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Home My WebLink About2010/06/22 Item 10 CITY COUNCIL AGENDA STATEMENT ~Wf:.. CITY OF '-~ (HULA VISTA ITEM TITLE: A. SUBMITTED BY: REVIEWED BY: 6/22/10, Item 10 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TRANSPORTATION SALES TA,X (TRANS NET) FUND RECONCILIATION AND ALLOCATION ADJUSTMENTS AND APPROPRIATING $52,743 IN AVAILABLE TRANSNET FUNDS TO EXISTING PROJECT OP202 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TRANSPORTATION DEVELOPMENT ACT (TDA) AND TRANSPORTATION EQUITY ACT (TEA) 21 FUND RECONCILIATION, TRANSFER AND ALLOCATION ADJUSTMENTS AND AUTHORIZING AN APPROPRIATION IN THE AMOUNT OF $25,344 FROM THE GENERAL FUND TO CLOSE COMPLETED PROJECTS STM334, ST922 AND ST298 kjo DIRECTOR OF PUBLIC WORKS ~ ASSISTANT D7flIRER OF ENGINEERING CITY MANAGE J ASSISTANT CITY ANAGER c:;>! 4/STHS VOTE: YES [2;] NO 0 SUMMARY Annually, the City is required to perform a reconciliation of Transportation Sales Tax (TransNet), Transportation Development Act (TDA) and Transportation Equity Act for the 21 51 Century (TEA 21) funds. Based on this year's reconciliation and review of prior-year audit recommendatIOns staff is recommending allocation adjustments of existing funds to address project deficits from available fund balances. In addition, staff is recommending an appropriation of $52,743 TransNet funus to an existing project OP202 from available TransNet fund balance and $25,344 from the General Fund to close completed projects STM334, ST922 and ST298. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 10-1 6/22/10, Item~ Page 2 of 4 RECOMMENDA TION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION TransNet is the main funding source of many' of the City's infrastructure projects such as pavement rehabilitation, sidewalk and traffic signal installation. TransNet funds are derived from sales tax revenues levied in San Diego County that are collected by the State specifically for use on transportation related projects. The regional metropolitan planning agency, San Diego Association of Governments (SANDAG) programs these funds to local municipalities. Revenues vary from year-to-year depending on the amount of sales tax available to the region and the number and costs of projects for which municipalities, local transit and Caltrans request funding. The TransNet revenue approved for cities is based on cost estimates submitted as part of the annual request for funding through the Regional Transportation Improvement Program (RTIP) program. Often these project estimates require adjustments based on actual revenue receipts, unanticipated project savings and/or unanticipated project deficits. Most recently several audit exceptions resulted because the City exceeded the 30% local agency balance threshold. As a result of holding a balance in excess of 30%, the City was unable to draw TransNet funds from SANDAG on a timely basis. TDA and TEA-21 funds also are budgeted for several infrastructure projects approved in the Citywide Capital Improvement Program. TEA-21 funds were approved in 1998 and were superseded by SAFETEA-LLU federal funds. The TDA program was enacted in 1971. TDA funds are generated from a tax of one-quarter of one percent on all retail sales in each County. In an effort to proactively address these issues, several measures have been implemented: . Recognizing that sales tax revenues are difficult to accurately project, staff will utilize the annual Capital Improvement Budget and RTIP process to address fluctuations in the anticipated TransNet revenues and amend the project allocations to address savings and/or deficits. . In an effort to comply with the 30% local agency balance threshold, Public Works delivered $lOM in TransNet projects this fiscal year. Another $3M in TransNet funds is encumbered for TransNet projects currently in progress and anticipated to be completed in FY 2011-12. . Staff is working with SANDAG to encourage changes to Policy #31, Rule #17, and Section V Local Agency Balance Limitations, which requires an agency to maintain a balance of less than 30% of its current annual apportionment. If the balance exceeds 30% SANDAG defers payments of TransNet funds causing temporary project deficits. At year-end when expenditures and revenues must be equal, the inability to draw funds becomes problematic and results in proll:ct deficits and audit findings. lu-2 6/22/10, Item /0 Page 3 of 4 . Staff is in the process of finalizing a fiscal integration of the City's financial system (IFAS) and the Capital Improvement Budget and Project Management system. This will enable staff to effectively manage project budgets, prioritize and optimize the use of funds and human resources. . The City uses a comprehensive pavement management system, which forms the basis for the development of current and future pavement rehabilitation projects. Staff will continue to use this coo! and the pavement preservation strategy adopted by the City Council in 2006 to proactively address pavement needs and expend TransNet funds accordingly. . Finally, staff is recommending the transfers depicted in the attached spreadsheet to mitigate cash allocation discrepancies and ensure future audit compliance. The reallocation amounts are reflected under the column titled "City Adjustments". The reallocation of funds will address project surplus andlor deficits without impact to existing projects. Sufficient funds are available in TransNet and TDA funds to address active projects. However, there is an impact to the General Fund of $25,344 necessary to cover deficits for two projects that have been completed - STM334 H Street Reconstruction, ST922 Palomar St, 1-5 to Industrial and ST298 Bay Blvd Bike Path - E to F Street. Since these projects were completed in prior years they are ineligible for a reallocation. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and the property holdings of the City Council Members. Based on this review, staff has determined that each Capital Improvement Program is either: (i) not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(l) is not applicable to this decision; or (ii) involves property which is not within 500 feet of property held by any Council Member. CURRENT YEAR FISCAL IMPACT The recommended allocation of TransNet, TDA, and TEA-2l adjustments does not impact previously approved capital projects. Sufficient funds are available to cover the project deficits, which will ensure audit compliance and maintain the integrity of project expenditures and funds received. However, there is an impact to the General Fund of $25,168 necessary to address the deficit in prior year completed projects - STM334 H Street Reconstruction and ST922 Palomar St, 1-5 to Industrial, and ST298 Bay Blvd Bike Path - E to F. Per SANDAG, these projects were completed in. prior years and are not eligible for a reallocation of funds from current fund balances. Recommended City Adjustments: General Fund Avail $25.344 GF Appropriation (TransNet) STM334 Olympic Pkwy, Oleander to $496 Bdwy Gf Appropriation (TEA~21) ST922 Palomar St -U5 $24.672 GF Appropriation (Transl'let) ST298 Bay Blvd Bike Path - E to F $176 $25,344 Total $25,344 rrotal 10-3 6/22/10, Item~ Page 4 of 4 ON GOING FISCAL IMPACT The City is currently looking at alternative ways to address the intention of the SANDAG Board policy regarding the 30% balance threshold while at the same time meeting the needs of our Capital Improvement Program and auditing requirements. Moving forward, staff will continue to complete annual fund reconciliations as necessary to mitigate any potential projects deficits. Unanticipated projects deficits will be mitigated with available TransNet Cash on hand and/or TransNet draw downs. ATTACHMENTS 1. Schedule of Status of Funds by Project Prepared by: Nlerce LeClair, Sr. Management Analyst, Public Works-Engineering J:\Engineer'vlGENDA\CAS2010106-22-101TransNet Reconciliation FY10 CAS 1Q rev.doc 10-4 City" of Chub Vista ATTACHMENT I Schedule of St3.tus of Ftmns by Project TransNet FW1d (217) For the yecu ended June 30, 2010 TransNet - I Project Proj Status City MPO fD No Project Name 06/3U,'2009 Adjustments Streets and Roads CHVQl STM328 OlympicPkwy/I-805 Interchange (17,997) 1/,997 CHVQ6 STL238 Pavement Rehabilitation-D6/07 6,473,674 (4,549,824) CHV 06 STL286 Sidewalk Improv Otay Lak~s Rd (236,881) 236,831 CHV06 STL310 Pavement Rehabilitation -04/05 1,941'i,572 CHV06 STL315 PavementE~habilitation -05/06 137,771 CHV Ol'i STL316 Pavement Rehabilitation 2,384,811 CHV06 ST1325 Pavement Testing &:.. Management (140,641) 140,611 CHV06 STL335 Pavement Rehabilitation 07/08 (1,342,077) 1,342,077 CHV06 STL340 Pavement Rehabilitation -06/07 (2,234,497) 2,234,497 CHVOf; STL346 Pavement Major RehabilitCltion (2S,366) 28,3(,{, CHV06 SW233 Moss Street Woodlawn to Broadway (1,104,244) 1,104,244 Subtotal MPO CHV 06 5,856,124 236,881 CHV18 STU87 Castle Park Elementary Sidewalk Imprv 120,836 CHVIE STL291 Fourth Ave Sidewalk improvement 1,087,543 CHV18 STL292 ADA Curb Cuts 03/04 (71) 71 CHV18 STL299 Third Ave SidewJlks - D to 4th Ave. 55,133 CHV18 STL307 Sidewalk Installation/Rehtlbilitation 04/05 (35,165) 35,165 CHV18 STL321 Sid~walk Rehab/Installation 193,988 CHVlS STL336 Sidewalk Installahon Safety Program (5,557) 5,557 CHV13 ST1347 Sidewalk Installation (816) 316 Subtotal MPO CHV 18 1,415,891 41,609 CHV19 STM354 North Broadway Pavement Reconstruction 2,265,193 CHV 20 STUDS North Fourth Ave and Brisbank-04/05 CHV21 STL3D9 Fourth Ave Reconstruction Davidson/SR54 CHV 22 OP2D2 CIP Adv.:mcerJ Planning 52]43 CHV 26 STL3B Pedestrian Master Plan 34.304 CHV 29 STL328 L Street Improv from Munserdte to Nadon 520,547 CHV30 STM361 IS Mulh-Modal Corridor lmprov Study CHV 33 TF345 SChODI Zone Traffic Calming 210,927 CHV 33 TF362 Kids Walk/Bike to School Phase II (7,084) 7,084 Subtotal NlPO CHV 33 203,843 7,OR4 CHV 34 TF327 Neighborhood Safety Pro~am 28,074 CHV 35 TF325 Transportation Planning Program (30,967) 30,967 CHV 35 TF332 Signing and Striping Program (4,563) 4,568 CHV35 TF344 I 805 Direct Access Ramp E H md E Palomar 814 Subtotal MPO CHV 35 (34,720) 35,535 CHV3<,l TF350 Traffic Signal System Optimization 19,341 CHV 40 STL337 Eayshore Bikeway Segment 7 & 8 1,596 CHV41 TF358 West Side Transportation DIF 213,189 CHV 42 TF353 Major Intersection Safety Program 6,468 CHV 43 TF354 Traftic Congestion Relief Program 82,997 CHV 44 TF356 Otay Mesa Transportatiun System 39,325 Subtotal TransNet-1 10,737,417 339,106 Schedule of StJ.tus 01 Funds by Proie-ct FYIO For Agenda 06i16/20109:09AM 10-5 MPO ill Congestion Relief City of Chula Vista Schedule of Status of Funds by Project TransNet Flmd (227) Projected for the year ended June 30, 2010 Pro) No Project Name CHV 30 STM361 15 Multi-Modal Corridor Improv Study CHV 30 STM362 1-5/H Street Interchange Improvement Subtotall'vlPO CHV 30 CHV 37 STL280 CHV 48 STL345 CHV 39 TF350 Palomar Gateway Pavement Major Rehabilitation Traffic Signal System Optimization Subtotal Congestion Relief Maintenance CHV 22 OP202 eIP Advanced Planning CHV 22 OP208 CIP Management & Equipment Purchase SubtotaUvlI'O CHV 22 eHV 33 TF361 Safe Routes 2 ScW Otay /Rice Ehn C:HV 35 TF366 Traffic Signal & St. Lighting Upgrade/Maint. eHV 35 TI369 Three Park Bicycle Facility Improvement Subtotal;\11'O CHV 35 eHV 45 TF321 CHV 46 TF368 CHV 47 TF367 Claim No. 349 6011001 SOnOOl Proj No STL286 STL2S7 STL336 SrhedlLleofStattl50fF,U\d5byProjectFY10-ForAg~nda Citywide Traffic COlmt Program Harborslde Elementary Pedestriam lmprv. Urban Cor~ Srvs Level Threshold Study Subtotal NLl.intenance Subtotal TransNet.ll UNALLOCA TED FUND BALANCE Transfer in of IDA (see below) Readjusted Unallocated Fund Balance Project Status 06/30/2009 City AdjustmentS 68,638 (14,583) 14,583 54,054 14,583 76,943 (6,317) 6,317 25,700 150,381 20.900 (13,960) (13,960) 13,960 13,960 (69,221) 69,221 (133,954) (337) (134,291) 133,954 337 134,291 (20.012) 85,000 20,409 20,012 (132,076) 237,485 18,305 258,385 542,035 57,384 5Y9,41Y (561,496) (561,4961 City of Chub VistCl Schedule of Status of Funds by Project Transportation Development Act - Article 3 Fund (723) For the year ended June 30, 2010 Project Name 03-349 Otay Lakes Sidewalk (Transfer Out) Casstle Park Elementary Sidewalk Impvts Sidewal.k lnstali Safety Program Unallocated Avail Bi1!;mce 10-6 Status City 06/30/2009 Adjustments $ 57,910 $ (57,910) I (50) $ 50 $ (476) $ 476 $ 57,384 $ (57,384) 06/16/Z0109,09AM RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TRANSPORTATION SALES TAX (TRANSNET) FUND RECONCILIATION AND ALLOCATION ADJUSTMENTS AND APPROPRIATING $52,743 IN AVAILABLE TRANSNET FUNDS TO EXISTING PROJECT OP202 WHEREAS, TransNet is the main timding source of many of the City's infrastmcture projects such as pavement rehabilitation, sidewalk and traffic signal installation; and WHEREAS, TransNet funds are derived from sales tax revenues levied in San Diego County that are collected by the State specifically for use on transportation related projects; and WHEREAS, the regional metropolitan planning agency, San Diego Association of Governments (SANDAG) programs these funds to local municipalities; and WHEREAS, revenues vary from year-to-year depending on the amount of sales tax available to the region and the number and costs of projects for which municipalities, local transit and Caltrans request funding; and WHEREAS, the TransNet revenue approved for cities is based on cost estimates submitted as part of the annual request for funding through the Regional Transportation Improvement Program (RTIP) program; and WHEREAS, often these project estimates require adjustments based on actual revenue receipts, unanticipated project savings and/or unanticipated project deficits; and WHEREAS, most recently several audit exceptions resulted because the City exceeded the 30% local agency balance threshold. As a result of holding a balance in excess of 30%, the City was unable to draw TransNet funds from SANDAG on a timely basis; and WHEREAS, staff is recommending the transfers to mitigate cash allocation discrepancies and ensure future audit compliance; and WHEREAS, the reallocation of funds will address project surplus and/or deficits without impact to existing projects. Sufficient funds are available in TransNet funds to address active projects. 10-7 Resolution No. 2010- Page 2 NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve Transportation Sales Tax (TransNet) fund reconciliation and allocation adjustments and appropriate $52,743 in available TransNet funds to existing project OP202. Presented by Approved as to form b Richard A. Hopkins Director of Public Works 10-8 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TRANSPORTATION DEVELOPMENT ACT (TDA) AND TRANSPORTATION EQUITY ACT (TEA) 21 FUND RECONCILIATION, TRANSFER AND ALLOCATION ADJUSTMENTS AND AUTHORIZING AN APPROPRlA nON IN THE AMOUNT OF $25,344 FROM THE GENERAL FUND TO CLOSE COMPLETED PROJECTS STM334, ST922 AND ST298 WHEREAS, TDA and TEA-21 funds also are budgeted for several infrastructure projects approved in the Citywide Capital Improvement Program; and WHEREAS, the TDA program was enacted in 1971 and TDA funds are generated from a tax of one-quarter of one percent on all retail sales in each County; and WHEREAS, the regional metropolitan planning agency, San Diego Association of Governments (SANDAG) programs these funds to local municipalities; and WHEREAS, most recently several audit exceptions resulted in project deficits; and WHEREAS, staff is recommending TDA transfers and allocation adjustments to mitigate cash allocation discrepancies and ensure future audit compliance; and WHEREAS, there is an impact to the General Fund of $25,168 necessary to address the deficit in two prior year completed projects - STM334 H Street Reconstruction and ST922 Palomar St, 1-5 to Industrial. Per SANDAG, these projects were completed in prior years and are not eligible for a reallocation of funds from current fund balances; and WHEREAS, the reallocation of funds will address project surplus and/or deticits without impact to existing projects. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Transportation Development Act (TDA) and Transportation Equity Act (TEA) 21 fund reconciliation, transfer and allocation adjustments and authorizes an appropriation in the amount of $25,344 from the General Fund to close completed projects STM334, ST922 and ST298. Presented by Approved as to form by ~ Richard A. Hopkins Director of Public Works /. iesf~' ty Attorney 10-9