Resolution No. 2020-008RESOLUTION NO. 2020-08
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 2020-2021
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 $5,685.00 in
RMRA funding in Fiscal Year 2020-2021 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 7, 2020, 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 2020-
2021.
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:
Project
Location
Estimated
Useful
Life
Estimated
Construction
Dates
Procurement of
Section 7 of the Sign
10 - 15
Pre -
equipment and
Replacement Program. The
years
Construction
supplies for Sign
area limits are: Downey Road
07/2020
Replacement
on the West side, Bonnie
Program - Traffic
Beach Place on the east
Completion
signs replacement
side, Washington Boulevard
06/2021
program to comply
on the North and Exchange
with the
Avenue on the South. The
CAMUTCD's
streets included within
Maintaining
those limits are: Portion of
Minimum
Washington Boulevard, 26th
Retroreflectivity
Street, Bandini Boulevard,
standards
Portion of Downey Road and
Indiana Avenue.
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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 7th day of April, 2020.
ATTEST: j�
Lisa Pope, Ci y Clerk
APPRO ED S TO FORMV y
r ,may/./_—_
Arnolb M. Al are-Glasman,
Interim City Attorney
Name:
Melisa 'A. Ybarra
Title: Mayor / -mom^
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Lisa Pope, City Clerk of the City of Vernon, do hereby certify
that the foregoing Resolution, being Resolution No_ 2020-08, 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 7,
2020, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of
the City of Vernon. yy
Executed this Nl day of April, 2020, at Vernon, California.
(SEAL)
av/&fteL
Lisa Pope, City Clerk
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STAFF REPORT
City Council Agenda Item Report
Agenda tern No. COV-99-2020
Submitted by. Claudia Arellano
Submitting Department: Public Works
Meeting Date: April 7, 2020
SUBJECT
Project Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017
Recommendation:
A. Find that 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 rat 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 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 substantally the same purpose and capacity as the stricture
replaced; and 15061(b)(3), the general role 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 2020/2021.
Background:
On April 28. 2017, the Governor signed Senate Bill 1 (Beat, 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 byfonnula 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 stonnwater capture projects in conjunction with any
other allowable project."
The Citys allocation for Fiscal Year 2020/2021 is estimated to be $5,685 pursuant to the formula in the
Streets and Highways Code Section 2103(a)(3)(C)(1) and (ii). The formula essentialty proportions the
total population the City bears to the total population of all the cities in the state.
iMINLgmP[rrl:111i;1;1;1 VIF101
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 cityor county that fails to comply in a particular year may make it tip 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 rat 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 retuned as a result
of a failure to comply will be reapportioned to the other counties and cities whose expenditures are in
compliance.
The Citys 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 Citys local match identified by the State is significantly higher. As indicated above, the Citys MOE
is $830,243 and the State's allocation for Fiscal Year 2020/2021 is estimated at $5,685 which means
the Citywould be required to expend $830,243 in approved projects in order to receive the allocated
funds of $5,685. The sum of the preliminary budgeted street improvements for Fiscal Year 2020/2021 is
$2.175 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, finds expended, completion date, and estimated useful life of the project.
The procurement of equipment and supplies for the Citys Sign Replacement Program project is
Identified as a potential candidate for Fiscal Year 2020/2021 Senate Bill 1 funding.
Fiscal Impact:
There is no fiscal impact with the adoption of a resolution approving the Road Maintenance and
Rehabilitation Account Program project for Fiscal Year 2020/2021 Senate Bill 1 funding. The City will
allocate funding, once it fulfills the requirements under the Road Repair and Accountability Act of 2017.
Attachments:
1. Senate Bill 1 - The Road Repair and Accountability Act FY 2020-2021 Resolution