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Home My WebLink About1998-07-14 - AGENDA REPORTS - EXCHANGE WITH CITY OF LA VERNE (2)4 .. AGENDA REPORT City Manager Approv 1: Item to be presented by: Barbara Boswell CONSENT CALENDAR DATE: July 14, 1998 SUBJECT: PROPOSITION A LOCAL RETURN FUNDS EXCHANGE WITH THE CITY OF LA VERNE DEPARTMENT: Administrative Services RECOMMENDED ACTION Adopt Resolution No. 98-99, authorizing the execution of an assignment agreement with the City of La Verne for exchange of Proposition A Funds for General Funds; and authorize the City Manager to sign all necessary documents, subject to the approval of the City Attorney. BACKGROUND The City of La Verne is seeking cities interested in exchanging Unrestricted General Funds for Proposition A Local Return funds in the amount of $225,000. The City of Santa Clarita would exchange $.70 of unrestricted General Funds for each $1.00 of Proposition A Funds, resulting in a net gain of $67,500. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT General Funds are currently available in the Newhall Metrolink Station project to be utilized for this exchange. These funds would be replaced by the Proposition A Local Return Funds received from the City of La Verne. ATTACHMENT Resolution No. 98-99, Authorizing the Execution of an Assignment Agreement with the City of La Verne for Exchange of Proposition A Funds for General Funds. Assignment Agreement for Transfer of Proposition A Funds. BB:hds .o CiINM98-99 Adopted. `1.1 / J(( _ Agenda Item_ RESOLUTION NO. 98-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE EXECUTION OF AN ASSIGNMENT AGREEMENT WITH THE CITY OF LA VERNE FOR EXCHANGE OF PROPOSITION A FUNDS FOR GENERAL FUNDS WHEREAS, the City of La Verne wishes to exchange Proposition A Local Return Funds for General Funds; WHEREAS, the City of Santa Clarita has a project that is an eligible use of Proposition A Local Return Funds; WHEREAS, the City Council of the City of Santa Clarita states its intent and desire to exchange its General Funds for Proposition A Local Return Funds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does resolve as follows: SECTION 1: That the City Manager is hereby authorized to execute an Assignment Agreement with the City of La Verne for the exchange of General Funds for Proposition A funds,. said agreement being in the form attached hereto and made a part hereof by reference as though the same were set forth in full herein. SECTION 2: That the City Clerk shall certify to the adoption of this Resolution and shall forward a certified copy thereof to the City of La Verne. PASSED, APPROVED AND ADOPTED THIS 14'" day of July 1998. MAYOR ATTEST: CITY CLERK RESOLUTION NO. 98.99 Page 2 STATE OF CALIFORNIA) COUNTY OF LOS ANGELES) SS CITY OF SANTA CLARITA) I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted. by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of . 19_, by the following vote of the Council. AYES: COUNCILMEMBERS NOES: ABSENT: COUNCILMEMBERS SHARON L. DAWSON, CMC CITY CLERK BB:hds ..a%i a9e-74 City of. La Verne ASSIGNMENT AGREEMENT FOR TRANSFER OF PROPOSUION A -FUNDS This Assignment Agreement is made and entered into this day of . 1998, by and between the City of La Verne, California, and the City of Santa Clarita, California, with respect to the following facts: A. The City of Santa Clarita proposes to utilize Proposition A Local Return funds received from the City of La Verne to aid in the construction of a City Metrolink Station. Adequate Proposition A Local Return funding for such a service is not available given the limited amount of City of Santa Clarita's Local Return allocation and the needs of other priority transit projects in the City. B. The City of La Verne has uncommitted funding authority for its Fiscal Year 1998-99 allocation of Proposition A Local Return funds which could be made available to the City of Santa Clarita to assist in providing the services discussed in Paragraph A of this Agreement. In exchange for assignment by the City of Santa Clarita of the amount of its general funds indicated in Section 1 below, the City of La Verne is willing to assign uncommitted Proposition A Local Return funding to the City of Santa Clarita for the purpose identified in Paragraph A above. NOW, THEREFORE, in consideration of the mutual benefits derived by the parties and of the premises herein contained, it is mutually agreed as follows: 1. Exchange. The City of La Verne agrees to assign $225,000 of its Fiscal Year 1998-99 Proposition A Local Return funding authority to the City of Santa Clarita. In return, the City of Santa Clarita agrees to assign $157,500 of its general funds to the City of La Verne. 2. Consideration The City of La Verne shall sign the agreed upon Proposition A Local Return funds to the City of Santa Clarita in one payment due the thirty-first (3 1) day after the Metropolitan Transportation Authority (MTA) has approved the project description indicating the amount of Proposition A funds to be exchanged. The City of Santa Clarity shall assign the agreed upon general funds to the City of La Verne in one payment due the date La Verne remits its Proposition A funds to the City of Santa Clarita, 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 MTA so long as written notice of intent to terminate is given to the other party atleast 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. City Manager City of La Verne 3660 `D' Street La Verne, CA 91750 b. City Manager City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355 6. Assurances. a. The City of Santa Clarita shall used the assigned Proposition A Local Return funds only for the purpose of providing the services discussed in Paragraph A of this Agreement and within the time limits specified in MIA's Proposition A Local Return Program Guidelines. b. Concurrently with the execution of this Agreement, the City of Santa Clarita shall provide the MTA with the Standard Assurances and Understandings Regarding Receipt and Use of Proposition A Funds specified in the Guidelines regarding the use of assigned Proposition A Local Return funds. IN WITNESS WHEREOF, the parties hereto have caused this Assignment Agreement to be executed by their respective officers, duly authorized, on the day and year written above. CITY OF LA VERNE UZ Martin R Lomeli, City Manager ATTEST: N. Kathleen Hamm, City Clerk APPROVED AS TO FORM: Robert Kress, City Attorney CITY OF SANTA CLARTfA m George Caravalho, City Manager. ATTEST: Sharon L. Dawson, CMC; City Clerk APPROVED AS TO FORM: Carl Newton, City Attorney