HomeMy WebLinkAbout02/20/2001, C8 - TRAFFIC CONGESTION RELIEF (AB 2928):MAINTENANCE OF EFFORT CERTIFICATION r-
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CITY O F SAN LUIS O B 1 S P O
FROM: Bill Statler,.Director of finance
Prepared By: Carolyn Dominguez, Accounting Manager C�
SUBJECT: TRAFFIC CONGESTION RELIEF(AB 2928):
MAINTENANCE OF EFFORT CERTIFICATION
CAO RECOMMENDATION
Adopt a resolution certifying the City's intent to maintain its current level of expenditures for street,
road and highway purposes.
DISCUSSION
AB 2928, also known as the Transportation Congestion Relief Fund, provides approximately $1
billion directly to cities and counties for preservation, maintenance and rehabilitation of the local
street and road system. For 2000-01, the bill allocates $400 million in one-time funds to cities and
counties, of which the City of San Luis Obispo has already received $306,700. This program also
calls for ongoing funding through 2006, although this is not guaranteed.
Use of these funds requires that the Council adopt a resolution certifying its intent to maintain our
current level of General Fund expenditures for street, road and highway purposes. Under AB 2928,
it is calculated based on the average over the last three years (1996-97, 1997-98 and 1998-99) of City
expenditures from the General Fund for street, road and highway purposes. This is a condition of
receiving funds from this program.
FISCAL IMPACT
The City currently commits over $2 million annually for pavement maintenance. The 2000-01 Mid-
Year Budget Review includes a capital improvement plan (CIP) request to increase the funding in
2000-01 for pavement resurfacing and reconstruction by the $306,700 we have already received
under AB 2928. The 2001-03 Financial Plan will include similar requests for the on-going grant
funding anticipated from the State under this program through 2006.
ALTERNATIVES
Reject the Funding. If the Council does not want to indicate an intent to maintain our current level
of General Fund support for street purposes, we will need to return the funding we have already
received for 2000-01 ($306,700), and we will not be eligible for future funding.. However, indicating
this intent would be consistent with two Major City Goals adopted by the Council for 2001-03:
continue implementing street paving and repair programs; and preserve current service levels and
adequately maintain existing facilities and infrastructure.
ATTACHMENT
Resolution
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G:AB 2928 MOE(Traffic Congestio#Comcil Agenda Report v" 47
RESOLUTION NO. (2001 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
CERTIFYING THE CITY'S INTENT TO SUSTAIN ITS LEVEL OF EXPENDITURES FOR
STREET, ROAD AND HIGHWAY PURPOSES
WHEREAS, AB 2928, known as the Transportation Congestion Relief Fund, provides
approximately $1 billion directly to cities and counties for preservation, maintenance and
rehabilitation of the local street and road system; and
WHEREAS, the City has received$306,700 for 2000-01 from this fund; and
WHEREAS, use of these funds imposes a maintenance of effort (per Government Code
Section 14556.26) that requires cities to maintain their current level of General Fund expenditures
for street, road and highway purposes;and
WHEREAS, the formula is calculated on the average over the last three years (1996-97,
1997-98 and 1998-99) of City expenditures from the General Fund for street, road and highway
purposes.
NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo that
the City will sustain its level of General Fund expenditures for street, road and highway purposes in
compliance with Government Code Section 14556.26.
Upon motion of seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of 2001.
Mayor Allen Settle
ATTEST:
Lee Price, City Clerk
APPROVED AS TO FORM:
J rgef oryAttorney
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