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HomeMy WebLinkAboutCC AG PKT 2007-11-05 #J e e e AGENDA REPORT DATE: November 13,2007 TO: Honorable Mayor and City Council THRU: David N. Carmany, City Manager FROM: Vince Mastrosimone, Director of Public Works SUBJECT: :County of Orange Proposition 42 - City Aid Program (CAP) SUMMARY OF REQUEST: This is a request for the City Council to approve the Proposition 42 City Aid Program Agreement with the County of Orange; and, approve Resolution No. 5626 allocating the additional funding for the FY 08/09 Local Paving Program. BACKGROUND: On July 31, 2007, the Orange County Board of Supervisors passed a Resolution to allow the sharing of the County's Proposition 42 (Prop 42) funds and approve the County's Prop 42 City Aid Program. The county's Prop 42 CAP is to provide Orange County cities with additional funds for roadway improvements that can benefit motorists throughout the County. To administer the CAP, the County will enter into an agreement with each City desirous of receiving City aid funds. An Agreement will be required each year and approved by the Board of Supervisors prior to the distribution of the County's Prop 42 funds. The Agreement stipulates that each city ensures their proposed projects are n conformance with program guidelines. The Agreement also will include indemnification language requiring each City to agree to reimburse the County if 1) the City Aid Program should be found incompatible with State legislative requirement; 2) should any city project be determined ineligible for Prop 42 monies through State audit; or 3) any city does not expend all of its CAP allocation. The City of Seal Beach allocation forFY 08/09 CAP funds is $87,121. These funds are over and above the Prop 42 funds the City receives directly from the State. These CAP funds are not included in the approved City of Seal Beach FY 08/09 budget. It is proposed that these funds be added to the $350,000 budgeted in FY 08/09 for the Local Paving Program. FISCAL IMPACT: This action will have no general fund impact. It will enhance available funding for local road improvements. Agenda Item J RECOMMENDATION: It is respectfully recommended that the City Council approve the Proposition 42 City Aid Program Agreement with the County of Orange; and, approve Resolution allocating the additional funding for the FY 08/09 Local Paving Program Vince Mastro&", one Director of Pulilic Works NOTED AND APPROVED: e. 'I" ~ - David Carmany, City Manager e e e 4. $ 1 CiS ~ 0 '$ ~ t. ~ ~ d ~ )-' "t.. 1 1 ~ ... ~ '$ \>0< ., ~ ~ .t! ~ , ~ 0 . ~ ~ 1 ~ t,) . ~ l;h ~ .0 .":1 ';j, 4;~ ~ c~ ('l'~ ~~ .~ '\;1 o % '" P-< -a, \- ~, \,.- ~ \ $ "" ~ , \ 1ft ...... ~ ~ \ g. t'"" t'"" ~ ~ .;.; '" '0 ~ 8 1 l~ 1 \ ~ t-' ....p.. 19 ;a~ \, '1$ 1~\ e:.. \ o\~ ~ .... '%... \ p \\I ~~ 'l", ! \ ~ ~. 'l .. ... .. ~ g e:.. ~ l t,) \ ,~ ~ 8 ~ \ \ ! ~ p.. ~ ! P-< i i ('l (<'I .~ .... i .~ "a ~ ~ i ~\ ~ t,) ~ ~ \ 1 '" <. 'G o l ~\ 0'" ~\ .tjS "6.0 "'a 1 ,~-o i>>gg ~ e:.. ('l jSl\ \g"6 00. ,~ ~ o:a 00 Q~" o p,~ ~'.J8 \>0< "'a '7'. ",.,F-< .ael :at~ ~p..~ '6"aP-< :a ~., ~ .o',a '.< a ~ll 00 ..... '" i ~ 'A ..... ~ ~ \1"\ l p.. ~ ~ \ ., $ ~'? B ~ \ 9 ..... P-< ~ ~ 1 ~ ~ 8 ~ 0 ~ ....\-'()\i=l .. .. " RESOLUTION NUMBER 5626 e A RESOLUTION OF THE CITY COUNcn. OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING BUDGET AMENDMENT, NO. 09-01 FOR FISCAL YEAR 2008109 TO INCREASE THE CONTRACT PROFESSIONAL SERVICES IN THE CAPITAL PROJECTS FUND (LOCAL PAVING PROGRAM) WHEREAS, the Orange COImty Board of Supervison adopted Resolution No. 07-109, allowing for the sharing of the County's Proposition 42 funds, and; WHEREAS, the Orange County Board of Supervisors approved an Allocation of $10,000,000 for the City Aid Program for Fiscal Year 08109, and; WHEREAS, the Orange County Board of Supervisors has designated $S7,121 as the City of Seal Beach share of these City Aid Program funds, and; WHEREAS, the City of Seal Beach has suhmitted the required documentation to the County of Orange to claim said funding. THE CITY COUNCil. OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The FY 08109 hudget is hereby amended to add $87,121 to the Local Paving Program budget: REVISEDI ADOPTED PROPOSED BUDGET (cliff) DEFT ACCOUNT BUDGET BUDGET AMENDMENT Agency Revenue 079-000-37033 $ 380,000 $ 467,121 $87,121 Transfer Out 079-888-47000 $ 350,000 $ 437,121 $87,121 e Transfer In 045-000-31500 $1,565,000 $1,652,121 $87,121 Conlract Prof Svc 045-333-44000 $1,725,000 $1,812,121 $87,121 PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a regular meeting held on the 5th day of November, 2007 by the following vote: A YES; COUNCll.MEMBERS NOES: COUNCll.MEMBERS ABSENT: COUNCll.MEMBERS ABSTAIN: COUNCll.MEMBERS Mayor A'ITEST: City Clerk STATEOFCAUFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } e !, Linda Devine, City Clerk for the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5626 on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach at a regular meeting held on the ~ day of November. 2007. City Clerk e PROPOSITION 42 CITY AID PROGRAM AGREEMENT This CITY AID PROGRAM AGREEMENT, Agreement No. ("Agreement") is made and entered into this day of , 200_, by and between the County of Orange, California, a political subdivision of the State of California ("County"), and the City of Seal Beach, a municipal corporation in the State of California ("City"). The County and City shall sometimes be referred to separately as a "Party" and collectively as the "Parties." RECITALS , A. The California State Legislature has determined that the improvement and maintenance of all city streets is of general County interest. Likewise, the County believes that it is of general County interest to extend aid to the cities within the County for the general improvement and maintenance of City streets. e B. The County desires to assist Orange County cities with the improvement and maintenance of city streets and to help improve regional transportation needs within the County. Pursuant to California Constitution Article XIX B ~ 1 and Revenue Taxation Code ~ 7104, the County receives State Proposition 42 (Prop. 42) allocations from the State's Transportation Investment Fund (TIF) and Traffic Congestion Relief Fund (TCRF) for the purposes of street and highway maintenance, rehabilitation, reconstruction and storm damage repair, which are required to be deposited in the County's Road Fund. C. Orange County cities have streets in need of routine roadway maintenance, minor roadway widening (non-capacity enhancing) and storm drain improvements, but have limited funds to address these needs. D. With authorization from the State, the County has established its Prop. 42 City Aid Program (CAP) whereby the County will provide a portion of the County's Prop. 42 funds to the cities for the purposes of routine roadway maintenance, minor roadway widening (noncapacity enhancing) and storm drain improvements within the cities. Such purposes are to be in accordance with any and all laws, rules, regulations, and guidelines governing Prop. 42 allocations ("Prop. 42 Requirements"). E. The City owns and operates streets in need of routine roadway maintenance, minor roadway widening (non capacity enhancing) and storm drain improvements, and acknowledges that it has limited funds by which to address these needs. Therefore, the City is in support of receiving a portion of the County's Prop. 42 allocation funds through CAP. e F. Pursuant to Streets & Highways Code section 1686, the Board of Supervisors has passed Resolution No. 07-109, adopted by a four-fifths vote of its members, finding that the Purposes under this Agreement are of general County interest and that County aid shall be extended therefore. This resolution provides for the basis and conditions upon which allocations will be made from the County Road Fund for expenditures upon City streets, bridges and culverts in cities within the County. e G. The County's City Aid Program (CAP) provides the guidelines for CAP, and is incorporated by reference and made a part of this Agreement. SECTION I IT IS MUTUALLY UNDERSTOOD BY THE PARTIES THAT: County shaJl: A. Prior to the beginning of fiscal year (FY) 2008-09, calculate the amount of the County's Prop. 42 allocation funds that will be distributed to each of the cities through CAP based on a population-weighted distribution. Annual population information published by Demographic Research Unit of the California Department of Finance will be used to calculate the City CAP allocations. CAP allocations received from the County are in addition to the normal and regular Prop. 42 allocations that the City receives from the State and should follow the appropriate procedures for the expenditures of these funds. B. Send a "Notification of Available City Aid Program Funds" and a "Request for Funds" letter to each city before the start of the fiscal year. The letter will include an attachment with a list of all cities in the County, each city's population as of January of that year, and a calculation of each city's proposed share under CAP, assuming participation in the program by all cities. The letter will request each city to respond to whether it wants to participate in the program for the upcoming fiscal year. If the City chooses to participate, the City will be asked to submit a list of City projects for that fiscal year with certain project information (See CAP). The County's letter will also include a deadline for the City to respond if it is going to participate in the program. e C. Send a final letter to all cities with a final "Notification of Available City Aid Program Funds" based on the number of cities that elect to participate in the program. The second letter will also include a final ''Request for Funds". D. Review City's list of projects and advise City of any projects that appear ineligible for CAP participation based on the project description. The City will be responsible for certifying all of the projects it submits for eligibility in CAP. The County's review of the City's list of projects is a courtesy review only, and does not constitute approval of eligibility for any project. E. Distribute city aid allocation(s) to cities after receiving invoice along with proof of award documentation from the City for its project. Each City project will require invoice and proof of award documentation. The allocation will be based on City's invoice amount, which can include design, construction and construction administration costs. County will not begin disbursing allocations until County has received its first Prop. 42 allocation from the State for fiscal year 08/09. After County has received its e e first Prop. 42 allocation County will disburse an allocation to the City upon receipt of award documents. County CAP allocations are entirely subject to Prop. 42 allocations from the State including any delays or changes in State law, rules, regulations, and guidelines. F. Coordinate with Cities on CAP projects. County's Director of Public Works or designee can authorize the substitution of project(s) listed on Exhibit A to maximize full expenditure of the City's CAP allocation(s). The City must make this request in writing, and the proposed new project(s) shall be eligible for Prop. 42 funds and shall not exceed the Board approved City CAP allocation(s). G. Make every effort to expend any CAP funds returned to the County by the City if City returns funds in a timely manner. However, funds cannot be expended by the County, they shall be returned to the State. H. Review Annual City Aid expenditure certification submitted by City (City's submittal will be no later than August 31 of each year). This certification is a list of projects and a statement that each project meets Prop. 42 requirements and is in compliance with the purposes of CAP (See CAP for sample of certification). City is responsible for ensuring that all projects meet CAP and Prop. 42 eligibility requirements and have expended such funds in the appropriate fiscal year. e I. Conduct a City expenditure assessment in January of each year to verify if City is expending its CAP funds in the timeframe contemplated under this Agreement. SECTION II City shall: A. Maintain its existing "Maintenance of Effort" (MOE) of local funds for street and highway, maintenance, rehabilitation, reconstruction, and storm damage repair. The City must annually expend from its general fund for street, road, and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 1996-97, 1997-98, and 1998-99 fiscal years, as reported to the controller pursuant to the Streets & Highways Code Section 2151, in order to participate in the County Proposition 42 City Aid Program. B. After receiving the County's "Call-for-Projects" letter, notify the County in writing whether the City is choosing to participate in CAP. City shall follow up its participation letter in fifteen (15) calendar days with a list of the City's proposed CAP projects using the project list sample in CAP. e C. After reviewing City's project list, advise City of any projects that appear ineligible based on the project description. The City will be responsible for certifying all of tJi'e projects it submits for eligibility in CAP. The County's review of the City's list of projects is a courtesy review only, and does not constitute County approval of eligibility or State approval under Prop. 42 requirements. e D. Provide County with invoice, along with proof of award documentation, for its project(s) in order to receive CAP funds. Each City project will require invoice and proof of award documentation. CAP allocation will be based on the contract award amount. County will not begin disbursing allocations until County has received its first Prop. 42 allocation from the State for fiscal year 08/09. After County has received its first Prop. 42 allocation, County will disburse a CAP allocation to the City upon receipt of invoice and award documents. County's CAP allocations are subject to receiving Prop. 42 allocations from the State. - E. After receiving CAP funds from the County, advise the County, no later than two (2) months before the end of the expenditure cycle of each year, of any CAP funds that the City determines will not be expended within the time requirements of CAP. Any such CAP funds the City will be unable to expend by the deadline shall be returned to the County a minimum of thirty (30) calendar days prior to the end of the respective expenditure cycle. The County will attempt to reallocate these funds to other County projects that will expend the funds within the time requirements. However if the County is unable to expend or reallocate these funds, they will be returned to the State. F. Expend CAP funds no later than the end of the fiscal year following the fiscal year in which the aUocation was received from the County. Any funds not expended by this deadline shall be returned to the County in a timely manner but no later than 60 days after the end of the fiscal year following the fiscal year in which the allocation was received. e G. Prepare and submit to County annually, no later than August 31 of each year, CAP expenditure certification for aU project(s) completed that corresponding fiscal year. This certification is a list of projects and a statement that each project meets Prop. 42 requirements and is in compliance with the purposes of CAP (See CAP for sample of certification). H. In the event of an audit by the State, provide State all project and finance documentation as required within the timeframe specified by the State. City shall attend all audits involving its CAP projects as required by State. If the State finds that any City expenditure is ineligible or out of compliance with Prop. 42 requirements, that expenditure shall be reimbursed to the County, which will be returned to the State. The City shall reimburse the County no later than 60 calendar days, if State determines CAP expenditures are ineligible. SECTION ill Miscellaneous Provisions: . A. Availabilitv of Funds County will recalculate the $lOM total CAP allocation to the cities if the County's total Prop. 42 allocation falls 10% or more below the e e anticipated $19M yearly allocation. The adjustment down of the $lOM City allocations will be in the same ratio as the County's allocation is adjusted down from the anticipated $19M. There will be no adjustment if the County's Prop. 42 allocation exceeds $19M. B. Failure to Submit List of Proiects If City does not submit a list of its CAP projects by the required deadline, City will be ineligible to participate in the program that fiscal year. City can re-establish its eligibility for the following fiscal year by submitting the required documents on time. C. Proiect Documentation Cities shall promptly provide County and/or State, upon reque~t, all project and finance documentation. e D. Indemnification City shall indemnify, defend with counsel approved in writing, save and hold County and each of its elected officials, officers, directors, agents and employees harmless from any and all claims, injuries, liabilities, actions, damages, losses or expenses of every type and description to which they may be subjected arising out of any act or omission of, its employees, representatives, agents and independent contractors in connection with the implementation of the actions described in this agreement. City shall return CAP funds to the County (or State as appropriate) within the timeframe contemplated under this Agreement should 1) City fail to expend all of its CAP allocation within the specified timeframe; 2) the State deem any City expenditure to be ineligible; or 3) the City Aid Program be found to be incompatible with State requirements. E. Assilmment TIlls Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties. No assignment of City's interest in this Agreement shall be made without the written consent of the County. Furthermore, City agrees that CAP allocations shall not be expended on, given to, shared with, or otherwise provided to any other city, local agency or other entity that is not contemplated under this Agreement. F. Entiretv & Amendments This Agreement contains the entire agreement between the Parties with respect to the matters provided for herein. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the Parties; no oral understanding or agreement not incorporated herein shall be binding on either of the Parties; and no exceptions, alternatives, substitutes or revisions are valid or binding on County unless authorized by County in writing. G. Severabilitv If any part of this Agreement is held, determined, or adjudicated to be illegal, void, or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. e H. Calendar Davs Any reference to the word "day" or "days" herein means calendar day or calendar days, respectively unless otherwise expressly provided. I. Notices Notices or other communications which may be required or provided under the terms of this AGREEMENT shall be given as follows: e City: City Manager City of Seal Beach 211 8th Street Seal Beach CA 90740 Phone: 562431-2527 Facsimile: 562 493-9857 And County: Director of Public Works, RDMD County of Orange PO Box 4048 Santa Ana, CA 92702-4048 Phone 714-834-4377 Facsimile 714-834-2496 All notices shall be in writing and deemed effective when delivered in person or deposited in the United States mail, first class, postage prepaid and addressed as above. Notwithstanding the above, the Parties may also provide notices by facsimile transmittal, and any such notice so given shall be deemed to have been given upon receipt during normal business hours or, in the event of receipt after business, on the following business day. Any notices, correspondence, reports and/or statements authorized or required by this Agreement, addressed in any other fashion shall be deemed not given. e J. Termination County rnay terminate this Agreement for any reason provided that the City has not awarded any project on which its CAP allocation will be expended. After the City has awarded a project on which its CAP allocation will be expended, County may terminate this Agreement if the City is in breach of this Agreement. Any such termination shall be accomplished by delivery to City a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which CAP funding is terminated, and the date upon which the termination is effective. No termination shall become effective if, within thirty (30) days after receipt of a Notice of Termination, City either cures the default involved or, if not reasonably susceptible of cure within said thirty (30) day period, City proceeds thereafte~ to complete the cure in a manner and time line acceptable to County. During this period before the effective termination date, City and County shall meet to attempt to resolve any dispute. In the event of termination, County may proceed with the project work in a manner deemed proper by County. : K. Breach The failure of the City to comply with any of the terms and conditions of this Agreement shall be a material breach of this Agreement. In such event the County may: e e 1. Afford the City a written Notice of Breach and Notice of Termination providing for thirty (30) days within which to cure the breach, in accordance with Section illJ (Termination); 2. Discontinue all CAP allocations during the period in which the City is in breach; and 3. Offset CAP allocations against any invoices billed by the City. IN WITNESS WHEREOF, City has caused this Agreement to be executed by its Mayor and attested by its Clerk, and County has caused this Agreement to be executed by the Chairman 9f the Board of Supervisors and attested by its Clerk on the dates written opposite their signatures, all thereunto duly authorized by the City Council and the Board of Supervisors, respecti vely. City of Seal Beach a municipal corporation Date: By: Mayor ATTEST: APPROVED AS TO FORM: e By: City Clerk City Attorney County of Orange, a political subdivision of the State of California Date: By: SIGNED AND CERTIFIED THAT A COPY OF TInS DOCUMENT HAS BEEN DEUVERED TO THE CHAIRMAN OF THE BOARD APPROVED AS TO FORM: COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA By: By: Darlene J. Bloom Clerk of the Board of Supervisors of Orange County, Califomia Deputy e