Agenda Item Wording:
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Adopt Resolution & Exchange Regional Transportation funds to State Highway Account Funds: Adopt Resolution No. 2024-29 to authorize the City Manager to sign the Fiscal Year 2023/24 Claim to the Tulare County Association of Governments for Regional Surface Transportation Program Funds in Exchange for State Highway Account Funds and appropriate $889,030 toward Road Rehabilitation.
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Deadline for Action: None
Submitting Department: Community Development
Contact Name and Phone Number:
Dolores Verduzco, Financial Analyst, Dolores.Verduzco@visalia.city, (559) 713-4540 Jason Huckleberry, Engineering & Building Director, Jason.Huckleberry@visalia.city, (559) 713-4495
Department Recommendation:
Staff recommends Council adopt Resolution 2024-29 authorizing the City Manager to sign the Fiscal Year 2023/24 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 $889,030 toward a Road Rehabilitation project.
Background Discussion:
RSTP federal funds for fiscal year 2023/24 are eligible to exchange for state funds. The estimated 2023/24 RSTP allocation amount available to the City of Visalia is $889,030. TCAG requires a resolution authorized by the governing board identifying an officer with the authority to sign the Fiscal Year 2023/24 RSTP Exchange for State Highway Account Funds Claim.
RSTP funds are distributed to TCAG as the designated Metropolitan Planning Organization (MPO) for Tulare County for surface transportation improvements. 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 combined exceeded the 200,000-population threshold. Agencies encompassed by the Visalia UZA were not able to exchange RSTP federal funds for state funds. The 2020 Census changed how urban areas were determined and as a result all member agencies may exchange, beginning 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 2023/24, the RSTP balance available to member agencies for exchange of state funds is $2,952,831. Based on population size, approximately 30.1% is being allocated to the City of Visalia in the amount of $889,030. Staff recommends funds be utilized toward road rehabilitation. The street/road segments to be rehabilitated will be identified through the Pavement Management System.
Fiscal Impact:
Staff recommends the appropriation of State Highway Account funds in the amount of $889,030 to a road rehabilitation project. There is no fee to exchange the RSTP funds for state funds. RSTP funds were not included in the FY 24/25 and 25/26 Budget due to these funds being approved on a project basis.
Prior Council Action: None.
Alternatives: Not submit the FY 2023/24 RSTP Funds Exchange Claim Form.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution No. 2024-29 to authorize the City Manager to sign the Fiscal Year 2023/24 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 $889,030 toward Road Rehabilitation.
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Environmental Assessment Status: N/A.
CEQA Review: Environmental review to be completed prior to construction.
Attachments:
1. Resolution 2024-29
2. FY 2023-24 RSTP Funds Exchange Claim Form