CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/18/2024
DEPARTMENT: Public Works
SUBJECT:
ADOPTION OF LIST OF PROJECTS FUNDED BY SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT
RECOMMENDED ACTION(S):
1. Approve Senate Bill 1: The Road Repair and Accountability Act Project List forms for Fiscal Year 2024-25.
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, CALIFORNIA, CONCERNING THE LIST OF PROJECTS FOR FISCAL YEAR 2024/25 FUNDED BY SB1: THE
ROAD REPAIR AND ACCOUNTABILITY ACT.
3. Authorize the Director of Public Works to forward the Fiscal Year 2024-25 project list to the California Transportation Commission, as required under Road Repair and Accountability Act of 2017.
EXECUTIVE SUMMARY:
Senate Bill 1: The Road Repair and Accountability Act (“SB1”), enacted in 2017, established the Road Maintenance and Rehabilitation Account (“RMRA”), a funding source for California’s transportation system intended to address deferred maintenance on state highways and local roadway systems. As part of the SB1 eligibility requirements, the City is required to submit a resolution detailing the City’s road maintenance and rehabilitation projects for the upcoming fiscal year to the California Traffic Commission to qualify to receive SB1 funding (“Resolution”).
The following projects may be partially or fully funded by SB1 funds:
•Annual Residential Slurry Seal: Zone A, Zone D and Zone E; •Arterial Slurry Seal: Jeronimo and Muirlands;
•Street Resurfacing: Trabuco Road from Peachwood to Bake Parkway; •Street Resurfacing: portions of Lake Forest from Bake Pkwy to I-5 Fwy; •Street Resurfacing: portions of El Toro Road from Glenn Ranch Road to I- 5;
•Street Resurfacing: portions of Bake Parkway from Rancho Parkway South to South Pointe Drive, and;
•Street Resurfacing: El Toro from Jeronimo to Trabuco.
The Governor’s budget projections in January 2024 anticipated SB1 funding for the City of Lake Forest to be approximately $2,229,785. Staff recommends the City Council approves SB1 Project List forms for FY 2024-25, adopt the proposed Resolution, and authorize the Director of Public Works to forward the required documents to the California Transportation Commission, as required under the Road Repair and Accountability Act of 2017.
BACKGROUND:
SB1 was passed by the California Legislature and signed into law by Governor Brown on April 28, 2017. SB1 raises over $5 billion per year for transportation infrastructure improvements in the RMRA state fund. SB1 funding is a population-based allocation funded by the following taxes enacted by the law: 12- cent gasoline excise tax, 20 cent diesel fuel excise tax, state transportation improvement fees, and transportation loan repayments. On October 18, 2017, the California Transportation Commission (“CTC”) adopted the Amended Annual Reporting Guidelines for 2017 Local Streets and Roads Funding related to SB1.
To receive funding under the SB1 program, the City must submit a list of projects to the CTC at the beginning of each fiscal year, as well as project expenditure reports at the end of each fiscal year.
DISCUSSION:
To remain eligible for funding, the City is required to submit an initial project list to the CTC by July 1, 2024 (Attachment 1), for the upcoming fiscal year. SB1 allows the City to substitute different projects as necessary during the fiscal year as long as changes are reported in the project expenditure reports at the end of each fiscal year. Staff will monitor the funding projections and will utilize these program provisions to adjust the City’s projects to match the actual funding available.
The proposed 2023-2030 Capital Improvement Plan (“CIP”) includes $6,360,000 for Street Resurfacing and Slurry Seal projects in Fiscal Year 2024-25 (Attachment 2). There are two funding sources utilized for the Street Resurfacing and Slurry Seal projects: Measure M2 ($1,962,680), and SB1 ($4,116,500). The Measure M2 funding is based on an Orange County projection. The SB1 funding is based on the Governor’s budget projections at the time of the proposed 2023- 2030 CIP budget creation. Because the Governor’s budget is periodically updated, the City may need to adjust the revenue projection for SB1 funds during Fiscal Year 2024-25. The Infrastructure Reserve funding is a portion of one-time funds approved by the City Council. The January 2024 budget projection for SB1 funds is $2,229,785. The Pavement Management Relief Fund is a one-time grant from the federal government administered through OCTA and Caltrans for pavement rehabilitation. Staff will continue to monitor any changes to these funding projections. These funding sources may cover a portion of each project or an entire project.
The City’s proposed CIP budget refers to SB1 as a source of funding for the Street Resurfacing and Slurry Seal Projects. SB1 requires that each project include its estimated useful lifespan and a description of its specific location. To ensure the City’s SB1 projects meet the required criteria, the proposed Resolution (Attachment 3) includes the following language adding the estimated useful life, project limits, and construction dates for the following projects:
Annual Slurry Seal, Zone A (PW 2022-05A) - The slurry sealing of non-arterial public streets in Zone A, the neighborhood between Jeronimo Rd. and I-5 Freeway, North of Ridge Route. This project would provide an estimated useful life of 7 to 10 years, with anticipated construction completion in 2024-2025.
Annual Slurry Seal, Zone D (24S01-A) - The slurry sealing of non-arterial public streets in Zone D, the neighborhood between Trabuco Rd. and Portola Parkway, North of Lake Forest Drive. This project would provide an estimated useful life of 7 to 10 years, with anticipated design completion in 2024-2025.
Annual Slurry Seal, Zone E (25S01-A) - The slurry sealing of non-arterial public streets in Zone E, the neighborhood between Trabuco Rd. and Portola Parkway, South of Lake Forest Drive. This project would provide an estimated useful life of 7 to 10 years, with anticipated design start in 2024-2025.
Road Rehabilitation and Slurry Seal, Jeronimo Road and Muirlands Boulevard (PW 2021-05B) - This road rehabilitation and slurry seal project would spot repair streets and slurry seal the entire length of the project boundary, generally from Los Alisos to Bake Parkway. This project would provide an estimated useful life of 10 to 15 years, with anticipated construction start in 2024- 2025.
Street Resurfacing: El Toro from Jeronimo to Trabuco (PW 2022-05B) - This road rehabilitation project would grind and overlay El Toro Road from Jeronimo to Trabuco. This project would provide an estimated useful life of 10 to 15 years, with anticipated design completion in 2024-2025.
Street Resurfacing: Trabuco Road from Peachwood to Bake Parkway (24S01-B) - This road rehabilitation project would grind and overlay Trabuco Road from Peachwood to Bake Parkway. This project would provide an estimated useful life of 10 to 15 years, with anticipated construction in 2024- 2025.
Street Resurfacing: portions of Lake Forest Drive from Bake Parkway to I-5 Freeway (PW 2022-05D) - This road rehabilitation project would grind and overlay portions of Lake Forest Drive from Bake Parkway to I-5 Freeway. This project would provide an estimated useful life of 10 to 15 years, with anticipated design completion in 2024-2025.
Street Resurfacing: portions of El Toro Road from Glenn Ranch Road to I-5 Freeway (PW 2022-05E) - The road rehabilitation project would grind and overlay portions of Lake Forest Drive from Bake Parkway to I-5 Freeway. This project would provide an estimated useful life of 10 to 15 years, with anticipated design completion in 2024-2025.
Street Resurfacing: portions of Bake Parkway from Rancho Parkway South to South Pointe Drive (PW 2022-05F) - The road rehabilitation project would grind and overlay portions of Bake Parkway from Rancho Parkway South to South Pointe Drive. This project would provide an estimated useful life of 10 to 15 years, with anticipated design completion in 2024-2025.
SB1 allows the City to substitute different projects as necessary during the fiscal year, as long as it is reported in the project expenditure reports at the end of each fiscal year.
Staff recommends the City Council approve SB1 Project List forms for FY 2024- 25, adopt the proposed Resolution, and authorize the Director of Public Works to forward the required documents to the California Transportation Commission, as required under the Road Repair and Accountability Act of 2017.
FISCAL IMPACT:
The City anticipates receiving approximately $2,229,785, based on population, from the Road Repair and Accountability Act (“SB1”) program to fund the City’s annual street resurfacing and slurry seal projects for Fiscal Year 2024-25.
ATTACHMENTS:
1. CTC SB1 Proposed Project List Forms
2. Street Resurfacing and Slurry Seal page from the Proposed 2023-2030 Capital Improvement Plan Budget
3. Resolution
Initiated By: Nazila Mokarram, Principal Civil Engineer Submitted By: Thomas Wheeler, P.E., Director of Public Works/City Engineer Approved By: Debra Rose, City Manager