Staff Report
PREPARED BY: Bobby González
Senior Administrative Analyst
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Assistant
Parks and Public Works Director/Town Engineer
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2019
ITEM NO: 6
DATE: APRIL 5, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT A RESOLUTION TO ADOPT A LIST OF PROJECTS FOR FISCAL YEAR
2019/20 FUNDED BY STATE SENATE BILL 1 (SB1), THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
RECOMMENDATION:
Adopt a resolution (Attachment 1) to adopt a list of projects for Fiscal Year 2019/20 funded by
State Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017.
BACKGROUND:
SB1, the Road Repair and Accountability Act 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. SB1 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. 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 $541,006 in Road
Maintenance and Rehabilitation Account (RMRA) funding in FY 2019/20.
For the Town to be eligible for funding from SB1, a list of projects to be funded must be
adopted each year by the Town Council. On April 17, 2018, Council adopted a list of streets for
2018/19 SB1 funding, including sections of National Avenue, Knowles Drive, Union Avenue, and
Quito Road. Of these streets, National Avenue from Los Gatos-Almaden Road to Samaritan
PAGE 2 OF 3
SUBJECT: ADOPT A RESOLUTION TO ADOPT A LIST OF PROJECTS FOR FISCAL YEAR
2018/19 FUNDED BY STATE SENATE BILL 1 (SB1), THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
APRIL 5, 2019
S:\COUNCIL REPORTS\2019\04-16-19\SB1\Staff Report FINAL.docx 4/10/2019 9:01 AM BG
BACKGROUND (continued):
Drive was included in this year’s approved street maintenance project. Construction of
National Avenue is scheduled for this summer.
DISCUSSION:
Built into the Road Repair and Accountability 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 adopt a resolution with a list of all projects proposed to receive funding
from the RMRA, 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.
The needed work on the identified streets currently exceeds the available funding within SB1.
Funding from other sources will be required to complete the projects, such as the General Fund
Appropriated Reserves (GFAR) and voter-approved 2016 Measure B. 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 impa cts. Final
proposed projects 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)
requirement. 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. Through the Town’s annual budgeting
process, the Capital Improvement Program includes maintenance work that supports the
Town’s MOE.
As previously noted, to be eligible for funding for Fiscal Year 2019/2020 from the state’s Road
Maintenance Rehabilitation Account, a list of projects to be funded must be approved by
Council. As noted in the attached resolution, this year’s list will includ e sections of Knowles
Avenue, Pollard Road, Winchester Boulevard, Union Avenue, and Quito Road.
PAGE 3 OF 3
SUBJECT: ADOPT A RESOLUTION TO ADOPT A LIST OF PROJECTS FOR FISCAL YEAR
2018/19 FUNDED BY STATE SENATE BILL 1 (SB1), THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
APRIL 5, 2019
S:\COUNCIL REPORTS\2019\04-16-19\SB1\Staff Report FINAL.docx 4/10/2019 9:01 AM BG
CONCLUSION:
Adopt a resolution to adopt a list of projects for Fiscal Year 2019/20 funded by state Senate Bill
1 (SB1), the Road Repair and Accountability Act of 2017.
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
serious maintenance levels.
FISCAL IMPACT:
The Town’s Adopted FY 2018/19-2022/23 Capital Improvement Program has already included
the estimated funds in the Street Repair and Resurfacing project . The Town’s future CIPs will
identify any other sources of funds needed to complete these SB1 projects and the required
MOE. This action has 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. Resolution Adopting a List of Projects for Fiscal Year 2019/20 Funded by SB 1: The Road
Repair and Accountability Act of 2017