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"' <br />3. Distribute to the CITY the portion of funds to be spent on planning and construction of <br />bicycle and pedestrian projects as allocated and guided by the rules described in <br />Exhibit B, attached hereto and by reference made a part of this AGREEMENT, as said <br />rules maybe amended from time to time. <br />4. Provide an annual projection of Measure B sales tax revenues including an estimate to <br />CITY for each type of fund for the new fiscal year on a cash basis of reporting. <br />5. Report the amount of Measure B Program revenues passed through to each CITY by <br />each type of fund for the fiscal year and for the total Program to date, on a cash basis. <br />6. Provide for an independent annual audit of its revenues and expenditures including the <br />allocation formula for distributing Measure B sales tax revenues to CITY and render <br />an annual report to the ACTIA Governing Board and to the Citizens Watchdog <br />Committee within 180 days following the close of the fiscal year. <br />7. Provide notice to the CITY of any and all expenditures made by CITY which are not <br />in compliance with the AGREEMENT, the Plan or the Measure B ballot measure <br />promptly after ACTIA becomes aware of any such expenditures. <br />The CITY agrees that it shall: <br />1. Expend the local streets and roads funds according to the applicable provisions of <br />Public Utilities Code Section 180000 et seq., the Plan, and the rules described in <br />Exhibit A. <br />2. Establish a CITY program to expand and enhance bicycle and pedestrian safety and <br />facilities in its CITY, focusing on high priority projects like gap closures and <br />intermodal connections, and expend said funds according to the rules described in <br />Exhibit B. <br />C:ATEMP~ACTIA-CITY-San Leandroagree.doc Page 3 of 11 <br />