REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution to Adopt a List of Projects Funded by Senate Bill 1, The Road Repair and Accountability Act, for Fiscal Year 2022-23
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
In April 2017, Senate Bill 1 (SB 1) or the Road Repair and Accountability Act of 2017 was signed into law. SB 1 increased per gallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees to address basic road maintenance and rehabilitation. SB 1 directs the State Controller to allocate 50 percent of the tax revenues to the State and 50 percent to cities and counties. The amount received by the City of Santa Clara and other eligible cities is determined by a formula.
Per the SB 1 statutes, funding should be prioritized for basic road maintenance, rehabilitation, and critical safety projects. The Pavement Condition Index (PCI) is a numerical index between zero and 100 which is used to indicate the general condition of pavement, with zero considered as ‘Failed’ and 100 considered as ‘Brand New.’ A city may spend its portion of SB 1 funds on transportation priorities other than road maintenance and critical safety projects if the city’s average PCI meets or exceeds 80. As of April 29, 2022, the City of Santa Clara’s current average PCI is 74.
In order to receive funding, the City must follow the Local Streets and Roads Funding Program Reporting Guidelines adopted by the California Transportation Commission. The guidelines require the City to submit a project list annually that identifies proposed projects (“Project List”).
This will be the sixth year the City will receive SB 1 funding and Council previously approved SB 1 Project Lists starting in FY 2017-18. Maintenance for streets identified under the previous Project Lists has been completed, and the projects listed for 2021-22 are planned to be completed in summer 2022. The streets listed for the FY 2022-23 Project List considered in this report utilizing SB 1 funding are planned to be completed under a cooperative agreement with the City of San Jose per City Council approval at the April 5, 2022 meeting.
DISCUSSION
The City must now adopt a Project List for FY 2022-23 by Resolution and submit it in order to be eligible to receive FY 2022-23 SB 1 funds. The Resolution (Attachment 1) and proposed Project List (Attachment 2) identify streets to be maintained and rehabilitated utilizing SB 1 funding. The streets listed will be resurfaced in order to extend the pavement surface life, improve ride quality, and improve the overall pavement condition of the City street network.
The SB 1 Guidelines allow flexibility for the City to fund projects in accordance with local needs and priorities. The Project List can be revised at a later date should the City’s needs and priorities change. Additionally, the City can fund projects that were not included in the Project List in any given year and can also choose to not fund projects that were on the list without amending or resubmitting the Project List. The Project List is developed based on information from the City’s Pavement Management System, which prioritizes pavement projects to provide the most cost-effective maintenance program based on street conditions, remaining pavement service life, and available funds.
Adoption of the Resolution will allow the City to remain eligible to receive FY 2022-23 funds. If the Resolution is not adopted, the funds may be forfeited and distributed to other eligible agencies.
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. Any project on the list that moves forward to construction will be evaluated in accordance with CEQA as part of the approval process. It is expected that the CEQA determination for pavement maintenance projects will be a categorical exemption pursuant to CEQA Guidelines section 15301 “Existing Facilities” as the activity consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agencies determination.
FISCAL IMPACT
Based upon revenue estimates published by the League of California Cities in January 2022, it is projected that the City could receive up to $2.98 million in SB 1 funds in FY 2022-23. Appropriation of SB 1 revenues of $2.5 million will be considered by Council through the FY 2022-23 and 2023-24 Biennial Capital Improvement Program Budget processes and budget amendments may be brought forward in the future should the actual SB 1 revenues received from the State increase or decrease from the budgeted amount.
COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a Resolution to Adopt a List of Projects Funded by Senate Bill 1, The Road Repair and Accountability Act, for Fiscal Year 2022-23.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Resolution
2. Proposed Project List for FY 2022-23