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CC SR 20250617 G - SB-1 Projects FY25-26 CITY COUNCIL MEETING DATE: 06/17/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration to approve projects proposed to be funded by Senate Bill No. 1, the Road Repair and Accountability Act of 2017, for Fiscal Year 2025-26. RECOMMENDED COUNCIL ACTION: (1) Adopt Resolution No. 2025-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017. FISCAL IMPACT: Funding for the proposed Road Maintenance and Rehabilitation Accountability Act project list is part of the proposed Fiscal Year 2025-26 General Fund operating budget for $460,000 and the Capital Improvement Program for $750,000 that is proposed for Council consideration under a separate agenda item this evening. The recommended Resolution is a requirement of Senate Bill No. 1 (SB 1), demonstrating the planned use of these funds. The City will receive an estimated $1,157,428 in Road Maintenance and Rehabilitation Account funds in FY 2025-26 that will be applied to these proposed two projects with the balance coming from prior year’s fund balance. VR Amount Budgeted: $1,210,000 (in proposed FY 2025-26 Budget) Additional Appropriation: N/A Account Number(s): 204-400-3170-5201 ($460,000) (SB-1-Street Pavement-Repair & Maint. Services) 204-400-8302-XXXX ($750,000) (SB-1-PVDS Landslide Repair Program) VR ORIGINATED BY: Lorna Cloke, Senior Administrative Analyst REVIEWED BY: Ramzi Awwad, Public Works Director APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2025-___ (page A-1) B. Street Sweeping Contract Rates Sheet for FY 2025-26 (page B-1) 1 C. Capital Improvement Project Sheet, Palos Verdes Drive South Landslide Repair Program (8302) (page C-1) BACKGROUND AND DISCUSSION: Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017, was signed into law in April 2017. SB 1 imposed a combination of fuel taxes (gasoline and diesel) and vehicle license fees (including for zero-emission vehicles) to fund road maintenance, rehabilitation, and safety needs on local street and road systems. The City receives SB 1 funds from the Road Maintenance and Rehabilitation Account (RMRA), managed by the State Controller’s Office. Use of the funds is reported to the California Transportation Commission. The State Controller’s Office forecasts that the City will receive an estimated $1,157,428 in RMRA funds in FY 2025-26. To receive the funds, the City must submit a proposed project list for the upcoming fiscal year by July 1, 2025 (Attachment A). The projects may, among others, include annual road maintenance or capital projects. The City may also use these funds for other eligible projects not on the list without penalty if the City’s priorities change. Staff propose appropriating $460,000 of the $1,157,428 in SB 1 funds towards the City’s Street Sweeping Program as part of the FY 2025-26 operating budget. The rate sheet depicting the proposed program cost for FY 2025-26 is attached (Attachment B). The funds will be used to clean and maintain arterial/collector and residential streets throughout the City at 24 times per year. The remaining SB 1 funds of $697,428 plus $52,572 from prior year’s SB 1 fund balance are proposed to be used in in FY 2025-26 for Capital Improvement Program (CIP) Project 8302: Palos Verdes Drive South Landslide Repair Program (Attachment C). The remaining fund balance of $1,810,508 will be reserved for future Roadway Asset Management Program projects as needed. CONCLUSION: Staff recommends the City Council adopt the attached resolution (Attachment A) to use SB 1 funds toward citywide street sweeping of arterial/collector and residential streets and toward the repair of Palos Verdes Drive South and other roadways in the Greater Portuguese Bend Landslide Complex. This resolution’s purpose is to demonstrate the City’s planned use of SB 1 funds and comply with the requirement to submit a proposed project list. Should the City’s priorities change, the City Council may use the funding for other roadway maintenance or eligible projects without penalty. 2 ALTERNATIVES: In addition to the Staff recommendations, the following alternative action s are available for the City Council's consideration: 1. Provide other funding for Citywide Street Sweeping and direct Staff to use the SB 1 funds for another eligible project or program or to reserve them for future use. 2. Take other action, as deemed appropriate. 3 RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY 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 Rancho Palos Verdes are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Rancho Palos Verdes must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, 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 City of Rancho Palos Verdes will receive an estimated $1,107,428 in RMRA funding in Fiscal Year 2025-26 from SB 1; and WHEREAS, this is the eighth year in which the City of Rancho Palos Verdes is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Rancho Palos Verdes has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Rancho Palos Verdes 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 community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Rancho Palos Verdes maintain and rehabilitate streets/roads throughout the City this year and many similar projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “good” condition and this A-1 revenue will help us increase the overall quality of our road system and, over the next decade, will bring our streets and roads into a “excellent” 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 and positive co-benefits, statewide. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: Section 1: The foregoing recitals are true and correct and incorporated herein by reference. Section 2: The following list of projects will be funded in part or solely with Fiscal Year 2025-26 SB-1 funds through Road Maintenance and Rehabilitation Account revenues: Project Title: Street Sweeping - Citywide Project Description: Procurement – Mechanical sweeping of residential and arterial/collector streets (excluding Western Ave. a state highway) for 24 times per year. Project Location: Arterial/collector and residential streets throughout the Community Amount and Phase: Amount: $460,000 Phase: Maintenance Estimated Project Schedule: Start: July 2025 Completion: June 2026 Estimated Useful Life: 1-year Project Title: Palos Verdes Drive South (PVDS) Landslide Repair Program Project Description: Repair PVDS and other roadway surface in the Greater Portuguese Bend Landslide Complex, replace traffic signs and pavement markings as needed. Project Location: Arterial/collector and residential streets throughout the Greater Portuguese Bend Landslide Complex Amount and Phase: Amount: $750,000 Phase: Maintenance Estimated Project Schedule: Start: July 2025 Completion: June 2026 Estimated Useful Life: Up to 1-year A-2 Section 3: The remaining SB-1 funds of approximately $1,810,500 are proposed to be reserved for the future Roadway Asset Management Program projects including Palos Verdes Drive South and West. PASSED, APPROVED AND ADOPTED on this 17th day of June 2025. _____________________ David L. Bradley, Mayor Attest: __________________________ City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the foregoing Resolution No. 2025-__ was duly adopted by the City Council of the City of Rancho Palos Verdes at a regular meeting held on the 17th day of June, 2025. Teresa Takaoka, City Clerk A-3 01203.0006/898720.2 C-2 DocuSign Envelope ID: 357FE69E-DADC-4CB6-BAB5-D6953E6E89C3 B-1 4/17/2025 Insert Descriptive Photo PROJECT DESCRIPTION This project is intended to repair Palos Verdes Drive South and other roadways in the Greater Portuguese Bend Landslide Complex and consists of repairing: The asphalt roadway Storm drain infrastructure Curbs and gutters Traffic signs and pavement markings PROJECT COST ESTIMATES 8300 Series Landslide Improvement Projects 8302 Palos Verdes Drive South Landslide Repair Program Environmental $ - $ - $ - $ - $ - N/A Overall Planning $ - $ - $ - $ - $ - N/A FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 Committed as of Management $ 50,000 $ 35,000 $ 15,000 $ 15,000 $ 15,000 Engineering $ - $ - $ - $ - $ - Construction $ 2,250,000 $ 1,490,000 $ 745,000 $ 745,000 $ 745,000 N/A Project Contingency $ - $ - $ - $ - $ - N/A 65,000Inspection $ 200,000 NA 2,500,000$ 1,650,000$ 825,000$ 825,000$ 825,000$ N/A NA - Recurring Program 125,000 $ 65,000 $ 65,000 N/A N/A N/A FUNDING FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 Future Fiscal Years Committed as of 4/17/2025 Funding source for future needs undetermined 1,150,000$ 850,000$ 215 (Proposition C) 204 (Gas Tax - SB1) 220 (Measure R) 330 (CIP Fund) 750,000$ -$ 500,000$ -$ 600,000$ 300,000$ Regular repair, resurfacing, and patching of the roadway and associated infrastructure is needed to mitigate impacts of roadway movement caused by the landslide. This program is expected to continue until landslide movement in this area can be managed. The roadway is regularly inspected and work is performed an as-needed basis as defects are discovered. Estimated annual operating / maintenance cost TBD ESTIMATED SCHEDULE Construction annually from Fiscal Year 2025-26 through 2029-30. Work beyond Fiscal Year 2026-27 is contingent on identifying available funding sources. Work in remaining years TBD. Project Location Map Background and Justification 1,837,376$ 2,500,000$ 1,650,000$ TBD TBD TBD TBD C-1