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BACKGROUND
<br />A total of $19.925 billion in bonds were authorized by the voters. Of this $19.925 billion,
<br />$2 billion was allocated to cities and counties ($1 billion for cities and $1 billion for
<br />counties). At this point, only $1 billion of the $2 billion in bonds that were authorized
<br />have been sold, with the remainder to come in a second round of funding at a future
<br />date not yet certain. In this initial $1 billion, the 2007 Budget Act and Chapter 181,
<br />Statutes of 2007 (SB 88) appropriated $ 950 million of these Prop 1 B funds in 2007-08
<br />($550 million for cities and $400 million for counties). Each city has been allocated a
<br />certain amount of funding based on population, except that each city is to get a
<br />minimum of $400,000. The State Controller's Office has determined that the amount
<br />available to the City of Pleasanton for 2007-08 using this formula is $1,105,877.36. The
<br />City of Pleasanton will receive an additional allocation of $1,042,995 when the
<br />remainder of the $2 billion in bonds are sold by the State.
<br />In order to receive these funds, the City of Pleasanton is required to approve a plan that
<br />specifically identifies the use of Proposition 1 B funds. The bond language states that the
<br />proceeds can be used for "projects that will assist in reducing local traffic congestion and
<br />further deterioration, improving traffic flows, or increasing traffic safety that may include,
<br />but not be limited to, street and highway pavement maintenance, rehabilitation,
<br />installation, construction and reconstruction of necessary associated facilities such as
<br />drainage and traffic control devices, or the maintenance, rehabilitation, installation,
<br />construction and reconstruction of facilities that expand ridership on transit systems,
<br />safety projects to reduce fatalities, or as a local match to obtain state or federal
<br />transportation funds for similar purposes. "
<br />DISCUSSION
<br />Staff has prepared a plan for use of the Proposition 1 B funds, as follows:
<br />No Project Construction
<br />Date Current
<br />Budget Prop 1 B
<br />Funding Total
<br />Budget
<br />1 Foothill Road Widenin ,CIP 995018 8/1/2008 $283,000 $308,000 $591,000
<br />2 Annual Street Resurfacin ,CIP 095003 7/6/2009 $2,250,000 $400,000 $2,650,000
<br />3 Annual Street Resurfacin ,CIP 105003 7/7/2010 $2,250,000 $397,877 $2,647,877
<br />These three proposed projects were adopted by City Council on June 19, 2007, as part
<br />of the Capital Improvement Program Budget for FY 2007/2008 through 2010/2011. The
<br />identified projects would improve traffic flow, increase traffic safety, and prevent local
<br />pavement surface from deterioration. Pursuant to the bond requirements, funds need to
<br />be expended within three fiscal years after the fiscal year in which the controller makes
<br />the allocation. Proposition 1 B funds appropriated by the State in this fiscal year (2007-
<br />08) must be expended by June 30, 2011. It is anticipated that additional Proposition 1 B
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