Resolution No. 2019-004RESOLUTION NO. 2019-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON TO ADOPT A PROJECT FUNDED BY SENATE BILL 1
THE ROAD REPAIR AND ACCOUNTABILITY ACT FOR FISCAL
YEAR 2019-2020
WHEREAS, Senate Bill 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, Senate Bill 1 includes accountability and
transparency provisions that will ensure that the residents and
business community 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 must adopt a list of all projects proposed
to receive funding from the Road Maintenance and Rehabilitation Account
(RMRA), created by Senate Bill 1, by resolution, 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, Streets and Highways Code Section 2032(h)(2)
specifies that fifty (50) percent of the balance of revenues deposited
into the RMRA, after certain funding is set aside for various programs,
will be continuously appropriated for apportionment to cities and
counties by the State Controller pursuant to the formula in Streets and
Highways Code Section 2103 (a) (3) (C) (i) and (ii) ; and
WHEREAS, the City, will receive an estimated $3,459.00 in
RMRA funding in Fiscal Year 2019-2020 from Senate Bill 1; and
WHEREAS, in order to receive an allocation or apportionment
pursuant to Streets and Highways Code Section 2032, the City shall
annually expend from its general fund for street, road, and highway
purposes an amount not less than the annual average of its expenditures
from its general fund during the 2009-2010, 2010-2011, and 2011-2012
fiscal years, as reported to the State Controller pursuant to Streets
and Highways Code Section 2151; and
WHEREAS, the City's annual average of its expenditures from
its general fund during the 2009-10, 2010-11, and 2011-12 fiscal years
is $830,243; and
WHEREAS, by memorandum dated April 2, 2019, the Director of
Public Works has recommended the adoption of a project funded by Senate
Bill 1: The Road Repair and Accountability Act for Fiscal Year 2019-
2020.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action does not constitute a "project" pursuant to sections
15378(b)(2) and (4) of the Guidelines to the California Environmental
Quality Act ("CEQA"), because it constitutes an administrative activity
and government funding mechanism that does not involve any commitment
to any specific project which may result in a potentially significant
impact on the environment; and even if the adoption of the proposed
resolution did constitute a project, it would be exempt from CEQA in
accordance with CEQA Guidelines Sections 15302, because the proposed
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project consists of the replacement of existing structures and
facilities where the new structure will be located on the same site as
the structure replaced and will have substantially the same purpose and
capacity as the structure replaced; and Section 15061(b)(3), the
general rule that CEQA only applies to projects that may have a
significant effect on the environment.
SECTION 3: The City Council of the City of Vernon hereby
adopts the following project planned to be funded with Road Maintenance
and Rehabilitation Account revenues:
oject
F[Sign
Location
Estimated
Useful
Life
Estimated
Construction
Dates
placement
Section 6 of the Sign
10 - 15
Pre -
Program - Traffic
Replacement Program. Leonis
years
Construction
signs replacement
Boulevard on the West side,
07/2019
program to comply
Downey Road on the east
with the
side, Leonis Boulevard on
Completion
CAMUTCD's
the North and the Southern
06/2020
Maintaining
City boundary line. The
Minimum
streets included within
Retroreflectivity
those limits are: Portion of
standards
Leonis Boulevard, 50th
Street, portion of Fruitland
Avenue, 54th Street, Slauson
Avenue, Portion of Boyle
Avenue, portion of Alcoa
Avenue, Malburg Way and
Bickett Street.
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SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk, of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of Resolutions
of the Council of this City.
APPROVED AND ADOPTED this 2nd day of April, 2019.
ATTEST:
Maria . Ayala City Clerk
APPROV D AS TO FORM:
"-�/ ?A �=
Brian Byun,
Senior Deputy C ty Attorney
Nam Melissa' . Ybarra
Title: Mayor / MayorDrr�-TomC�
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Maria E. Ayala, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2019-04,
was duly passed, approved and adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, April 2, 2019, and thereafter was duly signed by the Mayor or
Mayor Pro-Tem of the City of Vernon.
Executed this2Z4 day of April, 2019, at Vernon, California.
(SEAL)
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Ma is E. A la, City Clerk
STAFF REPORT
City Council Agenda Item Report
Agenda Item No. COV-117-2019
Submitted by: Claudia Arellano
Submitting Department: Public Works
Meeting Date: April 2, 2019
SUBJECT
A Resolution to Adopt a Project Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017
Recommendation:
A. Find that the approval of the proposed action, does not constitute a "project" pursuant to sections 15378(b)(2) and
(4) of the Guidelines to the California Environmental Quality Act ("CEQA'), because it constitutes an administrative
activity and government funding mechanism that does not involve any connnitment to any specific project which may
result in a potentially significant impact on the environment; and even if the adoption of the proposed resolution did
constitute a project, it would be exempt from CEQA in accordance with CEQA Guidelines Sections 15302, because
the proposed project consists of the replacement of existing structures and facilities where the new structure will be
located on the same site as the structure replaced and will have substantially the same purpose and capacity as the
structure replaced; and 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant
effect on the environment; and
B. Adopt a resolution adopting a project funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for
Fiscal Year 2019/2020.
Background:
On April 28, 2017, the Governor signed Senate Bill 1 (Beall, Chapter 5, Statute 2017), which is known as the Road
Repair and Accountability Act of 2017 to address basic road maintenance, rehabilitation and critical safety needs on
both the state highway and local street and road systems. Senate Bill 1 increases per gallon fuel excise taxes, increases
diesel fuel sales taxes and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years.
On November 1, 2017, the State Controller commenced depositing a portion of this new funding into the newly created
Road Maintenance and Rehabilitation Account (RMRA). Part of the RMRA funding will be apportioned by formula to
eligible cities and counties pursuant to Streets and Highways Code Section 2032(h)(2) for basic road maintenance,
rehabilitation, and critical safety projects on the local streets and road systems. Pursuant to Streets and Highways Code
Section 2030, 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 stormwater capture projects in conjunction with any other allowable project."
The City's allocation for Fiscal Year 2019/2020 is estimated to be $3,459 pursuant to the formula in the Streets and
Highways Code Section 2103(a)(3)(C)(i) and (ii). The formula essentially proportions the total population the City
bears to the total population of all the cities in the state.
MAINTENANCE OF EFFORT: RMRA
The Road Repair and Accountability Act contains a local agency Maintenance of Effort (MOE) requirement that applies
to funds allocated through the RMRA. The Act states that the MOE requirement is to ensure that these new road funds
do not supplant existing levels of city and county general revenue spending on streets and roads. The MOE for the
receipt of RMRA funds state that a city or county must maintain general fund spending for street, road, and highway
purposes at no less than the average of fiscal years 2009/2010, 2010/2011, and 2011 /2012 as reported to the State
Controller pursuant to Streets and Highways Code Section 2151. In making this calculation an agency may exclude
one-time funds. A city or county that fails to comply in a particular year may make it up with additional expenditures in
the following year. The Act provides that the State Controller may perform audits to ensure compliance with these
MOE rules. If the State Controller determines that a city or county has not met its MOE, the agency will be required to
reimburse the state for the funds it received during that fiscal year. However, a city or county that fails to comply in a
particular fiscal year may expend during that fiscal year and the following fiscal year a total amount that is sufficient to
comply. Any funds withheld or returned as a result of a failure to comply will be reapportioned to the other counties and
cities whose expenditures are in compliance.
The City's annual average of its expenditures from its general fund during Fiscal Years 2009/2010, 2010/2011, and
2011/2012 is $830,243 as shown below:
Maintenance of Effort - General Fund for Streets & Roads
Road Maintenance and Rehabilitation Account per Streets & Hwys Code Sec 2036 (Revised Est.: 08/07/2017)
Streets and Roads Annual Report - Reported General Fund for Street Purposes
FY2009/2010 FY2010/2011 FY2011/2012 AVERAGE ADJUSTMENT RMRA MOE
$789,165 $616,736 $1,084,827 $830,243 - $830,243
The City's local match identified by the State is significantly higher. As indicated above, the City's MOE is $830,243
and the State's allocation for Fiscal Year 2019/2020 is estimated at $3,459 which means the City would be required to
expend $830,243 in approved projects in order to receive the allocated funds of $3,459. The sum of the preliminary
budgeted street improvements for Fiscal Year 2019/2020 is $5.8 million.
SPENDING PLANS AND REPORTS: RMRA
The Road Repair and Accountability Act stipulates that, prior to receiving RMRA funds in a fiscal year, a city or county
must submit to the California Transportation Commission (CTC) a project list pursuant to an adopted budget. The list
must include for each project: description, location, schedule, useful life [Streets and Highways Code Section 2034(a)].
The Road Repair and Accountability Act also requires that a city or county submit to the CTC an annual report of
project completion in order to receive RMRA funds. The report must include descriptions of all projects for which
RMRA funds were expended including: description, location, funds expended, completion date, and estimated useful life
of the project.
The City's Sign Replacement Program project is identified as a potential candidate for Fiscal Year 2019/2020 Senate
Bill 1 funding.
Fiscal Impact:
There is no fiscal impact with the adoption of a resolution approving the Road Repair Program project for Fiscal Year
2019/2020 Senate Bill 1 funding. The City will allocate funding, once it figls the requirements under the Road Repair
and Accountability Act of 2017.
F.1%MWITO0 kyj I I
• 1. Resolution Senate Bill 1 - The Road Repair and Accountability Act FY 2019-2020