Report Prepared by: Stephanie Dietz, Assistant City Manager
Title
SUBJECT: Master Recipient Funding Agreement with Merced County Association of Governments to Receive Measure V Funds
REPORT IN BRIEF
Consider authorizing a Master Recipient Funding Agreement with Merced County Association of Governments to receive Measure V funds.
RECOMMENDATION
City Council - Adopt a motion approving the Master Recipient Funding Agreement with Merced County Association of Governments; and, authorizing the City Manager or 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
As provided for in the 2017-18 Adopted Budget.
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 for the City of Merced to receive regular apportionments of Measure V funding, the City Council must adopt the attached Master Recipient Funding Agreement.
The Master Recipient 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 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.
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 the supplemental fund will receive $1,248,132 and the alternative transportation fund will receive $312,033 for a total of $1,560,165 annually.
In order to help the City Council develop a comprehensive list of roads, sidewalk, bike paths and other projects, staff are developing a Pavement Management Plan and Active Transportation Plan. These plans will be presented to the community and Council for input and recommendations. Funds will be allocated to projects upon the approval of a priority list by the Council.
IMPACT ON CITY RESOURCES
Two separate funds have been established to receive and administer Measure V funding. Funds have been appropriated in “Projects to Be Determined” and will be allocated to specific projects once identified and approved by the City Council.
ATTACHMENTS
1. Master Recipient Funding Agreement