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June 13, 2023
ITEM TITLE
Road Maintenance: Adopt a List of Projects for Fiscal Year 2023/24 Funded by SB 1: The Road Repair and Accountability Act of 2017
Report Number: 23-0093
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 adopting a list of projects for Fiscal Year 2023/24 funded by the Road Maintenance and Rehabilitation Account (RMRA) created by SB 1: The Road Repair and Accountability Act of 2017.
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 requesting that the City Council adopt a resolution approving the City’s RMRA Project Lists for Fiscal Year 2023/24.
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 Facil ities), 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.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
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 2023, the City’s average PCI is 71 (good); therefore, RMRA funds should be utili zed 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 d escription 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 FY2023/24 is $6,842,191 (Attachment 1) which was programmed with the adoption of the City’s FY2023/24 CIP Program on May 23, 2023. The proposed project lists STL0465 and STM0413 for FY2023/24 (Attachment 2) , which includes street segments consisting of public roadway segments with PCI ratings between 15 to 62 t hat are recommended for Rehabilitation treatment, and PCI ratings between 76 to 91 that are recommended for Maintenance treatment. The overall City average PCI is projected to increase as these projects and other paving projects with TransNet funding are completed.
The RMRA also requires that the City submit 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 seventh year in which the City is receiving SB 1 funding and will enable the City to supplement the road maintenance an d rehabilitation efforts needed on streets throughout the City.
The following are the previously adopted SB1 RMRA projects, including status:
PROJECT STATUS
FY2017/18 (CIP STM0395) Completed
FY2018/19 (CIP STM0396) Completed
FY2019/20 (CIP STM0400) Construction Phase
FY2020/21 (CIP STM0401) Construction Phase
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FY2021/22 (CIP STL0457) Design Phase
FY2021/22 (CIP STM0410) Design Phase
(continued)
PROJECT STATUS
FY2022/23 (CIP STL0460) Design Phase
FY2022/23 (CIP STM0412) Design Phase
The projects proposed for adoption in FY2023/24, CIP STL0465 - RMRA Pavement Maintenance FY2023/24 and CIP STM0413 - RMRA Pavement Rehabilitation FY2023/24, are estimated to start construction work in Summer of 2024 with completion by December of 2024.
Maintenance of Effort [Streets and Highways Code Sec. 2036] The RMRA contains a 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 existing 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 years, excluding one-time funds. The RMRA MOE for Chula Vista is $4,515,412 (Attachment 3). The City anticipates meeting the MOE requirement for FY2023/24.
The State Controller may perform audits to ensure compliance with these MOE rules. If the State Controller 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 McCann has property holdings within 1,000 feet of the bound aries 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 member’s property will not be affected dis proportionately 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
This action relates to funds to be received and expenditures to be incurred in fiscal year 2023/24, resulting in no net fiscal impact in the current year.
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ONGOING FISCAL IMPACT
Projected RMRA revenues totaling $6,842,191, along with any remaining funds from previously completed RMRA projects, were programmed in the adopted FY2023/24 CIP Program, resulting in no net impact to the RMRA Fund in fiscal year 2023/24.
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 FY2023/24
3. RMRA MOE FY10 through FY12
Staff Contact: William S. Valle, Director of Engineering and Capital Projects Patrick Moneda, Senior Civil Engineer