HomeMy WebLinkAboutRes 2019-19 - Prjcts for FY19-20 Funded by SB1STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: April 25, 2019
PREPARED BY: Heather Horning, Senior Management Analyst
REQUEST: Adopt Resolution No. 2019- 19 approving the Fiscal Year 2019-
2E Project List to be funded by Senate Bill 1: The Road Repair and
Accountability Act.
Recommendation
Waive further reading and adopt Resolution No. 2019- 19 approving the
Fiscal Year (FY) 2019-20 Project List to be funded by Senate Bill 1 (SB 1):
The Road Repair and Accountability Act.
Strateqic Plan
The proposed action has no impact on the Strategic Plan.
Background Analvsis
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, in order to
address basic road maintenance, rehabilitation, and critical safety needs on both the state
highway and local street and road system. SB 1 increased per gallon fuel excise taxes,
diesel fuel taxes and vehicle registration fees. These funds are distributed to cities and
counties through a variety of programs, including the Local Streets and Roads Program.
Under this program, the State Controller's Office deposits funding into the Road
Maintenance and Rehabilitation Account (RMRA), which apportions funds to cities and
counties through a formula based on population and the number of registered vehicles.
The City's apportionment of RMRA revenue is estimated to be $873,413 for FY 2019-20.
RMRA funding has a Maintenance of Effort (MOE) requirement to ensure that the new
funds do not supplant General Fund spending on streets and roads. The City's MOE is
$4,689,696, which is based on the City's average General Fund expenditure on streets
and roads as reported on the Annual Street Report in FY 2009-10, FY 2010-11, and FY
2011-12. Unfortunately, the City funded a large portion of the annual street resurfacing
projects out of the General Fund in those years resulting in larger than normal general
fund spending on streets and roads. Beginning in 2013 and continuing to the present, the
City has relied on Measure A to fund the annual street resurfacing projects, reducing the
amount spent from the General Fund. However, because they are not considered
"discretionary funds" by the State, Measure A funds are not eligible to count toward the
April 25, 2019 - Staff Report
Adopt Resolution No. 2019- 19 Approving the Fiscal Year 2019-20 Project List to be
Funded by Senate Bill 1
Page 2 of 2
City's MOE. Over the last four years the City has reported an average of approximately
$3.5 million of General Fund expenditures on streets and roads, resulting in the City falling
over $1 million short of the MOE.
Staff is working with the League of California Cities and the City's lobbyist to propose an
amendment to the legislation that would add some flexibility in the MOE requirement for
the City and other agencies in a similar position. However, if this effort is unsuccessful
and it is ultimately determined that the City is unable to meet the MOE in any FY, the City
may be required to return the funds received in that FY.
In order to become eligible to receive RMRA funding, the City is required to submit a
resolution annually containing a list of proposed RMRA funded projects to the California
Transportation Commission. Allowable projects types include road maintenance and
rehabilitation, safety projects, traffic control devices, and complete streets components.
Staff recommends submitting a project list for FY 2019-20, allowing the City to become
eligible for RMRA funding, while staff continues to work on resolving the City's MOE issue.
The proposed project includes repaving a segment of Portola Avenue, between Fred
Waring Drive and Highway 111. This project been selected by staff because it is an
arterial road in need of maintenance that would not have otherwise been funded next FY,
and therefore meeting the intended purpose of SB 1 funding. The City will not expend
SB-1 funding on this project until the MOE issue is resolved. Therefore, this project does
not appear on the City's CIP for FY 2019-20 or FY 2020-21. The City also received RMRA
funding for FY 2017-18 and 2018-19, and proposed to use these funds on two other road
rehabilitation projects. Staff recommends scheduling these projects to be completed in a
future FY and holding these RMRA funds until the MOE issue is resolved.
Fiscal Analvsis
The fiscal impact for FY 2019-20 will be receiving the estimated RMRA funding of
$873,413. These funds, in addition to the RMRA funds from FY 2017-18 and FY 2018-
19, may need to be fully or partially returned if it is determined that the City is unable to
fulfill the MOE requirement. The City received $297,313 in FY 2017-18, and will receive
approximately $836,759 in FY 2018-19. Each year the City will have the option to decide
if it will be able to meet the MOE and would like to receive RMRA funds, or to forego the
receipt of RMRA funds altogether.
LEGAL REVIEW
WA
Robert W. Hargreaves
City Attorney
DEPT. REVIEW
Tom Garcia, P.E.
Director of Public Works
ATTACHMENTS: Resolution No. 2019- 19
FINANCIAL REVIEW CITY MANAGER
et Moore Lauri Aylaian
Director of Finance City Manager
RESOLUTION NO. 2019- 19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, ADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2019-20 FUNDED BY SB 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, in order to address the significant multi -modal transportation
funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will
ensure that the residents of our City are aware of the projects proposed for funding in our
community, and which projects have been completed 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, the City, will receive an estimated $873,413, in RMRA funding in
Fiscal Year 2019-20 from SB 1; and
WHEREAS, this is the third year in which the City is receiving SB 1 funding which
may 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 chose a project on an arterial road to submit on the SB 1
project list to ensure that revenues are being used on a high -priority project; and
WHEREAS, the SB 1 project list and overall investment in our 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 IT IS HEREBY RESOLVED, ORDERED AND FOUND by
the City Council of the City of Palm Desert, State of California, as follows:
The foregoing recitals are true and correct.
Resolution No. 2019- 19
2. The fiscal year 2019-20 list of projects planned to be funded with Road
Maintenance and Rehabilitation ,Account revenues includes:
• Location: Portola Avenue from Fred Waring Drive to Highway 111
• Description: Regrade street to reduce crossfall. A survey will be conducted
to establish the limits of repair. The asphalt will milled down and cross gutters
will be removed and replaced at the correct grade. The street will be capped
with warm mix asphalt.
• Estimated useful life: 25 years
• Anticipated construction date: 2nd Quarter 2020
PASSED, APPROVED, AND ADOPTED on this 25th day of April, 2019 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
SUSAN MARIE WEBER, MAYOR,
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA