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Home My WebLink About1997-02-11 - AGENDA REPORTS - SEVEN 40 FOOT TRANSIT BUSES (2)Item to be presented by: Lynn Harris NEW BUSINESS DATE: February 11, 1997 SUBJECT: PURCHASE OF SEVEN NEW 40 -FOOT TRANSIT BUSES DEPARTMENT: Public Works BACKGROUND Santa Clarita Transit continues to experience extraordinary ridership growth on the local, fixed -route bus system. In an effort to further alleviate overcrowding, and to create the potential for expanded local service, staff has pursued various funding sources. At this time no funds are immediately accessible to the City through conventional channels. However, a federal grant is available for the City's use, through a grant assumption agreement, to purchase seven new 40 -foot transit buses. In 1993, the Antelope Valley Transit Authority (AVTA) was approved for a capital grant by the Los Angeles County Metropolitan Transit Authority (MTA) in the amount of $1,498,000, for the purchase of additional buses. Since that approval, AVTA has determined that their capital needs exist in areas other than bus equipment. In accordance with the terms of the original grant agreement, the funds will lapse on June 30, 1997. The MTA concurs that a mutual agreement between AVTA and the City of Santa Clarita will allow the City to assume the grant. AVTA and the City have reached agreement, as indicated in the attached draft document. This agreement provides the City with an interest-free loan in the amount of the original grant, to be repaid with Proposition A Local Return funds in three annual installments. The grant will require a local match in the amount of $374,600, to be funded with TDA Article 8 funds. At this time, staff anticipates the delivery of these new buses to begin in January 1998. RECOMMENDATION City Council approve, and authorize the Mayor to execute agreements, with the Federal Transit Administration, the Los Angeles County Metropolitan Transit Authority, and the Antelope Valley Transit Authority, upon approval of the City Attorney. ATTACHMENT Assignment and Assumption Agreement from Metropolitan Transit Authority Loan Agreement from Antelope Valley Transit Authority S:\CCAGENDA\SUSPURCH.AGN 01-15-1997 02:07PM FROM TO 92942517 P.04 TRIG LOAN AGREEMENT is made and entered into this day of , 1996, by and between ANTELOPE VALLEY TRANSIT (AUTHORITY (hereinafter referred to as ,AvTA�l) and the CITY OF SANTA jCLARITA (hereinafter referred to as "CITY") with respect to the jfollowing facts: A. AVTA has been programmed the sum of ONE MILLION FOUR (HUNDRED NINETY-EIGHT THOUSAND DOLLARS ($1,498,000.00) from the Los Angeles County Metropolitan Transit Authority ("LACMTA") pursuant Ito a Letter Agreement between AVTA and LACMTA dated September 7,. 1993. Under said Letter Agreement, AVTA must make use of the funds in 1996, or otherwise the right to the funds will lapse. B. The CITY wishes to obtain from the AVTA the entire program funds of ONE MILLION FOUR HUNDRED NINETY-EIGHT THOUSAND DOLLARS ($1,498,000.00) for the purchase by the CITY of new buses. CITY represents' that they have sufficient surpluses built into their budget so that they will be able to repay said sums as outlined below. 4t C. AVIA represents at it has the legal right to loan CITY the entire program funds and has obtained, or will obtain prior to loaning said funds, and has obtained, or will obtain prior to loaning said funds, the necessary consent from: LACMTA and/or other necessary federal, state, or local agencies to loan the program funds. 1. IRAN. AVTA agrees to loan to CITY the sum of$ONE MILLION FOUR HUNDRED NINETY-EIGHT THOUSAND DOLLARS ($1,4981000.00) of its LACMTA program funds. 0 91-15-1997 02:07PM FROM TO 92942517 P.05 i 2. USE, CITY shall use said sums for the purchase of new 'buses, and hereby agrees to repay said sums on the following ;schedule: On or before January 1, 1998, FIVE HUNDRED THOUSAND (DOLLARS ($500,000.00); on or before January 1, 1999, FIVE HUNDRED I 'THOUSAND DOLLARS ($500,000.00); on or before January 1, 20001, FOUR :HUNDRED NINETY-EIGHT THOUSAND DOLLARS ($498,000.00). CITY hereby agrees to repay. the AVTA the principal in Prop A Local Return Funds, with no interest accruing, and further agrees that in the �fiscal'years of. 1998, 1999 and 2000, CITY shall insert in their (budget the repayment schedule as set forth above. CITY shall repay AVIA with Proposition A Local Return Funds that have been pro- grammed to the CITY in the same fiscal year as the funds are due 'the AVTA. 3. CONDITIONS. AVTA and CITY hereby acknowledge that the :loan of said program funds from AVIA to CITY is specially condi- Itioned upon the receipt by AVIA and CITY of the consent of the i LACNTA. i 4. TERM. This Agreement is effective on the date above (written and for such tim as it is necessary for both parties to 'complete their mutual obligations under this Agreement. ! 5. TERMINATION. Termination of this Agreement may be made by 'either party before the date of approval of the loan contemplated 'by this Agreement by LACMTA, so long as a written notice.of intent Ito terminate is given to the other party at least five (5) days (prior to termination. i 2 a i 01-15-1997 02:08PM I FROM TO 92942517 P.06 6. NOTICE. Notices shall be given pursuant to this Agreement personal service on the party to be notified, or by written ice upon such party, deposited in the custody of the United tes Postal Service, addressed as follows: (a) City Manager, City of Santa Clarita, 23920 icia Boulevard, Santa-Clarita, California, 91355-1103; (b) Executive Director, Antelope Valley Transit 'rity, 1031 West Avenue L-12, Lancaster, California, 93534. 7. ASSURANCES. (a) CITY shall use the program funds herein loaned for the purpose of purchasing new buses and/or for such other ices as specifically agreed upon by AVIA and the LACMTA; (b) CITY agrees to cooperate with and comply with LACMTA requirements concerning the loan of the funds and the of the funds. 8. AVTA and CITY hereby agree that this Agreement may not be . or assigned to any other party. IN WITNESS WHEREOF, the parties hereto have caused this Loan to be executed by their respective officers, duly on this date and year above written. CITY OF SANTA CLARITA BY TITLE 3 01-15-1997 02:08PM FROM TO 92942517 P.07 AS TO ' FORM -?di5 esHffEii•F ATTORNEY AS TO FORM -AND CONTENT THOMAS J. WARD r ATTORNEY FOR ANTELOPE VALLEY TRANSIT-AUTHORiTY n CITY CLERK ANTELOPE VALLEY TRANSIT TITLE This Assignment and Assumption Agreement is dated as of. �, 1996 by and between the Antelope Valley Transit Authority ("AVTA") and the City of Santa Clarita (the "Assignee"). UCITAtS A. The Los Angeles county Metropolitan Transportation Authority ("MTA") programmed a grant of Congestion Management/Air Quality ("CMAX") funds in the amount of $1,498,000 (the "Grant Funds") to AVIA to purchase over -the -road coaches for bus expansion (the "Project,,). B. The programming of the grant is evidenced by that certain Latter of. Agreement No. 207 -CM -6-93-94, dated November 16, 1993, executed by the MTA and AVTA and that certain Amendment No. 1 to Letter of Agreement No. 207 -CM -6=93-94, dated June 1, 1996, executed by the MTA and AVTA (as amended, the "LOA"). C. The Grant Funds were programmed for the Project in the 1993-94 fiscal year. The LOA provides that the Grant Funds must be obligated by June 30, 1997, D. AVIA has realized since execution of the LOA that it does not need to expand its bus service at this time. E. Assignee has realized that it does need to expand its bus service but does not have the funds to do so. .•• F. AVTA and Assignee have entered into that certain loan agreement where AVTA has agrsad to loan the Grant Funds to Assignee on the terms and conditions contained in that agreement. A copy of this agreement is attached as Exhibit A. G. AVTA desires to asbign to Assignee all of its duties, rights and interest in the LOA and Assignee desires to accept the assignment thereof and assume AVTA's obligations under the LOA. N. AVTA represents that it has the legal authority to execute this Assignment and Assumption Agreement, including, but -not limited to, the consent of MTA, and/or other local, state or federal agencies, if necessary. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained in this Agreement, the parties hereby agree as follows: 1 FTC1' NXIZHM 1. AVTA hereby assigns and transfers to Assignee all of its rights and interest in and to the LOA and Assignee hereby accepts the assignment of AVTA's rights and interest in and to the LOA. 2. Assignee hereby accepts the foregoing assignment of rights and interest of 'AVTA and assumes all of AVTA's duties and obligations in accordance with the terms of the LOA. Assignee shall fully and faithfully abide by, perform and discharge all of the AVTA's duties and obligations contained in and in accordance with the provision of the LOA and agrees to be bound by each and all of thQ terms and provision of the LOA as though the LOA had originally been made and executed by Assignee. All references to AVTA as "Grantee" in the LOA shall refer to Assignee. 3. Upon execution of this Assignment and Assumption Agreement, AVTA' shall have no further responsibilities or obligations under the LOA. AVTA agrees that MTA shall have no responsibilities or obligations, eithernow or in the future, to provide the Grant Funds to AVIA. 4. Any change or amendment of this Assignment and Assumption Agreement shall be invalid without the written consent of both parties and the MTA. 5. This Assignment and Assumption Agreement shall be binding upon and inure to the benefit of the respective heirs, legal representatives, successors and assigns of the parties hereto. 6. If any provision hereof is determined to be illegal or unenforceable for any reason, the remaining provisions hereof shall not be affected thereby. Fj M.T.A Jan 07'97 10:57 N0.005 P.05 7. This Assignment and Assumption Agreement shall be governed by and Construed in accordance with the laws of the State of California. IN WITNESS WHEREOF, AVTA and Assignee have executed this Assignment and Assumption Agreement as of the day and year first above written. ANTELOPE VALLEY TRANSIT AUTHORITY By: Name_; - CITY OF SANTA CLARITA By:— Title•. Approved as to Form: By: Approved as to Form: By: K2� �- City A torney M.T.H. PLNG/PROG ILL.215-922-3005 Tan 07'97 10 57 No.005 P.06 ACKNOWLEDGEMENT AND CONSENT OF THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY The LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY ("MTA") acknowledges and consents to the - assignment of such rights and interest by ANTELOPE VALLEY TRANSIT AUTHORITY to the CITY OF SANTA CLARITA ("Assignee") as set forth in the attached Assignment and Assumption Agreement dated as of The MTA agrees to permit Assignee to exercise and enjoy such rights and interest assigned to Assignee as if it were the "Grantee" under that certain Letter of Agreement No. 207 -CM -6-93- 94, dated November 16, 1993, and executed by AVTA and the MTA, as. amended by that certain Amendment dated June 1, 1996. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY By: Name: Titled Date: 4