Staff Report
PREPARED BY: MATT MORLEY
Director of Parks and Public Works
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/19/2017
ITEM NO: 11
DATE: SEPTEMBER 12, 2017
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION TO AMEND THE FY 2017/18 – 2021/22 ADOPTED
CAPITAL IMPROVEMENT PROGRAM BUDGET TO IDENTIFY THE STREETS
TO BE MAINTAINED USING FUNDING FROM THE ROAD MAINTENANCE AND
REHABILITATION ACCOUNT CREATED BY SENATE BILL 1.
RECOMMENDATION:
Adopt a resolution (Attachment 1) to amend the FY 2017/18 – 2021/22 Adopted Capital
Improvement Program Budget (CIP) to identify the streets to be maintained using funding from
the Road Maintenance and Rehabilitation Account (RMRA) created by Senate Bill 1 (SB1).
BACKGROUND:
In order to be eligible for funding for FY 2017/18 from the state’s RMRA created by SB1, a list of
projects to be funded must be included in the Town’s Adopted Budget.
SB1, the Road Repair and Accountability Act 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. SB1 is intended to enable cities and counties to
better address significant maintenance, rehabilitation , and safety needs on the local street
system. Maintenance and rehabilitation projects will extend the serviceable life of streets.
SB1 is anticipated to generate over $5 billion annually and $54 billion over the next decade,
split between state and local agencies. The Town will receive an estimated $177,277 in RMRA
funding in FY 2017/18, with an estimated increase to $531,801 in FY 2018/19.
PAGE 2 OF 3
SUBJECT: ADOPT A RESOLUTION TO AMEND THE FY 2017/18 – 2021/22 ADOPTED
CAPITAL IMPROVEMENT PROGRAM BUDGET TO IDENTIFY THE STREETS TO
BE MAINTAINED USING FUNDING FROM THE ROAD MAINTENANCE AND
REHABILITATION ACCOUNT CREATED BY SENATE BILL 1
SEPTEMBER 12, 2017
S:\COUNCIL REPORTS\2017\09-19-17\SB1 Identification of Town Streets\Staff Report - SB1 Final.docx 9/14/2017 3:53 PM SH
DISCUSSION:
Built into the act are accountability and transparency measures, including a requirement that
towns, cities, and counties adopt a project list at the start of every fiscal year while also
providing year end reporting on completed projects. To comply, the Town must incorporate a
list of all projects proposed to receive funding from the RMRA in the adopted budget, including
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.
Due to the timing of SB1, including the reporting requirements, jurisdictions t hroughout the
state are required to amend their adopted budgets to include the necessary information. Town
staff, utilizing the standard review process, has identified candidate streets as shown in the
attached resolution (Attachment 1). These streets would provide the basis for the street
maintenance project that will be bid in early 2018 and will provide guidance for future work. In
future years, staff will continue to detail a three year look ahead for street maintenance as part
of the Town’s annual budget process.
The needed work on the identified streets exceeds the available funding within SB1. Funding
from other sources, such as the General Fund Appropriated Reserves (GFAR) and 2016 Measure
B, would complete the project funding. These streets would be prioritized based on project
cost estimates at the time the project locations are set for bid, allowing for price escalation and
scope adjustments until then. Modifications to the list are permitted and staff may recommend
modifications as the bid package is created should street segments with greater need
materialize due, for example, to winter weather impacts. The final proposed project will return
to Council for approval of plans and specifications prior to bidding.
One important element associated with SB1 is a continued maintenance of effort (MOE). The
MOE requirement means that local funding for routine street maintenance must not be less
than the average of the three base years (2009/10 – 2011/12) as set by SB1. The State
continues to refine the calculation and reporting requirements for the MOE, and it will be
important for the Town to retain historic maintenance funding levels into the future so as not
to put at risk the annual RMRA appropriation.
CONCLUSION:
Staff recommends that the Town Council adopt a resolution to amend the FY 2017/18 Adopted
Budget to specify streets to be maintained using the Road Maintenance and Rehabilitation
Account created by SB1.
PAGE 3 OF 3
SUBJECT: ADOPT A RESOLUTION TO AMEND THE FY 2017/18 – 2021/22 ADOPTED
CAPITAL IMPROVEMENT PROGRAM BUDGET TO IDENTIFY THE STREETS TO
BE MAINTAINED USING FUNDING FROM THE ROAD MAINTENANCE AND
REHABILITATION ACCOUNT CREATED BY SENATE BILL 1
SEPTEMBER 12, 2017
S:\COUNCIL REPORTS\2017\09-19-17\SB1 Identification of Town Streets\Staff Report - SB1 Final.docx 9/14/2017 3:53 PM SH
ALTERNATIVES:
Alternatively, the Town Council could direct staff to change the proposed streets to be
maintained using RMRA funds. Staff has recommended the proposed list as the identified
streets carry the heaviest traffic loads and are the most expensive to repair as they fall to more
intense maintenance levels. As an example, the current recommendation for a rubber cape seal
on the identified streets is a cost-effective way to add years of life to a street. On the other
hand, waiting for the streets to require the next level of maintenance, an overlay, is significantly
more expensive.
FISCAL IMPACT:
The Town’s Adopted FY 2017/18-2021/22 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 except to identify the specific streets.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Draft Resolution