Proposition 1B: Onetime Funds of $400,000 from Local Streets and Roads Account (LSR)

ABSTRACT: On the City Council Agenda for 4 March 2008 is a Resolution “authorizing staff to apply to the State of California Department of Finance for release of Proposition 1B bond funds for street and road projects and approving a list of projects to be funded with the bond proceeds.” A SUMMARY of Administrative Services Director Joyce Giuffre’s Agenda Item Summary and Staff Report is presented, including EXHIBIT A City of Carmel-by-the-Sea Proposed Projects for Prop 1B Funding. ADDITIONAL INFORMATION FROM THE LEAGUE OF CALIFORNIA CITIES and COMMENTS are presented.

City Council Agenda
Regular meeting
March 4, 2008

X. Resolutions

C. Consider a Resolution authorizing staff to apply to the State of California Department of Finance for release of Proposition 1B bond funds for street and road projects and approving a list of projects to be funded with the bond proceeds.

SUMMARY:
According to Administrative Services Director Joyce Giuffre’s Agenda Item Summary and Staff Report, the City of Carmel-by-the-Sea has been allocated $400,000 from Proposition 1B Transportation Bond. The bond proceeds are to be used by the City to fund the maintenance and improvement of local transportation facilities. If the City’s funding request is received and approved by the State in March, the City may receive funding in April. The projects, recommended by the City Engineer and Public Works Superintendent, are scheduled to be completed in FY 2008/09. Exhibit "A" list the projects, as follows:

EXHIBIT A City of Carmel-by-the-Sea
Proposed Projects for Prop 1B Funding

Description---------------------Estimated Amount
Repave Dolores between 4th & 5th $33,000
Repave Del Mar $166,400
Repave Sunset Center parking lot $50,000
Grind and repave 8 crosswalks on Ocean Avenue $50,000
Slurry seal Scenic Avenue from 8th to Santa Lucia $37,000
Slurry seal truck route - Carpenter to Junipero $26,000
10% design and construction engineering costs $37,600
Total $400,000

ADDITIONAL INFORMATION FROM THE LEAGUE OF CALIFORNIA CITIES:
Proposition 1B (Transportation Bond):
Implementation of the $2 Billion Local Streets and Roads Account

Intended to supplement existing investments in local streets and roads, Proposition 1B funds are “onetime” funds. Of the total $950 million, $550 million is appropriated to Cities. Each city is guaranteed either $400,000 or half their total bond funds, which ever is greater in the 07-08 FY.

Use it or Lose it Requirement:
Funds are to be expended within three fiscal years after the FY in which the State Controller makes the allocation. This means that all Proposition 1B LSR monies appropriated in FY 2007-08 must be expended by June 30, 2011.

Requirements to Trigger Allocation by the State Controller:
The City must provide a list of projected expected to be funded with bond funds to the Department of Finance (DOF) before an allocation is made.
The list of projects must include, at a minimum, the following:
• A description and location of the proposed project
• A proposed schedule for the project’s completion
• The estimated useful life of the capital improvement

COMMENTS:
• On EXHIBIT “A:”
Slurry seal truck route - Carpenter to Junipero refers to 2nd Av.
Repave Sunset Center parking lot refers to the south parking lot off 10th Av.

• Nichols Consulting Engineers 2007 PCI Values for Street Projects in EXHIBIT "A", as follows:
Dolores between 4th & 5th, Repave: 2007 PCI 64 (“Fair” Condition)
Del Mar, Repave: 2007 PCI 16 (“Very Poor” Condition)
Scenic Avenue from 8th to Santa Lucia, Slurry Seal:
-- 8th Av. – BLK A3 S/END: 2007 PCI 74 (“Good” Condition)
-- BLK A3/END-SANTA LUCIA AV.: 2007 PCI 90 (“Excellent” Condition)
2nd Av. between Carpenter & Junipero, Slurry Seal:
-- 2nd Av. bet. JUNIPERO Av.-SANTA FE ST.: 2007 PCI 55 (“Fair” Condition)

• For context, Nichols Consulting Engineers cites an “average city budget” of $382,000/year, which is less than these onetime funds of $400,000 from the State.

• Ideally, the City should slurry seal all of the City’s streets, roads and avenues every 5-7 years, according to City Engineer Clayton Neill. Historically, the City Council has not budgeted for these slurry seal street projects.

• Presently, City Engineer Clayton Neill is compiling a list of priority street projects, beginning with the lowest PCI values and ending with the highest PCI values, to be used as a guide for future street projects to be funded by the City.