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

For a City to be eligible for SB1 apportionments, the California Transportation Commission, the lead administrative agency tasked with oversight of SB1, requires cities to formally submit annual Project Lists for administrative review and adoption. For Fiscal Year 2019-20, the City is anticipating receiving approximately $2.6 million in SB1 revenues for transportation projects.

Project Lists are capital improvement lists detailing SB1 fund expenditures, including project name, scope, schedule and other construction data. As per the attached Resolution, SB1 funds would be used for constructing the Cannery-Imperial Storm Drain line, from Garden Grove Boulevard to Gilbert Street. The estimated useful life for this asset is approximately 50 years. Construction is expected to start in August 2019 with completion in January 2020. This project will also be reflected in the City’s FY 2019-20 Capital Improvement Plan.

There is no impact to the General Fund. The City is projecting to receive $2.6 million in new Gas Tax revenue (Fund 062) for Fiscal Year 2019-20. 

It is recommended that the City Council:

• Adopt the attached Resolution approving the Fiscal Year 2019-20 List of Projects, funded by Senate Bill 1: The Road Repair and Accountability Act of 2017.

By:  Ana V. Neal, Sr. Administrative Analyst