Agenda Item Wording:
title
Adopt resolution and exchange Federal funds for State Highway Account Funds - Adopt Resolution No. 2026-36 authorizing the City Manager to sign the fiscal year 2025/26 claim to the Tulare County Association of Governments for Regional Surface Transportation Program Funds in exchange for State Highway Account Funds in the amount of $1,008,740 and appropriate funds towards the Stevenson Mill Creek culvert replacement project.
body
Agenda Date: 06/01/2026
Prepared by:
Dolores Verduzco, Financial Analyst, dolores.verduzco@visalia.gov, (559) 713-4540
Katherine Woodhull-Fuget, Associate Engineer, katherine.woodhull-fuget@visalia.gov, (559) 713-4447
Chris Crawford, City Engineer, chris.crawford@visalia.gov, (559) 713-4331
Jason Huckleberry, Engineering & Building Director, jason.huckleberry@visalia.gov, (559) 713-4495
Department Recommendation: Staff recommends Council adopt Resolution 2026-36 authorizing the City Manager to sign the fiscal year 2025/26 claim to the Tulare County Association of Governments (TCAG) for Regional Surface Transportation Program (RSTP) Funds in exchange for State Highway Account Funds in the amount of $1,008,740 and appropriate funds towards the Stevenson Mill Creek culvert replacement project.
Summary:
RSTP federal funds for fiscal year 2025/26 are eligible to exchange to state funds. The 2025/26 RSTP allocation amount available to the City of Visalia is $1,008,740. TCAG requires a resolution authorized by the governing board identifying an officer with the authority to sign the fiscal year 2025/26 RSTP exchange for State Highway Account Funds Claim.
Background Discussion:
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 previously not able to exchange federal RSTP 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 federal RSTP funds to nonfederal 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 2025/26, the RSTP balance available to member agencies for exchange to state funds is $3,343,814. Based on population size, approximately 30.17% is allocated to the City of Visalia in the amount of $1,008,740.
Staff recommends designating the fiscal year 2025/26 allotment and appropriate to the Stevenson Mill Creek Culvert replacement project. The Mill Creek culvert at Stevenson is one of the oldest box culverts in the city and is around the same age as the Mill Creek culvert at Giddings St that was just replaced. The Stevenson culvert is showing signs of nearing its end of useful life and should be replaced prior to, or in conjunction with, the relocation of Fire Station 51. The scope of work includes the replacement of the existing structure in-kind and replacement of the overlying street structural section, as well as lowering of the existing sewer main if needed.
In addition, staff plans to designate the next fiscal year 26/27 allotment to this project to utilize towards the additional funds needed for the construction phase.
Fiscal Impact including annual maintenance and operating costs:
Staff recommends the appropriation of State Highway Account funds in the amount of $1,008,740 to the Stevenson Mill Creek culvert replacement project. There is no fee to exchange federal RSTP funds to nonfederal State Highway Account funds.
Below is a summary of the additional appropriations included in the next 2-Year, FY 2026/27 and FY 2027/28, Capital Improvement Program to complete the funding needed for the Stevenson Mill Creek culvert replacement project. Wastewater funds are identified in the summary below as the existing sewer main may need to be lowered which will be evaluated as a part of the design phase.
Budget Summary: Stevenson Mill Creek culvert replacement project:
FY 25/26 RSTP Funds Exchange to State Funds (current claim)(2370) $1,008,740
FY 26/27 RSTP Funds Exchange to State Funds (estimate) (2370) $900,000
FY 26/27 Gas Tax Funds (to be appropriated) (2370) $27,000
FY 26/27 Wastewater Funds (to be appropriated) $39,300
FY 27/28 Wastewater Funds (to be appropriated) $149,200
Total Estimated Cost: $2,124,240
Maintenance costs: Maintenance costs are not expected to increase as a result of this project as the current infrastructure is existing. This project will replace the existing Mill Creek box culvert at Steveson St. and will include any associated road repairs.
Prior Council Action:
May 19, 2025
Adoption of 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.
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 2025/26 RSTP Funds Exchange Claim Form
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution No. 2026-36 to authorize the City Manager to sign the fiscal year 2025/26 claim to TCAG for RSTP Funds in exchange for State Highway Account Funds in the amount of $1,008,740 and appropriate funds to the Stevenson Mill Creek culvert replacement project.
Environmental Assessment Status: Environmental review to be completed prior to construction.
CEQA Review: Environmental review to be completed prior to construction.
Deadline for Action: 06/01/2026
Attachments:
1. Resolution No. 2026-36
2. FY 2025/26 RSTP Funds Exchange Claim Form
Strategic Goal:
|
☐ Economic Vitality |
☒  Organizational Excellence |
☐ Fiscal Strength |
☒  Infrastructure & Growth |
☐  Quality of Life |