HomeMy WebLinkAboutC-3120 - Agreement for Fund Exchange (Annual Gas Tax Revenue Exchange)1 AGREEMENT
2 BETWEEN
3 ORANGE COUNTY TRANSPORTATION AUTHORITY
4 AND THE CITY OF NEWPORT BEACH FOR FUND EXCHANGE
5 THIS AGREEMENT is made and entered into this p4 _-d day
6 of64Ua�fr 1997 by and between the Orange County
7 Transportation Authority, a public corporation of the State of
8 California (hereinafter referred to as "AUTHORITY "); and the
9 City of Newport Beach, a public corporation (hereinafter
10 referred to as "CITY ").
11
RECITALS:
12 WHEREAS, the County of Orange and other local
13 jurisdictions within the county, including CITY and AUTHORITY,
14 entered into a Joint Agreement for Resolution of Claims Against
15 the County of Orange ( "JOINT AGREEMENT "); and
16 WHEREAS, the JOINT AGREEMENT includes provisions
17 supporting legislation to provide funds to finance an
18 acceptable plan of adjustment in the County of Orange
19 bankruptcy case; and
20 WHEREAS, State legislation provided the shift of
21 $38,000,000 per year of Bradley -Burns sales tax revenues, used
22 by AUTHORITY to pay for public bus services, to the County of
23 Orange commencing July 1, 1996 and ending June 30, 2011; and
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1 the shift of $23,000,000 per year of fuel tax revenues to
2 AUTHORITY from the County of Orange commencing July 1, 1997 and
3 ending June 30, 2013; and
4 WHEREAS, the $23,000,000 of fuel tax revenues shifted to
5 AUTHORITY may not be used to pay for public bus service
6 operations as defined by Article XIX of the State Constitution;
7 and
8 WHEREAS,
CITY
annually appropriates
general fund or other
9 local revenues
for
Article XIX authorized
transportation
10 projects, and said local revenues may be used to pay for public
11 bus services; and
12 WHEREAS, AUTHORITY and CITY jointly desire to sustain
13 public bus service levels in Orange County through a
14 cooperative effort; and
15 WHEREAS, AUTHORITY and CITY desire to exchange AUTHORITY
16 fuel tax revenues for CITY local revenues beginning July 30,
17 1997 to sustain public bus service levels in Orange County;
18 NOW, THEREFORE, it is mutually understood and agreed by
19 AUTHORITY and CITY as follows:
20
1. Prior to March 1
of each year
AUTHORITY
will provide
21
CITY written notification
requesting an
exchange
of AUTHORITY
22 fuel tax revenues for CITY revenues that shall be available to
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1 pay for bus services (hereinafter referred to as "local
2 revenues ")
for the fiscal year commencing the following July 1.
3 2.
Prior to April 1 of each
year CITY will provide
4 AUTHORITY
an estimate (hereinafter
referred to as "ESTIMATE ")
5 of local revenues CITY anticipates
spending for Article
XIX
6 authorized transportation projects
during the following
fiscal
7 year.
8 3.
Prior to
May 1
of each year AUTHORITY
and CITY will
9 agree on
an amount
to be
exchanged and AUTHORITY
will provide a
10 confirmation letter to CITY establishing the amount of fuel tax
11
revenues
to
be
exchanged
for local
revenues
(hereinafter
12
referred
to
as
"EXCHANGE
AMOUNT ")
during the
following fiscal
13
year.
The
EXCHANGE AMOUNT may be equal
to
or less than the
14
amount
of
the ESTIMATE provided by CITY
to
AUTHORITY.
15
4.
Beginning July
31, 1997,
and on the last working day
16
of each
month thereafter,
AUTHORITY
shall deposit one - twelfth
17
of the
EXCHANGE AMOUNT in
fuel tax
revenues in a CITY account
18 as directed by CITY.
19 5. Beginning September 30, 1997, and on the last working
20 day of December, March, June and September thereafter, CITY
21
shall deposit
25 percent
of the
EXCHANGE AMOUNT
in local
22
revenues in an
AUTHORITY
account
as directed by
AUTHORITY.
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1 6. The EXCHANGE AMOUNT may be adjusted upward or
2 downward during the fiscal year as agreed to by both parties.
3 Corresponding adjustments may be made to remaining or future
4 quarterly and monthly deposits.
5 7. AUTHORITY agrees that the fuel tax revenues received by
6 CITY and expected by CITY shall be used toward satisfying
7 CITY's Measure M maintenance of effort requirement.
8 8. CITY and AUTHORITY mutually agree that the fuel tax
9 revenues received from AUTHORITY shall only be used as
10
authorized
by Article
XIX
of the California Constitution, and
11
applicable
California
law,
and that the local revenues received
12 by AUTHORITY shall be used to pay for public bus service
13 operations.
14 9. AUTHORITY agrees to fund any reasonable costs CITY
15 may incur due to additional audit requirements caused by this
16 exchange of local revenues for fuel tax revenues. Any
17 additional audit costs will be mutually agreed to by both
18 parties, and corresponding adjustments will be made to monthly
19 deposits by AUTHORITY to CITY to account for the additional
20 audit costs.
21
10.
Nothing in
this AGREEMENT will limit the CITY's
22
ability
to request a
review of its Maintenance of Effort level
23
consistent
with the
Measure M Ordinance.
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1 11. This AGREEMENT shall be effective on the date of full
2 execution and continues each fiscal year thereafter unless
3 either
party provides
the
other party
with no less
than
six
4 months
written notice
of
the effective
termination
date.
This
5 AGREEMENT shall terminate effective July 1, 2013.
6 12. AUTHORITY acknowledges that the estimate provided by
7 CITY to AUTHORITY pursuant to Paragraph 2. of this Agreement is
8 merely an estimate by the staff of CITY. Any amounts to be
9 exchanged by CITY pursuant to the AGREEMENT are subject to and
10 limited by the appropriation of such amounts by the City
11 Council in the annual budget of CITY which budget is not
12 necessarily adopted by CITY until July 1st of each calendar
13 year or thereafter.
14 13. This AGREEMENT will be amended at the request of CITY
15 should AUTHORITY approve or amend a gas tax exchange agreement
16 with any other city to include provisions which CITY believes
17 are more favorable than the terms of this AGREEMENT.
18 14. If as a result of (a) a final judgement with respect
19 to this AGREEMENT (or any substantially identical agreement of
20 AUTHORITY with another city), (b) Legislation or (c) any
21 administrative regulation or order, it is determined that the
22 exchange of revenues provided for herein is invalid for any
23 reason whatsoever and that CITY must make restitution to
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1 AUTHORITY of any or all fuel tax revenues which it has received
2 hereunder, AUTHORITY shall return to CITY as soon as
3 practicable the amount of funds which had been transferred by
4 CITY to AUTHORITY pursuant to this AGREEMENT. In the event
5 CITY's funds have been expended for bus service or any other
6 expense of AUTHORITY, AUTHORITY shall reimburse CITY from any
7 other available funds. Should CITY itself be the subject of
8 any judicial, legislative
or administrative challenges to
the
9 AGREEMENT, AUTHORITY shall
upon demand by CITY indemnify
and
10
hold harmless
CITY
from any and all claims, damages,
losses,
11
liabilities,
costs
or expenses whatsoever which CITY
may incur
12 by reason of or in connection with this AGREEMENT.
13 15. Notification.and mailing addresses:
14 Any notices, requests and demands made between the parties
15 pursuant to this AGREEMENT are to be directed as follows:
16 If to AUTHORITY:
17 550 S. Main Street
18 P.O. Box 14184
19 Orange, CA 92863 -1584
20
21 If to CITY:
22 City of Newport Beach
23 P.O. Box 1768
24 Newport Beach, CA 92658 -1768
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1 IN WITNESS WHEREOF, the parties hereto have caused this
2 AGREEMENT to be executed on the date first above written.
3 CITY OF NEWPORT BEACH
4 ByA4��o?
5 Kevin Murp y, City Manager Date
6 APPROVED A TO FORM
7 BY
8 Robert Burnham Date
9 City Attorney
10 ORANGE COUNTY TRANSPORTATION AUTHORITY
11 By L�M
12 Stan Oftelie, Chief Executive Officer Date
13 APPROV AS TO FORM
14 By_si Z.� El LM11
15 Kennard R. Smart Date
16 General Counsel
17 --END--
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