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Home My WebLink About13 - Transportation Congestion Relief FundNovember 14, 2000 CITY COUNCIL AGENDA ITEM NO. 13 TO: Mayor and Members of the City Council FROM: Public Works Department SUBJECT: TRANSPORTATION CONGESTION RELIEF FUND (AB2928) — ACCEPTANCE OF FUNDS RECOMMENDATIONS: 1. Approve acceptance of AB2928 Transportation Congestion Relief Funding in the amount of $539,054 from the State of California. 2. Approve a Budget Amendment to increase revenue estimates by $539,054 for Traffic Congestion revenues into Account No. 190 -4807 and $15,000 for anticipated additional interest earnings into Account No. 190 -5400. DISCUSSION: On Wednesday, October 18, 2000, the City received $539,054 from the State's "Transportation Congestion Relief Fund." This is the City's share of the $400 million provided for in AB2928. This bill provides approximately $6.8 billion over the next six years for both capital and preservation transportation projects. Newport Beach is projected to receive $135,000 per year for the next five years using a per capita formula, based on the current population. These funds must be used for street and highway pavement maintenance, rehabilitation, and reconstruction before the end of FY 2001 -02. In addition, the City must comply with a "maintenance of effort provision," which requires cities to maintain their current level of City General Fund expenditures for transportation purposes. Staff has identified a street rehabilitation project along Balboa Boulevard between Medina Way and 12"' Street for the use of this year's A82928 funds. The project includes improvements to the roadway surface and cross slope of the street so water will drain to the gutters. The project will be ready for construction in FY 2001 -02 and can be completed before the June 30, 2002, deadline. The appropriation request for this capital project will be included in the FY 2001 -02 budget process. Respectfully submitted Cz PUBLIC WORKS DEPARTMENT Don Webb, Director By: /,4 d' n:^% Lois Thompson, Administrative Coordinator State Controller's Office Senate Bill 1662, Chapter 6S6 Statutes of 2.000 Amends Assembly Bill 2928, Chapter. 91, Statutes of 2000 Transportation Finance Legislation Background e AB 2928 created the Traffic Congestion Relief Fund (Government Code Section 14556.5) • 55.39 billion will be allocated from the Traffic Congestion Relief Fund for transportation projects through June 30, 2006, including $400 trillion for deferred maintenance • Funds deposited into the Traffic Congestion Relief Fund include monies from the annual Budget Act, the Transportation Investment Fund (established by Revenue and Taxation Code Section 7104), or those provided under any other statute • The $460 million will be allocated by the Controller to cities and counties in FY 2000 -2001 Sheds and Hirhmvrvs Code Section 2182 • FY 2000 -2001 Allocations - One Year $400 million is required to be allocated by the Controller to cities, counties and a city and county from funds appropriated from the Traffic Congestion Relief Fund' • - 50 % to counties, including a city and county (75% based on the number of fee -paid - and exempt vehicles registered with a county, and 25% based on the number of miles of maintained county roads within a county) . • 50 % to cities, including a city and county, in the proportion that the total population of a city bears to the total population of all cities in the state, using.the most recent population estimates prepared by the Demographics Research Unit of the Department of Finance. • For a city incorporating after January 1, I998, that does not appear on the most recent population estimates prepared by the Demographics Research Unit, the Controller will use the population determined for that city under Revenue and Taxation Code Section 11005.3 • Requirement • Allocation subject to city or county annually expending from its general fund (discretionary unrestricted funds) for streets, roads, and highway purposes an amount not less than the annual average of its expenditures from its general fund during FY 1996 -97, FY 199748, and FY 1998 -99, as reported to the Controller pursuant to Streets and Highways Code Section 2 15 1 (Annual Street Report or Annual Road Report) • For cities incorporated after July 1, 1996, the Controller will calculated an annual average of expenditure for the period that the city was incorporated between July 1, 1996, and December 31, 2000 • Exempt from calculation - One -time allocation expended, which may not be available on an ongoing basis State Controller's Office Page 2 Deposits of Funds • For cities - A city account that is designated for the receipt of state funds allocated for transportation purposes • For counties —The Road Fund • .For. a city and county —A local account that is designated . for the receipt of state funds allocated for transportation purposes • Eligible Expenditures • Pavement maintenance, rehabilitation and reconstruction of necessary associated facilities, such as drainage and traffic control devices • Rehabilitation or reconstruction may include widening to 3R standards, but excludes widening that increases the traffic capacity Requirement to Maintain Expenditure Level • End of FY 2000 -01 • Failure to comply can be. made up in the subsequent fiscal year • If the city or county fails to maintain the required expenditure level, fiords received during the.fiscal year is to be returned to the Controller and reallocated to other cities and counties whose expenditures are in compliance • Requirement to Expend Allocations • End of FY 2001-02 • Unexpended allocations are to be retuned to the Controller and reallocated to other cities- and counties State Controller's Office • May perform audits to ensure compliance • May request fiscal data from cities and counties in addition to information reported by the city or county on the Annual Street Report or Annual Road Report Revenue and Taxation Code Section 7104 FY 2001 -2002 through FY 2005-06 Quarterly Allocations — 5 Years • The Controller, following the transfer of fiords to the Traffic Congestion Relief Fund (prescribed in Revenue and Taxation Code Section 7104 (c) (1)), is required to apportion or transfer the following: • 201/o into the Public Transportation Fund, a trust fund within the State Transportation Fund (25% pursuant to Public Utilities Code Section 99314; 25% pursuant to Public Utilities Code Section 99313; and 50% to Caltrans); • 40% to the Caltrans for programming for transportation capital improvement projects; • 20% to counties, including a city and county (75% apportioned based on the number of fee -paid and exempt vehicles registered with a county and 25% based on the number of miles of maintained county roads within a county); and • 20% to cities, including a city and county, in the ,proportion that the total population of a city bears to the total population of all cities in the state. State Controller's Office Page 3 • Requirement. • Allocation subject to city or county annually expending from its general fund (discretionary unrestricted funds) for streets, roads, and highway purposes an amount not less than the annual average of its 6xPenditures: from its.general fund during FY 1996 -97, FY 1997 -98, and; FY 1998 -99,: as reported to the Controller pursuant toSireets and Highways Code Section 2151 (Annual Street Report or Annual Road Report) • For cities incorporating after July 1,, 1996-,.the. Controller will calculated an annual average of expenditure for the period that the city was incorporated between July 1. 1996. and December 31, 2000 • Exempt from calculation- One -time allocation expended, which may not be available on an ongoing basis • Deposits of Funds • For cities - A city account that is designated for the receipt of state funds allocated for transportation purposes • For counties — The Road Fund A For a city and county -A local account that is designated for the receipt of state funds allocated for. transportation purposes; ^: r Eligible Expenditures • Maintenance (Patching: overlay and sealing) • Reconstruction • Overlay, sealing, or widening (to A standards) • Excludes widening that increases the traffic capacity • Storm Damage Repair • Requirement to Maintain Expenditure Level • End of the each fiscal year commencing in FY 2001 -02 • : Failure to comply can be made up in the subsequent fiscal year • If the city or county fails to maintain the required expenditure level, funds received during the fiscal year is to be returned to the Controller and reallocated to other cities and counties whose expenditures are in compliance • Requirement to Expend Allocations • End of the fiscal year following the fiscal year in which the allocation was made. • Unexpended allocations are to be returned to the Controller and reallocated to other cities and counties • State Controller's Office • May perform audits to ensure compliance • May request fiscal data from cities and counties in addition to information reported by the city or county on the Annual. Street Report or Annual Road Report N State Controller's Office Page 4 Government Code Sections 14556.25.14556:26. and 14556.29 Purpose • Allocation of grants by Caltrans from the Traffic Congestion Relief Fund, as directed by the California Transportation Commission pursuant to Government Code Section 1455620, for purposes and amounts specified • Allocated to Caltraos and certain. regional and local transportation entities for certain listed transportation projects listed in Article 5 (commencing with Government Code Section 14556.20) • Cooperative Agreement • To be executed by Caltraw with lead applicant agency or the agency responsible for carrying out the work for reimbursement of approved project expenditures • Specifies how additional costs are to be covered, if necessary and how savings are to be used or distributed, if available, among all the various funding sources being used for the project • Certification • Requires a regional or local agency receiving an allocation from this program to certify, by resolution of its governing board(prior to final execution of the cooperative agreement), that it will sustain its level of expenditures for transportation purposes consistent with the average of its annual expenditures during FY 1997 -98 through FY ck`= 1999 -2000. • Certification is subject to audit by the State • Submission of the certification to the Controller's Office is not required . Other Allocation from the Traffic Congestion Relief Fund • Allocation from the California Transportation Commission to the funding exchange program authorized by Streets and Righways Code Section 182.8 • Increase flexibility in the use of state and federal funding to complete transportation improvements provided the exchange do not compromise other funded projects or activities City of Newport Beach BUDGET AMENDMENT 2000 -01 EFFECT ON BUDGETARY FUND BALANCE: Account Number Increase Revenue Estimates Number Account Increase Expenditure Appropriations Division Number Transfer Budget Appropriations SOURCE: Division Number Account from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- 012 AMOUNT:F $554,054.00 �X Increase in Budgetary Fund Balance AND Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase revenue estimates by $539,054 for Traffic Congestion revenues and anticipated additional interest earnings by $15,000. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund/Division Account 190 4807 190 5400 EXPENDITURE APPROPRIATIONS (3603) Division Number Account Number Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Signed: Description General Fund Balance Amount Debit Credit ' $554,054.00 Description Traffic Congestion Relief $539,054.00 Interest Income $15,000.00 Description City Manager City Council Approval: City Clerk I%/ -oZ -in:t T Date 'ke Date