DATE: June 4, 2019
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: 2018-2019 Optional Regional Surface Transportation Program Federal Apportionment Exchange and State Match Program Agreement No. X19-5942(295)
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute an Agreement with the California Department of Transportation, for the FY 2018-2019 Optional Regional Surface Transportation Program Federal Apportionment Exchange and State Match Program to exchange $268,108 in Federal funds for an equal amount of non-Federal funds from the State Highway Account, and claim $100,000 of State Match Program funds.
REPORT
Approval of the recommended action would authorize the execution of an agreement with the California Department of Transportation (Caltrans) allowing the County to exchange $268,108 in Federal funds for non-Federal funds and receive $100,000 in non-Federal funds to match federally funded projects, making available $368,108 for road and bridge improvements on federally designated highways within the County. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the County would not receive the State Matching funds, and thus, additional monies from the Road Fund would be required to fund the County’s portion of various projects. Additionally, the County will not be able to utilize the flexibility associated with the non-Federal funds.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Funds received through the proposed agreement ($368,108) will be recognized in the Department of Public Works and Planning Roads Org 4510, Fund 0010, Subclass 11000, Account 3457 FY 2019-20 Recommended Budget and can only be used for transportation purposes in conformance with Article XIX of the California Constitution.
DISCUSSION:
The Federal Highway Administration (FHWA), through the Federal Apportionment Exchange Program, makes funds available for road and bridge improvements on federally designated highways within the County. The County’s costs for scheduled improvements to the roads and bridges are partially offset by Federal funds. The Federal participation rate varies up to a maximum of 100%.
Under the provisions for Section 182.6 of the California Streets and Highways Code (Regional Surface Transportation Program), counties may voluntarily exchange a predetermined amount of Federal funds for an equal amount of non-Federal funds in the State Highway Account. In exercising its option to exchange Federal funds for State Highway Account funds, the County gains flexibility to use that dollar amount on any County highway or bridge reconstruction project. The amount of funds available to the County is $268,106, which has remained unchanged since FY 1992-93.
Section 182.9 of the Streets and Highways Code requires the allocation of State Matching funds (non-Federal) from the State Highway Account to the County. The County is scheduled to receive $100,000, the maximum amount under the State Match Program. The funds received under this program are not tied to Federal requirements, thus simplifying the restrictions on the use of these funds; however, these funds may not be used for overhead or other non-direct expenditures.
Participation in the Federal Apportionment Exchange Program and State Match Program by local agencies is optional. A new agreement between the County and Caltrans is executed annually. Funding for these programs is subject to being appropriated as part of the annual State Budget Act.
With your Board’s approval, $368,108 ($268,108 plus $100,000) will be made available for road and bridge improvements on federally designated highways within the County.
OTHER REVIEWING AGENCIES:
Caltrans prepared the proposed agreement.
REFERENCE MATERIAL:
BAI #52, June 12, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with California Department of Transportation
CAO ANALYST:
Sonia M. De La Rosa