AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO LUNA
PUBLIC WORKS DIRECTOR
SUBJECT: FUNDING AGREEMENT AND AMENDMENT NO 1 TO THE MEMORANDUM OF UNDERSTANDING WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FOR THE WILLOW STREET CORRIDOR PROJECT
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Summary:
The Measure R Multimodal Highway Subregional Program (Measure R) is a subfund of the Los Angeles County half-cent sales tax. The Los Angeles County Metropolitan Transportation Authority (LACMTA) administers this program and provides local agencies with funding for traffic improvement projects. LACTMA awarded the City a total of $6,339,679 in Measure R funds for the Willow Street Corridor - Walnut Avenue to Cherry Avenue Congestion Relief project to fund the right-of-way and construction phases of the project. Staff recommends the City Council approve the proposed Funding Agreement with LACMTA and authorize the City Manager to amend the Memorandum of Understanding and execute necessary documents to receive, utilize, and expend Measure R funds for the project.
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 2 Community Safety: Maintain community safety by supporting public safety services and increasing emergency preparedness.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendations:
1. Authorize the City Manager, or his designee, to enter into a Funding Agreement with the Los Angeles County Metropolitan Transportation Authority and execute all necessary documents and amendments to receive and expend the project funding for the Willow Street Corridor - Walnut Avenue to Cherry Avenue Congestion Relief Project.
2. Authorize the City Manager, or his designee, to enter into Amendment No. 1 to the Memorandum of Understanding with the Los Angeles County Metropolitan Transportation Authority and execute all necessary documents and subsequent amendments to receive and expend the project funding for the Willow Street Corridor - Walnut Avenue to Cherry Avenue Congestion Relief Project.
3. Adopt a Resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING THE ADOPTED BUDGET AND AUTHORIZING BUDGET APPROPRIATIONS FOR THE FISCAL YEAR 2026-27.
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Fiscal Impact:
The City received $7,562,050 from the Los Angeles County Metropolitan Transportation Authority (LACMTA) in Measure R Multimodal Highway Operational Improvement Subfund Program to fund the Willow Street Corridor - Walnut Avenue to Cherry Avenue Congestion Relief Project. In addition to these funds, the City allocated $300,000 to support project management, plan review, and coordination by the City Traffic Engineer. Of the total project funding, LACMTA directly expended $1,222,371 for the Project Approval & Environmental (PA&ED) and the Plans, Specifications, and Estimates (PS&E) phases. Of the Measure R funding, $6,339,679 remains available for the City to use after LACMTA’s direct expenditures.
The Capital Improvement Program project budget allocated $6,250,000 of Measure R funds for the Willow Street Corridor - Walnut Avenue to Cherry Avenue Congestion Relief Project. To align the CIP budget with the $6,339,679 remaining Measure R funds, staff recommends an additional appropriation of $89,679 for the project. This adjustment will be fully funded by the LACMTA funds already awarded, with no impact on the General Fund.
Background:
In 2008, two-thirds of Los Angeles County voters approved Measure R, a half-cent sales tax dedicated to funding transportation projects and programs across Los Angeles County. The Los Angeles County Metropolitan Transportation Authority (LACMTA) administers the program and allocates funding through several subfunds, including the Measure R Multimodal Highway Operational Improvement Subfund Program (Measure R), which supports projects that improve traffic operations and roadway safety. The LACMTA Measure R Expenditure Plan includes the I-710 Congestion Relief Program, which aims to reduce congestion and improve traffic safety along the I-710 corridor and connecting regional roadways. The program set aside $590 million for I-710 South and/or Early Action Projects, allocating $160 million for non-freeway improvements.
During the call for projects, Public Works staff and the City’s Traffic Engineer identified the Willow Street corridor as a major arterial where congestion relief improvements are needed and began coordinating with LACMTA to qualify the project. Willow Street and Cherry Avenue serve as key transportation corridors in the City. Willow Street connects the I-710 and I-405 freeways, and Cherry Avenue connects Pacific Coast Highway and the I-405 freeway. These corridors carry regional traffic and serve residents, businesses, and visitors traveling through the City. Traffic impact analysis records indicate current conditions can exceed capacity during peak hours, resulting in congested traffic and drivers navigating through several signal cycles to move through the project area. The proposed improvements to enhance intersection operational efficiencies include:
• Acquisition of portions of property frontage at the northeast and southeast corners of the Cherry Avenue and Willow Street intersections to allow for turning pockets
• Add eastbound and westbound right-turn lanes and a second northbound left-turn lane at the East Willow Street and Cherry Avenue intersection.
• Install protected eastbound and westbound left-turn phases at the East Willow Street and Walnut Avenue intersection.
• Reduce medians, curb widths, and sidewalks, and realign to incorporate eastbound/westbound/northbound turn lanes.
• Replace traffic signal equipment and cabinet upgrades, improve timing operations, including signal interconnection and synchronization, at high-pedestrian activity intersections with leading pedestrian intervals.
• Improve striping and signage.
• Add stormwater, pavement, and Green Streets improvements as required to accommodate operational/capacity improvements.
The goal of the City’s selected project is to provide congestion relief on the Willow Street corridor during peak hours by improving the intersections at Cherry Avenue and Walnut Avenue.
Analysis:
The Memorandum of Understanding, dated September 14, 2021, identified LACMTA as the administrative lead agency during the initial phases of the project (Attachment A). LACMTA manages the scope, cost, schedule, and quality of the work. The City provides comments on draft documents, oversees the deliverables, reviews finalized documents, and ultimately owns the final design plan of the project.
On June 22, 2023, after coordination with City staff, the LACMTA Board increased Measure R allocation to the project by $6,000,000 from $1,312,050 to $7,312,050, which includes funding for Project Approval and Environmental Documents (PA&ED), Plans, Specifications, and Estimates (PS&E), Right-of-Way (ROW), and Construction phases of the project. On June 26, 2025, the LACMTA board increased the Measure R project budget by $250,000, from $7,312,050 to $7,562,050 to further support the ROW phase of the project. With the addition of the City’s matching funds, the total project budget is $7,862,050.
City Staff is requesting City Council approval to enter into a Funding Agreement (FA) with LACTMA. If approved, execution of the FA would authorize the use of grant funds to initiate the PS&E phase of the project. Consistent with the project scope, the PS&E phase will focus on two primary improvements: (1) adding turning lanes and improving turning movements at Willow Street and Cherry Avenue, and (2) traffic signal synchronization along Willow Street between Walnut Avenue to Junipero Avenue.
Funding Agreement
The proposed Funding Agreement with LACMTA establishes the terms for receiving and administering the Measure R funds (Attachment B). Under the proposed agreement, the City would receive reimbursement for eligible project costs associated with right-of-way acquisitions and construction activities identified in the approved scope of work. The agreement requires the City to submit Quarterly Progress and Expenditure Reports with supporting documentation for eligible costs and maintain project records according to accounting and audit requirements.
Under the terms of the agreement, LACMTA would reimburse eligible project costs and retain five percent of eligible expenditures until the project is completed and the final audit is reviewed. The agreement also requires the City to maintain an approved project schedule and expenditure plan, submit periodic updates, and obtain LACMTA approval for any proposed changes to the project scope, funding sources, or milestone dates. The amendment to the MOU would allow LACMTA to continue to provide support to the City through the ROW phase using the project’s regional Measure R funding and establish corresponding roles and responsibilities for the ROW process with oversight responsibility maintained by the City.
Upon City Council approval, the City Manager, or his designee, would proceed to execute the Funding Agreement and Amendment No. 1 to the Memorandum of Understanding (Attachment C) with LACMTA to manage and expend project funding totaling $6,333,679. Approval would also enable the City to execute routine invoices and administrative documents throughout each phase of the project. Staff also prepared a Budget Resolution, totaling $89,679, for Fiscal Year 2026-2027 (Attachment D). The proposed budget adjustment aligns the project budget with the proposed appropriation and does not require the use of the General Fund.
Reviewed for Fiscal Impact:
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Siamlu Cox
Attachments:
A. Memorandum of Understanding dated September 14, 2021
B. Funding Agreement
C. Amendment No. 1 to Memorandum of Understanding
D. Budget Resolution