COUNTY OF SAN MATEO Inter-Departmental Correspondence
Department of Public Works
DATE:					February 6, 2008
BOARD MEETING DATE:					February 26, 2008
SPECIAL NOTICE/HEARING:					None
VOTE REQUIRED:					Majority
TO:			Honorable Board of Supervisors
FROM:			James C. Porter, Director of Public Works
SUBJECT:			APPROVAL OF A REVISED LIST OF ROAD PROJECTS TO BE CONSTRUCTED BY THE DEPARTMENT OF PUBLIC WORKS UTILIZING FISCAL YEAR 2007-08 PROPOSITION 1B BOND MONIES AND ROAD FUNDS
RECOMMENDATION:
Adopt a resolution approving a revised list of road projects to be constructed by the Department of Public Works utilizing fiscal year 2007-08 Proposition 1B bond monies and Road Funds.
VISION ALIGNMENT:
Commitment: Ensure the basic health and safety for all.
Goal 7: Maintain and enhance the public safety of all residents and visitors.
These proposed projects will improve County roads for the benefit of the general public.
BACKGROUND:
PREVIOUS BOARD ACTION
1.		Adopted the County budget for fiscal years 2007-08 and 2008-09.
2.		Adopted initial list of projects on December 18, 2007, to be funded with Proposition 1B bond monies and Road Funds.
HISTORY
In November 2006, California voters passed Proposition 1B, which authorized the distribution of bond monies to California agencies for the purpose of maintaining and improving an agency’s road infrastructure.
DISCUSSION:
Upon finalization of the State of California budget in September 2007, San Mateo County’s share of Proposition 1B bond monies was determined to be approximately $7,180,739.91, as reported to your Board in the December 18, 2007 Board report. The County was notified by the State Controller’s Office in January 2008 that County’s share is calculated to be $7,165,625.45.
In order to qualify for these funds, a local agency’s governing body must approve a specific list of projects for which the agency intends to utilize Proposition 1B bond monies and adopt an appropriation in the County budget. These funds were included in the September 2007 revisions to the Public Works budget. On December 18, 2007 the Board adopted the specific list of projects to be funded.
On January 10, 2008 the Governor released his proposed 2008-09 budget including proposals for mid-year adjustments. Included in these proposals is the recommendation to withhold Gas Tax allocations to cities and counties from April 2008 through August 2008. The estimated impact of this recommendation to San Mateo County Public Works is $5 Million. This will create a serious impact on the Department’s ability to maintain existing operations. On January 15, 2008 the State Department of Finance released the forms for Counties to apply for their allocation of bond funds. One of the allowable categories included for use of the funds is for pavement repairs including pothole filling, crack filling, and minor pavement patching. This category will allow the County to utilize a portion of the bond proceeds to support activities that would otherwise have to be discontinued due to the withholding of the gas tax funds.
The Department has therefore developed a revised project list to defer some of the original projects in order to include some of the bond funds being allocated to pavement repairs. The projects removed from the list will be included on the list for the 2008-09 budget. It is anticipated that there will be funding for these projects at that time due to the allocation of Proposition 42 (sales tax on gasoline) funds, the repayment of the withheld gas tax funds, and potentially additional bond funds.
A resolution has been approved as to form by County Counsel.
FISCAL IMPACT:
The estimated cost of construction of the road projects recommended for funding is $7,200,000 and is proposed to be financed as follows:
	Proposition 1B Bond funds			$7,165,625.45
	Road Fund			$34,374.55
	Total Estimated Cost			$7,200,000.00
There is no impact to the General Fund.