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HomeMy WebLinkAboutStaff Report 3.B 09/17/2018lum DATE: September 17, 2018 TO: Honorable Mayor and Members of the City Council through the City Manager FROM Dan Stj i .ASCE — Director, Public Works and Utilities Jared Hall — Transit Manager, Public Works and Utilities SUBJECT: Resolution Approving a Project List for Submittal to the California State of Good Repair Program RECOMMENDATION It is recommended that the City Council adopt a Resolution Approving a Project List for Submittal to the California State of Good Repair Program. BACKGROUND On April 28, 2017, Governor Brown signed Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017. SB 1 will provide over $50 billion in new transportation funding over the next decade, including approximately $105 million annually to transit operators in California for eligible transit maintenance, rehabilitation, and capital projects. This investment in public transit is referred to as the State of Good Repair (SGR) Program. These funds will be allocated under the State Transit Assistance (STA) Program formula to eligible agencies. DISCUSSION The City is estimated to receive $6,194 in STA SGR funds in FY 18/19. This amount is based on the amount of revenue generated by Petaluma Transit in FY 17/18. The total Bay Area estimate for these funds is over $28 million. All regional entities and transit operators who expect to receive SGR funds are required to submit a project list by September 1, 2018, with a supporting Board Resolution by October 15, 2018 in order to be eligible to receive funding. SGR funds are available for capital projects that maintain the public transit system in a state of good repair. PUC section 99212.1 (c) lists the projects eligible for SGR funding, including: • Transit capital projects or services to maintain or repair a transit operator's existing transit vehicle fleet or transit facilities, including the rehabilitation or modernization of the existing vehicles or facilities. The design, acquisition, and construction of new vehicles or facilities that improve existing transit services. Transit services that complement local efforts for repair and improvement of local transportation infrastructure. Due to the small amount of funding anticipated for FY 18/19, Caltrans has advised the City to use it for "preventative maintenance" as part of the annual operating budget. Eligible agencies who do not submit a project list could risk losing their apportionment for that specific fiscal year to another operator within the region. It is recommended that the Council approves the subject resolution authorizing the City Manager to submit the requisite project list and execute required documents to allow City participation in the program. The proposed action meets Council Goal: "Maintain Fiscal Sustainability". FINANCIAL IMPACTS These funds will be budgeted, received, and expended in FY 19/20 on eligible expenses. ATTACHMENTS 1. Resolution 2 Attachment 1 RESOLUTION APPROVING A PROJECT LIST FOR SUBMITTAL TO THE CALIFORNIA STATE OF GOOD REPAIR PROGRAM WHEREAS, the City of Petaluma is an eligible project sponsor and may receive State Transit Assistance funding from the State of Good Repair (SGR) account presently and in future cycles for transit projects; and WHEREAS, the statutes related to state -funded transit projects require a local or regional implementing agency to abide by various regulations in order to receive SGR funds; and WHEREAS, California Senate Bill 1 (2017) named the Department of Transportation as the administrative agency for the SGR; and WHEREAS, the Department of Transportation has developed guidelines for the purpose of administering and distributing SGR funds to eligible project sponsors (local agencies); and WHEREAS, in February 2018, the City of Petaluma authorized the City Manager to execute all required documents of the SGR program, the Certification and Assurances document, and any Amendments thereto with the California Department of Transportation; and WHEREAS, the City of Petaluma has been allocated $6,194 in State of Good Repair funds for FY 18/19; and WHEREAS, the City of Petaluma wishes to submit a Project List in order to apply these funds towards Preventative Maintenance on the fixed route buses. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma, as the fund recipient, agrees to comply with all conditions and requirements set forth in the Certification and Assurances document and applicable statutes, regulations and guidelines for all SGR funded transit projects. BE IT FURTHER RESOLVED that the City Manager is authorized to execute all required documents of the SGR program, including the Project List, and any Amendments thereto with the California Department of Transportation. 3