11 Staff Report - SB1
PREPARED BY: Bobby Gonzalez
Senior Administrative Analyst
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director
of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/16/2020
ITEM NO: 11
DATE: June 10, 2020
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2020/21 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 2020/21 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. The
Town will receive an estimated $526,739 in Road Maintenance and Rehabilitation Account
(RMRA) funding in FY 2020/21.
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.
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SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2020/21 Funded by
State Senate Bill 1 (SB1), The Road Repair and Accountability Act of 2017
DATE: June 10, 2020
DISCUSSION:
Attachment 1 contains the required resolution, identifying projects for sections of Winchester
Boulevard and Union Avenue. 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 the voter-approved 2016
Measure B. Streets are prioritized based on project cost estimates at the time the project
locations are set for bid, allowing for price escalation and scope adjustments prior to
construction. 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. 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.
CONCLUSION:
Adoption of the recommended resolution will allow the continuation of the Town’s roadway
maintenance through the Capital Improvement Program.
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.
FISCAL IMPACT:
The Town’s Adopted FY 2020/21-2024/25 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:
This action is not a project defined under CEQA, and no further action is required.
Attachment:
1. Draft Resolution