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<br />CITY COUNCil MEETING DATE: <br /> <br /> <br />CLERK OF COUNCil USE ONLY: <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />APRIL 16, 2007 <br />TITLE: <br /> <br />APPROVED <br /> <br />D As Recommended <br />D As Amended <br />o Ordinance on 1 st Reading <br />D Ordinance on 20' Reading <br />D Implementing Resolution <br />D Set Public Hearing For <br /> <br />APPROPRIATION ADJUSTMENT FOR TRAFFIC <br />CONGESTION RELIEF MAINTENANCE OF <br />EFFORT REQUIREMENT <br /> <br />!\\o <br /> <br />/2i;pC2 <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Approve an Appropriation Adjustment recognizing $2 million from the State <br />of California Controllers Office into the Property Tax in Lieu of Vehicle <br />License Fees account (account no. 11-01-5011-11) and appropriate the same <br />to the capital outlay account (account no. 11-631-6391) for public works <br />street rehabilitation in order to meet the State of California's Traffic <br />Congestion Relief Maintenance of Effort Requirement. <br /> <br />DISCUSSION <br /> <br />The State of California requires municipalities to commit funds from the <br />General Fund to qualify for different types of state funded programs. <br />This commitment of funds is referred to as "Maintenance of Effort" (MOE). <br />The MOE is determined by various factors the State determines relate to <br />the particular program they are funding. Funding from the State for the <br />Traffic Congestion Relief program funded by Proposition 42 revenues <br />requires a MOE based on a three year spending trend for various street <br />maintenance/rehabilitation expenditures. If an agency fails to spend the <br />required MaE amount in the timeline established by the State they will <br />not receive their allocated Proposition 42 funds and may have to give <br />back funds already received. <br /> <br />The State just completed an audit of the City's MaE for the Traffic <br />Congestion Relief program and determined the City's calculation of its <br />Traffic Congestion Relief MaE did not include all the required <br />expenditures. To meet the MaE requirements for the last two fiscal years <br />the City needs to expend an additional $2 million for street <br />maintenance/rehabilitation from the General Fund by June 30, 2007. Due <br />to time constraints, projects budgeted to be funded by Gas Tax revenues <br />will be funded by the General Fund. Those projects are Civic Center Dr. <br />Fairview to Flower for $1 million; Main Street 8th to 18th for $300,000; <br />and Broadway, Civic Center to First St for $700,000. The budgeted funds <br />not expended with Gas Tax revenue will be re-appropriated for street <br />projects in fiscal year 2007/08. <br /> <br />208-1 <br />