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HomeMy WebLinkAbout4.03 Purchase Funds from San Luis Obispo 00-5o CITY OF DUBLIN AGENDA STATEMENT City Council Meeting Date: May 23, 1988 SUBJECT: Purchase of FAU Funds from City of San Luis Obispo EXHIBITS ATTACHED: 1) Resolution approving Agreement for Exchange of City of San Luis Obispo Federal Aid Urban Funds for City of Dublin General Funds. 2) Draft Agreement with City of San Luis Obispo. RECOMMENDATION: dopt resolution approving Agreement with the City of San Luis Obispo and authorizing Mayor to execute same. FINANCIAL STATEMENT: The City of Dublin will pay a total of $322,500 to the City of San Luis Obispo in exchange for $430,000 in FAU funds. This represents a savings to the City of Dublin of $107,500. DESCRIPTION: Under this agreement, Dublin would pay a total of $322,500 to the City of San Luis Obispo for $430,000 of FAU funds. The City Council of San Luis Obispo has agreed to accept this agreement which provides for payment of 75 cents for each dollar of FAU funds purchased. This will provide a savings of $107,500 to the City's General Fund. FAU funds must be used on designated streets, and they are administered by the State of California Department of Transportation. Some cities have difficulty with the use of the funds due to requirements placed on the projects under the Federal and State guidelines. The City of Dublin has been successful in the use of FAU monies, and Staff members are familiar with the design and reporting requirements. FAU funds can only be used for construction and require a local match of 13.56 cents for each FAU dollar used on a project. These funds are planned to be used for the San Ramon Road Phase III project. The monies repaid to San Luis Obispo will come from FAU monies as they are paid to Dublin (after Dublin' s $500,000 Tri-Valley allocation has been received) . The City Council of San Luis Obispo approved the Agreement on Tuesday, May 17, 1988. Once the Agreement has been signed by both cities, a copy (along with Resolutions from both cities) will be forwarded to Caltrans for their review and processing through FHWA. ---------------------------------------------------------------------------- ITEM NO. COPIES TO: Toni Gingg, City of San Luis Obispo RESOLUTION NO. -88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ------------------------------------------- APPROVING AN AGREEMENT FOR THE EXCHANGE OF CITY OF SAN LUIS OBISPO FEDERAL AID URBAN FUNDS FOR CITY OF DUBLIN GENERAL FUNDS WHEREAS, the City of San Luis Obispo has agreed with the City of Dublin to their exchange of Federal Aid Urban (FAU) funds for City of Dublin General Funds; and WHEREAS, the agreed exchange rate is seventy-five cents ($0.75) of General Funds for every one dollar ($1.00) of FAU funds; and WHEREAS, Dublin plans to use these FAU funds for the San Ramon Road Phase III project; and WHEREAS, this exchange of funds will provide a greater amount of Federal funds available for necessary roadway improvements; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Agreement between the City of San Luis Obispo and the City of Dublin for the exchange of FAU funds. BE IT FURTHER RESOLVED that the Mayor shall execute this Agreement and the City Clerk shall forward copies to the appropriate authorities. PASSED, APPROVED, AND ADOPTED this 213rd day of May, 1988. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE CITY OF SAN LUIS OBISPO REGARDING FAU FUNDS THIS AGREEMENT made and entered into this day of 1988, by and between the CITY OF SAN LUIS OBISPO, a Municipal Corporation of the State of California, hereinafter referred to as "SAN LUIS OBISPO" and the CITY OF DUBLIN, a Municipal Corporation of the State of California, hereinafter referred to as "DUBLIN." WITNESSETH: WHEREAS, a procedure has been established, acceptable to Federal and State Departments of Transportation, whereby local agencies may jointly agree to exchange Federal Aid Urban (FAU) apportionments for other funds as jointly agreed upon; and WHEREAS, DUBLIN is presently processing a FAU project known as "San Ramon Road Phase III" ("The Project") ; and WHEREAS, the environmental process for the Project is complete and the project plans and specifications are nearing completion; and WHEREAS, the Project estimate for construction for the Project is $1,465,000, allowing $1,266,346 as eligible for FAU funds and DUBLIN's local allocation is $500,000 which would allow an additional $766,346 to be purchased elsewhere; and WHEREAS, the Project is scheduled to run from the summer of 1988 through spring of 1989; and WHEREAS, it is mutually agreeable between SAN LUIS OBISPO and DUBLIN to transfer general funds apportionments for FAU apportionments to the mutual benefit of both parties hereto; NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, the parties agree as follows: 1. SAN LUIS OBISPO agrees to transfer to DUBLIN, upon execution of this agreement, or as promptly as possible thereafter, the sum of $430,000 from SAN LUIS OBISPO's FAU apportionments. SAN LUIS OBISPO further agrees to spend the $322,500 to be paid to it by DUBLIN, as provided in Paragraph 2, on transportation related uses. 2. DUBLIN agrees to pay to SAN LUIS OBISPO the sum of $322,500 as follows: From FAU monies received through the Federal Government previously assigned to SAN LUIS OBISPO, the CITY OF DUBLIN will pay within 21 days to SAN LUIS OBISPO 75% (seventy-five percent) of those monies as they are actually paid to DUBLIN, provided that DUBLIN will retain the first $500,000 of FAU monies paid to DUBLIN from DUBLIN's local FAU allocation prior to making any payments to SAN LUIS OBISPO. 3. If no monies have been paid to SAN LUIS OBISPO by January 31, 1989, SAN LUIS OBISPO reserves the right to use the $430,000 itself or transfer it to another jurisdiction. 4. It is understood and agreed that this agreement is subject to the written approval of the Secretary of the U.S. Department of Transportation or his designee. IN WITNESS WHEREOF, the parties hereto have executed this Joint Powers Agreement on the day and year first above written. CITY OF SAN LUIS OBISPO, a Municipal Corporation of the State of California By: Mayor ATTEST: City Clerk CITY OF DUBLIN, a Municipal Corporation of the State of California By: Mayor ATTEST: City Clerk