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06 Staff Report.SB1 Resolution FY 2024-25 with attachments PREPARED BY: Gary Heap Town Engineer Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 06/04/2024 DATE: May 30, 2024 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2024/25 Funded by the State Senate Bill 1, the Road Repair and Accountability Act of 2017 RECOMMENDATION: Adopt a resolution (Attachment 1) to adopt a list of projects for Fiscal Year (FY) 2024/25 funded by the State Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017. BACKGROUND: SB 1, the Road Repair and Accountability Act of 2017, was passed by the State Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide. SB 1 is intended to enable cities and counties to better address significant maintenance, rehabilitation, and safety needs on their local street systems. Maintenance and rehabilitation projects are used to extend the serviceable life of streets. The Town will receive an estimated $859,033 in Road Maintenance and Rehabilitation Account (RMRA) funding through SB 1 in FY 2024/25. Built into the Road Repair and Accountability Act are accountability and transparency measures, including a requirement that a list of all streets proposed to receive RMRA funding be adopted by the applicable governing body at a regular meeting. To comply, the Town Council must adopt a resolution with a list of streets that may receive RMRA funding in the upcoming fiscal year, including a description and the location of each proposed street segment, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. PAGE 2 OF 3 SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2024/25 Funded by the State Senate Bill 1, the Road Repair and Accountability Act of 2017 DATE: May 30, 2024 DISCUSSION: In considering which roads may receive RMRA funding, staff recommends Town road segments that carry heavier traffic loads and volumes, such as arterials that may involve more design scope and construction work to repair and maintain compared to other local roadways. Staff has identified the project segments shown in Table 1 for use of SB 1 funding in FY 2024/25 and upcoming years: Table 1. SB1 Road List Fiscal Year 2024/25 Street Name From To Functional Classification Treatment Scheduled Start and Completion Estimated Useful Life Los Gatos Blvd Hwy 9 Caldwell Av A 2" Mill and Overlay with leveling course and dig-outs Spring – Fall 2025 10 – 15 years Pollard Rd Quito W. Parr A 2" Mill and Overlay with leveling course and dig-outs Spring – Fall 2025 10 – 15 years Los Gatos Bl Hwy 9 Caldwell Av A 2" Mill and Overlay with leveling course and dig-outs Spring – Fall 2025 10 – 15 years Blossom Hill Rd Union Av City Limits A Micro-surfacing which is placement of thin, tough layer of asphalt emulsion blended with finely crushed stone for traction. Spring - Fall 2025 5-7 years Los Gatos – Almaden Rd Los Gatos Bl Camino del Cerro A Micro-surfacing which is placement of thin, tough layer of asphalt emulsion blended with finely crushed stone for traction. Spring - Fall 2025 5-7 years The required work on the identified streets may exceed the available SB 1 funding. Funding from other sources would be required to complete the projects, such as the General Fund Appropriated Reserves (GFAR) and the voter-approved 2016 Measure B. Modifications to the SB 1 funding project list are permitted, and staff may recommend modifications when greater needs for funding emerge; for example, due to winter weather impacts. Staff will return with the final proposed project list for FY 2024/25 for Council’s approval prior to advertising for construction bid. Construction for the FY 2024/25 Street Repair and Resurfacing project is anticipated to start in the spring or summer of 2025. One important element associated with SB 1 is a continued maintenance of effort (MOE) requirement. The MOE requirement means that local funding for routine street maintenance PAGE 3 OF 3 SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2024/25 Funded by the State Senate Bill 1, the Road Repair and Accountability Act of 2017 DATE: May 30, 2024 DISCUSSION (continued): must not be less than the average of the three base years (2009/10 – 2011/12) as set by SB 1. The State continues to refine the calculation and reporting requirements for the MOE, and it would be important for the Town to sustain historic maintenance funding levels into the future to avoid risking loss of the annual RMRA appropriation. CONCLUSION: Adoption of the recommended resolution would meet the SB 1 RMRA funding requirement to have an adopted project list and allow the continuation of the Town’s roadway maintenance through the Capital Improvement Program. FISCAL IMPACT: The Town’s Proposed FY 2024/25 - 2028/29 Capital Improvement Program has already included the estimated funds in the Street Repair and Resurfacing project. This action will have no effect on the Town’s budget and only identifies the specific streets. ENVIRONMENTAL ASSESSMENT: In accordance with CEQA Guidelines Section 15301, adoption of this resolution is categorically exempt from CEQA, because it involves maintenance of existing roads. Attachment: 1. Resolution Adopting a List of Projects for Fiscal Year 2024/25 Funded by the State Senate Bill 1: The Road Repair and Accountability Act of 2017. 1 of 3 Resolution 2024- June 4, 2024 ATTACHMENT 1 RESOLUTION 2024- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024/25 FUNDED BY THE STATE SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 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 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 Town are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the Town must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 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, the Town, will receive an estimated $859,033 in RMRA funding in Fiscal Year 2024/25 from SB 1; and WHEREAS, this is the eighth year in which the Town is receiving SB 1 funding and will enable the Town to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the Town 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 communities’ priorities for transportation investment; and WHEREAS, the funding from SB1 will help the Town maintain and rehabilitate streets throughout the Town this year and similar projects into the future; and 2 of 3 Resolution 2024- June 4, 2024 ATTACHMENT 1 WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the Town’s streets and roads are in a “good” condition and this revenue will help increase the overall quality of the road system and over the next decade will bring Town streets and roads into a good condition; 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, BE IT RESOLVED: The foregoing recitals are true and correct, and the following list of projects will be funded in-part or solely with Fiscal Year 2024/25 Road Maintenance and Rehabilitation Account revenues: Street Name From To Functional Classification Treatment Scheduled Start and Completion Estimated Useful life Los Gatos Blvd Hwy 9 Caldwell Av Arterial 2" Mill and Overlay with leveling course and dig-outs Spring – Fall 2025 10 – 15 years Pollard Rd Quito W. Parr Arterial 2" Mill and Overlay with leveling course and dig-outs Spring – Fall 2025 10 – 15 years Blossom Hill Rd Union Av City Limits Arterial Micro-surfacing which is placement of thin, tough layer of asphalt emulsion blended with finely crushed stone for traction. Spring - Fall 2025 5-7 years Los Gatos – Almaden Rd Los Gatos Bl Camino del Cerro Arterial Micro-surfacing which is placement of thin, tough layer of asphalt emulsion blended with finely crushed stone for traction. Spring - Fall 2025 5-7 years 3 of 3 Resolution 2024- June 4, 2024 ATTACHMENT 1 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 4th day of June of 2024 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTEST: TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________