HomeMy WebLinkAbout01 - Resolution Amending Capital Improvement Program BudgetSEW PO CITY OF
z NEWPORT BEACH
�q�,FORN,P City Council Staff Report
August 31, 2017
Agenda Item No. 1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Carol Jacobs, Assistant City Manager - 949-644-3313,
cjacobs@newportbeachca.gov
PREPARED BY: Mark Vukojevic, Deputy Public Works Director/City Engineer
mvukojevic@newportbeachca.gov
PHONE: 949-644-3319
TITLE: Reconsider the City Council's Decision Not to Adopt a Resolution
Amending the Capital Improvement Program Budget to Include
Funding from the Road Repair and Accountability Act of 2017
(RMRA) and Budget Amendment No. 18BA-002 (Agenda Item No. 6
from August 8, 2017 City Council Meeting)
ABSTRACT -
City Council Members will be given an opportunity to make a motion to reconsider the
City Council decision on August 8, 2017 to not adopt a Resolution Amending the Capital
Improvement Program Budget to Include Funding from the Road Repair and
Accountability Act of 2017 (RMRA) and Budget Amendment No. 18BA-002; and
RECOMMENDATION:
If there is a motion for reconsideration, made by one of the City Council Members who
voted with the prevailing side, that is approved by the City Council, the City Council will
reconsider at this Special Meeting on August 31, 2017, whether to take the following
action:
(1) 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
(2) 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
1-1
Reconsider the City Council's Decision not to Adopt a Resolution Amending the Capital
Improvement Program Budget to Include Funding from the Road Repair and
Accountability Act of 2017 (RMRA) and Budget Amendment No. 18BA-002 (Agenda Item
No. 6 from August 8, 2017 City Council Meeting)
August 31, 2017
Page 2
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.
ATTACHMENTS:
Attachment A — Staff Report from August 8, 2017, Item #6
1-2
TO:
CITY OF
NEWPORT BEACH
City Council Staff Report
ATTACHMENT A
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 >7z 4 �-, �; -- - -V
Aaron C. Harp OM OVlLUit
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 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
M. i
City of Newport Beach NO. BA- 18BA-002
BUDGET AMENDMENT
2017-18 AMOUNT: 1 $481,309.00
EFFECT ON BUDGETARY FUND BALANCE:
V-1 Increase Revenue Estimates Increase in Budgetary Fund Balance
X Increase Expenditure Appropriations AND Decrease in Budgetary Fund Balance
Transfer Budget Appropriations rXI No effect on Budgetary Fund Balance
SOURCE: ONE-TIME?
from existing budget appropriations a Yes
X from additional estimated revenues No
from unappropriated fund balance
CV�1 AIJ ATI/1A1•
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 Obiect 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 -18R23 -STATE -121 -REIMBURSEMENT
EXPENDITURE APPROPRIATIONS
Description
Org Number 12101110 Gas Tax Fund SB -1 RMRA CIP
Object Number 980000 CIP Exp
Project Number 181323 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.
Date
Date
Date
6-9
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(ab_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: 1 $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
Fines Approval: Finance' bi ector
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?
B
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
Fines Approval: Finance' bi ector
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