FOR THE COUNCIL MEETING OF MAY 21, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Public Works Brett Fulgoni
SUBJECT: Adoption of a Resolution Approving a Road Maintenance and Rehabilitation Account Project List For Senate Bill 1
Description:
The City Council will consider approving a Road Maintenance and Rehabilitation Account Project List for Fiscal Year 2024-2025.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution approving a Road Maintenance and Rehabilitation Account Project List to be funded by the Road Repair and Accountability Act of 2017, Senate Bill 1, and incorporated into the Fiscal Year 2024-2025 budget.
BACKGROUND:
The Road Repair and Accountability Act of 2017, Senate Bill 1 (SB-1), was passed by the State Legislature and signed into law by the Governor in April 2017. The purpose of the bill is to help state and local agencies address transportation funding shortfalls. SB-1 has generated revenue through i ncreases in gas tax, vehicle registration fees, and fees on zero-emission vehicles.
One of the major components of SB -1 is the Road Maintenance and Rehabilitation Account (RMRA), which is the revenue stream set aside for the maintenance and rehabilitation of roadways. SB -1 is expected to generate over $5 billion annually at full implementation, $1.5 billion of which will be distributed to local agencies and counties through the RMRA. The City of Santa Maria is projected to receive $2,806,458 in revenues from the RMRA for Fiscal Year 2024 -2025, an increase of $181,016 from the 2023-2024 allocation.
SB-1 includes accountability and transparency provisions to enable residents to remain aware of the projects proposed to be funded by SB -1 in their area. As part of these provisions, it is a requirement for local agencies to adopt project lists before the start of every fiscal year. The project list must include all projects proposed to receive funding 2 from the RMRA. The required list includes a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. Per the requirements of SB -1, the list must be approved by the City Council through Resolution and sent to the California Transportation Commission (CTC) no later than July 1, 2024, to be eligible for RMRA funding next fiscal year.
The primary focus of the RMRA is the maintenance of the existing infrastructure within the City’s rights-of-way. Other transportation funding sources, such as Gas Tax, Measure A, Local Surface Transportation Program (LSTP), Growth Mitigation, and other grant programs are available for capital expenditures through the normal budget process.
On June 20, 2023, the City Council appr oved the RMRA project list for the 2023 -2024 Fiscal Year, which was then submitted to the CTC as required. The list included one pavement maintenance project. This project was assigned a total of $8,264,991 in the 2023-2024 Fiscal Year budget, which consisted of the gas tax, Measure A, LSTP, general fund, the 2023-2024 RMRA allocation, and the remaining carry -over fund balance from the previous year. Staff recommended including the 2023-2024 Fiscal Year project on the RMRA list due to its eligibility for RM RA funds and based on analysis through the City’s Pavement Management Program (PMP). The previously approved project for Fiscal Year 2023-2024 was:
1. Roadway Rehabilitation Project
Description: This project consisted of dig-outs and restoration of significant pavement failures. The dig -out and replacement of failed areas of pavement on multiple distressed arterials. Additionally, the project also included the installation of new striping and pavement markings. Approximately 400,600 Square Yards of dig-outs.
Project Status: This project is an ongoing project through the 2023-2024 Fiscal Year.
The total amount of SB-1 funds utilized on this project was $2,228,728.
DISCUSSION:
Staff has identified one new pavement rehabilitation project to utilize RMRA funding in Fiscal Year 2024-2025. This project is identified as the Roadway Rehabilitation Project.
The project has been identified through the use of the City’s PMP in coordination with staff’s field inspections and recommendations. Staff’s recommendation is to include this project on the RMRA list due to their eligibility for RMRA funds and the ability to be completed within the next fiscal year.
SB-1 RMRA Funded Projects for Fiscal Year 2024-2025:
1. Roadway Rehabilitation Project (F iscal Year 2024-2025 and prior year remaining funds)
Description: This project will include the surface seal of various roadways in the City of Santa Maria. The surface seal of the roadway will be over previous dig-out 3 areas’ arterials. Additionally, the project also includes the installation of new striping and pavement markings.
Location:
Betteravia Road from E Street to US 101
South Blosser Road from Donovan Road to Betteravia Road Bradley Road from Main Street to Columbia Drive
Carlotti Drive from Nobel Way to Donovan Road
Depot Street from Fesler Street to Main Street
Hidden Pines Way from Blosser Road to Preisker Lane
Main Street from Palisade Drive to Suey Road
Railroad Avenue from Donovan Road to Fesler Street
Suey Road from Donovan Road to Main Street
Bradley Road from Jones Street to Betteravia Road
College Drive from Donovan Road to Main Street
Approval of the Resolution will allow the City to submit the new project to the CTC before the July 1, 2024 , deadline and remain eligible for another year of SB -1 funding. The benefit of increased revenue from SB -1 is that it will allow the City to utilize existing budgeted funds to rehabilitate additional roadways this fiscal year that would have been otherwise delayed.
This action does not preclude the City from utilizing these funds for other eligible roadway maintenance projects in Fiscal Year 2024-2025. This action meets the requirements of the RMRA program. During Fiscal Year 2024-2025, if the City decides to utilize these funds for projects not listed, updated reporting at the end of the year to the CTC, as required by the program, will be completed.
Future RMRA project lists to be recommended for approval by the City Council wi ll be selected from the capital improvement program budget plan for roadway maintenance currently being developed by staff as part of its PMP. The anticipated funding projections will support the orderly development, and improvement of other City infrastructure such as pedestrian and bicycle facilities, underground utilities, and drainage.
Alternative(s)
The recommended action is to approve the SB-1 RMRA Project List for Fiscal Year 2024- 2025.
The alternative to the recommended action would be for the City Council to direct staff to revise the project list to include alternate locations. Per the requirements of SB -1, the project list must be approved by the City Council by Resolution and sent to the CTC no later than July 1, 2024. Delaying the approval may jeopardize the City’s eligibility for timely receipt of funds.
4 Fiscal Considerations
Approval of the Resolution will make the City eligible to submit its request to the CTC to receive SB -1 apportionment revenues for Fiscal Year 2024 -2025. CTC will review submittals from all agencies in California and adopt project lists at its meeting in August 2024.
Impact to the Community
The community will benefit by receiving transportation revenues that will be used to improve the streets of Santa Maria.
ATTACHMENTS
A. LSR Projected Revenues 23-24 and 24-25
B. LSR Estimates 2023-24, 2024-25