Agenda Item Wording:
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Adopt Resolution and Exchange Federal funds for State Highway Account Funds - Adopt Resolution No. 2025-35 Authorizing the City Manager to sign the Fiscal Year 2024/25 Claim to the Tulare County Association of Governments for Regional Surface Transportation Program Funds in Exchange for State Highway Account Funds and appropriate $930,390 towards the Giddings Street Culvert Replacement Project.
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Deadline for Action: 5/19/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Dolores Verduzco, Financial Analyst, Dolores.Verduzco@visalia.city, (559) 713-4540
Chris Crawford, City Engineer, Chris.Crawford@visalia.city, (559) 713-4331
Jason Huckleberry, Engineering & Building Director, Jason.Huckleberry@visalia.city , (559) 713-4495
Department Recommendation:
Staff recommends Council adopt Resolution 2025-35 authorizing the City Manager to sign the Fiscal Year 2024/25 Claim to the Tulare County Association of Governments (TCAG) for Regional Surface Transportation Program (RSTP) Funds in Exchange for State Highway Account Funds and appropriate $930,390 towards the Giddings Street Culvert Replacement Project.
Background Discussion:
RSTP federal funds for fiscal year 2024/25 are eligible to exchange to state funds. The 2024/25 RSTP allocation amount available to the City of Visalia is $930,390. TCAG requires a resolution authorized by the governing board identifying an officer with the authority to sign the Fiscal Year 2024/25 RSTP Exchange for State Highway Account Funds Claim.
RSTP funds are distributed to TCAG as the designated Metropolitan Planning Organization (MPO) for Tulare County. Funds are distributed to member agencies based on population size. Previously, the Visalia UZA (urbanized area) boundary encompassing Visalia, Tulare, Exeter, Farmersville and surrounding unincorporated communities exceeded the 200,000 population size threshold. Agencies encompassed by the Visalia UZA were not able to exchange RSTP federal funds for state cash. The 2020 Census changed how urban areas were determined and as a result all member agencies may exchange, as of fiscal year 2023/24, RSTP funds for state funds.
Staff recommends the exchange of RSTP funds to State Highway Account funds as state funds have fewer restrictions, a shorter environmental process, and no local match requirement compared to federal funds. For fiscal year 2024/25, the RSTP balance available to member agencies for exchange to state funds is $3,082,921. Based on population size, approximately 30.1% is being allocated to the City of Visalia in the amount of $930,390.
Staff recommends the fiscal year 2024/25 allotment be allocated to the Giddings Street Culvert Replacement Project. Council approved on December 16, 2024 a contract award to 4Creeks, Inc. and the total appropriation of $300,000 for design of the street culvert replacement project within Giddings Street between Main Street and Mineral King Avenue. RSTP funds previously exchanged for state funds from the fiscal year 2023/24 allotment amount of $889,030 were subsequently transferred to the Giddings Street Culvert Replacement Project to fund the construction phase of the project. The 2024/25 fiscal year allotment will be utilized towards additional funds needed for construction of Giddings Street Culvert Replacement Project.
Fiscal Impact:
Staff recommends the appropriation of State Highway Account funds in the amount of $930,390 to the Giddings Street Culvert Replacement Project. There is no fee to exchange the RSTP funds to state funds.
Budget Summary: Giddings Street Culvert Replacement Project (CP0773)
Fund 113 SB1 Road Maintenance $250,000
Fund 431 Wastewater $50,000
FY 23/24 RSTP Funds Exchange to State Funds $889,030
FY 24/25 RSTP Funds Exchange to State Funds (current claim) $930,390
Total Project Budget: $2,119,420
Prior Council Action:
June 17, 2024 Adoption of Resolution No. 2024-29 to authorize the City Manager to sign the Fiscal Year 2023-24 Claim to TCAG for RSTP Funds in Exchange for State Highway Account Funds and appropriate $889,030 towards Road Rehabilitation.
Alternatives: Not submit the FY 2024/25 RSTP Funds Exchange Claim Form.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution No. 2025-35 to authorize the City Manager to sign the Fiscal Year 2024/25 Claim to TCAG for RSTP Funds in Exchange for State Highway Account Funds and appropriate $930,390 towards the Giddings Street Culvert Replacement Project.
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Environmental Assessment Status: Environmental review to be completed prior to construction.
CEQA Review: Environmental review to be completed prior to construction.
Attachments:
1. Resolution No. 2025-35
2. FY 2024/25 RSTP Funds Exchange Claim Form