CC RESOLUTION 5472RESOLUTION NO. 5472
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF EL SEGUNDO, CALIFORNIA, APPROVING A FUND
TRADE AGREEMENT FOR THE EXCHANGE OF
PROPOSITION A LOCAL RETURN FUNDS WITH THE
CITY OF COMMERCE PURSUANT TO SECTION
II(B)(2) OF THE LOS ANGELES METROPOLITAN
TRANSPORTATION AUTHORITY LOCAL RETURN
PROGRAM FUNDS GUIDELINES.
The City Council of the city of El Segundo does resolve as follows:
SECTION 1. Findings. The City Council finds and determines as follows.
A. Proposition A ("Prop A") is a half -cent sales tax measure approved by Los
Angeles County ("County") voters in 1980 to finance a countywide transit
development program.
B. Twenty-five percent (25%) of the Proposition A tax revenues are designated
for the Local Return Program ("Local Return") funds administered by the Los
Angeles Metropolitan Transportation Authority ("Metro")
C. Annually, Metro distributes the Local Return funds on a per capita basis to
cities and unincorporated areas of the County.
D. Local Return funds are restricted for developing and/or improving public
transit, paratransit, and the related transportation infrastructure.
E. These use restrictions pose challenges to many cities, however, the City of
Commerce has efficiently deployed Local Return funds for several projects which
has created a fruitful and successful transportation system for its residents.
F. In 2007, Metro promulgated guidelines for Prop A Local Return funds
("Guidelines"), and Section II(B)(2) allows Local Return funds to be "given,
loaned, or exchanged," by cities, pursuant to an agreement, if certain conditions
are met, including the transportation use restrictions noted above.
G. Local Return fund exchanges can allow a city to utilize the restricted Local
Return funds to pay another city that has available Local Return funds a sum that
is less than the amount of the Prop A Funds, which allows the first city to obtain
restricted Local Return funds at a discounted rate while the other city that cannot
utilize its Local Return funds is able to receive unrestricted funds that can be put
to use for other, general purposes.
H. The City of Commerce is proposing to provide ongoing operating funding for
fixed route, Medi-ride and recreation services to the residents of the City and
certain capital projects that are eligible for Local Return funds.
RESOLUTION NO. 5472
PAGE 1 of 2
I. Adequate Prop A Local Return funds for such services are not available to the
City of Commerce because of the Commerce's Local Return funds allocation.
J. The City of El Segundo has uncommitted funding authority for its Fiscal Year
2023-24 allocation of Proposition A Local Return Funds that can be made
available to the City of Commerce to assist in providing these services.
K. The City of El Segundo is willing to assign $740,992 of its uncommitted FY
2023-24 Prop A Local Return funds to the City of Commerce in exchange for the
assignment by the City of Commerce of $555,744 of its general funds to the City
of El Segundo.
SECTION 2. Approval. The City Council approves the transfer of $740,992 of the
City of El Segundo's uncommitted FY 2023-24 Prop A Local Return funds to the City of
Commerce in exchange for the City of Commerce's transfer of $555,744 to the City of El
Segundo from the City of Commerce's General Fund for the City of El Segundo's
unrestricted use of the $555,744.
SECTION 3. Delegation. The City Manager, or designee, is authorized to
execute any agreement or other documentation, in a form acceptable to the City
Attorney, necessary to effectuate the exchange of funds referenced in this Resolution.
SECTION 4. Severability. If any part of this Resolution or its application is
deemed invalid by a court of competent jurisdiction, the City Council intends that such
invalidity will not affect the effectiveness of the remaining provisions or applications and,
to this end, the provisions of this Resolution are severable.
SECTION 5. Signature Authority. The Mayor, or presiding officer, is hereby
authorized to affix his signature to this Resolution signifying its adoption by the City
Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is
directed to attest thereto.
SECTION 6. Effective Date. This Resolution will take effect immediately upon
adoption and will remain effective unless repealed or superseded.
SECTION 7. City Clerk Direction. The City Clerk will certify to the passage and
adoption of this Resolution, enter it in the City's book of original Resolutions, and make a
record of this action in the meeting's minutes.
PASSED, APPROVED, and ADOPTED this 19th day of March, 2
Drew Kyles,
Tracy Weave, City Clerk
•
RESOLUTION NO. 5472
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5472 was duly passed, approved, and adopted by said City Council at a
regular meeting held on the 19t" day of March, 2024, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk,
Council Member Giroux, and Council Member Baldino
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY thisLI
day of March,
2024.
w
i
TraN Weaver, City Clerk
of the City of El Segundo,
California
Agreement 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:
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. Consideratiosi. 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 party
upon five (5) calendar days written notice to the other party.
Agreement No. 6890
5. Lotices. Notices shall be given pursuant to this Agreement by personal service on the party
to be notified or by written notice upon such party 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. Assurance .
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.
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. AtltilorGty/kloclzlt �tio�n. 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.
Counte arts Electro��ic i nalpr sa 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.
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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
l3°--_-.-......
Tarr' I 1 George
City Manager
ATTEST:
CITY OF COMMERCE
Page 3 of 4
Vilko Domic
Assistant City Manager
Agreement No. 6890
Tracy Weaver
City Clerk
Approved as to Form:
Mark . Hensley
City torney
Page 4 of 4
Lena Shumway
City Clerk
Approved as to Form:
ell
Noel. Tapia
City Attorney
Agreement No. 6890A
FUND TRADE AGREEMENT
BETWEEN THE CITY OF EL SEGUNDO
AND THE CITY OF COMMERCE, CALIFORNIA
This Assignment Agreement is made and entered into this 12th day of March, 2024, by and
between the City of El Segundo, Califomia ("Lomita") and the City of Commerce, California
("Commerce") with respect to the following facts:
A. El Segundo has uncommitted funding authority for its Fiscal Years 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:
1. Exchange. El Segundo agrees to assign $740,992 of its Fiscal Year 2023-24 Proposition
"A" Local Return funding authority to Commerce. In return, Commerce agrees to assign
$555,744 of its General Fund monies to El Segundo.
2. Consideratio . El Segundo shall provide the agreed upon Proposition "A" Local Return
funds to Commerce in one lump sum payment.. Commerce shall also provide the agreed -
upon general funds to El Segundo in one lump sum payment. The lump sum payment by
Commerce shall be due and payable upon approval by the Los Angeles Metropolitan
Transportation Authority ("LAMTA") of Lomita's project description FORM (Form A)
covering the services discussed in Paragraph B.
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. 1-emlination. This Agreement may be terminated with or without cause by either party
upon five (5) days written notice to the other party.
Agreement No. 6890A
5, Notices.. Notices shall be given pursuant to this Agreement by personal service on the
party to be notified or by written notice upon such party by certified snail 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, Acting City Manager
6. Assurances.
a. Commerce shall use the assigned Proposition "A" Local Retum funds only for the
purpose of providing the services discussed in Paragraph. E of this Agreement and
within the time limits specified in LAMTA's Proposition "A" Local Return
Program Guidelines.
b. Concurrently with the execution of this Agreement Commerce shall provide
LAMTA with the Standard Assurances and Understandings Regarding Receipt
and Use of Proposition "A" funds specified in the Guidelines regarding the use of
the assigned Proposition "A" Local Return Funds.
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
By
Darrell George
City Manager
CITY OF COMMERCE
By
Hugo Argu redo
Mayor
Page 2 of 3
Agreement No_ 6890A
ATTEST:
Y-M--ka-
Tracey Weaver
City Clerk
Approved as to Form:
T—tov,--
iiaik
Cityt
torney
..
Lena Shwnway
City Clerk
Approved as to Form:
M
Noel Tapia
City Attomey
Page 3 of 3