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Staff Report. SB 1 Resolution FY 2022-23 PREPARED BY: WooJae Kim Town Engineer Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Interim 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: 5/3/2022 ITEM NO: 9 DATE: April 20, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2022/23 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) 2022/23 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 $669,856 in Road Maintenance and Rehabilitation Account (RMRA) funding through SB 1 in FY 2022/23. Built into the Road Repair and Accountability Act are accountability and transparency measures, including a requirement that all projects proposed to receive RMRA funding to be adopted by the applicable governing body at a regular meeting. To comply, the Town must adopt a resolution with a list of projects in the upcoming fiscal year proposed to receive RMRA funding, 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. PAGE 2 OF 3 SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2022/23 Funded by the State Senate Bill 1, the Road Repair and Accountability Act of 2017 DATE: April 20, 2022 DISCUSSION: For projects in consideration to 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 following project segments previously adopted and newly proposed for SB 1 funding in need of street repair and maintenance in FY 2022/23 and upcoming years: Location Description Scheduled Start and Completion Estimated Useful Life Union Avenue from Blossom Hill Road to Los Gatos-Almaden Road Placement of rubber cape seal or overlay to maintain pavement surface. This is an arterial road and is critical for transit needs in the Town. Spring 2022 to Fall 2023 10 - 25 years Pollard Road from Quito Road to W. Parr Avenue Placement of rubber cape seal or overlay to maintain pavement surface. This is an arterial road and is critical for transit needs in the Town. Spring 2022 to Fall 2023 10 - 25 years E. Main Street from Jackson Street to Maple Place Placement of rubber cape seal or overlay to maintain pavement surface. This is a collector road and is critical for transit needs in the Town. Fall 2022 to Fall 2023 10 - 25 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 2022/23 for Council’s approval prior to advertising for construction bid. Construction for the FY 2022/23 Street Repair and Resurfacing project is anticipated to start in the spring or summer of 2023. 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 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. PAGE 3 OF 3 SUBJECT: Adopt a Resolution to Adopt a List of Projects for Fiscal Year 2022/23 Funded by the State Senate Bill 1, the Road Repair and Accountability Act of 2017 DATE: April 20, 2022 CONCLUSION: Adoption of the recommended resolution would meet with the SB 1 RMRA funding requirement for proposed project list to allow the continuation of the Town’s roadway maintenance through the Capital Improvement Program. FISCAL IMPACT: The Town’s Proposed FY 2022/23-2026/27 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. SB 1 Resolution