Report Prepared by: Michael R. Beltran II, PE, City Engineer
Title
SUBJECT: Measure V Regional Project Funding Agreements with Merced County Association of Governments to Receive Measure V Funds for the Highway 59 Widening Phase 1 (Agreement No. 20180913SD_L) and Highway 59 Black Rascal Bridge Project (Agreement No. 20180913SD_M)
REPORT IN BRIEF
Consider authorizing a Measure V Regional Funding Agreements with Merced County Association of Governments to receive Measure V Regional funds for the Highway 59 Widening Phase 1 and Highway 59 Black Rascal Bridge Projects.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Measure V Regional Funding Agreement for the Highway 59 Widening Phase 1; and,
B. Approving the Measure V Regional Funding Agreement for the Highway 59 Black Rascal Bridge Project, with Merced County Association of Governments; and,
C. Authorizing the use of pooled cash for expenditures until City receives reimbursement funds; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments; and,
E. Authorizing the City Manager or the Assistant City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or
2. Deny; or,
3. Refer to Staff for further evaluation.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
Addresses Council’s priority of widening Highway 59 from 16th Street through the Bridges at Black Rascal Creek.
DISCUSSION
On November 8, 2016, the voters of Merced County approved “Measure V”, a one-half cent sales transaction and use tax to supplement transportation roads and alternative transportation project funding. The Measure V transportation sales tax will be in place for 30 years, expiring on March 31, 2047. The Merced County Association of Governments (MCAG) will administer the apportionment of sales tax funds to the County, six Cities and the agreed upon regional areas within Merced County. In order to allow the City of Merced to receive the Regional Funding apportionments of Measure V funding, the City Council must adopt the attached Measure V Regional Funding Agreements.
As part of the Measure V ½ Cent Transportation Sates Tax, 44% of the Transportation Measure funds will be allocated to Regional Projects which are to be established in the adopted Regional Transportation Plan (RTP) approved by the MCAG Governing Board. Regional Projects are to provide for the movement of goods, services and people throughout Merced County and should benefit multiple jurisdictions.
27% of the total is for an Eastside share, to be spent on projects east of the San Joaquin River.
17% of the total is for a Westside share, to be spent on projects west of the San Joaquin River.
The dividing line between Eastside and Westside shares is the San Joaquin River. Two committees will be created to recommend projects:
The Eastside Regional Projects Committee will consist of one council person from each City that includes area east of the San Joaquin River and each County Supervisor whose district includes area east of the River.
The Westside Regional Projects Committee will consist of one council person from each City that includes area west of the San Joaquin River and each County Supervisor whose district includes area west of the River.
MCAG, As the Local Transportation Authority overseeing the funds, the Governing Board of Merced County Association of Governments has the authority to approve recommendations made by the Regional Projects Committees. Notwithstanding the foregoing, the MCAG Governing Board shall not approve a project that has not been recommended by a Regional Projects Committee.
In 2018, at the request of MCAG, staff provided a list of potential regional candidate projects for consideration. Due to the number of projects submitted and the limited funding available, MCAG sought to prioritize the various projects. A technical group was formed to evaluate and vet the many projects and to provide feedback to the respective project committees.
The Measure V Regional Funding Agreements outlines how funds will be apportioned to, what the regional funds can be used for, and the responsibilities of MCAG and the City in programming funds for projects. One-half of the total Measure V funding will be allocated to each jurisdiction through three methods: an annual base allocation and proportional shares of population and approved road miles. The remaining funds will be allocated to regional projects, with a minimum annual amount allocated to transit projects and to the administration of the measure. These agreements shall be from the date of execution to sixty (60) days following the completion of the Scope of Work as described in the agreement.
The City will be reimbursed no later than thirty (30) days following the submission of invoices to MCAG for allowed project costs. The Agreement for the Highway 59 Phase 1 Widening is for $5,944,580 and for Highway 59 Black Rascal Bridge Project is $4,090,000.
History and Past Actions
On April 16, 2018, City Council approved the prioritization of Highway 59 from 16th Street to Yosemite Avenue. Specifically, prioritized in the following order:
1. Widening of Bridges over Black Rascal Creek;
2. Widening of Roadway from 16th Street to Olive Avenue; and,
3. Olive Avenue to Yosemite Avenue.
IMPACT ON CITY RESOURCES
Funding for these two projects is on a reimbursement basis. City pooled cash will be used to cover expenditures first until reimbursement is received from MCAG. The expenditures and reimbursements of Measure V regional projects will be tracked in Capital Improvement Fund 445 - Measure V Regional Projects.
ATTACHMENTS
1. Measure V Regional Funding Agreement for the Highway 59 Widening Phase 1
2. Measure V Regional Funding Agreement for the Highway 59 Black Rascal Bridge Project