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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 tpg3/fau-sr 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 tpg-3/fau-sr by c-s-3 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. �s TNN ATTEST- CITY PAMELA VO S » s » » » » s s s s APPROVED: 122 0 ' City Administrative Officer City Atrney Public Works Director dfrfau/dfr#3 C 5-�