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HomeMy WebLinkAboutC-1889aC �,q�- CAPITAL RESERVE MEMORANDUM OF UNDERSTANDING ESTABLISHING CITY OF ARCADIA CAPITAL RESERVE FUND This Memorandum of Understanding ( "MOU ") is dated as of September 1, 2004 and is by and between the Los Angeles County Metropolitan Transportation Authority ( "MTA ") and the City of Arcadia (the "City "). WHEREAS, the City is prepared to commit and accumulate Proposition C Local Return funds, to be used exclusively for the Pasadena Gold Line — Future Mass Transit Station project, as agreed to by both parties. NOW THEREFORE, the MTA and the City agree as follows: FUNDING The City shall establish a capital reserve fund and will allocate $2,000,000 of Proposition A and $3,000,000 of Proposition C Local Return funds (collectively the "Funds ") for the Pasadena Gold Line — Future Mass Transit Station project as more fully described in the attached Project Description Form (Form A) (the "Project "). All interest accumulated on the Funds placed in the capital reserve shall accrue to that fund and used for the Project. TERM/LAPSE OF FUNDS The capital reserve fund will begin as of September 1, 2003. If the Funds are not expended by September 2, 2006, then any unexpended Funds will automatically lapse unless prior to the lapsing date, the MTA has approved to extend the term of the reserve. Before the end of the three (3) years, the MTA may evaluate the Capital Reserve Account as it pertains to the status of the Project and the projected amount of funds available. If the Project is delayed, the City must request in writing for MTA approval to extend the term of the reserve account before the lapsing date. Without such approval, the unexpended Funds will automatically lapse. This MOU incorporates by reference the conditions set forth in the Proposition A and Proposition C Local Return Guidelines pertaining to the Capital Reserve process (collectively the "Guidelines "). TERMINATION If either party desire to terminate this MOU early and reprogram the Funds in the capital reserve account, either party may give 30 -days written notice of such intent subject to the conditions set forth in the Guidelines. If the MTA terminates this MOU, in addition to the requirements in the Guidelines, the Funds must be expended within three years from the time the MTA decision is made. If the City terminates this MOU or uses the Funds for a purpose different from the Project, in addition to the requirements in n M the Guidelines, the Funds must be returned to the City's Local Return account and will retain the original automatic lapsing date. CONDITIONS The MTA and the City agree to abide by the requirements of the Guidelines, which are incorporated herein by reference, including without limitation: A. Submittal of Annual Project Update with updated Project Description Form; B. Reprogramming funds; and C. Annual Status Update This Memorandum of Understanding establishes the City of Arcadia Capital Reserve fund. IN WITNESS WHEREOF, the GRANTEE and the MTA have caused this MOU to be executed by their duly authorized representatives on the date noted below: GRANTEE: City of Arcadia By: "k City Manager DATE: leop/ APPROVED AS TO FORM: By: SNT,� P. 4va—_ City Attorney City of Arcadia NAME: Stephen P. Deitsch TITLE: City Attorney DATE: January 25, 2005 LOS ANGELES COUNTY LITAN TRANSHORTATION n By: ROGEf SK&BLE Chief Executive Officer DATE s 1--� to 6 i APPROVED AS TO FORM: Office of the Countv Counsel By: DE