HomeMy WebLinkAboutRes 2017-70 - Amnd FY 17-18 Capital Imprvmnt Budget_1 RESOLUTION NO. 2017-70
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. 2017- 70 AMENDING THE FISCAL
YEAR 2017-18 FIVE YEAR CAPITAL IMPROVEMENT BUDGET
TO INCORPORATE THE MONTEREY AVENUE REPAVING
PROJECT TO BE FUNDED BY SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT
SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works
DATE: September 28, 2017
CONTENTS: Resolution 2017- 70
Recommendation
1. Waive further reading and adopt Resolution No. 2017- 70 to
amend the Fiscal Year (FY) 2017-18 Five Year Capital Improvement
Program Budget to incorporate the Monterey Avenue Repaving —
Whitewater Channel to Hovley Lane West, Project No. 668-18, to be
funded by newly created Road Maintenance and Rehabilitation
Account.
2. By Minute Motion:
a. Appropriate $278,747 from Unobligated Gas Tax Fund to the
Road Maintenance and Rehabilitation Account to be
established by the Director of Finance.
b. Amend the FY 2017-18 Budget to reflect the estimated revenue
of $278,747 to the Road Maintenance and Rehabilitation
Account.
Strategic Plan Objective
The proposed action has no impact on the Strategic Plan.
Executive Summary
The recently approved Senate Bill 1, the Road Repair and Accountability Act of 2017
(SB 1), created the Road Maintenance and Rehabilitation Account (RMRA). This new
account will provide a significant new investment in California's transportation systems.
SB 1 provides funding to local governments once project lists and reports are filed with
Staff Report
Approve Resolution No. 2017- 70 Amending the Capital Improvement Budget Incorporating the
Monterey Avenue Repaving Project
Page 2 of 4
September 28, 2017
the State. For FY 2017-18, the City is expected to receive about $278,747, which was
not included in the recently approved budget. The City is required to submit a list to the
California Transportation Commission (CTC) of projects that these funds are intending
to be used for. Staff recommends adding a project to repave the northbound lanes
Monterey Avenue, from Whitewater Channel to Hovely Lane West, to the Five Year
Capital Improvement Budget to be submitted on the project list for FY 2017-18.
Background
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, increases
diesel fuel taxes and vehicle registration fees, and provides for inflationary adjustments
to the tax rates in future years.
The new funds will be distributed to cities and counties through a variety of programs.
The Local Streets and Roads Program will have the largest direct impact to the City.
Under this program, beginning November 1, 2017, the State Controller will deposit an
apportionment of this new funding into the newly created RMRA. This account will be
maintained separately from current gas tax funds, which are distributed through the
Highway Users Tax Account (HUTA). However, RMRA funds will be apportioned to
cities and counties in a similar manner (i.e., through a formula based on population and
the number of registered vehicles), with the first distribution expected to take place in
January 2018.
RMRA Local Streets and Roads Program allocations 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 cost-effective, 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
Staff Report
Approve Resolution No. 2017- 70Amending the Capital Improvement Budget Incorporating the
Monterey Avenue Repaving Project
Page 3 of 4
September 28, 2017
• 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 the RMRA funding, the statute requires the City to submit an annual list of
projects to the CTC by October 16, 2017, including descriptions, locations, timelines,
and estimated useful life of the projects. These projects must be included in the adopted
Citywide budget. The CTC will then submit a list of cities to the State Controller's office
for apportionment of RMRA funds.
Staff recommends using these funds for a new project to repave a section of Monterey
Avenue, from the Whitewater Storm Channel to Hovley Lane West. This project was not
included in the City's Five Year Capital Improvement Program because it has not
reached the end of it's original projected useful life. Due to unforeseen environment
factors, including regular exposure to landscape runnoff water, this road segment saw
more wear than originally estimated. This project was selected by staff because it is an
arterial road needing maintenance, and it is a project that would have not otherwise
been funded in the current FY, which meets the intended purpose of SB 1 funding.
The Monterey Avenue Repaving Project — Whitewater Channel to Hovley Lane West,
Project No. 668-18is required to be included in an approved budget and sent to the CTC
on a project list. It was not included in the City's Five Year Capital Improvement
Program, so it will need to be added to the FY 2017-18. The FY 2017-18 budget,
approved by the City Council on June 22, 2017, will also need to be amended to create
a new account for Road Maintenance and Rehabilitation of Local Streets and Roads.
The League of California Cities provided an estimate of the expected revenue for the
City of $278,747 in FY 2017-18, and $836,193 in FY 2018-19.
SB 1 contains a local agency Maintenance of Effort (MOE) requirement to ensure that
the new funds do not supplant General Fund spending on streets and roads. The MOE
for the receipt of RMRA funds is established by the State Controller. It is based on the
average spent from General Funds on streets and roads in FY 2009-10, FY 2010-11,
and FY 2011-12, as reported to the State Controller on the annual Streets and Roads
Report prepared by the City's Finance Department. Unfortunately, the City funded a
large portion of the street resurfacing projects out of the General Fund in those years,
so the estimated MOE is $4,867,358.
Staff is currently working with the State Controller to lower the MOE amount; however, it
is unlikely to change significantly. 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. Measure A funds are not eligible to count toward the
City's MOE, so for the last four years the City has spent on average, approximately $3.5
Staff Report
Approve Resolution No. 2017- 70 Amending the Capital Improvement Budget Incorporating the
Monterey Avenue Repaving Project
Page 4 of 4
September 28, 2017
million from the General Fund. This is approximately $1.3 million short of the current
estimated MOE required to receive RMRA funds.
The project list with an amended budget is required to be sent to the CTC by
October 16, 2017, in order to be eligible to receive RMRA funds. The State Controller
will not finalize the MOE before this deadline. Given the current set of circumstances,
staff is recommending to move forward with submitting the project list to the CTC at this
time, allowing the City to be deemed eligible to receive these funds. Once the MOE
amount is finalized, staff will review the options to either develop a plan to allocate the
additional funds needed to meet the MOE requirement, or choose not to utilize RMRA
funds. Staff will then bring a recommendation back to the City Council for approval.
Fiscal Analysis
There is a potential fiscal impact related to the General Fund spending on streets and
roads required to receive RMRA funding. The current estimated MOE is $4,867,358,
which is $1.3 million more than our current annual spending. Staff is working with the
State Controller to lower the MOE. Once a figure is finalized, staff will bring a report to
the City Council to determine an appropriate course of action.
Prepared by: Depa e ead:
Heather orning, Mark Gr e wood, P.E.
Sr. Management Analyst Director f ublic Works
2/6 '
an M. Moore, Director f Finance
Approval:
Lauri Aylaian, City Manager
HH/bl
RESOLUTION NO. 2017- 70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, AMENDING THE 2017-18
CAPITAL IMPROVEMENT BUDGET INCORPORATING
THE MONTEREY REPAVING PROJECT TO BE FUNDED
BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY
ACT.
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, in the City budget, 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 $278,747 in RMRA funding in
Fiscal Year 2017-18 from 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, restoring roads before they fail also reduces construction time,
which results in less air pollution from heavy equipment, and less water pollution from
site run-off.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by
the City Council of the City of Palm Desert, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The Director of Finance is authorized to create any necessary funds or accounts
for the Road Maintenance and Rehabilitation Account funds.
Resolution No. 2017- 70
3. The City of Palm Desert Five Year Capital Improvement Program Budget for
Fiscal Year 2017-18 is amended to incorporate Project No. 668-18, Monterey
Avenue Repaving — Whitewater Channel to Hovley Lane West, to be funded with
Road Maintenance and Rehabilitation Account revenues:
• Location: Northbound Monterey Avenue from Whitewater Storm Channel to
Hovley Lane West
• Description: Full depth reclamation street resurfacing
• Estimated useful life: 25 years
• Anticipated construction date: 2nd Quarter 2018
PASSED, APPROVED, AND ADOPTED on this 28th day of September, 2017 by
the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAN C. HARNIK, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA