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Home My WebLink About2018-01-09; City Council; ; Adopt a Resolution creating the Road Maintenance and Rehabilitation Account Fund and appropriating Road Maintenance and Rehabilitation Account funds to the Pavement ManagCA Review {k ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: Recommended Action Jan.9,2018 Mayor and City Council Kevin Crawford, City Manager Marshall Plantz, Engineering Manager marshall.plantz@carlsbadca.gov or 760-602-2766 Adopt a Resolution creating the Road Maintenance and Rehabilitation Account Fund and appropriating Road Maintenance and Rehabilitation Account funds to the Pavement Management Program, Project No. 6001, and the Concrete Repair Program, Project No. 6013. Adopt a Resolution creating the Road Maintenance and Rehabilitation Account Fund and appropriating Road Maintenance and Rehabilitation Account funds to the Pavement Management Program, Project No. 6001, and the Concrete Repair Program, Project No; 6013. Executive Summary The State has enacted The Road Repair and Accountability Act of 2017 (581) which added a new excise tax that is collected during the purchase of gas/fuel. As a result of SB1, the California Transportation Commission (CTC) has added a new funding program known as the Local Streets and Roads Program to their portfolio of responsibilities. The Local Streets and Roads Program distributes funds from the Road Maintenance and Rehabilitation Account (RMRA) to local agencies throughout the state. To receive the RMRA funds local agencies are required to submit a project list and supporting documents on an annual basis. The supporting documents include an approved budget document such as a proposed Resolution which identifies the projects that will be funded by the RMRA funds. The Resolution associated with this Staff Report will provide the necessary support document for fiscal year (FY) 2017-18. Discussion Subsequent to the enactment of 581 the CTC published a set of procedures that local agencies are required to complete to receive funds from the Local Streets and Roads Program. The procedures require that the local agencies adopt a budget document which identifies the projects that will be funded by the RMRA funds. The city's Capital Improvement Program (CIP) includes a variety of projects that are currently funded by the Highway Users Tax Account also referred to as the State Gas Tax. To efficiently utilize the RMRA funds, staff is recommending that the program of funding for the Pavement Management Program and the Concrete Repair Program be amended. These two programs result in annual construction projects which provides the ability to consistently utilize this new stream of RMRA funding. The State Gas Tax funding that will be displaced by the appropriation of RMRA funds will be available for use on other transportat ion projects and will be appropriated during the course of adopting future CIP budgets. Fiscal Analysis The RMRA is a new source of revenue to the city. To comply with the procedures established by the CTC to receive the funds a discrete fund account will be established to identify and track the January 9, 2018 Item #6 Page 1 of 4 receipt and expenditure of RMRA funds. The estimated revenue during FY 2017-18 is $767,000. To enable the city to expend this revenue staff is requesting that the CIP budget be amended to include appropriations of RMRA funds and an equal reduction in Gas Tax funds to the Pavement Management Program, Project 6001, and the Concrete Repair Program, Project No. 6013. There will be a zero net effect on the funding for these projects. The Pavement Management Program will receive an appropriation of RMRA funds in the amount of $700,000 and a reduction in Gas Tax appropriations in the same amount. The Concrete Repair Program will receive an appropriation of RMRA funds of $67,000 and a reduction in Gas Tax appropriations in the same amount. Next Steps Once the Resolution is adopted staff will submit the necessary documents to the CTC and as a result the city will be qualified to receive RMRA funds. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065 and CEQA Guidelines section 15378(b)(4), the action of amending the adopted fund allocations included in the FY 2017-18 CIP does not constitute a "project" within the meaning of the California Environmental Quality Act (CEQA) in that it creates a government funding mechanism that does not involve any commitment to a specific project and has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. Resolution creating the Road Maintenance and Rehabilitation Account Fund and appropriating Road Maintenance and Rehabilitation Account funds to the Pavement Management Program, Project No. 6001, and the Concrete Repair Program, Project No. 6013. January 9, 2018 Item #6 Page 2 of 4 RESOLUTION NO. 2018-005 A RESOLUTION CREATING THE ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUND AND APPROPRIATING ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDS TO THE PAVEMENT MANAGEMENT PROGRAM, PROJECT NO. 6001, AND THE CONCRETE REPAIR PROGRAM, PROJECT NO 6013. Exhibit 1 WHEREAS, the City Council of the City of Carlsbad, California has determined it necessary, desirable, and in the public interest that the City of Carlsbad receive Road Maintenance and Rehabilitation Account funds from the State of California; and WHEREAS, the State of California has enacted the Road Repair and Accountability Act of 2017 and as a result the California Transportation Commission added the Local Streets and Roads Program to their portfolio of responsibilities which distributes funds from the Road Maintenance and Rehabilitation Account (RMRA) to local agencies including the City of Carlsbad; and WHEREAS, to qualify to receive RMRA funds the California Transportation Commission has established regulations that require local agencies to establish a separate account and to adopt a Resolution noting which projects will be funded with the RMRA funds; and WHEREAS, the Pavement Management Program, Project No. 6001, and the Concrete Repair Program, Project No. 6013, as included in the City of Carlsbad Capital Improvement Program (CIP), are funded with Gas Tax funds and the improvements constructed by these projects can be funded with RMRA funds; and WHEREAS, the projected revenue to the City of Carlsbad from the RMRA during fiscal year 2017- 18 is $767,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Administrative Services Director is authorized to create the Road Maintenance and Rehabilitation Account Fund. 3. That the Administrative Services Director is authorized to appropriate funds in the amount of $700,000 to the Pavement Management Program, Project No. 6001, from the Road Maintenance and Rehabilitation Account Fund and to reduce the current January 9, 2018 Item #6 Page 3 of 4 appropriation of Gas Tax funds to the Pavement Management Program, Project No. 6001, by the same amount. 4. That the Administrative Services Director is authorized to appropriate funds in the amount of $67,000 to the Concrete Repair Program, Project No. 6013, from the Road Maintenance and Rehabilitation Account Fund and to reduce the current appropriation of Gas Tax funds to the Concrete Repair Program, Project No. 6013, by the same amount. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 9th day of January, 2018, by the following vote, to wit: AYES: Hall, Blackburn, M. Schumacher, C. Schumacher, M. Packard. NOES: None. ABSENT: None. (SEAL) January 9, 2018 Item #6 Page 4 of 4