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HomeMy WebLinkAboutItem 4.5 Purchase FAU Funds City of Foster City (2) boo-40 CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 9, 1985 SUBJECT: Purchase of FAU Funds from City of Foster City EXHIBITS ATTACHED: 1 ) Resolution approving a Joint Powers Agreement for the Exchange of City of Foster City Federal Aid Urban Funds for City of Dublin General Funds . 2 ) Agenda Statement from City Council Meeting of November 25 , 1985 regarding FAU Funds . 3 ) Draft Joint Powers Agreement with the City of Foster City. RECOMMENDATION: Adopt resolution approving Joint Powers Agreement with the City of Foster City. FINANCIAL STATEMENT: The City of Dublin will pay a total of $450 , 000 . 00 to the City of Foster City in exchange for $600 , 000 . 00 in FAU funds . This will represent a savings to the City of Dublin 'of $150 , 000 . 00 . DESCRIPTION: On November 25 , 1985 , the City Council authorized the City Engineer to negotiate for the purchase of FAU funds from the City of Foster City. Foster ,City has agreed to accept $ . 75 for each dollar of FAU funds . A formal agreement between the two cities is now necessary to initiate the transaction. Foster City Staff is also placing this item on their City Council Agenda for approval . Under this agreement , Dublin will pay a total of $450 , 000 . 00 for $600 , 000 . 00 of FAU funds . This will provide a savings of $150 , 000 . 00 to Dublin ' s General Fund. FAU funds must be used on designated streets , and they are administered by the State Department of Transportation . Some cities have difficulty with the use of the funds due to requirements placed on the projects . 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 . 8 cents for each FAU dollar used on a project . These funds are planned to be used for the following projects : 1 ) San Ramon Road, Phase II 2 ) Amador Valley Blvd. median reconstruction and landscaping. Staff recommends that the City Council adopt the Resolution approving the Joint Powers Agreement . ---------------------------------------------------------------------- ITEM NO. COPIES TO: RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN -------------------------------------- APPROVING A JOINT POWERS AGREEMENT FOR THE EXCHANGE OF CITY OF FOSTER CITY FEDERAL AID URBAN FUNDS FOR DUBLIN GENERAL FUNDS WHEREAS, the City of Foster City 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 Phase II project on San Ramon Road and on the Amador Valley Blvd. median reconstruction landscaping; 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 Joint Powers Agreement between the City of Foster City and the City of Dublin for the exchange of FAU funds . BE IT FURTHER RESOLVED that the Mayor shall execute the Agreement and the City Clerk shall forward copies to the appr.opriate authorities . PASSED, APPROVED, AND ADOPTED this day of , 1985 . AYES: NOES: ABSENT: Mayor ATTEST: City Clerk AGENDA STATEMENT City Council Meeting Date: November 25 , 1985 SUBJECT: Purchase of FAU funds from the City of Foster City. EXHIBITS ATTACHED: None. RECOMMENDATION: Authorize Staff to negotiate with the Staff of the City of Foster City for purchase of $600 , 000 of FAU monies at . 75 on the dollar and to return to Council with a draft resolution for review and approval . FINANCIAL STATEMENT: The City of Dublin would pay $450 , 000 for $600 , 000 in FAU monies for a net gain to the City of Dublin of $150 , 000 . DESCRIPTION: Staff has been pursuing additional FAU funds to help finance projects within Dublin that are eligible for FAU funds . The Public Works Director of Foster City has expressed a desire to sell his FAU funds to the City of Dublin and is going to his Council for approval of this procedure . The City of Dublin will pay to the City of Foster City FAU monies after they have been received from the State. The projects on which the City would use these monies would be San Ramon Road, Phase II, and Amador Valley Blvd. median reconstruction and landscaping. In order to fully utilize the monies, it may be necessary to combine the median work and . landscape work on Amador Valley Blvd. as one project . ----------------------------------------------------------------- ITEM NO. COPIES TO: JOINT POWERS AGREEMENT THIS AGREEMENT made and entered into this day of , 198_, by and between the CITY OF FOSTER CITY, a Municipal Corporation of the State of California, hereinafter referred to as "FOSTER CITY" 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, it is mutually agreeable between FOSTER CITY 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. FOSTER CITY agrees to transfer to DUBLIN, upon execution of this agreement, or as promptly as possible thereafter, the sum of $600,000 from FOSTER CITY'S FAU apportionments. FOSTER CITY further agrees to spend $450,000 from the herein reimbursement on transportation related uses. 2. DUBLIN agrees to pay to FOSTER CITY the sum of $450,000 as follows: From FAU monies received through the Federal Government previously assigned to FOSTER CITY, the CITY OF DUBLIN will pay within 21 days to FOSTER CITY 75% (seventy-five percent) of those monies as they are actually paid to DUBLIN. The FAU projects which DUBLIN is presently processing are as follows: a) San Ramon Road Phase II -- Plans are complete and the environmental process is nearing completion. b) Amador Valley Blvd. improvement and landscape project -- Plans are underway and the project has been approved environmentally as a catagorical exclusion by CalTrans and FHWA. These projects are scheduled to run from early Spring through early Fall of 1986. If no monies have been paid to FOSTER CITY by May 31, 1986, FOSTER CITY reserves the right to use the $600,000 itself or transfer it to another jurisdiction. 3. It is understood and agreed that this agreement is subject to the 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 FOSTER CITY, 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