Report Prepared by: Ken F. Elwin, PE, Director of Public Works
Title
SUBJECT: Approval of Measure V Local Funding Agreement with Merced County Association of Governments (MCAG) to Receive Measure V Funds for Fiscal Years 2020/2021 and 2021/2022
REPORT IN BRIEF
Considers authorizing a Measure V Local Funding Agreement with Merced County Association of Governments to receive Measure V funds for two consecutive fiscal years.
RECOMMENDATION
City Council - Adopt a motion approving the Measure V Local Funding Agreement with Merced County Association of Governments; and, 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 improving local roads, sidewalks, and traffic.
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 regular apportionments of Measure V funding, the City Council must adopt the attached Measure V Local Funding Agreement.
The Measure V Local Funding Agreement outlines how funds will be apportioned locally, what the local 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 an annual base allocation ($150,000) and average of 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.
The City will receive two separate allocations on a monthly basis, supplemental funding to augment roads projects and funds for alternative transportation projects. It is estimated that for FY 20/21 the supplemental fund will receive $1,051,726 and the alternative transportation fund will receive $262,931 for a total of $1,314,657.
History and Past Actions
On July 17, 2017, City Council approved the Master Recipient Funding Agreement with MCAG for receipt of Fiscal Year 2017/2018 Measure V Funds.
On May 21, 2018, City Council approved the Master Recipient Funding Agreement with MCAG for receipt of Fiscal years 2018/2019 and 2019/2020 Measure V Funds.
IMPACT ON CITY RESOURCES
Two separate funds have been established to receive and administer Measure V funding. Funds will be allocated to the Streets Department and specific projects as identified and approved by the City Council.
ATTACHMENTS
1. Measure V Local Funding Agreement
2. Memo