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<br />, <br /> <br />. 'J, <br /> <br />Agreement No. D07-159 <br /> <br />will be made from the County Road Fund for expenditures upon City streets, bridges and <br />culverts in cities within the County. <br /> <br />G. The County's City Aid Program (CAP) provides the guidelines for CAP, and is <br />incorporated by reference and made a part of this Agreement. <br /> <br />SECTION I <br /> <br />IT IS MUTUALLY UNDERSTOOD BY THE PARTIES THAT: <br /> <br />County shall: <br /> <br />A. Distribute city aid allocation(s) per requirements of this agreement, the CAP, and <br />Exhibit B. CAP allocations to cities shall be based on each city's population as of January 2007 <br />information published by Demographic Research Unit of the California Department of Finance. <br /> <br />B. Distribute city aid allocation(s) to cities, on a first come first serve basis, after <br />receiving invoice along with proof of award documentation from the City for its project(s). Each <br />City project will require invoice and proof of award documentation. The allocation will be based <br />on City's invoice amount, which can include design, construction and construction <br />administration costs. County will not begin disbursing allocations until County has received its <br />first Prop. 42 allocation from the State for fiscal year 08/09. After County has received its first <br />Prop. 42 allocation, County will disburse an allocation to the City upon receipt of award <br />documents. County CAP allocations are entirely subject to Prop. 42 allocations to County from <br />the State including any delays or changes in State law, rules, regulations, and guidelines. <br /> <br />C. Coordinate with Cities on CAP projects. County's Director of Public Works or <br />designee can authorize the substitution of CAP project(s) listed on Exhibit A to maximize full <br />expenditure of the City's CAP allocation(s). The City must make this request in writing, and the <br />proposed new project(s) shall be eligible for Prop. 42 funds and shall not exceed the Board <br />approved City CAP allocation(s). <br /> <br />D. Make every effort to expend any CAP funds returned to the County by the City if <br />City returns funds in a timely manner. However, funds cannot be expended by the County; they <br />shall be returned to the State. <br /> <br />E. Review Annual CAP expenditure certification submitted by City (City's submittal <br />will be no later than August 31 of each year). This certification is a list of completed projects <br />and a statement that each project meets Prop. 42 requirements and is in compliance with the <br />purposes of CAP (See CAP for sample of certification). City is responsible for ensuring that all <br />projects meet CAP and Prop. 42 eligibility requirements and have expended such funds in the <br />appropriate fiscal year. <br /> <br />F. Conduct a City expenditure assessment each year to verify if City is expending its <br />CAP funds in the timeframe contemplated under this Agreement. <br /> <br />Page 2 of7 <br />