HomeMy WebLinkAboutRes 2018-20 - SB1 - FY 18-19 Prjct List FundedMEETING DATE:
PREPARED BY:
REQUEST:
Recommendation
RESOLUTION NO. 2018-20
STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
April 26, 2018
Heather Homing, Senior Management Analysk
Adopt Resolution No. 2018- 20 approving the Fiscal Year 2018-
19 Project List to be funded by Senate Bill 1: The Road Repair and
Accountability Act.
1. Waive further reading and adopt Resolution No. 2018- 20 approving
the Fiscal Year (FY) 2018-19 Project List to be funded by Senate Bill
1: The Road Repair and Accountability Act.
2. By Minute Motion, authorize the Finance Department to return the
Road Maintenance and Rehabilitation Account Funds for FY
2017-18 to the State Controller if it is determined that the City is
unable to meet the Maintenance of Effort (MOE) requirement.
Strategic Plan
The proposed action has no impact on the Strategic Plan.
Executive Summary
Senate Bill 1, the Road Repair and Accountability Act of 2017 (SB 1), created the Road
Maintenance and Rehabilitation Account (RMRA), which provides funding to local
governments that submit a project list to the California Transportation Commission (CTC).
Staff recommends submitting a project to repave Cook Street, from Gerald Ford Drive to
Frank Sinatra Drive, for the FY 2018-19 project list. The City is eligible to receive an
estimated $842,591 in RMRA funding in FY 2018-19. In order to utilize these funds, the
City must meet the established Maintenance of Effort (MOE), which will require the City
to increase General Fund expenditures on streets and roads in FY 2018-19 by about
$350,000.
Background Analysis
On April 28, 2017, the Governor signed SB 1 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 increases per gallon fuel excise taxes, diesel fuel taxes and vehicle
April 26, 2018 - Staff Report
Adopt Resolution No. 2018- 20 Approving the Fiscal Year 2018-19 Project List to be
Funded by Senate Bill 1
Page 2 of 4
registration fees. The new funds are being distributed to cities and counties through a
variety of programs, including the Local Streets and Roads Program.
Under the Local Streets and Roads Program, the State Controller's Office (SCO) deposits
an apportionment of this new funding into the newly created RMRA. This account will be
apportioned to cities and counties through a formula based on population and the number
of registered vehicles. Beginning in February 2018, distributions are made to eligible
cities monthly. The City's apportionment of RMRA revenue is estimated to be $289,380
in FY 2017-18, and $842,591 in FY 2018-19.
RMRA funds are required to be used for projects that include, but are not limited to the
following:
• Road maintenance and rehabilitation
• Safety projects
• Railroad grade separations
• Traffic control devices
• 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
RMRA funds may also be used to satisfy a match requirement in order to obtain state or
federal funds for eligible projects. SB 1 also contains non -obligatory intent language
regarding the use of funds. To the extent possible, and as cost-effective as possible,
projects should incorporate the following elements:
• Technologies and materials that lower greenhouse gas emissions
• Transportation infrastructure that supports technology for transitional or fully
autonomous vehicles
• Project features that adapt transportation assets to withstand the negative effects
of climate change
• Complete Streets Elements
SB 1 emphasizes the importance of accountability and transparency in the delivery of
California's transportation programs and the use of these funds. Therefore, to be eligible
for RMRA funding, the statute requires the City to submit an annual list of planned RMRA
funded projects to the CTC including descriptions, locations, timelines, and estimated
useful life of the projects.
Staff is recommending using RMRA funds in FY 2018-19 for a project to repave a section
of Cook Street, from Frank Sinatra Drive to Gerald Ford Drive. This project was selected
by staff because it is an arterial road in need of maintenance that would not have
otherwise been funded in the current FY, which meets the intended purpose of SB 1
April 26, 2018 - Staff Report
Adopt Resolution No. 2018- 20 Approving the Fiscal Year 2018-19 Project List to be
Funded by Senate Bill 1
Page 3 of 4
funding. Each year, once the project lists are submitted and reviewed, the CTC sends a
list of eligible cities to the SCO for apportionment of RMRA funds.
In order to utilize RMRA funds, the City must meet the SB 1 MOE requirement established
to ensure that the new funds do not supplant General Fund spending on streets and
roads. The MOE 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 so the average was $4,867,357. 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 General Funds. However, because
they are not considered "discretionary funds" by the State, Measure A funds are not
eligible to count toward the 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 approximately $1.37 million short of the MOE required to utilize
RMRA funds.
Staff worked with the SCO to lower the MOE amount, by removing all one-time
expenditures, however, the amounts removed were relatively small and only amounted
in decrease of about $180,000. The City's final MOE is $4,689,696. Staff then reviewed
the expenditures included in the Annual Street Report to ensure all allowable General
Fund expenditures were being reported. Through follow up discussions with the SCO it
was recently determined that City could us a portion of median landscape expenditures
to meet its SB 1 MOE. If the City includes this expense on the report going forward, it will
add approximate $850,000 of General Fund expenditures to the discretionary
expenditures on the Annual Streets and Roads Report and result in an estimated total of
$4.35 million. This will leave the City about $350,000 short of meeting its MOE required
to utilize RMRA funds.
Staff recommends submitting a project list to the CTC to become eligible to receive the
estimated $842,591 in RMRA funds in FY 2018-19. This will require budgeting an
additional General Fund expenditure on streets and roads to meet the MOE. Staff plans
to propose this change as part of the FY 2018-19 Capital Improvement Budget.
With the current MOE, in FY 2017-18 the City would have to spend at least an additional
$350,000 in General Funds in order to utilize the estimated $289,380 in RMRA funds.
The League of Califomia Cities (League) recently contacted the City regarding the MOE.
They are working on proposing a change in the legislation that would lower the MOE for
the City and other agencies in a similar position. Staff recommends holding the RMRA
funds received in FY 2017-18, while the City works with the SCO and the League to
change the legislation and lower the MOE. The City had planned to use these funds to
rehabilitate a section of Monterey Avenue, from Hovley Lane West to the bridge at the
April 26, 2018 - Staff Report
Adopt Resolution No. 2018- 20 Approving the Fiscal Year 2018-19 Project List to be
Funded by Senate Bill 1
Page 4 of 4
Whitewater Channel. Since staff is recommending holding these funds until the MOE is
resolved the project will be budgeted to be completed in a future fiscal year.
Fiscal Analysis
The potential fiscal impact for FY 2017-18 is returning previously budgeted RMRA
revenue, estimated to be $289,380, to the SCO. The fiscal impact for FY 2018-19 will be
an additional $350,000 of General Funds to be spent on streets and roads in order to
meet the SB 1 MOE and utilize the estimated $842,591 in RMRA funds. The following
estimates have been provided by the League for the City's apportionment of RMRA
revenue for the next five years.
Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23
Projected $842,591 $1,217,562 $1,442,773 $1,528.353 $1,597,195
Funding
Each year the City will have the option to continue to spend the additional General Funds
required to meet the MOE and receive RMRA funds, or to forego the receipt of RMRA
funds.
LEGAL REVIEW DEPT. REVIEW
FINANCIAL CITY MANAGER
REVIEW
N/A tic�� �' ��`"
T mothy R. J n s n, P.E.
Robert W. Hargreaves independgn Int ,Tanet Moore
City Attorney Director of Public Works Director of Finance
ATTACHMENTS: Resolution No. 2018-
Lauri Aylaian
City Manager
RESOLUTION NO. 2018- 20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, ADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2018-19 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 include a list of all projects proposed to receive funding
from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, 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 $842,591, in RMRA funding in
Fiscal Year 2018-19 from SB 1; and
WHEREAS, this is the second 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 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 funding from SB 1 will help the City maintain and rehabilitate
streets, roads, bridges, and add active transportation infrastructure throughout the City;
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:
Resolution No. 2018- 20
1. 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 includes:
• Location: Cook Street from Gerald Ford Drive to Frank Sinatra Drive
• Description: Cold -in -place recycling with a warm mix cap
• Estimated useful life: 25 years
• Anticipated construction date: 2nd Quarter 2019
PASSED, APPROVED, AND ADOPTED on this 26th day of April, 2018 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
SABBY JONATHAN, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA