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HomeMy WebLinkAbout2008/03/18 Item 6 CITY COUNCIL AGENDA STATEMENT ! 3/18/08, Item~ ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CITY STAFF TO SUBMIT CIP STL335 PAVEMENT REHABILITATION FY 07-08 TO THE CALIFORNIA DEPARTMENT OF FINANCE IN ORDER TO RECEIVE PROPOSITION 1B FUNDS AND APPROPRIATING $3,662,769.41 IN PROPOSITION 1B FUNDS TO CIP STL335 SUBMITTED BY: REVIEWED BY: DIRECTOR OF ENGn/) G AND GENERAL SERVICE~ CITY MANAGER r" j ASSISTANT CITY NAGER ~ 4/5THS VOTE: YES [g] NO 0 SUMMARY In order to appropriate and spend the City share of Proposition lB transportation funding, the City is required by the California Department of Finance to have Council approval for the appropriation of funds for a proj ect permitted by this legislation. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable DISCUSSION Proposition 1B was adopted by California voters in November 2006. This proposition authorized a $20 billion State bond issue for the following transportation purposes: . Congestion Reduction, Highway and Local Road Improvements: $11.25 billion . Public Transportation: $4.0 billion 6-1 3/18/08, Item~ Page 2 of2 · Goods Movement and Air Quality: $3.2 billion · Safety and Security: $1.475 billion The funding allocated to improving local roads totaled $2.0 billion. Uses for these funds include street pavement maintenance, rehabilitation, installation, construction and reconstruction of associated facilities, as well as transit and safety projects. Half of this amount was to be allocated to counties, while the other half would be allocated to cities, generally in proportion to their population. Subsequent legislation specified that $950 million of this allocation be appropriated for distribution in Fiscal Year 2007-08. Based on information available from the League of California Cities and the California Department of Finance in Spring 2007, staff believed that the City of Chula Vista would be eligible to receive $3.5 million in funds from Proposition IE in Fiscal Year 2007-08. In the Fiscal Year 2007-08 Capital Improvement Program (CIP) Budget, $3.5 million was included as the contribution from Proposition IE to finance STL335, Pavement Rehabilitation FY07-08. The total project amount was $10,800,000 (Attachment I). Staff has recently received a letter dated January 15, 2008 from the California Department of Finance providing instructions to California cities and counties for the receipt of local streets and roads financing (Attachment 2). The list attached to the letter states that the City is eligible to receive $3,662,769.41 in Fiscal Year 2007-08. As the letter states, each City or County must approve a plan for use of the funds available in 2007-08 and e-mail this information to the State Department of Finance on the State's spreadsheet. Specific locations are not required for pavement rehabilitation projects, which includes seals and resurfacing, including full or partial reconstruction. In order to receive the entire allocation in Fiscal Year 2007-08, Council needs to approve a project which includes the entire amount. State staff has verbally indicated that it is acceptable for a project using Proposition IB funds to have more than one funding source. However, no money can be spent for that project until the spreadsheet is submitted to the State. Funds have not yet been expended for this project. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that the decision concerns repairs, replacement, or maintenance of existing streets or similar facilities and, therefore, there is not a material financial effect of the decision on the property holdings of the City Council Members pursuant to California Code of Regulations sections 18704.2(b)(2) and 18705.2(b)(1) FISCAL IMPACT Adoption of this resolution will not impact the City's General fund. It will increase funding for this CIP project by $162,769.41. Since cities can only amend the spreadsheet once a year, adoption of this resolution will also enable the City to spend its entire Proposition IB allocation this Fiscal Year. ATTACHMENTS 1. Fiscal Year 2007-08 Capital Improvement Program Detail for ST1335 2. January 15,2008 letter from California Department of Finance Prepared by: Elizabeth Chopp. Senior Civil Engineer. ~eering and General Services Dept. :::! ~ ~ :i! ~ ~()) cnO -Q: >~ s~ ~~ U:i! u..~ 00 ~g: U::e - -.I ~ 1i: ~ '0 01;" - ... I.!M 0 0 ... ... 0 0 - ... ':''' c ~t ... l' c 0 e c c e 0 0 e. e' 0 e c c e ~ M '" M ,.... Q - - ~ ... Ii Ii ' ~ e ~~ ... c o ~ . 0 00 0 o e c' 0" 0 0 co ~ M '" M ,... Q ... ... ~ ... '" w " 0: ::l 0 ., '" .... z '" w U z '" - '" z "- z -' .. 0 ~ ~ Z 0: g ii: "- .... '" ~ '" c ~ .~ N ... - . - - e ;!'~~ N > u.. - c 0 S. '" o ,f)' - ... ... ... 6 - co N > u.. .. i~~iil .. 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'::'i'....."1- { A ~ '" 1111" o '" "" DE:PARTME:NT DF ~.C"CR~" FIN A NeE ClFF"ICE OF THE DIRECTOR ATTACHMENT z. ARNOLD SCHWARZENEGGER, GOVERNOR STATE; CAPITOL. R.OOM I 1 4S . SACRAME;NTO CA . 9'3S 1 4-499S . WWW.OCF.CA.GCV January 15, 2008 Dear County or City Official: Subject: Instructions for Receipt of Proposition 1 B-Local Streets and Roads Improvement, Congestion Relief, and Traffic Safety Account Funds. Proposition 1 B (Prop 1 B) provided $19.925 billion in bond funds for a variety of transportation priorities, including $2 billion for cities and counties to fund the maintenance and improvement of local transportation facilities. The 2007 Budget Act and Chapter 181, Statutes of 2007 (SB 88), appropriate a total of $950 million of these Prop 1 B funds in 2007-08. Of this amount, Chapter 314, Statutes of 2007 (AB 196), specifies that $550 million be allocated to cities and $400 million be allocated to counties. The share that your city or county is allocated is determined by the State Controller's Office (SCO), with county shares being calculated based on the number of registered vehicles and the number miles of road in the county, and the county and city being calculated based on popuiation, except that each city is to get a minimum of $400,000. In order to receive these funds, counties and cities must first submit a plan to the Department of Finance (Finance), and Finance will notify the SCO which counties and cities have met this reporting requirement at least monthly. This letter is first being distributed in an e-mail to all cities and counties using contact lists provided by the California State Association of Counties and the League of California Cities. With this letter are several attachments. Attachments I and II are lists from the SCO showing the amount that each county and city will receive from the $950 million appropriated in 2007-08. Attachment III is a spreadsheet with five tabs for reporting to Finance. Specified information from all county and city plans is to be entered into these spreadsheets and returned to Finance electronically. The first tab includes a set of instructions for entering the data into the other spreadsheets. There is a tab for general information and separate tabs for each entity to reflect its planned use of these funds for maintenance, minor projects, and major projects. This spreadsheet will also be available on Finance's website, www.dof.ca.gov. in the event that there are any counties and cities that do not receive the initial e-mails. However, all plans must still be submitted electronically bye-mailing the completed spreadsheet to Finance. To receive funds, each county board of supervisors or city council must approve a plan for use of the amount of funds available in 2007-08 for the county or city as determined by the SCO. After the date of this action has been entered into the appropriate place in the spreadsheet, and all the information required about the plan has been entered in the designated places in the spreadsheet, the submitting official must change the name of the file to reflect the county or city that is submitting the plan, and then must e-mail this spreadsheet as an attachment to Finance at: Prop1 B_LSR@dof.ca.gov. Finance will review each plan for completeness, and will then notify the SCO which completed plans are received. We cannot accept hard copy versions or altered spreadsheets as the data submitted by local entities will eventually be uploaded to a standardized display on the state bond accountability website. 6-4 -2- While subdivision (I) of Section 8879.23 of the Government Code (Prop 1 B) provides for the funds to be used for a broad range of purposes, the purposes are not unlimited and are also subject to relevant provisions of general state bond law incorporated by reference in Prop 1 B. Finance will not review plans for legal uses or provide advice as to the legality of specific uses of these funds. If you have questions about specific uses of funds, we suggest you seek advice of counsel. At the end of each fiscal year, we anticipate e-mailing a new spreadsheet to every county and city to reflect any updates to the plans, report on progress, and provide new plans for the use of any new Prop 1 B funds provided in the most recent Budget Act. Counties and cities will be required to submit these spreadsheets with updated and new plans electronically to the e-mail address noted above. We may also provide updated direction regarding this program periodically throughout the year. We ask that updated plans be submitted only once a year, since we are not staffed to be able to review more than one update per year. SB 88 and AB 196 provide that counties and cities must provide Finance with the following: 1. A list of projects expected to be funded with bond funds pursuant to an adopted local budget. 2. A description and location of each project. 3. The amount spent on each project. 4. The completion date of each project. 5. The useful life of each project. Additionally, the Governor has directed state departments, including Finance, to be accountable to the public for bond fund uses through Executive Order S-02-07, and further directed Finance to provide additional information in his signing message for SB 88. Based on this direction and SB 88, we are providing the following guidance for purposes of reporting to Finance: . Maintenance activities can be combined together into one or more categories for purposes of project reporting. The categories that are optional to report are displayed on Attachment III. In addition to the dollar amount of the grant to be spent on maintenance, we are requesting that recipients provide information on the impact of the bond funds on backlogs in lane miles and dollars, and on balances of funding for maintenance in the road fund. . Minor projects, each with a total cost of less than $400,000, can be combined into one project for purposes of reporting. . Projects exceeding $400,000 in total cost must be separately reported. . While not statutorily required, we are requesting bond fund recipients to provide project budget and schedule information as well as expected project benefits with the list of projects as shown in Attachment III. . Agencies are required to report annually on project completions and project status as shown on Attachment III. The accuracy and completeness of information provided to Finance is the responsibility of each agency and is subject to audit. Agencies not reporting requested information or submitting reports in which the information appears to be in error will be contacted by Finance staff and asked to correct or complete the information. Minimum required information must be accurately entered on the spreadsheet in order to receive funds. Once a plan has been approved, all information reported, including requested information that is not required to obtain funds, will be 6-5 -3- posted on the state's bond accountability website. Since a standardized display will be used, any information not submitted will be identifiable. All agencies are requested to provide a website or e-mail address where citizens can get additional information or ask questions about individual projects or plans. It may be possible in the future to accommodate local entities that wish to post maps, pictures or more text than can be initially accepted. Once your initial project information has been received and approved as to form by Finance staff, we will transmit that information to the SCO so that your grant disbursement can be made. The minimum information to receive approval for payment is shown on Attachment III. Please note the following when completing the reporting format: . Please limit descriptions to no more than 25 words. (Fields will automatically adjust to the size of the text.) . Please remember that the purpose of submitting the plans in this electronic format is so that they can be easily understood by the public who will be using the state's bond accountability website. Please make sure that plans and descriptions read in a clear and understandable way. . Please do not attempt to change any of the fields or formats in any way. The sheets are designed to feed into a data base that requires the existing formatting parameters. The SCO has indicated that it intends to make payments once a month to any entities which have submitted plans within the previous month. Please provide payment advice directly to SCOat: Bill Byall State Controller's Office PO Box 942850 Sacramento, CA 94250 (916) 323-0740 If you have questions or need additional information or assistance please call Jim Parks or Mark Tollefson at (916) 322-2263 for technical help with the spreadsheet, or Mark Monroe, Principal Program Budget Analyst at the same number for program help. For information on payments at the SCO, please call Bill Byall at the number shown above. Thank you for your participation in this program, we look forward to seeing your efforts on the ground very soon. MICHAEL C. GENEST Director By: Isl Vincent P. Brown VINCENT P. BROWN Chief Deputy Director Attachment cc: Jim Bourgart, Deputy Secretary of Transportation & Infrastructure, Business Transportation & Housing Agency Kelly Martel, Local Apportionments, State Controller's Office 6-6 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CITY STAFF TO SUBMIT CIP STL335 PAVEMENT REHABILITATION FY 07-08 TO THE CALIFORNIA DEPARTMENT OF FINANCE IN ORDER TO RECENE PROPOSITION 1B FUNDS AND APPROPRIATING $3,662,769.41 IN PROPOSITION 1B FUNDS TO CIP STL335 WHEREAS, Proposition 1B was adopted by California voters in November 2006; and WHEREAS, Proposition 1B provided $19.925 billion in bond funds for a variety of transportation priorities including the maintenance and improvement of local transportation facilities; and WHEREAS, a portion of the Proposition 1B funds has been appropriated for cities; and WHEREAS, in order to receive Proposition 1B funds, the City must submit a list of projects expected to be funded with Proposition 1B funds to the California Department of Finance; and WHEREAS, all projects proposed to be funded with Proposition IB funds must be included in the City budget that is adopted by the City Council at a regular public meeting; and WHEREAS, Capital Improvement Program (CIP) STL335 was included in the Fiscal Year 2007 -08 CIP Budget approved by City Council; and WHEREAS, in the Fiscal Year 2007-08 CIP Budget, $3.5 million was included as the anticipated contribution from Proposition 1B funds to finance STL335, Pavement Rehabilitation FY07-08; and WHEREAS, the City received notification from the California Department of Finance that the City is eligible to receive $3,662,769.41 in Proposition 1B funds in Fiscal Year 2007-08. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as follows: 1. That it authorizes staff to submit CIP STL335, Pavement Rehabilitation FY07-08, to the California Department of Finance in order to receive Proposition 1B funds. 2. That it appropriates $3,662,769.41 in Proposition B1 funds to CIP STL335, Pavement Rehabilitation FY07-08. 6-7 Presented by Jack Griffin Engineering and General Services Director Approved as to form by '.~~ J- ~~ r Ann Moore City Attorney H:\ENGINEER\RESOS\Resos2008\03_18_08\Prop IB Funding tor STL335 revised by ec.doc 6-8