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Home My WebLink About2017-09-26 - AGENDA REPORTS - AMEND FISCAL YEAR 2017-2018 ANNUAL BUDGET TO INCOR (2)0 Agenda Item: 5 CITY OF SANTA CLARITA Q:° AGENDA REPORT CONSENT CALENDAR 7, CITY MANAGER APPROVAL: 1 j4 _ " DATE: September 26, 2017 SUBJECT: AMEND FISCAL YEAR 2017-2018 ANNUAL BUDGET TO INCORPORATE SENATE BILL 1, ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, LOCAL STREETS AND ROADS, ROAD MAINTENANCE AND REHABILITATION FUNDS INTO THE CAPITAL IMPROVEMENT PROGRAM DEPARTMENT: Public Works PRESENTER: Cruz Caldera RECOMMENDED ACTION City Council: Adopt a resolution amending the Fiscal Year 2017-2018 Annual Budget to incorporate Senate Bill 1, Road Repair and Accountability Act of 2017, Local Streets and Roads, Road Maintenance and Rehabilitation funding into the Capital Improvement Program, 2017-2018 Overlay & Slurry Seal Program, Project M0124. 2. Authorize an increase in Road Maintenance and Rehabilitation revenue account 267- 4411.008 by $1,300,466 and appropriate to expenditure account M0124267-5161.001. Decrease Transportation Development Act (TDA) Article 8 revenue account 233-4421.002 and expenditure account M0124233-5161.001 by $800,466. 3. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND On April 28, 2017, Governor Brown signed Senate Bill 1 (SB 1) to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and roads system. SB 1 is funded through increases in per gallon fuel excise taxes, increases in diesel fuel sales taxes, and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years. Page 1 PacketPg. 26 Beginning November 1, 2017, the State Controller will deposit various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of RMRA funding will be apportioned by formula to the City of Santa Clarita (City) pursuant to Streets and Highways Code Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. SB 1 emphasizes the importance of accountability and transparency, and California Transportation Commission (CTC) staff, in collaboration with stakeholders, developed Local Streets and Roads Funding Annual Reporting Guidelines. To be eligible for RMRA funding, the statute and guidelines require the City provide annual basic project reporting to the CTC, specifically, the City must submit an annual list of project(s) proposed to be funded with RMRA funding. All proposed projects must be included in the City budget adopted by the City Council at a regular public meeting. The City selected the 2017-2018 Overlay & Slurry Seal Program, Project M0124, design and construction, for the first year of RMRA revenue, estimated to be $1,300,466. These funds will replace $800,466 of TDA Article 8, which will be returned to the fund balance, while increasing Project M0124 total budget by $500,000. This project reflects the City's commitment to roadway infrastructure by overlaying streets in need of attention, supporting the Santa Clarita 2020 theme of Sustaining Public Infrastructure. The City's Five -Year Pavement Preservation Program identifies $22,900,000 is needed annually to maintain a 67 Pavement Condition Index rating of the City's major roadways. Specific roadway segments for this year's project will be selected as part of the design process. The project is scheduled to be in design through March 2018, bid and award to a construction contractor by June 2018, and construction anticipated to begin in July 2018. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Amend into the Fiscal Year 2017-2018 budget, $1,300,466 of State Senate Bill 1, Road Repair and Accountability Act, Local Streets and Roads, Road Maintenance and Rehabilitation fund (267) into the 2017-2018 Overlay & Slurry Seal Program, expenditure account M0124267- 5161.001 and increase revenue account 267-4411.008-SB1 Road Repair & Accountability. Decrease TDA Article 8 revenue account 233-4421.002 and expenditure account M0124233- 5161.001 by $800,466. ATTACHMENTS Resolution 0 Page 2 Packet Pg. 27 5.a RESOLUTION NO. 17- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE FISCAL YEAR 2017-2018 ANNUAL BUDGET TO INCORPORATE SENATE BILL 1, ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, LOCAL STREETS AND ROADS, ROAD MAINTENANCE AND m r1131IR jINSILI1MOMuu�xyi.rr111raxeAll9rILIOsiLIi9: 11351130,1189'kales,15� WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi -modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Santa Clarita (City) are aware of the project(s) proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must include a list of all project(s) proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City of Santa Clarita Annual Operating Budget, which must include 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; and WHEREAS, the City will receive an estimated $1,300,466 in RMRA funding in Fiscal Year 2017-2018 from SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community's transportation priorities; and WHEREAS, the City used the City's Five -Year Pavement Preservation Program to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community's priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate numerous streets/roads, bridges, and add active transportation infrastructure throughout the City through this year's project, and hundreds of similar projects into the future; and Y 0 WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in an "at -risk" condition and this revenue will help us Y increase the overall quality of our road system and over the neat decade will bring our streets and $ roads into a "good" condition; and t v R WHEREAS, without revenue from SB 1, the City, would have otherwise been delaying or canceling projects throughout the community; and Packet Pg. 28 5.a WHEREAS, if the Legislature and Governor failed to act, City streets would have continued to deteriorate, having many and varied negative impacts on our community; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail also reduces construction time, which results in less air pollution from heavy equipment and less water pollution from site run-off; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co -benefits statewide. NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Santa Clarita, State of California, as follows: 1. The foregoing recitals are true and correct. 2. The Fiscal Year 2017-2018 Annual Operating Budget and Capital Improvement Program is amended to incorporate the following project planned to be funded with Road Maintenance and Rehabilitation Account revenues: 1) Project Name: 2017-2018 Overlay & Slurry Seal Program Design and Construction; a. Location: Citywide, specific streets will be selected during the design phase from locations identified through the City's Five -Year Pavement Preservation Program; b. Estimated Useful Life: Streets selected for preventative maintenance will have a pavement life expectancy from three to seven years, and streets selected for rehabilitation will have a life expectancy from 10-15 years; c. Anticipated Year of Construction: Project will be constructed in 2018; 3. The Fiscal Year 2017-2018 Annual Operating Budget and Capital Improvement Program is amended as follows: Amend Fiscal Year 2017-2018 Annual Operating Budget and Capital Improvement Program to appropriate $1,300,466 of SB 1 Road Repair and Accountability Act Grant funds (229) into expenditure account MO124229-5161.001. PASSED, APPROVED, AND ADOPTED this 261h day of September 2017. MAYOR ATTEST: CITY CLERK DATE: Packet Pg. 29 _l STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA I, Mary Cusick, City Clerk of the City of Santa Clarita, do herby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 26a' day of September 2017, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 5.a Packet Pg. 30 il