REQUEST FOR CITY COUNCIL ACTION
DATE: 06/02/2021
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Title
Resolution authorizing the City Manager, or his designee, to receive and accept Senate Bill-1 Road Repair and Accountability Act of 2017 revenue for Fiscal Year 2022, for the Fiscal Year 2022 Annual Street Pavement Rehabilitation Project, No. 2021-03.
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EXECUTIVE SUMMARY:
The City Council will consider acceptance and appropriation of Senate Bill-1 (SB1), Road Repair and Accountability Act of 2017, funding in order to make improvements and provide maintenance to major and local streets within the City of Corona as part of the Fiscal Year 2022 Annual Street Maintenance and Rehabilitation project.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Adopt Resolution No. 2021-037, authorizing the City Manager, or his designee, to receive and accept Senate Bill-1 Road Repair and Accountability Act of 2017 revenue for Fiscal Year 2022 in an estimated amount of $3,285,482, for the eligible Fiscal Year 2022 Annual Street Pavement Rehabilitation Project, No. 2021-03.
b. Accept and appropriate $3,285,482, in Fiscal Year 2022, as awarded by the State, from the unappropriated Road Maintenance and Rehabilitation Account Fund to the Fiscal Year 2022 Annual Street Pavement Rehabilitation Project, No. 2021-03.
c. Authorize an estimated revenue increase of $3,285,482, in Fiscal Year 2022, in the Road Maintenance and Rehabilitation Account Fund for reimbursement by the State, per the Road Repair and Accountability Act of 2017 - Local Streets and Roads Funding Amended Annual Reporting Guidelines.
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BACKGROUND & HISTORY:
On April 28, 2017, the Governor signed Senate Bill-1 (SB1) (Beall, Chapter 5, Statutes of 2017), known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system, SB1 increases per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.
Beginning November 1, 2017, the State Controller (Controller) deposited various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. For a detailed breakdown of RMRA funding sources and the disbursement of funding, as shown on Exhibit “3.” Streets and Highways Code (SHC) Section 2032.5(a) articulates the general intent of the legislation that recipients of RMRA funding be held accountable for the efficient investment of public funds to maintain local streets and roads and are accountable to the people through performance goals that are tracked and reported.
Pursuant to SHC Section 2030(a), the objective of the Local Streets and Roads Program is to address deferred maintenance on the local streets and roads system through the prioritization and delivery of basic road maintenance and rehabilitation projects as well as critical safety projects.
Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements for the program are codified in SHC Sections 2034, 2036, 2037, and 2038 and include the following:
§ Prior to receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city or county must submit to the Commission a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be adopted by resolution by the applicable city council or county board of supervisors at a regular public meeting [SHC 2034(a)(1)].
§ The list of projects 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 [SHC 2034(a)(1)]. Further guidance regarding the scope, content and submittal process for project lists prepared by cities and counties is provided in Sections 9-10.
§ The project list does not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with RMRA priorities as outlined in SHC 2030(b) [SHC 2034(a)(1)].
§ The Commission will submit an initial report to the Controller that indicates the cities and counties that have submitted a list of projects as described in SHC 2034(a)(1) and that are therefore eligible to receive an apportionment of RMRA funds for the applicable fiscal year [SHC 2034(a)(2)].
§ The Controller, upon receipt of an initial report from the Commission, shall apportion RMRA funds to eligible cities and counties pursuant to SHC 2032(h) [SHC 2034(a)(3)].
§ The Controller will retain the monthly share of RMRA funds for cities and counties not included in the Commission’s initial report that would otherwise be apportioned and distributed to those cities and counties [SHC 2034(a)(4)(A)]. Pursuant to SHC 2034(a)(4)(B), the monthly share of RMRA funds for each of these cities and counties will be retained by the Controller for 90 days.
§ Upon receipt of a list of projects from a city or county, after the Commission has submitted its initial report to the Controller, the Commission will submit a subsequent report to the Controller that specifies all newly eligible cities and counties [SHC 2034(a)(2)].
§ After 90 days, the Controller will apportion to all newly eligible cities and counties the RMRA funds that were retained but not previously apportioned and distributed pursuant to SHC 2304(a)(4)(B).
§ Any RMRA funds held by the Controller for a city or county that still remains ineligible after 90 days will be reapportioned to all other eligible cities and counties [SHC 2034(a)(4)(C)].
§ For each fiscal year in which RMRA funds are received and expended, cities and counties must submit documentation to the Commission that details the expenditure of all RMRA funds, including a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement [SHC 2034(b)]. Further guidance regarding the scope, content, and submittal process for program expenditure reports is provided in Sections 12-13.
§ Eligible cities and counties may expend other funds on eligible projects prior to receiving an apportionment of RMRA funds from the Controller and may reimburse the original source of funds expended when a RMRA apportionment is received from the Controller [SHC 2034(c)].
§ A city or county receiving an apportionment of RMRA funds is required to sustain a maintenance of effort (MOE) by spending at least the annual average of its general fund expenditures during the 2009-10, 2010-11, and 2011-12 fiscal years for street, road, and highway purposes from the city’s or county’s general fund [SHC 2036]. Monitoring and enforcement of the maintenance of effort requirement for RMRA funds will be carried out by the Controller and is addressed in more detail in Section 15.
§ A city or county may spend its apportionment of RMRA funds on transportation priorities other than priorities outlined in SHC 2030(b) if the city or county’s average Pavement Condition Index (PCI) meets or exceeds 80 [SHC 2037].
§ By July 1, 2023, cities and counties receiving RMRA funds must follow guidelines developed by the California Workforce Development Board (Board) that address participation and investment in, or partnership with, new or existing pre-apprenticeship training programs [SHC 2038]. Further information regarding the forthcoming Board Guidelines and future Board-sponsored grant opportunities is available in Section 16.
SB1 funding provides the City of Corona with increased funding through the Local Streets and Road (LSR) program. SB1 prescribes certain uses for these funds, including:
• Road maintenance and rehabilitation
• Safety Projects
• Railroad Grade Separations
• Complete streets components (including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project)
• Traffic Control Devices
SHC Section 2030(b)(2) states that funds made available by the program may also be used to satisfy a match requirement in order to obtain state or federal funds for projects authorized by this subdivision.
Additionally, to the extent possible and cost-effective, and where feasible, eligible projects will incorporate the following elements:
• Technologies and material recycling techniques that lower greenhouse gas emissions and reduce the cost of maintaining local streets and roads through material choice and construction method.
• Systems and components in transportation infrastructure that recognize and accommodate technologies including but not limited to Zero Emission Vehicle (ZEV) fueling or charging and infrastructure-vehicles communications for transitional or fully autonomous vehicles.
• Project features to better adapt the transportation asset to withstand the negative effects of climate change and promote resiliency to impacts such as fires, floods, and sea-level rise (where appropriate given a project’s scope and risk level for asset damage due to climate change).
• Incorporate complete streets elements.
ANALYSIS:
City staff has reviewed the detailed SB1 requirements and is proposing to utilize the Fiscal Year 2022 SB1 apportionment on the Fiscal Year 2022 Annual Street Pavement Rehabilitation Project, No. 2021-03.
The Street Pavement Rehabilitation Project No. 2021-03 consists of the pavement rehabilitation of major streets including Sixth Street from the 91 Freeway Westbound on-ramp to East Grand Boulevard, Ontario Avenue from Via Pacifica to Magnolia Avenue, and the portion of South Main Street from 100th North Main Street to 1230 South Main Street located inside the Grand Boulevard “circle.” The project also consists of the pavement rehabilitation of local streets, including Areas 1 and 2 as described below.
Areas 1 and 2 listed below represent the local streets to be included for the Annual Street Maintenance and Rehabilitation Project. Area 1 which denotes the area inside the Grand Boulevard “circle,” includes West Second Street between West Grand Boulevard and South Belle Avenue, East Second Street from South Victoria Avenue to East Grand Boulevard; West and East Third Street from West Grand Boulevard to East Grand Boulevard, West Fourth Street from West Grand Boulevard to South Washburn Avenue and East Fourth Street from South Main Street to East Grand Boulevard; West Fifth Street from Crawford Street to South Main Street and East Fifth Street from South Ramona Avenue to East Grand Boulevard; West Seventh Street from West Grand Boulevard to South Belle Avenue and East Seventh Street from Ramona Avenue to East Grand Boulevard; Eighth Street from West Grand Boulevard to East Grand Boulevard; Ninth Street from West Grand Boulevard to East Grand Boulevard; Tenth Street from West Grand Boulevard to East Grand Boulevard; Saint Edwards from West Grand Boulevard to Cul de Sac, Eleventh Street from South Belle Avenue to South Victoria Avenue, Crawford Street from West Fourth Street to West Eighth Street; South Merrill Street from West Second Street to West Grand Boulevard; South Sheridan Street from West Second Street to West Grand Boulevard; South Belle Avenue from West Second Street to West Grand Boulevard; South Washburn Avenue from Stan Reynolds Parkway to West Eighth Street, from West Third Street to West Fourth Street, from West Ninth Street to West Grand Boulevard; South Ramona Avenue East Grand Boulevard to end of street; South Victoria Ave from East Second Street to East Kendall Street; South Howard Street from East Second Street to East Grand Boulevard; South Joy Street from East Second Street to East Grand Boulevard; Fuller Street from East Fourth Street to East Eighth Street; and Stan Reynolds Parkway from the Corona Public Library parking lot to South Main Street, which are all enclosed by the 91 Freeway and the “circle” boundary formed by West Grand Boulevard and East Grand Boulevard.
Area 2 is outside the circle enclosed by the boundary formed from East Grand Boulevard, Garretson Avenue, Ontario Ave, and South Main Street and includes the rehabilitation of the following streets: West Ontario Avenue from Via Pacifica to Magnolia Avenue, Palm Avenue, East Olive Street, East Kendall Street, East Francis Street, Peppertree Lane, Pamela Street from East Francis Road Street to East Crestview Street, from East Old Mill Road to Cul de Sac, from Greengate Street to East Monterey Road, and from East Mission Road to Coronado Drive, Marie Street from East Crestview Street to East Francis Street, from East Rancho Road to East Citron Street, and from East Old Mill Road to East Hacienda Drive, Dana Street, Dana Circle, Squire Place, Gay Street, East Crestview Street, East Rancho Road, East Citron Street, East Old Mill Road, East Hacienda Drive, Greengate Street, East Monterey Road, East Mission Road, Coronado Drive, East Mission Place, Melba Court, Raymor Avenue, Springfield Circle, Summerset Street, Chatham Circle, Annette Place, and Beatrice Drive, as shown in Exhibit “1.”
This project is anticipated to be completed by November 2022, and the rehabilitated roads will have an estimated useful life of fifteen (15) to twenty (20) years, as shown in Exhibit “2.” The project list and support documentation must be submitted to the Commission by July 1, 2021.
FINANCIAL IMPACT:
The Street Pavement Rehabilitation Project, No. 2021-03, is included in the proposed Fiscal Year 2022 budget with an allocation of $3,277,841. Approval of the recommended actions will result in an adjustment in Fiscal Year 2022, revising the project budget to $3,285,482 from the unappropriated RMRA Fund 221. Revenue for Fiscal Year 2022 in the RMRA Fund 221 will be adjusted to reflect the increased revenue amount of $3,285,482.
The estimated construction costs for the project is outlined as follows:
Construction $6,100,000
Design and Construction Support $300,000
Contingency $610,000
Total Construction Cost $7,010,000
Funding for the difference in cost will be included in the Proposed Fiscal Year 2022 Capital Improvements Budget, within the Measure A funds.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Receiving and accepting SB1 funds by adopting a resolution is a ministerial action, and there is no possibility that approving these agreements will have a significant effect on the environment. Therefore, no further environmental analysis is required.
PREPARED BY: BARRY GHAEMI, SENIOR ENGINEER
REVIEWED BY: SAVAT KHAMPHOU, ACTING PUBLIC WORKS DIRECTOR
Attachments:
1. Exhibit 1 - Location Map
2. Exhibit 2 - Project List
3. Exhibit 3 - Local Streets and Roads - Projected Fiscal Year 2022 Revenues
4. Exhibit 4 - Resolution No.2021-037