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CVAG/TUMF Program 13AGREEMENT BETWEEN THE COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS AND THE CITY OF LA QUINTA FOR ESTABLISHMENT OF TUMF PROGRAM This Agreement is made and entered into on FUBROARy 5 , 2013 between the Coachella Valley Association of Governments ("CVAG") and the City of La Quinta ("City"). Each of the parties to this agreement is a governmental entity empowered to enter into an Agreement of this type. This Agreement is made in reference to the following facts and circumstances. RECITALS On or about June 26, 1989, the City, in conjunction with other jurisdictions in the Coachella Valley, entered into an Implementation Agreement, authorizing CVAG to manage and administer the Regional Transportation Program for the Coachella Valley; On or about February 2, 2010, the City, in conjunction with those same jurisdictions in the Coachella Valley, extended the Implementation Agreement authorizing CVAG to continue to manage and administer the Regional Transportation Program for the Coachella Valley through calendar year 2038; Pursuant to the terms of the Implementation Agreement and as a condition to the receipt of its share of the local portion of Measure "A" funds, each city was required to adopt and maintain a Transportation Uniform Mitigation Fee ("TUMF") to be administered by CVAG under the terms of the Implementation Agreement; The City had never adopted nor maintained a TUMF program, thereby forfeiting its share of the local portion of Measure "A"; The City now desires to establish the TUMF program within its jurisdiction so as to become eligible to receive its share of the local portion of Measure "A" funds; Now, therefore, in consideration of the following, the parties hereto do establish as follows: 1 1.0 ESTABLISHMENT OF TUMF 1.1 City shall adopt the Model TUMF Ordinance, to be effective on or about April 22, 2013, or as soon thereafter as notice requirements may permit, and thereafter collect all TUMF provided therefor consistent with the Ordinance, Implementation Agreement and all applicable CVAG policies. 1.2 City and CVAG agree that the estimated TUMF, plus shortfalls, discrepancies and interest due to CVAG as calculated through June 30, 2012 is $5,528,997 (collectively the estimated "TUMF Shortfall"). City and CVAG agree the "TUMF Shortfall" will be recalculated as of the date the TUMF is in full effect at the City of La Quinta and payment of the recalculated "TUMF Shortfall" amount will be a condition of allowing City to become established in the TUMF Program. 1.3 Interest on the TUMF Shortfall shall accrue at the rate for the Local Agency Investment Fund ("LAIF"), as determined on July 15t of each year. Said interest shall accrue on the balance of the unpaid TUMF Shortfall until the entire amount due, including interest, is fully paid. 1.4 City agrees that CVAG shall apply fifty percent (50%) of City's share of local Measure "A" funds toward the TUMF Shortfall, including interest accruing thereon, until such time as all such sums have been paid in full. At the City's option, the City may choose at some point to pay the outstanding TUMF Shortfall in a lump sum and thereby avoid the requirement to pay interest on the outstanding amount. 1.5 Until such time as the TUMF Shortfall, including interest thereon, is repaid by the City to the TUMF program, CVAG shall retain 50% of the City's share of the local portion of Measure "A" funds, apply the retained monies toward the sums owing hereunder, and forward to the City only the remaining 50% of the City's share of local Measure "A" funds. 1.6 City agrees to collect and transmit to CVAG all TUMF assessed in accordance with the terms of the Implementation Agreement, the adopted Model TUMF ordinance, and applicable CVAG policy. 1.7 City agrees to allow an annual audit of its TUMF program as required in the case of all cities participating in the TUMF program. Upon successful and continued compliance with the terms of this Agreement, City shall be entitled to participate in the 7 TUMF program in accordance with the terms of the adopted TUMF Ordinance, the Implementation Agreement and all applicable CVAG policies. 1.8 CVAG shall provide City with a monthly accounting of local Measure "A" funds applied to the amount due CVAG from the City pursuant to the terms of this Agreement. 2.0 PERIOD OF AGREEMENT 2.1. This Agreement shall continue in effect until such time as the City has repaid the entire TUMF Shortfall, together with interest accruing thereon, as set forth above. 3.0 CONFLICTING PROVISIONS- 3.1 In the event that provisions of any exhibit conflict in any way with the provisions set forth in this Agreement, the language, terms and conditions contained in this Agreement shall control the actions and obligations of the parties and the interpretation of the parties' understanding concerning the performance of the services. 4.0. AMENDMENT 4.1. In the event that the parties determine that the provisions of this Agreement should be altered, the parties shall execute a contract amendment to add any provision to this Agreement, or delete or amend any provision of this Agreement. All such amendments must be in the form of a written instrument signed by the original signatories to this Agreement, or their successors or designees. 5.0. ATTORNEYS' FEES 5.1. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys' fees and costs of suit. 3 6.0 COMPLIANCE WITH LAWS, RULES AND REGULATIONS 6.1 All of the obligations performed pursuant to this Agreement shall be performed in accordance with and in full compliance of all applicable federal, state and local statutes, rules and regulations. 7.0 NOTIFICATION 7.1 All notices hereunder and communications with respect to this Agreement shall be effective upon the mailing thereof by registered or certified mail, return receipt requested, and postage prepaid to the persons named below: If to CVAG: Tom Kirk, Executive Director Coachella Valley Association of Governments 73-710 Fred Waring Dr., Ste. 200 Palm Desert, CA 92260 If to La Quinta: Frank J. Spevacek, City Manager City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 8.0 GOVERNING LAW 8.1 This Agreement shall be binding on and shall be for the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns, and shall be governed by the laws of the State of California. 9.0 ENTIRE AGREEMENT 9.1 This Agreement contains the entire understanding between the parties relating to the subject hereof. All prior or contemporaneous agreements, understandings, 4 representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective officers thereunto duly authorized on the day and year first mentioned above. COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS By: Jose a Coninck CVAG Chairman Approved as to form: By: ; oni Eggebraaten CVAG General Counsel CITY OF LA QUINTA Iffil ��..! Don Adblph Mayor