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Home My WebLink AboutCOM 0595.000 1996-1998 ~ MtY OF NI °°•J jy'•? Donna Fay K. Kiyosaki k Stephen K Yamaehiro Chief Engineer Mayor Jiro A. Sumada •~r ~ Deputy Chief Engineer ~>E of x~'M ~OIITCt~7 111 ~tT~kl?Itt DEPARTMENT OF PUBLIC WORKS 25 Aupuni Street, Room 202 • Hilo, Hawaii 96720-4252 (808)961-8321 • Fax (808) 961-8630 November 20, 1997 ~ ~ ~ County Council HONORABLE CHAIRMAN AND MEMBERS HAWAII COUNTY COUNCIL HAWAII COUNTY BUILDING HILO HI 96720 SUBJECT: Extension of County Fuel Tax Program In considering [he various and numerous highway needs and improvements to be made within the County, we recommend that the County fuel tax program, created by Resolution 397-88, be extended until June 30, 2001. Prepared and enclosed for your information is a proposal outlining a plan to utilize the fuel tax revenues. We ask that you review, consider, and adopt the attached resolution to extend the County fuel tax program. DONNA FAY K. KIYOSAKI, P.E. Chief Engineer Enclosures cc: Finance Director ' PR~ED: STEPHEN K. YAMASHIRO Mayor >~tl. ir.. Iter. x~:. Gr mot. NOV z ~ iss~ Donna Fay K. Kiyosaki Chie(Engineer Stephen K. Yamashim Mom ~ ~y J;ro A. Sumada Deputy Chief E~ineer ~Mi2Ct~1 Df ~tXttttTtt DEPARTMENT OF PUBLIC WORKS 25 Aupuni Street Room 202 ~ HBo~ Hawaii 967 2 08 2 5 2 (808) 961-8321 ~ Fax (806) 961.8630 PROPOSED SPECIAL FUEL TAX PROGRAM INTRODUCTION The proposed Special Fuel Tax Program seeks to extend the existing fuel tax rate (8.8 cents per gallon for diesel on-highway and gasoline and 6.8 cents per gallon for LPG on-highway) established by Resolution 397-88 until June 30, 2001. The projected annual revenue generated by this fuel tax proposal is $2.5 million. PURPOSE The original program created by Resolution 397-88 intended to improve our highway resurfacing program. However, other types of work such as drainage improvements, signal system installation, bridge work, safety improvements and land acquisition were also included or later added to the program. This new proposal builds on this by recognizing that there are other categories of work besides simple resurfacing that needs to be addressed. These other categories of work include: • Bridge Inspection, Repair and Replacement • FHWA Street Resurfacing, Repair, Improvement • Local Street Resurfacing, Repair, Improvement • Highway Safety Improvements • New Construction Except for projects in the Locad Street Resurfacing, Repair, Improvement category, funds may be used as our local source of funds for projects included in the Statewide Transportation Improvement Program (STIP). The STIP is a Federal Highway Administration (FHWA) mandated expenditure plan that is based on the State's long range transportation plan. By being an active participant in the STIP, the County has an opportunity to receive a portion ofthe State Department ofTransportation's annual $120 million allocation of highway federal aid. Qualifying county bridge and highway projects E:\WP Files\Fue] Taz\New Ftx2.wpd Page 1 of 5 can receive federal aid at a one (county) to four (federal) ratio and certain safety improvements may not require any County funds for construction. Because the STIP allows us to leverage our funds, we intend to pursue qualifying projects whenever possible. If we could leverage fuel taxes to its maximum, it can finance more than $8 million in construction projects and services annually. Further, because fuel taxes are a reliable, regulaz source of annual funding, we could program multimillion dollaz projects into the STIP by simply phasing construction work. Without federal aid, fuel taxes will not be able to support our highway maintenance and improvement program. DESCRIPTION Although this program does not alter the tax rates or its duration, it does establish a new revenue distribution system that corresponds with identified categories of work. The previous program distributed funds to each tax map district based on a percentage derived by the following formula: [(District's % of revenues collected) + (District's % of Road Miles)1 2 This simple formula assumed that each district had similaz types ofroads and facilities. Unfortunately, as the program developed the inequities of this assumption became apparent. Two of the most notable inequities were the numbers of bridges in each district and fact that certain roads, commonly called the Circle Island Road, are more heavily used by the public. The old program addressed these two issues by creating a "Circle Island" category under Resolution 351-91. This category was funded whenever the actual revenues collected exceeded the anticipated revenues for the districts. To better account for these inequities and allow for new considerations such as the STIP, the department is proposing the following procedures to establish a work based distribution plan. 1. Identify major categories ofwork that the fuel program needs to address. Each category ofwork is then allotted a percentage of revenues. Based on past experiences, the Department is recommending the following: o Bridge Inspection, Repair and Replacement -15% $ 375,000/yr o Resurfacing, Repair and Improvement ofFHWA Streets -20% 500,000/yr o Resurfacing, Repair and Improvement of Local Streets -35% 875,000/yr o Highway Safety Improvements -15% 375,000/yr o New Construction -15% 375,000lvr 100% ~,SOQ000/yr Although consultant services, project advertising and staff per diem while in Kona have been recognized as valid fuel tax expenditures, it is not being identified as a specific work category and will not receive a specific allotment. This type of work is viewed as a project cost and must E:\WP Filea\Fuel TaxINew Fta2.wpd PagE 2 Of 5 therefore be funded by the project's associated work category. 2. Funds allotted to each category of work shall then be distributed to projects and/or districts according to the following: o Bridge Inspection, Repair and Replacement -Allocate to bridges according to sufficiency ratings established by the State bridge inspection program and as approved by the STIP. o Resurfacing, Repair and Improvement of FHWA Streets - Allocate to projects selected by Highway Maintenance Division's pavement management program and approved by the STIP. o Resurfacing, Repair and Improvement of Loca/ Streets -Allocate to districts based upon an average percentage of each District's percent of miles of local streets and percent of vehicle weight tax collected. District projects to be determined by Highway Maintenance Division's pavement management program. o Highway Safety Improvements - Allocate to districts based upon an average percentage of each District's percent of miles of local streets and percent of vehicle weight tax collected. Projects to be determined by the Highway Maintenance and Traffic Divisions and/or approved by the STIP. o New Construction -Allocate to projects approved by the STIP. 3. Revenues shall be expended according to an appropriation ordinance. The ordinance shall include the distribution plan. The appropriation ordinance shall be submitted to the Hawaii County Council biennially. 4. Should actual revenues exceed budget amounts, the excess amount shall be allotted according to the distribution plan found in the originating appropriation ordinance. Ifdeemed necessary, a new appropriation ordinance designating new projects shall be submitted to the Hawaii County Council. 5. Should actual revenues be less than budget appropriations, the shortage amount shall be allotted according to the distribution plan found in the originating appropriation ordinance. SAMPLE APPROPRIATION: SEE EXHIBIT "A" E:\WP Files\Fuel "lax\Naw Ftx.wpd Page 3 of 5 EXHIBIT A FUEL TAX PROGRAM INCREMENT 1 1998-2000 Bridge Inspection. Repair and Replacement (15°k) $750.000 • Bridge Inspection and Appraisal (Federal Aid) • Honomu/Mamalahoa Bridge Replacement (Federal Aid) • Lauhala Bridge Replacement (Federal Aid) • Kawainue Bridge Replacement (Federal Aid) • Komohana Street Culvert Replacement (Federal Aid) • Alii Drive Culvert Replacement (Federal Aid) • Bridge Maintenance and Repair FHWA Street Resurfacing. Repair and Improve,}t $1.000.000 • Kona Road Improvements Phase III (Federal A~c~} • Mohouli Street Improvements (Federal d~ , • Waikoloa Road Improvements (Fedel'eI Aat€) Local Street Resurfacing Re~palr~~mvement (35°kl $1 750 000 • Puna Roads (1B.~ 295,400 • South Hilo E~~8 (x.57%} 622,475 • North H~lctffoads (L.23%} 39,025 • Hamaku~ Ids .,(05;98°~) 102,900 • North Koktala;~ta~ds '.;(02.95%) 51,625 • South Kohafa'`F2oadS `(08.51%) 148,925 . • North Kona E~p~ds (17.28°~) 302,400 • South Kona Roads (05.54%) 96,950 • Kau Roads (05.16%) 90,300 Hiahwav Safetv Improvements (15%) $750.000 • Puna Roads (16.88%) 126,600 • South Hilo Roads (35.57%) 266,775 E:\WP Files\Fuel Taz\New Fta'l.wpd Page 4 of 5 • North Hilo Roads (02.23%) 16,725 • Hamakua Roads (05.88%) 44,100 • North Kohala Roads (02.95%) 22,125 • South Kohala Roads (08.51%) 63,825 • North Kona Roads (17.28%) 129,600 • South Kona Roads (05.54%) 41,550 • Kau Roads (05.16°k) 38,700 New Construction 115°kl 5750.000 • Mohouli Street Extension (Federal Aid) • Kuakini Highway Improvements (Palani to Hualalai) (Federal Aid) • Komohana Street Widening & Extension (Federal Aid) E'\WP Files\Fuel TaxINew Fta2.wpd Page 5 of 5