Placentia City Council
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: ACTING DIRECTOR OF PUBLIC WORKS
DATE: JUNE 18, 2024
AGENDA REPORT
SUBJECT: RESOLUTION ADOPTING FISCAL YEAR 2024-25 PROJECT LIST FOR COMPLIANCE WITH SB 1, THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
FISCAL
IMPACT: PROJECTED REVENUE: $1,359,908 FY 2024-25 BUDGET (SB 1/RMRA FUND)
SUMMARY:
The State Legislature approved Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017 (the "Act") in the Fiscal Year (FY) 2016-17 Legislative session. The Act provided local governments in California with a new annual revenue stream to fund road maintenance, repairs, and other related transportation projects. It is estimated that the City will receive a total of $1,359,908 in Road Maintenance and Rehabilitation Account (RMRA) funds under this program in FY 2024-25 which will be used to repair and maintain Placentia's streets. Cities and counties receiving these funds must submit a list of proposed projects along with an adopted resolution to the California Transportation Commission (CTC) by July 1st of each year. Staff is recommending the City Council adopt the proposed project list in conformance with the Act to continue receiving RMRA funding.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Resolution No. R-2024-41, a Resolution of the City Council of the City of Placentia, California, adopting the List of Projects for Fiscal Year 2024-25 funded by SB 1, The Road Repair and Accountability Act 2017; and
2. Authorize Staff to submit the project list and all necessary documentation to the California Transportation Commission to satisfy SB1 funding requirements.
DISCUSSION:
On April 28, 2017, the Governor signed Senate Bill 1 (SB 1), also known as the Road Repair and Accountability Act of 2017. This legislation aimed to address essential road maintenance, rehabilitation, and safety needs for both state highways and local streets. SB 1 achieved this by increasing per -gallon fuel excise taxes, raising diesel fuel sales taxes and vehicle registration fees, and allowing for inflationary adjustments to tax rates in the future.
June 18, 2024
City Council Agenda
June 18, 2024
Since November 1, 2017, the State Controller began depositing this additional funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). Each month a percentage of the RMRA funds are apportioned by formula to the City pursuant to Streets and Highways Code Section 2032(h). As codified in the Streets and Highways Code (SHC), RMRA local streets and roads allocations must be used for projects that include, but are not limited to:
• Road maintenance and rehabilitation
• Bridge replacement and rehabilitation
• Safety projects
• Railroad grade separations
• Traffic control devices
• Completion of street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project.
This will be the eighth (8th) year in which the City is receiving SB 1 funding which is a critical source of funding needed to help the City address its backlog in road maintenance and rehabilitation. Based on the released May 2024 estimates, the City is estimated to receive a total of $1,359,908 in RMRA funds in FY 2024-25.
As part of SB 1's various accountability and transparency measures and the CTC's 2021 Reporting Guidelines for Local Streets and Roads Funding Program, the City is required to adopt a resolution (Attachment 1) establishing the list of projects and submit that list annually to the CTC by July 1 and subsequently provide year-end updates on the progress and expenditures of previously proposed projects by December 1st of each year. In line with these guidelines, Staff has identified eligible projects for RMRA funding in the proposed FY 2024-25 Capital Improvement Program Budget. The following list of proposed projects will be funded in -part or solely with SB 1 funding in FY 2024-25:
Project Name Project Area
Proposed SB 1
Funding Amount
1,497,000
FY 2023-24 Roadway Rehabilitation
Project
The southeast corner o
the City including
Chapman Ave (Placentia
Ave — Kraemer Blvd) and
Placentia Ave (Chapman
Ave -La Jolla St).
Residential Street Curb Ramps Project Various locations throughout the City
$100,000
The proposed funding amounts for FY 2024-25 are inclusive of the existing RMRA fund balance and projected revenue. Staff is recommending that the City Council adopt the attached resolution (Attachment 1) and authorize staff to submit the project list and necessary documentation to the CTC to remain eligible for funding.
City Council Agenda
June 18, 2024
FISCAL IMPACT:
Based upon the released May 2024 estimates, the City is estimated to receive a total of $1,359,908 in RMRA funds in FY 2024-25. There was an existing fund balance in the RMRA fund to support the difference between anticipated revenue and scheduled projects. To be eligible to receive RMRA funding, the City must prepare and submit a project list annually to the CTC by July 31St. The City must also provide a public record which documents that the proposed projects have been adopted in the operating or capital budget. The recommended actions will enable the City to be eligible to receive RMRA funding in FY 2024-25.
Prepared by:
Elsa Robinson
Senior Management Analyst
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
Chris Tanio, PE
Acting Director of Public Works
Reviewed and approved:
Pa.wtit.in, a
Damien R. Arrula
City Administrator
Attachments:
1. Resolution No. 2024-41 —Adopting FY 2024-25 SB 1 -Funded Project List
2. Project Area Map for SB1 FY 2024-25 Funding (City Project FY 2023-24 Roadway Rehabilitation Project)