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Agenda Item 19.

City Council Meeting

Meeting Date:	04/02/2019
FROM:	Bill Gallardo

Subject:

Approve a Resolution to Adopt a List of Projects Funded by SB:1 – The Road Repair & Accountability Act

RECOMMENDATION

Approve a Resolution to Adopt a List of Projects Funded by SB1: The Road Repair and Accountability Act

BACKGROUND/DISCUSSION

On April 28, 2017 the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017 ("RRAA"). The RRAA increases the per gallon fuel excise taxes by 12 cents, increases diesel fuel sales taxes by 20 cents, and increases vehicle registration fees with a provision for inflationary adjustments to tax rates in future years. The main objective of the RRAA is to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road systems.

In 2017, the State Controller ("Controller") began depositing this new funding into the newly created Road Maintenance and Rehabilitation Account ("RMRA"). A percentage of this new RMRA funding has been apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code ("SHC") Section 2032(h). The City of Brea received approximately $259,000 in FY 2017-18 and $734,000 in FY 2018-19 pursuant to the SHC Section 2032 (h) formula. To date, Brea has received just under one million dollars from the Controller, which has been placed in a newly created fund entitled "Road Maintenance and Repair Act" (Fund 221).

Additionally, the RRAA emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, in order to be eligible for RMRA funding, the statute requires cities and counties to provide basic annual RMRA project reporting to the California Transportation Commission ("Commission"). These reporting requirements, as well as other fund use requirements and accounting processes, were developed within an RRAA Local and Streets and Road Funding Annual Reporting Guidelines document ("RRAA Guidelines"). On August 16, 2017, the Commission approved the final RRAA Guidelines. The Guidelines were updated in early March, 2018 and adopted by the Commission on March 21, 2018.

One of the requirements for receiving this funding is that agencies must adopt a project list by resolution and submit it to the Commission by May 1, 2019. Staff previously recommended programming the RMRA funds to two CIP projects; the Puente Street Rehabilitation Project (CIP No. 7311) and Cliffwood Industrial Park Pavement Rehabilitation (CIP No. 7317). These projects are both slated to start construction this summer. Staff has prepared a Resolution to adopt the Project List, which complies with the RRAA Guidelines. The project recommended to receive the FY 2019-20 funding amount of $743,000 is Country Hills Pavement & Water Improvements (CIP No. 7322).

FISCAL IMPACT/SUMMARY

SB 1 (RRAA) provides additional Gas Tax funds from increases to gas fuel and diesel fuel taxes, and vehicle registration fees. The main objective of this program is to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road systems.

The RRAA Guidelines require that cities/counties adopt a project list by resolution to demonstrate how they intend to use the FY 2019-20 RMRA funds and submit said resolution to the Commission by May 1, 2019. Staff has identified a project within the Draft 2019-20 CIP, Project 7322, that would be eligible for these funds. Therefore, staff recommends that the City Council consider approving a Resolution that adopts the RMRA Project List for submittal to the Commission by May 1, 2019. If approved, staff will program the RMRA funds within the 2019-20 CIP for Project 7322. There is no negative impact to the General Fund for this item.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Warren Coleman, Sr. Management Analyst
Concurrence: Michael Ho, P.E., Deputy Directory of Public Works/City Engineer and Tony Olmos, P.E., Public Works Director

Attachments
Resolution