For City Council Meeting [June 8, 2021]
TO: Honorable City Council
APPROVAL: Sean Grayson, Acting City Manager
FROM: Michael Tahan, Interim Public Works Director
Title
Request City Council Adopt Resolution No. 7731, Adopting a List of Projects for Fiscal Year 2021/2022 Funded by SB 1: The Road Repair and Accountability Act of 2017.
Body
BACKGROUND
On April 28, 2017, the Governor signed Senate Bill 1 (SB-1), also known as the Road Repair and Accountability Act of 2017. This legislation addresses basic road maintenance, rehabilitation and critical safety needs on state highways and on local streets and roads. The California State Association of Counties provided a very succinct summary of the SB-1 provisions which is included as Attachment 1. Some of the key provisions of SB-1 include:
• Increases per gallon fuel excise taxes (12 cents per gallon increase effective November 1, 2017)
• Increases diesel fuel sales taxes (20 cents per gallon increase effective November 1, 2017)
• Provides for inflationary adjustments to tax rates in future years.
The estimated annual funding supported by SB-1 is $5.2 billion, including $1.5 billion apportioned to local cities and $1.5 billion to counties for local streets and road repairs. As of November 1, 2017, the State Controller (Controller) began depositing various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding was apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Pursuant to Streets and Highways Code (SHC) Section 2032.5(a), the objective of the Local Streets and Roads Program is to address deferred maintenance on the local streets and roads system through the prioritization and delivery of basic road maintenance and rehabilitation projects as well as critical safety projects. Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements of the program are codified in SHC Sections 2034, 2036, 2037, and 2038 and include the following:
• Prior to receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city must submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with these funds.
• The list of projects 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 [SHC 2034(a)(1)]. The project list does not limit the flexibility to fund projects in accordance with local needs and priorities so long as the projects are consistent with RMRA requirements as outlined in SHC 2030(b) [SHC 2034(a)(1)].
• The CTC will report to the Controller the cities that have submitted a list of projects as described in SHC 2034(a)(1) and that are therefore eligible to receive an apportionment of RMRA funds for the applicable fiscal year [SHC 2034(a)(2)].
• The Controller, upon receipt of the report from the Commission, shall apportion RMRA funds to eligible cities pursuant to SHC 2032(h) [SHC 2034(a)(2)].
• For each fiscal year in which RMRA funds are received and expended, cities must submit documentation to the CTC that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement [SHC 2034(b)].
• A city receiving an apportionment of RMRA funds is required to sustain a maintenance of effort (MOE) by spending at least the annual average of its general fund expenditures during the 2009/2010, 2010/2011, and 2011/2012 fiscal years for street, road, and highway purposes from the city’s general fund [SHC 2036].
• A city may spend its apportionment of RMRA funds on transportation priorities other than priorities outlined in SHC 2030(b) if the city’s average Pavement Condition Index (PCI) meets or exceeds 80 [SHC 2037].
• By July 1, 2023, cities receiving RMRA funds must follow guidelines developed by the California Workforce Development Board (Board) that address participation and investment in, or partnership with, new or existing pre-apprenticeship training programs [SHC 2038].
On September 12, 2017, City Council adopted the 2017/2018 RMRA Project List. The staff report is included as Attachment 2.
On April 10, 2018, City Council adopted the 2018/2019 RMRA Project List. The staff report is included as Attachment 3.
On April 23, 2019, City Council adopted a list of projects for fiscal year 2019/2020 funded by SB 1: The Road Repair and Accountability Act of 2017. The staff report is included as Attachment 4.
On April 28, 2020, City Council adopted a list of projects for fiscal year 2020/2021 funded by SB1: The Road Repair and Accountability Act of 2017. The staff report is included as Attachment 5.
ANALYSIS/DISCUSSION
Pursuant to SHC Section 2030(a), RMRA funds made available for the Local Streets and Roads Funding Program shall be prioritized for expenditure on basic road maintenance and rehabilitation projects, and on critical safety projects. SHC Section 2030(b-f) 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 storm water capture projects in conjunction with any other allowable project)
• Traffic Control Devices
• Funds made available by the program may also be used to satisfy a match requirement in order to obtain state or federal funds for projects authorized by this subdivision.
• Specifies additional project elements that will be incorporated into RMRA - funded projects by cities to the extent possible and cost effective, and where feasible as deemed by cities. These elements are:
§ Technologies and material recycling techniques that lower greenhouse gas emissions and reduce the cost of maintaining local streets and roads through material choice and construction method.
§ Systems and components in transportation infrastructure that recognize and accommodate technologies including but not limited to ZEV fueling or charging and infrastructure-vehicle communications for transitional or fully autonomous vehicles.
§ Project features to better adapt the transportation asset to withstand the negative effects of climate change and promote resiliency to impacts such as fires, floods, and sea level rise (where appropriate given a project’s scope and risk level for asset damage due to climate change).
§ Complete Streets Elements (such as project features that improve the quality of bicycle and pedestrian facilities and that improve safety for all users of transportation facilities) are expected to be incorporated into RMRA funded projects to the extent as deemed by cities beneficial, cost-effective, and practicable in the context of facility type, right-of-way, project scope, and quality of nearby facilities.
The CTC Guidelines for the implementation of the apportionment for the RMRA funding requires submittal of an approved project list submitted to the CTC no later than July 1, 2021.
Exhibit A of the attached resolution provides a list of eligible project locations recommended by staff for funding from the fiscal year 2020/2021 RMRA revenues based upon previous Council priorities and the pavement ratings contained in the City’s Pavement Management System. Council will have the opportunity to prioritize or amend these streets as necessary as part of the annual budget approval process.
Previously proposed and adopted projects may also utilize fiscal year 2020/2021 RMRA revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City reaffirms to the public and State the City’s intent to fund these projects with RMRA revenues. Exhibits B, C, and D of the attached resolution provide listings of previously proposed and adopted projects.
• Exhibit B provides the 2020/2021 RMNA Project List adopted by Council on April 28, 2020.
• Exhibit C provides the 2019/2020 RMNA Project List adopted by Council on April 23, 2019.
• Exhibit D provides the 2018/2019 RMNA Project List adopted by Council on April 10, 2018.
On August 11, 2020, the City Council adopted the Fiscal 2020/2021 Budget and Capital Improvement Project List. The Capital Improvement Project List includes the 2020/2021 Street Overlay & Reconstruction Project and a joint project with the City of San Bernardino to provide street rehabilitation on Pepper Avenue. The streets included in these two (2) projects are included in the RMNA Project Lists.
The City encourages public input into our community’s transportation priorities and street conditions. This input is received through the Public Works Service Request Process, City Council Meetings, and Planning and Transportation Commission Meetings. The City uses a Pavement Management System to develop the SB 1 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.
As noted earlier, although these streets are identified in this action, the Council may modify these streets in the future within the guidelines provided by the State.
ENVIRONMENTAL IMPACT
The plan is exempt from California Environmental Quality Act (CEQA) review per Section 15268, Ministerial Projects. Section 15268 allows public agencies to make non-discretionary determinations as a part of implementing its regulations. However, the individual projects are subject to the CEQA process and will be reviewed and approved on an individual basis.
GENERAL PLAN CONSISTENCY
Approval of this action complies with the City of Rialto General Plan Goals and related Policies:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Goal 4-2: Protect residential neighborhoods from through traffic impacts.
Goal 4-3: Protect residences, sensitive land uses, and pedestrians from activities along rail corridors.
Goal 4-4: Protect school children and others from traffic hazards around schools.
Goal 4-5: Ensure the provision of adequate, convenient, and safe parking for all land uses.
Goal 4-6: Provide for all residents and businesses to have equal access to reliable and convenient public transit services.
Goal 4-7: Achieve optimum use of regional rail transit.
Goal 4-8: Establish and maintain a comprehensive system of pedestrian trails and bicycle routes that provide viable connections throughout the City.
Goal 4-9: Promote walking.
Goal 4-10: Provide a circulation system that supports Rialto’s position as a logistics hub.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
Apportionment of RMRA funds requires Rialto to sustain a maintenance of effort (MOE) by spending at least the annual average of its general fund expenditures during the 2009/2010, 2010/2011, and 2011/2012 fiscal years for street, road, and highway purposes from the City’s General Fund. The California State Controller initially established preliminary MOE for Rialto at $618,840. Upon final review of the certified Rialto General Fund expenditures for street purposes for the period of July 1, 2009 through June 30, 2012, the State Controller’s Office (SCO) issued a final revised MOE for Rialto at $368,490 as noted in a letter from SCO dated January 8, 2018, included as Attachment 6.
The average amount of $368,490 is the annual expenditure amount Rialto must expend annually for street purposes in order to receive any RMRA local streets and roads fund allocations. Staff will include this amount in the FY2021/2022 General Fund budget request during the annual budget process.
Capital Improvement Budget Impact
According to the California Local Government Finance Almanac, the City of Rialto’s projected revenue from the RMRA in fiscal year 2021/2022 is $2,008,494. The Local Streets and Roads Projected Revenue Table is included as Attachment 7. Revenue and expenditure for the proposed $2,008,494 will be budgeted in Gas Tax Account No. 203-400-7305-7524 and Gas Tax Account No. 203-500-7305-3001 during the annual budget process for FY2021/2022. The RMRA funding will supplement the funding for the Fiscal Year 2021/2022 Street Overlay & Reconstruction Project.
Licensing
The proposed action will not require payment of a business license tax.
RECOMMENDATION
Staff recommends that the City Council Adopt the Resolution Adopting a List of Projects for Fiscal Year 2021/2022 Funded by SB-1: The Road Repair and Accountability Act of 2017.