DATE:
May 21, 2024
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Cassandra Sanchez, Director of Public Works
Bethany Hudson, Assistant Project Manager
SUBJECT:
Approve the FY 2024-25 SB-1 Funding Project List
RECOMMENDED ACTION
It is recommended that the City Council approve Resolution No. 2024-19 approving the Fiscal Year 2024-25 Project List to be funded by SB-1: The Road Repair and Accountability Act.
BACKGROUND
On Wednesday, March 29, 2017, Governor Jerry Brown announced a transportation funding agreement. The agreement was passed by the State Legislature and signed into law in April of 2017 as Senate Bill 1 (SB-1) or the Road Repair and Accountability Act of 2017. SB-1 is funded by various mechanisms including an initial 12 cent gas excise tax increase, a reset price-based excise tax at 17.3 cents, a 20 cent diesel excise tax, a 4% diesel sales tax increase, a $25-$175 annual transportation improvement fee based on vehicle value, and a $100 annual zero emissions vehicle fee, with annual increases based upon changes in the Consumer Price Index (CPI) beginning July 1, 2020. From these sources, SB-1 is expected to provide $5.2 billion annually and $15 billion for local streets and roads over the next ten years. Specifically, local agencies will be funded through the Road Maintenance and Rehabilitation Account (RMRA) which consists of the new gas tax, the transportation improvement fee, and part of the diesel excise tax. The local share will be split evenly between cities and counties with city revenues being allocated per capita. The City of Hesperia will receive an estimated $2,748,882.00 for FY 2024-25.
SB-1 will provide investments to make significant improvements to the State’s highway system as well as local transportation facilities in disrepair. Cities and Counties will use SB-1 funds for complete streets projects, railroad grade separations, traffic control devices, increasing mobility options for residents, and increasing access to multi-modal transportation options by expanding transit, bicycle, and pedestrian friendly opportunities. However, the main focus of RMRA is to improve deteriorating roads throughout the state through maintenance and rehabilitation projects as well as critical safety projects. Therefore, SB-1 requests that, to the extent possible, local agencies prioritize basic maintenance and safety projects.
ISSUES/ANALYSIS
SB-1 includes accountability and transparency measures to ensure the residents of the City are aware of the projects proposed for funding in our community. Cities and counties will adopt a project list by resolution each year and provide year end reporting on completed projects including necessary amendments if applicable. Prior to receiving funds, cities are required to annually approve a list of all projects by resolution that are proposed to receive funding from the RMRA. The project list must include a description and the location of each proposed project as well as the estimated useful life of the improvement.
City Staff will submit a list of projects to the California Transportation Commission that includes projects approved by Council. The following previously proposed and adopted projects may also utilize Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:
FY 2021-22 Street Improvement Project has been modified to include the following streets: Jacaranda Avenue which includes select removal and replacement and slurry seal and/or micropaving of asphalt on Jacaranda Avenue between Outer Bear Valley Road and Eucalyptus Avenue which has an estimated useful life of 20 years; Seventh Avenue which includes selected removal and replacement and slurry seal and/or micropaving of asphalt on Seventh Avenue between Main Street and Mesquite Street which has an estimated useful life of 20 years as well as Seventh Avenue which includes select removal and replacement and slurry seal and/or micropaving of asphalt on Seventh Avenue between Willow Street and Cajon Street which has an estimated useful life of 20 years. Construction is anticipated to commence in September 2024 and the anticipated completion date of this project is May 2025.
Maple Avenue was previously part of the FY 2021-22 Street Improvement project and has been since separated into its own project. Maple Avenue Rehabilitation consists of select removal and replacement of asphalt on Maple Avenue between Main Street and Ranchero Road which has an estimated useful life of 20 years. Construction is anticipated to commence in September 2024 and the anticipated completion date of this project is May 2025.
CITY GOAL SUPPORTED BY THIS ITEM
Capital Improvement: Continually evaluate capital improvement priorities.
Financial Health: Maintain a balanced budget and adequate reserves.
FISCAL IMPACT
There is no direct fiscal impact as a result of this subject item. This action simply approves the FY 2024-25 SB-1 Funding Project List for the purpose of receiving and expending SB-1 RMRA funds.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2024-19
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council
Approve FY 2024-25 SB-1 Project List
May 21, 2024