To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Omar Flores, Management Analyst II
TITLE:
Title
SB1 Road Repair and Accountability Act - Project List Application FY2024-25
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution adopting a list of projects for Fiscal Year 2024-25 funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
On April 28, 2017, the California State Governor signed Senate Bill 1 (“SB 1”) which is known as the Road Repair and Accountability Act of 2017. SB 1 establishes the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the state highway system and on local street and road systems, and the Road Maintenance and Rehabilitation Account (RMRA) for the deposit of various funds for the program. A percentage of RMRA funding is apportioned by formula to eligible cities and counties and can be used for projects that include, but are not limited to, road maintenance and rehabilitation, safety projects, railroad grade separations, complete street components, and traffic control devices. The funding from SB 1 comes from a voter-approved increase to the gasoline excise tax.
Prior to receiving the City’s annual apportionment of SB 1 funding, the City must submit a project list to the California Transportation Commission (Commission) for which the City plans to use SB 1 funds. The purpose of this item is to adopt the project list for which the City plans to use SB1 funds in FY25. The detailed FY25 Project List is provided in Exhibit A of the attached Resolution. The project expenses below reflect the adopted City of Napa Operating & Capital Budget for FY25 Budget.
SB 1 Funds Allocated in FY25:
Road Maintenance $ 1,700,000
Total $ 1,700,000
FY25 Funding will be allocated to the complete streets concrete work and the street resurfacing work in the Stonehouse/Adrian, Westview North, La Homa, Las Flores, Jackson and Fairview areas and will be performed by the City’s forces and will include the repair and construction of concrete curb, gutter and sidewalks, and paving operations for street resurfacing. SB1 funding for these areas will be specifically for road maintenance and resurfacing. The detailed FY25 Project List is provided in Exhibit A of the attached Resolution.
In addition to FY25 Road Maintenance, two capital projects will be expending SB1 funds during FY25: Traffic Calming and Safety Improvements at Trail Crossings (ST21PW06) and Westwood Sidewalks (SW20PW02). Both capital projects received funding allocations in prior fiscal years and will be expending existing project budget balances; no new FY25 SB1 funding allocation is budgeted.
FINANCIAL IMPACTS:
The proposed project list includes the use of FY25 projected revenues and SB 1/RMRA Program fund balance. The proposed FY25 SB 1 Project List is consistent with the City’s FY25 Operating and Capital Budget adopted on June 4, 2024.
Estimated FY25 SB1 Program Revenues:
$1,986,479 Estimated FY25 SB 1 (20230200-44327)
$ 64,462 SB -1 Undesignated fund balance (202-35999) (202-33999)
$2,050,941 Total Estimated Available Funds for FY25
Proposed SB 1 FY25 projects:
$1,700,000 Road Maintenance
$1,700,000 Total Expenditure Projection for FY25
The remaining, unprogrammed revenues will be used to replenish the SB1/RMRA Fund’s reserves. Following capital budget best practices and consistent with the City Council’s Fiscal Policy for the General Fund CIP, the fund maintains at least 10% of its annual funding allocation in reserves. This is an elastic funding source based on Gas Tax sales often resulting in a significant difference between projected revenues and actuals each year. Maintaining a healthy fund balance is important to keeping the fund’s planned programs and projects funded throughout the year. For example, fund balance is used if revenue actuals are lower than estimated at time of budgeting and/or if project or program cost adjustments are needed mid-year. Fund balances are reviewed annually as part of the City’s Capital Improvement Planning and budget process.
CEQA:
The Public Works Director recommends that the City Council determine that the Projects described herein are exempt from CEQA pursuant to CEQA Guidelines Section 15301, which exempts the repair, maintenance or minor alteration of existing facilities involving no or negligible expansion of use beyond that which presently exists.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - FY25 Project List
NOTIFICATION:
None.