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Home My WebLink About06 - Road Repair and Accountability Act of 2017 (RMRA)TO: CITY OF NEWPORT BEACH City Council Staff Report August 8, 2017 Agenda Item No. 6 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Jamie Copeland, Finance/Administration Manager jcopeland@newportbeachca.gov PHONE: 949-644-3335 Resolution Amending the Capital Improvement Program Budget to TITLE: Include Funding from the Road Repair and Accountability Act of 2017 (RMRA) and Budget Amendment No. 18BA-002 ABSTRACT: The City of Newport Beach receives transportation funding from the State in the form of grants or direct allocation of Motor Vehicle Fuel Tax (Gas Tax) through the Highway Users Tax Account (HUTA). The Road Repair and Accountability Act of 2017 (SB1 Beall) provides new funding for the maintenance and repair of local streets and roads through a Road Maintenance and Rehabilitation Account (RMRA). To be eligible for funding, the City must submit a proposed project list to the California Transportation Commission (CTC) by September 15, 2017, along with a resolution documenting the approval of the City's amended capital improvement budget to include the project to receive RMRA funding. Staff recommends the use of RMRA funding to supplement funding for the MacArthur Boulevard / University Drive Pavement Rehabilitation project (18R23). RECOMMENDATION: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Approve Resolution No. 2017-54, A Resolution of the City Council or the City of Newport Beach, California, Amending the Adopted Capital Improvement Program Budget for Fiscal Year 2017-18 to Include Road Maintenance and Rehabilitation Account (RMRA) Funding Under the Road Repair and Accountability Act of 2017 — Local Streets and Roads Program and Approving Budget Amendment No. 18BA-002, increasing revenue estimates by $481,309.00 in Account 12101-431127 and appropriating $481,309.00 to Account 12101110-980000-18R23 for MacArthur Boulevard/University Drive Pavement Rehabilitation project. 6-1 Resolution Amending the Capital Improvement Program Budget to Include RMRA Funding from the Road Repair and Accountability Act of 2017 and Budget Amendment August 8, 2017 Page 2 FUNDING REQUIREMENTS: The Budget Amendment records and appropriates $481,309 in revenue from the State Road Maintenance and Repair Account (RMRA) and appropriates $481,309 in proposed expenditures. The revenue will be posted to the Gas Tax-RMRA revenue account, 12101- 431127, and expenses will be posted to the MacArthur Boulevard/University Drive Pavement Rehabilitation project account in the Capital Improvements Program Budget, 12101110-980000-18R23. DISCUSSION: The state of California imposes per -gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel, and registration taxes on motor vehicles with allocations dedicated to transportation purposes. The City of Newport Beach receives transportation funding from the State in the form of grants or direct allocation of Motor Vehicle Fuel Tax (Gas Tax) through the Highway Users Tax Account (HUTA). The Road Repair and Accountability Act of 2017 (SB1 Beall) is a major new investment in California's transportation systems of about $5.2 billion per year. The Act increases per gallon fuel excise taxes, diesel fuel sales taxes and vehicle registration taxes, stabilizes fuel tax rates and provides for inflationary adjustments to rates in future years. The new law requires the California Transportation Commission to adopt performance criteria to gauge progress, incorporate program oversight and financial accountability, and support efficient use of funds. The Act more than doubles local streets and road funds allocated through the Highway Users Tax Account, allocating funds from new taxes through a new Road Maintenance and Rehabilitation Account (RMRA). RMRA receives funds from the following new taxes/fees imposed under the Road Repair and Accountability Act of 2017: Tax/Fee Type Timeframe Increase Gasoline Excise Tax November 1, 2017 12 cents /gallon Diesel Fuel Excise Tax November 1, 2017 20 cents /gallon Transportation Improvement Fee based on value of motor vehicle January 1, 2018 $25-$175 (60% will pay $50 or less) Zero Emissions Vehicle Fee July 1, 2020 $100 (model year 2020 or later) RMRA local streets and roads allocations must be used for projects that include, but are not limited to, the following: • Road maintenance and rehabilitation • Safety projects • Railroad grade separations • Traffic control devices 6-2 Resolution Amending the Capital Improvement Program Budget to Include RMRA Funding from the Road Repair and Accountability Act of 2017 and Budget Amendment August 8, 2017 Page 3 • Complete street components, "including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm - water capture projects in conjunction with any other allowable project • Match requirement to obtain state or federal funds for eligible projects. It is estimated the City of Newport Beach will receive $481,309 in fiscal year 2017-18 from RMRA funding. To be eligible for funding, the City must submit a proposed project list to the CTC by September 15, 2017, along with a resolution documenting the approval of the City's amended capital improvement budget to include the project to receive RMRA funding. Staff recommends the use of RMRA funding to supplement funding for the MacArthur Boulevard / University Drive Pavement Rehabilitation project (18R23). Attachment C is a RMRA Project List, providing details about this project. Since Newport Beach has an average Pavement Condition Index that meets or exceeds 80, Newport Beach may spend its RMRA funds on a broader range of transportation priorities. In fiscal year 2018-19, the City's share of RMRA funding is estimated to be $1,443,842. A list of projects will be developed with future CIP budget processes. In addition to annual formula funding, the City will be eligible to compete for additional funding for active transportation and complete streets projects, and other improvements in the near future. Additional information can be found at www.rebuildingca.ca.gov. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution Attachment B — RMRA Project List (FY 2017-18) Attachment C — Budget Amendment No. 18BA-002 6-3 ATTACHMENT A RESOLUTION NO. 2017-54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE ADOPTED CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2017-18 TO INCLUDE ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) FUNDING UNDER THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 — LOCAL STREETS AND ROADS PROGRAM AND APPROVING BUDGET AMENDMENT NO. 18BA-002 WHEREAS, on April 28, 2017, the Governor signed Senate Bill 1 (Beall, Chapter 5, Statutes of 2017) ("SB 1 "), known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical safety needs on State highway and local street road systems; WHEREAS, pursuant to SB 1, beginning November 1, 2017, the State Controller will deposit portions of new funding from increases to certain fuel excise and sales taxes and vehicle registration fees into the Road Maintenance and Rehabilitation Account ("RMRA") of which a percentage will be apportioned by formula to eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on local streets and roads systems; WHEREAS, the City of Newport Beach ("City") uses local, county, state, federal, and grant funding to maintain and improve the streets within its jurisdiction; WHEREAS, SB 1 emphasizes the importance of accountability and transparency in the delivery of California's transportation programs and requires cities and counties to provide to the California Transportation Commission ("CTC") annually a list of projects to be funded with RMRA funding; WHEREAS, a city or county receiving an apportionment of RMRA funds is required to sustain a maintenance of effort ("MOE") from the city's or county's general fund to ensure new revenues are used to supplement and not supplant revenues used for transportation purposes; WHEREAS, all projects proposed to receive RMRA funding must be included in a city or county budget that is adopted by the applicable city council or county board of supervisors at a regular public meeting; WHEREAS, the City Council of the City of Newport Beach ("City Council") adopted the Capital Improvement Program Budget for Fiscal Year 2017-18 at its June 13, 2017 meeting, before guidelines were issued by the CTC; and WHEREAS, the City Council is required to adopt a resolution to document the approval of the City's amended operating or capital improvement budget at a regular public meeting to include the list of projects relevant to receiving RMRA funding. By this Resolution No. 2017 - Page 2 of 3 resolution, the City Council intends to amend the adopted Capital Improvement Program Budget for Fiscal Year 2017-18 and approve a budget amendment to increase revenue estimates and appropriate such revenue to supplement the MacArthur Boulevard / University Drive Pavement Rehabilitation Project, which is proposed to receive RMRA funding. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby amend the adopted Capital Improvement Program Budget for Fiscal Year 2017-18 to include RMRA funding for basic road maintenance, rehabilitation and safety projects on the local streets and roads system. Said RMRA funds for Fiscal Year 2017-18 shall be appropriated to supplement the following project: MacArthur Boulevard from Ford Road -Bonita Canyon Drive to city limits / University Drive from Jamboree Road to SR 73 Pavement Rehabilitation (Project 18R23). Section 2: The particulars of the project are as follows: a. Anticipated Funding Sources: Measure M Fair Share ($1,300,000), and 2017-2018 RMRA funds ($481,309). b. Project Description: This project grinds and overlays sections of MacArthur Boulevard and University Drive with rubberized asphalt concrete and reconstructs deteriorated concrete improvements. C. Project Location: MacArthur Boulevard from Ford Road / Bonita Canyon Drive north to city limits at State Route 73; and University Drive from Jamboree Road to State Route 73 within the city limits of Newport Beach, California. d. Schedule: Award construction contract spring 2018, complete construction by fall 2018. e. Estimated Useful Life: City's Pavement Management Plan calculates a new useful life of 15 years minimum for this repaired roadway. Section 3: The City Council hereby approves Budget Amendment No. 18BA-002 to increase revenue estimates by Four Hundred Eighty One Thousand Three Hundred and Nine Dollars and 001100 ($481,309.00) (12101-431127) and appropriate such Four Hundred Eighty One Thousand Three Hundred and Nine Dollars and 001100 ($481,309.00) to Account No. 12101110-980000-18R23 for the MacArthur Boulevard from Ford Road -Bonita Canyon Drive to city limits / University Drive from Jamboree Road to SR 73 Pavement Rehabilitation (Project 18R23). Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 6-5 Resolution No. 2017 - Page 3 of 3 Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA°) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 8th day of August, 2017. Kevin Muldoon Mayor ATTEST: Leliani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE - Z� Z>;,. - 4 -� - Aaron C. Harp OM SVILUt1T City Attorney Attachments: Budget Amendment 18BA-002 Proposed Project MacArthur Boulevard /University Drive Pavement Rehabilitation (Project 18R23) Road Maintenance and Rehabilitation Account (RMRA) Local Streets and Roads Project List Form City of Newport Beach General Information Agency: City of Newport Beach Contact: Lucie Delorme, Management Analyst Idelorme(a)newportbeachca.gov 949-644-3394 Andy Tran, Senior Civil Engineer atran(a-newportbeachca.gov 949-644-3315 Legislative District: Senate Assembly Jurisdiction's Average Network PCI: Date/Year of Measurement: Fiscal Year: Supplementary Information 37th Senator John M. W. Moorlach 74th Assemblyman Matthew Harper 83.2 April 18, 2017 July 1, 2017 — June 30, 2018 Pavement rehabilitation projects are typically based on the Pavement Condition Index. In addition, these projects are sometimes coordinated with other improvement projects such as water and wastewater pipeline projects that tend to have significant impacts on the pavement. The benefit of rehabilitated pavement is a smoother, quieter and safer ride. It also enhances the overall aesthetics of the street. 6-7 Proposed Project A MacArthur Boulevard / University Drive Pavement Rehabilitation (Project 18R23) Description: As part of the Pavement Rehabilitation Program - Overlay, this project grinds and overlays sections of MacArthur Boulevard and University Drive with rubberized asphalt concrete. The estimated quantity of Asphalt Rubber Hot Mix (ARHM) is 8,000 tons. Reconstruction of deteriorated concrete improvements is also included. Type of Project: Location: Geolocation: Project Schedule (Proposed) Estimated Useful Life: Basic Road Maintenance and Rehabilitation MacArthur Boulevard from Ford Road / Bonita Canyon Drive north to city limits at State Route 73 University Drive from Jamboree Road to State Route 73 (Refer to map below) Design — Winter 2017/18 to Spring 2018 Construct — Summer 2018 to Fall 2018 15 years minimum City of Newport Beach BUDGET AMENDMENT 2017-18 EFFECT ON BUDGETARY FUND BALANCE: X Decrease in Budgetary Fund Balance Increase Revenue Estimates X ONE-TIME? Increase Expenditure Appropriations Yes Ffl Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance CVrIl1 AAIATIPIAI- NO. BA- 18BA-002 AMOUNT:J $481,309.00 This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations related to Road Maintenance and Rehabilitation Account funds that are now available and will be used for the MacArthur Boulevard/University Drive Pavement Rehabilitation project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object Description REVENUE ESTIMATES Amount Debit Credit Org Object Description Org Number 12101 State Gas Tax CIP Object Number 431127 Gas Tax SB1 RMRA 2030 Project Number 18R23 MacArthur Blvd/University Dr Pavement Rehab $481,309.00 Project String F-1 BR23-STATE-1 21 -REIMBURSEMENT EXPENDITURE APPROPRIATIONS Description Org Number 12101110 Gas Tax Fund SB -1 RMRA CIP Object Number 980000 CIP Exp Project Number 18R23 MacArthur Blvd/University Dr Pavement Rehab $481,309.00 Project String E-1 8R23 -CONSTRUCT -1 21 -UNASSIGNED Signed Signed Signed Financial Approval: Finance Director Administrative Approval: City Manager City Council Approval: City Clerk ' Automatic System Entry. uate uate uate • • Increase in Budgetary Fund Balance AND rXI Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance ONE-TIME? Yes Ffl No This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations related to Road Maintenance and Rehabilitation Account funds that are now available and will be used for the MacArthur Boulevard/University Drive Pavement Rehabilitation project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object Description REVENUE ESTIMATES Amount Debit Credit Org Object Description Org Number 12101 State Gas Tax CIP Object Number 431127 Gas Tax SB1 RMRA 2030 Project Number 18R23 MacArthur Blvd/University Dr Pavement Rehab $481,309.00 Project String F-1 BR23-STATE-1 21 -REIMBURSEMENT EXPENDITURE APPROPRIATIONS Description Org Number 12101110 Gas Tax Fund SB -1 RMRA CIP Object Number 980000 CIP Exp Project Number 18R23 MacArthur Blvd/University Dr Pavement Rehab $481,309.00 Project String E-1 8R23 -CONSTRUCT -1 21 -UNASSIGNED Signed Signed Signed Financial Approval: Finance Director Administrative Approval: City Manager City Council Approval: City Clerk ' Automatic System Entry. uate uate uate • • Attachment B Road Maintenance / Rehabilitation Account (RMRA) Local Streets and Roads Project List Form City of Newport Beach General Information Agency: City of Newport Beach Contact: Lucie Delorme, Management Analyst Idelorme(a)_newportbeachca.gov 949-644-3394 Andy Tran, Senior Civil Engineer atran(a-_)newportbeachca.gov 949-644-3315 Legislative District: Senate Assembly Jurisdiction's Average Network PCI Date/Year of Measurement Fiscal Year: Supplementary Information 37th Senator John M. W. Moorlach 74th Assemblyman Matthew Harper 83.2 April 18, 2017 July 1, 2017 — June 30, 2018 Pavement rehabilitation projects are typically based on the Pavement Condition Index. In addition, these projects are sometimes coordinated with other improvement projects such as water and wastewater pipeline projects that tend to have significant impacts on the pavement. The streets will be overlayed with Asphalt Rubber Hot Mix (ARHM) which contains recycled tires. Recycling tires is beneficial as it diverts material away from the landfill. ARHM is also a superior material compared to conventional asphalt concrete (no recycled tires). It rides quieter and retains its dark color longer. There are existing bike lanes and sidewalks on both sides of MacArthur Boulevard and University Drive that will be preserved as complete streets elements. The benefit of rehabilitated pavement is a smoother, quieter and safer ride. It also enhances the overall aesthetics of the street. 6-10 Proposed Project A MacArthur Boulevard / University Drive Pavement Rehabilitation (Project 18R23) Description: As part of the Pavement Rehabilitation Program - Overlay, this project grinds and overlays sections of MacArthur Boulevard and University Drive with rubberized asphalt concrete. The estimated quantity of Asphalt Rubber Hot Mix (ARHM) is 8,000 tons. Reconstruction of deteriorated concrete improvements is also included. Type of Project: Location: Geolocation: Project Schedule: (Proposed) Estimated Useful Life Basic Road Maintenance and Rehabilitation MacArthur Boulevard from Ford Road / Bonita Canyon Drive north to city limits at State Route 73 University Drive from Jamboree Road to State Route 73 (Refer to map below) IA Design — Winter 2017/18 to Spring 2018 Construct — Summer 2018 to Fall 2018 15 years minimum 6-11 ATTACHMENT C City of Newport Beach BUDGET AMENDMENT 2017-18 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- 18BA-002 AMOUNT:J $481,309.00 This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations related to Road Maintenance and Rehabilitation Account funds that are now available and will be used for the MacArthur Boulevard/University Drive Pavement Rehabilitation project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Obiect Description REVENUE ESTIMATES Orq Org Number Object Number Project Number Project String EXPENDITURE APPROPRIATIONS Org Number Object Number Project Number Project String Signed: Signed: Signed: Object Description 12101 State Gas Tax CIP 431127 Gas Tax SB1 RMRA 2030 18R23 MacArthur Blvd/University Dr Pavement Rehab F -18R23 -STATE -121 -REIMBURSEMENT Description 12101110 Gas Tax Fund SB -1 RMRA CIP 980000 CIP Exp 18R23 MacArthur Blvd/University Dr Pavement Rehab E-1 8R23 -CONSTRUCT -121 -UNASSIGNED Fin 1 Appro�al: Finance'- 5i ector aA Admini e Approval: City Mana City Council Approval: City Clerk Amount Debit Credit $481,309.00 Automatic System $481,309.00 Date -11r) -g I ) Date Date 6-12 Increase in Budgetary Fund Balance AND Decrease in Budgetary Fund Balance X No effect on Budgetary Fund Balance ONE-TIME? Yes No This budget amendment is requested to provide for the following: To increase revenue estimates and expenditure appropriations related to Road Maintenance and Rehabilitation Account funds that are now available and will be used for the MacArthur Boulevard/University Drive Pavement Rehabilitation project. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Obiect Description REVENUE ESTIMATES Orq Org Number Object Number Project Number Project String EXPENDITURE APPROPRIATIONS Org Number Object Number Project Number Project String Signed: Signed: Signed: Object Description 12101 State Gas Tax CIP 431127 Gas Tax SB1 RMRA 2030 18R23 MacArthur Blvd/University Dr Pavement Rehab F -18R23 -STATE -121 -REIMBURSEMENT Description 12101110 Gas Tax Fund SB -1 RMRA CIP 980000 CIP Exp 18R23 MacArthur Blvd/University Dr Pavement Rehab E-1 8R23 -CONSTRUCT -121 -UNASSIGNED Fin 1 Appro�al: Finance'- 5i ector aA Admini e Approval: City Mana City Council Approval: City Clerk Amount Debit Credit $481,309.00 Automatic System $481,309.00 Date -11r) -g I ) Date Date 6-12