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HomeMy WebLinkAbout05-07-18 City Commission Packet Materials - C8. Resolution 4906, Distribution of House Bill 473 Request Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Commission Resolution No. 4906 – Requesting distribution of Bridge and Road Safety and Accountability program funds MEETING DATE: May 7, 2018 AGENDA ITEM: Consent RECOMMENDATION: Approve Resolution No. 4906- Approve resolution for requesting distribution of Bridge and Road Safety and Accountability program funds BACKGROUND: HB 473, 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 a Bridge and Road Safety and Accountability Program (BaRSAA). 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 102 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. 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: 1. the amount of funding sought (up to but not exceeding the amount allocated for that year and any prior years’ reservations); 2. 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 3. description of the project or projects to be funded. This resolution is our request as outlined in number 2 and 3 above to receive our funding for the project outlined in the Capital Improvement Plan and adopted in the fiscal year 2018 budget. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: The funds will be requested and spent on the project as outlined in the Capital Improvement Plan and approved in the Fiscal Year 2018 Budget. Attachment: Resolution No. 4906 Report compiled on April 20, 2018 103 Page 1 of 3 COMMISSION RESOLUTION NO. 4906 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA. REQUESTING DISTRIBUTION OF 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, a city, town, county, or consolidated city-county government that requests funds under the Bridge and Road Safety and Accountability Account must match each $20 requested with $1 of local government matching funds; and, WHEREAS, a city, town, county, or consolidated city-county government requesting distribution of allocated funds may make such a 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 projects to be funded are detailed in Appendix A; and, WHEREAS, the local match for the allocated funds has been budgeted from Street Arterial Construction Fund and the Street Impact Fee Fund NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: 104 Resolution 4906 Distribution HB473 Request Page 2 of 3 1. City of Bozeman requests distribution of its share of the allocated Bridge and Road Safety and Accountability funds to be used for the projects identified in Appendix A. 2. That Kristin Donald, the City Finance Director is hereby empowered and authorized to execute such further documents as may be necessary to facilitate the distribution of said funds. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 7th day of May, 2018. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 105 Resolution 4906 Distribution HB473 Request Page 3 of 3 Appendix A SIF036 COTTONWOOD (BABCOCK TO DURSTON) - CONSTRUCTION This project consists of widening Cottonwood Road from West Babcock Street to Baxter Street to a three lane urban arterial standard. This includes one travel lane in each direction, bike lanes on each side, curb and gutter throughout, boulevard, sidewalks and a raised median. Cottonwood Road serves as an important element in Bozeman's west side street system and serves as a primary north-south corridor on the west side of the city. 106