HomeMy WebLinkAbout4.5 - 1611 The Road Repair and Accoutability Act of 20
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STAFF REPORT
CITY COUNCIL
DATE: October 3, 2017
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 -
Fiscal Year 2017-18 Project List
Prepared by: Andrew Russell, Asst. Public Works Director/City Engineer
EXECUTIVE SUMMARY:
The City Council will consider approving a list of projects funded in Fiscal Year 2017-18
by Senate Bill 1, the Road Repair and Accountability Act of 2017. The City Council will
also consider approving a budget change for the Annual Street Resurfacing (ST0117)
and Tassajara Road Realignment & Widening (ST0116) projects.
STAFF RECOMMENDATION:
Adopt the Resolution Approving a List of Projects Funded in Fiscal Year 2017-18 by
Senate Bill 1, the Road Repair and Accountability Act of 2017 ; and, approve a budget
change for the Annual Street Resurfacing and Tassajara Road Realignment & Widening
Projects.
FINANCIAL IMPACT:
The Fiscal Year 2017-18 Budget Update accounted for revenue the City will receive as
a result of the passage of Senate Bill 1 (SB 1), the Road Repair and Accountability Act
of 2017. This law provides funding through increased gasoline excise taxes, diesel fuel
sales taxes, and vehicle registration fees via the new Road Maintenance and
Rehabilitation Account (RMRA). It is projected that the City will receive $3 30,716 of
RMRA funds in Fiscal Year 2017-18 and approximately $972,000 of RMRA funds
annually in future fiscal years. This funding is in addition to the annual Highway Users
Tax Account (or Gas Tax) funds the City receives.
To include RMRA as a funding source, a budget change is proposed for two Capital
Improvement Program projects. The proposed budget change will add $30,716 to the
Annual Street Resurfacing Project (CIP No. ST0117) and will include $300,000 of
RMRA funds in the Tassajara Road Realignment & Widening project (CIP No. ST0116)
in lieu of Measure BB funds.
The proposed budget change for each project will result in the following:
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Annual Street Resurfacing, CIP Project Number ST0117
Proposed FY
2017-18 Budget
$76,834
$375,287
$2,815,915
$9,524
$30,716
$3,308,276
2201 State Gas Tax $2,022,100
2204 Measure B Sales Tax - Local
Streets Fund (ACTC)$465,460
2214 Measure BB Sales Tax - Local
Streets Fund (ACTC)$790,000
2220 Road Maintenance and
Rehabilitation Account (NEW)$30,716
$3,308,276
Add'l Improvements (NEW)
Project Funding Sources
TOTAL
Project Expenditures
Salaries & Benefits
Contract Services
Improvements
Miscellaneous
TOTAL
Tassajara Road Realignment & Widening, CIP Project Number ST0116
Proposed FY
2017-18 Budget
$51,283
$357,355
$408,638
4301 Traffic Impact Fee – Category 1 $108,638
2217 Measure BB Grants (REMOVE)$0
2220 Road Maintenance and
Rehabilitation Account (NEW)$300,000
$408,638
Project Funding Sources
TOTAL
Project Expenditures
Salaries & Benefits
Contract Services
TOTAL
DESCRIPTION:
In April 2017, the State Legislature passed and Governor Brown approved Senate Bill 1,
the Road Repair and Accountability Act of 2017 (Beall, Chapter 5, Statues of 2017). SB
1 provides a significant, stable and ongoing increase in state transportation funding. SB
1 created the Road Maintenance and Rehabilitation Program to address deferred
maintenance on the state highway system and on the local street and road system.
Funds for the program are deposited into the State Transportation Fund, Road
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Maintenance and Rehabilitation Account (RMRA).
SB 1 is projected to generate over $5 billion annually for state and lo cal transportation
improvements. Cities and counties are slated to receive $1.5 billion at full
implementation of SB 1. According to analysis by the League of California Cities, SB 1
will double the amount of revenues cities receive from the state for lo cal street
maintenance and rehabilitation needs, with allocations to cities based upon population.
The RMRA receives funds from the following new taxes imposed under SB 1:
A 12 cent per gallon increase to the gasoline excise tax effective November 1,
2017.
A 20 cent per gallon increase to the diesel fuel excise tax effective November 1,
2017, half of which will be allocated to Trade Corridors Enhancement Account
(TCEA) with the remaining half to the RMRA.
A new vehicle registration tax called the “transportation improvement fee,”
effective January 1, 2018, based on the market value of the vehicle.
An additional new $100 vehicle registration tax on zero emission vehicles model
year 2020 and later effective July 1, 2020.
Annual rate increases to these taxes beginning July 1, 2020 (July 1, 2021 for the
ZEV fee), and every July 1 thereafter for the change in the California Consumer
Price Index. The first adjustment to be made on July 1, 2020 will cover CPI
change for two years: November 1, 2017 through November 12, 2019.
RMRA funds are in addition to the existing/traditional state gas tax funds which have
been in place for decades and are allocated by the state through the Highway User Tax
Account (HUTA).
The Fiscal Year 2017-18 Budget Update, adopted by City Council in May 2017,
included the increased gas tax revenue projections based upon the passage of SB 1.
Gas tax revenues in the Fiscal Year 2017-18 Budget are shown below, along with
projected Fiscal Year 2018-19 revenues.
State Gas Tax Fiscal Year 2017-18 Projected 2018-19*
Existing (HUTA) $1,272,787 $1,344,761
New (RMRA, SB 1) $330,716 $972,025
Total $1,603,503 $2,316,786
* Fiscal Year 2018-19 revenue projections based upon May 11, 2017, report from
The California Local Government Finance Almanac.
The Fiscal Year 2018-19 revenues, and future years’ revenues, provide the City an
opportunity to expand and enhance street maintenance activities and to fund existing
and new street projects. Funding in future years will be included as part of the Cit y’s
two-year budget and Capital Improvement Project adoption process.
The rules associated to use of RMRA funds are similar, but not identical to the rules
associated with HUTA funds. RMRA local streets and roads funds must be used for
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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, which include active transportation projects,
pedestrian and bicycle safety projects, transit facilities, and drainage and storm-
water capture projects in conjunction with other allowable projects.
Additionally, if a city or county has an average Pavement Condition Index of 80 or more
(very good to excellent), then the city or county may spend its RMRA funds on
transportation priorities other than those listed above. The City of Dublin currently has a
Pavement Condition Index of 86.
Maintenance of Effort (MOE)
SB 1 requires that RMRA funds not supplant existing general revenue funds that the
City of Dublin is using on streets and roads. This is referred to as the maintenance of
effort (MOE) requirement. The MOE is calculated by the State Controller based upon
the City’s average spending for street and road purposes for Fiscal Ye ars 2009-10,
2010-11, and 2011-12. The City of Dublin’s MOE was calculated at $1,229,320. For
Fiscal Year 2017-18, the City’s adopted Capital Improvement Program, Annual Street
Resurfacing Project has a total budget over $3.3M, however this reflects budget carried
over from prior fiscal years. In future years beyond Fiscal Year 2017 -18, the five-year
Capital Improvement Program includes proposed annual budgets of $1.7M per year.
Reporting Requirements
In order for the City to receive RMRA funds from the state, SB 1 requires the City to
annually submit, to the California Transportation Commission, a project list pursuant to
an adopted budget. For Fiscal Year 2017 -18, Staff is recommending that City Council
approve the project list to include the Annual Street Resurfacing project and the
Tassajara Road Realignment & Widening project. In conjunction with the project list,
Staff recommends City Council approve corresponding budget changes for both
projects to include RMRA as a funding source.
The project list must include a description of the project location, a proposed schedule,
and the estimated useful life of the improvement. The two projects are summarized
below.
Annual Street Resurfacing (CIP No. ST0117)
The project provides for a variety of pavement surface treatments and repairs to
existing City streets. The project is budgeted annually to help maintain the
significant investment the City has in the street system. For Fiscal Year 2017-18,
a pavement overlay of the entire length of San Ramon Road and an overlay of
Dublin Boulevard from San Ramon Road to Silvergate Drive is planned.
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Proposed FY2017-18 RMRA Funding: $30,716
Tassajara Road Realignment & Widening (CIP Project ST011 6)
The project provides for the preliminary engineering, design, right-of-way
acquisition and eventual construction of Tassajara Road from North Dublin
Ranch Drive to the northern City limit. The project is currently in preliminary
engineering with the development of a new roadway alignment, design cross-
section, environmental document preparation and related General Plan and
Eastern Dublin Specific Plan amendments. For Fiscal Year 2017 -18, following
certification of the environmental document and approval of the preliminary
engineering efforts, it is planned that detailed design to begin.
Proposed FY2017-18 RMRA Funding: $300,000
In future years, the project list will be taken from the adopted Budget and Capital
Improvement Program, which will identify projects that are budgeted to use RMRA
funds.
In addition to the annual submittal of a project list, SB 1 also requires the City to submit
to the California Transportation Commission an annual report updating the status of
projects for which RMRA funds were expended. The report must also include project
descriptions, locations, fund expended, completion date, and useful life of the project.
At this time, annual report guidelines from the California Transportation Commission
have not been finalized.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Resolution Approving a List of Projects Funded in Fiscal Year 2017-18 by Senate Bill
1
2. Budget Change Form
RESOLUTION NO. XX- 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
APPROVING A LIST OF PROJECTS FUNDED IN FISCAL YEAR 2017-18 BY
SENATE BILL 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 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 and estimated $330,716 in RMRA funding in
Fiscal Year 2017-18 from SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public
input into our community’s transportation priorities; and
WHEREAS, the City used the adopted Capital Improvement Program and 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; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate
streets, bridges, sidewalks, traffic control devices, and help add active transportation
infrastructure throughout the City this year and into the future; and
WHEREAS, the 2016 California Statewide Local Streets and Roads Needs
Assessment found that the City’s streets and roads are in an “very good” condition and
this revenue will help us maintain the overall quality of our road system; and
WHEREAS, if the Legislature and Governor failed to act, city streets and county
roads would have continued to deteriorate, having many and varied negative impacts on
our community; and
WHEREAS, cities and counties own and operate more than 81 percent of streets
and roads in California, and from the moment we open our front door to drive to work,
bike to school, or walk to the bus station, people are dependent upon a safe, reliable
local transportation network; and
WHEREAS, modernizing the local street and road system provides well -paying
construction jobs and boosts local economies; and
WHEREAS, the local street and road system is also critical for farm to market
needs, interconnectivity, multimodal needs, and commerce; and
WHEREAS, police, fire, and emergency medical services all need safe reliable
roads to react quickly to emergency calls and a few minutes of delay can be a matter of
life and death; and
WHEREAS, maintaining and preserving the local street and road system in good
condition will reduce drive times and traffic congestion, improve bicycle safety, and
make the pedestrian experience safer and more appealing, which leads to reduce
vehicle emissions helping the City and State achieve its air quality and greenhouse gas
emissions reductions goals; 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; 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, BE IT RESOLVED that the City Council of the City of
Dublin does hereby approve a list of projects funded in Fiscal Year 2017-18 by Senate
Bill 1, the Road Repair and Accountability Act of 2017; and
BE IT FURTHER RESOLVED that the following is the approved list of projects
planned to be funded with Road Maintenance and Rehabilitation Account revenues in
Fiscal Year 2017-18:
1. Annual Street Resurfacing (CIP No. ST0117): The project provides for a
variety of pavement surface treatments and repairs to existing City streets.
For Fiscal Year 2017-18, a pavement overlay of the entire length of San
Ramon Road and an overlay of Dublin Boulevard from San Ramon Road
to Silvergate Drive is planned to be constructed in summer 2018. Upon
completion, the new road surface is estimated to have a twenty-year
useful life.
2. Tassajara Road Realignment & Widening (CIP No. ST0116): The project
provides for the preliminary engineering, design, right-of-way acquisition
and construction of Tassajara Road from North Dublin Ranch Drive to the
northern City limit. For Fiscal Year 2017-18, the project is planned to
complete preliminary engineering, including with the development of a
new roadway alignment, design cross-section, environmental document
preparation and related General Plan and Eastern Dublin Specific Plan
amendments. The project is also planned to begin detailed design upon
completion of preliminary engineering. Upon project completion, the new
pavement surface is estimated to have a twenty-year useful life.
PASSED, APPROVED AND ADOPTED this 3rd day of October, 2017, by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Mayor
ATTEST:
_______________________________________
City Clerk
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other X
Account Amount Account Amount
EXP: CIPS
ST0117.9400.9401 (Annual Street Resurfacing) - Improvements $30,716
3600.9601.49999 (Transfers In)$30,716
ST0117.2220 (2220.9601.89101) - RMRA Transfers Out $30,716
ST0116.2220 - Tassajara Road Alignment & W idening (2220.9601.89101) - RMRA Transfers Out $300,000
ST0116.2217 (2217.9601.89101) - Measure BB Grant Transfers Out ($300,000)
REV: Road Repair and Rehabilitation Account (RMRA)
2201.3201.49131 (Gas Tax Fund)- Misc Revenue ($330,716)
2220.0000.47250 (RMRA Fund - Gas Taxes)$330,716
10/3/2017
Posted By:Date:
As Presented at the City Council Meeting
**********Finance Use Only**********
CITY OF DUBLIN
CIP adjustments due to funding from Road Repair and Rehabilitation Account (RMRA). The estimate of additional funding from
RMRA was accounted for in Gas Tax Fund, a new fund is created for RMRA to meet the State's reporting and accounting
requirements. Measure BB Grant funding is transfered out of ST0116 because the project did not receive this discretionary
funding from the Alameda County Transportation Commission.
REASON FOR BUDGET CHANGE
FISCAL YEAR 2017-18
BUDGET CHANGE FORM
City Council's Approval Required
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