ADMINISTRATIVE REPORT
MEETING DATE: May 27, 2026 AGENDA CATEGORY: Consent - Resolutions TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: April 28, 2026
SUBJECT: Resolution approving the FY 2026-27 Capital Project List funded by Senate Bill 1 the Road Repair and Accountability Act of 2017 and authorizing the Public Works Director to submit the project list to the California Transportation Commission.
RECOMMENDATION:
Staff recommends adoption of the resolution.
BACKGROUND:
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was signed into law in April 2017, by the Governor to address the significant multi -modal transportation funding shortfalls statewide. This legislation provides additional annual funding that allows the City to continue to address City Council's goal of enhancing the City's transportation network.
The Road M aintenance and Rehabilitation Account (RMRA), established by SB 1, is funded through a combination of fuel excise taxes, diesel sales tax revenues, and vehicle registration -based fees. These revenue sources are adjusted annually based on inflation and cont inue to serve as a primary funding mechanism for local street and road improvements.
The pavement management system prioritizes the need for maintenance, rehabilitation and reconstruction of streets. Pavement condition index (PCI) is a numerical value between 0 and 100, which is used to indicate the condition of a specific section of road pavement. The projects proposed for FY 2026- 27 SB1 funding identified on Exhibit A, currently have a PCI of 62 or less.
The most recent measurement of the Citywide PCI average is 65, as measured in 2020. The City's goal is to reach an average PCI of 80 or greater. If the City reaches a PCI of 80, the City may spend its RMRA apportionment on other transportation priorities other than priorities outlined in legislation.
The City's allocation of RMRA funds for FY 2026-27 is approximately $11.7 million per estimates provided by the California Local Government Finance Almanac. This funding will provide the City with the unique opportunity to increase the investment in the Ci ty's transportation network, increase the City’s average PCI, and further Council's goal of enhancing the City's transportation network. The guidelines for RMRA funds require that each agency adopt its project list via resolution. In addition, the Californ ia Transportation Commission (CTC) has indicated that FY 2026-27 SB 1 project lists are to be submitted to the CTC by July 1, 2026. Proposed projects are listed on Exhibit A of the proposed resolution. In addition, the proposed resolution approves the proposed FY 2026-27 project list and authorizes the Public Works Director to submit said project list to the CTC by the deadline. These projects will be proposed with the City's FY 2026-27 capital improvement budget.
FISCAL IMPACT:
The action to ratify this resolution will have no impact on the General Fund, if successful in the process to
secure fund s this action will reduce the need for General Fund support of these outlined Road Improvements. This action to collect and leverage up to $11 million could have a net savings to the General Fund.
COUNCIL GOAL:
Reliable Infrastructure
Innovative and Efficient City Government
ATTACHMENTS:
1. Resolution
2. Exhibit A