Title
Adoption of Resolution Amending the Fiscal Year 2018-19 Capital Projects Fund Budget to Consolidate All Senate Bill (SB) 1 Road Maintenance and Rehabilitation Account (RMRA) Funding Budget Commitments to the Pavement Management Project (91810) and Swap an Equivalent Amount of Measure B Local Streets and Roads Funding from the Pavement Management Project (91810) to the Sidewalk Maintenance Project (91601) and the Traffic Signals, Calming, and Systems Project (91812). (Public Works 310.05)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The proposed resolution consolidates all Road Maintenance and Rehabilitation Account (RMRA) funding into the Pavement Management project for ease of annual reporting to the California Transportation Commission (CTC). The RMRA funding previously committed to sidewalk maintenance and traffic signals and systems is being swapped with Measure B, Local Streets and Roads funding. There is no change to the overall budget or scope of work for the three capital projects affected.
BACKGROUND
The Road Repair and Accountability Act of 2017, more commonly known as Senate Bill 1 (SB-1) significantly increased gas tax revenues with the aim of repairing California’s roadways. Significant components of the bill include a maintenance of effort requirement and annual reporting requirements. The maintenance of effort requirement is to ensure that this new source of funding is additive to and does not supplant prior roadway funding sources. The annual reporting to the CTC demonstrates to the public the amount of money spent and names the streets maintained with the new gas taxes.
DISCUSSION
SB-1 was passed into law on April 6, 2017 at a time when the 2017-19 Capital Budget was well into development. Staff was able to incorporate RMRA Local Streets and Roads Program revenue estimates developed by the State into the Capital Budget approved in June 2017. This funding was committed to three projects eligible for existing (non SB-1) gas tax funding: 1) Pavement Management, CIP 91810, 2) Sidewalk Maintenance, CIP 91601, and 3) Traffic Signals, Calming and Systems, CIP 91812.
Subsequent instruction provided to Cities by the CTC in the fall of 2017 clarified the funding expectations and reporting requirements for SB-1 revenue. At that time, staff created a new fund to separate the traditional gas tax or Highway Users Tax Account (HUTA) from the new RMRA funding sources. The CTC further clarified that RMRA funding was intended to address unfunded road maintenance and that funds could be used for other roadway related uses only after an agency’s network Pavement Condition Index (PCI) was 80 or higher. Alameda’s current network PCI is 72.
The proposed resolution swaps fund sources between RMRA funding and Measure B funding for the three projects noted above without changing the overall budget amount or scope of work. Consolidating all RMRA funding into the Pavement Management project is consistent with the intent of SB-1, instruction provided by the CTC, and simplifies the City’s annual reporting requirements.
ALTERNATIVES
Staff recommends swapping RMRA and Measure B funding sources to consolidate all RMRA funding into the Pavement Management project.
City Council can take no action. This would require reviewing eligible projects for this funding. .
FINANCIAL IMPACT
The budget for the Pavement Management project (91810), Sidewalk Maintenance project (91601) and Traffic Signals, Calming and Systems project (91812) is included in the Capital Projects Fund (Fund 310) and is managed by the Public Works Department. As stated in the Discussion Section above the proposed action swaps funding sources between RMRA funding and Measure B funding for the three projects without changing the overall budget amount or scope of work. Table below shows the funding sources reallocation by project.
|
Fund/Account |
Project No. |
Amount |
|
Capital Improvement Fund (310) |
|
|
|
Transfer In - RMRA |
91810 |
$741,830 |
|
Transfer In - Measure B |
91810 |
$(741,830) |
|
Transfer In - RMRA |
91812 |
$(216,830) |
|
Transfer In - Measure B |
91812 |
$216,830 |
|
Transfer In - RMRA |
91601 |
$(525,000) |
|
Transfer In - Measure B |
91601 |
$525,000 |
ENVIRONMENTAL REVIEW
All projects were approved with the 2017-19 Capital Budget. The swapping of funding sources will have no environmental impact.
CLIMATE IMPACTS
All projects were approved with the 2017-19 Capital Budget. The swapping of funding sources will have no climate impact.
RECOMMENDATION
Adopt a resolution amending the Fiscal Year 2018-19 Capital Projects Fund Budget to consolidate all SB-1 Road Maintenance and Rehabilitation Account funding budget commitments to the Pavement Management project (91810) and swap an equivalent amount of Measure B Local Streets and Roads funding from Pavement Management project (91810) to the Sidewalk Maintenance project (91601) and the Traffic Signals, Calming, and Systems project (91812).
CITY MANAGER RECOMMENDATION
The City Manager recommends approval.
Respectfully submitted,
Liam Garland, Public Works Director
By,
Scott Wikstrom, City Engineer
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Proposed Resolution
cc: Eric Levitt, City Manager