Purpose:

To request City Council appropriation of AB 2928 Traffic Congestion Relief funds for the Vanowen Street Improvement Project.

Background:

Under Assembly Bill 2928, the State established a Traffic Congestion Relief Fund in the State Treasury to allocate street maintenance and reconstruction funds to cities and counties based on population.  The City of Burbank�s FY 2001-2002 AB 2928 allocation was $255,087.08.  The interest accrued to these funds to date totals $14,101.89.

On January 7, 2003, the City Council approved a resolution awarding a construction contract for the Vanowen Street Improvement Project to E.C. Construction Company of South El Monte, California.  This project was originally funded out of Public Work�s annual General Fund 370 appropriation for street, alley, and concrete improvements, and construction began on February 24, 2003.

Analysis:

The AB 2928 funds, including the accrued interest, must be expended by not later than June 30, 2003.  Any of these monies not expended by this deadline must be returned to the State Controller's Office for reallocation to other cities.

Public Works staff proposes to substitute the FY 2001-2002 AB 2928 allocation and the accrued interest to fund the Vanowen Street Improvement Project currently funded by General Fund 370.

Fiscal Impact:

The FY 2001-2002 AB 2928 allocation of $255,087.08 and the accrued interest income totaling $14,101.89 is in account no. 125-ND000-30004.  Appropriating these funds for the Vanowen Street Improvement Project would make Fund 370 monies available for the improvement of Kenneth Road between Olive Avenue and Amherst Drive, which had been deferred as part of the Public Works Department's 10% budget reduction.

Recommendation:

Staff recommends that the City Council adopt the attached resolution amending the FY 2002-2003 City Budget by appropriating $269,188.97 ($255,087.08 plus the accrued interest totaling $14,101.89) from account no. 125-ND000-30004 to account no. 125-PW21E-70002-0000-13724.

go to the top