CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

October 3, 2017
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED Robert Harary, Public Works Director and Sharon Friedrichsen, Director of
BY: Budget and Contracts

Consideration of a resolution amending the Fiscal Year 2017-2018 Capital

SUBJECT: Improvement Plan and Adopted Budget to Incorporate a List of Projects Funded
by SB 1: The Road Repair and Accountability Act

RECOMMENDATION:

Council adopt a resolution amending the Fiscal Year (FY) 2017-2018 Capital Improvement Plan
and Adopted Budget to Incorporate a List of Projects Funded by SB 1: The Road Repair and
Accountability Act.

BACKGROUND/SUMMARY:

The State charges excise and sales taxes on gasoline and diesel fuel for transportation-related
purposes and allocates a percentage of this funding to cities and counties. This funding is known
as the Highway Users Tax Account ("HUTA"), which is often referred to as the gas tax. The gas
tax has not been updated in 23 years, and the State is confronting a backlog of deferred
investment in infrastructure such as bridges, freeware and roads. To address this issue, in April
2017, the Governor signed Senate Bill 1 ("SB 1"), the Road Repair and Accountability Act, into
law. This legislation addresses road maintenance, rehabilitation and safety needs of both the
State highway system and local streets by increasing the per gallon fuel excise taxes, raising
diesel fuel sales taxes and charging new vehicle fees. SB 1 is estimated to generate $1.5 billion
a year for California cities and counties for street maintenance efforts statewide. A percentage of
this new funding, known as the Road Maintenance and Rehabilitation Account ("RMRA"), will be
apportioned by formula to eligible cities and counties for local street needs starting on November
1, 2017.

In order for the City to be eligible to receive the RMRA funds, the City must:
Amend the adopted City budget to include the proposed SB 1 project list (and subsequently
include new proposed project lists with the adoption of future City budgets);
Amend the current Capital Improvement Plan to include the proposed SB 1 project list,
which includes a project description, project location, project completion schedule and
 estimated useful life and submit the list to the California Transportation Commission by
October 16, 2017 (and annually thereafter);
Sustain a certain amount of local funding for streets, known as the Maintenance of Effort;
and
Report on the use of the funds annually.

Public Works has identified the proposed projects based on the recently updated Street Saver
Pavement Management System. Used by countless agencies throughout California, this system
scientifically optimizes public funds by targeting overlays and slurry seals to roadway segments
which are about to slip into rapid decline, rather than allocating dollars to an agency's most
damaged pavement segments, which will ultimately require more costly, complete pavement
section reconstructions. Public Works staff has slightly modified the Street Saver's
recommended roadway segment list by grouping overlays, slurry seals, and reconstructions over
the next five (5) fiscal years to further optimize cost-effectiveness.

In the Council-adopted FY 2017-18 Capital Improvement Plan and Operating Budget, the Project
Description for Project PW-1718-01, Street and Road Projects, needs to be amended to
incorporate the following list of projects planned to be partially funded with RMRA account
revenues:

"Remove and repair failed pavement areas, mill where required, pave 2- inch thick asphalt overlay,
and restore striping and pavement makings along the following street segments:

1. 1st Avenue from Lincoln to Mission Street

2. 2nd Avenue from Lincoln Street to Dolores Street
3. 5th Avenue from Monte Verde Street to Dolores Street
4. 6th Avenue from Dolores Street to Lincoln Street
5. 8th Avenue from Forest Road to Turn Around
6. 8th Avenue from Scenic Road to Carmelo Street
7. 12th Avenue from Monte Verde Street to San Carlos Street
8. 13th Avenue from Camino Real to Monte Verde Street
9. Dolores Street from Santa Lucia Avenue to Franciscan Way
10. Mountain View from Santa Fe Street to Forest Road
11. Oak Knoll Way from Forest Road to Turn Around
12. Ocean Avenue from Monte Verde Street to Junipero Avenue
13. Rio Road from Junipero Avenue to Santa Lucia Avenue
14. San Carlos Street from 13th Avenue to Santa Lucia Avenue
15. Scenic Road from 8th Avenue to Block A3 S End

Construction is anticipated from March through May 2018. Consideration will be given to
potentially overlay Ocean Avenue at night and be completed before Memorial Day 2018. With the
proposed 2-inch overlays, the useful life is estimated at 10 years along aerials (Ocean Avenue
and Rio Road) and 15-20 years along residential and collector streets."

Accordingly, staff recommends that Council adopt the attached resolution, which amends the
Fiscal Year 2017-2018 Capital Improvement Plan and Adopted Budget to include the above
mentioned list of projects to be funded by SB 1.

FISCAL IMPACT:
The City is estimated to receive $114,821 in Fiscal Year 2017-2018 from the HUTA ($93,164)
and from the RMRA ($21,657), of which $112,150 was already recognized as revenue as part of
the City's adopted budget. The RMRA is estimated to increase to $64,967 in Fiscal Year 2018-
2019, with the phasing in of additional taxes and new vehicle fees.

In order to receive RMRA funding, the City must annually expend from its General Fund for
street, road and highway purposes an amount not less than the annual average of its expenditures
from the its General Fund from fiscal years 2009-2010, 2010-2011 and 2011-2012. This is
known as the Maintenance of Effort ("MOE"), and the City's estimated MOE is $557,048. The
Fiscal Year 2017-2018 Adopted Budget included $632,000 in Measure D funds for street
projects; therefore the MOE requirement will be met.
PRIOR CITY COUNCIL ACTION:
N/A

Attachments:

Attachment 1_Resolution
Attachment 2_Street Map
 Attachment 1Attachment 1
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL

RESOLUTION NO. 2017-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AMENDING THE

FISCAL YEAR 2017-18 CAPITAL IMPROVEMENT PLAN AND ADOPTED BUDGET TO INCORPORATE A
LIST OF PROJECTS FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT

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 in order 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
the City of Carmel-by-the-Sea are aware of the projects proposed for funding in our community and which
projects have been completed each fiscal year; and

WHEREAS, the City must include a list of all projects proposed to receive funding from the Road
Maintenance and Rehabilitation Account (RMRA), created by SB 1, in the City budget, which must include a
description and location of each proposed project, a proposed schedule for the projects completion, and the
estimated useful life of the improvement; and

WHEREAS, the City will receive an estimated $21,657 in RMRA funding in Fiscal Year (FY) 2017-18
from SB 1; and

WHEREAS, the City used a Pavement Management System to develop and update the SB 1 project
list to ensure revenues are being used on the most high-priority and cost-effective projects; and

WHEREAS, funding from SB 1 will help the City maintain, overlay, rehabilitate, reconstruct, and/or
slurry seal 15 road segments throughout the City this year, and 202 road segments in the future; and

WHEREAS, the 2016 California Statewide Local Streets and Roads Needs Assessment found that the
Citys roadways are in fair condition, and SB 1 revenue will help us increase the quality of our overall pavement
network, and over the next decade, it will help bring our streets into an overall satisfactory to good condition;
and

WHEREAS, without revenue from SB 1, the City would have to continue some deferring road
improvement projects; and

WHEREAS, if the Legislature and Governor failed to act, City streets would have continued to
deteriorate, having many and varied negative impacts on our community; and

WHEREAS, cities and counties own and operate more than 81 percent of streets and roads in
California, and from the moment we open our front door to drive to work, bike to school, or walk to the bus
station, people are dependent upon a safe, reliable local transportation network; and

WHEREAS, rehabilitating the local street system provides well-paying construction jobs and boosts
local economies; and

WHEREAS, police, fire, and emergency medical services all need safe, reliable roads to react quickly
to emergency calls and a few minutes of delay can be a matter of life and death; and

WHEREAS, maintaining and preserving the local street system in good condition will reduce drive times
and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing,
 Attachment 1

which leads to reduce vehicle emissions thus helping the State achieve its greenhouse gas emissions
reductions goals; and

WHEREAS, restoring roads before they fail also reduces construction expenses and results in less
water pollution from site run-off; and

WHEREAS, the SB 1 project list and overall investment in our local street 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, positive co-benefits statewide.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA DOES HEREBY FINDS AND ORDERS THE FOLLOWING:

1. The foregoing recitals are true and correct.

2. The Project Description for Project PW-1718-01, Street and Road Projects in the FY 2017-18
Capital Improvement Plan and Adopted Budget is amended to incorporate the following list of projects
planned to be partially funded with RMRA account revenues:
"Remove and repair failed pavement areas, mill where required, pave 2- inch thick asphalt overlay, and
restore striping and pavement makings along the following street segments:
No. Street From To
1 1st Avenue Lincoln Street Mission Street
2 2nd Avenue Lincoln Street Mission Street
3 5th Avenue Monte Verde Street Delores
4 6th Avenue Dolores Street Lincoln Street
5 8th Avenue Forest Road Turn Around
6 8th Avenue Scenic Road Carmelo Street
7 12th Avenue Monte Verde Street San Carlos Street
8 13th Avenue Camino Real Monte Verde
9 Dolores Street Santa Lucia Avenue Franciscan Way
10 Mountain View Santa Fe Street Forest Road
11 Oak Knoll Way Forest Road Turn Around
12 Ocean Avenue Monte Verde Street Junipero Avenue
13 Rio Road Junipero Avenue Santa Lucia
14 San Carlos Street 13th Avenue Santa Lucia
15 Scenic Road 8th Avenue Block A3 S End
Construction is anticipated from March through May 2018. Consideration will be given to potentially
overlay Ocean Avenue at night and be completed before Memorial Day 2018. With the proposed 2-inch
overlays, the useful life is estimated at 10 years along aerials (Ocean Avenue and Rio Road) and 15-20
years along residential and collector streets."

3. The Funding Sources for Project PW-1718-01, Street and Road Projects in the FY 2017-18
Capital Improvement Plan and Adopted Budget are amended as follows:

Funding Source Budgeted Amount

Fair Share RSTIP $42,875
HUTA/Gas Tax 93,164
Measure D 632,000
Measure X 144,000
RMRA (SB 1) 21,657
Total $933,696
 Attachment 1

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this
3RD day of October, 2017 by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

SIGNED: ATTEST:

_______________________ _________________________
Steve G. Dallas, Mayor Ashlee Wright, City Clerk
Attachment 2