07-16-2019 - Item 09 - Consideration of Approval of Fiscal Year of 2019-2020 Projects Funded By Senate Bill 1AGENDA ITEM NO. 9
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE:July 16, 2019
TO:Mayor and City Council
FROM:David Carmany
Interim City Manager
SUBJECT:CONSIDERATION OF APPROVAL OF FISCAL YEAR 2019-2020 PROJECTS FUNDED BY
SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2019-56 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, APPROVING A LIST OF FISCAL YEAR 2019-2020 PROJECTS
FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
DISCUSSION:
On April 28, 2017, Governor Brown signed Senate Bill 1 (SB1), which is known as the Road Repair and
Accountability Act of 2017, to address basic road maintenance, rehabilitation and critical safety needs on both State
highways and local streets. SB1 increased per gallon fuel excise taxes; increased diesel fuel sales taxes and vehicle
registration fees; and provides for inflationary adjustments to tax rates in future years.
Since November 1, 2017, the State Controller has deposited various portions of this new funding into the newly
created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding was
apportioned by a formula to eligible Cities pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic
road maintenance, rehabilitation, and critical safety projects on local streets and roads.
Cities receiving RMRA funds must comply with all relevant Federal and State laws, regulations, policies, and
procedures including submittal of a project list to the California Transportation Commission (CTC) by August 1,
2019, for proposed improvements for Fiscal Year (FY) 2019-20. In order to receive RMRA funds, the City shall
annually expend for street, road, and highway purposes an amount not less than the annual average of its
expenditures from its General Fund during the 2009-10 ($655,146), 2010-11 ($446,279), and 2011-12 ($600,020)
fiscal years. The average of this three-year period was $567,148 and is the minimum Maintenance of Effort
(MOE) required to receive SB1 funding. This amount was calculated by the State Controller Office (SCO) based
on information provided by the Finance Department during base years.
It was estimated that the City would receive funding in the amount of $1.9 million annually starting in FY 2018-19,
as part of this program to address deferred maintenance on the local streets and roads through the prioritization and
delivery of basic road maintenance and rehabilitation projects as well as critical safety projects. It is estimated that
the City will receive an estimated $1,778,994 in RMRA funding for Fiscal Year 2019-20 from SB1.
OPTIONS:
The City Council has the following options:
Approve Staff’s recommendation; or1.
Provide alternative direction.2.
Prepared by: Miguel Hernandez, Public Works Project Supervisor
Fiscal Impact
FISCAL IMPACT:
In order to receive RMRA funds, the City must meet a MOE requirement using discretionary funding from the
General Fund in the amount of $567,148. The FY 2019-20 Capital Improvement Program budget includes
$2,567,148 for the Annual Residential Streets Rehabilitation Project. The proposed budget includes $2.0 million
in Measure M and Measure R funding and General Fund allocation of $567,148 for street rehabilitation projects.
Attachments
Attachment No. 1 - Resolution No. 2019-56
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Facilities and Infrastructure