Title
Adopt a resolution:
a. Approving the Senate Bill 1 (SB 1) 5-Year Project List for Years 2021-2025; and
b. Authorizing the Resource Management Agency Director to submit the list to the California Transportation Committee (CTC).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution:
a. Approving the Senate Bill 1 (SB 1) 5-Year Project List for Years 2021-2025; and
b. Authorizing the Resource Management Agency Director to submit the list to the California
Transportation Committee (CTC).
SUMMARY:
The State provided an estimate that Monterey County would receive $8.4 million from SB 1 funding in FY 2020-21. Prior to receiving an allocation of funds, cities and counties are required annually to provide to the CTC a list of projects to be financed by SB 1 funds. According to the California State Association of Counties (CSAC), the project list for FY2020-21 must be submitted by May 1, 2020.
As of March 2020, the Resource Management Agency (RMA) is anticipated to have a total of $17.3 million of SB 1 funds available for projects for FY 2020-21; which is made up of an unallocated balance of $8.9 million and the $8.4 million the County is expected to receive in FY 2020-21. For FY 2020-21, RMA is allocating $16.9 million of SB 1 funds. If the expected revenue is forecasted to be reduced due to the COVID 19 pandemic, staff will re-prioritize and defer projects to the following years. The $16.9 million is based on existing workload/priorities and staff resources available to manage projects. Staff uses the 2019 Pavement Management Program as a guide for programming projects unless the Board directs alternative priorities.
At this time, Gloria Road/Iverson Road/Johnson Canyon Road, which is a joint project with the City of Gonzales and Salinas Valley Solid Waste Authority, is the priority on the list of projects. The River Road projects are part of the Wine Corridor that was promised through Measure X and are being partially funded by SB 1. Also, staff is partnering with the City of Salinas on a couple of projects: a sidewalk project that includes County-owned lands along Laurel Drive and a rehabilitation of Alisal Road from Hartnell Road to the City Limit, which Staff is planning to fund with SB 1, Transient Occupancy Tax (TOT) and/or Measure X. RMA is planning to fund other basic road maintenance activities and projects such as street sweeping, drainage/ditch maintenance, vegetation removal/mowing, and road repairs.
Exhibit A to the resolution (Attachment A) provides a 5-year list of projects that are to be funded by SB 1, and estimated timing. Attachment B provides a list of projects and estimated costs for FY 2019-20 with their status (% complete). Projects scheduled in FY 2019-20 that were not completed will continue into FY 2020-21 along with some new projects added to that list.
The project list is used as a planning document by RMA. The scheduling of projects depends on when and how much funding is received, and resources (project management capacity) to implement the projects. Once submitted, the funds will not be limited to the list of projects. Monterey County has the flexibility to fund projects based on their needs and priorities as long as the projects are consistent with the eligible uses. When funds are received, environmental review for the projects is conducted pursuant to the California Environmental Quality Act (CEQA).
DISCUSSION:
In April 2017, SB 1 was approved, making funds available for road repair and maintenance. This action was challenged and placed onto the November 2018 ballot asking voters to repeal the State Legislation. Funding from SB 1 was placed on hold pending resolution. Proposition 6 failed thereby reinstating SB 1 funding.
It was initially estimated that Monterey County’s share would be about $10 million annually. This calculation is based on a complex formula that includes road miles, sales tax, etc. Monterey County is estimated to received $8.4 million of SB 1 funding for Fiscal Year (FY) 2019-20, $6 million has been received so far. For FY 2020-21, Monterey County is estimated to receive $8.4 million.
The revenue allocations to counties will come through the Road Maintenance and Rehabilitation Account (RMRA). Eligible uses under this account include, but are not limited to: road maintenance and rehabilitation; safety projects; railroad grade separations; complete street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects in conjunction with any other allowable project; traffic control devices; and, to satisfy a match requirement to obtain state or federal funds for projects.
Prior to receiving an allocation of funds, cities and counties are required annually to provide to the CTC a list of projects to be financed by SB 1 funds. For FY 2019-20, the RMA submitted a list to the CTC in May 2019. According to the California State Association of Counties (CSAC), the project list for FY 2020-21 must be submitted by May 1, 2020.
FINANCING:
Prior to receiving an apportionment of funds under SB 1, the County is required to submit to the CTC a list of projects proposed to be funded with SB 1 revenue pursuant to an adopted resolution.
Where possible, staff intends to use SB 1 funds as leverage/local matches for federal and/or state grants. Staff will also coordinate with cities for projects that benefit both jurisdictions.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
A key objective has been to find funding sources for much needed maintenance to the County’s transportation infrastructure. SB 1 helps to fulfill this objective. Combining these funds with federal and/or state grants will extend funding even further. The recommended action supports the following Board of Supervisors’ Strategic Initiative below:
__ Economic Development
__ Administration
__ Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Jonathan L. Pascua, P.E., Senior Civil Engineer, (831) 755-8963
Approved by: Randell Ishii, M.S., P.E., P.T.O.E., Chief of Public Works Facilities
Approved by: Carl P. Holm, AICP, RMA Director
The following attachments are on file with the Clerk of the Board:
Attachment A - Resolution
Exhibit A - SB 1 5-Year Project List
Attachment B - SB 1 Funded Projects FY19/20