Staff Report
City Council
Item No. 3.F
Meeting Date: May 13, 2026
From: John A. Corella, Director of Public Works
Title: Resolution Adopting the City's FY 2026-27 SB-1 (RMRA) Projects RECOMMENDATION:
To approve a resolution adopting the city’s FY 2026-27 Capital Improvement Program projects funded by Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017.
BACKGROUND:
Prior to Senate Bill 1 (SB-1), cities and counties across California delayed or cancelled roadway improvement projects due to insufficient funding, resulting in deferred maintenance and declining roadway conditions. The 2016 California Statewide Local Streets and Roads Needs Assessment found that, on average, local streets were in an “at-risk” condition, trending toward failure.
On April 28, 2017, Governor Brown signed SB-1, known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical needs for both state highways and local streets and roads, known as the Local Streets and Roads Program (LSRP). SB-1 generates revenues through increased per gallon fuel excise taxes, diesel fuel sales taxes, vehicle registration fees and provides for inflationary adjustments on future tax rates.
A portion of these revenues is deposited into the Road Maintenance and Rehabilitation Account (RMRA), from which funds are apportioned to cities, including Cathedral City, by formula for road maintenance, rehabilitation, and critical safety projects.
SB-1 guidelines require that all RMRA-funded projects be included in the city’s Capital Improvement Program (CIP). Accordingly, on September 13, 2017, the City Council adopted Resolution No. 2017-43, incorporating RMRA-funded projects into the city’s 5-Year CIP.
At the April 16, 2025, City Council special meeting for the Public Works Staffing and Budget Review, staff presented the proposed RMRA-funded projects included in the city’s 5-Year CIP (FY 2026-30) for review and discussion.
On May 14, 2025, the City Council approved Resolution No. 2025-07, programming RMRA funding to initiate and/or complete the following projects in FY 2025–26:
East Palm Canyon Drive Master Underground Plan (MUP), Widening, and Traffic Signal at Cree Road Intersection (Construction)
Whitewater Area Street Rehabilitation Phase II (Construction) Landau Boulevard Public Alley Reconstruction (Design)
On March 25, 2026, staff presented an update on FY 2025–26 CIP projects and identified delays in the East Palm Canyon Drive MUP, Widening, and Traffic Signal at Cree Road Intersection project. This project was programmed for construction in FY 2025–26 using a combination of RMRA and Maintenance of Effort (MOE) funds. Due to delays related to utility coordination, and permitting, construction could not proceed within the fiscal year, placing the city at risk of not meeting its annual MOE expenditure requirement.
To maintain compliance with MOE requirements, staff recommended advancing an alternative eligible project. The Sunny Sands Neighborhood Pavement Reconstruction Project, originally programmed in the 5-Year CIP for FY 2027–28 and funded with RMRA and MOE funds, was identified and advanced to FY 2025–26.
On April 22, 2026, the City Council authorized award of a construction contract for the Sunny Sands Neighborhood Pavement Reconstruction Project. Because construction bids were lower than anticipated, the project was fully funded with MOE funds. As a result, the RMRA funds originally programmed for this project remain available and will be reprogrammed in the next biennial budget to other eligible CIP projects.
DISCUSSION:
New Projects for FY 2026-27
Staff proposes one (1) new RMRA-funded project for FY 2026–27, identified as Project 1 in Resolution No. 2026-___, attached to this staff report:
Avenida El Mundo and Avenida El Pueblo Street Reconstruction Staff propose the reconstruction of pavement on Avenida El Mundo and Avenida El Pueblo from McCallum Way to Ramon Road. The current Pavement Condition Index (PCI) ratings are 55 for Avenida El Mundo. Reflecting fair condition, and 48.5 for Avenida El Pueblo, reflecting poor condition, indicating the need for rehabilitation to prevent further deterioration.
The preliminary estimated cost is $1,200,000.
This project was originally programmed with $460,000 in Community Development Block Grant (CDBG) funds and $740,000 in RMRA funds. However, FY 2026–27 CDBG allocation, announced on April 3, 2026, was lower than anticipated. As a result, the funding plan has been revised to $385,996 in CDBG funds and $814,004 in RMRA funds.
The project was included in the CDBG Annual Action Plan (AAP), which was introduced to the City Council on March 11, 2026. A public hearing is scheduled for tonight at the May 13, 2026, City Council meeting to consider approval of the AAP.
Previously Adopted Projects for FY 2026-27
Staff are proposing to continue or initiate previously adopted RMRA funded projects from Resolution No. 2025-07 in FY 2026-27. The following projects are listed in Resolution No. 2026-__ attached to this staff report:
Landau Boulevard Public Alley Reconstruction (Construction) Design for this project, funded with RMRA in FY 2025–26, is currently underway and anticipated to be completed by the end of FY 2025–26. Construction is proposed for FY 2026–27 and is expected to be fully funded with available RMRA funds.
The public alley construction was originally programmed in the 5-Year CIP with an estimated cost of $1,010,000; however, as design progresses, the cost estimate has been revised to approximately $1,300,000.
The project area is bounded by Vista Chino (north), 30th Avenue (south), Landau Boulevard (west), and Avenida La Paz (east), and provides access to both multifamily and single-family residences. Improvements include removal and reconstruction of the existing alley pavement.
The Landau Boulevard Public Alleyway Reconstruction is listed as Project 2 in the SB-1 Resolution No. 2026-__ attached to this staff report.
East Palm Canyon Drive Widening Project
This project is part of the broader East Palm Canyon Drive Widening, Master Underground Plan (MUP), and Traffic Signal at Cree Road project, currently under design.
The proposed project includes widening the southside of East Palm Canyon Drive from 32 feet to 47 feet, with the addition of a sidewalk on the section from Canyon Plaza (West) to the western city limits. The widening will accommodate east bound traffic and wider bicycle lane widths, improve safe pedestrian movement, and improvements to the current line-of- sight deficiencies along the westbound approach into Cathedral City from Palm Springs.
Originally programmed for construction in FY 2025–26, the project has been delayed due to utility coordination with Southern California Edison (SCE) and permitting requirements with the California Department of Transportation (Caltrans). Design is anticipated to be completed by the end of FY 2025–26.
This project was programmed in the 5-Year CIP with an initial construction cost estimate of $912,000 for roadway widening, to be funded exclusively with RMRA funds. As design nears completion, the estimated cost for the widening component has been revised to $1,133,598.
The East Palm Canyon Widening Project is re-listed as Project 3 in the SB-1 Resolution No. 2026-__ attached.
Summary
All proposed RMRA-funded projects are included in the city’s 5-Year CIP previously presented to the City Council. SB-1 requires the city to annually adopt a resolution identifying projects for funding in the upcoming fiscal year. Upon approval, the resolution will be submitted to the California Transportation Commission (CTC) in compliance with LSRP requirements.
City staff recommend that City Council approve the attached resolution adopting the city’s FY 2026-27 Capital Improvement Program projects funded by Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017, and to approve the list of projects selected.
FISCAL IMPACT:
Approval of the recommended action does not result in an immediate fiscal impact, as each project will be brought to the City Council separately for funding authorization.
To remain eligible for RMRA funding, the city must meet its Maintenance of Effort (MOE) requirement by maintaining an average annual General Fund expenditure of approximately $905,000 for street-related purposes, based on FY 2009–10 through FY 2011–12.
The updated estimated cost for the three (3) programmed projects for FY 2026-27 is in the amount of $3,247,602, as shown in the table below.
Avenida El Pueblo and Avenida El Mundo Street Reconstruction $814,004 Landau Boulevard Public Alley Reconstruction $1,300,000 East Palm Canyon Drive Widening $1,133,598
Total Estimated Cost for FY 26/27 SB-1 Projects $3,247,602 The city received approximately $1.35 million in RMRA revenue in FY 2024–25 and is projected to receive approximately $1.36 million in FY 2025–26, based on estimates from the California Department of Finance.
The current RMRA fund balance, including existing encumbrances, is approximately $2.7 million. Projected FY 2026–27 RMRA revenues are approximately $1.45 million. Combined, available and projected RMRA funds total approximately $4.15 million, which is sufficient to support the proposed FY 2026–27 projects.
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. 5-Year CIP SB-1 Project Maps for FY 2026-27
2. Resolution No. 2026-___