REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution to Approve Road Maintenance and Rehabilitation Proposed Projects List for the Road Repair and Accountability Act of 2017 - Local Streets and Roads Funding Program
Report
BACKGROUND
In 2017, the Governor signed Senate Bill 1 (SB 1), the Road Repair and Accountability Act. SB 1 increased fuel excise taxes, diesel fuel sales tax, and vehicle registration fees, and created the Road Maintenance and Rehabilitation Program and the Road Maintenance and Rehabilitation Account for the deposit of those funds. These tax revenues are used to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local street and road systems.
The City received $3.9 million in SB 1 funding for the capital paving program (Program) in FY 2024/25. The Program provides for ongoing roadway infrastructure preservation and rehabilitation to maintain Sunnyvale’s overall street network in “good” condition. Past projects included milling, wedge-grinding and overlay, cold in place roadway recycling, crack sealing, street patching, and slurry sealing. Maintaining Sunnyvale streets in very good condition is essential to a functioning transportation network, maintaining the economic vitality of the City, and enhancing quality of life.
EXISTING POLICY
General Plan Chapter 3, Land Use and Transportation Element:
*Goal LT-1: Protect the quality of life, the natural environment, and property investment, preserve home rule, secure fair share funding, and provide leadership in the region.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
The projects funded by SB 1 will be subject to CEQA review at the time of approval. It is anticipated that most projects will qualify for the Class 1 categorical exemption (CEQA Guidelines Section 15301(c)), which allows for the operation, repair, maintenance, or minor alteration of existing facilities, including existing highways and streets, sidewalks, gutters, and similar facilities.
DISCUSSION
SB 1 requires a city receiving funds to sustain a maintenance of effort (MOE) by spending at least the annual average of its general fund expenditures on streets. The MOE is calculated by using the average spending in fiscal years 2009/10, 2010/11 and 2011/12. Sunnyvale’s MOE is approximately $8.6 million. In FY 2023/24, the City expended approximately $17.1 million on MOE eligible projects. A city may spend its SB 1 funds on transportation priorities other than road maintenance and rehabilitation if the city’s average Pavement Condition Index (PCI) meets or exceeds 80. The City’s current PCI is 75.
The City’s SB 1 funding share is estimated to be $4.2 million for FY 2025/26. Before receiving funds and before July 1, the City must submit to the California Transportation Commission (CTC) the proposed projects for FY 2025/26 (Attachment 1), a resolution adopting the list of SB 1 funded projects for FY 2025/26, and the master list of city streets (Attachment 2), which the City Council must approve at a regularly scheduled public meeting.
Attachment 2 identifies the streets in Sunnyvale based on a survey of pavement conditions in the City. This updated list represents the street segments in the City that will be considered for improvements funded by SB 1 over the next few years. This list of street segments is significantly larger than what can be funded with the available funds, so not all of these streets will receive treatment within the next few years. However, they would likely receive treatment in future years as part of the pavement program. Specific projects will be identified and selected for construction based on several variables, including condition, utility conflicts, new development, the preservation or restoration process selected, and coordination with other projects. Target improvement of the PCI for each segment is included based on conceptual treatment considerations. Specific treatments may vary, pending a detailed field review and design considerations. Approval of the list meets the requirements of the CTC for purposes of SB 1 funding. Subsequently, to meet the requirements of future year SB 1 funds, this list will be updated annually for Council consideration and approval.
FISCAL IMPACT
The City is expected to receive approximately $4.2 million annually in SB 1 funds in FY 2025/26. The City can spend SB 1 funds to support its pavement maintenance and rehabilitation efforts. It can also use these funds for other transportation initiatives and priorities after reaching the program goal of PCI 80. The FY 2024/25 Adopted Budget includes the allocation of these funds to pavement maintenance for the entire twenty-year planning period.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
STAFF RECOMMENDATION
Recommendation
Adopt a Resolution to approve the Road Maintenance and Rehabilitation Updated Proposed Projects List for the Road Repair and Accountability Act of 2017 - Local Streets and Roads Funding Program and find the action exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4) as it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html <http://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html>
An ”X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contracts under $50,000 or non-fiscal
___ Contracts between public entities
_X_ General policy and legislative actions
*“Competitively bid” means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Tamara Davis, Senior Management Analyst
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution FY 2025/26 Projects for FY 2025/26 Funded by SB 1
2. Master List of Proposed Street Segments