Agenda Item Wording:
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Amendment to Caltrans Clean California Agreement - Authorize the City Manager to execute an amendment to extend the current Clean California State Initiative Grant agreement with Caltrans by one (1) year through June 30, 2025, to allow for the expenditure of remaining funds available in the amount of $220,944.50.
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Deadline for Action: 5/20/2024
Submitting Department: Public Works
Contact Name and Phone Number: Jason Serpa, Public Works Manager, jason.serpa@visalia.city <mailto:jason.serpa@visalia.city>, 713-4533; Nick Bartsch, Public Works Director, nick.bartsch@visalia.city, 713-4052
Department Recommendation:
Staff recommends that Council authorize the City Manager to execute an amendment to extend the current Clean California State Initiative Grant agreement with Caltrans by one (1) year through June 30, 2025, to allow for the expenditure of funds available in the amount of $220,944.50.
Background Discussion:
The Clean California Program is a transformative initiative to remove litter, create jobs, and beautify California. This 3-year program which began in 2021 delivered $1 billion in statewide dollars for litter abatement, public education, and other beatification projects.
Through the litter abatement portion of the Clean California Initiative, Caltrans developed the Clean California Local Maintenance Agreement. On October 4, 2021, Council approved authorization for the City Manager to execute a contract with Caltrans for the maintenance and litter removal of state right of ways within the City limits. The City then subcontracted the primary work to CSET, Inc. so that local jobs may be created through the Local Conservation Corps. Dedicated local conservation crews are assigned daily to clean the state routes with the supervision of Caltrans personnel.
With the project and funding set to expire on June 30, 2024, Caltrans has indicated that their agency is able to release some disencumbered funds from the first year of the project and allow any unexpended funds from this fiscal year continue into the next FY24/25. With these funds, staff projects that the project would be able to continue for approximately six months longer than June 30, 2024, ending in December of 2024. Even though the extension amendment offers no new funding, it will allow the City to utilize all the funds that were allocated in 2021.
Fiscal Impact:
Due to the Clean California Initiative’s late start in FY21/22, an amount of $73,816 was disencumbered as it was unspent within that fiscal year. The new Caltrans amendment allows the City to use those unspent grant funds along with any funds left within the current FY23/24. All funds budgeted for FY22/23 were spent. In the figure below, the amount unspent to date is as follows:
Note: The expenditures in the current FY23/24 only reflect through December of 2023 and staff estimates that another $100,000 will be spent by June 30, 2024. This will leave approximately $120K for the extension period of FY24/25, enough for an estimated 6 months of operation.
The Solid Waste draft budget already accounts for the project to be completed, so no additional dollars need to be appropriated. This project is paid from the Solid Waste Enterprise Fund (441).
Prior Council Action: October 4, 2021 - Authorization for the City Manager to execute a 3-year agreement with Caltrans to receive $555,930 through the Clean California Initiative.
Other: N/A
Alternatives: To not authorize the City Manager to execute an additional extension of one year for the complete expense of funds. Staff does not recommend this as it would end the program 6 months earlier than needed and would restrict the grant dollars from being brought into the community.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move that Council authorize the City Manager to execute an amendment to extend the current Clean California State Initiative Grant agreement with Caltrans by one (1) year through June 30, 2025, to allow for the expenditure of remaining funds available in the amount of $220,944.50.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Amendment No. 1 to Clean California Maintenance Agreement with City of Visalia