 12. When additional State funds are not available, the ADtifNISTERI�IG AGENCY a�rees that the payment of State funds will be limited to the amounts approved in the PROGRAi'�1 SUPPLEv1ENT, and aarees that any increases in PROJECT costs must be defrayed w�ith ADMINISTERIivG AGENCY funds. 13. The legislature of the State of Caiifornia and the Governor of the State of Califomia, each �vithin their respective jurisdictions, have prescribed certain employment practices with respect to contract and other �vork financed w-ith State funds. ADMINISTERING AGENCY shall ensure that work performed under this AGREEMENT is done in conformance with the rules and regulations embodying such requirements where they are applicable. 14. AD�INISTERIi�1G AGENCY and its subcontractors shall establish and maintain an accounting system conforming to Generally Accepted AccountinQ Principles (GA:�P) to support reimbursement payment vouchers or invoices which seQregate and accumulate costs of PROJECT �vork elements and produce monthly reports which clearly identify reimbursable costs, matchin� costs, and other expenditures by ADMI�IISTERING AGENCY. 1�. After completion of all work under this AGREEMENT, and after all PROJECT costs are known, ADMNISTERNG AGENCY shall contract for a financial audit of PROJECT costs if those costs are in eYcess of$300,000. This Audit, to be accomplished at the ADi�1NISTERIivG AGENCY'S eYpense, may be done on an individual PROJECT basis, or PROJECT may be included in the ADMTiVISTERING AGENCY'S annual Single Audit. If an individual audit of PROJECT is done, the auditor must prepare a Final Audit Report: If ADi�1IVISTERING AGENCY chooses the Sinale Audit option, an audit report is required for the State fundinQ share. This report should be prepared in accordance with the Quidelines set forth in OMB Circular A-133. Compliance testing performed for this audit should determine whether the ADMI�IISTERI�IG AGENCY has a system that is adequate to accumulate and seQregate reasonable, allowable and allocable costs to assure that: (a) Reimbursement claims submitted to STATE for the PROJECT are supported by payment vouchers and canceled checks. (b) Charges for the various cateQories of eligible PROJECT costs incuned by the AD�fINISTERING AGENCY y are fully supported and recorded in the ADMINISTERNG AGENCY'S accountinQ records in accordance �vith �enerally accepted accountinQ principles. y (c) The ADMINISTERING AGENCY complied with CFR 49 Part 18, Uniform Administrative Requirements for State and Local Governments and OMB A-87, Cost Principles for State and Local Govemments. Any instances of noncompliance or costs determined ineliQible in accordance with these reaulations but ctaimed for reimbursement should be identified and set forth in the auditor's report. 16. ADMI�IISTERI�tG AGENCY and all subcontractors shall comply with the Uniform Administrative Requirements for State and Local Govemments set forth in the Code of Federal ReQulations, Title �9, Part 18. In addition, the ADMINISTERING AGENCY agrees to comply with the cost principles and procedures set forth in Office of�Ianagement and Budget Circular Page 3 of 7 4/21/99 � A-87. The ADMNISTERIT�IG AGENCY a�rees that a reference to either Office v � of i fanagement and Budget Circular A-87 or the Code of Federal Regulations, Title 49, Chapter 1, Part 31, �vhichever is applicable and the code of Federal Regulations, Title 49, Part 18, will be included in any subcontracts entered into as a result of this AGREE�IENT. 17. The "State Report of Expenditures" must be completed by ADti1I?�1ISTERING AGEN�Y within one hundred eighty (180) days of PROJECT completion in the format described for State funded projects in Chapter 17, "Project Completion" of the Local Assistance Procedures Manual. The Final Invoice must be submitted with the "State Report of Expenditures. The Audit must be completed by the December 30th following the fiscal year of PROJECT completion. PROJECT completion is defined as �vhen all work identified in the approved PROJECT Application and PROGR4itit SUPPLEMENT has been completed and final costs are known. The report documents (State Report of Expenditures and Final Audit Report) will be sent to the appropriate STATE office. Failure to comply with these reportin� requirements may result in the �L-ithholding of future allocations for other projects. 18. STATE reserves the ri�ht to conduct technical and financial audits if it is determined to be necessarv. After any financial audit, AD�fINISTERIN'G AGENCY shall promptly refund any excess State funds erroneously reimbursed to AD�INISTERNG AGENCY. 19. Should ADMIi�tISTERING AGENCY fail to refund all moneys due STATE as provided hereunder or should ADMINISTERING AGENCY breach this AGREE�IENT by failing to complete PROJECT, then, w�ithin thirty (30) days of demand, or within such other period as may be agreed to in ��Z-itin� between the parties hereto, STATE, acting through the State Controller, the State Treasurer, the California Transportation Coinmission (CTC), or any other public aQencv, may �vithhold or demand a transfer of an amount equal to the PROJECT amount paid by STATE from future apportionments or any other funds due AD�fINISTERIiVG AGENCY from the HiQhw�av Users TaY Fund or any other funds and/or may �vithhold approval of future ADMI�IISTERNG AGENCY projects. - 20. When PROJECT is not on the STATE hiahw-ay system but includes �vork to be performed by a railroad, the contract for such w�ork shall be prepared and administered by AD:�IINISTERING AGENCY or by STATE, as the parties may hereafter aQree. In either event, AD�II�IISTERNG AGENCY shall enter into an AGREEMENT w�ith the railroad providing for future maintenance of protective devices or other facilities installed or constructed under that contract. ARTICLE II - ENGINEERNG l. "Project Development Costs" includes all preliminary work up to contract award for construction and directly related to the PROJECT, including, but not limited to, environmental studies, preliminary surveys and reports, laboratory work, soil investigation, preparation of plans, specifications and estimates, advertising for bids, awardinQ contract, as �vell as Project Deve(opment Contract Administration. 2. "Construction Engineering" eliaible costs include actual inspection and supervision of construction �,vork, construction stakinQ, laboratory and field testina, preparation and processing of field reports, and records, estimates, final reports, and allo�vable expenses of employees/consultants enQaged in such activities. �. Unless the parties shall other�vise agree in wYiting, ADMIi�iISTERNG �GENCY'S employees or its subcontractor enQineerinQ consultant shall be responsible for all PROJECT en�ineerinQ work. When construction engineerin� is performed by STATE. charQes by STAT'E invoiced to ADMINISTERING AGENCY shall include an assessment on direct labor costs in accordance w�ith Section 87».1 of the State �dministrative ��tanual. The portion of such STATE charQes not contractually absorbed by STATE shall be paid from PROJECT or other funds of ADv1NISTERI�IG AGENCY. Page 4 of 7 4/21/99 � .� • i 4. No reimbursable or matching costs incurred by ADNIINISTERING AGENCY in the period prior to the effective date of this AGREEyiENT or a later date specified in a PROGRANI SUPPLE�tENT are allowable bv STATE. A.TZTICLE III - RIGHT-OF-WAY 1. All related rights-of-wav as are necessary for the construction of PROJECT shall be acquired by ADNII�IISTERING AGENCY, and no contract for construction of PROJECT or any portion thereof shall be advertised until those necessary ri�hts-of-way have been secured. 2. The furnishing of rights-of-way as provided for herein includes, and is limited to, the followinQ, unless the PROGRAI�1 SUPPLEMENT provides otherw�ise: (a) expenditures to purchase all real property required for PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT �vith the fair market value of any excess property retained and not disposed of by AD�INISTERING AGENCY (b) the payment of damages to real property not actually taken but injuriously affected by the proposed improvement (c) the cost of relocatina owners and occupants pursuant to Government Code Sections 7260-7?77 y (d) the cost of demolition and sales of all improvements on the riaht of w-ay (e) the cost of all unavoidable utility relocation, protection or removal (fl the cost of all necessary hazardous material and hazardous waste clean up for which ADMNISTERNG AGENCY is not responsible and the actual aenerator cannot be identified or recoverv made y 3. Should ADMIi�1ISTERIN'G AGENCY, in acquiring right-of-way for PROJECT, displace an individual, family, business, farm operation or nonprofit or�anization, the ADMI�IISTERING AGENCY shall provide relocation payments and services as required by California Government Code, Sections 7260-7277. 4. State funds will not participate in anv PROJECT costs arising out of delays to construction or demolition contractor's orderly prosecution of the work because utilities have not been timely removed or relocated or due to the unavailability of rights-of-way. 5. If any protection, relocation or removal of utilities is required within STATE'S ri?ht-of- way, such work shall be performed in accordance with STATE policy and procedure. ADMINISTERING AGENCY shall require any utility company performing relocation work in the STATE'S ri�ht-of-�vay to obtain a STATE Encroachment Permit prior to the perfocmance of said relocation w-ork. Any relocated utilities shall be correctly located and identified on the PROJECT as-built plans. ARTICLE IV - MISCELLANEOUS PROVISIONS l. The cost of security, protection, or maintenance performed by ADNII�IISTERING AGENCY or contractor forces during any temporary suspension of the w�ork or at any other time may not be charged to the PROJECT. Page � of 7 4/21/99 - 2. Neither STATE no�y officer or employee thereof shall�responsible for any damage or liability occumng by reason of any-thing done or omitted to be done by AD�LINISTERING AGENCY under or in connection with any work, authority, or jurisdiction delegated to ADMINISTERNG AGENCY under this AGREE�TENT. It is also understood and agreed that, pursuant to Government Code Section 89�.4, ADMIivISTERNG AGENCY shall fully defend, indemnify and hold STATE, its officers and employees harmless from any liability imposed for injury (as defined be Government Code Section 810.8 j occurrina bv reason of any�thing done or omitted to be done by ADVINISTERNG AGENCY under or in connection with any work, authority, or jurisdiction dele�ated to ADi�fI�tISTERNG AGENCY under this AGREEVLENT. 3. Neither ADMNISTERI�IG AGENCY nor any officer or employee thereof, shall be responsible for any damage or liability occurrina by reasons of anything done or omitted to be done bv STATE under or in connection with any w-ork, authority, or jurisdiction delegated to STATE under this AGREEMENT. It is also understood and aQreed that pursuant to Government Code Section 89�.=�, STATE shall fuily defend, indemnify and hold AD�INISTERING AGE�,�CY harmless from any liability imposed for injury� (as defined be Government Code Section 810.8) occurring bv reason of anvthin� done or omitted to be done by STATE under or in connection w-ith any w�ork, authority, or jurisdiction dele�ated to S�I'ATE under this AGREEi�fENT. 4. Auditors of STATE shall be given access to books and records of ADMIi�1ISTERING AGENCY and its contractors and subcontractors for the purpose of verifying PROJECT costs and share to be paid. ADMIi�ISTERNG AGENCY shall include clauses in its contracts for PROJECT obliQating contractors and subcontractors to conform and cooperate in any audit of their PROJECT costs. �. �D�fNISTERNG AGENCY will maintain and operate the PROJECT property acquired, developed, rehabilitated, or restored for its intended public use until such time as the parties miQht amend this AGREEMENT to otherw-ise provide. With the approval of STATE, �DMI�tISTERI�tG AGENCY or its successors in interest in the property may transfer this obliaation and responsibility to maintain and operate the property to another public entity. 6. Upon ADMNISTERING AGENCY acceptance of the completed PROJECT construction contract or upon contractor being relieved of the responsibility for maintaining and protecting a portion of the w�ork, the ADMINISTERNG AGENCY having jurisdiction over the PROJECT shall maintain, repair and restore any damaQed portions of the completed work in a manner satisfactory to the authorized representatives of STATE. I£ w-ithin ninety (90) davs after receipt of notice from STATE that a PROJECT, or any portion thereof, under ADVIINISTERNG AGENCY'S jurisdiction is not beinQ properly maintained, repaired or restored and ADVINISTERNG AGENCY has not satisfactorily remedied the conditions complained of, the approval of future projects of ADN1I�iISTERPv'G AGENCY will be w-ithheld until the PROJECT shall have been put in a condition satisfactory to STATE. The provisions of this section shall not apply to a PROJECT which has been vacated, as preapproved by STATE, throuah due process of law. 7. The ADi�INISTERI�IG AGENCY obli�ation to maintain, referred to in paraQraph 6 above, includes not onlv the physical condition of the PROJECT but its continued operation as w�ell. PROJECT shall be maintained by an adequate and �vell-trained staff of enQineers andlor such other professionals and technicians as the PROJECT requires. Said maintenance staff may be employees of �DMI�IISTERI�IG AGENCY, another unit of aovernment, or a contractor under an aareement with ADVtNISTERING AGENCY. All maintenance �vill be performed at reaular intervals or as required for efficient operation of the complete PROJECT improvements. 8. Without the written consent of STATE, this AGREEMENT is not assiQnable by ADVIINISTERING AGENCY, either in whole or in part. y 9. No alteration or variation of the terms of this AGREE�IENT or the PROGR.AN1 SUPPLEMENT shall be valid unless made in �vriting and si�ned by the parties hereto, and no Pa�e 6 of 7 4/21/99 � ' r • . . �• ' oral understanding or agreement not incorporated herein shall be bindin� on any of the parties hereto. 10. 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 the AGREEMENT in any manner. 11. ADMNISTERING 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. ARTICLE V - CONDITION OF ACCEPTANCE AD�INISTERING AGENCY shall conform to all State statutes, regulations,and the Local Assistance Program Guidelines and Local Assistance Procedures ��Ianual includin� all - subsequent approved revisions thereto. hereafter collectively referred to as PROCEDURES, applicable to PROJECT unless otherwise designated in the approved PROGRAM SUPPLEMENT. This AGREEMENT and any PROGRAM SUPPLEMENT(s) executed under this AGREEMENT shall terminate upon sixty (60) days' prior written notice by STATE. IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officers. STATE OF CALIFORNIA City of Redding Department of Transportation By gy Chief, Office of Local Programs (Authorized Representative) Project Implementation Date Date F � �f�r G'. ?U �/ �G2`�.an�� W. LEONARD WI aT` Cit;� .'.',�rrev Page 7 of 7 4/21/99 ., ' ,t.. �' . � � , PROGI2AM SUPPLEMENT NO. 003 Date:�ay 03, 1999 to Location:OZ-SHA-O-RDG ADMINISTERING AGENCY-STATE AGREEMENT Project Number:RPL-5068(014) FOR STATE FUNDED PROJECTS NO. 000068 E.A. Number:02-1r14200 Locode:�068 This PROGRAM SUPPLEMENT, effective 03/30/1999, is hereby incorporated into the Administering Agency - State Agreement No. 000068 for State Funded Projects entered into between the ADNiINISTERING AGENCY and the STATE on / / and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is adopted in accordance with Artic(e I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached). The ADMINISTERING AGENCY further s[ipulates [hat as a condition to payment of funds encumbered to this project, it accepts and will comply with the Special Covenants and Conditions set forth on the following pages. PROJECT LOCATION: on various local streets within the city - PPNO# 2075 - SB45 TYPE OF woFtx: Pavement Rehab Estimated Cost State Funds Matching Funds STATE $4,002,000.00 LOCAL OTHER $4,002,000.00 $0.00 $0.00 $0.00 CITY OF REDDING STATE OF CALIFORNIA Department of Transportation By gy Chief, Office of Local Programs Date Project Implementation Date Title Z hereby certify upon my personal knowledge that budgeted £unds are available for this encumbrance: Accounting Office ����G> � / Date S•3 • � � $4,002,000.00 Chapter Statutes Item Year Program BC Category Fund Source AMOUNT 324 1998 2660-101-042 98-99 0.30. . 0 N 262042 042-T 4,002,000.00 Program Supple�ent 00-0068-003- SERIAL Page 1 of 3 ;02=�HA,-O-RDG � � OS/03/1999 .; + . RPL-�068(014) SPECIAL COVENANTS OR REMARKS 1 . The Local Agency will reimburse the State for their share of costs for work requested to be performed by the State. 2 . This PROJECT is programmed to receive funding from the 1998 State Transportation Improvement Program (STIP) , as amended. Funding may be provided under one or more components . A component (s) specific fund allocation is required, in addition to other requirements , before reimbursable work can occur for the component (s) identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per component (s) . This PROGRAM SUPPLEMENT has been prepared to allow reimbursement of eligible PROJECT expenditures for the component (s) allocated. The start of reimbursable expenditures is restricted to the later of either 1) the effective date of the Master Agreement, 2) the effective date of the PROGRAM SUPPLEMENT, or 3) the effective date of the component specific allocation. 3 . STATE and ADMINISTERING AGENCY agree that additional funds made available by future allocations will be encumbered on this PROJECT by use of a STATE approved Allocation Letter and Finance Letter. ADMINISTERING AGENCY agrees that STATE funds available for reimbursement will be limited to the amount allocated by the California Transportation Commission (CTC) and/or the STATE . 4 . This PROJECT is subject to the timely use of funds provisions enacted by Senate Bill 45 (SB 45) , approved in 1997 , and subsequent CTC guidelines and State procedures approved by the CTC and STATE , as outlined below: Funds allocated for the environmental & permits, plan specifications & estimate, and right-of-way components are available for expenditure until the end of the second fiscal year following the year in which the funds were allocated. Funds allocated for the construction component are subject to an award deadline and contract completion deadline. ADMINISTERING AGENCY agrees to award the contract within 12 months of the construction fund allocation and complete the construction or vehicle purchase contract within 36 months of award. Program Supplement00-0068-003- SERIAL Page 2 of 3 ; C2-�HA-O-RDG � � 0�/03/1999 +� .�,. RPL-�068(014) SPECIAL COVENANTS OR REMARKS 5 . Upon ADMINISTERING AGENCY request, the CTC and/or STATE may approve supplementary allocations , time extensions , and fund transfers between components . An approved time extension will revise the timely use of funds criteria, outlined above, for the component (s) and allocation (s) requested. Approved supplementary allocations , time extensions, and fund transfers between components , made after the execution of this PROGRAM SUPPLEI�NT will be documented and considered subject to the terms and conditions thereof. Documentation for approved supplementary allocations, time extensions , and fund transfers between components , will be a STATE approved Allocation Letter, Fund Transfer Letter, Time Extension Letter, and Finance Letter, as appropriate. 6. This PROJECT will be administered in accordance with the CTC STIP guidelines, as adopted or amended, and the STATE Procedures for Administering Local Grant Projects in the State Transportation Improvement Program (STIP) , the Local Assistance Program Guidelines, and the Local Assistance Procedures Manual . The submittal of invoices for project costs shall be in accordance with the above referenced publications and the following. 7 . The ADMINISTERING AGENCY shall invoice STATE for environmental & permits , plans specifications & estimate, and right-of-way costs no later than 180 days after the end of last eligible fiscal year of expenditure. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion to make the final payment to the contractor and prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and payment. 8 . All funding obligations of STATE under the conditions of this PROGRAM SUPPLEMENT are subject to the appropriation of resources by the Legislature and the encumbrance of funds under this PROJECT. Funding and reimbursement are available only upon the passage of the State Budget Act containing these STATE funds . Program Supplement 00-0068-003- SERIAL Page 3 of 3