HomeMy WebLinkAbout05/17/1988, C-5 - RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE CITY OF SAN LUIS OBISPO FOR ASSIGNMENT OF FEDERAL AID URBAN (FAU) FUNDS. �IIIhIIIpNI�IIIIIII�� III. MEETING DATA:
Ci"J of San Luis OBISpO May 17, 1988
COUNCIL AGENDA REPORT Imo"' NUMB
FROM:
David F. Romero �� Wayne A. Peterson Prepared by: Thomas P. Gingg
Public Works Director City Engineer ,6 Engineering Field Supervisor
SUBJECT:
Resolution Authorizing the Mayor to Execute the Agreement Between the City
of Dublin and the City of San Luis Obispo for Assignment of Federal Aid
Urban (FAU) Funds.
RECOMMENDATION:
Adopt Resolution Authorizing the Mayor to Execute the Agreement Between the
City of Dublin and the city of San Luis Obispo for Assignment of Federal
Aid Urban (FAU) Funds.
BACKGROUND:
The City receives Federal Aid Urban (FAU) Funds from the State of California
Department of Transportation which can only be used to construct and maintain
streets on the FAU system. The City of San Luis Obispo passed Resolution No.
6018 ( 1986 Series) establishing a policy to exchange unobligated FAU funds
whenever possible. The City passed this resolution in recognition that FAU
projects take much more time than typical city projects and usually cost
significantly more.
The City of San Luis Obispo has $290,000.00 of FAU funds now, and will receive
an additional $140,000.00 in October of 1988. The City of Dublin has offered
to purchase our FAU funds for $0.75 on the $1 .00. The City of San Luis Obispo
has previously sold FAU funds to King City and Santa Clara County Traffic
Authority. The money received by the City in the exchange may be used on any
City street.
FISCAL IMPACT:
This will give the City $322,500.00 which can be used for maintenance or
improvement of any city street.
CONSEQUENCE OF NOT TAKING THE RECOMMENDED ACTION:
The City will have to do a project on a FAU street and hire Caltrans to
administer the project, resulting in significantly higher overhead than
City-administered projects.
Attachments:
1 - Resolutions
2 - Agreement
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by
Cev
RESOLUTION NO. (1988 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO,
AUTHORIZING THE MAYOR TO SIGN AGREEMENT WITH THE CITY OF DUBLIN
FOR ASSIGNMENT OF FEDERAL AID URBAN FUNDS
WHEREAS, the City of San Luis Obispo receives Federal Aid Urban funds,
and
WHEREAS these funds may only be used to construct and maintain streets
on the Federal Aid Urban system, and
WHEREAS the expenditure of these funds is restricted resulting in
significantly higher overhead than expenditure of unrestricted funds on
similar projects, and
WHEREAS the experience of the city is that FAU projects cost in excess
of 257 more than similar non-FAU projects, and
WHEREAS, other municipal corporations are in need of Federal Aid Urban
funds from time to time, and
WHEREAS, the City of San Luis Obispo, being a good neighbor, would
like to help other municipal corporations whenever possible,
NOW, THEREFORE BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1 . The City Administrative Officer and the Director of Public
Works find that the city has Federal Aid Urban funds not identified for
use on a city project. Another municipal corporation has need of FAU
funds. The Mayor has authority to enter into an agreement with the City
of Dublin and sign said agreement on behalf of the City of San Luis
Obispo. The exchange rate of FAU dollars shall be calculated at one FAU
dollar for 75 cents non-FAU money. All dollars received in exchange for
FAU dollars shall be expended on projects eligible for expenditure of
street funds.
C-s-z
Resolution No. (1988 Series)
Page Two.
On motion of seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day
of 1988.
MAYOR
ATTEST:
CITY CLERK
APPROVED:
Qj!LA.d#nistrative Officer
12,
City At ey
Finance Director
Director of Public Yorks
Cit gineer
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by
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G���c�DUB�iy
Ill L�1�1� X11
19 82 CITY OF DUBLIN
l
P.O. Box 2340 DUBLIN. CALIFORNIA 94'5568
CITY OFFICES
6500 DUBLIN BLVD.
April 18, 1988
ADMINISTRATION
829-4600
Mr. Tom Gingg
Cit of San Luis Obispo nr .` ^?U
BUILDING INSPECTION Y P
829-0822 P. 0. Box 8100
San Luis Obispo, CA 93401-0100
CITY COUNCIL Subject: Purchase of FAU Funds
829-4600
Dear Mr. Gingg,
CODE ENFORCEMENT
829.0822 Based on our phone conversations of March 29, 1988, I am
enclosing a draft agreement for the purchase of your Federal Aid Urban
funds of $430,000 at .75 on the dollar ($290,000 now, an additional
ENGINEERING
829-4927 $140,000 in October of 1988).
I recognize that some cities have paid .80 previously;
FINANCE however, if you have had to wait some time for your money, you probably
929-6226 lost the additional .05 due to inflation. Our project will be ready to
go to bid at the same time that we propose to finalize an agreement
PLANNING between our two cities.
829.4916
Please have your Staff review this proposal and let me know
your City's decision as soon as possible. If you have any questions,
POLICE please feel free to call my office. /-
829-0566
Sincerely yoIurs,,
PUBLIC WORKS
829-4927
Lee S. Thompson
RECREATION City Engineer
829.4932
LST/gr
AGREEMENT BETWEEN THE CITY OF DUBLIN
s 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 $430,000
from SAN LUIS OBISPO's FAU apportionments. SAN LUIS OBI$PO 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:
C -5®�
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 758 (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
C -S-�
RESOLUTION NO. 6018 (1986 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY
OF SAN LUIS OBISPO, ESTABLISHING A
POLICY REGARDING FEDERAL AID URBAN
(FAU) FUNDS
WHEREAS, the City of San Luis Obispo receives Federal Aid Urban funds,
and
WHEREAS, these funds may only be used to construct and maintain
streets on the Federal Aid Urban system, and
WHEREAS, the City receives approximately $150,000 per year in FAU
funds, and
WHEREAS, the experience of the City is that FAU projects may cost in
excess of 20% more than similar non-PAU projects.
NOW, THEREFORE BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1.
A. City shall determine its unobligated balance of PAU
apportionments.
B. It shall be the City's policy to exchange unobligated FAU funds
for unencumbered funds whenever possible.
C. Unencumbered funds received by the City shall only be used for
transportation-related purposes.
SECTION 2. The City shall receive the best possible exchange rate for
the unobligated PAU funds.
On motion of Councilwoman Dovey, seconded by Councilman Settle, and on
the following roll call vote:
AYES: Councilmembers Dovey, Settle, Rappa and Mayor Dunin
NOES: None
ABSENT: Councilman Griffin
C + 018
� s
Resolution No. 6018 (1986 Series)
the foregoing Resolution was passed and adopted this st day of
July 1986.
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ATTEST-
CITY
PAMELA VO S
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APPROVED:
122 0 '
City Administrative Officer
City Atrney
Public Works Director
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