For City Council Meeting June 11, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Timothy Sullivan, Director of Maintenance and Facilities
Title
Request City Council to: 1) Adopt Resolution No. 8240, Adopting a List of Projects Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2024/2025; and 2) Authorize the City Manager or their Designee to Execute all Related Documents.
Body
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt the Resolution Adopting a List of Projects Funded by SB-1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2024/2025; and,
2. Authorize the City Manager or their Designee to Execute all Related Documents.
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 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) ...
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