Report Prepared by: Laura Ivancich, Management Analyst, Engineering Department
Title
SUBJECT: Selection of Eligible Roadway and Safety Projects and Adoption of a Resolution Authorizing the City Manager to File the Regional Surface Transportation Program (RSTP) Exchange Fund Claim in the Amount of $1,374,632 for Fiscal Year 2025-2026
REPORT IN BRIEF
Considers selecting the R Street (Olive to Northwood) Project (CP220050) as Eligible Projects and authorizes staff to complete the Regional Surface Transportation Program (RSTP) Claim Form in the total amount of $1,374,632 for submittal to Merced County Association of Governments (MCAG).
RECOMMENDATION
City Council - Adopt a motion:
A. Selecting the R Street (Olive to Northwood) Project (CP220050) as the Eligible Project; and,
B. Directing Staff to complete the 2025-2026 RSTP Claim Form by listing the selected projects and corresponding project costs; and,
C. Adopting Resolution 2026-41, a Resolution of the City Council of the City of Merced, California, authorizing the City Manager to file the Regional Surface Transportation Program (RSTP) Exchange Funds claim for fiscal year 2025-2026; and,
D. Authorizing Finance Officer to make the necessary budget amendment to reconcile the RSTP estimated budget amount to match the actual claim amount; and,
E. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to modifications by City Council; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
The Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU) provides for the exchange of Local Un-obligated funds through MCAG per the Caltrans agreement.
Projects to be funded with this claim are only those projects that are defined under Section 133(b) and 133(c) of title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(I) of the Streets and Highway Code.
Funding received, and the interest earned, must be used only for the purposes for which the claim is approved. If the claimant fails to use funds received in accordance with the terms of the agreement, the exchange funds must be returned to MCAG.
CITY COUNCIL PRIORITIES
Addresses City Council Priorities for local roads/sidewalks/traffic/safety.
DISCUSSION
The Regional Surface Transportation Program (RSTP) portion of the Federal SAFETEA-LU Act provides for revenues and allocations to local agencies. Merced County Association of Governments (MCAG) has received authorization from Caltrans providing for fund distribution in a two-tier process. The funds allocated to the City through MCAG represent a City "Lifeline" apportionment with the remainder of the funds to be allocated by MCAG based on a mutually acceptable allocation formula.
The MCAG Board has adopted a formula based on population by jurisdiction. A summary of the apportionments is shown in Attachment 2. MCAG, on behalf of the local agencies, has entered into an agreement with Caltrans to exchange the Local Un-obligated balance of the 2025-2026 RSTP funds.
City of Merced’s exchange funds apportionment claim for Fiscal Year 2025-2026 will be $1,374,632. This exchange will then allow these funds to be spent on local projects and rehabilitation activities in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.
The R Street (Olive to Northwood) project has almost completed design and is being prepared to bid soon. The project consists of adding a secondary left turn lane on R Street going North and turning West on Olive Avenue, a new multiuse path, bike lanes, storm drainage, and road resurfacing.
It is recommended that the 2025-2026 allocation be allocated to the following project:
1. The R Street (Olive to Northwood) Project (CP220050) - $1,374,632
This project meets the guidelines for road classifications necessary to be eligible for funding purposes.
Staff is seeking Council approval on the recommended project to utilize the RSTP exchanged funds. Per the requirements of the RSTP claim form agreement, once the project is listed on the RSTP claim, the City is obligated to complete the project or return the unspent exchange funds to MCAG.
IMPACT ON CITY RESOURCES
CP220050 is established as a Capital Improvement Project and staff is requesting to allocate the FY 25/26 RSTP claim of $1,374,632 to the project CP220050 budget.
This item requires five affirmative votes for City Council approval.
ATTACHMENTS
1. RSTP Resolution 2026-41
2. MCAG Adopted Resolution
3. MCAG RSTP Apportionment Distribution