Staff Report
PREPARED BY: MATT MORLEY
DIRECTOR OF PARKS AND PUBLIC WORKS
Reviewed by: Assistant Town Manager Town Attorney Finance
MEETING DATE: 11/01/16
ITEM NO: 3
COUNCIL AGENDA REPORT
DATE: OCTOBER 21, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: TOWNWIDE TRAFFIC SIGNAL SYSTEM UPGRADE PROJECT
A. ACCEPT A VEHICLE REGISTRATION FEE GRANT FROM THE VALLEY
TRANSPORTATION AUTHORITY TO UPGRADE TRAFFIC SIGNALS
TOWNWIDE.
B. AUTHORIZE A BUDGET ADJUSTMENT IN THE AMOUNT OF $500,000 TO
RECOGNIZE RECEIPT AND USE OF GRANT FUNDS.
C. AUTHORIZE THE TOWN MANAGER TO EXECUTE ALL FUTURE GRANT
DOCUMENTS AND AGREEMENTS WITH VTA.
RECOMMENDATIONS:
1. Accept a Vehicle Registration Fee (VRF) grant from the Valley Transportation Authority (VTA) to
upgrade traffic signals Townwide.
2. Authorize a budget adjustment in the amount of $500,000 to recognize receipt and use of grant
funds.
3. Authorize the Town Manager to execute all future grant documents and agreements with VTA.
BACKGROUND:
On August 4, 2016, the VTA Board approved the Town’s application for a VRF grant in the amount of
$500,000. The grant request was submitted within the Intelligent Transportation System component of
the grant program. Improvement to the Town’s traffic signal system will aid in reducing traffic
congestion and traffic flow inefficiencies.
DISCUSSION:
Upon final approval of the grant, Town staff will develop a detailed project based on a preliminary
scope that was developed for the grant. Project plans and specifications as well as the project contract
award(s) will be brought forward on future Council agendas at the appropriate times. The term of the
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MAYOR AND TOWN COUNCIL
SUBJECT: TOWNWIDE TRAFFIC SIGNAL SYSTEM UPGRADE PROJECT
OCTOBER 21, 2016
DISCUSSION (cont’d):
grant lasts through December 2019 and staff anticipates all associated projects to complete prior to that
deadline.
CONCLUSION:
Staff recommends that the Town Council:
1. Accept a Vehicle Registration Fee (VRF) grant from the Valley Transportation Authority (VTA) to
upgrade traffic signals Townwide.
2. Authorize a budget adjustment in the amount of $500,000 to recognize receipt and use of grant
funds.
3. Authorize the Town Manager to execute all future grant documents and agreements with VTA.
COORDINATION:
This report has been coordinated with the Finance Department.
FISCAL IMPACT:
The Town will receive grant revenue of $500,000 which will offset future project costs as identified in
the Capital Improvement Project 813-0227 titled Traffic Signal Modernization.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined under CEQA and no further action is required.
Attachment:
1. Funding Agreement
FUNDING AGREEMENT
BETWEEN THE TOWN OF LOS GATOS AND
THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR 2010 MEASURE B VEHICLE REGISTRATION FEE COUNTYWIDE
PROGRAM
This Agreement ("Funding Agreement") between the Town of Los Gatos, a California
municipal corporation, ("SPONSOR"), and the SANTA CLARA VALLEY
TRANSPORTATION AUTHORITY, a public agency, ("VTA") is made as of the date of
final execution by each party hereto.
RECITALS
A. Whereas, in November of 2010, the voters of Santa Clara County authorized a TEN
DOLLAR ($10) increase in the Vehicle Registration Fee ("VRF"), referred to
hereinafter as the "PROGRAM," for transportation -related projects and adopted an
expenditure plan which allocates the revenue to transportation -related programs and
projects that have a relationship or benefit to the persons who pay the fee; and
B. Whereas, the VTA Board of Directors has adopted administrative procedures for the
PROGRAM; and
C. Whereas, these administrative procedures state that VTA will execute program
funding agreements with project sponsors; and
D. Whereas, the PROGRAM includes a "Countywide Program" that includes Intelligent
Transportation System (ITS) technologies as an eligible project category; and
E. Whereas, on August 4, 2016, the VTA Board approved VRF ITS funds for the
Townwide Traffic Signal System Upgrade project (PROJECT); and
F. Whereas, each party hereto ("Party") desires to specify the terms and conditions
under which VRF-ITS project grants are conducted and financed.
NOW, THEREFORE, in consideration of the mutual promises contained herein, each
Party (collectively referred to as the "Parties") agrees as follows:
AGREEMENT
1. Grant of VRF Funds. VTA hereby agrees to allocate to SPONSOR, a grant
("Grant") in an amount not to exceed $500,000 ("Maximum Grant Amount"). Said
grant is provided to SPONSOR in return for SPONSOR's agreement to implement
the "PROJECT."
2. Term. The term of this Funding Agreement shall be deemed to have commenced
retroactively as of August 4, 2016 and shall continue until the earlier of: (i) the date
that the Project is completed or terminated; or (ii) the close of business on December
31, 2019.
Any requests for additional time to complete Project beyond December 31, 2019 must
be submitted in writing to VTA no later than October 1, 2019 and document that
significant progress has been made on the project. VTA may approve or deny such
requests in its sole discretion. Documentation by VTA approving any extensions for
the Project shall be sufficient approval to extend the term of this Agreement.
3. Invoicing and Payment.
a. Grantor shall submit invoices at quarterly intervals to VTA for reimbursement of
eligible costs incurred to implement the PROJECT. SPONSOR shall include
auditable back-up documentation (time sheets, bills, etc.) with each invoice.
b. VTA shall reimburse SPONSOR's PROJECT eligible costs up to the Maximum
Grant Amount. VTA will allocate to SPONSOR the VRF funds only on a cost
reimbursement basis and only for documented eligible costs of the PROJECT.
SPONSOR agrees that VRF-ITS funds will be utilized only after SPONSOR
exhausts the PROJECT'S existing funding allocation.
c. VTA shall, within twenty (20) days after receipt of an invoice that conforms to the
requirements set forth in this Funding Agreement, reimburse SPONSOR for all
eligible expenditures up to the Maximum Grant Amount.
d. SPONSOR shall submit bi-annual reports of SPONSOR'S expenditures of
PROGRAM funds and associated interest, in a form to be provided by VTA to
SPONSOR. Each report will provide PROJECT status to date and a status update
for uncompleted tasks. Reports are due from RECIPIENT to VTA no later than
April 15 and October 15 of each year as a condition of receiving funds.
SPONSOR should include photographs to document work performed as
appropriate.
4. Naming of Project Liaison. Prior to execution of this Funding Agreement,
SPONSOR shall notify VTA of the name of the SPONSOR's PROJECT liaison (the
"Liaison") and of the Liaison's address, telephone number and email address. The
Liaison shall be the liaison to VTA pertaining to implementation of this Funding
Agreement and shall be the contact for information about the PROJECT. Where
possible, SPONSOR shall notify VTA in writing of any change of Liaison or of the
Liaison's contact information no later than thirty (30) days prior to the date of any
change.
5. Maintenance of Records. SPONSOR shall maintain PROJECT financial records,
books, documents, papers, accounting records and other evidence pertaining to costs
for five (5) years after the PROJECT's completion. SPONSOR shall make such
records available to VTA upon request for review and audit purposes. Financial audits
will be performed at VTA's discretion. SPONSOR will be contacted in writing in
advance of any audit or other PROJECT review.
6. Credit of Funding Contribution. SPONSOR shall credit VTA's funding
contribution on all signage, electronic or printed materials related to the Project that
are distributed to the public. VTA shall provide a copy of VTA logos to SPONSOR
for use in complying with said obligation.
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7. Indemnities.
a. Neither VTA nor any officer or employee thereof shall be responsible for any
damage or liability occurring by reason of anything done or omitted to be done by
SPONSOR under or in connection with any work, authority or jurisdiction
delegated to VTA or SPONSOR under this Funding Agreement. Both Parties
agree that pursuant to Government Code 895.4, SPONSOR shall fully defend,
indemnify, and save harmless VTA from all suits or actions of every name, kind
and description brought on 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 SPONSOR under or in connection with any work, authority or jurisdiction
delegated to SPONSOR under this Funding Agreement. This provision shall
survive the termination of this Funding Agreement.
b. Neither SPONSOR nor any officer or employee thereof shall be responsible for
any damage or liability occurring by reason of anything done or omitted to be
done by VTA under or in connection with any work, authority or jurisdiction
delegated to SPONSOR or VTA under this Funding Agreement. Both Parties
agree that pursuant to Government Code 895.4, VTA shall fully defend,
indemnify, and save harmless SPONSOR from all suits or actions of every name,
kind and description brought on 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 VTA under or in connection with any work, authority or jurisdiction
delegated to VTA under this Funding Agreement. This provision shall survive the
termination of this Funding Agreement.
8. Changes to Terms of Agreement. No amendment, alteration or variation of the
terms of this Funding Agreement shall be valid unless made in writing and signed by
both of the parties hereto and no oral understanding or agreement not incorporated
herein shall be binding on any of the parties hereto.
9. Entire Agreement. This Funding Agreement represents the full and complete
understanding of the Parties with respect to the PROJECT. Any prior or
contemporaneous oral or written agreements by and between the Parties or their
agents and representatives with respect to the subject matter of this Funding
Agreement are revoked and extinguished hereby.
10. Assignment. SPONSOR shall not assign this Funding Agreement without the prior
written authorization of the VTA. Any assignment made in the absence of such
authorization shall be deemed void ab initio and without legal effect.
111. Binding en Successors and Assigns. This Funding Agreement shall be binding
upon each Party and any of its successors and/or assigns.
12. Notices. Each Party shall give any notice which may be required under this Funding
Agreement in writing. Such notice shall be effective when received, and shall be
given by personal service, by the U.S. Postal Service or by certified mail, to the
addresses set forth below, or to such addresses which may be specified in writing by
the Parties hereto.
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To VTA
Manager, Programming and Grants
Santa Clara Valley Transportation Authority
3331 North 1st Street
Building B2
San Jose, CA 95134
To SPONSOR:
Town Manager
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
13. Signature Authority. Each Party to this Funding Agreement represents and
warrants that each person whose signature appears hereon has been duly authorized
and has the full authority to execute this Funding Agreement on its behalf.
14. Strict Performance. The failure of either Party to insist upon the strict performance
of any of the terms, covenants and conditions of this Funding Agreement shall not be
deemed a waiver of any right or remedy that either Party may have, and shall not be
deemed a waiver of their right to require strict performance of all of the terms,
covenants, and conditions thereafter.
15. Dispute Resolution. If a question arises regarding interpretation of this Funding
Agreement or its performance, or the alleged failure of a Party to perform, the Party
raising the question or making the allegation shall give written notice thereof to the
other Party. The Parties shall promptly meet in an effort to resolve the issues raised.
If the Parties fail to resolve the issues raised, alternative forms of dispute resolution,
including mediation, may be pursued by mutual agreement. It is the intent of the
Parties to the extent possible that litigation be avoided as a method of dispute
resolution.
16. Choice of Law; Venue. This Funding Agreement shall be construed and its
performance enforced under California law. In the event that suit shall be brought by
either Party to this Funding Agreement, the Parties agree that venue shall be
exclusively vested in the State courts of the County of Santa Clara or, if federal
jurisdiction is appropriate, exclusively in the United States District Court for the
Northern District of California, in San Jose, California.
17. Interpretation of this Funding Agreement. The Parties hereto acknowledge and
agree that, although this Funding Agreement was originally drafted by VTA's legal
counsel, SPONSOR and its legal counsel have reviewed and negotiated the terms of this
Funding Agreement with the VTA. Consequently, the doctrine that ambiguities in an
agreement should be resolved against the drafting party shall not be employed in
connection with this Funding Agreement, which shall be interpreted in accordance with
its fair meaning.
18. Counterparts. This Funding Agreement may be executed in one or more
counterparts, all of which taken together shall constitute one and the same instrument.
Signatures of Parties on following page.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
shown below:
Town of Los Gatos SANTA CLARA VALLEY
(SPONSOR) TRANSPORTATION AUTHORITY (VTA)
Town Manager Nuria I. Fernandez, General Manager
Date: Date:
Approved as to Form: Approved as to Form:
Counsel \\ 1 Caroline Kim, Assistant Counsel
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