INACTIVE FEDERAL FUNDS / AT RISK FOR DE-OBLIGATION

Motion - On July 19, 2007 the California Department of Transportation (Caltrans) released a quarterly report detailing, by local agency, inactive Federal funds that are at risk for de-obligation and/or loss. The City of Los Angeles had 7 projects listed in the report which totals $4,114,594.83 in Federal funding that is at risk. The quarterly report is considered the first notification to local agencies that their inactive obligations require immediate action in order to secure the funding. The City of Los Angeles has until August 9th to submit invoices for eligible expenditures or until August 29th to submit a justification for projects that do not have eligible expenditures to be invoiced or do not have unneeded funds to be de-obligated. The Federal Highway Administration (FHWA) will review the expenditures and/or justifications and if either is not accepted the funds will be de-obligated and the City may be required to repay any Federal funding received to date. To prevent the de-obligation of Federal funding the Council should instruct the Department of Transportation to report to the Transportation Committee at the earliest possible date regarding the steps being taken to secure the $4,114,594.83 in Federal funding that is currently at risk of being lost to the City. THEREFORE MOVE that Council instruct the Department of Transportation to report within 15 days regarding the steps being taken to secure the $4,114,594.83 in Federal funding that is currently at risk of being lost to the City.