I4. Reso 5863 - Bridges and RoadsCITY0F.,ICity of Kalispell
Y Post Office Box 1997 - Kalispell, MT 59903
♦ I Telephone: (406) 758-7701
NIONT�NA Fax: (406) 758-7758
To: Doug Russell, City Manager
From: Susie Turner, Public Works Director
Re: Resolution 5863 — A Resolution Approving the Request of Distribution of the
Bridge and Road Safety and Accountability (BaRSAA) Program Funds
Meeting Date: April 2, 2018
BACKGROUND: With the passage of HB 473: Bridge and Road Safety and Accountability
Act (BaRSAA) on May 3, 2017, the City will receive BaRSAA fuel tax funds in addition to the
existing gas tax distributions. 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, 2018, 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 31 st, 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, 2018 is $141,786.85. Kalispell's local funding match of 5% totals $7,089.34 and will
be allocated from Special Street Maintenance Fund: 2500-421-430244. A description of the
project's to be funded with the BaRSAA are outlined in the following table.
Street. Name
From Location
To Location
Treatment
ProJect
Alloc.ition
Match
BaRSAA &
Buffalo Stage
Whitefish Stage
Bruyer Way
Mill and
$102,290.00
$35,446.71
$1,772.34
$37,219.05
Road
Overlay
West Nicklaus
Palmer Drive
New
Mill and
$101,050.23
$35,446.71
$1,772.34
$37,219.05
Drive
avement
Overlay
Spring Creek
All Streets
---------------
Chip Seal
$59,447.90
$35,446.71
$1,772.34
$37,219.05
Estates
81h Street West
41h Ave West
51h Ave W
Mill and
$22 775.28
$17,723.36
$886.17
$18,609.52
Overlay
First Ave. East
Montana Street
Center Street
Mill and
$22,999.59
$17,723.36
$886.17
$18,609.52
Overlay
Total
$308,563.00
$141,786.85
$7,089.36
$148,876.19
ACTION REQUESTED: Motion to approve Resolution No. 5863, 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 5863, Process for Obtaining BaRSAA Program Allocations,
Distribution, Spending, and Reporting
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 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, 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 1 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
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
RESOLUTION NO.5863
A RESOLUTION REQUESTING DISTRIBUTION FROM THE BRIDGE AND ROAD
SAFETY AND ACCOUNTABILITY PROGRAM FUNDS.
WHEREAS, the Bridge and Road Safety and Accountability Account created by HB 473 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 HB 473, 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 HB 473, 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.
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 2ND DAY OF APRIL, 2018.
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, 2018 for which Kalispell may request from the BaRSAA equals
$141,786.85. Kalispell's local funding match of 5% totals $7,089.34 and is allocated from Special Streets
Maintenance Fund: 2500-421-430244. A description of the projects to be funded are listed below:
1. Buffalo Stage Road from Whitefish Stage Road to Bruyer Way
a. Contractor Mill and Overlay of 83,000 square feet of pavement.
Total Project Cost BaRSAA Allocation ty 5% Match
2. West Nicklaus Drive from Palmer Drive to new pavement
a. Contractor Mill and City Overlay of 166,470 square feet of pavement.
Total Aroject Cost BaRSAA Allocation y'5%� 1Vlatch
1 1 1 ••. ,
3. Spring Creek Estates Subdivision (all streets)
a. Contractor Chip Seal of 272,972 square feet of pavement.
Total Project Cost RaIISAA Allocation City 5% Match
4. 8' Street West from 4th Ave West to 5th Ave West
a. City Mill and Overlay of 15,750 square feet of pavement.
Total Project C BaRS&iA Allocation Litv.5% �l atch
._�
5. First Ave E from Montana Street to Center Street
a. City Mill and Overlay of 41,280 square feet of pavement.
Total Project Cost BaRSAA Allocation City 5% Match
A project summary of costs for the distribution request from BaRSAA is provided in the table below.
Street Name
From
To Location
Total Project
BaRSAA
City 51Y0
Total
BaRSAA
Location
Cost
Allocation
Match
City Funds
1. Buffalo Stage
Whitefish
Bruyer Way
$102,290.00
$35,446.71
$1,772.34
$37,219.05
Road
Stage
2. West Nicklaus
Drive
Palmer Drive
New pavement
$101,050.23
$35,446.71
$1,772.34
$37,219.05
3. Spring Creek
All Streets
---------------
$59,447.90
$35,446.71
$1,772.34
$37,219.05
Estates
4. 81 Street West
41 Ave West
5th Ave W
$22,775.28
$17,723.36
$886.17
$18,609.52
5. First Ave. East
Montana
Street
Center Street
$22,999.59
$17,723.36
$886.17
$18,609.52
Total
$308,563.00
$141,786.85
$7,089.36
$148,876.19