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Recommendation to approve allocation of Proposition 1B proceeds for each Council District. (Citywide)
DISCUSSION
On November 11, 2008, Council adopted a list of street projects for funding with Proposition 1 B bond proceeds and authorized staff to apply for release of the second round of funds estimated at $7,477,345. These funds were to be made available on a first-come, first-served basis. On November 12, 2008, staff submitted the required application and on November 14, 2008, the State Department of Finance certified the completeness of staff's submittal. On December 15, 2008, funds in the amount of $7,327,798 were received.
Concurrently, the State's budget crisis has compelled the City to implement a number of strategies to protect the City's budget from possible shortfalls resulting from the State's failure to pay anticipated revenues, particularly, Proposition 42 and Gas Tax payments. As a result, the City's residential street repair program, which is ninety percent funded by these two sources, was suspended until actual funds are received.
The receipt of the Proposition 1 B proceeds allows the City to again proceed with its residential street repair program. However, staff seeks direction on the methodology to allocate these proceeds to each Council District. Until such allocation is determined, the amount of design and construction work by each Council District cannot be determined.
To assist in analysis, staff has prepared two scenarios, which Council may choose to consider in their deliberations. These scenarios are detailed on the attached Exhibit A.
This matter was reviewed by Deputy City Attorney Linda Trang on January 13, 2009 and by Budget Management Officer Victoria Bellon January 13, 2009.
SUSTAINABILITY
All streets rehabilitated with Proposition 1 B funds will require that old asphalt material removed under these contracts be recycled into new asphalt or utilized as base material on other street projects. In addition, these streets will be resurfaced with asphalt containing up to 15 percent recycled material as well as recycled rubber from old tires.
Finally, all projects will require the road base be made from recycled concrete, rock, sand, and asphalt, and that all concrete work include recycled waste ash, diverting these materials from our landfills.
TIMING CONSIDERATIONS
City Council action on this matter is requested on February 3, 2009, in order to allow staff to promptly proceed with residential street design and construction efforts.
FISCAL IMPACT
There is no fiscal impact. Proposition 1 B funds are currently appropriated in the Capital Improvement Program in the Department of Public Works.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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PATRICK H. WEST |
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CITY MANAGER |