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Home My WebLink About2008 CON SANDAG - MOU - Advanced Funding Street ImprovementsMEMORANDUM OF UNDERSTANDING BETWEEN SAN DIEGO ASSOCIATION OF GOVERNMENTS AND THE CITY OF NATIONAL CITY REGARDING TRANSNET COMMERCIAL PAPER PROGRAM This Memorandum of Understanding ("MOU") is made and entered into effective as of this 1st day of April , 2008, by and between the San Diego Association of Governments ("SANDAL') and the City of National City ("City"). RECITALS The following recitals are a substantive part of this Agreement: WHEREAS, SANDAG serves as the San Diego County Regional Transportation Commission, and in that role is responsible for the administration of the TransNet program (Proposition A, November 1987, and 2004); and WHEREAS, in order to accelerate the implementation of sales tax funded projects, SANDAG has established a debt financing program for the short term (commercial paper) and for the long term (bonds) to provide advanced funding for eligible projects under the TransNet program; and WHEREAS, the City of National City wishes to borrow $4,500,000 from the TransNet Commercial Paper program; and WHEREAS, the parties wish to memorialize their agreement in this MOU to carry out the purposes set forth above; AGREEMENT NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows: SANDAG AGREES: To lend the City of National City $4,500,000 through debt financing for its Street Resurfacing Program from the TransNet Program subject to certain conditions set forth below and SANDAG Board Policies concerning TransNet Program loans. SANDAG will transfer the funds to the City after the execution of this MOU and after the approval of the 2008 Regional Transportation Improvement Program scheduled for adoption on July 25, 2008. 3. Neither the City nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by SANDAG under or in connection with any work, authority 1 or jurisdiction delegated to SANDAG under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4, SANDAG shall fully defend, indemnify and save harmless the City, all officers and employees from all claims, suits or actions of every name, kind and description brought 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 SANDAG under or in connection with any work, authority or jurisdiction delegated to SANDAG under this MOU. THE CITY AGREES: The City Council at its February 5, 2008 meeting approved the request to borrow $4,500,000 of advanced funding through debt financing for its Street Resurfacing Program. The City wilt pay its proportionate share of the annual interest and administrative costs of the commercial paper program based on the ratio of the amount of financing for each fiscal year. The City acknowledges that SANDAG will deduct said interest and administrative costs from the monthly TransNet Sales tax allocations prior to making payments to the City for other programmed projects. The amounts to be deducted are estimated in the City Council Resolution hereto. The City also will repay the principal amount borrowed in equal installments of $ 900,000 each fiscal year beginning in FY 2009 and ending in FY 2013 (as shown in City Council Resolution attached). Neither SANDAG nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the City under or in connection with any work, authority or jurisdiction delegated to the City under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4, the City shall fully defend, indemnify and save harmless SANDAG, all officers and employees from all claims, suits or actions of every name, kind and description brought 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 the City under or in connection with any work, authority or jurisdiction delegated to the City under this MOU. THE PARTIES MUTUALLY AGREE: 1. That all obligations of SANDAG under the terms of this MOU are subject to the appropriation of the required resources by SANDAG and the approval of the SANDAG Board of Directors. Any notice required or permitted under this MOU may be personally served on the other party, by the party giving notice, or may be served by certified mail, return receipt requested, to the following addresses: For SANDAG 401 B Street, Suite 800 San Diego, CA 92101 Attn: Director of Finance For City of National City 1243 National City Blvd National City, CA 91950 Attn: City Manager That unless it is amended by the parties in writing, this MOU shall terminate on June 30, 2013. 4. The indemnification provisions of this MOU shall survive termination of the MOU. 2 5. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this MOU, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. 6. All terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. For purposes of this MOU, the relationship of the parties is that of independent entities and not as agents of each other or as joint venturers or partners. The parties shall maintain sole and exclusive control over their personnel, agents, consultants, and operations. No alteration or variation of the terms of this MOU shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. Nothing in the provisions of this MOU is intended to create duties or obligations to or rights in third parties to this MOU or affect the legal liability of the parties to this MOU. 10. This MOU may be executed in any number of identical counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. IN WITNESS WHEREOF, the Parties hereto have executed this MOU effective on the day and year first above written. SAN DIEGO ASSOCIATION OF CITY OF NATIONAL CITY GOVERNMENTS Ow GARY L. GALLEGOS Executive Director APPROVED AS TO FORM: CHR TAPATA CITY MANAGER APPROVED AS TO FORM: of General Counsel / \ Legal Counsel 3 RESOLUTION NO. 2008 — 51 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING SANDAG TO PROVIDE ADVANCED FUNDING THROUGH DEBT FINANCING IN THE AMOUNT OF $4,500,000 FOR THE NATIONAL CITY STREET RESURFACING PROGRAM, AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND SANDAG TO MEMORIALIZE THE TERM OF THE ADVANCED FUNDING, AND RESCINDING RESOLUTION NO. 2008-23 WHEREAS, SANDAG, acting as the San Diego County Regional Transportation Commission, is responsible for the administration of the TransNet program (Proposition A; November 1987 and November 2004); and WHEREAS, to accelerate the implementation of sales tax funded projects, SANDAG has established debt financing programs to provide advanced funding for eligible projects under the TransNet program; and WHEREAS, the following project being implemented by the City of National City has been approved by SANDAG through the 2008 TransNet Program of Projects, and would benefit from the availability of advance funding: NATIONAL CITY STREET RESURFACING PROGRAM, which requires an amount of $4,500,000 (Four Million Five Hundred Thousand Dollars) in debt financing. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: 1. That the City Manager is hereby authorized 10 request advance funding from SANDAG through its debt financing program in an amount not to exceed $4,500,000 (Four Million Five Hundred Thousand Dollars). 2. That the City Manager is hereby authorized to execute the Memorandum of Understanding between the City and SANDAG regarding the TransNet Commercial Paper Program, and any other necessary documents relating to the receipt of said funds from SANDAG. 3. That the City of National City will be responsible for paying its proportionate share of the annual interest and administrative costs of the commercial paper based on the ratio of the amount of financing provided to the City of National City to the total commercial paper outstanding for each fiscal year. 4. That SANDAG will deduct said interest and administrative costs from the City of National City monthly TransNet Sales tax allocations prior to making any other sales tax payments for other City of National City projects. 5. That the City of National City will repay to SANDAG the principal amount borrowed according to the schedule set forth in Attachment "A". If paid from future sales tax revenues, these principal payments will be deducted by SANDAG from City of National City's monthly TransNet sales tax allocations prior to making any other sales payments for other City of National City's projects. Resolution No. 2008 — 51 April 1, 2008 Page 2 6. That the first priority use of the City of National City's annual allocation of TransNet revenues shall be payment of any required costs of debt financing. BE IT FURTHER RESOLVED that Resolution No. 2008-23 is hereby rescinded. PASSED and ADOPTED this 1st day of April, 2008. Ron Morrison, Mayor ATTEST: 1, Mi ael R. Dall. , City Clerk APPROVED AS TO FORM: AVALIZ George H. Eiser, III City Attorney National City $4.5M Commercial Paper Capacity Analysis Beginning Balance (est) Allocations CP Proceeds CP Principal Repayment CP Interest/Other Fees CP Disbursement Ending Balance FY 2009 1,258,000 4,500,000 (900,000) (183,938) (4,500,000) Resolution No. 2008 - 51 FY 2010 FY 2011 FY 2012 FY 2013 174,062 442,624 818,686 1,305,248 1,312,000 1,379,000 1,449,000 1,515,000 (900,000) (900,000) (900,000) (900,000) (143,438) (102,938) (62,438) (21,938) $174,062 $442,624 $818,686 $1,305,248 $1,898,310 Notes: 1. Assumes no other project expenditures from the TransNet program through FY 2013. 2. Estimated revenues based on January 2008 projections for the next 5 years, updated on an annual basis. 3. As of February 2008, the beginning balance for FY 2009 estimated to be $61,682. SANDAG anticipates NC will reduce the remaining payments for FY 2008 to reduce the balance to zero; therefore, the beginning balance is shown as zero for purposes of this analysis. 02/05/2008 ATTACHMENT "A" Passed and adopted by the Council of the City of National City, Califomia, on April 1, 2008 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, Califomia Cityi kof the ity of 4hlational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-51 of the City of National City, Califomia, passed and adopted by the Council of said City on April 1, 2008. City Clerk of the City of National City, Califomia By: Deputy City of National City, California COUNCIL AGENDA STATEMENT .MEETING DATE April 1, 2008 a00%-3 ^,og-5-1 \ -a - 2, AGENDA ITEM NO. 5 ITEM TITLE Resolution of the City of National City requesting SANDAG to provide advanced funding through debt financing for resurfacing street improvements in the amount of $4,500,000 and authorizing the City Manager to execute the revised Memorandum of Understanding between the San Diego Association of Governments and the City of National City PREPARED BY Din Daneshfar DEPARTMENT Engineering EXT. 4387 EXPLANATION See attached explanation. Environmental Review X N/A MIS Approval Financial Statement Approved By: Finance Director The advanced funding will be effective upon SANDAG's completion of the MOU execution and reflected in the City's ClP (08-09). Account No STAFF RECOMMENDATION Adopt the revised Resolution, direct the Clerk to attach the Resolution to the signed MOU, and submit it to SANDAG for its execution. BOARD / COMMISSION RECOMMEDA ION N/A ATTACHMENTS (Listed Below) Resolution No. o 1. Revised Resolution 2. Revised MOU (. 3. Table 1 4. Attachment "A" A.200 (Rev 7/03) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Della, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 April 7, 2008 Ms. Renee Wasmund Director of Finance SANDAG 401 B Street, Suite 800 San Diego, CA 92101 Dear Ms. Wasmund, On April 1, 2008, Resolution No. 2008-51 was passed and adopted by the City Council of National City, authorizing execution of a Memorandum of Understanding with San Diego Association of Governments (SANDAG). We are forwarding a certified copy of the above Resolution and two partially executed original agreements. Please retum one fully executed original agreement to us for our files. Sincerely, Michael R. Da City Clerk Enclosures la CMC ® Recycled 1'aper