CC SR 20160920 D - Prop A Exchange AgreementRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 09/20/2016
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA DESCRIPTION:
Consideration and possible action to enter into Local Return (LR) Fund Exchange
Agreements with the cities of Montebello and Rolling Hills.
RECOMMENDED COUNCIL ACTION:
(1) Approve a Proposition A LR Fund Exchange Agreement with the City of
Montebello in a form approved by the City Attorney;
(2) Approve an additional appropriation of $750,000 in exchange for $1,000,000 of
Proposition A LR Funds from the City of Montebello;
(3) Approve a Proposition A LR Fund Exchange Agreement with the City of Rolling
Hills in a form approved by the City Attorney; and,
(4) Approve an additional appropriation of $56,250 in exchange for $75,000 of
Proposition A LR Funds; and
(5) Receive $65,000 of gifted Proposition C Funds from the City of Rolling Hills.
FISCAL IMPACT: $806,250
Amount Budgeted: $0
Additional Appropriation: $806,250
Account Number(s): 101-6000-411-69-00
ORIGINATED BY: Vina Ramos, Accounting Supervisor ,JI2_
Nicole Jules, PE, Deputy Director of Public Works
REVIEWED BY: Deborah Cullen, Director of Finance L -
APPROVED BY: Doug Willmore, City Manager.'
ATTACHED SUPPORTING DOCUMENTS:
A. Proposition A LR Fund Exchange Agreement with the City of Montebello
(page A-1)
BACKGROUND AND DISCUSSION:
Proposition A is a half -cent sales tax measure approved by Los Angeles County voters
in 1980 to finance a countywide transit development program. Twenty-five percent
(25%) of the Proposition A tax revenues are designated for the Local Return (LR)
Program funds administered by the Metropolitan Transit Authority (Metro). Annually,
Metro distributes the LR funds on a per -capita basis to eighty-eight (88) cities and
unincorporated areas of Los Angeles County. The LR funds are restricted for
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developing and/or improving public transit, paratransit, and the related transportation
infrastructure.
The City's Proposition A allocation for FY16-17 is $779,900, of which 80% or $638,300
funds the annual contribution to the Palos Verdes Peninsula Transit Authority
(PVPTA)/Dial-A-Ride and -Lift programs, printing costs, and bus stop shelter
maintenance and improvements.
During the City's FY16-17 budget workshop, Staff received City Council's approval to
seek information regarding LR Fund Exchange Programs with other cities. On August 2,
2016, the City Council approved the first Exchange Program with the City of Diamond
Bar. Staff also identified City of Montebello and City of Rolling Hills with uncommitted
Proposition A Funds. The current exchange rate is also $0.75 of unrestricted General
Fund monies for $1.00 of Proposition A funds.
City of Montebello
Staff has been in contact with the City of Montebello regarding their available
Proposition A Funds in the amount of $1,000,000. The City submitted a letter of intent to
the City of Montebello and their Staff will request their City Council's authorization for
the exchange on September 21, 2016. The cost for the exchange is $750,000, a total
discount of 25% or $250,000.
City of Rolling Hills
In July 2016, the City of Rolling Hills sent a letter to the neighboring cities regarding
their available Proposition A Funds of $75,000 and Proposition C Funds of $65,000.
Based on Metro's guidelines, the Proposition C Funds of $65,000 are to be "gifted" only
to jurisdictions. The City submitted a letter of intent to the City of Rolling Hills requesting
both Proposition A and Proposition C Funds. The City of Rolling Hills will make a
decision after September 30, 2016, and will notify the city that has been chosen to
receive these funds, as well as prepare the agreement. If the Rancho Palos Verdes is
chosen, the cost for the Proposition A exchange is $56,250, a total discount of 25% or
$18,750, and there is no cost for the Proposition C gifted amount of $65,000.
Proposed Project
Based on Metro's guidelines, the City has three (3) years to spend the exchange funds
for any projects with a direct benefit to public transit. Proposition A's eligible projects
include fixed -route and paratransit services, transportation demand management,
transportation systems management and fare subsidy programs.
In coordination with the PVPTA and the City of Rolling Hills Estates, the Public Works
Department proposes to expend exchange funds to improve the quality and safety of
and/or access to public transit services along Silver Spur Road adjacent to Peninsula
High School and Promenade on the Peninsula Mall. The Silver Spur Road intersects
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Hawthorne Boulevard where transit transfers between Metro Line 344 and LADOT
Commuter Express Line 448 occur. The proposed improvements will include the
following amenities:
• Construction of bus pads or concrete landings
• Construction of bus shelters
• Installation of bus benches
• Construction of ADA improvements including access ramps (curb cuts) and
sidewalk repairs to remove hazards/vertical uplifts within 25' of a bus stop.
Additionally, replacement and maintenance of existing transit amenities will be
implemented. The above-mentioned improvements will serve a transit demand directly
associated with the nearby high school and commercial zone, and will improve the
transit experience of the general public.
The proposed project is included in the City's approved Capital Improvement Projects
(CIP). If the exchange is approved, the Proposition A and Proposition C funds will help
reduce future transfers from the General Fund to the CIP Fund by $483,750, including
the previously approved exchange with City of Diamond Bar.
The Public Works Department will refine the project scope in coordination with the City
of Rolling Hills Estates and the PVPTA since the project limits are near jurisdictional
boundaries. Development of project plans, specifications and cost estimates could
begin as early as the summer of 2017, and construction would occur approximately one
year later.
CONCLUSION:
Staff requests City Council's approval to proceed with purchasing discounted
Proposition A Funds from the cities of Montebello and Rolling Hills. The City will
purchase a total of $1,075,000 in Proposition A funds for $806,250 of General Fund
monies. If approved, the City will enter into Exchange Agreements with the cities in a
form approved by the City Attorney. Additionally, if chosen, Staff asks for City Council's
approval to receive the City of Rolling Hills' gifted Proposition C Funds of $65,000.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action is available for
the City Council's consideration:
1. Do not enter into a Local Return Fund Exchange Agreement with the cities
of Montebello and Rolling Hills.
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FUND TRADE AGREEMENT
BETWEEN THE CITY OF RANCHO PALOS VERDES
AND THE CITY OF MONTEBELLO, CALIFORNIA
This Assignment Agreement is made and entered into this 20th day of September, 2016, by and
between the City of Rancho Palos Verdes, California ("RPV") and the City of Montebello,
California ("Montebello") with respect to the following facts:
A. Montebello has uncommitted funding authority for its Fiscal Year 2016-17 allocation of
Proposition "A" Local Return funds ("Prop A Funds") that can be made available to RPV
to assist in providing the services discussed in Paragraph B below. Montebello is willing
to assign its uncommitted Prop A Funds to RPV for the purpose(s) identified in Paragraph
B, in exchange for the assignment by RPV of the amount of its general funds indicated in
Section 1 below.
B. RPV proposes to use Montebello's uncommitted Prop A Funds to fund Silver Spur Road
Project ("Project"), an eligible capital improvement project. The Project will improve the
safety and/or access to public transit services along Silver Spur Road adjacent to
Peninsula High School and Promenade on the Peninsula Mall. The Project will include
construction of bus pads or concrete landings, construction of bus shelters, installation of
bus benches, construction of ADA improvements including access ramps and sidewalks
repair to remove hazards/vertical uplifts within 25' of a bus stop. Adequate Prop A
funding for such services is not currently available given the limited amount of RPV's
Local Return allocation.
C. Upon execution of this Agreement, RPV will require no further discretionary approvals
from the Los Angeles County Metropolitan Authority ("LACMTA") or any other
regulatory agency and will be able to use the Prop A Funds for the projects described in
Paragraph B above.
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. Montebello agrees to assign One Million Dollars ($1,000,000) of its Fiscal Year
2016-17 Prop A Funds funding authority to RPV. In return, RPV agrees to assign Seven
Hundred and Fifty Thousand Dollars ($750,000) of its general funds to Montebello.
2. Consideration. Montebello shall provide the agreed upon Prop A Funds to RPV in one
lump sum payment. RPV shall also provide the agreed upon general funds to Montebello
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 necessary approvals from the LACMTA or any other regulatory
agency from which RPV shall require discretionary approvals for the construction of the
projects set forth in Paragraph B above.
01203.0007/312443.1
A-1
3. Term. This Agreement is effective on the date first above written, and shall continue for
such time as is necessary for both parties to complete their mutual obligations set forth
herein.
4. Termination. This Agreement may be terminated with or without cause by either party
upon five (5) days written notice to the other party.
5. Notices. Notices shall be given pursuant to this Agreement by personal service on the party
to be notified or by written notice upon such party by certified mail deposited in the custody
of the United States Postal Service addressed as follows:
CITY OF MONTEBELLO
1600 W. Beverly Boulevard
Montebello, CA. 90640
Attn: Danilo Baston, Assistant City Manager
CITY OF RANCHO PALOS VERDES
30940 Hawthorne Blvd.,
Rancho Palos Verdes, CA 90275
Attn: Deborah Cullen
6. Assurances.
a. RPV shall use the assigned Prop A Funds only for the purpose of providing the
services discussed in Paragraph B of this Agreement and within the time limits
specified in LACMTA's Proposition "A" Local Return Program Guidelines.
b. Concurrently with the execution of this Agreement, RPV shall provide LACMTA
with the Standard Assurances and Understandings Regarding Receipt and Use of
Proposition "A" funds specified in the Guidelines regarding the use of the assigned
Proposition "A" Local Return Funds.
01203.0007/312443.1
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers, duly authorized, on the day and year above written.
CITY OF RACHO PALOS VERDES CITY OF MONTEBELLO
BY: BY:
Ken Dyda, Mayor , Mayor
Dated: , 2016 Dated: , 2016
ATTEST:
BY: BY:
, City Clerk , City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
David J. Aleshire, City Attorney , City Attorney
01203.0007/312443.1
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