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I2. Reso 5913 - Requesting Distribution of BaRSAA Funds_1I%9lw. KALISPELL City of Kalispell Post Office Box 1997 - Kalispell, MT 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Doug Russell, City Manager From: Susie Turner, Public Works Director Re: Resolution 5913 — A Resolution Approving the Request of Distribution of Funds from the Bridge and Road Safety and Accountability (BaRSAA) Program Meeting Date: March 18, 2019 BACKGROUND: With the passage of State House Bill 473: Bridge and Road Safety and Accountability Act (BaRSAA) in 2017, the City will receive BaRSAA fuel tax funds in addition to the existing gas tax distributions. The Montana Department of Transportation (MDT) will allocate the BaRSAA collected funds to cities, towns, counties, and consolidated city -county governments using the same ratios used to distribute existing motor gas tax revenues to local governments. As of March 1, 2019, local governments may request distribution of their BaRSAA allocations from MDT. Local governments must match all distributions from the BaRSAA account with a minimum 5% funding match. Matching local government funds can be used from any source except the regular gas tax allocation. A request for the distribution of funds must include: (a) the amount of funding sought (up to but not exceeding the amount allocated for that year and any prior years' reservations); (b) copy of an adopted resolution to request and accept the funding by the governing body, identifying the source of the matching funds for the distribution; and (c) a description of the project or projects to be funded. BaRSAA funds can be used: (a) to pay for the construction, reconstruction, maintenance, and repair of rural roads, city or town streets and alleys, bridges, or roads and streets that the city has the responsibility to maintain; or (b) as the match for federal funds used for the construction of roads and streets that are part of the national, primary, secondary, or urban highway systems, or roads and streets that the city has the responsibility to maintain. Local governments must submit an annual report, to MDT by December 31St, that provides a calendar year update on all approved projects, describes any changes to the list of projects funded with BaRSAA monies, and final project costs, if known. When a project funded by BaRSAA monies is completed, the local government will indicate on its final annual report that the project has been completed. Attached for reference is a descriptive guidance document provided by Montana League of Cities and Towns with information regarding the BaRSAA Program allocation, distribution, project usage, and required reporting. DISTRIBUTION REQUEST: The BaRSAA funding available for the City of Kalispell as of March 1, 2019 is $305,077.46. Kalispell's local funding match of 5% totals $15,253.87 and will be allocated from Special Street Maintenance Fund: 2500-421-430244-820. A description of the project's to be funded with the BaRSAA are outlined in the following table. SIT Total Bridge and City 5% Total 2018 From Project Location Project Cost •... Allocation Match R&B Fund 2019 Chip Seal Silverbrook Estates and Mountain Vista Subdivisions $190,436.35 $150,000.01 $7,500.00 $157,500.01 Contractor Mill Chip Court -Buffalo Stage Road to Bruyer Way Loop Bruyer Way Loop - Bruyer Way to Chip Court and overlay- $282,638.00 $155,077.45 $7,753.87 $162,831.32 Velva Drive - Bruyer Way Loop to Buffalo Stage Road Buffalo Stage Subdivision Mt Park Lane - Bruyer Way Loop to Buffalo Stage Road 7B-yeray-Whitefish Stage Road to Buffalo Stage Road r- Total $473,074.35 $305,077.46 $15,253.87 $320,331.33 ACTION REQUESTED: Motion to approve Resolution 5913, A Resolution approving the request of distribution from the Bridge and Road Safety and Accountability Program Funds. ALTERNATIVES: As suggested by City Council. ATTACHMENTS: Resolution 5913 Process for Obtaining BaRSAA Program Allocations, Distribution, Spending, and Reporting RESOLUTION NO. 5913 A RESOLUTION REQUESTING DISTRIBUTION FROM THE BRIDGE AND ROAD SAFETY AND ACCOUNTABILITY PROGRAM FUNDS. WHEREAS, the Bridge and Road Safety and Accountability Account created pursuant to MCA § 15- 70-130 requires the Montana Department of Transportation to allocate accrued funds to cities, towns, counties, and consolidated city -county governments for construction, reconstruction, maintenance, and repair of rural roads, city or town streets and alleys, bridges, or roads and streets that the city, town, county, or consolidated city -county government has the responsibility to maintain; and, WHEREAS, pursuant to the terms of MCA §15-70-130, the City of Kalispell is required to match $1 of local government matching funds to each $20 it has requested from the Bridge and Road Safety and Accountability Account; and, WHEREAS, pursuant to the terms of MCA § 15-70-130, the City of Kalispell may make its request to the Department of Transportation between March 1 and November 1 of the year the funds were allocated; and, WHEREAS, a description of the City of Kalispell projects to be funded are detailed in Exhibit A; and, WHEREAS, the local match for the allocated funds has been budgeted from Special Street Maintenance Fund: 2500-421-430244-820. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. The City of Kalispell requests distribution of its share of the allocated Bridge and Road Safety and Accountability funds to be used for the projects identified in Exhibit A. SECTION 2. The Public Works Director of the City of Kalispell is hereby empowered and authorized to execute such further documents as may be necessary to facilitate the distribution of said funds. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 18TH DAY OF MARCH, 2019. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk EXHIBIT A Bridge and Road Safety and Accountability Act (BaRSAA) Distribution Request for the City of Kalispell Total allocation as of March 1, 2019 for which Kalispell may request from the BaRSAA equals $305,077.46. Kalispell's local funding match of 5% totals $15,253.87 and is allocated from Special Streets Maintenance Fund: 2500-421-430244-820. A description of the projects to be funded are listed below: 1. Silverbrook Estates and Mountain Vista Subdivisions a. Project is a Contractor Chip Seal of 74,874 SY. �S190,436.35 $150,000.01 $7,500.00 2. Buffalo Stage Subdivision -Chip Court, Bruyer Way Loop, Velva Drive, Mt Park Lane, and Bruyer Way a. Project is a Contractor Mill and Overlay of 261,840 square feet of pavement. Total Proiect Cost BaRSAA Allocation Cit 5% Match A project summary of costs for the distribution request from BaRSAA is provided in the table below. Total Bridge and Total 2018 Project Location Project Cost Road Allocation City 5% Match From R&B 2019 Chip Seal Silverbrook Estates and Mountain Vista Subdivisions $190,436.35 $150,000.01 $7,500.00 $157,500.01 Chip Court -Buffalo Stage Road to Bruyer Way Loop Contractor Mill $282,638.00 $155,077.45 $7,753.87 $162,831.32 Bruyer Way Loop -Bruyer Way to Chip Court Velva Drive-Bruyer Way Loop to Buffalo Stage Road and Overlay- Buffalo Stage Subdivision Mt Park Lane-Bruyer Way Loop to Buffalo Stage Road Bruyer Way -Whitefish Stage Road to Buffalo Stage Road Total $473,074.35 $305,077.46 $15,253.87 $320,331.33 Process for Obtaining Local Funds under HB 473 (Bridge and Road Safety and Accountability Act) HB 473 (Rep. Frank Garner), passed by the 65th Legislature and signed by Governor Bullock on May 3, 2017, provides for a graduated increase in the motor fuel tax by fiscal year 2023 (6 cents in gasoline/2 cents in diesel). Each fiscal year, 35% or $9.8 million of the proceeds (whichever is greater) is allocated to the Montana Department of Transportation (MDT) and the remainder (approximately $21 million by FY2021) is allocated to local governments through a new Bridge and Road Safety and Accountability Program (BaRSAA). This guidance document provides a roadmap of the process local governments will follow to obtain these new BaRSAA funds. Allocation of Revenues Collected The allocation of the motor fuel tax revenues refers to the MDT calculation of and notification to local governments of the amounts available for each entity on an annual basis. Under HB 473, MDT will begin to assess the new tax on July 1, 2017. Fuel that is distributed in a month is reported to MDT on the 25th of the following month, and the tax on that fuel is then collected 5 days later. Therefore, the first allocation of funds by MDT on March 1, 2018 will consist of the additional motor fuel tax revenues collected for July -October, 2017 ("FY2018 BaRSAA funds"). Every year thereafter, the allocation will consist of a full 12 months of collections. MDT will allocate the collected funds to cities, towns, counties, and consolidated city -county governments using the same ratios used to distribute existing motor fuel tax revenues to local governments through the highway restricted account as set forth in Section 15-70-101(2)(b), (2)(c), and (3), MCA. The new funds will be held in a separate BaRSAA account until distributed. Distribution of BaRSAA Allocation The distribution of BaRSAA funds refers to the actual disbursement of allocated or reserved BaRSAA funds from MDT to local governments. Beginning March 1, 2018, local governments may request distribution of their allocation from MDT. Local governments must match all distributions from the BaRSAA account with a minimum 5% funding match. MDT is using the WebGrants online application system to accept requests for distribution of BaRSAA allocations by local governments. This system will allow for electronic entry of the information necessary for the distribution of funds to local governments. A request for the distribution of funds must include: a) the amount of funding sought (up to but not exceeding the amount allocated for that year and any prior years' reservations); b) copy of an adopted resolution to request and accept the funding by the governing body, identifying the source of the matching funds for the distribution; and c) a description of the projector projects to be funded. BaRSAA funds can be used: a) to pay for the construction, reconstruction, maintenance, and repair of rural roads, city or town streets and alleys, bridges, or roads and streets that the city, town, county, or consolidated city -county government has the responsibility to maintain; or Montana League of Cities and Towns 3/2/2018 Process for Obtaining Local Funds under HB 473 (Bridge and Road Safety and Accountability Act) b) as the match for federal funds used for the construction of roads and streets that are part of the national, primary, secondary, or urban highway systems, or roads and streets that the city, town, county, or consolidated city/county government has the responsibility to maintain. For MDT -administered projects, the local government may request that MDT credit its BaRSAA allocation towards its local match for a federally funded project administered by MDT. BaRSAA funds can be used to pay project costs incurred before an allocation is made, so long as the costs were incurred during the same fiscal year in which they are distributed. BaRSAA funds cannot be used to purchase capital equipment. Matching local government funds can be obtained from any source except the regular gas tax allocations in 15-70-101, MCA. Potential matching fund sources include local funds shown as a budgeted expense, including general funds; special district assessments; or state or federal funds, grants, or loans. Requests for distribution of FY2018 BaRSAA funds must be made between March 1 and November 1, 2018 (every March 1 to November I thereafter for the annual BaRSAA allocation). Obligation or Saving of BaRSAA Funds The obligation of funds by a local government occurs when the funds are committed to a project, either through a contract or inclusion as an authorized project expenditure in the adopted annual budget. Once the local government obtains its distribution of FY2018 BaRSAA funds, it may either obligate the funds or place the funds and the corresponding matching funds in a restricted asset account within the motor fuel tax apportionment to be carried forward until the funds are obligated. Local governments must obligate the FY2018 BaRSAA funds by March 1, 2023 (every March I thereafter, 5 years after each annual allocation is made). The intent of the law is that local governments will use BaRSAA funds in a timely manner to demonstrate improvements to road infrastructure occurring as a result of the passage of HB473. Local governments must follow applicable competitive bidding requirements when entering into contracts that exceed the thresholds provided for in 7-5-2301, MCA and 7-5-4302, MCA (currently $80,000). Reservation of BaRSAA Allocation Reserve means a local government's request, by resolution, that allocated BaRSAA funds will not be distributed by MDT for up to two years. If a city, town, county, or consolidated city - county government is unable to provide the 5% match required to request a distribution of its BaRSAA funds, it may instead request to reserve the funds. To request a reservation of funds, the local government must submit a copy of an adopted resolution to request to reserve the funds. MDT is also using the WebGrants online system to accept requests for reservation of BaRSAA funds. Montana League of Cities and Towns 3/2/2018 Process for Obtaining Local Funds under HB 473 (Bridge and Road Safety and Accountability Act) Once a local government obtains the required 5% matching funds, it may request distribution of the funds — and any eligible reserved funds from prior years — beginning the following March 1, as set forth above. The local government must request the distribution of reserved funds by November 1 of the fiscal year 2 years after the request to reserve the funds, or its BaRSAA allocation is forfeited and added to the account for allocation among all the local governments during the next allocation. Requests for reservation of FY2018 BaRSAA funds must be made between September 1, 2018 and November 1, 2018 (every September 1-November 1 of the fiscal year after the fiscal year in which BaRSAA funds are allocated). Annual Reports and Remaining Funds Local governments must submit an annual report to MDT that provides a calendar year update on all approved projects, describes any changes to the list of projects funded with BaRSAA monies, and final project costs, if known. When a project funded by BaRSAA monies is completed, the local government will indicate on its final annual report that the project has been completed. Annual reports for each calendar year will be due to MDT by December 31 of each year, to align the BaRSAA reporting deadline with that required for local government annual financial reports to the Department of Administration in 2-7-503, MCA. If any BaRSAA funds obligated to a project remain unspent upon project completion, the local government must notify MDT within 90 days of project completion that the local government intends to use the funds for additional projects within the 5-year time period for use of the funds, or intends to remit any unused funds to MDT. Funds remitted to MDT are added to the BaRSAA account for allocation among all the local governments during the next allocation. MDT is required to establish a website where the projects funded with BaRSAA allocations will be identified for each local government. To facilitate this transparency of information, MDT is also using the WebGrants online system to accept annual and unspent funding reports. Montana League of Cities and Towns 3/2/2018