Report Prepared by: Steven C. Son, City Engineer, Engineering Division
Title
SUBJECT: Funding Enhancement to Existing Three Street Improvement Projects for the 2017/2018 Regional Surface Transportation Program Exchange Funds; Authorization to Submit the Required Claim Form
REPORT IN BRIEF
Add additional Regional Surface Transportation (RSTP) funding to existing street improvement projects through the RSTP Exchange Funds and authorizing the filing of FY 2017/2018 claim form with Merced County Association of Governments (MCAG).
RECOMMENDATION
City Council - Adopt a motion:
A. Selecting V Street from 16th Street to 18th Street, R Street from 16th Street to 18th Street, and G Street from Child Avenue to 13th Street to be completed utilizing the FY 2017-2018 RSTP Exchange Funds; and,
B. Directing staff to complete the 2017-2018 RSTP claim form by listing the selected projects and corresponding project costs; and,
C. Adopting Resolution 2018-58, 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 2017-2018; and,
D. Authorizing the Finance Officer to make necessary budget adjustments for Fiscal Year 2018-2019.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; 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 RSTP 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.
Monies received (and the interest earned on such monies subsequent to allocation) 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
As provided for in the 2018-2019 Adopted Budget.
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 2017-2018 RSTP funds.
The City of Merced is entitled to a total of $937,856.00 in RSTP Exchange Funds through MCAG. As part of MCAG’s claim process, the City is required to submit the completed claim form containing a list of up to four projects to be funded with the exchange funds, as well as a City Council Resolution authorizing the RSTP Claim.
Staff recommends the projects below be completed utilizing the FY 2017-2018 RSTP Exchange Funds:
• V Street from 16th Street to 18th Street in the amount of $ 410,000
• R Street from 16th Street to 18th Street in the amount of $ 307,856
• G Street from Child Avenue to 13th Street in the amount of $ 220,000
The funding enhancement that is being recommended is in addition to existing funding allocated by the Council in fiscal years 2013/14, 2014/15, and 2017/18. With the understanding that the cost of materials as seen an increase of approximately 25% over the past months, staff have revised cost estimates for these three projects. Staff will complete the design and go out to bid, targeting construction for Spring of 2019. Upon approval of the allocation by the Council, the total RSTP funding for these projects will be as follows:
• Total project funding for V Street from 16th Street to 18th Street will be for $ 673,000
• Total project funding for R Street from 16th Street to 18th Street will be for $ 757,856
• Total project funding for G Street from Child Avenue to 13th Street will be for $ 650,000
IMPACT ON CITY RESOURCES
Staff is seeking Council direction to select which projects will be completed utilizing the RSTP exchange funds. Per the requirements of the RSTP claim form agreement, once the projects are listed on the RSTP claim, the City is obligated to complete the projects or return the unspent exchange funds to MCAG. The claim form must be approved by resolution and submitted to MCAG in order for the City to receive its share of the RSTP funds.
ATTACHMENTS
1. Resolution
2. Apportionments
3. Claim Form
4. MCAG Letter
5. Vicinity Map