CC 2018-04-24_09f Resolution Adopting Projects Funded by SB 1
MEMORANDUM
TO: CITY COUNCIL
FROM: BILL ROBESON, PUBLIC WORKS DIRECTOR
DEBBIE MALICOAT, ADMINISTRATIVE SERVICES DIRECTOR
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
DATE: APRIL 24, 2018
SUMMARY OF ACTION:
Adopting the Resolution enables the City to be eligible for Senate Bill 1 (SB1) funding.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City’s allocation of SB1 funding for FY 2018-19 is estimated to be $294,500. This
additional Gas Tax funding will be utilized to maintain the City’s street system.
RECOMMENDATION:
It is recommended the City Council:
1. Adopt a Resolution adopting a list of projects to be funded by SB1 in Fiscal Year
2018/19; and
2. Authorize the Director of Administrative Services to submit the list of projects to
the California Transportation Commission (CTC).
BACKGROUND:
The City maintains 67 miles of streets through two components: the in-house street
crew that provide daily efforts to keep streets from declining and capital projects to
provide long term maintenance. The street maintenance program is funded by Gas
Taxes, Transportation funding, Local Sales Tax and grant funding (as available). At one
time, gas tax revenues were sufficient to cover nearly all the costs of the day to day
maintenance efforts; however, as shown in the following table, these revenues have
been declining for several years and more Local Sales Tax funds have been required in
order to provide for the City’s street maintenance crew.
Item 9.f. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION TO ADOPT PROJECTS TO BE FUNDED BY
THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB1) FUNDING
APRIL 24, 2018
PAGE 2
Sources 2013‐14 2014‐15* 2015‐16 2016‐17
2017‐18
(est)
2018‐19
(est)
Gas Tax 562,452$ 462,429 398,042 355,841 378,200 444,400
SB 1 101,800 294,500
Total 562,452$ 462,429 398,042 355,841 480,000 738,900
Uses
City staff 650,957$ 805,155 779,003 865,215 857,800 840,600
% of Funding from Gas Tax 86% 57% 51% 41% 56% 88%
*Excludes new vehicles and debt financing of $195,834
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 basic road maintenance and rehabilitation needs on both
state highways and local streets and roads.
These additional taxes will be deposited by the State Controller into a newly created
Road Maintenance and Rehabilitation Account (RMRA). A portion of this funding will be
apportioned by formula to eligible cities and counties, including Arroyo Grande,
pursuant to California Streets and Highways Code (SHC) Section 2032(h).
Since 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. The State has provided estimates for the amount of
FY 2018/19 RMRA funding available to the City of Arroyo Grande as $294,500.
ANALYSIS OF ISSUES:
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 stormwater capture
projects in conjunction with any other allowable project)
Traffic Control Devices
Matching funds to state or federal funds for projects under this subdivision
Item 9.f. - 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
APRIL 24, 2018
PAGE 3
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 67.
Based on the above uses, SB1 funds can be used for general street maintenance or for
specific projects. In the current fiscal year, the SB1 funding is being utilized to augment
Gas Tax funding in order to provide for the City’s in-house street maintenance program.
However, there have been efforts to repeal the gas tax increase and it is likely that
some sort of initiative will be on the ballot in November 2018.
Due to the possible repeal of SB1, staff is recommending that SB1 funds be used for
specific projects as opposed to subsidizing the City’s street maintenance program. If the
repeal is successful, it would be less impactful to cut a specific future project than to
reduce the City’s street maintenance program mid-year. This will result in the use of
additional contributions from the City’s Local Sales Tax Fund (Measure O-06) to provide
for the street program; however, staff is recommending that the FY 2018/19 pavement
management program budget be augmented with the FY 2018/19 RMRA funds.
SHC 2034(a)(1) details the requirements 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 the work
3. A proposed schedule for completion
4. The estimated useful life of the improvement
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.
ADVANTAGES:
Submitting a list of projects will allow the City to receive RMRA funds. The street repairs
will provide a stable surface to facilitate the application of an overlay in the future fiscal
years on James Way, a major collector street which has been identified as one of the
worst streets in the City.
Item 9.f. - 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
APRIL 24, 2018
PAGE 4
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 filing of the project list for the RMRA funds is not a project under the California
Environmental Quality Act (CEQA) as it causes no change to the environment. The
pavement rehabilitation projects that use the RMRA funds will undergo environmental
review for conformance to CEQA as part of its project development.
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.
Item 9.f. - Page 4
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING A LIST OF PROJECTS
FOR FISCAL YEAR 2018-19 FUNDED BY SENATE BILL
1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF
2017
WHEREAS, Senate Bill 1 (SB1), 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 in order to address the significant multi-modal transportation
funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure
the residents of the City are aware of the projects proposed for funding in the
community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt a list of all projects proposed to receive funding from
the Road Maintenance and Rehabilitation Account (RMRA), created by SB1 by
Resolution, 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, the City will receive an estimated $294,500 in RMRA funding in Fiscal Year
2018-19 from SB1; and
WHEREAS, this is the second year in which the City is receiving SB1 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 SB1; and
WHEREAS, the City has undergone a public process to ensure public input into the
City’s project list; and
WHEREAS, the City used its Pavement Management System’s Critical Point
Management methodology to develop the SB1 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
approximately two miles of roadway within the City this year and similar projects into the
future; and
WHEREAS, the City’s 2016 Pavement Management Plan Update found that the City’s
streets and roads are overall in an at risk condition and this revenue will help maintain
the overall quality of the road system and over the next decade will keep streets and
roads from falling into a poor condition; and
Item 9.f. - 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 and correct.
2. The fiscal year 2018-19 list of projects planned to be funded with Road Maintenance
and Rehabilitation Account revenues include:
FY 2018-19 List of Projects
Project Title: James Way Repairs
Project Location: James Way from Oak Park Boulevard to
Tally Ho Road
Estimated Useful Project Life: 10 Years
Proposed Schedule for Completion: FY 2018-19
Project Description: Pavement repairs consisting of
digouts on James Way prior to overlay
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 24th day of April, 2018.
Item 9.f. - Page 6
RESOLUTION NO.
PAGE 3
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
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