City of Diamond Bar PROP A LOCAL RETURN FUND EXCHANGE AGREEMENT
This Assignment Agreement ("Agreement") is made and entered into this 16th day of
August , 2016, by and between the City of Diamond Bar, California, a municipal
corporation, ("Diamond Bar") and the City of Rancho Palos Verdes, California, a
municipal corporation ("Rancho Palos Verdes") with respect to the following facts:
A. Rancho Palos Verdes will be constructing capital improvements which have been
approved by the Los Angeles Metropolitan Transportation Authority ("Metro") for the use
of Proposition A Local Return monies. Rancho Palos Verdes desires to use a portion of
Diamond Bar's uncommitted Prop A allocation for Metro approved projects.
B. Diamond Bar's uncommitted Proposition A Local Return funds can be made
available to Rancho Palos Verdes to assist in constructing the capital improvements
discussed in Paragraph A of this Agreement. Diamond Bar is willing to pay its
uncommitted Proposition A Local Return funds to Rancho Palos Verdes for the purpose
identified in Paragraph A in exchange for unrestricted Rancho Palos Verdes general
funds which Diamond Bar may use for any municipal purpose at a rate of $.75 in
Rancho Palos Verdes general funds for each $1.00 in Diamond Bar Proposition A Local
Return funds. •
Now, therefore, in consideration of the mutual benefits to be derived by the parties and
of the premises herein contained, it is mutually agreed as follows:
1. Exchange. Diamond Bar agrees to pay $600,000 of its Fiscal Year 2016-2017,
Proposition A Local Return funds to Rancho Palos Verdes. In exchange, Rancho Palos
Verdes agrees to pay $450,000 of its general funds to Diamond Bar.
2. Payment. Diamond Bar shall pay the agreed upon Proposition A Local Return funds
to Rancho Palos Verdes in one lump-sum payment from Proposition A funds currently
on hand. Rancho Palos Verdes shall pay the agreed upon general funds to Diamond
Bar in one lump-sum payment. The payments of both parties shall be due and payable
within 15 calendar days of the last date of execution of this Agreement by both parties,
which shall occur upon obtaining any necessary approvals from the Los Angeles County
Metropolitan Transportation Authority ("LACMTA"). Rancho Palos Verdes shall be
responsible for obtaining such approvals from the LACMTA for the use of the
Proposition A Local Return funds.
01203.0007/307057.1 992191.1
Assignment Agreement
3. Assurances
Rancho Palos Verdes shall use the assigned Proposition A Local Return funds
only for the purpose of constructing the capital improvements discussed in Paragraph A
of this Agreement or any Metro approved project, and within the time limits specified in
LACMTA's Proposition A Local Return Program Guidelines. Rancho Palos Verdes
assumes all risks of obtaining the necessary approvals for expenditure of the
Proposition A Local Return funds within the applicable time limits and any failure to
timely obtain such approvals shall not give rise to any claim by Rancho Palos Verdes
seeking reimbursement of any monies received by Diamond Bar under this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers.
CITY OF DIAMOND BAR CITY OF RANCHO PALOS
VERDES
BY (2i -4 t7 BY:
.moi _
Nancy A. LJ •ns, M n Dyda, M.;.r
Dated: 7 , 2016 Dated: tc,r- 2.t , 2016
ATTEST:
BY: %la' .. 312BY•
;13.4_.,az.40-_, ,,,C.______________
Tonm e A I Crobins, City Clerk arta Morreal ,'City Clerk
App eve,i• fo 1: Approved as to form:
. t to
AA A._,., mi.__ ff m
David A. m eB- rf, City Y At • e Dave Ales ire, City Attorney
01203.0007/307057.1 992191.1 2