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HomeMy WebLinkAbout9/7/2005 - STAFF REPORTS (29) l UN cq��FORN�P City Council Staff Report CITY COUNCIL SEPTEMBER 7, 2005 CONSENT CALENDAR Subject: APPROVAL OF PROGRAM SUPPLEMENT AGREEMENT NO. 016-M WITH THE STATE OF CALIFORNIA FOR USE OF SURFACE TRANSPORTATION PROGRAM (STP) FEDERAL FUNDS FOR THE INDIAN CANYON DRIVE WIDENING, CITY PROJECT 01-25 From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY The City of Palm Springs was initially the recipient of $2,199,000 in 2002 discretionary State Transportation Improvement Program (STIP) federal funds for the widening of Indian Canyon Drive through the Whitewater River. Upon award, staff submitted a request to the California Transportation Commission (CTC) in October 2002 for STIP fund allocation of the initial (environmental) phase for this project. The CTC never took action on the City's request, and ultimately, due to the state's budget shortfalls experienced since 2002, all discretionary STIP funding for public projects were taken from local agencies. In consultation with the Riverside County Transportation Commission (RCTC), local agencies were given the opportunity to switch funding from STIP to Surface Transportation Program (STP) federal funds, with the hope that STP funds would be made available sooner than STIP funds from the state.- This opportunity was realized, and upon notification from RCTC that STP funds were available, staff submitted a request for authorization to proceed with the initial phase of this project to Caltrans. RECOMMENDATION: 1) Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING PROGRAM SUPPLEMENT AGREEMENT NO. 016-M TO ADMINISTERING AGENCY-STATE AGREEMENT NO. 08-5282 WITH THE STATE OF CALIFORNIA, IN THE AMOUNT OF $398,000 ($263,000 STP FEDERAL FUNDS / $135,000 REGIONAL MEASURE A FUNDS), FOR THE INDIAN CANYON DRIVE WIDENING, STATE PROJECT STPLN-5282(023), CITY PROJECT 01-25, AND AUTHORIZING THE Item No. 2 , Q � . i I City Council Staff Report I September 7, 2005- Page 2 Program Supplement Agreement 016-M I CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY OF PALM SPRINGS;" and I 2) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The City of Palm Springs submitted a grant application in 2001 to the Riverside County Transportation Commission (RCTC) for discretionary State Transportation Improvement Program (STIP) federal funds for the widening of Indian Canyon Drive to 4 lanes through the Whitewater River. The grant process was competitive throughout Riverside County, and the City's application was approved, earmarking $2,199,000 in STIP federal funds to this project. The local match of $1,125,000 for this project was allocated from Regional Measure A funding, made available through a Reimbursement Agreement between the City and the Coachella Valley Association of Governments (CVAG). In October 2002, staff submitted to the California Transportation Commission (CTC) a request for funding allocation of STIP funds for the initial phase of this project (preliminary planning and environmental approvals). The CTC never took action on the City's request, and by November 2002, the state of California stripped all discretionary STIP funds from local agencies in an effort to balance the state's budget. Since that time, all public projects that had been funded with STIP funds have languished, or have been funded with other sources of revenue. RCTC offered a compromise, and asked local agencies to consider switching funding of projects that had discretionary STIP funds with Surface Transportation Program (STP) federal funds, with the hope that STP funds would be made available sooner than STIP funds from the state. That hope has been realized, and RCTC advised City staff in March 2005 that there were unallocated STP funds available for public projects in Riverside County. Accordingly, staff submitted a request for authorization to proceed with the preliminary engineering phase for this project to Caltrans on April 14, 2005. On July 11, 2005, staff was notified that the request for authorization had been approved by the Federal Highway Administration (FHWA). Upon receipt of this authorization, staff can proceed with the process to solicit proposals from consultants for environmental and civil engineering design services, to begin the process of widening Indian Canyon Drive from 2 to 4 lanes through the Whitewater River. The City operates under a "Master Agreement" with the state of California, identified as the "Administering Agency — State Agreement No. 08-5282" for use of federal funds on City projects. The Master Agreement is amended by each successive use of federal funds on a project, and upon the first "authorization" or obligation of the use of federal funds on a project, the City is provided with a "Program Supplement Agreement", or amendment, to the Master Agreement. City Council Staff Report September 7, 2005 - Page 3 Program Supplement Agreement 016-M In light of the City's authorization to proceed with preliminary engineering for this project, using STP federal funds, Caltrans has submitted to the City for approval Program Supplement Agreement No. 016-M, which will facilitate the City's use of federal funds for this project. FISCAL IMPACT: This project, which is estimated to cost $3,324,000, is funded in part (66.08%) by STP federal funds, with the remaining portion (33.92%) funded by Regional Measure A funds. The initial (preliminary engineering) phase has been estimated at $398,000 of which the Program Supplement Agreement obligates $263,000 of STP federal funds. The remaining local match of $135,000 is made available by Regional Measure A funds pursuant to a previously approved Reimbursement Agreement between the City and CVAG. No City funds will be required of this project at this time. Submitted: dQQ, David J. Barakian Director of Public Works/City Engineer Approved: ���ter,: ��..-,^e=„�°._-�;:✓,� David H. Ready City Manager ATTACHMENTS: 1. Caltrans Authorization to Proceed 2. Program Supplement Agreement 3. Resolution RESOLUTION NO, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING PROGRAM SUPPLEMENT AGREEMENT NO. 016-M TO ADMINISTERING AGENCY-STATE AGREEMENT NO. 08- 5282 WITH THE STATE OF CALIFORNIA, IN THE AMOUNT OF $398,000 ($263,000 STP FEDERAL FUNDS / $135,000 REGIONAL MEASURE A FUNDS), FOR THE INDIAN CANYON DRIVE WIDENING, STATE PROJECT STPLN-5282(023), CITY PROJECT 01-25, AND AUTHORIZATING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY OF PALM SPRINGS WHEREAS, the City of Palm Springs applied for 2002 discretionary State Transportation Improvement Program (STIP) federal funds through a call for projects initiated by the Riverside County Transportation Commission (RCTC) for the widening of Indian Canyon Drive through the Whitewater River; and WHEREAS, RCTC reviewed and approved the City's application for STIP funding in the amount of$2,199,000; and WHEREAS, the state of California budget crisis that occurred in the 2002/2003 and subsequent fiscal years required the state's use of discretionary STIP funds awarded to local projects in balancing the state's budget; and WHEREAS, RCTC allowed local agencies the opportunity to use Surface Transportation Program (STP) federal funds, when made available, for projects that had previously been awarded STIP funding; and WHEREAS, the City of Palm Springs requested that STP funding be used in place of STIP funding for the Indian Canyon Drive; and WHEREAS, the 2004 Regional Transportation Improvement Plan (RTIP) was amended to reflect the use of STP funds; and WHEREAS, the City of Palm Springs has submitted to the California Department of Transportation a request for authorization to proceed with preliminary engineering, requiring obligation of$263,000 of STP funds; and WHEREAS, the California Department of Transportation has prepared Program Supplement Agreement No. 016-M, an amendment to administering Agency-State Agreement No. 08-5282 with the state of California, obligating $263,000 of STP funds for the widening of Indian Canyon Drive. Resolution No. Page 2 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Program Supplement Agreement No. 016-M, an amendment to administering Agency-State Agreement No. 08-5282 with the state of California, obligating $263,000 of STP funds for the widening of Indian Canyon Drive, is approved. SECTION 2. The City Manager is authorized to execute and administer the Program Supplement Agreement as may be necessary. ADOPTED THIS 7th day of September, 2005. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) OOUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on September 7, 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California ATTACHMENT CALTRANS AUTHORIZATION TO PROCEED i ! ! STATE OF CALIFORNIA—BUSINESS,TRANSPORTATION AND HOUSING AGENCY ARNOLD SCHAWARZEGGER,Governor 1 ! DEPARTMENT OF TRANSPORTATION i District 8 Local Assistance, MS-1030 t` , 464 W. Fourth St., 6th Floor San Bernardino, CA 92401 - 1400 July 19, 2005 Ix 08-Riv-0-PSp STPL-5282 (023) City of Palm Springs Indian Canyon Drive Widening � �q�. From Trarnview Dr To UPRR. Bridge 4fifigt rytE`o} �5 Mr. Marcus L. Fuller Senior Civil Engineer City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92263 Dear Mr. Fuller: We have reviewed and submitted your obligation package to Headquarters and FHWA for the above referenced project and you are now authorized for STPL funds on the Preliminary Engineering Phase of the project. Prospective bidders should be reminded of the DBE requirements contained in the above- mentioned document and references to Chapter 9 in the Local Procedures Manual. For new DBE requirements and/or any updates, please contact Ms. Debbie Morales at (909) 383-4941. Please notify us in writing of the date of bid opening. Two copies of your Plans and Specification (as advertised) will need to be forwarded to this office upon advertisement. Prior to the pre-construction meeting please consult Mr. Louis Flores, Construction Division, Labor Compliance Office. Mr. Flores will meet with you and the contractor regarding the contractor's responsibilities for posting of notices, documentation and labor compliance issues that must be discussed prior to execution of the contract. He can be reached at (909) 383-4629. The City shall follow its normal procedure in awarding the contract to the lowest responsible bidder and assuring us that all Federal Requirements have been met, including au approved Quality Assurance Program. If you have any questions, please contact Mr. Nader Naguib at (909) 383-6262. Sincerely, _YI-ondy-W. Li -- Chief, Local Assistance cc: RCTC-Shirley Medina cc: Louis Flores, Caltrans Labor Compliance Attaclmlents FNh.:76 (VERSION E-76) AUTHORIZATION/AGREEMENT SUMMARY FEDERAL AID PROGRAM CALIFORNIA DEPARTMENT OF TRANSPORTATION OLP LOCATOR 08-RTV-0-PSP PREFIX STPLN PROJECT LOCATION PREY. AUTH/AGREE DATE PROJECT NO 5282 (023) INDIAN CANYON DRIVE: TRAMVIEW ROAD TO UPRR OR --------------------- SEQ NO 1 PE 07/15/05 DIST-EA 08-OG0074L TYPE OF WORK R/W AGENCY PALM SPRINGS ROADWAY WIDENING FROM 2 TO 4 CON ROUTE FED. RR NOS SPR TIP DATA: PUC CODE(S) MCS MPO/YEAR SCAG EXEMPT FROM FHWA REVIEW OTH DATE 04/06 ENV STATUS APPR CODES H240 STIP REF: R/W STATUS LINE NOS l_O BEGIN MP .000 IMPRV TYPE 15 URBANIZED PALM SPRINGS END MP .000 FUNC. SYS P URB/RURAL URBAN AREA INV RTE BRIDGE NOS PHASE PROJECT COST FEDERAL COST AC COST ------PREY. OBLIGATION - ------------------ ----- ----------- ---------.00 PE THIS REQUEST 398, 000.00 263,000.00 .00 SUBTOTAL 398,000.00 263,000. 00 .00 -------------------------------------------------------------------------------- TOTAL 398,000.00 263, 000.00 .00 PPNO - 08-RIV011203 STATE REMARKS ------------- THIS IS FOR PRELIMINARY_ ENGINEERING FUNDS. STEVEN NGUYEN 06/23/05 ^1HIS IS A REDDEST FOR PRELIMINARY ENGINEERING FUNDING FOR THE WIDENTNG OF INDIAN CANYON DRIVE FROM TRAMVIEW ROAD TO THE UNION PACIFIC RAILROAD OVERHEAD NEAR GARNET TO REPLACE FUNDING PREVIOUSLY PROGRAMMED IN THE 2002 STIP, BUT COULDN'T BE ALLOCATED BY THE CTC FOR LACK OF FUNDS. THIS PROJECT ABUTS THE UPRR RAILROAD OVERHEAD (BR. NO. 56C-0025) REPLACEMENT PROJECT AUTHORIZED UNDER BRLO-5282(017) , EA 08-924634L. REIMBURSE WITH H240 FUNDS AT APPROXIMATELY 66.0% UP TO FEDERAL AMOUNT SHOWN FOR PRELIMINARY ENGINEERING. PL_ TOTAL COSTS PARTIC. COSTS FED. FUNDS (H240) LOCAL FUNDS PRELIM. ENGR. $ 398,000 $ 398, 000 $ 263, 000 $ 135,000 AUTHORIZATION TO PROCEED WITH PRE PREPARED BY STEVEN NGUYEN ON 06/27/05 909-3 PRELIMINARY ENGR. REVIEWED BY PATRICK LOUIE ON 07/15/05 8-453 AUTHORIZED BY P. LOUIE ON 07/15/05 ELECTRONIC SIGNATURE DOCUMENT TYPE AUTH/AGREE SIGNED BY P. LOUIE ON 07/15/05 FOR C. PROCESSED BY L WALLAC ON 07/18/05 FOR F TSl T8SNGUYE 07/19/05 12:23:14 PDT WAS THE ORIGIN DEST: T7AG1916 FILE: 220 NAME: RAMREPOR RAMIS DIST: 4939 RECS: 53 PRINT DATE: O7/19/05 12:23:15 ************************************************************************************************************************************ ATTACHMENT PROGRAM SUPPLEMENT AGREEMENT STATE OF CALIFORNIA.6USINESS,TRANSPORTATION AND HOUSING AGENCY Arnold Schwarzenegger,Governor DEPARTMENT OF TRANSPORTATION Division of Local Assistance 1120 N STREET P.O. BOX 942874, MS# 1 Sacramento, CA 94274.0001 TDD(916) 654-4014 (916)654-3151 File: 08-RIV-0-PSP Fax(9 16)653-7621 STPLN-5282(023) August 5, 2005 Indian Canyon Drive from Tramview Road to the U.P.R.R. Overhead(Br. No. 56C-0025) near Garnet Mr. David Barakian Director of Public Works City of Palm Springs P.O. Box 2743 '� e Palm Springs, CA 92263 Ia4x ' �,,Ct , /J a Attn: Mr. George F. Farago Vc/n/4V` Dear Mr. Barakian: Enclosed are two originals of the Program Supplement Agreement No. 016-M to Administering Agency-State Agreement No. 08-5282 and an approved Finance Letter for the subject project. Please retain the signed Finance Letter for your records. We have included two new special covenants that allow any funding for future phases of this project be encumbered upon approval of the "Request for Authorization" and Finance Letter. The Program Supplement Agreement need not be revised for that purpose. However, please note that federal funding will be lost if you proceed with future phase(s)of the project prior to getting the "Authorization to Proceed" with that phase. Please review the covenants and sign both copies of this Agreement and return both to this office, Office of Project Implementation - MS1 within 60 days from the date of this letter. If the signed Agreements are not received back in this office within 60 days, funds will be disencumbered and/or deobligated. Alterations should not be made to the agreement language or funding. Attach your local agency's certified authorizing resolution that clearly identifies the project and the official authorized to execute the agreement. A fully executed copy of the agreement will be returned to you upon ratification by Caltrans. No invoices for reimbursement can be processed until the agreement is fully executed. In accordance to Government Code 16304, Federal funds appropriated by the State budget are available for liquidation only for seven years and the State funds are available only for five years. The attached Finance Letter shows these deadlines as the "Reversion Date". Please ensure that your invoices are submitted at least 60 days prior to the reversion date to avoid any lapse of funds. If your agency is unable to seek reimbursement by this date you may request an extension through a Cooperative Work Agreement (CWA). A CWA is subject to the final approval of the State Department of Finance. If approved, the CWA may extend the deadline for up to one year for federal funds and up to three years for State funds. Please note that Government Code 16304 does not supersede any other more restrictive expenditure deadlines. Your prompt action is requested. If you have questions, please contact your District Local Assistance Engineer. Sincerely, DENIX ANBIAH, Chief Office of Project Implementation Division of Local Assistance Enclosure c: DLA AE Project Files (119) DI of IN id r I i DEPARTMENT OF TRANSPORTATION FINANCE LETTER Date: 08/05/2005 DIVISION OF ACCOUNTING -O Agency: OS-RIV -PSP LOCAL PROGRAM ACCOUNTING BRANCH Project No: ST RIV- 282(023) EA No: 08-AO012a Attention: City of Palm Springs 08-000074 F_ FINANCE ITEMS 'TOTAL COST OF FEDERAL PART.I FED. WORK COST REIMB% FEDERAL LOCAL FUNDS H240 Agency Preliminary Engineering - 1, �- N 9 9 $398,00 $398,000� 66.08 $263,OOq� $135,OOd Totals: i $398,00� $398,00d $263,001 $135,000'I Fed. Panic: 00.00% This Finance Letter w created based on specific financial information provided by the responsible local agency.The following encumbrance histo i prepared by Local Assistance Accounting Office and is provided here for local agency's information and action. Signature: rv' �Z�pyy For questions regarding finance letter,contact: (' Title: er HQ Local Assist�ce Area Engineer Printed Name: Patrick Louie l Telephone No: (916)653-7349 Remarks: Reimbursement ratio=66.0% ACCOUNTING INFORMATION- STPLN-5282(023) Fund Program Fed/State Encumbrance Amount Approp Year Expenditure Amount Reversion Date 05DH LA. STP-MINALLOC-DB F $263,000 2004 $0 06/30/11 Page 1 of 1 - .L. PROGRAM SUPPLEMENT NO. M016 Date-August 03,2005 to Location:08-RIV-0-PSP ADMINISTERING AGENCY-STATE AGREEMENT Project Number:STPLN-5282(023) FOR FEDERAL-AID PROJECTS NO. 08-5282 E.A. Number:08-060074 This Program Supplement hereby incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 03/19/98 and is subject to all the terms and conditions thereof.This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. ,approved by the Administering Agency on (See copy attached). The Administering Agency further stipulates that as a condition to the payment by State of any funds derived from sources noted below obligated to this project,the Administering Agency accepts and will comply with the Special covenants or Remarks setfortb on the following pages. PROJECT LOCATION: Indian Canyon Drive from Tramview Road to the U.P.R.R.Overhead(Br.No.56C-0025)near Garnet TYPE OF WORK:Roadway widening from 2 to 4 lanes LENGTH: 2(MILES) Estimated Cost Federal Funds Matching Funds H240 $263,000.00 LOCAL OTHER $398,000.00 $135,000.00 $0.00 $0.00 CITY OF PALM SPRINGS STATE OF CALIFORNIA Department of Transportation By By - Chief, Office of Project Implementation Date Attest Date Title I hereby certify upon my personal knowledge that budgeted funds are available �� for this encumbrance: Accounting Officer t� �1� Date O�' $263,000.00 Chapter I statutes I Item Year I Program I Be I category I Fund Source I AMOUNT 208 2004 2660-102-890 2004-2005 20.30.010.810 C 262040 892-F 263,000.00 Program Supplement 08-5282-MO16- ISTBA Page 1 of 4 STPLN-5282(023) SPECIAL COVENANTS OR REMARKS 1. All project repair, replacement and maintenance involving the physical condition and the operation of project improvements referred to in Article III MAINTENANCE, of the aforementioned Master Agreement will be the responsibility of the ADMINISTERING AGENCY and shall be performed at regular intervals and as required for efficient operation of the completed project improvements. 2 . The ADMINISTERING AGENCY will reimburse the STATE for the ADMINISTERING AGENCY share of costs for work requested to be performed by the STATE. 3. The ADMINISTERING AGENCY agrees that payment of Federal funds will be limited to the amounts approved by the Federal Highway Administration (FHWA) in the Federal-Aid Project Authorization/Agreement or Amendment/Modification (E-76) and accepts any resultant increases in ADMINISTERING AGENCY funds as shown on the Finance Letter, any modification thereof as approved by the Division of Local Assistance, Office of Project Implementation. 4. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the most current published Local Assistance Procedures Manual. 5. The ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act and OMB A-133 if it receives a total of $500,000 or more in federal funds in a single fiscal year. The federal funds received under this project are a part of the Catalogue of Federal Domestic Assistance (CFDA) 20.205, Highway Planning & Research. OMB A-133 superceded OMB A-128 in 1996. A reference to OMB A-128 in a Master Agreement (if any) is superceded by this covenant to conform to OMB A-133. 6. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after the project contract award. A copy of the award package shall also be included with the submittal of the ADMINISTERING AGENCY' s first invoice for the construction contract to: Department of Transportation Division of Accounting Local Programs Accounting Branch, MS#33 Program Supplement08-5282-M016- ISTEA Page 2 of 4 STPLN-5282(023) SPECIAL COVENANTS OR REMARKS P. 0. Box 942874 Sacramento, CA 94274-0001 Failure to do so will cause a delay in the State processing invoices for the construction phase. Please refer to Section 1.5.7 "Award Package" of the Local Assistance Procedures Manual and LPP 01-06. 7 . STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available for new phase(s) of work by future Federal obligations will be encumbered on this PROJECT by use of aL STATE approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration. 8. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s) . 9. Any State and Federal funds that may have been encumbered for this project are only available for disbursement for a period of five (5) years and seven (7) years, respectively, from the start of the fiscal year(s) that those funds were appropriated within the State Budget Act. All project funds not liquidated within these periods will revert unless an executed Cooperative work Agreement extending these dates is requested and is approved by the California Department of Finance per Government Code Section 16304. The exact date of each fund reversion will be reflected in the approved finance letter(s) issued for this project. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement that is not submitted to the Department on or before 60 days after that applicable fixed fund reversion date will not be paid from that fiscal year's encumbered funds because all of these unexpended funds will be irrevocably reverted by the Department' s Division of Accounting Program Supplement OS-5282-M016- ISTEA Page 3 of 4 STPLN-5282(023) SPECIAL COVENANTS OR REMARKS on that date. Pursuant to a directive from the State Controller's Office and the Department of Finance, the last date to submit invoices for reimbursed work in each fiscal year is May 15th in order for payment to be made out of those then current appropriations. Project work performed and invoiced after May 15th will be reimbursed only out of available funding that might be encumbered in the subsequent fiscal year, and then only when those funds are actually allocated and encumbered as authorized by the California Transportation Commission and the Department's Accounting Office. 10. "ADMINISTERING AGENCY certifies that neither the ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this agreement. ADMINISTERING AGENCY agrees that it will notify the STATE immediately, in the event a suspension or a debarment happened after the execution of this agreement. " II. The Administering Agency shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT -assisted contract or in the administration of its DBE Program or the requirements of 49 CFR Part 26. The Administering Agency shall take all necessary and reasonable steps under 49 CFE Part 26 to ensure nondiscrimination in the award and administration of DOT -assisted contracts. The Administering Agency' s DBE Program, as required by 49 CFE Part 26 and as approved by Caltrans, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recepient of its failure to carry out its approved program, Caltrans may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 es seq. ) . Program Supplement08-5262-M016- ISTEA Page 4 of 4