May 4, 2004
SUBJECT: Reallocation and Appropriation of Remaining Available Measure B Pavement Management Program Funds and Budget Modification No. 39
REPORT IN BRIEF
Staff recommends City Council reallocate and appropriate the remaining Measure B Pavement Management Program (PMP) funds for existing projects as described in this report.
BACKGROUND
The Measure B Pavement Management Program (PMP) is funded by the County of Santa Clara's Measure B Transportation Improvement Program, which is a November 1996 voter-approved 1/2 cent general sales tax dollar increment that will extend through April 2006. Measure B PMP funds are administered by the Valley Transportation Authority (VTA), and usage is restricted to pavement maintenance only. The current Measure B projects must be completed on or before July 31, 2004. Funds not expended by the deadline date will be rescinded by VTA.
DISCUSSION
On February 24, 2004, Council appropriated Measure B funds to several street improvement projects categorized into three groups outlined as follows:
Group A - Included four existing Measure B projects which are now completed.
Group B - Included the design and construction costs of five new projects rated as a high priority for street maintenance due to poor existing surface conditions. Construction bids have been received for four of these projects and will be awarded pending Council action on May 4, 2004. The fifth project was completed under a previously awarded contract.
Group C - Included the design costs for six new projects, not included in Group B. These projects were planned for design only so that they would be ready for the construction phase should there be cost savings from completed Measure B projects.
The construction bids for two of the Group B projects came in under budget while the other two came in over budget. Staff has also received bids for the construction of the Group C projects. Budget Modification No. 39 on tonight's agenda would reallocate and appropriate the available Measure B funds to the Group B and Group C projects outlined below.
FISCAL IMPACT
In the February 24, 2004 report, staff stated that there were $48,665 in unallocated Measure B funds remaining, which were set aside for contingencies. At this time, the unallocated Measure B funds have increased to $288,995. This resulted from a combination of cost savings from projects that have been completed under budget and interest earned to-date.
Staff recommends City Council reallocate and appropriate $223,300 of the unspent Measure B PMP funds to the projects outlined below. The remaining $65,695 Measure B funds will be set aside as future contingency for Measure B projects. If these funds are not expended before July 31, 2004, they will be returned to VTA.
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Budget Modification No. 39
FY 2003/2004
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|
|
Current |
Increase (Decrease) |
Revised |
|
Capital Projects Fund
Measure B Sub Fund |
|
|
|
|
|
|
|
|
|
Expenditures |
|
|
|
|
824590 Fir Ave. - Arbor to Worley |
$142,000 |
($51,500) |
$90,500 |
|
824600 Arques Ave. - Fair Oaks to Lastreto |
$155,000 |
($86,000) |
$69,000 |
|
824610 Arques Ave. - Sunnyvale to Morse |
$76,000 |
$71,000 |
$147,000 |
|
824620 Gloucester Ct. - Quail to end |
$19,000 |
$7,000 |
$26,000 |
|
824630 Fulton Ave. - Plaza to Gardner |
$12,239 |
$133,000 |
$145,239 |
|
824650 Sycamore Ave. - El Camino Real to north end |
$4,287 |
$26,000 |
$30,287 |
|
824670 Ferndale Ave. - Borregas to west end |
$4,726 |
$95,000 |
$99,726 |
|
824680 Pecan Ct. - Revere to end |
$2,400 |
$28,800 |
$31,200 |
|
Total |
$415,652 |
$223,300 |
$638,952 |
|
|
|
|
|
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Reserves |
|
|
|
|
Capital Reserve |
$288,995 |
($223,300) |
$65,695 |
PUBLIC CONTACT
Public contact was made through posting of the Council agenda on the City's official notice bulletin board, posting of the agenda and report on the City's Web page, publication of the Council agenda in the San Jose Mercury News, and availability of the report in the Library and the City Clerk's office.
ALTERNATIVES
1. Reallocate and appropriate Measure B Pavement Management Program funds for street improvement projects as outlined in this report and approve Budget Modification No. 39.
2. Do not reallocate and appropriate Measure B Pavement Management Program funds for street improvement projects and do not approve Budget Modification No. 39. Unspent Measure B PMP funds must be returned to the VTA.
RECOMMENDATION
Staff recommends Alternative No. 1.
Prepared by:
Charlene Sun
Finance Management Analyst
Reviewed by:
Barbara Keegan
Assistant Director of Public Works
Reviewed by:
Marvin Rose
Director, Public Works
Reviewed by:
Mary J. Bradley
Director, Finance
Approved by:
Amy Chan
City Manager