CC 2021-04-27_11c Resolution Adopting Projects to be funded by SB 1
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, ASSISTANT CITY MANAGER/PUBLIC WORKS
DIRECTOR
NICOLE VALENTINE, ACCOUNTING MANAGER
BY: JILL MCPEEK, CAPITAL IMPROVEMENT PROJECT MANAGER
SUBJECT: CONSIDERATION OF A RESOLUTION TO ADOPT PROJECTS TO BE
FUNDED BY THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
(SB1) FUNDING FOR FISCAL YEAR 2021-22
DATE: APRIL 27, 2021
SUMMARY OF ACTION:
Adopting the Resolution enables the City to be eligible for Senate Bill 1 (SB1) funding for
road repair projects during Fiscal Year 2021-22.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City’s allocation of SB1 funding for FY 2021-22 is projected to be $349,381. This
additional funding will be utilized to maintain the City’s street system. With this allocation,
and the City’s Gas Tax funding of $472,157 the total funding available for street and road
maintenance is $821,538.
RECOMMENDATION:
It is recommended the City Council 1) Adopt a Resolution approving a list of projects to
be funded by SB1 in Fiscal Year 2021-22; and 2) Authorize the Acting Director of
Administrative Services to submit the list of projects to the California Transportation
Commission (CTC).
BACKGROUND:
On April 28, 2017, the Governor signed SB1, known as the Road Repair and
Accountability Act of 2017. SB1 increases gasoline and diesel taxes and vehicle
registration fees to address deferred maintenance on the state highway system and the
local street and road system. These additional taxes are deposited by the State Controller
into the Road Maintenance and Rehabilitation Account (RMRA). A portion of this funding
is apportioned by formula to eligible cities and counties, including Arroyo Grande,
pursuant to California Streets and Highways Code Section (SHC) 2032(h) and are to be
used for basic road maintenance, rehabilitation, and critical safety projects on the local
streets and roads system.
Item 11.c. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO ADOPT PROJECTS TO BE FUNDED BY
THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB1) FUNDING FOR
FISCAL YEAR 2021-22
APRIL 27, 2021
PAGE 2
Because SB1 emphasizes accountability and transparency in transportation funding,
programming and use of the new funds is contingent on recipient cities and counties
providing annual project reporting. Per SHC Section 2034(a)(1), prior to receiving any
RMRA funding, cities and counties must submit a list of projects, adopted by Resolution,
to be funded with the RMRA funds.
SHC Section 2030(b) provides a number of example projects and uses for RMRA funding
that include, but are not limited to, the following:
Road Maintenance and Rehabilitation
Safety Projects
Railroad Grade Separations
Complete Streets Components (including active transportation purposes, pedestrian
and bicycle safety projects, transit facilities, and drainage and storm water capture
projects in conjunction with any other allowable project)
Traffic Control Devices
Matching funds to state or federal funds for projects under this subdivision
Pursuant to SHC Section 2037, a city or county may spend its apportionment of RMRA
funds on transportation priorities other than those outlined in SHC Section 2030 if the
city’s or county’s average Pavement Condition Index (PCI) meets or exceeds 80. The City
of Arroyo Grande’s current PCI is estimated to be 61.
The City maintains its 66 miles of streets through two mechanisms: The City’s in-house
street crew that provides daily efforts to keep the condition of streets from declining, and
capital projects to provide long term maintenance. Based on the SHC, the City can use
its RMRA funds for either of these purposes. Historically, the City has utilized its RMRA
funds to augment the City’s pavement management program for upcoming roadway
rehabilitation projects as opposed to allocating the funds to the City’s in-house street
maintenance program. This has been staff’s recommendation to Council due to
uncertainties that would be created by a decline in RMRA revenues or a possible repeal
of SB1. In these events, it would be less impactful to cut a specific project or portion
thereof than to reduce the City’s in-house street maintenance program that addresses
constant, immediate short- and medium-term street safety issues (e.g., debris removal,
potholes, skin patching, re-striping, storm water and drainage repairs, etc.).
ANALYSIS OF ISSUES:
In accordance with Streets and Highway Code Section 2036, the City must maintain its
existing commitment of local funds for street purposes to remain eligible for allocations of
RMRA funds. This commitment is generally referred to as Maintenance of Effort (MOE).
In order to receive these RMRA funds, each year the City must expend from its General
Item 11.c. - Page 2
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO ADOPT PROJECTS TO BE FUNDED BY
THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB1) FUNDING FOR
FISCAL YEAR 2021-22
APRIL 27, 2021
PAGE 3
Fund for street purposes an amount not less than the annual average of General Fund
expenditures during fiscal years (FY) 2009-10, FY 2010-11 and FY2011-12, as reported
to the State Controller’s Office, pursuant to Streets and Highway Code Section 2151. For
the City of Arroyo Grande, the amount of annual expenditures that must be spent from
the General Fund for street purposes is $1,431,971.
Additionally, SHC Section 2034(a)(1) details the requirement that cities and counties must
comply with when submitting its list of proposed projects to the CTC to be funded with
RMRA funds each fiscal year. The requirements include:
1. The proposed projects must be adopted by Resolution by the City Council at a
regular public meeting
2. A description and the location of each proposed project
3. A proposed schedule for the project’s completion
4. The estimated useful life of the improvement
The State has provided an estimate for the amount of FY 2021-22 RMRA funding
available to the City of Arroyo Grande as $349,381. It is recommended these RMRA funds
be used to augment the City’s pavement management program in correcting base failures
(digouts) on certain streets. These streets include:
Street Segment From To
Valley Road Sunrise Terrace Los Berros Creek Bridge
Corbett Canyon Road Route 227 City Limits (n/o Gularte Rd)
Fair Oaks Avenue South Halcyon Road Fred Grieb Bridge
Wesley Street End of Street (n/o of Larchmont Dr) West Branch Street
Vernon Street End of Street (n/o of Larchmont Dr) West Branch Street
East Grand Avenue Halcyon Road El Camino Real
North Halcyon Road El Camino Real East Grand Avenue
South Elm Street Ash Street City Limits (s/o Paul Place)
Rancho Parkway James Way West Branch Street
This is consistent with staff’s recommendation in its April 27, 2021 staff report identifying
the streets to be included in the 2021 Street Repairs Project.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendations;
2. Do not approve staff’s recommendations and request further information;
3. Modify staff’s recommendation and approve; or
4. Provide direction to staff.
Item 11.c. - Page 3
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO ADOPT PROJECTS TO BE FUNDED BY
THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB1) FUNDING FOR
FISCAL YEAR 2021-22
APRIL 27, 2021
PAGE 4
ADVANTAGES:
Submitting a list of projects will allow the City to receive RMRA funds. The projects will
help to protect the City’s investment in its roadway system and maintain the roadways
before they deteriorate beyond routine maintenance.
DISADVANTAGES:
There will be traffic inconveniences to the traveling public during construction. Staff will
monitor the traffic control to conform to the requirements of the Municipal Uniform Traffic
Control Devices manual (MUTCD) to mitigate any negative effects. City inspectors will be
at the site during all phases of the operations to make adjustments for isolated instances
(driveway access, etc.).
ENVIRONMENTAL REVIEW:
The use of RMRA funds for correcting base failures (digouts) on City streets is
categorically exempt from the California Environmental Quality Act (CEQA) pursuant to
CEQA Guideline Section 15301(c) covering the repair and maintenance of existing
streets, sidewalks, gutters and similar facilities.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachment:
1. Proposed Resolution
Item 11.c. - Page 4
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING A LIST OF PROJECTS FOR
FISCAL YEAR 2021-22 FUNDED BY SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5,
Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April
2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the
residents of the City of Arroyo Grande (“City”) are aware of the projects proposed for funding in
the community and which projects have been completed with such funding each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year
funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1,
which must include a description and the location of each proposed project, a proposed
schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, it is anticipated that the City will receive an estimated $349,381 in RMRA funding in
Fiscal Year 2020-21 from SB1; and
WHEREAS, this is the fifth year in which the City is receiving SB 1 funding and will enable the
City to continue essential road maintenance and rehabilitation projects, safety improvements,
repairing and replacing aging bridges, and increasing access and mobility options for the
traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into the
community’s transportation priorities/the project list; and
WHEREAS, the City used its Pavement Management System and collaboration of the City’s
various Departments to develop the SB 1 project list to ensure revenues are being used on the
most high-priority and cost-effective projects that also meet the community’s priorities for
transportation investment; and
WHEREAS, the funding from SB1 will help the City maintain and rehabilitate its approximately
66 miles of streets/road throughout the City this year and numerous similar projects into the
future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found
that the City’s streets and roads are in an at-risk condition and this revenue will help the City to
maintain the overall quality and safety of its road system and will help to keep the City’s streets
and roads from falling into a poor condition; and
Attachment 1
Item 11.c. - Page 5
RESOLUTION NO.
PAGE 2
WHEREAS, the SB1 project list and overall investment in local streets and roads infrastructure
with a focus on basic maintenance and safety, investing in complete streets infrastructure, and
using cutting-edge technology, materials and practices, will have significant positive co-benefits
statewide.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande
hereby:
1. Finds that the foregoing recitals are true, correct and incorporated herein by this reference.
2. The following list of newly proposed projects will be funded in-part or solely with fiscal year
2021-22 Road Maintenance and Rehabilitation Account revenues:
FY 2021-22 List of Projects
Project Title: 2021 Street Repairs, PW 2021-01
Project Description: Structural repairs on various street sections on
Project Location: Valley Road, Corbett Canyon Road, Fair Oaks
Avenue, Wesley Street, Vernon Street, South
Elm Street, East Grand Avenue
Estimated Project Schedule: August 2021 - December 2021
Estimated Project Useful Life: 7 Years
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 27th day of April, 2021.
Item 11.c. - Page 6
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
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