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Home My WebLink About08 - CC-8 - Resolution Amending 2017-18 Budget to In - 9/19/2017CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 19, 2017 ITEM NUMBER: CC -8 SUBJECT: RESOLUTION AMENDING THE 2017-18 BUDGET TO INCORPORATE A LIST OF PROJECTS FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT DATE: SEPTEMBER 7, 2017 FROM: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION PRESENTATION BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR FOR FURTHER INFORMATION CONTACT: BALTAZAR MEJIA, CITY ENGINEER (714) 754-5335 RECOMMENDATIONS: 1. Adopt Resolution (Attachment 1) amending the Fiscal Year 2017-18 Budget to incorporate a list of projects proposed to be funded with Road Maintenance and Rehabilitation Account (RMRA) revenues. 2. Approve Budget Adjustment No. 18-009 (Attachment 2). 3. Amend the Fiscal Year 2017-18 Capital Improvement Budget to include revised B-12 forms (Attachment 3). BACKGROUND: Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi -modal transportation funding shortfalls statewide. SB 1 increases several taxes and fees to raise over $5 billion annually in new transportation revenues. Moreover, SB 1 makes adjustments for inflation every year so that the purchasing power of the revenues does not diminish as it has historically. Beginning in November, portions of SB 1 revenues will be deposited into the RMRA and subsequently made available to eligible cities and counties, which must comply with RMRA funding requirements as determined by the California Transportation Commission (CTC). SB 1 prioritizes this funding towards critical maintenance, rehabilitation, and safety improvements on state highways, local streets and roads, and bridges and to improve the state's trade corridors, transit, and active transportation facilities. As codified in the Streets and Highways Code (SHC), 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 • 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. Since the City of Costa Mesa has an average Pavement Condition Index (PCI) that meets or exceeds 80, the City may spend its apportioned RMRA funds on a broader range of priorities related to transportation, such as complete streets components and traffic control devices. As part of SB 1's various accountability and transparency measures, the City will annually submit a proposed project list to the CTC and subsequently provide year end updates on the progress of previously proposed projects. ANALYSIS: It is estimated the City will receive approximately $650,000 in Fiscal Year 2017-18 from RMRA funding. To be eligible to receive this funding, the City must submit a proposed project list to the CTC by October 16, 2017, along with a resolution documenting the City Council's approval of the City's amended Capital Improvement Program Budget reflecting the projects with specific RMRA funding allocations. City staff, in anticipation of this additional $650,000 in RMRA revenue, had already included the additional gas tax revenues in the adopted FY 2017-18 Budget approved by City Council on June 20, 2017. This additional gas tax was allocated to 2 (two) new street improvement projects: Newport Boulevard Frontage Road (northbound) — 15th Street to 17th Street and 23rd Street from Elden Avenue to Waterman Way (included as part of the Citywide Street Improvements Project). In order to meet SB 1's eligibility and reporting requirements, the $650,000 of RMRA funding must be specifically differentiated from the Highway Users Tax Account (HUTA) funding. Each project utilizing RMRA funds is required to include the following information: project description, specific location, proposed schedule for its completion, and the estimated useful life. Consequently, staff revised the applicable 2017-18 Capital Improvement Program Budget forms (Attachment 3) to meet all requirements. Since the CTC strongly discouraged proposed RMRA funded projects to be listed as "citywide", the 23rd Street from Elden Avenue to Waterman Way Street Improvement Project was removed from the Citywide Street Improvements Project and is now an individual project. ALTERNATIVES CONSIDERED: One alternative is to not adopt the Resolution. However, this alternative is not recommended as it would result in the City not receiving RMRA funding for future road maintenance and rehabilitation. FISCAL REVIEW: Prior to City Council's adoption of the 2017-18 Operating and Capital Improvement Program Budget, staff received projected Gas Tax Fund revenues, which included approximations for both HUTA and the newly established RMRA. Consequently, portions of this newly established RMRA were allocated to 2 (two) proposed Capital Improvement Projects within the Gas Tax Fund in the adopted FY 2017- 18 Capital Improvement Program Budget. These street improvement projects included Newport Boulevard Frontage Road (northbound) — 15th Street to 17th Street and 23rd Street from Elden Avenue to Waterman Way, which was included as part of the Citywide Street Improvements Project. Pursuant to the CTC's August 2017 Final Annual Reporting Guidelines for 2017 Local Streets and Roads Funding, staff recommends amending the Fiscal Year 2017-18 Capital Improvement Program Budget to identify projects with RMRA funding. The attached Budget Adjustment No. 18-009 reflects the $650,000 of anticipated RMRA revenue, with specific allocations for the 2 (two) new projects. Since the 23rd Street from Elden Avenue to Waterman Way Street Improvement Project was previously included under the Citywide Street Improvements Project, the budget adjustment reflects a decrease to the Citywide Street Improvements Project Budget. 2 FY 2017-18 Proposed RMRA Funded Projects Program/Project Name Gas Tax (RMRA) Fund Newport Blvd. Frontage Rd. (N/B) — 15th St. to 17th St. $350,000.00 23rd Street from Elden Ave. to Waterman Way $300,000.00 Total RMRA Funding $650,000.00 LEGAL REVIEW: The City Attorney has reviewed and approved the Resolution as to form. CONCLUSION: It is recommended that the City Council adopt the attached Resolution to amend the Fiscal Year 2017-18 Budget to incorporate a list of projects proposed to be funded with Road Maintenance and Rehabilitation Account revenues. RAJA SETHURAMAN Public Services Director STEPHEN DUNIVENT Interim Finance Director BALTAZAR MEJIA City Engineer AMBER HASTON Management Analyst ATTACHMENTS: 1. Proposed Resolution and FY 2017-18 List of Projects 2. Budget Adjustment No. 18-009 3. Revised B -12's for FY 2017-18 Capital Improvement Program Budget DISTRIBUTION: City Manager Assistant City Manager City Attorney Interim Finance Director City Clerk 3 ATTACHMENTI RESOLUTION NO. 17 - RESOLUTION AMENDING THE 2017-18 BUDGET TO INCORPORATE A LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi -modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Costa Mesa must include a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and WHEREAS, the City of Costa Mesa, will receive an estimated $650,000 in RMRA funding in Fiscal Year 2017-18 from SB 1; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community's priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate local streets and roads and provide resources for similar projects in the future; and WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in an overall good condition, with some streets identified in poor condition, and this revenue will help us increase the quality of such streets and assist in bringing our citywide streets and roads into an excellent condition; and WHEREAS, if the Legislature and Governor failed to act, a few city streets would have continued to deteriorate, having some negative impacts on our community; and WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus station, people are dependent upon a safe, reliable local transportation network; and WHEREAS, modernizing the local street and road system provides well -paying construction jobs and boosts local economies; and WHEREAS, the local street and road system is also critical for farm to market needs, interconnectivity, multimodal needs, and commerce; and WHEREAS, police, fire, and emergency medical services all need safe reliable roads to react quickly to emergency calls and a few minutes of delay can be a matter of life and death; and WHEREAS, maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals; and WHEREAS, restoring roads before they fail also reduces construction time, which results in less air pollution from heavy equipment and less water pollution from site run-off; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure, with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co -benefits statewide. NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Costa Mesa, State of California, as follows: 1. The foregoing recitals are true and correct. 2. The City of Costa Mesa Capital Improvement Program budget for Fiscal Year 2017-18 is amended to incorporate the following list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues: FY 2017-18 List of Projects Project Title: Newport Blvd. Frontage Rd. (N/B) — 15th St. to 17th St. Project Location: Newport Blvd. Frontage Rd. (N/B) — 15th St. to 17th St. Estimated Useful Project Life: 10 years Proposed Schedule for FY 2017-18 Completion: Project Description: This project will provide major rehabilitation to City streets which are in immediate need for improvement. The project is implemented in accordance with the Pavement Management System to meet the City Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. These RMRA funds will be used towards rehabilitation of Newport Boulevard Frontage Road (northbound) from 15th Street to 17th Street. Project Title: 23rd Street from Elden Ave. to Waterman Wy. Project Location: 23rd Street from Elden Ave. to Waterman Wy. Estimated Useful Project Life: 10 years Proposed Schedule for FY 2017-18 Completion: Project Description: This project will provide major rehabilitation to City streets which are in immediate need for improvement. The project is implemented in accordance with the Pavement Management System to meet the City Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. These RMRA funds will be used towards rehabilitation of 23rd Street, from Elden Avenue to Waterman Way. 3. The budget for Fiscal Year 2017-18 is amended to identify RMRA funding for the above -listed projects. PASSED AND ADOPTED this 19th day of September 2017. Mayor of the City of Costa Mesa ATTEST: Deputy City Clerk of the City of Costa Mesa STATE OF CALIFORNIA COUNTY OF ORANGE I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 17- —and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 19th day of September, 2017, by the following roll call vote, to wit: AYES: COUNCILMEMBERS: NOES: COU NCI LM EMBERS: ABSENT: COUNCILMEMBERS: BRENDA GREEN, CITY CLERK APPROVED AS TO FORM: THOMAS P. DUARTE, CITY ATTORNEY ATTACHMENT BUDGET ADJUSTMENT AUTHORIZATION Unit CITY Department Public Services Division Engineering Serial Number 18-009 Type of Transaction Pro ram Reason for Request: ® Revenue Estimate ® Expenditure Appropriation Decrease ❑ Estimate Increase ❑ Intra -Departmental Transfer To administratively record reduction in FY 2017-18 Gas Tax ® Estimate Decrease ❑ Inter -Departmental Transfer revenue estimate ($10,884). ® Source ❑ Project -To -Project Transfer ❑ Appropriation Increase CITY ❑ From Existing Budget Appropriations Fund Balance — Undesignated 201 E From Donations, Fees, or Grants ® Appropriation Decrease ❑ From Unappropriated Fund Balance - ($660,884) Unit Account Name Fund Organization Pro ram Pro ect/Grant Increase Decrease CITY 430239 Gasoline Tax - RMRA 201 13200 50540 ($660,884) CITY 340295 Fund Balance — Undesignated 201 90000 50240 - ($660,884) CITY 430239 Gasoline Tax - RMRA 201 19200 71200 $650,000 CITY 340295 Fund Balance — Undesignated 201 90000 50240 - $650,000 CITY 500000 CIP — Street Maintenance Citywide 201 19200 30112 400015 - ($1,605,916) CITY 340295 Fund Balance — Undesignated 201 90000 50240 - $1,605,916 CITY 340295 Fund Balance — Undesignated 201 90000 50240 - ($1,595,032) CITY 500000 CIP — Street Maintenance Citywide 201 19200 30112 400015 $1,595,032 Department Authorization: _ Department Director Date Recommendation: E Approval ❑ Reasons for Disapproval: Director of Finance Disapproval Date City Manager Action: ❑ Approved ❑ Disapproved ® City Manager Not Required Date Budget Verification: The above information has been reviewed, is complete and accurate, and and/or unappropriated funds are sufficient to support the request. ® Yes ❑ No Budget Analyst the appropriations Date City Council Action: E Approved ❑ Disapproved ❑ Not Required Date BUDGET TRANSFER AUTHORIZATION Unit CITY Department Public Services Program Engineering Serial Number 18-126 Z Source LXJ Expenditure Appropriation Reason for Request: Z From Existing Budget Appropriations Z Project -To -Project Transfer Reallocation of appropriations for FY 2017-18 CIP projects 500000 ❑ Appropriation Increase impacted by S61 RMRA funding requirements. 19200 ❑ Appropriation Decrease 400015 Unit Account Name Fund Organization Program Project/Grant Increase Decrease CITY 500000 CIP — Street Maintenance Citywide 201 19200 30112 400015 - ($500,000) CITY 500000 CIP — 23rd Street — Elden to Waterman 201 19200 71200 300165 $300,000 CITY 500000 CIP — 23rd Street — Elden to Waterman 201 19200 30112 300165 $200,000 CITY 500000 CIP — Newport Blvd Frontage 201 19200 30112 400015 - ($350,000) CITY 500000 CIP — Newport Blvd Frontage 201 19200 71200 300164 $350,000 Department Authorization: Department Director Date Recommendation: Z Approval ❑ Disapproval Reasons for Disapproval: Director of Finance Date City Manager Action (only if an exception item): ® Approved ❑ Disapproved ❑ Not Required City Manager Date Budget Verification: The above information has been reviewed, is complete and accurate, and the appropriations and/or unappropriated funds are sufficient to support the request. Z Yes ❑ No Budget Analyst Date ATTACHMENT CITY OF COSTA MESA, CALIFORP CAPITAL IMPROVEMENT PROJECT FISCAL YEAR 2017-2018 DEPARTMENT DIVISION PROGRAM Public Services Engineering Street Improvements - 30112 PROJECT TITLE PROJECT MANAGER ITEM Citywide Street Improvements Bart Mejia, x-5291 8 Account Fund Org Program Project PROJECT ACCOUNT STRING: 500000 201 19200 30112 400015 500000 416 19200 30112 400015 Existing Project 500000 207 19200 30112 400015 Priority Classification: ❑ Class I Required by action of the City Council or legislation of another governmental agency. Class II Eliminates a hazard to public health or safety. Replaces an obsolete facility or maintains or better utilizes an existing facility. Benefits the City's economic base. Results in reduced operating costs or better service. ❑ Class III Prevents a substantial reduction in an existing standard of City service due to population growth. Eliminates potential hazard to health or safety, or eliminates nuisance conditions. ❑ Class IV Provides a new facility or asset or improves an existing standard of service. Provides programs to increase public convenience or comfort or projects having primary social, cultural, historic or aesthetic value. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Description of Expenditures Architect Fees - - - - - Construction 3,430,916 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6.000,000 Engineering Fees - - - - - - - Equipment Inspection Land Acquisition - - Other Costs (please identify) - - $ 3,430,916 $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 6,000,000 Total Description of Resources Gas Tax 1,105,916 - - - - - - Measure "M2" fund 416 1,800,000 - - - - Capital Imrovement Fund 525,000 $ 3,430,916 Is is - $ -Is - Is -is Total Project Justification I Operating Impact: $ This program will provide major rehabilitation to City streets which are in immediate need for improvement. The program is implemented in accordance with the Pavement Management System to meet the City Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. GENERAL PLAN CONSISTENCY GOAL: POLICY: OBJECTIVE: File: FY17-18 CIP- Citywide Street Improvements (002) 1 09/11/2017 3:23 PM CITY OF COSTA MESA, CALIFORNIA CAPITAL IMPROVEMENT PROJECT FISCAL YEAR 2017-2018 DEPARTMENT DIVISION PROGRAM Public Services Engineering RMRA - 71200 PROJECT TITLE PROJECT MANAGER ITEM Newport Blvd Frontage Rd (N/B) - 15th St to 17th St Bart Mejia, x-5291 12 Account Fund Org Program Project PROJECT ACCOUNT STRING: 500000 201 19200 71200 300164 New Project 1W Priority Classification: ❑ Class I Required by action of the City Council or legislation of another governmental agency. OClass II Eliminates a hazard to public health or safety. Replaces an obsolete facility or maintains or better utilizes an existing facility. Benefits the City's economic base. Results in reduced operating costs or better service. E] Class III Prevents a substantial reduction in an existing standard of City service due to population growth. Eliminates potential hazard to health or safety, or eliminates nuisance conditions. ❑Class IV Provides a new facility or asset or improves an existing standard of service. Provides programs to increase public convenience or comfort or projects having primary social, cultural, historic or aesthetic value. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Description of Expenditures Architect Fees - Construction 350,000 Engineering Fees - Equipment Inspection Land Acquisition Other Costs (please identify) $ 350,000 $ $ $ $ $ $ Total Description of Resources Gas Tax (RMRA) Fund 350,000 Total $ 350,000 $ $ $ $ $ $ Project Justification Operating Impact: $ This program will provide major rehabilitation to City streets which are in immediate need for improvement. The program is implemented in accordance with the Pavement Management System to meet the City Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. These funds will be used towards rehabilitation of Newport Boulevard Frontage Road (northbound) from 15th Street to 17th street. Estimated Useful Project Life: 10 years GENERAL PLAN CONSISTENCY GOAL: POLICY: OBJECTIVE: File: FY17-18 CIP- Newport Blvd Frontage Rd - Northbound 1 09/08/2017 3:44 PM CITY OF COSTA MESA, CALIFORNIA CAPITAL IMPROVEMENT PROJECT FISCAL YEAR 2017-2018 DEPARTMENT DIVISION PROGRAM Public Services Engineering RMRA - 71200 PROJECT TITLE PROJECT MANAGER ITEM 23rd Street from Elden Ave. to Waterman Wy Bart Mejia, x-5291 12a Account Fund Org Program Project PROJECT ACCOUNT STRING: 500000 201 19200 71200 300165 500000 201 19200 30112 300165 New Project Priority Classification: ❑ Class I Required by action of the City Council or legislation of another governmental agency. 0 Class II Eliminates a hazard to public health or safety. Replaces an obsolete facility or maintains or better utilizes an existing facility. Benefits the City's economic base. Results in reduced operating costs or better service. ❑ Class III Prevents a substantial reduction in an existing standard of City service due to population growth. Eliminates potential hazard to health or safety, or eliminates nuisance conditions. ❑ Class IV Provides a new facility or asset or improves an existing standard of service. Provides programs to increase public convenience or comfort or projects having primary social, cultural, historic or aesthetic value. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Description of Expenditures Architect Fees - Construction 450,000 Engineering Fees 50,000 Equipment - Inspection Land Acquisition Other Costs (please identify) - $ 500,000 $ $ $ $ $ $ Total Description of Resources Gas Tax (RMRA) Fund 300,000 Gas Tax (HUTA) Fund 200,000 Total Is 500,000 is $ $ $ $ $ Project Justification I Operating Impact: $ This program will provide major rehabilitation to City streets which are in immediate need for improvement. The program is implemented in accordance with the Pavement Management System to meet the City Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. These funds will be used towards rehabilitation of 23rd Street from Elden Avenue to Waterman Way. Estimated Useful Project Life: 10 years GENERAL PLAN CONSISTENCY GOAL: POLICY: OBJECTIVE: File: FY17-18 CIP- 23rd St Elden to Waterman 1 09/08/2017 3:43 PM