TO: Board of Supervisors
FROM: Steve Lederer, Director of Public Works
REPORT BY: Juan Arias, Deputy Director of Public Works
SUBJECT: Adoption of SB-1 Project List - 2023
RECOMMENDATION
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Director of Public Works requests adoption of a Resolution approving the Fiscal Year 2023-2024 list of streets and roads projects and authorization to submit the list of projects to the California Transportation Commission (CTC), which will qualify Napa County to receive local streets and roads funding in accordance with the Road Repair and Accountability Act of 2017 (SB 1).
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EXECUTIVE SUMMARY
In order to be eligible for SB1 funding in FY 2023-24, counties must provide evidence of eligibility to the California Transportation Commission (CTC), on or before July 1, as well as an adopted resolution including a list of projects planned to be funded in FY 2023-24 with Road Maintenance and Rehabilitation Account (RMRA) funds. The required resolution and list of projects is attached.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Where is it budgeted? |
Revenues will be received in Fund 2440, Org 1220052, non-operating special revenue fund for SB1. Funds are transferred to Roads Capital Improvement project budgets as needed. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This source of funding will assist the County in maintaining the County road system. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
Revenue will continue to be received in Fund 2440, Org 1220052, non-operating special revenue fund for SB1. |
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Consequences if not approved: |
The County would not receive this source of funding |
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County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Consideration and possible adoption of a Categorical Exemption Class 1: It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 1 (Existing Facilities) which may be found in the guidelines for the implementation of the California Environmental Quality Act at 14 CCR §15301; see also Napa County’s Local Procedures for Implementing the California Environmental Quality Act, Appendix B.]
BACKGROUND AND DISCUSSION
On April 28, 2017, the Governor signed Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017. SB 1 increased per gallon fuel excise taxes; increased diesel fuel sales taxes and vehicle registration fees; and provided for inflationary adjustments to tax rates in future years. Beginning November 1, 2017, the State Controller (Controller) deposited various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new SB 1 funding is being apportioned by formula to eligible cities and counties 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.
Prior to receiving an apportionment of funds under the program pursuant to paragraph (2) of subdivision (h) of Section 2032 from the Controller, an eligible city or county shall submit to the California Transportation Commission (CTC) a resolution providing a list of projects proposed to be funded with SB 1 RMRA funds. The project list shall be adopted by resolution at a regularly scheduled Board meeting, with such meeting being the forum for any public input on the list.
The list of projects proposed to be funded with SB 1 RMRA funds shall include:
• A description of the project;
• The location of each proposed project;
• A proposed schedule for the projects completion; and
• The estimated useful life of the improvement.
The project list with the above information is included as part of the resolution recommended to be approved as part of this item. The project list shall not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with the Road Repair and Accountability Act of 2017 (Act). Just as with the Highway Users Trust Account (HUTA), funding is not guaranteed at a specific level, but is a function of actual revenues collected by the Act's various taxes.
The County received:
$951,478 in Fiscal Year 2017-18,
$3,002,310 in Fiscal Year 2018-19,
$2,608,430.16 in Fiscal Year 2019-20,
$2,972,129 in Fiscal Year 2020-21,
$3,146,545 in Fiscal Year 2021-2022, and
estimated $3,183,326 in Fiscal Year 2022-23.
The State Controller's office projects the County of Napa will receive $3,867,463 in Fiscal Year 2023-24.
The proposed projects, and some notes on each, are as follows:
|
Project Name |
Project Description |
Location of Project |
Schedule for Completion |
Estimate Useful Life of Improvement & Current PCI |
Estimated Project Cost |
|
Guardrail Repairs/ Replacement |
Repair and replace guardrail |
Various locations (Attachment A) |
2024 |
20+ years |
$500,000 |
|
Berryessa Estates Resurfacing |
Road resurfacing |
Various locations (Attachment B) |
2024 |
20+ years |
$2,500,000 |
|
Chiles Pope Creek Bank Repair |
Bank repair and guardrails |
Chiles Pope Valley Road |
2024 |
20+ years |
$700,000 |
|
Annual Striping |
Restripe various County roads |
Various locations |
2024 |
Five years |
$250,000 |
|
HSIP 11 |
Guardrails and Silverado Trail improvements |
Silverado Trail |
2024 |
20+ years |
$350,000 |
The Act also requires that we submit an annual report, by October 1 of each year, regarding projects that are completed using SB 1 funds. Upon receipt, SB 1 revenue is placed in a separate account. Money is moved from the designated account into eligible projects as it becomes available, and work will only occur when the project is funded. This process ensures that projects are not started until adequate funds (and cash flow) are available and appropriated to start (and ultimately finish) a phase of the project.
SB 1 has a Maintenance of Effort (MOE) requirement, meaning that the County must continue to spend General Fund money at a level consistent with our expenditures in Fiscal Years 2009-10, 2010-11, and 2011-12. This is done to ensure that the County is not using SB 1 funds to supplant existing investments in roads. The County's calculated MOE is $1,145,060. This amount is lower than our estimated MOE requirement under Measure T and is well below the Board's current General Fund contribution of $3,733,860 to roads.
Projects chosen and included in the attached Resolution were based on the ability to start this calendar year or next, and intentionally avoided complicated permitting and FEMA related projects. Our pavement management system was used to identify those projects that were highest priority and provided the best value for the dollars to be spent. These projects are only a small subset of the various roads projects the County is undertaking in the coming year. Those other projects are funded by a variety of other funding sources, such as Measure T, PG&E settlement funds, the General Fund, FHWA, and FEMA funding.