TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Prem Kumar, City Engineer
SUBJECT:Title
Resolution No. 17-0127 Amending the Fiscal Year 2017/18 Capital Improvement Plan Budget to Appropriate $199,430 in Road Maintenance and Rehabilitation Account Revenues Created by Senate Bill 1, the Road Repair and Accountability Act of 2017 (Public Works Director Katsouleas).
ADOPT RESOLUTION NO. 17-0127 AND APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council adopt a resolution to:
1) Amend the Fiscal Year (FY) 2017/18 Capital Improvement Plan (CIP) Budget to appropriate an anticipated $199,430 in Road Maintenance and Rehabilitation Account (RMRA) revenues created by Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 to supplement existing funding for the Manhattan Avenue/Highland Avenue Improvement Project.
2) Direct the Public Works Director to submit the necessary project information to the California Transportation Commission as required by the Act.
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FISCAL IMPLICATIONS:
The City of Manhattan Beach anticipates receiving $199,430 in FY 2017/18. Estimated revenues created by Senate Bill 1 were included in the Streets and Highways Fund when the budget was adopted in June although projects utilizing the new funding had yet to be identified. An appropriation of $199,430 is now recommended for the Manhattan Avenue/Highland Avenue Improvement Project to comply with the recently released Annual Reporting Guidelines. Funding and projects in subsequent fiscal years will be presented to City Council as part of our annual reporting to the California Transportation Commission (CTC) and incorporated into the City’s CIP.
BACKGROUND:
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant transportation funding shortfalls statewide. The Annual Reporting Guidelines were published several months later in August 2017.
Beginning November 1, 2017, the State Controller (Controller) will deposit funds into the newly created RMRA and distribute them to eligible cities pursuant to Streets and Highways Code Section 2032(h) for basic road maintenance, rehabilitation and critical safety projects on the local streets and roads system. Manhattan Beach anticipates receiving $199,430 in FY 2017/18 and about $500,000 -$600,000 annually thereafter, which will supplement the City’s Gas Tax revenues, and hence future qualifying CIP projects. However, in order to receive funding, each City is required to adopt a project list at the beginning of each fiscal year and provide year end reporting on completed projects. The first project list identifying projects that will utilize the SB 1 funding is due to the CTC on October 16, 2017.
Please note that due to when the SB 1 legislation was passed earlier this year, future CIP projects using SB1 funds were not included in the adopted 5-Year (FY 2017/18 - 2021/22) CIP budget. Staff mentioned during budget adoption that it would develop a revised CIP utilizing these funds during the next CIP budget cycle.
DISCUSSION:
Staff recommends that City Council adopt a resolution authorizing this “new money” to be used to supplement funding for the previously approved Manhattan Avenue/Highland Avenue Improvement Project occurring later this year. This project includes street resurfacing, installation of new curbs and gutters where necessary and installation of new Americans with Disabilities (ADA) ramps at intersections adjacent to the street project limits. Projects limits include Highland Avenue, between 1st Street and 10th Street, and Manhattan Avenue, between 1st Street and 8th Street.
The project design is 95% completed and the estimated construction cost is approximately $1M, which is well above the original funding appropriation of $704,236 when it was approved in FY 2009/10. Once bids are received at the end of the calendar year, staff will present to City Council the actual bids received and make recommendations for additional funding, if needed, to complete the street resurfacing and curb ramp improvements.
The project is anticipated to be under construction sometime between February 2018 and May 2018. Once completed, the project is anticipated to extend the life of the pavement by approximately 15 - 20 years.
POLICY ALTERNATIVES:
Do not approve a resolution authorizing adopting the SB1 Project List and use of SB1 funds for the Manhattan Ave/Highland Ave. Improvement Project.
PROS: The funds can be utilized for other street maintenance purposes identified in the CIP at a future date.
CONS: The pavement condition along Highland Avenue and Manhattan Avenue as referenced herein is significantly deteriorated and in need of rehabilitation. Because of the deterioration level and expanded scope to include ADA ramps as required by law, the existing funding allocation is insufficient to fully fund the improvements. Further delays in performing these improvements will only result in more costly improvements that will be undertaken in the future.
PUBLIC OUTREACH/INTEREST:
No public outreach was conducted on this topic.
ENVIRONMENTAL REVIEW
The proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA). Per the CEQA Guidelines, the project is exempt pursuant to the following provision: Section 15301, Class 1(c). Based on the California Environmental Quality Act (CEQA) requirements, a Notice of Exemption will be filed for the project with the Los Angeles County Clerk’s office prior to the construction phase.
LEGAL REVIEW
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
Attachment:
1. Resolution No. 17-0127