In April 2017, Governor Brown signed into law Senate Bill 1, which increases the vehicle fuel tax by $0.12 and the diesel excise tax by $0.20 per gallon, SB1 also implements a new transportation vehicle fee based on vehicle value and an annual vehicle registration fee for zero-emission vehicles. 

With SB1, the City is anticipated to receive approximately $1.2 million for transportation funding in Fiscal Year 2017-18 and receive $3.1 million in Fiscal Year 2018-19. Additionally, for a City to be eligible for funding, the California Transportation Commission (CTC), the lead administrative agency tasked with oversight of SB1, is requesting for cities to formally submit FY2017-18 Project Lists for their administrative review and adoption.

Project Lists are capital improvement lists detailing SB1 fund expenditures, including such information as project name, scope, schedule and other pertinent construction data. As per the attached FY2017-18 City’s Project List, the City is planning on using SB1 funds for the rehabilitation of Westminster Avenue and Chapman Avenue.  Both segments were included in the City’s FY 2017-18 Capital Improvement Plan.

There is no impact to the General Fund. The City is projecting to receive $2.1 million in new Gas Tax revenue (Fund 062) for Fiscal Year 2017-18. 

It is recommended that the City Council:

• Adopt the attached Resolution approving the amendment of the Fiscal Year 2017-18 Budget incorporating a List of Projects to be funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 and appropriate related funding.

     Sr. Administrative Analyst