CONTRACT 6890 OtherAgreement No. 6890
FUND EXCHANGE AGREEMENT
BETWEEN THE CITIES OF EL SEGUNDO
AND COMMERCE, CALIFORNIA
This Fund Exchange Agreement is made and entered into this 19th day of March, 2024, by and
between the City of El Segundo, California ("El Segundo") and the City of Commerce, California
("Commerce") with respect to the following facts:
A. El Segundo has uncommitted funding authority for its Fiscal Year 2023-24 allocation of
Proposition "A" Local Return funds ("Prop A Funds") that can be made available to
Commerce to assist in providing the services discussed in Paragraph B below. El Segundo
is willing to assign its uncommitted Prop A Funds to Commerce for the purpose(s)
identified in Paragraph B, in exchange for the assignment by Commerce of the amount of
its general funds indicated in Section 1 below.
B. Commerce proposes to use El Segundo's uncommitted Prop A Funds to provide ongoing
transportation operation services (including fixed route, medi-ride, and recreation) to the
residents of Commerce, and to fund certain eligible capital improvement projects. Adequate
Prop A funding for such services is not currently available given the limited amount of
Commerce's Local Return allocation.
Now, therefore, in consideration of the mutual benefits to be derived by the parties and of the
premises herein contained, it is mutually agreed as follows:
L Exchange. El Segundo shall transfer $740,992 of its Fiscal Year 2023-24 Prop A Funds to
Commerce. In return, Commerce shall transfer $555,744 of its general funds to El Segundo.
2. Cgnsideration. El Segundo shall transfer the $740,992 in Prop A Funds to Commerce in
one lump sum payment, and Commerce shall transfer $555,744 in unrestricted general
funds to El Segundo in one lump sum payment. Each payment transfer will be made upon
approval by the Los Angeles Metropolitan Transportation Authority ("Metro") of
Commerce's project services discussed in Paragraph B, above, which will include any
required Metro Local Return forms, as described in Metro's "Guidelines: Proposition A
and Proposition C Local Return" (hereinafter, the "Guidelines"). Commerce will be solely
responsible for seeking an obtaining Metro's approval of its proposed services discussed in
Paragraph B, above.
3. Term. This Agreement is effective on the date first above written, and shall continue for
such time as is necessary for both parties to complete their mutual obligations set forth
herein.
4. Termination, This Agreement may be terminated with or without cause by either parry
upon five (5) calendar days written notice to the other parry.
Agreement No. 6890
5. "Ngtices.. Notices shall be given pursuant to this Agreement by personal service on the party
to be notified or by written notice upon such parry by certified mail deposited in the custody
of the United States Postal Service addressed as follows:
CITY OF EL SEGUNDO
350 Main Street
El Segundo, CA 90245
Attn: Paul Chung, Chief Financial Officer
CITY OF COMMERCE
2535 Commerce Way
Commerce, CA 90040
Attn: Vilko Domic, Assistant City Manager
6. - sstirgne s.
a. Commerce shall use the assigned Prop A Funds only for the purpose of providing
the services discussed in Paragraph B of this Agreement and within the time limits
specified in Metro's Guidelines.
b. Concurrently with the execution of this Agreement Commerce shall provide Metro
with the "Standard Assurances and Understandings Regarding Receipt and Use"
form for Prop A Funds, as specified in the Guidelines regarding the use of the
assigned Prop A Funds. Commerce will provide a copy of such form, which must
substantially conform with Guidelines Appendix II, within five days of its
submission of such form to Metro.
C. Commerce and El Segundo agree that Commerce will be solely responsible for
ensuring that the Prop A Funds it receives from El Segundo are expended,
programmed, or otherwise used in accordance with applicable laws and regulations,
including, without limitation Proposition A and the Guidelines.
7. 'Authority/Modification. Commerce and El Segundo represent and warrant that all necessary
action has been taken by each to authorize the undersigned to execute this Agreement and to
engage in the actions described herein. This Agreement may be modified by written
amendment.
8. Counte arts/Electronic Signatures, This Agreement may be executed in any number or
counterparts, each of which will be an original, but all of which together constitutes one (1)
instrument executed on the same date. In accordance with Government Code § 16.5, Commerce
and El Segundo agree that this Agreement and related documents in connection with this
Amendment will be considered signed when the signature of a party is delivered by electronic
transmission. Such electronic signature will be treated in all respects as having the same effect
as an original signature.
Page 2 of 4
Agreement No. 6890
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers, duly authorized, on the day and year above written.
CITY OF EL SEGUNDO
Eyd.. m.... ...._
Darrel George
City Manager
ATTEST:
CITY OF COMMERCE
B
Vilko Domic
Assistant City Manager
Page 3 of 4
Agreement No. 6890
(7r,
Tracy Weaver
City Clerk
Approved as to Form:
Mark Hensley
City torney
Lena Shumway
City Clerk
Approved as to Form:
f `
Noel Tapia
City Attorney
Page 4 of 4