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HomeMy WebLinkAboutStaff Report 5.B 10/02/2017Agenda Item #5.B . t DATE: October 2, 2017 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan S John' T ASCE — Director Public Works & Utilities L,Arry ZiAim r, P.E. — Deputy Director, Public Works & Utilities SUBJECT: Resolution to Approve the Proposed Project List for use of Senate Bill 1, Road Maintenance and Rehabilitation Account (RMRA) funds and Adoption of Urgency Ordinances Amending Ordinances 2610 and 2611 N. C. S. to Change Certain Appropriations for the Operations of the City of Petaluma from July 1, 2017 to June 30, 2018 and Declaring the Urgency Thereof, to Take Effect Immediately RECOMMENDATION It is recommended that the City Council adopt a Resolution to Approve the Proposed Project List for use of Senate Bill 1, Road Maintenance and Rehabilitation Account (RMRA) funds. It is also recommended that the City Council Introduce and Adopt Urgency Ordinances to amend Ordinances 2610 and 2611 to Change Certain Appropriations for the Operations of the City of Petaluma from July 1, 2017 to June 30, 2018 and Declaring the Urgency Thereof, to Take Effect Immediately. BACKGROUND On April 28, 2017, the Governor signed Senate Bill (SB) 1, which is known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system. SB 1 raises funds for this purpose by increasing the per gallon fuel excise taxes, the diesel fuel sales taxes and the vehicle registration fees and provides for inflationary adjustments to tax rates in future years. Beginning November 1, 2017, the State Controller will deposit portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. Projects eligible for funding include road maintenance and rehabilitation projects, safety projects, railroad grade separation projects, complete streets components, and traffic control devices. RMRA program funds can also be used as a match for other state or federal funds. SB emphasizes accountability and transparency in the delivery of transportation programs and establishes eligibility requirements for cities as follows: At the beginning of each fiscal year, the City must submit to the California Transportation Commission a list of proposed RMRA funded projects that are included in the capital improvement budget as adopted at a City Council meeting. The project list is not meant to limit the flexibility of the City to fund locally needed projects as long as they are consistent with the RMRA priorities and may be modified if needs change during the year. The list of projects must include a description and location, a proposed schedule for completion and the estimated useful life of the improvements. The Fiscal Year 17/18 project list is due October 16, 2017 At the end of each fiscal year, the City is required to submit an expenditure report for constructed and fully operational projects. The expenditure report is due October 1St of the subsequent year. • The City is required to sustain maintenance of effort (MOE) by spending at least the annual average of its discretionary street expenditures from the City's General Fund during the 2009 -10, 2010 -11 and 2011 -12 fiscal years for streets roads and highway purposes. There is no use -it or lose -it requirements in SB1, so multiyear projects are eligible, which allow an agency to "save up" funds from the off years. The proposed action meets Council Goal: "Plan for and implement priority capital projects as funding permits." The proposed urgency ordinances revise the adopted budget for FY 2017 -2018. The reason for the urgency is that the California Transportation Commission requires that the Proposed Project List be amended into the capital improvement budget and adopted at a City Council meeting before October 16, 2017. Budget adjustments modify previously approved budget appropriations. As such, they must be adopted by ordinance to become effective. Urgency ordinances, which require a unanimous vote of the Council members present for passage, are recommended so that these adjustments may take effect immediately. DISCUSSION The City's pavement management system is used to evaluate road conditions in the City and prioritize maintenance and rehabilitation projects based on a specific budget. The suggested streets are cross - referenced with the City's other street maintenance projects and pavement crack sealing program, development projects, and proposed PG &E and outside utility work to endeavor to assure that new or nearly new pavement will not be impacted. The proposed project list primarily focuses on arterials and collectors, which have higher traffic volumes. Projects proposed for 2017/18 are slurry seals. Slurry seal treatment is a maintenance measure to extend the life of a street after sealing cracks that rejuvenates and fills the oxidized and unraveling surface of the pavement, improving drainage, and providing a wearing course to protect the existing asphalt. Slurry seal applications are typically used on roads in reasonably 2 good condition. The streets receiving surface treatment may not require any additional maintenance for up to six years, thus reducing future maintenance costs. Below is the proposed project list of streets to receive a slurry -seal treatment using the RMRA funds for FY 17/18 (see Attachment 6 for more detail): Streets B Street I Street Grant Street Madison Street McKenzie Avenue Kresky Way Lindberg Way St Francis Drive S. McDowell Ext. Petaluma Blvd South Petaluma Blvd South I Street Arlington Drive McDowell Blvd S. Stuart Drive Saint Francis Drive Lindberg Lane Lakeville Hwy End Treatment El Rose Drive Slurry Seal Grevillia Dr. Slurry Seal Mountain View Ave Slurry Seal Lakeville Street Slurry Seal Stuart Drive Slurry Seal Lindberg Lane Slurry Seal McDowell Blvd S. Slurry Seal Lombardi Avenue Slurry Seal Bridge Slurry Seal RMRA funding for Fiscal Year 17/18 is projected to be $341,124, and is expected to ramp up to over $1,000,000 next year. It is proposed that the RMRA funds be added to the current Capital Improvement budget for the Pavement Restoration 17/18 Project (C16101823) and amended into the CIP budget. At the beginning of each fiscal year, Public Works would submit a list of streets to the California Transportation Commission to secure eligibility for RMRA funds and submit a fmal expenditure report for the work that has been completed in the last fiscal year. It is anticipated that future RMRA funds would be expended for street maintenance and rehabilitation projects. It is recommended that the City submit the proposed project list to the California Transportation Commission for use of Senate Bill 1, Road Maintenance and Rehabilitation Account (RMRA), that the project budget be amended to reflect the addition of RMRA funds, and that the City Council Introduce and Adopt Urgency Ordinances to amend Ordinances 2610 and 2611 to Change Certain Appropriations for the Operations of the City of Petaluma from July 1, 2017 to June 30, 2018 and Declaring the Urgency Thereof, to Take Effect Immediately. FINANCIAL IMPACTS The following is a breakdown of the funding for the proposed FY 17/18 Pavement Restoration Project: Funding Source Revised Project Budget RMRA Funds 17/18 $ 341,124 Original Budget 17/18(C16101823) $1,250,000 Revised Budget 17/18 (C16101823) $1,591,124 RMRA funding will increase the Special Revenue Funds budgeted revenue by $341,124 and transfers -out will increase by $341,124 upon moving the funds to the Pavement Restoration CIP project. The net financial impact to the Special Revenue funds would be zero. Similarly, the Capital Project Funds budgeted transfers -in and corresponding appropriations will each increase by $341,124. The net financial impact to the Capital Project Funds is zero. ATTACHMENTS 1. Resolution 2. Appropriations Ordinance Amendment, Special Revenue Funds 3. Appropriations Ordinance Amendment, Capital Project Funds 4. Location Map 5. Exhibit A — Detailed RMRA Budget Adjustments FY 17/18 6. Exhibit B — Detailed list of Streets al Attachment 1 RESOLUTION TO APPROVE THE PROPOSED PROJECT LIST TO BE SENT TO CALIFORNIA TRANSPORTATION COMMISSION FOR USE OF SENATE BILL 1, ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) FUNDS WHEREAS, on April 28, 2017, the Governor 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 the state highway and local streets and road system; and WHEREAS, in accordance with Streets and Highway Code, section 2034, the City shall submit to the California Transportation Commission (Commission) a list of projects proposed to be funded with these funds pursuant to an adopted City budget. All projects proposed to receive funding shall be included in a City budget that is adopted by the City Council at a regular public meeting; and WHEREAS, a proposed project list to be submitted to the Commission has been compiled for the use of $341,124 made available by SB1 for the current fiscal year and due on October 16, 2017; and WHEREAS, the RMRA funds will be combined with the current Capital Improvement budget for the Pavement Restoration 2017 -18 project (C16101823) and amended into the CIP budget. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby: 1. Approves the proposed project list for.use of RMRA funding for FY 17/18 2. Approve the revised project budget for the Pavement Restoration 17/18 016101823 project, and includes the addition of RMRA funds into the FY 17/18 budget. 3. Directs City Manager to submit the proposed project list to the California Transportation Commission 5 Attachment 2 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2610 N.C.S. TO CHANGE SPECIAL REVENUE AND TRUST FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2017 TO JUNE 30, 2018 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY: BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Ordinance No. 2610 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2017 and ending on June 30, 2018 in the amounts as set forth in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances for the fiscal year ending June 30, 2018. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. This ordinance is hereby declared to be necessary for the immediate preservation of the public peace, health and safety of the City. of Petaluma and its citizens, and shall take effect and be in force from and after its final passage by unanimous vote of the members of the City Council present at the time of its adoption. Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 6. The City Clerk is hereby directed to post /publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED and ordered posted /published this day of October, 2017, by the following vote: rel Attachment 3 AN URGENCY ORDINANCE AMENDING ORDINANCE NO. 2611 N.C.S. TO CHANGE CAPITAL PROJECTS FUNDS APPROPRIATIONS FOR THE OPERATION OF THE CITY OF PETALUMA FROM JULY 1, 2017 TO JUNE 30, 2018 AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY: BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Ordinance No. 2611 N.C.S. is hereby amended for the fiscal year beginning on July 1, 2017 and ending on June 30, 2013 in the amounts as set forth in the attached Exhibit A, incorporated herein by reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. The City Council hereby finds and determines that the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances for the fiscal year ending June 30, 2018. Section 3. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 4. This ordinance is hereby declared to be necessary for the immediate preservation of the public peace, health and safety of the City of Petaluma and its citizens, and shall take effect and be in force from and after its final passage by unanimous vote of the members of the City Council present at the time of its adoption. Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 6. The City Clerk is hereby directed to post /publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED and ordered posted /published this day of October, 2017, by the following vote: 7 .l ii Attachment 4 PAVEMENT RESTORATION 016101823 SB1 PROPOSED PROJECT LIST ti CO O cc) co 0 \ \ (1n 0 \ \ \ STREETS Date :OCTOBER 2, 2017 N City of Petaluma W E Public Works and Utilities S Department C� a a a xx W � co �04 p O f0 � L �U � U C N (6 . O O U p, C C C O ro •@ O m o a) E a) m _ > m m LL o (D MO w N C N N U) O r O N V co L O M N U_ W cl o ro o 0 U U N Q. LL W LL W H 1,4 O O U cN 0) 0 N d (D It Ui 0 O G O O O O r O O U) U V -It O O C N N N M (M O U U N - O O r O (O C N N M M 7 w N N 7 7 3 c c ry O N N 7 N f6 LL U U CL a- (o()UU vv -'Ta' C 7 m O M co V v M M E (0 � N N N C M m (MO 00 N Q. 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