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Agreement No. D07-159 PROPOSITION 42 CITY AID PROGRAM AGREEMENT This CITY A1D PROGRAM AGREEMENT, Agreement No. D07-159 ("Agreement") is made and entered into this day of , 200_, by and between the County of Orange, California, a political subdivision of the State of California ("Cottnty"}, and the City of Santa Ana, a municipal corporation in the State of California ("City"). The County and City shall sometimes be referred to separately as a "Party" and collectively as the "Parties." RECITALS A. The California State Legislature has determined that the improvement and maintenance of all city streets is of general County interest. Likewise, the County believes that it is of general County interest to extend aid to the cities within the County for the general improvement and maintenance of City streets. B. The County desires to assist Orange County cities with the improvement and maintenance of city streets and to help improve regional transportation needs within the County. Pursuant to California Constitution Article XIX B § 1 and Revenue Taxation Code § 7104, the County receives State Proposition 42 (Prop. 42) allocations from the State's Transportation Investment Fund (TIF) and Traffic Congestion Relief Fund (TCRF) for the purposes of street and highway maintenance, rehabilitation, reconstruction and storm damage repair, which are required to be deposited in the County's Road Fund. C. Orange County cities have streets in need of routine roadway maintenance, minor roadway widening (non-capacity enhancing) and storm drain improvements, but have limited funds to address these needs. D. With authorization from the State, the County has established its Prop. 42 City Aid Program (CAP) whereby the County will provide a portion of the County's Prop. 42 funds to the cities for the purposes of routine roadway maintenance, minor roadway widening (non- capacity enhancing) and storm drain improvements within the cities. Such purposes are to be in accordance with any and all laws, rules, regulations, and guidelines governing Prop. 42 allocations ("Prop. 42 Requirements"). E. The City owns and operates streets in need of routine roadway maintenance, minor roadway widening (non capacity enhancing) and storm drain improvements, and acknowledges that it has limited fiends by which to address these needs. Therefore, the City is in support of receiving a portion of the County's Prop. 42 allocation funds through CAP. F. Pursuant to Streets & Highways Code section 1686, the Board of Supervisors has passed Resolution No. 07-109, adopted by afour-fifths vote of its members, finding that the Purposes under this Agreement are of general County interest and that County aid shall be extended therefore. This resolution provides for the basis and conditions upon which allocations Page 1 of 7 25L-3