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Home My WebLink About2011/06/07 Item 08ITY COUNCIL STATEMENT ~`~~ CITY OF CHULA VISTA 6/07/11, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE APPROPRIATION OF $58,439 IN THE TRANSPORTATION DEVELOPMENT ACT (TDA) FUND FOR A TRANSFER TO THE TRANSPORTATION SALES TAX (TRANSNET) FUND SUBMITTED BY: DIRECTOR OF PUBLIC WORKS ASSISTANT DIREC O OF ENG ERING REVIEWED BY: CITY MANAGER ASSISTANT CIT MANAGER ~j~ 4/STHS VOTE: YES ® NO ^ SUMMARY On June 22, 2010, the City Council approved by Resolution 2010-166 the TransNet and TDA Fund reconciliation, transfer and allocation adjustments to address project deficits from available ftmd balances in FY 2010. Approval of this item will rectify the omission of specific language in Resolution 2010-166 authorizing the appropriation. ENVIRONMENTAL 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. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Annually, the City is required to perform a reconciliation of TransNet and TDA funds. The outcome of the 2010 reconciliation resulted in a recommendation to transfer eligible TDA ftmds to the TransNet fund to mitigate cash allocation discrepancies without impact to existing projects and ensure audit compliance. On June 22, 2010 Council approved by Resohition 2010-166 the S-1 6/07/I1,Item~ Page 2 of 2 TransNet and TDA Fund reconciliation, transfer and allocation adjustments. Although Council approved the item, the specific language and Attachment 1 detailing the original amount of $57,384 was not included as part of the Resolution and therefore the appropriation could not be performed by the Finance Department. Since then, interest has been earned while the funds remained in the TDA fund thereby increasing the amount for appropriation. Approval of this item will rectify the omission and authorize the appropriation of $58,439 as necessary to address project deficits and detailed as follows: Project No. Original Amount Interest Earned Revised Amount STL286 $57,910 $1,055 $58,965 STL287 ($50) $0 ($50) STL336 $476 $0 $476 Total $57,384 $1,055 $58,439 DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Coruzcihnember Aguilar has property holdings within 500 feet of the boundaries of the property regarding Capital Improvement Project STL286 Otay Lakes Sidewall< Improvements (from Allen School Lane to Surrey Drive), which is one of the subject projects of this action. CURRENT YEAR FISCAL IMPACT There is no impact to the General Fund. There are sufficient TDA fiords to appropriate the $58,439 (including interest income) needed for the transfer to the TransNet Fund. This appropriation will result in a positive impact of $58,439 to the TransNet Fund. ONGOING FISCAL IMPACT None. ATTACHMENTS 1. Agenda Item dated June 22, 2010 2. Resolution 2010-166 Prepared by: Merce LeClndr, Sr. Management Analyst,.Public Works /E~zgineering J: I EngineerlACENDA iCAS20! ! 106-07-1 ! IFund 723 Traizsfer' to Fund 227-FINAL. doc 6/l/20l l 3 X45:20 PM 8-2 CITY COUNCIL AGENE)A STATEMENT ~~„ c1Tr of --- CHUlAVISTA 6/22/10, Item ~i.i ITEIVI TITLE: A. RESOLUTION OF THE CITY COUNCIL OF THE C1TY OF CHLiLA VISTA APPROVING TRANSPORTATION SALES TA.Y (TRANSNET) FUND AND ALLOCATION ADJUSTMENTS AND APPROPRIATING $2,743 1N AVAILABLE TRANSNET FUNDS TO ElISTIi 1G PROJECT OP202 B. RESOLUTION OF THE CITY COUNCIL OF THE C[TY OF CHLILA VISTA APPROV rNG TRANSPORTATION DEVELOPMENT ACT (TDA) AND TRANSPORTATION EQUTI'Y ACT (TEA) 21 FUND RECONCILIATION, TRANSFER AND ALLOCATION ADNSTMENTS AND AUTHORIZING AN APPROPRIATION [N THE AMOUNT OF $25,344 FROM THE GENERAL FUND TO CLOSE COMPLETED PROJECTS STM334, ST922 AND ST298 SUBivIITTED BY: DIRECTOR OF PUBLIC WORKS ASSISTANT DIItEC R OF ENGINEERING REVIEWED BY: CITY MANAGE ~ ASSISTANT CITY ANAGER 4/STNS VOTE: YES ~ NO ^ SUMMARY Annually, the City is required to perform a reconciliation of Transportation Sales Tas (TrarsNet), Transportation Development Act (TDA} and Transportation Equity Act for the 21s` Century (TEA 21) funds. Based on this year's reconeilidtiun 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 TransNzt funds to an existing project OP202 from available TiansNet fund balance and $25,344 from the General Fund to close completed projects STM334, ST922 and ST298. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Envirorunental 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 S-3 6/210, Item Page 2 of 4 RECOMMENDATION Council adopt the resolutions. BOARDS/CONIMISSIONRECOVItii IENDATION 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 yeaz-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 1993 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 RT1P 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 ?011-12. • Staff is working with SANDAG to encourage changes to Policy n32, Rule X17, 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 p81 je~ t2 eficits and audit findings 6/22/10, Item f rl Page 3 of 4 • Staff is in the process of finalizing a fiscal integration of the City's financial system (g'AS) 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 tool 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 alla:ation discrepancies and ensure future audit compliance. The reallocation amounts are reflected under the column titled "City Adjustments". The reallocation of funds will address project sttrplus and/or 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 $2,344 necessary to cover deficits for two projects that have been completed - STM334 H Street Reconstruction, ST922 Palomar St, I-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 MAI~R 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 Irriprovement Prop am is either: (i) not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704?(a)(1) 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-21 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 e.ependitures 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, I-~ ro Industrial, and ST298 Bay Blvd Bike Path - E to F. Per SAi~TDAG, 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 $49Q Bdwy GF Appropriation (TcA-21) ST922 Palomar St -V6 $24,672 GF Appropriation (rransMetj ST298 Bay Blvd Bike Path - E to F 517E Total 525,344 Total 528,34< 10-3 8-5 6/22/10, Item /~ Page 4 of 4 ON GOING FISCAL IVi IPACT The City is currently looking at alternative ways [o address the intention of the SANDAGBoard 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 tnitigated with available TransNet Cash on hand and/or TransNet draw downs. ATTACI3MENTS 1. Schedule of Status of Funds by Project Prepared by.' Merce LeClair, Sr. Mars¢gement Analysr, Public Works-Engineering 1:\Eagineer~,4GENDA\CAS201~06-22-IO~TransNet Reconciliation FY10 CAS lQ rev.doc ~Q64 City of Chula vista Schedule of Status of Funds by Project TransNet Fund (~) For the year ended June 30, 2010 TransNet-I Proj MPO m No Project Name Sheets and Roads CHV O1 STM329 Olympic Pkwy,Q-805 lnterrhange CS-iV O6 STL238 C1iV O6 STL286 CHV OG ST[310 CFiV 06 STL315 CHV O6 STL316 CHV 06 $TL329 CHV O6 STL333 CHV O6 STL340 CHV O6 STL34g CHV 06 94V233 Pavement Rehabilitation-06 /07 Sidewalk Improv Otay Lakes Rd. Pavement Rehabilitation -04/05 Pavement Rehabilitation -05!06 Pavement Rehabilitation Pavement Testing Yc Management Pavement Rehabilitation 07/09 Pavement Rehibilitaden -O6/C7 Pavemert Major Rehabilitation Moss Street Wwdlawn w Broadway Subtotal MPO CHV 06 CHV IB STL287 CHV 13 9TL291 CHV 18 8TL292 CHV 18 STL299 CHV 16 STL307 tfilV 18 $TL321 CHV 18 STL376 CFIV 19 STL347 CHV 19 6TM354 CHV 20 STL308 CHV 2l STL309 CHV 22 OMO7 CHV 26 STL323 CHV 29 6TL328 CHV 30 STM361 CHV 33 TF346 CHV 33 TF362 Casde Park Elementary SidewaLl Imprv Fourth Ave Sidewalk Improvement ADA Curb Cuts 03 /04 Thud Ave Sidewalks - D to 4th Ave. Sidewalk Installation/Rehabilitation 04105 Sidewalk Rehab/InstalL~tion Sidewalk InstalLadon Safety Program Sidewalk Installation Subtotal MPO CHV i8 North Broadway Pavement fto.-anstruction North Fowdt Ave and Bri-shank-04/05 Fourth Ave Recanstrucdon Davidson/SLt54 CIP Advancxl Planning Pedestrian Master Plan L Street Improv from Monsera[e to Nation IS Mulh-Modal Corridor Improv Study School Zone Traffic Calming Kids W aB:/Bike to School Phase II Subtotal MPO CHV 33 l~V 38 TF327 Neighborhood Safety Program CHV 35 TF325 Transportation Planning Program CHV 35 TE332 Signing and 'Striping Program CHV 35 TF344 I BOS Direct Access Ramp E H and E Palomar Sub[onil [vIPO CHV 35 CHV 39 TF350 Traffic Signal System Optimization CHV 10 STU37 Bayshore Bikeway Segment 7 & 8 CE{V 41 TF358 west SldeTmnsportatian DSF CHV L' TF363 Major intersection Safety Program CF1V 43 TF351 Trafdc Congestion ReliefProgram CHV 44 TF336 Otay Mesa Transportation System Subtotal TransNet - 1 ~rraca~~~~' / Project - Sratus City Oo/3t1,'2DG9 Adjustments f17,9971 li,99? 6,473,674 (4,549,824) (236,8&1) 236.381 1,946572 - 137,7?1 - 2,394,811 - (140,ti47) 140,641 (1342,077) 1,342P7' (2,?a4,497) 2,234,497 (29366) 23,366 (1,104,248) 1,104,244 5,856,124 236,881 120.936 - 1,087,543 - (71) 71 55,133 - (35.1651 35,165 193 458 - (5,557) SS57 (316) 616 1,415,691 41,609 2,265,193 - 52.743 34.304 520,547 210,927 - (7,084) 7,064 203,643 7,084 28,074 - (30,967) 30,967 (4569) 4,56.9 814 (31,720) 35535 19,941 - 1,596 - 213,189 - 6,468 - 82,997 - 99,325 - 10:37,417 339,106 Sd~edule of5nms of Fw~ds ey P: ot.ct Fk"[0 For Agenda 1 a5%l6/2e10 e'.09 AM 10-5 a-~ City of Chula Vista Schedule of Status of Funds by Project TmnsNet Fund (227) Projected for the year ended June 30, 2010 MPO ID Prol No Project Name Congestion Relief CHV 30 $T.M367 L5 Multi-Modal Corridor Improv Study CFN 30 STM362 1-5/H Street Interchange Improvement Subtotal hQ'O CIdV 30 Project Status City 06; 30/2009 Adjustments 68,638 (14,583) 14583 54,054 14583 CHV 37 $TL260 Palomar Gateway 76,943 - CHV48 ST734$ Pavement Major Rehabilihdon (6,317) 6,317 CHV 39 TF350 Traf[ic Signal System Optimization 5,700 - Subtotal Congestion Relief 150,381 20.900 Maintenance CHV 22 OP202 CIP Advanced Planning - - CHV7~ OP206 CIP Management&Equipment Purchase (13,9601 13,9fi0 Subotal h0'O CHV 22 (13,960) 13,960 CHV 33 TF361 Safe Routes 2 Schl Otay/Rice Elm Citywide Traffic Count Program Harborstde Elementary Pedestriam Imprv. Urban Core Srvs Cevei Threshold Study CHV 35 TF366 Traffic Signal & St Lighting Upgrnde/Maim. (133,954) 133,954 CHV 35 TF369 Three Park Bicycle Farility Improvement (337) 337 Subrotal MPO CHV 35 (134,291) 134x91 CHV 45 TF321 CHV 46 TF368 CHV 47 TF367 Proj Claim No. No 349 $TL286 6011001 STL287 6051001 $TL336 $ubrotal M.iintenanm Subtotal TransNet - ll UNALLOCATED FUND BALANCE Transfer in of TDA (see below) Readjusted Unallocated Fund Balance (69,221) 69,221 (20.012) 20,07? 85,000 - 20,409 - (132,076) ?37,485 18,305 253,385 542,035 (561,496) 57,384 599,419 (561,49 ) City of Chula Vista Schedule of Statue of Funds by Project Transporhdon Development Act -Amide 3 Fund (723) Fot the year ended June 30, 2010 PYOject Name 03-349 Otay Lakes Sidewalk (transfer Out) Crustle Park Elementary Sidewalk Impvts Sidewalk Install Safety Program Status City 06/30/2009 Adjustments $ 57,910 $ (57,910) $ (50) $ 50 $ (476) $ 476 Unallocated Avail Balance $ 57,384 $ (57,384) erhNWe of Scotus of Fw,ds by Prolme Fl'10 -For ABenda 2 06/16/:010 9U9 Abl ~0a6 RESOLUTION NO. 2010-166 RESOLUTION OF THE CITY COUNCIL OF THE C[TY OF CHiJLA 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 WHEREAS, TDA and TEA-21 funds also aze budgeted for several infrastructure projects approved in the Citywide Capital Improvement Program; and WHEREAS, the TDA program was enacted in 1971 and TDA funds aze generated from a tax ofone-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,]68 necessary to address the deficit in two prior year completed projects - STM334 H Street Reconstruction and ST922 Palomar St, I-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 deficits 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 and Transportation Equity Act 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 Richard A. H pkins Director of Public orks Approved as to form by ~'~ B C. Miesf City Atto y 8-9 Resolution No. 2010-166 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 22nd day of June 2010 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Thompson and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: Ramirez C~K ~d~- Cheryl Cox, yor ATTEST: Donna R. Norris, CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2010-166 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of June 2010. Executed this 22nd day of Tune 2010. /1.~0~uca. ~J~o~4.t.~~9 Donna R. Norris, CMC, City Clerk 8-~0 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE APPROPRIATION OF $58,439 FROM THE TRANSPORTATION DEVELOPMENT ACT (TDA) FUND FOR A TRANSFER TO THE TRANSPORTATION SALES TAX (TRANSNET) FUND WHEREAS, annually, the City is required to perform a reconciliation of TransNet and TDA funds whereby the outcome of the reconciliation resulted in a recommendation to transfer eligible TDA funds to the TransNet fund to mitigate cash allocation discrepancies without impact to existing projects and ensure audit compliance; and WHEREAS, on June 22, 2010 Council approved by Resolution 2010-166 the TransNet and TDA Fund reconciliation, transfer and allocation adjustments; and WHEREAS, though an amount of $57,384 was identified in the exhibit attached to the Agenda Statement for Resolution 2010-166 as an amount recommended for transfer from the TDA Fund to the TransNet Fund, the language of the Resolution did not request such action be taken; thus, the transfer did not occur at that time; and WHEREAS, since that time the TDA fund has earned interest in an amount of $1,055; and WHEREAS, staff is recommending the transfer of $58,439, the original transfer amount of $57,384 plus the accrued interest; and WHEREAS, the transfer from the TDA fund to the TransNet fund will allow for the following project budget changes: Pro'ect No. Ori final Amount Interest Earned Revised Amount STL286 $57,910 $1,055 $58,965 STL287 ($50) $0 ($50)~ STL336 ($476) $0 ($476) Total $57,384 $1,055 $58,439 WHEREAS, there are sufficient TDA funds to transfer to the TransNet Fund. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby authorize an appropriation of $58,439 to the Transfers Out Expense Category of the TDA fund for a transfer to the TransNet fund. Presented by Approved as to form by Glen . Googins - - City Attorney Richard A. Hopkins Director of Public Works 8-11