HomeMy WebLinkAboutItem 5d. 2022-2023 Road Maintenance Recovery Act (SB1) Funding and Projects Item 5d
Department: Public Works
Cost Center: 5001
For Agenda of: 4/19/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Brian Nelson, Deputy Public Works Director and City Engineer
SUBJECT: 2022-2023 ROAD MAINTENANCE RECOVERY ACT (SB1) FUNDING
AND PROJECTS
RECOMMENDATION
1. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, to define a list of projects funded by the Road Repair and
Accountability Act of 2017, Senate Bill 1, for Fiscal Year 2022-23 and allocate
$440,582 of SB 1 Unassigned Fund Balance into the 2022-23 Capital Improvement
Plan Budget”; defining a list of projects funded by the Road Repair and Accountability
Act of 2017, Senate Bill 1, for Fiscal Year 2022-23; and
2. Approve the allocation of $440,582 of SB1 Fund Balance to the Streets
Reconstruction and Resurfacing project budget for FY 2022-23.
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1) (Beall, Chapter 5, Statutes of
2017), which is known as the Road Maintenance and Rehabilitation Act of 2017 (RMRA).
RMRA/SB1 addresses basic road maintenance, rehabilitation, and critical safety needs
on both the state highway and local roadway systems. RMRA provides funding by
charging:
1. An additional 12 cents per gallon on the gasoline excise tax effective November
1, 2017.
2. An additional 20 cents per gallon ion the diesel fuel excise tax effective November
2, 2017.
3. An additional vehicle registration tax called the “Transportation Improvement Fee”
with rates based on the value of the motor vehicle effective January 1, 2018.
4. An additional $100 vehicle registration tax on zero emissions vehicles model year
2020 or later effective July 1, 2020.
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Item 5d
Based on the latest forecasts, the City is estimated to receive approximately $1,049,877
of RMRA funding in FY 2022-231. RMRA funds are programmed into the financial plan to
help fund eligible Capital Improvement Plan (CIP) projects. The California Transportation
Commission (CTC) has published guidelines for programming and reporting on the use
of RMRA funds. Annually on May 1st, the City must submit a project list to the CTC for
the coming year and each October 1st, the City must submit a project expenditure report.
This report and City Council Resolution completes the City’s obligation for RMRA fund
programming for Fiscal Year 2022-23.
Recommended Use of 2022-23 RMRA/SB1 Funding
Roadway Sealing 2022
The Roadway Sealing Project, planned for Summer 2022, is part of the City’s ongoing
pavement management plan, which alternates between maintenance of neighborhood
streets in even years, and maintenance and repair of arterial streets in odd years. This
approach is intended to promote equity between residential and commercial areas and
spread the benefits to the entire community.
The Roadway Sealing 2022 project will slurry seal neighborhood streets within Area 6
and 7. Also included with the Project are portions of Area 9 (Downtown Core) that were
deferred from the 2021 Street Maintenance Project in order to not magnify the disruption
and inconvenience that typically create impacts on downtown businesses. In addition to
roadway maintenance, striping improvements and curb ramps will be constructed to meet
current ADA and City standards. Furthermore, staff identified cost benefits to
incorporating parking lot maintenance and bicycle pathway maintenance projects
identified within the 2021-23 Financial Plan, including maintenance of the Islay Park
parking lot and the Madonna Inn Pathway.
Recommended Use of Available RMRA/SB1 Fund Balance
Based on the City’s 2020-21 audited financials2, there is an undesignated SB1 fund
balance of $440,582 due to several years of State SB1 revenues exceeding the City’s
expenditures. Staff recommend using this funding to augment the 2022 Roadway
Sealing Project.
1 “Local Streets and Roads - Projected Revenues.” California City Finance,
http://californiacityfinance.com/LSRcicoSummaryFy22Fy23.pdf
2 “City of San Luis Obispo Annual Comprehensive Financial Report, FY 2020-21.” City of San Luis
Obispo, https://www.slocity.org/home/showpublisheddocument/31535/637787056358070000
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Item 5d
Previous Council or Advisory Body Action
At the March 15, 2022 City Council meeting, staff received Council authorization to
advertise the Roadway Sealing 2022 project.
Policy Context
This action and the associated resolution are required by the CTC for the use of RMRA
funds. The proposed projects are consistent with the Council’s adopted 2021-23 Financial
Plan and Major City Goals.
Public Engagement
Public engagement is ongoing for the summer paving project proposed to be funded by
SB1 funds. In additional, the public has an opportunity t o comment on this item at or
before the Council meeting.
CONCURRENCE
There is concurrence from the Finance Department through its review and approval of
this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Section 15378. There are no environmental impact resulting from approval of
this item. Individual projects funded under this revenue source will be required to satisfy
environmental review, if required, as part of project development and approval process.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Other: RMRA/SB1 $1,049,877 $1,049,877 $0
RMRA/SB1 Fund Balance $440,582 $440,582
Total $1,490,459 $1,490,459 $0 $
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Item 5d
The recommendations in this report do two things:
1. Establishes a project list for the FY 2022-23. The establishment of this project list
does not commit these RMRA funds. Council could, at any point prior to
expenditure, change funding priorities or project allocations based upon changes
in economic conditions that could impact SB1 revenue. Any project list changes
would be communicated to the CTC via the annual expenditure report in October
each year. The below table indicates the total SB1 funding contribution to be used
for the 2022 Roadway Sealing Project. Council received a separate staff report at
the March 15, 2022 meeting requesting authorization to advertise the project,
which included total costs and general fund contributions to the work.
RMRA SB 1 Project List for FY 2022-23
Project 2022-23 Funding
2022 Roadway Sealing $1,049,877
Total $1,049,877
Estimated SB 1 2022-23
Revenue
$1,049,877
2. Approve the allocation of SB1 unassigned Fund Balance to the Streets
Reconstruction and Resurfacing project to support upcoming pavement
management including the 2022 Roadway Sealing project. If approved, this
funding will be formally appropriated with the adoption of the FY 2022-23 CIP
budget on June 7, 2022. Unused project budget would be carried over to the
following fiscal year.
ALTERNATIVES
The City Council could deny adoption of the resolution to fund these Capital
Improvement Plan projects using RMRA funds. This is not recommended as the
projects are eligible for RMRA funding. These projects improve critical safety needs,
maintain existing infrastructure, and further the City’s transportation multi -modal and
climate action goals.
ATTACHMENTS
A - Draft Resolution adopting the list of projects to receive 2022-23 RMRA Funding and
allocating $440,582 of unassigned SB1 fund balance into the 2022-23 CIP budget.
B - 2022 Area Sealing Map
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R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO DEFINE A LIST OF PROJECTS FUNDED BY
THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, SENATE
BILL 1, FOR FISCAL YEAR 2022-23 AND ALLOCATE $440,582 OF SB
1 UNASSIGNED FUND BALANCE INTO THE 2022-23 CAPITAL
IMPROVEMENT PLAN BUDGET
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017
(Chapter 5, Statutes of 2017) was passed by the California 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 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 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 projects’ completion, and the estimated useful life of the
improvement; and
WHEREAS, the City will receive an estimated $1,049,877 in RMRA funding in
Fiscal Year 2022-23 from SB 1; and
WHEREAS, this is the sixth year in which the City is receiving SB 1 funding and
the funding will enable the City/County to continue essential road maintenance and
rehabilitation projects, safety improvements, and increasing access and mobility options
for the traveling public that would not have otherwise been possible; and
WHEREAS, the City has undergone a robust public process to ensure public input
into the community’s transportation priorities, and budgeting process that has been
adopted by City Council and includes a full listing of Capital Improvements Plan projects
and funding sources including SB-1; and
WHEREAS, the City used a Pavement Management System and other goals such
as the complete streets elements and bicycle and pedestrian safety to develop the SB 1
project list to ensure revenues are being used on the highest-priority and most cost-
effective projects that also meet the community’s priorities for transportation investment;
and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate
streets/roads, sidewalks, and add active transportation infrastructure throughout the City
this year and similar projects into the future; and
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Resolution No. _____ (2022 Series) Page 2
R ______
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs
Assessment found that the City’s streets and roads are in a “good” condition and this
revenue will help the City increase the overall quality of its road system and over the next
decade and make critical improvements to transportation that will assist in greenhouse
gas emission reductions and active transportation safety; and
WHEREAS, the SB 1 project list and overall investment in the City’s streets and
roads infrastructure with a focus on basic maintenance and safety, investing in complete
streets infrastructure and active transportation projects, and using cutting-edge
technology, materials and practices, will have significant positive co-benefits statewide;
and,
WHEREAS, based on the 2020-21 audited financials, there is $440,582 in SB1
unassigned Fund Balance due to actual revenue exceeding expenditures that can be
used to augment ongoing pavement management projects.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The following project will be funded in-part with Fiscal Year 2022-
23 RMRA revenues:
Project Title: Roadway Sealing 2022
Project Description: Pavement Maintenance and Rehabilitation work in pavement
areas 6, 7, and 9 (Downtown Core)
Project Location: Neighborhoods in the Laguna Lake area north of Madonna to
City Limits, the Anholm neighborhood north of US 101 and West of HWY 1 to City
limit, and the downtown core bordered by Nipomo, Pacific, Santa Rosa, and Palm
Streets.
Estimated Project Schedule: Start July 2022 — Completion December 2022
Estimated Project Useful Life: 20 years
SECTION 3. The following previously proposed and adopted projects may also
utilize Fiscal Year 2020-21 RMRA revenues in their delivery. With the relisting of these
projects in the adopted fiscal year resolution, the City is reaffirming to the public and
the State our intent to fund these projects with RMRA revenues:
Project Title: San Luis Greenway Phase 2
Project Description: Construct a Class I bike path between Foothill and Ramona,
and a Class IV two-way protected bikeway along Ramona from the Class I path
to Broad Street.
Project Location: Foothill to Ramona and Ramona to Broad Street
Estimated Project Schedule: Start Fall 2021 — Completion Spring 2022
Estimated Project Useful Life: 20 years
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Resolution No. _____ (2022 Series) Page 3
R ______
SECTION 4. Amend the FY 2022-23 Adopted Budget to allocate $440,582 in SB1
unassigned Fund Balance to the Streets Reconstruction and Resurfacing project to
augment ongoing pavement management projects, including the Roadway Sealing 2022
project.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 22.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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AREA 6AREA 7LEGENDSTREETS TO BE SEALEDAREA 9 DOWNTOWN BOUNDARY -SEALING TO BEGIN ON SEPTEMBER1ST, 2022AREA 6 & 7 BOUNDARIES0SCALE IN FEET1500Page 53 of 1192
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