Meeting_Body
PLANNING & PROGRAMMING COMMITTEE
APRIL 14, 2021
Subject
SUBJECT: CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL APPROPRIATIONS ACT HIGHWAY INFRASTRUCTURE PROGRAMS FUNDS
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATIONS
Title
CONSIDER:
1. APPROVING the programming of $38.2 million in Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Highway Infrastructure Programs (HIP) funds made available through the Regional Transportation Improvement Program (RTIP) of the State Transportation Improvement Program (STIP) to the East San Fernando Valley (ESFV) Transit Corridor Project as a revenue-neutral exchange of Proposition A 35% funds to be directly used on the Airport Metro Connector (AMC) 96th Street Station;
2. APPROVING the programming of $47.6 million in CRRSAA HIP funds made available through the Caltrans Local Assistance Surface Transportation Block Grant Program (STBGP) to all 88 cities in and including the County of Los Angeles by percentage of the total county population as presented in Attachment A; and
3. APPROVING the ability for small cities to exchange CRRSAA STBGP funds with local funds under Metro’s existing federal Surface Transportation Program - Local Exchange Program.
Issue
ISSUE
Enacted on December 27, 2020, the federal CRRSAA appropriates $10 billion for the Federal Highway Administration (FHWA) to apportion to state departments of transportation. On January 15, 2021, the FHWA made the apportionments available. California’s apportionment is $911.8 million and is available until September 30, 2024. On March 24, 2021, the California Transportation Commission (CTC) adopted Resolution G-21-39, which specifies the use of California’s $911.8 million apportionment for “highway infrastructure programs”. Under the STIP Regional Transportation Improvement Program shares, Los Angeles County is targeted to receive $38.2 million. Under the STBGP shares, Los Angeles County is targeted to receive $47.5 million. These funds must be programmed by Metro through the STIP and the Federal Transportation Improvement Program (FTIP) to enable Metro and local agencies incur expenditures for eligible transportation activities.
DISCUSSION
Under the CRRSAA, the HIP funds may be used for a broad range of surface transportation purposes listed in Section 133(b) of Title 23 of the U.S. Code and are meant to “prevent, prepare for, and respond to coronavirus.” Specifically, the Act allows states to cover revenue losses, preventive and routine maintenance, operations, personnel (including salaries of employees or contractors), debt service and availability payments, as well as transfers to public tolling agencies and ferry systems that provide a public transportation benefit. The federal share of costs may be up to 100 percent. HIP funds cannot be used for bus and rail operations.
The CTC, as detailed in Resolution G-21-39, distributed California’s $911.8 million apportionment from the CRRSAA for “highway infrastructure programs” as follows:
State Programs (60 Percent): $547.1 million
• $486.3 million: State Highway Operation and Protection Program (SHOPP)
• $60.8 million: Interregional Transportation Improvement Program (ITIP)
Regional Programs (40 Percent): $364.7 million
• $182.4 million: RTIP
• $182.4 million: STBGP
The ITIP and RTIP comprise 25 percent and 75 percent, respectively, of the STIP. A total of $243.2 million in CRRSAA funds will be distributed through the STIP. Of the $243.2 million, $38.2 million is targeted for Los Angeles County through the RTIP. Of the $182.4 million of CRRSAA funds distributed by population through the STBGP, $47.5 million is targeted for Los Angeles County.
Use of Funds
The CRRSAA Highway Infrastructure Programs provides the first and only federal COVID-19 response and relief funding made available to highway infrastructure activities after nearly a year of direct and significant impacts due to the pandemic on regional and local agencies across California that are responsible for the operations and maintenance of thousands of miles of federal-aid highways. As such, Metro staff is recommending to use the $47.5 million in CRRSAA funds distributed by the CTC according to the STBGP as a way to support all of the local agencies across Los Angeles County to “prevent, prepare for, and respond to coronavirus” consistent with the intent of the federal act. Metro staff made efforts with the CTC to ensure that these funds would be administered through the Caltrans Local Assistance process specifically to ensure the most expedient and efficient way to get funding to local agencies across Los Angeles County.
Staff is also recommending using the balance of $38.2 million in HIP funds from the CTC’s distribution through the STIP/RTIP to the AMC 96th Street Station. This station will be the ninth along the Crenshaw/LAX (C/LAX) Line and will connect directly with the Los Angeles World Airports (LAWA) Automated People Mover (APM). It will become the key multi-modal gateway to the Metro system from/to Los Angeles International Airport (LAX). With direct connections between Metro rail, bus and active transportation systems to the APM and LAX, this new transit station will provide a welcoming, secure and convenient connection to the transportation network.
As identified in the concurrent April 2021 board report (Legistar 2021-0114), establishing a life-of-project (LOP) budget for the AMC Project of about $898.6 million will require additional regional sources of funding. The $38.2 million in CRRSAA STIP/RTIP funds are critical to address the additional funding need to award the construction contract for the AMC. Due to the limitation in using federal funds directly on the project, however, staff is recommending that the $38.2 million in CRRSAA STIP/RTIP funds be programmed to the ESFV Transit Corridor Project as a revenue-neutral exchange of Proposition A 35% funds to be directly used on the AMC Project.
Equity Platform
The recommendation supports the third pillar of the Equity Platform ( “Focus and Deliver”) by planning resources to strategically invest in high-quality mobility options for Los Angeles County, as well as to support all of the local agencies across Los Angeles County to “prevent, prepare for, and respond to coronavirus”.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this item will have no direct impact on the safety of Metro customers or employees.
Financial_Impact
FINANCIAL IMPACT
Approval of the staff recommendation will support the establishment of a LOP budget for the AMC project for about $898.6 million with $38.2 million of required additional regional sources of funding. It will also provide $47.5 million in CRRSAA STBGP funds to support all of the local agencies across Los Angeles County to “prevent, prepare for, and respond to coronavirus” consistent with the intent of the federal act.
Impact to Budget
The proposed action will not have an impact to the FY21 budget. AMC is a multi-year project requiring expenditure in fiscal year increments with the adoption of the Board-authorized LOP budget. It will be the responsibility of the Project Manager and Chief Program Management Officer to budget for this in future fiscal years.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The grant funding awarded will help meet all of Metro’s Vision 2028 goals, especially the first goal, which aims to deliver outstanding trip experiences for all users of the transportation system. Specifically, the AMC Project will provide a reliable, fast, and convenient connection for passengers traveling between LAX and the regional bus and rail transit system. By integrating with existing and future transit connections and airport facilities Metro hopes to increase public transit trips to and from LAX with minimal impact to airport facilities and surrounding communities and to help reduce air pollution.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may choose not to program all $38.2 million in CRRSAA STIP/RTIP funds for the ESFV Transit Corridor Project as a revenue-neutral exchange of Proposition A 35% funds to be directly used on the AMC Project. Staff does not recommend this option as the entire amount is needed to support the establishment of an LOP budget of about $898.6 million for the AMC Project with regional funds. Furthermore, the CRRSAA RTIP funds will be distributed and administered as part of the STIP. The STIP has rigorous guidelines, a 60-day delay for an allocation vote, and lapsing provisions that would make the funds cumbersome for local jurisdictions to receive and draw down.
The Board may choose to not program all $47.5 million in CRRSAA STBGP funds to the local jurisdictions of Los Angeles County. Staff does not recommend this option, as the local jurisdictions of Los Angeles County have incurred revenue shortfalls during the COVID-19 pandemic. It is in keeping with the intent of the legislation to distribute a share of the HIP funds at the local level, where agencies can provide relief within their jurisdiction.
Next_Steps
NEXT STEPS
April 23, 2021 - List of STIP/RTIP projects due to the CTC
May 12-13, 2021 - CTC staff recommends adoption of guidelines for Draft 2021 Mid-Cycle STIP and STBGP component
May 12-13, 2021 - New STIP/RTIP projects are presented to the CTC for Notice
June 23-24, 2021 - CTC adopts new STIP/RTIP projects (earliest date to allocate funds)
August 18-19, 2024 - Projects programmed with CRRSAA STIP/RTIP funds must receive an allocation, otherwise they will lapse.
Attachments
ATTACHMENTS
Attachment A - HIP Funding Distribution to Local Agencies in Los Angeles County
Prepared_by
Prepared by: Patricia Chen, Senior Director, Countywide Planning & Development, (213) 922-3041
Ashad Hamideh, Senior Director, Countywide Planning & Development, (213) 922-5539
Wil Ridder, Executive Officer, Countywide Planning & Development, (213) 922-2887
Laurie Lombardi, Senior Executive Officer, Countywide Planning & Development, (213) 418-3251
Reviewed_By
Reviewed by: James de la Loza, Chief Planning Officer, (213) 922-2920
