RPVCCA_SR_2010_09_21_05_Prop_A_Monies_From_The_City_Of_Rolling_HillsCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR &MEMBERS OF THE CIT~UNCIL
DENNIS McLEAN,DIRECTOR OF FINANCE &IT ~
SEPTEMBER 21,2010
PROPOSITION A EXCHANGE AND GIFT OF OTHER
RESTRICTED MONIES FROM THE CITY OF ROLLING HILLS
CAROLYN LEHR,CITY MANAGER~WoCl-
Staff Coordinator:Kathryn Downs,Deputy Director of Finance &Information
Technology ~
RECOMMENDATION
1.Approve the attached Proposition A assignment agreement;
2.Adopt Resolution No.2010-, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION 2010-55,
THE BUDGET APPROPRIATION FOR FY10-11,TO ADJUST THE BUDGET IN
THE CITY'S GENERAL FUND,PROPOSITION A FUND,PROPOSITION C
FUND,MEASURE R FUND,AND BIKEWAYS FUND;and
3.Adopt Resolution No.2010-, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES,CALIFORNIA,ACCEPTING FROM
THE CITY OF ROLLING HILLS,CALIFORNIA ITS AVAILABLE PROPOSITION
C TRANSPORTATION FUNDS,TRANSPORTATION DEVELOPMENT ACT
ARTICLE 3 FUNDS AND MEASURE R FUNDS.
BACKGROUND AND DISCUSSION
Like all cities,the City of Rolling Hills receives allocations of Proposition A,Proposition C,
Measure R 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 Proposition C,
Measure Rand TDA Article 3 monies.A City with unusable amounts of these restricted
revenues may "gift"them to another agency with qualifying expenditures.
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PROPOSITION A EXCHANGE AND GIFT OF OTHER RESTRICTED MONIES FROM
THE CITY OF ROLLING HILLS
September 21,2010
Page 2 of2
On July 14,2010,the City Manager of Rolling Hills contacted Staff to gauge Rancho Palos
Verdes interest in purchasing $65,000 of Proposition A money at a discount.In addition,
the City of Rolling Hills has $55,000 of other restricted funds (Proposition C,Measure R,
and TDA Article 3)that it wishes to gift to another agency.
The City's annual Proposition A revenue is not sufficient to fully fund the City's annual
transit contributions to Palos Verdes Peninsula Transit and Municipal Area Express (MAX).
Therefore,the FY1 0-11 budget includes a General Fund subsidy of $60,000 to the Transit
program.Purchasing additional Proposition A money from the City of Rolling Hills at a
discount would result in General Fund savings.On July 22,2010,Staff responded to the
Rolling Hills request and proposed an exchange rate of $0.75 on the dollar for the
Proposition A money,as well as a list of potential projects that could utilize the other
restricted monies that the City of Rolling Hills intends to "gift".
On September 13th
,the City of Rolling Hills approved the sale of $65,000 of Proposition A
money to the City of Rancho Palos Verdes for $48,750 of General Fund money (exchange
rate of $0.75 on the dollar).The City of Rolling Hills also approved a $33,750 gift of other
restricted monies to the City of Rancho Palos Verdes.These restricted monies would be
used to help fund upcoming improvement projects on the City's arterial streets.
FISCAL IMPACT
If the City Council approves the attached Proposition A assignment agreement,the City's
General Fund will save $11 ,250 ($60,000 originally budgeted General Fund contribution to
Transit,less $48,750 paid to the City of Rolling Hills for Proposition A money).This
savings has been reflected on the FY10-11 Statement of Estimated General Fund
Reserves (see Attachment A).
If the City Council approves the attached resolution accepting the other restricted monies,
the City's Proposition C,Measure R,and Bikeways Funds will receive a combined total gift
of $33,750 in restricted revenue from the City of Rolling Hills (see attached budget
resolution).
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PROPOSITION A ASSIGNMENT AGREEMENT
This Assignment Agreement is made and entered into this _rd day
of ---f 2010,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 $65,000 of its
uncommitted Proposition A Local Return funds to the City of Rancho Palos
Verdes in Fiscal Year 2010/11.In return,the City of Rancho Palos Verdes agrees
to assign $48,750 in General Funds to the City of Rolling Hills in Fiscal Year
2010/11.
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 30,2011.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 30,2011.
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
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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:
a.Anton Dahlerbruch,City Manager
City of Rolling Hills
2 Portuguese Bend Road
Rolling Hills,California 90274
b.Dennis McLean,Dir.Of Finance &Information 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
By:_
City Manager
CITY OF ROLLING HILLS
By:_
City Manager
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Attest:
City Clerk
Approved as to Form:
City Attorney
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Deputy City Clerk
City Attorney
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RESOLUTION NO.2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES,AMENDING RESOLUTION 2010-55,THE BUDGET APPROPRIATION
FOR FY1 0-11,TO ADJUST THE BUDGET IN THE CITY'S GENERAL FUND,
PROPOSITION A FUND,PROPOSITION C FUND,MEASURE R FUND,AND
BIKEWAYS FUND
WHEREAS,on June 15,2010,the City Council of the City of Rancho Palos Verdes
adopted Resolution 2010-55,approving a spending plan and authorizing a budget
appropriation for FY1 0-11:and
WHEREAS,the City Council desires to exchange General Fund money for Proposition
A money with the City of Rolling Hills and receive gifts of Proposition C money,Measure
R money,and Transportation Development Act (TDA)Article 3 money from the City of
Rolling Hills;and
WHEREAS,the City Council desires that the FY10-11 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 FY10-11 budget:
General Fund Adjustments:
Transfers Out #101-6000-491-91-00
Public Works Admin#101-3001-431-69-00
Proposition A Fund Adjustment:
Prop A #216-3016-369-10-00
Proposition C Fund Adjustment:
Prop C #215-3015-369-10-00
Measure R Fund Adjustment:
Measure R #220-3020-369-10-00
Bikeways Fund Adjustment:
Bikeways #340-3040-369-10-00
To Proposition A
Misc Expenditure
Misc Revenue
Misc Revenue
Misc Revenue
Misc Revenue
$(60,000)
$48,750
$65,000
$18,000
$6,000
$9,750
PASSED,APPROVED,AND ADOPTED THE 21 st DAY OF SEPTEMBER 2010.
MAYOR
ATTEST:
CITY CLERK
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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.2010-was duly and regularly passed and adopted by
the said City Council at regular meeting thereof held on September 21,2010.
CITY CLERK
CITY OF RANCHO PALOS VERDES
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES,CALIFORNIA,ACCEPTING FROM
THE CITY OF ROLLING HILLS,CALIFORNIA ITS AVAILABLE
PROPOSITION C TRANSPORTATION FUNDS,
TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS
AND MEASURE R FUNDS.
WHEREAS,the City of Rolling Hills has a fund balance of approximately
thirty thousand dollars ($30,000)in Proposition C Local Return Funds for transportation
projects;and
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 SB 821 funds collected by
the County of Los Angeles for the development of bicycle and pedestrian facilities;and
WHEREAS,the City of Rolling Hills has a fund balance of approximately
ten thousand dollars ($10,000)in Measure R Funds for transportation projects;and
WHEREAS,the City of Rolling Hills does not have projects that are
eligible for funding with Proposition C Local Return Funds,TDA Funds or Measure R
Funds;and
WHEREAS,the City of Rancho Palos Verdes has identified projects that
qualify for funding with Proposition C Local Return Funds,TDA Funds and Measure R
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
Proposition C Local Return Fund,TDA Fund and Measure R 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 Proposition C Local Return Fund,TDA Fund and
Measure R 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.
Resolution No.---1-R6876.0001\1279779.2
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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 percent (60%)of its accumulated balance of
Proposition C Local Return Funds and Measure R Funds.
Section 2.The City of Rancho Palos Verdes hereby accepts the City of
Rolling Hills'assignment of sixty-five percent (65%)of its accumulated balance of TDA
Funds.
Section 3.The City of Rancho Palos Verdes hereby accepts the City of
Rolling Hills'assignment of funds totaling thirty-three thousand,seven hundred and fifty
dollars ($33,750),consisting of eighteen thousand dollars ($18,000)in Proposition C
Transportation Funds,nine thousand,seven hundred and fifty dollars ($9,750)in TDA
Funds,and six thousand dollars ($6,000)in Measure R Funds for road resurfacing and
access ramps.
Section 4.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 5.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 6.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.
Resolution No.__-2-R6876.0001\1279779.2
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PASSED,APPROVED,AND ADOPTED BY THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES ON THIS DAY OF _
2010.
Mayor
ATTEST:
City Clerk
Resolution No.---3-R6876.0001 \1279779.2
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF RANCHO PALOS VERDES
)
)
)
SS
The foregoing Resolution No.entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES,CALIFORNIA,ACCEPTING FROM
THE CITY OF ROLLING HILLS ITS AVAILABLE PROPOSITION
C TRANSPORTATION FUNDS,TRANSPORTATION
DEVELOPMENT ACT ARTICLE 3 FUNDS AND MEASURE R
FUNDS.
was approved and adopted at a regular meeting of the City Council on
__________,2010,by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
Resolution No.---4-R6876.0001\1279779.2
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FY10-11 Statement of Estimated General Fund Reserves
Adjustments:
Beginning
Reserves Revenues Expenditures
Attachment A
Ending
Reserves
FAA Consultant for Proposed Class C Airspace
Change
FY09-10 Year-End Adjustments
CDBG Reallocation
Proposition A Exchange with the City of Rolling
Hills
8/17/2010
9/7/2010
9/712010
9/21/2010
(15,000)
61,610
(48,750)60,000
Net Transfers include both operating transfers from and to the General fund.Originally budgeted Net Transfers are adjusted when staff becomes aware that
an additional 0 eratin transfer is needed to satisf an unantici ated shortfall within another fund;and that shortfall must be funded with General fund monies.
Ending Reserves are the estimated 6/30/10 General fund reserves at the time of budget adoption.Adjusted Ending Reserves is a calculation based on
subse uent ad'ustments to Be innin Reserves Revenues,Ex enditures and Net Transfers.
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