RPVCCA_CC_SR_2012_09_04_F_Prop_A_Exchange_With_Rolling_HillsCITY OF
MEMORANDUM
RANCHO PALOS VERDES
REVIEWED:
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &MEMBERS OF THE CI~NCIL
DENNIS McLEAN,DIRECTOR OF FINANCE &IT «Jj/:J
SEPTEMBER 4,2012
PROPOSITION A EXCHANGE AND GIFT OF OTHER
RESTRICTED MONEY FROM THE CITY OF ROLLING HILLS
CAROLYN LEHR,CITY MANAGER~
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information
Technology
RECOMMENDATION ((j)
1.Approve the attached Proposition A assignment agreement;
2.Adopt Resolution No.2012-, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2012-43,
THE BUDGET APPROPRIATION FOR FY12-13,TO ADJUST THE BUDGET IN
THE CITY'S GENERAL FUND AND BIKEWAYS FUND;and
3.Adopt Resolution No.2012-, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,CALIFORNIA,ACCEPTING FROM
THE CITY OF ROLLING HILLS,CALIFORNIA ITS AVAILABLE
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS.
BACKGROUND AND DISCUSSION
Like all cities,the City of Rolling Hills receives allocations of Proposition A and
Transportation Development Act (TDA)Article 3 money.In general,these funds are
restricted to transportation related projects,arterial street repairs and public transit.The
City of Rolling Hills does not have enough qualifying expenditures for the funding it
receives.Cities have the option of "selling"unusable Proposition A money in exchange for
unrestricted General Fund money.Because Proposition A money is restricted,it is typically
"sold"at a discount.However,cities cannot sell TDA Article 3 monies.A City with
unusable amounts of this restricted revenue may "gift"amounts to another agency with
qualifying expenditures.
On May 2,2012,the City Manager of Rolling Hills contacted Staff to gauge Rancho Palos
Verdes interest in purchasing $60,000 of Proposition A money at a discount.Staff
responded to the Rolling Hills request and proposed an exchange rate of $0.70 on theF-1
PROPOSITION A EXCHANGE AND GIFT OF OTHER RESTRICTED MONEY FROM
THE CITY OF ROLLING HILLS
September 4,2012
Page 2 of 2
dollar for the Proposition A money (the current market rate as reported by Los Angeles
County Metropolitan Transportation Authority),as well as a list of potential projects that
could utilize the other restricted money that the City of Rolling Hills intends to "gift".The
Proposition A exchange was included in the FY12-13 Budget.
On August 13th ,the City of Rolling Hills approved the sale of $60,000 of Proposition A
money to the City of Rancho Palos Verdes for $45,000 of General Fund money (exchange
rate of $0.75 on the dollar,the same rate used for the 2010 exchange with Rolling Hills).
The City of Rolling Hills also approved a $9,750 gift of TDA Article 3 money to the City of
Rancho Palos Verdes.These restricted monies would be used to fund bus pads and bus
shelters on the City's arterial streets,as well as other arterial improvements.
FISCAL IMPACT
If the City Council approves the attached Proposition A assignment agreement,the City will
be able to fund bus pads and shelters at a discounted rate.The Proposition A exchange
was included in the FY12-13 budget at a rate of $0.70 on the dollar.The City of Rolling
Hills approved the exchange at a rate of $0.75 on the dollar;which,if approved by City
Council,would necessitate a $3,000 budget adjustment for the difference.The increase of
expenditure has been reflected on the FY12-13 Statement of Estimated General Fund
Reserves (see Attachment A).
If the City Council approves the attached resolution accepting the TDAArticle 3 money,the
City will have an additional $9,750 of restricted funding for arterial street improvements.
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PROPOSITION A ASSIGNMENT AGREEMENT
This Assignment Agreement is made and entered into this 13 th day of
August,2012 by and between the City of Rancho Palos Verdes and the City of Rolling
Hills,with respect to the following facts:
A.The City of Rancho Palos Verdes contracts with the Palos Verdes Transit
Authority for fixed route transit services.The municipal transit operations serve
residents on the Palos Verdes Peninsula and the Authority operates and maintains transit-
related equipment.
B.The City of Rolling Hills has an accumulation of uncommitted Proposition A
Local Return funds which could be made available to the City of Rancho Palos Verdes to
assist in'providing the services described in Paragraph A of this Agreement.In exchange
for the assignment of the amount of General Funds indicated in Section 1 below by the
City of Rancho Palos Verdes,the City of Rolling Hills is willing to assign uncommitted
Proposition A Local Return funds to the City of Rancho Palos Verdes for the purpose
identified in Paragraph A.
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.The City of Rolling Hills agrees to assign $60,000 of its
uncommitted Proposition A Local Return funds to the City of Rancho Palos Verdes in
Fiscal Year 2012/13.In return,the City of Rancho Palos Verdes agrees to assign $45,000
in General Funds to the City of Rolling Hills in Fiscal Year 2012/13.
2.Consideration.The City of Rolling Hills shall assign the agreed upon
Proposition A Local Return funds to the City of Rancho Palos Verdes in one payment no
later than June 30,2013.The City of Rancho Palos Verdes shall assign the agreed upon
General Funds to the City of Rolling Hills in one payment no later than June 30,2012.
3.Term.This Agreement is effective on the date above written and for
such time as is necessary for both parties to complete their mutual obligations under this
Agreement.
4.Termination.Termination of this Agreement may be made by either
party before the date of approval of the project description covering the funds in question
by the Metropolitan Transportation Authority,so long as written notice of intent to
terminate is given to the other party at least five (5)days prior to the termination.
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 deposited in the
custody of the United States Postal Service addressed as follows:
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a.Anton Dahlerbruch,City Manager
City of Rolling Hills
2 Portuguese Bend Road
Rolling Hills,California 90274
b.Dennis McLean,Dir.Of Finance &Infonnation Technology
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes,California 90275
6.Assurances
a.The City of Rancho Palos Verdes shall use the assigned Proposition A
Local Return Funds only for the purpose of providing the project discussed in Paragraph
A of this Agreement and within the time limits specified in Metropolitan Transportation
Authority's Proposition A Local Return Program Guidelines.
b.Concurrently with the Execution of this Agreement,the City of Rancho
Palos Verdes shall provide the Metropolitan Transportation Authority with the Standard
Assurances and Understandings Regarding Receipt of Use of Proposition A Funds
specified in the Guidelines regarding the use of the assigned Proposition A Local Return
Funds.
IN WITNESS WHEREOF,the parties hereto have caused this Assignment
Agreement to be executed by heir respective officers,duly authorized,on the day and
year written above.
CITY OF RANCHO PALOS VERDES
00 ~deft/.By:-=-JA~'?lk L./
City anager
Attest:
City Clerk
Approved as to F onn:
City Attorney
Attest:
Deputy City Clerk
City Attorney
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RESOLUTION NO.2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION 2012-43,THE BUDGET APPROPRIATION
FOR FY12-13,TO ADJUST THE BUDGET IN THE CITY'S GENERAL FUND AND
BIKEWAYS FUND
WHEREAS,on June 19,2012,the City Council of the City of Rancho Palos Verdes
adopted Resolution 2012-43,approving a spending plan and authorizing a budget
appropriation for FY12-13:and
WHEREAS,the City Council desires to exchange General Fund money for Proposition
A money with the City of Rolling Hills and receive a gift of Transportation Development
Act (TDA)Article 3 money from the City of Rolling Hills;and.
WHEREAS,the City Council desires that the FY12-13 budget be adjusted.
BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES:
The following adjustments are made to the FY12-13 budget:
General Fund Adjustment:
Public Works Admin#101-3001-431-69-00
Bikeways Fund Adjustment:
Bikeways #340-3040-369-10-00
Misc Expenditure
Misc Revenue
$3,000
$9,750
PASSED,APPROVED,AND ADOPTED THE 4th DAY OF SEPTEMBER 2012.
MAYOR
ATTEST:
CITY CLERK
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I,CARLA MORREALE,City Clerk of The City of Rancho Palos Verdes,hereby certify
that the above Resolution No.2012-was duly and regularly passed and adopted by
the said City Council at regular meeting thereof held on September 4,2012.
CITY CLERK
CITY OF RANCHO PALOS VERDES
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RESOLUTION NO.2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES,CALIFORNIA,ACCEPTING FROM THE CITY OF
ROLLING HILLS,CALIFORNIA ITS AVAILABLE TRANSPORTATION
DEVELOPMENT ACT ARTICLE 3 FUNDS.
WHEREAS,the City of Rolling Hills has a fund balance of approximately fifteen
thousand dollars ($15,000)in Transportation Development Act Article 3 Funds ("TDA Funds")
comprising the City of Rolling Hills'portion of S8 821 funds collected by the County of Los
Angeles for the development of bicycle and pedestrian facilities;and
WHEREAS,the City of Rolling Hills does not have projects that are
eligible for funding with TDA Funds;and
WHEREAS,the City of Rancho Palos Verdes has identified projects that qualify
for funding with TDA Funds;and
WHEREAS,the City of Rolling Hills has a general interest in supporting eligible
projects for transportation to maintain traffic flow and to improve bicycle and pedestrian facilities
on the Palos Verdes Peninsula;and
WHEREAS,at this time the City of Rolling Hills wishes to allocate TDA Fund
balances to other public agencies,including to the City of Rancho Palos Verdes,to be utilized
for an eligible use;and
WHEREAS,at this time the City of Rancho Palos Verdes wishes to accept
Rolling Hills'allocation of any TDA Fund balances to be utilized for an eligible use;and
WHEREAS,the City of Rolling Hills has a well-established cost allocation
formula with the City of Rancho Palos Verdes and other cities for regional law enforcement and
other shared projects,reflecting proportional benefits received by each agency.
NOW,THEREFORE,the City Council of the City of Rancho Palos Verdes,
California,does hereby resolve as follows:
Section 1.The City of Rancho Palos Verdes hereby accepts the City of
Rolling Hills'assignment of sixty-five percent (65%)or $9,750 of its accumulated balance of
TDA Funds.
Section 2.The City of Rolling Hills will submit its documentation for the Los
Angeles Metropolitan Transportation Authority to allocate these funds to the City of Rancho
Palos Verdes for the appropriate eligible programs.
Section 3.The City Clerk of the City of Rolling Hills shall forward certified
copies of the City of Rolling Hills'resolution assigning such funds to the City of Rancho Palos
Verdes.
Section 4.The City Manager of the City of Rancho Palos Verdes is hereby
directed and authorized to execute any necessary documents,including,but not limited to
agreements,amendments,forms and applications to follow through with this transfer of funds.
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PASSED,APPROVED,AND ADOPTED THIS 4th DAY OF SEPTEMBER 2012.
Mayor
ATTEST:
City Clerk
STATE OF ,CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDE )
City Clerk
F-7