REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 40 in the amount of $108,329 to Appropriate Funding from Fund 285 (Transportation Development Act) to Fund 385 (Capital Projects)
Report
BACKGROUND
On March 28, 2017, Council awarded a contract for the construction of Green Pavement Markings and Rectangular Rapid Flashing Beacons (RRFB) System Installation (RTC No. 17-0142). These two projects are funded primarily through the Transportation Development Act (TDA) Article 3, a source of funding created by State legislation and processed through the Santa Clara Valley Transportation Authority (VTA) and Metropolitan Transportation Commission (MTC).
In FY 2015/16, the City received the above referenced funding, two grant allocations totaling $108,329, from MTC for the two projects and the funds were recognized in the Transportation Development Act (TDA) Fund (Fund 285) during the FY 2016/17 budget process. The appropriation of the funding from the Capital Project Fund (Fund 385) to Projects 832170 and 832180 for Green Pavement Marking and Rectangular Rapid Flashing Beacons (RRFB) System Installation was reflected in the FY 2016/17 Budget presented to Council. Inadvertently, staff did not include the transfer of the funds from the TDA Fund (Fund 285) to the Capital Project Fund (Fund 385) in the FY 2016/17 Budget.
To correct this oversight, it is necessary for Council to now authorize a transfer appropriation of $108,329 from the TDA Fund (Fund 285) to the Capital Project Fund (Fund 385).
EXISTING POLICY
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
When the Project was approved on March 28, 2017, it was found to be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (minor alteration of existing facilities involving negligible or no expansion of existing use). The transfer of funds for the Project is a fiscal activity that does not require further environmental review pursuant to CEQA Guidelines Section 15378(b)(4).
DISCUSSION
Transfer of funds from one City fund to another must be approved by Council. Generally, this process is done through adoption of the Budget and the accompanying resolution. Three actions were necessary to complete the appropriation of the grant funding. Funds received from VTA for pedestrian safety projects to the project needed to be accepted and recognized in the TDA Fund, appropriated from the TDA Fund to the Capital Project Fund and finally appropriation of the funding from the Capital Project Fund to the projects themselves. All of the required appropriations, except one, were approved by Council previously. As the fund transfer from TDA to the Capital Project Fund was overlooked, a corrective action is required.
FISCAL IMPACT
This action has not fiscal impact as the funding has been received and recognized in the City’s budget. The budget modification is necessary to complete the budget appropriation necessary to allow the project funding to be expended on the planned project.
Budget Modification No. 40 has been prepared to appropriate TDA funds in the amount of $108,329 for pedestrian safety projects to the Capital Project Fund (Fund 385).
Budget Modification No. 40
FY 2016/17
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Transportation Development Act Fund |
|
|
|
|
Revenues |
|
|
|
|
TDA Article 3.0 |
$625,505 |
$108,329 |
$733,834 |
|
|
|
|
|
|
Transfers |
|
|
|
|
Transfer to the Capital Projects Fund/Sub-Fund 100 General Assets |
$622,168 |
$108,329 |
$730,497 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
STAFF RECOMMENDATION
Recommendation
Approve Budget Modification No. 40 in the amount of $108,329 to appropriate funding from the Transportation Development Act Fund to the Capital Project Fund.
Staff
Prepared by: Karen Miller, Finance Manger
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager