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HomeMy WebLinkAboutStaff Report 3063 City of Palo Alto (ID # 3063) City Council Staff Report Report Type: Consent Calendar Meeting Date: 9/4/2012 Summary Title: Adoption of Funding Agreement for 2010 Measure B Vehicle Registration Fee Title: Approval of Funding Agreement with the Santa Clara Valley Transportation Authority for 2010 Measure B Vehicle Registration Fee Local Road Improvement and Repair Program From: City Manager Lead Department: Planning and Community Environment Recommendation Staff recommends that Council approve the Fund Transfer Agreement (Attachment A) between the City of Palo Alto and the Santa Clara Valley Transportation Authority (VTA) for use of the 2010 Santa Clara Measure B Vehicle Registration Fee (VRF) Local Road Improvement and Repair Program funds. Background Senate Bill 83 (Hancock) was signed into law in 2009, authorizing countywide transportation agencies such as VTA to implement vehicle registration fee programs of up to $10 per motor vehicle registered within each county for the support of transportation programs and projects consistent with the Metropolitan Transportation Commission’s Regional Transportation Plan (RTP). Within Santa Clara County, the Valley Transportation Authority (VTA) prepares the Valley Transportation Plan (VTP) and projects and supported by the Vehicle Registration Fee (VRF) program must be consistent with the VTP. On June 3, 2010, the VTA Board adopted a resolution placing the 2010 Santa Clara Measure B VRF program before Santa Clara County voters in November 2010. Voters approved the measure by majority vote that year authorizing a $10 increase in the annual fees of motor vehicle registration for transportation-related projects and programs. The California Department of Motor Vehicles (DMV) began collecting the fee in April 2011. The initial distribution of VRF revenues from VTA local member agencies is scheduled to occur in September 2012 for fees collected through June 2012, slightly more than one year’s worth of revenues. The VTA Board of Directors adopted administrative procedures related to the VRF and an expenditure plan allocating the proceeds from the VRF funds directly back to cities within the county, along with the establishment of competitive programs. Based on these procedures, the VRF funds will be distributed as follows:  80% of the VRF funds are dedicated to the Local Road Improvement and Repair Program, in which the revenue is returned directly to local jurisdictions based on each city/town’s population and the County of Santa Clara’s road and expressway lane mileage; The City of Palo Alto will be eligible for an allocation of approximately $350,000 per year; this first year’s disbursement is $365,751 because the revenue collection period exceeds one year. These funds are on-going with no sunset date.  15% of the VRF funds are dedicated to the Countywide Program, in which the revenue is made available for Intelligent Transportation System (ITS) projects every three years. The first round of competitive funding was just released by the VTA in August 2012; the City plans to submit proposals for local ITS projects along University Avenue including traffic signal controller and cabinet replacements and pedestrian facilities.  Up to 5% of the VRF revenue is reserved for VTA for Program Administration with unused funds disbursed through the Countywide Program. Discussion Local Road Improvement and Repair Program: VTA proposes to issue the initial 2012 VRF - Local Road Improvement and Repair program fund disbursement, in September 2012. The current VRF guaranteed fund for the Local Road Improvement and Repair Program for Santa Clara County is $11,211,888. Palo Alto’s total guaranteed amount is $365,751 for the first disbursement. These funds may be used for pavement rehabilitation and reconstruction, traffic control signals, curb and gutter rehabilitation and reconstruction, roadway related facilities to improve safety, automobile related environmental mitigation, including roadway sweeping and litter control. Cities may also bank their funds to provide for a larger project. This is the approach that staff is recommending for use of the 2012 VRF funds in Palo Alto. Staff will subsequently recommend that the first two disbursements be reserved to offset the total project cost of the California Avenue – Transit Hub Corridor Streetscape Project. Each July, VTA staff will review and update the actual return-to-source funding based on data from the State of California and population data. Funds will be distributed to agencies each summer and if funds are banked in that year, interest realized from the banking of the funds remains with the City as well. The City is required to use the funds and interests earned on the funds only for eligible categories of projects approved by Measure B. The attached funding agreement governs the transfer of VRF - Local Road Improvement and Repair Program funds to the City of Palo. This agreement would be in effect for as long as VTA continues to make disbursement of funds as approved by the voters of Santa Clara County. If grants are received through the competitive ITS program, additional agreements may be required. This VRF – Local Road Improvement and Repair Program agreement reflects the requirement that Palo Alto must certify that it will make a Good Faith Effort (GFE) to maintain a level of expenditures on VRF eligible activities equivalent to the previous maintenance activities. Specifically, VRF funds cannot be used to replace existing maintenance programs, the VRF program is intended to supplement and enhanced existing programs. Each VTA member agency will be required to submit an annual report of how the funds were used and to document previous year maintenance expenditures. 2011 will serve as the base year for previous maintenance expenses. Every five years the base line year may be re-evaluated to demonstrate how the program continues to enhance local maintenance activities for future program audits. Requirements for the annual report will be made available by the VTA later this fall. Resource Impact No local match is required for the VRF Local Road Improvement and Repair Program. These grant funds are not expenditure reimbursed, the VTA will issue first fund disbursement following receipt of the signed funding agreement. Staff expects to bank this first disbursement as allowed by the program so that two years of revenues can be collected for use towards funding of the California Avenue – Transit Hub Corridor Streetscape project. Staff will report annually to the Council projects recommended for funding through the VRF Local Road Improvement and Repair Program. Policy Implications The recommended actions in this report are required in order for City of Palo Alto to receive funds from VTA in an amount of approximately $350,000 annually. The City of Palo Alto will receive $365,751 as part of this initial 2012 VRF Local Road Improvement and Repair program disbursement because the initial revenue collection period exceeds one year. These funds are on-going with no sunset date. Environmental Review The City is entitled to its share of the Measure B funds and approving a contract to receive those funds is not a project subject to environmental review. However, potential environmental impacts of specific projects on which these funds will be spent will be analyzed on a project-by- project basis, as those projects arise. Attachments:  Attachment A: Vehicle Registration Fee Funding Agreement with VTA (PDF) Prepared By: Ruchika Aggarwal, Department Head: Curtis Williams, Director City Manager Approval: ____________________________________ James Keene, City Manager FUNDING AGREEMENT BETWEEN CITY OF PALO ALTO AND THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FOR 2010 MEASURE B VEHICLE REGISTRATION FEE LOCAL ROAD IMPROVEMENT AND REPAIR PROGRAM THIS AGREEMENT is between the CITY OF PALO ALTO, a “Member Agency”, referred to herein as "RECIPIENT", and the SANTA CLARA VALLEY TRANSPORTATION AUTHORITY, referred to herein as "VTA". Hereinafter, RECIPIENT and VTA may be individually referred to as "Party" or collectively referred to as "Parties.” I. RECITALS 1. Whereas, on June 3, 2010, the VTA Board of Directors adopted a resolution to place a ballot measure before the voters of Santa Clara County in November 2010 to authorize a $10 increase in the Vehicle Registration Fee (VRF) for transportation- related projects and adopted the expenditure plan in Attachment A which allocates the revenue to transportation-related programs and projects that have a relationship or benefit to the persons who pay the fee; and 2. Whereas, on October 7, 2010, the VTA Board of Directors adopted administrative procedures for the VRF program, referred to hereinafter as PROGRAM; and 3. Whereas, these administrative procedures state that VTA will execute PROGRAM funding agreements with project sponsors; and 4. Whereas, on November 2, 2010, the voters of Santa Clara County enacted the $10 vehicle registration fee on motor vehicles registered within Santa Clara County to pay for programs and projects bearing a relationship or benefit to the owners of motor vehicles paying the fee; and 5. Whereas, the PROGRAM includes a Local Road Improvement and Repair Program consisting of a direct return-to-source formula based on City population and County of Santa Clara road and expressway lane mileage; and 6. Whereas, VTA and RECIPIENT desire to specify herein the terms and conditions under which Local Road Improvement and Repair PROGRAM grants are to be conducted and financed. NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the Parties agree as follows: II. VTA’S OBLIGATIONS VTA agrees: 6 1. To pay RECIPIENT an initial distribution of Local Road Improvement and Repair Program funds collected by the California Department of Motor Vehicles (DMV) and received by VTA from the date of initial fund collection to June 30, 2012, plus associated interest. The Fund Distribution Formula is based on the County of Santa Clara’s percentage share of the total roadway lane mileage recorded in the county by the Metropolitan Transportation Commission (MTC), with the remaining funds to be distributed to RECIPIENT based on RECIPIENT’s percentage share of the total county population (excluding unincorporated areas) as reported by the California Department of Finance. Funds will be distributed after July 1, 2012, following execution of the VRF Local Program Funding Agreement and receipt of RECIPIENT’s initial Annual Report described in Section III-5. 2. To update roadway mileage and population shares annually with current information as of June 30 of current year. 3. To distribute subsequent funds, based on the formula described in Section II-1 above, for the Local Road Improvement and Repair Program funds on an annual basis consisting of funds received by VTA from the DMV between July 1 of the previous year and June 30 of the calendar year of disbursement, plus associated interest generated in VTA’s accounts. The distribution will take place following the beginning of the next State fiscal year and the receipt of the previous year’s annual report described in Section III-5 below. III. RECIPIENT’S OBLIGATIONS RECIPIENT agrees: 1. To develop eligible project(s) as set forth in Attachment A. 2. To credit VTA’s funding contribution on all signage, electronic or printed materials distributed to the public that are related to PROGRAM projects. 3. To certify, and continue to certify on a yearly basis, a Good Faith Effort (GFE) to maintain a level of expenditures (including non-discretionary formula based state funds) on VRF eligible activities equivalent to the expenditures on these activities during the fiscal year 2010/11 (base year). The base year may be revised every five years, if needed, and VRF revenues will be excluded. The following funds are excluded from the GFE expenditure calculation: State and Federal Discretionary Grants (including but not limited to ARRA, CMAQ, HBRR, HSIP, SR2S, STP, and Proposition 1B etc.), associated local matching funds, and one-time local expenditure. GFE requirements are automatically waived in years where the State of California fails to make non-discretionary payments of streets and roads funding to Cities and Counties. VTA may also consider granting waivers based on extraordinary circumstances beyond the control of a city or town council, County Board of Supervisors, and/or city and County staff. The certification will be provided by RECIPIENT to VTA as set forth in Section III-5. 6 4. After receipt of funds from VTA, to track interest earned on unexpended PROGRAM funds and apply interest to PROGRAM eligible projects as specified in Attachment A. 5. To submit annual reports of RECIPIENT’S expenditures of PROGRAM funds and associated interest, in a form to be provided by VTA to RECIPIENT. Each report will cover twelve months consisting of the previous State fiscal year. Reports are due from RECIPIENT to VTA no later than October 15 of each year as a condition of receiving funds. As part of the annual report, RECIPIENT will certify that it continues to make a Good Faith Effort (GFE) to maintain a level of expenditures as stated in section III- 3. An initial report, containing the notification of GFE base year amount and statement of GFE for FY2012/13, shall be submitted by RECIPIENT to VTA after the execution of this agreement. 6. To maintain PROGRAM financial records, books, documents, papers, accounting records and other evidence pertaining to costs for five years. RECIPIENT shall make such records available to VTA upon request for review and audit purposes. Financial audits will be performed at VTA’s discretion. RECIPIENT will be contacted in writing in advance of any audit or other PROGRAM review. 7. To provide VTA with information regarding scope, award and delivery of projects at the time of award and completion. IV. GENERAL TERMS AND CONDITIONS Both Parties agree: 1. Neither VTA nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by RECIPIENT under or in connection with any work, authority or jurisdiction delegated to VTA or RECIPIENT under this Funding Agreement. Both Parties agree that pursuant to Government Code 895.4, RECIPIENT shall fully defend, indemnify, and save harmless VTA from all suits or actions of every name, kind and description brought on for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by RECIPIENT under or in connection with any work, authority or jurisdiction delegated to RECIPIENT under this Funding Agreement. This provision shall survive the termination of this Agreement. 2. Neither RECIPIENT nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by VTA under or in connection with any work, authority or jurisdiction delegated to RECIPIENT or VTA under this Funding Agreement. Both Parties agree that pursuant to Government Code 895.4, VTA shall fully defend, indemnify, and save harmless RECIPIENT from all suits or actions of every name, kind and description brought on for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by VTA under or in connection 6 with any work, authority or jurisdiction delegated to VTA under this Funding Agreement. This provision shall survive the termination of this Agreement. 3. No alteration or variation of the terms of this Funding Agreement shall be valid unless made in writing and signed by both of the parties hereto and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. 4. PROGRAM costs incurred on or after July 1, 2011 are eligible expenditures. 5. This Funding Agreement contains the entire understanding between the VTA and RECIPIENT for the PROGRAM. It supersedes any and all other agreements, which may have existed between the parties. This Funding Agreement shall not be modified except by written agreement signed by each party. This Funding Agreement shall be binding upon each party, their legal representatives, and successors for the duration of the VRF. 6. The term of this Funding Agreement shall commence when fully executed and continue until terminated due to the repeal of Sections 65089.20 to the Government Code and Section 9250.4 of the Vehicle Code, as those sections may be amended, which authorizes the imposition of the VRF. 7. Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, by the U.S. Postal Service or by certified mail, to the addresses set forth below, or to such addresses which may be specified in writing to the Parties hereto. VTA: Manager, Programming and Grants Santa Clara Valley Transportation Authority 3331 North 1st Street San Jose, CA 95134 CITY OF PALO ALTO: Jaime Rodriguez, Chief Transportation Official Planning and Transportation Division 250 Hamilton Avenue Palo Alto CA 94301 8. Within 30 days from the Effective Date of this Agreement, RECIPIENT shall notify VTA of RECIPIENT’s PROGRAM Liaison and of the Liaison’s address, telephone number and email address. The PROGRAM Liaison shall be the liaison to VTA pertaining to implementation of this Agreement and shall be the contact for information about the PROGRAM and PROGRAM projects. RECIPIENT shall notify VTA of the change of PROGRAM Liaison or of the Liaison’s contact information in writing no later than 30 days from the date of any change. 6 9. Each Party to this Agreement represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this Agreement on behalf of the entity that is a party to this Agreement. 10. No Waiver. The failure of either Party to insist upon the strict performance of any of the terms, covenant and conditions of this Agreement shall not be deemed a waiver of any right or remedy that either Party may have, and shall not be deemed a waiver of their right to require strict performance of all of the terms, covenants, and conditions thereafter. 11. Dispute Resolution. If a question arises regarding interpretation of this Agreement or its performance, or the alleged failure of a Party to perform, the Party raising the question or making the allegation shall give written notice thereof to the other Party. The Parties shall promptly meet in an effort to resolve the issues raised. If the Parties fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the Parties to the extent possible that litigation be avoided as a method of dispute resolution. 12. Governing Law. This Agreement shall be construed and its performance enforced under California law. 13. Venue. In the event that suit shall be brought by either Party to this Agreement, the Parties agree that venue shall be exclusively vested in the State courts of the County of Santa Clara or, if federal jurisdiction is appropriate, exclusively in the United States District Court for the Northern District of California, in San José, California. CITY OF PALO ALTO (RECIPIENT) SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) James Keene, City Manager Date Michael T. Burns, General Manager Date Approved as to Form and Legality: Approved as to Form: Molly Stump, City Attorney Date Evelynn Tran, Senior Assistant Counsel Date Au><hm •• , A ~llt.. LK.I Tr3n'portation ID ... " ... DI r u.r Mul. HiU S3 [Ipt.ttilm~ Pb • ....... {I'J'l 1IlII -'".,Ir'''"w UN '",,'dl ~ ... _ ....... ,.c.." '; """-r....,-<l: ... a.. ....J"""-__ '-",,"-) • u..-_-llll ...... 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