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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 16, 2007 <br />TITLE: <br />APPROPRIATION ADJUSTMENT FOR <br />CONGESTION RELIEF MAINTENANCE <br />EFFORT REQUIREMENT <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />TRAFFIC ^ <br />^ As Amended <br />Ordinance on 1~' Reading <br />OF <br />^ Ordinance on 2n° Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CONTINUED TO <br />FILE NUMBER <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 />DISCUSSION <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 MOE 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 />The State just completed an audit of the City's MOE for the Traffic <br />Congestion Relief program and determined the City's calculation of its <br />Traffic Congestion Relief MOE did not include all the required <br />expenditures. To meet the MOE 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 />20B-1 <br />