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RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT THE TRANSPORTATION DEVELOPMENT ACT CLAIM FOR FISCAL YEAR 2017-18
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager or his Designee to execute and submit a claim to the San Joaquin Council of Governments for Fiscal Year 2017-18 Transportation Development Act funds in the amount of $57,003.
2. Authorize the City Manager or his Designee to deposit the funds in the TDA Fund Balance (Fund 034) for reimbursement of the 2015 Sidewalk, Curb and Gutter Repair Program (Project No. PW1531), pursuant to the TDA funding requirements.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City is entitled to a formula-based apportionment of Transportation Development Act (TDA) funds from San Joaquin Council of Governments (SJCOG) on an annual basis. No matching funds are required. TDA funds can only be claimed in the same year that they are to be spent, or on a reimbursement basis. The recommended action would authorize submission of a reimbursement claim for $57,003 of TDA funds appropriated to the 2015 Sidewalk, Curb and Gutter Repair Program (Project No. PW1531). The construction of this project is complete, and contractor invoices are paid. SJCOG requires that the claim documents include a Council resolution authorizing a specific staff member to submit the claim for reimbursement. Staff recommends that Council authorize the City Manager or his Designee to execute and submit a claim to SJCOG for TDA funds in the amount of $57,003.
DISCUSSION
Background
SJCOG is responsible for the ongoing administration of TDA funds provided from a State Tax allocated specifically to the Local Transportation Fund (LTF) established in 1972. The funding is for local public transit and bicycle/pedestrian projects. The LTF receives revenue from a portion (1/4 percent) of the retail sales tax that is collected statewide per the TDA legislation. This portion is returned to each county per the amount of taxes collected in that county.
The TDA regulations provide that two percent of the total LTF apportionment be allocated for bicycle/pedestrian purposes. This “non-motorized” apportionment is distributed among San Joaquin County and the cities located in the county on a population basis. The City used these funds in the past for bicycle path projects, sidewalk repairs, and the installation of wheelchair ramps. The remaining 98 percent of the City’s LTF is allocated by SJCOG to the San Joaquin Regional Transit District (RTD) to fund public transit services in the City.
SJCOG initially estimates the total annual LTF revenue and the anticipated apportionments to the various agencies. Once the actual revenues are received, SJCOG recalculates the apportionments and allocates the funds. The actual amount received is typically higher than the initial estimated amount. The City budgets the expenditure of the estimated LTF funds during the annual Capital Improvement Plan (CIP) budget process. To receive TDA funds, the City is required to submit a claim to SJCOG, along with an approved resolution. If claimed in advance, TDA funds must be spent in the same fiscal year that they are claimed. TDA funds can also be claimed as a reimbursement for actual expenditures.
Due to the discrepancy between the initial estimate and the actual amount received, there is typically a positive balance in the City’s LTF account with SJCOG. This amount is then added to the next year estimate and budgeted during the CIP budget process and will be claimed in subsequent years. Any unspent funds resulting from project savings are also returned to the City’s account to be budgeted and claimed in future years.
Public Works maintains a database of locations where wheelchair ramps and related sidewalk repairs have been requested, or are otherwise required to address a reported accessibility deficiency. The annual CIP sidewalk, curb and gutter repairs uses this list to identify the locations for repair. The non-motorized LTF/TDA funding is allocated entirely to this program.
Present Situation
The current balance in the City’s TDA account is $677,208. This is comprised of the Fiscal Year (FY) 2017-18 estimated apportionment of $243,758, and prior year’s unspent apportionments and interest of $433,450. The City completed work on the sidewalk, curb and gutter repair project (PW1531). This project was partially funded with TDA funds, and the City submitted reimbursement claims in prior fiscal years for the majority of the TDA funds that were allocated to this project. The remaining amount to be claimed for this project is $57,003. The City must submit a reimbursement claim for this amount, as per the recommended resolution, to be reimbursed. Once this claim is processed, the remaining TDA fund balance held at SJCOG will be $620,205. These funds have been allocated to the next sidewalk project, and will be claimed on a reimbursement basis once the work has been completed. The project is scheduled to commence construction in FY 2017-18.
FINANCIAL SUMMARY
The TDA revenues and expenditures are allocated to a special fund (Fund 034). Projects are allocated funding through the annual CIP budget or other Council action. The 2015 Sidewalk, Curb and Gutter Repair Program (Project No. PW1531) awarded a construction contract to Nor-Cal Concrete, Inc. in the amount of $1,252,950. This contract was funded in part by $697,864 of TDA funds. Construction commenced in early 2016 and was completed in July of 2017. To date the City has submitted claims for $640,861 of TDA funds for the project, leaving a remaining amount to be claimed of $57,003. The recommended action submits a FY 2017-18 TDA reimbursement claim for the $57,003. Upon receipt, the funds will be deposited into the TDA fund balance (Fund 034) for the 2015 Sidewalk, Curb and Gutter Repair Program (Project No. PW1531).
No matching funds are required to receive TDA funds, and there is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended actions.