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CC - Adoption of a Resolution Incorporating the Higuera Street Bridge Replacement Project on the List of City Projects to be Funded by SB1 (The Road Repair and Accountability Act of 2017).
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Meeting Date: June 28, 2021
Contact Person/Dept: Mate Gaspar/Public Works
Phone Number: 310-253-5602
Fiscal Impact: Yes [x] No [] General Fund: Yes [] No [x]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [x] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/23/2021);
Department Approval: Charles D. Herbertson, Public Works Director/City Engineer (06/16/2021)
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RECOMMENDATION
Staff recommends the City Council adopt a Resolution incorporating Higuera Street Bridge Replacement Project, on the list of City projects to be funded by SB1 (The Road Repair and Accountability Act of 2017).
BACKGROUND/DISCUSSION
In April 2017 Senate Bill (SB) 1 (The Road Repair and Accountability Act) was signed into California law. This measure was in response to California’s significant funding shortfall to maintain the State’s multimodal transportation network. SB 1 increases several taxes and fees to raise over $5 billion annually in new transportation revenues. Moreover, SB 1 makes adjustments for inflation every year so that the purchasing power of the revenues does not diminish as it has in the past with other gas tax subvention funds. SB 1 prioritizes funding towards maintenance and rehabilitation and safety improvements on state highways, local streets and roads, and bridges and towards improvement of the state’s trade corridors, transit, and active transportation facilities. A Proposition to repeal SB1 was defeated in the November 2018 election.
The California Transportation Commission (CTC) is charged with oversight of several SB 1-funded programs, including reporting on the use of local streets and roads funding. A vast majority of the new revenues for cities will come out of the newly created Road Maintenance and Rehabilitation Account (RMRA). Cities receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures.
Prior to receiving RMRA funds in a fiscal year, a city must submit to the CTC a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be adopted by resolution of the city council at a regular public meeting. 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.
Also, a city 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 a city’s general fund.
Eligible projects include:
§ 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
§ Other (match funds for eligible project advancement)
§ Pursuant to Article XIX Section 2(a) of the constitution: “The research, planning, construction, improvement, maintenance, and operation of public streets and highways (and their related public facilities for nonmotorized traffic), including the mitigation of their environmental effects, the payment for property taken or damaged for such purposes, and the administrative costs necessarily incurred in the foregoing purposes.”
The Higuera Street Bridge Replacement Project is eligible to receive SB1 funds since it is a rehabilitation project and it includes bicyclist and pedestrian safety components.
FISCAL ANALYSIS
According to the May 2021 California Department of Finance, Culver City is projected to receive 1,804,893 of gas tax funds for Fiscal Year 2021/2022. Of this amount, the RMRA portion is projected to be $785,169.
As mentioned in the report, the City 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 general fund. The annual average for Culver City is $3,868,626 and this is the minimum required MOE in order to receive the RMRA gas tax funds. Current eligible expenditures are well above this amount, and staff does not foresee any issue with meeting the MOE requirement.
ATTACHMENTS
1. Proposed Resolution
MOTION
That the City Council
Adopt a Resolution incorporating the Higuera Street Bridge Replacement Project, on the list of City projects to be funded by SB1 (The Road Repair and Accountability Act).