CITY COUNCIL STAFF REPORT
Meeting Date: June 17, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___ - 24 TO IDENTIFY THE FY2024/2025
STREET RESURFACING PROJECT FOR THE EXPENDITURE OF
FISCAL YEAR 2024/2025 FUNDS OF SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
SYNOPSIS
The City of Pleasant Hill will receive an estimated $883,192 from the State in new Road Maintenance and Rehabilitation Account (RMRA) funds in Fiscal Year 2024/2025 (FY 24/25) from Senate Bill 1 (SB1). In order to be eligible for the funds, the City must identify and adopt by resolution all projects proposed to be funded with the RMRA funds. Staff is recommending the City appropriate these new RMRA funds to the FY 24/25 Street Resurfacing Project (Project), which is identified in the FY 24-29 Capital Improvement Plan (CIP).
DISCUSSION
Background
On April 28, 2017, the Governor signed SB1, which is known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical safety needs on state highways, local streets, and the road system. SB1 generates funds by increasing the per-gallon fuel excise taxes; increasing diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.
Since November 1, 2017, the State Controller (Controller) deposited various portions of this new funding into the newly created RMRA. A percentage of this new RMRA funding is apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on local streets and the roads system. For FY 24/25, the City anticipates receiving approximately $883,192 in RMRA funds.
In order to be eligible for annual RMRA funding, the statute requires cities and counties to provide basic annual RMRA project reporting to the California Transportation Commission (CTC). Prior to receiving an apportionment of RMRA funds from the Controller this fiscal year, the City must submit to the CTC a list of projects proposed to be funded with these funds by July 1, 2024. All projects proposed to receive funding must be included in an approved or amended budget that is adopted by the City Council at a regular public meeting. The list of projects must include a description, a location, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.
Additional requirements for funding eligibility include public outreach and use of a Pavement Management System to develop the SB1 project list, ensuring that RMRA funds are being utilized on high-priority, cost-effective projects that meet the City’s pavement maintenance needs. The City satisfies both of these requirements.
RMRA funds may be used for the following project types: road maintenance and rehabilitation projects; safety improvement projects; “complete streets” projects; pedestrian and bicycle facility projects; transit facility projects; and traffic control projects.
Analysis
The Street Resurfacing Program is an approved project in the adopted FY 2024-2029 CIP. It identifies several arterial, collector, and residential streets with highest priority needs for pavement treatment and is an ideal project candidate that meets the criteria for SB1 funds.
The Street Resurfacing Program identifies the City’s 5-Year Paving Plan (FY 2024-2029) and specifically the expenditure plan for the approved two-year budget. Staff has identified the FY 24/25 Street Resurfacing Project (Project) as the Project that will design and implement the City’s highest priority needs, which includes pavement resurfacing treatments for streets identified by this project (see attached Project List of Streets.) When designed, the Project will identify the desired and most cost-effective pavement resurfacing treatment and will extend the pavement life at a fraction of the cost of full pavement reconstruction.
The Project design is substantially complete, and construction is expected to begin in the spring of 2025. The City historically implements one street resurfacing project per two-year budget period, due to the design schedule and potential to receive better bids. The Project’s implementation schedule satisfies the SB1 program schedule for the FY 24/25 RMRA funds.
FISCAL IMPACT
The Project cost will be identified at the end of the project design phase, and it will be funded through the Street Resurfacing Program (MK-001 in the CIP). The Street Resurfacing Program has a budget of $4,182,940 for FY24/25, and the proposed RMRA funds (for Fiscal Year 24/25) are identified as a funding source under the Street Resurfacing Program budget sheet (attached).
No general fund monies are allocated to this year’s Street Resurfacing Program.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution.
ALTERNATIVES TO RECOMMENDED ACTION
None Recommended.
ATTACHMENT(S):
Proposed Resolution
Exhibit 1 – Project List of Streets
FY 2024-2029 Street Resurfacing Program CIP Sheet (MK-001) Prepared by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager