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HomeMy WebLinkAboutStaff Report 08/01/2011 3.D d8 5e. DATE: August 1, 2011 TO: Honorable Mayor: and Members of the City Council through City Manager FROM: Larry Zimmer, Capital Improvements Division Manager SUBJECT: Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Cooperative Funding Agreement M2004 (Measure M) between the Sonoma County Transportation Authority (SCTA) and the City of Petaluma. RECOMMENDATION It is recommended that the City Council adopt the attached resolution authorizing the City Manager to execute Amendment No. 1 to the Cooperative Funding Agreement M2004 between the Sonoma County Transportation Authority (SCTA) and the City of Petaluma which covers use of Measure M funds for local road maintenance projects. BACKGROUND SCTA and the City of Petaluma entered into a Cooperative Funding Agreement to define the framework to enable two parties to work cooperatively in allocating funding for local road maintenance and related eligible work as described in the Measure M Strategic Plan. Recently, SCTA has proposed to change the method of disbursement of the Measure M Local Streets Rehabilitation (LSR) Program allocation to quarterly rather than annually. DISCUSSION The change . to quarterly reimbursements will better accommodate fl'uctuations in sales tax revenue and provide a more consistent cash flow to the City. If the amendment is not approved, the Measure M LSR Program will continue to be disbursed annually. FINANCIAL IMPACTS The Measure M LSR program is allocated by a: percentage calculated using the agencies' population and lane miles. , Petaluma's percentage of the estimated Measure M sales tax revenue, allocated to LSR, is approximately $300,000 in FY 11112. Changing disbursements from annual to quarterly will not change the amount the City receives. Agenda Review: City Attorney Finance Director City Manager ATTACHMENTS 1. Resolution 2. Amendment No 1 to the cooperative funding agreement M2004 (Measure M) between the SCTA and City of Petaluma. • 2 ATTACHMENT 1 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE COOPERATIVE AGREEMENT NO. M2004 (MEASURE ` ;M).BETWEEN THE SONOMA COUNTY TRANSPORTATION AUTHORITY (SCTA) AND THE CTI'Y OF PETALUMA WHEREAS, SCTA and the City of Petaluma previously entered into a cooperative funding agreement to define the framework to enable two parties to work cooperatively in allocating funding for local road maintenance and related eligible work as described in the Measure M Strategic Plan; and WHEREAS, SCTA has proposed to change the method of disbursement of the Measure M Local Streets Rehabilitation (LSR) Program allocation to quarterly rather than annually. WHEREAS, it, is advantageous to the City to receive more frequent and consistent cash flow; and NOW THEREFORE, BE IT RESOLVED, that the Petaluma City Council authorizes the City Manager to execute Amendment. No. 1 to the Measure M Cooperative Funding Agreement M2004 between the City of Petaluma and Sonoma County Transportation Authority. 1675625.1 3 ATTACHMENT 2 AMENDMENT NUMBER 1 TO COOPERATIVE FU NDING AGREEMENT NO. M20004 ('MEASURE NI) BETWEEN THE SONOMA COUNTY TRANSPORTATION AUTHORITY AND CITY OF PETALUMA This Amendment No. 1 to the Agreement is made and entered into as of 2011 ( "Effective Date ") by and 'between the City of Petaluma, herein referred to as "CITY" and the Sonoma County Transportation, A. uthority, herein referred to as "AUTHORITY." • RECITALS 1. AUTHORITY and CITY entered l into a Cooperative Funding Agreement No. M20004 to define a framework to enable the two parties to work cooperatively in allocating funding for local road maintenance, Intelligent Transportation System implementation and related eligible work as described in the Strategic Plan. 2. Cooperative Agreement No. M2'0004 specifiedthat AUTHOR ITY shall distribute funds for Local Maintenance Projects on an annual basis. 3. In order to better accommodate fluctuations in sales tax revenue and provide a more consistent cash flow to the CITY, AUTHORITY recommended and authorized Cooperative Funding Agreement No. M20004 be amended to provide quarterly distributions of such funding. In consideration of the recitals set forth and the covenants contained herein, CITY and AUTHORITY mutually agree as follows: 1. SECTION II, Article 1 is hereby replaced in its entirety with the following: • Allocation of Funding. Consistent with its Strategic Plan, to make available Measure ..M,funds to CITY for such Local Maintenance Projects (also referred to as Local Street Rehabilitation or "LSR ") based. on the formula set forth in Measure M. AUTHORITY shall distribute such funds to CITY on a quarterly basis. 2. Except to the extent the Agreement is specifically amended or supplemented hereby, Cooperative Agreement M200,04 shall continue to be in full force and effect as originally executed, and nothing contained herein shall be construed to modify, invalidate or otherwise affect any other provision of the Agreement or any right of AUTHORITY or CITY arising. there under. 4 3. CITY warrants the person affixing his or her signature hereto is authorized to execute this .agreement: on behalf of CITY. AUTHORITY AND CITY HAVE CAREFULLY READ AND REVIEWED THIS AMENDMENT AND EACH TERM AND PROVISION CONTAINED HEREIN AND, BY EXEUTION OF THIS AMENDMENT, SHOW THEIR INFORMED AND VOLUNTARY CONSENT TIIERETO. IN WITNESS WHEREOF, the, parties hereto have executed this Amendment Number 1 to Measure M Agreement No.M20004 as set forth below. City of Petaluma Sonoma County of Transportation Authority By: City Manager Chair ATTEST: APPROVE AS TO FORM .,, By: City Clerk By: Authority Counsel APPROVED AS TO FORM City Attorney APPROVED: Department Director APPROVED: Risk Manager APPROVED: Finance Director 5 •