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Resolution No. 2021-019RESOLUTION NO. 2021-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON ADOPTING A PROJECT FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT FOR FISCAL YEAR 2021-2022 SECTION 1. Recitals. A. Senate Bill 1, the R oad 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. B. Senate Bill 1 includes accountability and transparency provisions to ensure that the residents and business community of our City are aware of th e projects proposed for funding in our community and which projects have been completed each fiscal year. C. The City must adopt a list of all projects proposed to received 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. D. Streets and Highways Code Section 2031(h)(2) specifies that 50 percent of the balance of revenues deposited into the RMRA, after certain funding is set aside for various programs, will be contin uously appropriated 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). E. The City will receive an estimated $5,883 in RMRA funding in Fiscal Year 2021- 2022 from Senate Bill 1. F. 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 average of its expenditures from its general fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as reported to the State Controller pursuant to Streets and Highways Code Section 2151. G.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. H. By memorandum dated June 15, 2021, 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 2021-2022.         Resolution No. 2021-19 Page 2 of 3 _______________________ NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 3. The City Council 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 Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment. SECTION 4. The City Council hereby adopts the following project planned to be funded with Road Maintenance and Rehabilitation Account revenues: Project Location Estimated Useful Life Estimated Construction Dates Furnish and install traffic striping, pavement markers, and pavement markings (legends) over existing striping on various streets within the City of Vernon. The following streets within the City’s boundary: 37th Street, Bandini Boulevard, District Boulevard, Leonis Boulevard, Santa Fe Avenue, Soto Street, and Vernon Avenue 5-10 years Pre-Construction 07/2021 Completion 06/2022         Resolution No. 2021-19 Page 3 of 3 _______________________ SECTION 5. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions. APPROVED AND ADOPTED this 15th day of June, 2021. _____________________________ MELISSA YBARRA, Mayor ATTEST: LISA POPE, City Clerk (seal) APPROVED AS TO FORM: _________________________________ ARNOLD M. ALVAREZ-GLASMAN, Interim City Attorney I CERTIFY THAT THE FOREGOING RESOLUTION NO. 2021-19 was passed and adopted by the City Council of the City of Vernon at the Regular meeting on June 15, 2021 by the following vote: AYES: 5 CouncilMembers:/DULRV/RSH]0HUOR'DYLV<EDUUD NOES: 0 ABSENT: 0 ABSTAIN: 0 ________________________________ LISA POPE, City Clerk (seal)         City Council Agenda Item Report Agenda Item No. COV-640-2021 Submitted by: Jazmine Hooks Submitting Department: Public Works Meeting Date: June 15, 2021 SUBJECT Project Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 Recommendation: A. Find that the approval of the proposed resolution 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 Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt Resolution No. 2021-19 adopting a project funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2021-2022. 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 2031(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 (e.g. active transportation purposes, pedestrian and bicycle safety projects, transit facilities, etc.) The City’s allocation for Fiscal year 2021-2022 is estimated to be $5,883 pursuant to the formula in the Streets and Highways Code Section 2103(a)(3)(c)(i) and (ii). The formula proportions the total population of the City to the total population of all cities in the state. MAINTENANCE OF EFFORT: There is a local agency Maintenance of Effort (MOE) requirement that applies to funds allocated through the RMRA. The MOE requirement is to ensure that 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 Sections 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 RMRA provides that the State Controller may perform audits to ensure compliance with these MOE requirements. 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 apportioned to the other cities and counties whose expenditures comply with MOE requirements. The City’s annual average of expenditures from its general fund during Fiscal Years 2009-2010, 2010-2011, and 2011-2012 is $830,243 as depicted below: Maintenance of Effort – General Fund for Streets and Roads RMRA Account per Streets and Hwys Code Sec 2036 (Revised Est. 8-7-2017) FY2009-2010 - $789,165 FY2010-2011 - $616,736 FY2011-2012 - $1,084,827 AVERAGE - $830,243 ADJUSTMENT - $0 RMRA MOE - $830,243 The City street improvement expenditures comply with MOE requirements. The sum of budgeted street improvements for Fiscal Year 2021-2022 is $2.175 million. SPENDING PLANS AND REPORTS: The RMRA 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. For each project, the list must include a description, location, schedule, and useful life. The RMRA also requires the submission of an annual report of project completion in order to receive RMRA funds. The report must include all projects for which RMRA funds were expended. The Citywide Striping and Pavement Markings project is identified as a potential candidate for Fiscal Year 2021-2022 Senate Bill 1 funding. Fiscal Impact: There is no fiscal impact from the adoption of a resolution approving the Road Maintenance and Rehabilitation Account Program project for Fiscal Year 2021-2022 Senate Bill 1 funding. The City will receive an estimated $5,883 in RMRA funding in FY 2021-2022 from SB 1 and will allocate funding once it fulfills the requirements under the Road Repair and Accountability Act of 2017. Attachments: 1. Resolution No. 2021-19