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HomeMy WebLinkAbout08 - Master Funding Agreement with OCTACITY OF NEWPORT BEACH City Council Staff Report July 8, 2014 Agenda Item No. 8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov PREPARED BY: Andy Tran, Senior Civil Engineer PHONE: 949- 644 -3315 TITLE: Approval of Amendment No. 2 to the Master Funding Agreement No. C -1 -2776 with Orange County Transportation Authority (OCTA) ABSTRACT: The City of Newport Beach and the Orange County Transportation Authority (OCTA) approved Master Funding Agreement No. C -1 -2776 (Agreement) in order for the City to maintain eligibility for Measure M2 competitive funds. Amendment No. 2 is required to revise the numbering systems of approved amendments and letter agreements and to make minor adjustments to the Agreement. RECOMMENDATION: Approve and execute Amendment No. 2 to Master Funding Agreement No. C -1 -2776. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: On September 13, 2011, City Council approved Master Funding Agreement No. C -1 -2776 with OCTA. In accordance with this Agreement, the City is eligible to participate in various Measure M2 competitive funding programs. OCTA administers the call for projects as funds become available. Upon successful application for Measure M2 competitive funds, the City and OCTA execute a letter agreement to include new projects that will be receiving Measure M2 competitive funds. Amendments are also required to make minor revisions to the Agreement. Amendment No. 2 is required to revise the numbering systems of approved amendments and letter agreements for consistency purposes. This amendment also includes minor adjustments to the "Delegated Authority" and "Audit and Inspection" articles as requested by OCTA's Internal Audit and General Counsel. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in 115 Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A. Amendment No. 2 to Master Funding Agreement No. C -1 -2776 116 ATTACHMENT A 1 AMENDMENT NO. 2 TO 2 MASTER FUNDING AGREEMENT NO. C -1 -2776 3 BETWEEN 4 ORANGE COUNTY TRANSPORTATION AUTHORITY 5 AND 6 CITY OF NEWPORT BEACH 7 FOR 8 M2 COMPREHENSIVE TRANSPORTATION FUNDING PROGRAMS 9 THIS AMENDMENT NO. 2 is effective this day of 2014, by and 10 between the Orange County Transportation Authority, 550 South Main Street, P.O. Box 14184, Orange, 11 California 92863 -1584, a public corporation of the State of California (hereinafter referred to as 12 "AUTHORITY "), and the City of Newport Beach, 100 Civic Center Drive, Newport Beach, CA 92660, a 13 municipal corporation (hereinafter referred to as "AGENCY ") each individually known as "Party" and 14 collectively known as the "Parties ". 15 WITNESSETH: 16 WHEREAS, by Agreement No. C -1 -2776 dated October 13, 2011, as last changed by Letter 17 Agreement No. 6 dated November 18, 2013, AUTHORITY and AGENCY entered into a Master 18 Funding Agreement that defines the specific terms and conditions and funding responsibilities between 19 AUTHORITY and AGENCY for Comprehensive Transportation Funding Programs (CTFP) and Local 20 Fair Share Program Net Revenues; 21 WHEREAS, currently Letter Agreements and Amendments to the Master Funding Agreement 22 (Amendments) are numbered sequentially as issued; and 23 WHEREAS, the Letter Agreements are sub - agreements to the Master Funding Agreement; and 24 WHEREAS, the AUTHORITY and AGENCY desire to separate the Letter Agreements from the 25 Amendments and assign separate numbering conventions to each; and 26 1 Page 1 of 4 117 AMENDMENT NO. 2 TO AGREEMENT NO. C -1 -2776 1 WHEREAS, due to the change in the numbering convention for the Letter Agreements and 2 Amendments, this Amendment No. 2 will revise the numbering for Amendments to Agreement No. C -1- 3 2776 issued to date as follows: Amendment No. 5 (Revised) dated July 1, 2013 is changed to 4 Amendment No. 1, with the subsequent Amendments to the Master Funding Agreement to be 5 numbered sequentially beginning with this Amendment No. 2; and 6 WHEREAS, the next Letter Agreement to be issued will be No. 7 with Attachment A -7; Letter 7 Agreement No. 5 and Attachment A -6 will not be used; and 8 WHEREAS, AUTHORITY is revising the audit language with no change to the maximum 9 cumulative obligation; and 10 NOW, THEREFORE, it is mutually understood and agreed by AUTHORITY and AGENCY that 11 Agreement No. C-1 -2776 is hereby amended in the following particulars only: 12 1. Amend ARTICLE 5. DELEGATED AUTHORITY, page 6 of 10, to delete in its entirety 13 and in lieu thereof insert: 14 'The actions required to be taken by AGENCY in the implementation of this Agreement are 15 delegated to its Director of Public Works, or his/her designee, and the actions required to be taken by 16 AUTHORITY in the implementation of this Agreement are delegated to AUTHORITY's Chief Executive 17 Officer or designee:' 18 2. Amend ARTICLE 6. AUDIT AND INSPECTION, page 6 of 10, last changed by 19 Amendment No. 5 (Revised) (now identified as Amendment No. 1) dated July 1, 2013, to delete in its 20 entirety and in lieu thereof insert: 21 "AUTHORITY and AGENCY shall maintain a complete set of records in accordance with 22 generally accepted accounting principles. Upon reasonable notice, AGENCY shall permit the 23 authorized representatives of the AUTHORITY to inspect and audit all work, materials, payroll, 24 contracts, books, accounts, and other data and records of AGENCY for a period of five (5) years after 25 final payment by AUTHORITY for CTFP projects. For the Local Fair Share program, upon reasonable 26 notice, AGENCY shall permit the authorized representatives of the AUTHORITY to inspect and audit all Page 2 of 4 FE1.9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 AMENDMENT NO.2 TO AGREEMENT NO. C -1 -2776 work, materials, payroll, contracts, books, accounts, and other data and records of AGENCY for a period of five (5) years after expenditure of funds or five (5) years after final payment of debt service where local fair share revenues were pledged, whichever is longer. AUTHORITY shall have the right to reproduce any such books, records, and accounts. The above provision with respect to audits shall extend to and /or be included in contracts with AGENCY's contractor(s)." 3. Amend ARTICLE 8. ADDITIONAL PROVISIONS, page 9 of 10, Paragraph L, to update AUTHORITY's contact information. To AGENCY: To AUTHORITY: City of Newport Beach Orange County Transportation Authority 100 Civic Center Drive 550 South Main Street Newport Beach, CA 92660 P.O. Box 14184 ATTENTION: David A. Webb Director of Public Works Tel: (949) 644 -3330 E -mail: dawebb @newportbeachca.gov Orange, CA 92863 -1584 ATTENTION: Michael Le Associate Contract Administrator Tel: (714) 560 — 5314 E -mail: mle1(a)octa.net Page 3 of 4 119 AMENDMENT NO. 2 TO AGREEMENT NO. C -1 -2776 1 The balance of Agreement No. C -1 -2776 remains unchanged 2 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to Agreement 3 C -1 -2776 to be executed as of the date first above written. 4 CITY OF NEWPORT BEACH ORANGE COUNTY TRANSPORTATION AUTHORITY 5 By: By: 6 Rush N. Hill, II Meena Katakia Mayor Manager, Capital Projects 7 8 ATTEST: APPROVED AS TO FO 9 By: By: 10 Leilani I. Brown Kennard R. Smart, Jr. 11 City Clerk General Counsel 12 APPROVED AS TO FORM: 13 By. 14 15 Aaron C. Harp City Att prney , Z 61 16 Dated: 17 18 19 20 21 22 23 24 25 k26 Page 4 of 4 120