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June 14, 2022
ITEM TITLE
The Road Repair and Accountability Act of 2017 (RMRA): Approve the Proposed List of Projects for Fiscal Year 2022/23
Report Number: 22-0138
Location: Citywide
Department: Engineering
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities), Section 15302 Class 2 (Replacement or Reconstruction), and Section 15061(b)(3).
Recommended Action
Adopt a resolution approving the proposed list of projects for Fiscal Year 202 2/23 to be funded by SB 1 (RMRA).
SUMMARY
Pursuant to the Streets and Highways Code (SHC) Section 2034(a)(1), prior to receiving an apportionment of RMRA funds from the State 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. Staff is recommending that the City Council adopt a resolution approving the proposed RMRA Project List for Fiscal Year 2022/23.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), Section 15302 Class 2 (Replacement or Reconstruction), and Section 15061(b)(3) because the proposed actions would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
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Not applicable.
DISCUSSION
The Road Repair and Accountability Act of 2017 (SB1) established the Road Maintenance and Rehabilitation Account (RMRA) which provided new funds to cities and counties throughout California to use for roadway maintenance and rehabilitation. SB1 increased per gallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration taxes, stabilized the fuel tax rates and provided for inflationary adjustments to rates in future years.
Required Annual Authorization
The RMRA local streets and roads allocations are intended to be focused on improving the overall condition of the municipality’s pavement condition. Once a municipality reaches an average Pavement Condition Index (PCI) of 80, other transportation related projects could be proposed. As of May 2022, the City’s average PCI is 74 (good); therefore, RMRA funds should be utilized specifically for roadway maintenance and rehabilitation.
Prior to receiving an apportionment of RMRA funds from the CTC in a fiscal year, the City must submit to the Commission an adopted list of projects proposed to be funded with these funds by July 1st each year. All projects proposed to receive the fiscal year funding must be adopted by resolution by the City Council at a regular public meeting for each fiscal year (Streets and Highway Code (SHC) Section 2034(a)(1) ). The adopted list must include a description and the location of each proposed project, the estimated useful life of the improvement, and a proposed schedule for the project’s completion.
The projected RMRA revenue for Chula Vista in FY202 2/23 is $6,077,433 (Attachment 1) which will be programmed with the adoption of the City’s FY2022/23 CIP Program. The proposed project lists STL 0460 and STM 0412 for FY202 2/23 (Attachment 2) includes street segments consisting of public roadway segments with PCI ratings between 23 to 41 that are recommended for Rehabilitation treatment, a nd PCI ratings between 52 to 75 that are recommended for Maintenance treatment. The overall City average PCI is projected to increase as these projects and other paving projects and TransNet funding are completed.
The RMRA also requires that the City su bmit an annual expenditure report for all active and completed projects funded by the RMRA. The annual report will provide details on the projects completed to date and any updates to the original listing. This is the sixth year in which the City is receiving SB 1 funding and will enable the City to supplement the road maintenance and rehabilitation efforts needed on streets throughout the City.
The following are the previously adopted SB1 RMRA projects:
PROJECT STATUS
FY2017/18 (CIP STM0395) Completed
FY2018/19 (CIP STM0396) Completed
FY2019/20 (CIP STM0400) Design Phase
FY2020/21 (CIP STM0401) Design Phase
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(continued)
PROJECT STATUS
FY2021/22 (CIP STL0457) Design Phase
FY2021/22 (CIP STM0410) Design Phase
The projects proposed for adoption in FY2022/23 are CIP STL0460 - RMRA Pavement Maintenance and CIP STM0412 - RMRA Pavement Rehabilitation are estimated to begin preliminary engineering in March of 2023 and project completion by December of 2023.
Maintenance of Effort [Streets and Highways Code Sec. 2036] The RMRA contains local agency Maintenance of Effort (MOE) requirement that applies to funds allocated through the RMRA. Similar to the existing requirements for the Gas Tax and TransNet, the MOE requirement ensures that these new funds do not supplant exi sting levels of city and county discretionary revenue spending on streets and roads. For RMRA, the City must maintain discretionary fund spending for street, road, and highway purposes at no less than the average of 2009 -10, 2010-11, and 2011 -12 fiscal ye ars, excluding one-time funds. The RMRA MOE for Chula Vista is $4,515,412 (Attachment 3). The City anticipates meeting the MOE requirement for FY2022/23.
The State Controller may perform audits to ensure compliance with these MOE rules. If the State Con troller determines that the City has not met its’ MOE, the City will be required to reimburse the state for the funds it received during that fiscal year, although the City may expend during that fiscal year and the following fiscal year a total amount that is sufficient to comply. Any funds withheld or returned as a result of a failure to comply will be reapportioned to the other counties and cities whose expenditures are in compliance.
Due to this requirement, the City established a separate account for RMRA funds within the Gas Tax Account.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found that Mayor Mary Casillas Salas and Councilmember Jill Galvez have property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. However, the decision solely concerns repairs, replacement , or maintenance of existing streets, water, sewer, storm drainage or similar facilities, and the members’ property will not be affected disproportionately to other properties receiving the same services. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(d)(1)), this item does not present a real property-related conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Funding of $6,077,433 and any remaining funds from previously completed RMRA projects will be programmed as part of the FY2022/23 CIP Program. Therefore, there is no additional impact to the RMRA Fund.
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ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require only routine City street maintenance. Since the improvements are anticipated to increase the life of the streets included, there should be a positive long- term fiscal impact.
ATTACHMENTS
1. Local Streets and Roads – Projected Revenues
2. RMRA Lists of Projects for FY2022/23
3. RMRA MOE FY10 through FY12
Staff Contact: William S. Valle, Director of Engineering and Capital Projects Patrick Moneda, Senior Civil Engineer