Title
Consideration of Gas Tax Expenditures in Fiscal Year 2019 for New Paving-Related Equipment Purchase
Body
SB 1, which became effective in November of 2017, dedicates approximately $1.5 billion per year in new formula revenues apportioned by the State Controller to California cities and counties for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
As part of the reporting process for SB1 (gas tax) revenues received by the City, the California Transportation Commission (CTC) requires that cities submit a list of proposed projects by May 1st each year, and that the list be 'adopted' through a formal City Council action. The CTC does not require City Council action for modifications made to the submitted projects list.
With the recent defeat of Proposition 6, which would have repealed SB1, the Public Works Department is looking at options for equipment purchasing in order to facilitate the increased amount of road maintenance work that can be performed in-house by staff. With SB1 funding received this current fiscal year, the Public Works Department rented a cold milling machine (grinder) for four months at a cost of approximately $30,000/month. The grinder greatly increased the amount of road maintenance work that was previously able to be performed in-house, with the added benefit of upgrading local roads that otherwise would have had to wait years to be improved.
There are three pieces of equipment that the Public Works Department is looking to purchase in order to expand paving operations as follows:
Cold Milling Machine (Grinder) $698,500 (rent-to-own); or $635,000 (purchase)
Trailer for Grinder $118,000
Tractor Truck for Trailer $185,764
Total $1,002,264; or $938,764
It is noted that the prices indicated are estimates and actual prices will vary based on bid results received as part of the purchasing process. Unless provided direction to the contrary, the Public Works Department intends to ...
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