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HomeMy WebLinkAbout07 RES 09-02 FOR PROP 1B FUNDS 01-06-09Agenda Item 7 • Reviewed: AGENDA REPORT City Manager ; ~~ Finance Director MEETING DATE: JANUARY 6, 2009 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: TIM D. BEREFT, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ADOPT RESOLUTION NO. 09-02 FOR PROPOSITION 1 B LOCAL STREETS AND ROADS (LSR) FUNDS AND AUTHORIZE STAFF TO FILE FOR DISBURSEMENT WITH THE STATE DEPARTMENT OF FINANCE SUMMARY Proposition 1 B Local Streets and Roads (LSR) funds have been allocated by the California State Legislature and include $187 million for cities in Fiscal Year 2008-09. Unfortunately, the City has recently been informed by the League of California Cities that due to the current budget crisis the State of California is experiencing, the State Controller's Office has frozen all distribution of Proposition 1 B LSR funds. However, adoption of Resolution No. 09-02 will allow the City to provide the necessary documentation to the State to secure the City's portion of these funds, in the amount of $1,078,434.18, in Fiscal Year 2008-09 and promptly receive its allocation once the funds are released for distribution. RECOMMENDATION It is recommended that the City Council: 1. Adopt Resolution No. 09-02 amending the Capital Improvement Program for Fiscal Year 2008-09 to adjust the Capital Improvement Program budget to recognize funding from Proposition 1 B for the "Tustin Ranch Road Rehabilitation Project between Bryan Avenue and Jamboree Road" (CIP No. 7195); and 2. Authorize staff to apply to the State Department of Finance for release of Proposition 1 B LSR funds for this project. FISCAL IMPACT The recommended action will amend the approved Fiscal Year 2008-09 Capital Improvement Program budget to include a designated appropriation for the Tustin Ranch Road Rehabilitation Project (CIP No. 7195) of $1,078,434.18 in Proposition 1B LSR funding. BACKGROUND In 2006, the voters of California approved Proposition 1 B authorizing the sale of various bonds for infrastructure improvements. Proposition 1 B specified that a portion of the bond proceeds be allocated directly to cities for local street and road improvements. The City of Tustin is designated to receive $1,078,434.18 of the $187 million allocated for cities in Fiscal Year 2008- 09. Application for Proposition 1 B Local Streets and Roads Funds January 6, 2009 Page 2 On July 15, 2008, the City Council, through the adoption of Resolution 08-49 adopted the City's Seven Year Capital Improvement Program (CIP), which included the Tustin Ranch Road Rehabilitation Project between Bryan Avenue and Jamboree Road (CIP No. 7195). The project design cost was budgeted in Fiscal Year 2008-2009 at $200,000 with the source of funds being Measure "M" Turnback Funds, and the construction cost was planned for in Fiscal Year 2009- 2010and estimated at $2,000,000 with the source of funds undesignated. As of December 22, 2008, the State Controller's Office has frozen the distribution of Proposition 1 B LSR funds, due to the current budget crisis the State of California is experiencing. It is anticipated that the State Proposition 1 B LSR funds will be released for distribution in FY 2008- 09 and will be available to cities. Therefore, it is recommended that the $1,078,434.18 allocated to the City of Tustin be used for the Tustin Ranch Road Rehabilitation Project (CIP No. 7195). This can be accomplished through the adoption of Resolution No. 09-02 which dedicates the entire allocation to the subject project. Furthermore, it is recommended that the City Council authorize staff to apply to the State Department of Finance for release of Proposition 1 B LSR funds for this project. Although distribution of the funds is currently frozen, filing of the necessary documents at this time will ensure that the City promptly receives its allocation once the funds are released for distribution. The remaining funds required to construct the Tustin Ranch Road Rehabilitation Project ($1,121,566) will be budgeted during the FY 2009-2010 budget process and may be a combination of Measure "M" Turnback funds, Gas Tax funds, Proposition 42 funds, and/or Capital Improvement Program (CIP) funds. T' . S rlet it t of Public Works/City Engineer Dana R. Kasdan Engineering Services Manager Attachments: Resolution No. 09-02 Location Map S:\City Council Items\2009 Council ItemsWpplication for Proposition 1 B Street funds & Resso 09-02.docx RESOLUTION NO. 09-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AMENDING RESOLUTION 08-49, THE CAPITAL IMPROVEMENT BUDGET APPROPRIATION FOR FISCAL YEAR 2008- 09, TO ADJUST THE CAPITAL IMPROVEMENT PROGRAM BUDGET TO RECOGNIZE FUNDING FROM PROPOSITION 1 B LOCAL STREETS AND ROADS WHEREAS, in November of 2006, the voters of California approved Proposition 1 B, which allocated $2 billion to the cities of California to fund the maintenance and improvement of local transportation facilities; and WHEREAS, the City of Tustin desires to secure Proposition 1 B Local Streets and Roads (LSR) funding in the amount of $1,078,434.18 and make a corresponding amendment to the Fiscal Year 2008-09 Capital Improvement Program budget for the Tustin Ranch Road Rehabilitation Project (CIP No. 7195); and WHEREAS, on July 15, 2008, the City of Tustin City Council approved Resolution 08-49, which approved the Capital Improvement Program budget for Fiscal Year 2008-09; NOW, THEREFORE; THE CITY COUNCIL OF THE CITY OF TUSTIN DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Tustin, California, hereby amends Resolution 08-49 to recognize the additional revenue of $1,078,434.18 from the State of California Proposition 1 B LSR funds for the Tustin Ranch Road Rehabilitation Project between Bryan Avenue and Jamboree Road (CIP No. 7195). SECTION 2. The City Clerk shall certify as to the adoption of this resolution. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6th day of January 2009. Mayor, Doug Davert ATTEST: City Clerk .~. rn n O Z a U ._. w w O m a 0 z a L F- U F- L.L C } L, a z m Z w H w m Z O Q _J m Q W Q O 2 U Z Q Z H N F- W Q Z H U W O a