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 $1,318,873 for Fiscal Year 2024-2025
REPORT IN BRIEF
Considers selecting the McKee Road Rehab Project (CP260036) as Eligible Projects and authorizes staff to complete the Regional Surface Transportation Program (RSTP) Claim Form in the total amount of $1,318,873 for submittal to Merced County Association of Governments (MCAG).
RECOMMENDATION
City Council - Adopt a motion:
A. Selecting the McKee Road Rehab Project (CP260036) as the Eligible Project; and,
B. Directing Staff to complete the 2024-2025 RSTP Claim Form by listing the selected projects and corresponding project costs; and,
C. Adopting Resolution 2025-58, 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 2024-2025; 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 2024-2025 RSTP funds.
City of Merced’s exchange funds apportionment claim for Fiscal Year 2024-2025 will be $1,318,873. 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.
It is recommended that the 2024-2025 allocation be allocated to the following project:
1. The McKee Road Rehab Project (CP260036) - $1,318,873
The City of Merced would be partnering with Merced County to rehabilitate McKee Road from Santa Fe Avenue to Yosemite Avenue. The City would be funding only the segments within city limits between north Bear Creek Drive and Yosemite Avenue.
Staff will bring back a Memorandum of Understanding with Merced County to perform the paving and roadway improvements for said project for Council’s consideration.
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
The City Council approved and adopted Fiscal Year 25-26 budget to include CP260036-McKee Road Rehab project in the amount of $1,250,000 being funded with the FY 24-25 RSTP claim. The actual FY 24-25 RSTP allocation is $1,318,873. Staff is requesting the additional $68,873 of RSTP funds also be allocated to the McKee Road Rehab project
This item requires five affirmative votes for City Council approval.
ATTACHMENTS
1. RSTP Resolution 2025-58
2. MCAG Adopted Resolution
3. MCAG RSTP Apportionment Distribution