Administrative
Report
H.5., File # 23-5957 Meeting Date: 6/13/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2306-058, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
EXECUTIVE SUMMARY
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017 and will provide and invest $52.4 billion over the next decade to fix roads, freeways, and bridges in communities across California. SB 1 created a new Road Maintenance and Rehabilitation Account (RMRA) funded by raising gasoline and diesel excise taxes, diesel sales tax, and vehicle fees. The City’s FY 2023-24 allocation of SB 1 funding has been estimated by the State in the amount of $1,736,399, up by about $214,900 (14%) from FY 2022-23.
According to adopted accountability and transparency provisions, the City is required to designate, by Council resolution, and submit a list of projects annually that will be funded by SB 1 proceeds. The annual submittal deadline is July 1. Staff has prepared and recommends for adoption the attached Resolution No. CC-2306-058 that meets the requirements of SB 1 accountability and transparency provisions. The Resolution designates the FY 2023-24 SB 1 funding be applied to the Residential Street Rehabilitation Project, Bicycle Transportation Implementation Plan and the Citywide Striping Projects as reflected in the proposed Capital Improvement Program.
BACKGROUND
SB 1, the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017 and will provide and invest $52.4 billion over the next decade to, in part, fix roads, freeways and bridges in communities across California. These funds will be split equally between state and local investments. California’s state-maintained transportation infrastructure will receive approximately $26 billion of SB 1 revenue. The other $26 billion will go to local roads, transit agencies, and an expansion of the state’s growing network of pedestrian and cycle routes. Each year, this new funding will be used to address deferred maintenance needs both on the state highway system and the local road system. Some maintenance needs are:
1. Repairs to Local Streets and Roads: $1.5 billion (over 10 years)
2. Maintenance/Rehabilitation of State Highway System: $1.5 billion (over 10 years)
3. Maintaining/Repairing the State’s Bridges & Culverts: $400 million (over 10 years) RMRA funds are generated by raising gasoline and diesel excise taxes, diesel sales tax, and vehicle
H.5., File # 23-5957 Meeting Date: 6/13/2023
RMRA funds are generated by raising gasoline and diesel excise taxes, diesel sales tax, and vehicle fees. The gasoline and diesel tax increases took effect on November 1, 2017 and the vehicle fee increases took effect on January 1, 2018.
The City previously received approximately $1.6M of Gas Tax funds (Highway Users Tax) on an annual fiscal year basis. The RMRA funds from SB 1 increased the amount of gas tax-related funds the City receives. For FY 2017-18, RMRA revenue from SB 1 was collected from November 1, 2017 through June 30, 2018 (8 months). As such, Redondo Beach received $403,764 of FY 2017-18 RMRA funds. In FY 2018-19, RMRA revenue from SB 1 for the City increased to $1,259,412, reflecting gas tax collections for a full year including the busy summer driving months and a full year of vehicle fee collections. For FY 2019-20, the City received $1,185,944, an amount that was impacted by the spring onset of the COVID-19 pandemic. For FY 2020-21 the City received $1,148,351 reflecting a full year of collections and the amount continued to increase in FY 2021-22 for a total of $1,322,509 and $1,521,498 in FY 2022-23. For FY 2023-24 the City is estimated to receive $1,736,399 in new RMRA fees. Previous year allocations were appropriated for the Manhattan Beach Boulevard Resurfacing Project - Aviation Boulevard to Inglewood Avenue, Torrance Blvd Resurfacing Project, Citywide Striping, and the Residential Street Rehabilitation Project.
The original adopted guidelines of the California Transportation Commission (CTC) required Cities to submit an updated list of projects to be funded by SB 1 by May 1st of each year. However, the submittal deadline, both now and going forward, will be July 1st. The Resolution appropriates FY 2023-24 SB 1 funding to the Residential Street Rehabilitation Project, Bicycle Transportation Implementation Plan, and the Citywide Striping Projects as reflected in the proposed Capital Improvement Program.
Design of the next cycle of Residential Street Rehabilitation Project will occur in FY 2023-24 with construction beginning at the end of FY 2023-24 or beginning of FY 2024-25. The Bicycle Transportation Plan Implementation Project is expected to be constructed in FY 2023-24. Lastly, the Department awarded contracts to two different striping contractors for the Citywide Striping Project during FY 2022-23 and work will continue throughout FY 2023-24.
COORDINATION
The Resolution has been coordinated with the proposed CIP Budget for FY 2023-24 with the Finance Department and the City Manager’s Office and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Anticipated receipts of SB 1 funding in FY2023-24 is $1,736,399, based on State estimates. FY 2023-24 RMRA revenue is recommended for appropriation for the following projects:
Residential Street Rehabilitation Project - Cycle 2, Phase 4 $800,000 Bicycle Transportation Plan Implementation $350,000
Citywide Striping $500,000
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - Adopting a List of Projects Funded by SB 1, The Road and Accountability Act of 2017
H.5., File # 23-5957 Meeting Date: 6/13/2023