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 (SB1) Funding Program
Report
BACKGROUND
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), which is known as the Road Repair and Accountability Act of 2017. SB1 increases fuel excise taxes, diesel fuel sales tax, and vehicle registration fees, which are utilized to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system.
The City received $2.9 million in SB1 funding for the capital paving program in FY2020/21. The program provides for ongoing roadway infrastructure preservation and rehabilitation to maintain Sunnyvale’s overall street network in “good” condition. Projects in past fiscal years 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 the quality of life.
EXISTING POLICY
General Plan Chapter 3, Land Use and Transportation element:
*Goal A: 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.
DISCUSSION
SB1 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. In FY 2019/20, the City expended approximately $11.8 million on MOE eligible projects in the General Fund. A city may spend its SB1 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 77.
The City’s annual SB1 funding share is estimated to be $3 million in FY 2021/22. Prior to receiving funds and before July 1, 2021, the City must submit to the California Transportation Commission (CTC) a list of streets projects proposed to receive these funds (Attachment 1). These projects must also be approved by the City Council at a regularly scheduled public meeting, along with a Resolution adopting the list of projects for Fiscal Year 2021/22 funded by SB1: The Road Repair and Accountability Act of 2017 (Attachment 2).
Attachment 1 identifies most of the streets in Sunnyvale that currently have a PCI less than 80, based upon a survey of the pavement condition in the City. This updated list represents the street segments in the City that will be considered for improvements funded by SB1 over the next few years. Specific projects will be identified and selected for construction depending upon several variables, including severity, utility conflicts, new development, preservation or restoration process selected, proximity and coordination with other projects. Target improvement of the PCI for each segment is included based upon conceptual treatment considerations. Specific treatments may differ, depending upon specific detailed field and design consideration. Approval of the list meets the requirements of the CTC for purposes of SB1 funding. Subsequently, to meet the requirement of future year SB1 funds, this list will be updated every year for Council consideration and approval.
FISCAL IMPACT
The City is expected to receive approximately $3 million annually in SB1 funds. However, the impact of the COVID-19 Pandemic has made funding uncertain. RMRA funds are based on fuel consumption, and therefore, it is likely there will be at least a short-term decline in revenue from this source over the coming year or more. The City can spend SB1 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 2021/22 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 agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety. In addition, the agenda and report are available at the Office of the City Clerk 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.
Staff
Prepared by: Tamara Davis, Senior Management Analyst
Reviewed by: Chip Taylor, Director, Public Works
Reviewed by: Tim Kirby, Director, Finance
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Master List of Proposed Street Segments
2. Draft Resolution FY 2021/22 Projects for FY 2021/22 Funded by SB 1