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May 19, 2026
ITEM TITLE
Road Maintenance: Adopt a List of Projects for Fiscal Year 2026-27 Funded by Senate Bill 1, the Road Repair and Accountability Act of 2017
Report Number: 26-0156
Location: Citywide
Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution approving the proposed list of projects for fiscal year 202 6-27 funded by the Road Maintenance and Rehabilitation Account created by Senate Bill 1: The Road Repair and Accountability Act of 2017.
SUMMARY
Pursuant to Streets and Highways Code Section 2034(a)(1), prior to receiving an apportionment of Road Maintenance and Rehabilitation Account funds from the State Controller in a fiscal year, a City must submit a list of projects proposed to be funded to the California Transportation Commission. Staff is recommending City Council adoption of a resolution approving the City’s Road Maintenance and Rehabilitation Account project list for fiscal year 2026-27.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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Each of the projects identified in the Road Maintenance and Rehabilitation Account project list for fiscal year 2026-27 has been or is in the process of being reviewed or will require review under CEQA at a future time in accordance with the State CEQA Guidelines and the City’s Municipal Code. This determination is predicated on State CEQA Guidelines Section 15004, which provides direction to lead agencies on the appropriate timing for environmental review.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Road Repair and Accountability Act of 2017 (Senate Bill 1, or “SB 1”) established the Road Maintenance and Rehabilitation Account (RMRA) which provides new funds to cities and counties throughout California to use for roadway maintenance and rehabilitation. SB1 increased per gallon fuel excise taxes, diesel fuel sales taxes and vehicle registration taxes, stabilized the fuel tax rates and provided for inflationary adjustments to rates in future years.
Required Annual Authorization
The RMRA local streets and roads allocations are intended to be focused on improving the overall condition of the municipality’s pavement condition. Once a municipality reaches an average Pavement Condition Index (PCI) of 80, other transportation related projects may be proposed. As of April 202 6, the City’s average PCI is 68 (good); therefore, RMRA funds should continue to be utilized specifically for roadway maintenance and rehabilitation.
Prior to receiving an apportionment of RMRA funds from the California Transportation Commission (CTC) in a fiscal year, the City must submit an adopted list of projects proposed to be funded with these funds to the CTC by July 1st each year. All projects proposed to receive the fiscal year funding must be adopted by resolution by the City Council at a regular public meeting for each fiscal year (Streets and Highway Code Section 2034(a)(1)). The adopted list must include a description and the location of each proposed project, the estimated useful life of the improvement, and a proposed schedule for the project’s completion.
The projected RMRA revenue for Chula Vista in fiscal year (FY) 202 6-27 is $ 7,895,697 (Attachment 1) and will be programmed with the adoption of the City’s FY 2026-27 CIP Program on May 19, 2026. The proposed project lists, STM0418 and STL0486 for FY 2026-27 (Attachment 2), include public roadway segments with PCI ratings be tween 21 to 74 that are recommended for rehabilitation treatment, and segments with PCI ratings between 75 to 92 that are recommended for maintenance treatment. The overall City average PCI is projected to increase as these projects and other paving projects with TransNet and other funding are completed.
The RMRA also requires that the City submit an annual expenditure report for all active and completed projects funded by the RMRA. The annual report will provide details on the projects completed to date and any updates to the original listing. This is the tenth year in which the City is receiving SB 1 funding , and as such, funding will enable the City to supplement the road maintenance and rehabilitation efforts needed on streets throughout the City.
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The following are the previously adopted SB1 RMRA projects, including status:
PROJECT STATUS
FY 2017-18 (CIP STM0395) Completed
FY 2018-19 (CIP STM0396) Completed
FY 2019-20 (CIP STM0400) Completed
FY 2020-21 (CIP STM0401) Completed
FY 2021-22 (CIP STL0457) Closeout Phase
FY 2021-22 (CIP STM0410) Construction Phase
FY 2022-23 (CIP STM0412) Construction Phase
FY 2022-23 (CIP STL0460) Design Phase
FY 2023-24 (CIP STL0465) Design Phase
FY 2023-24 (CIP STM0413) Design Phase
FY 2024-25 (CIP STL0472) Design Phase
FY 2024-25 (CIP STM0403) Design Phase
FY 2025-26 (CIP STL0477) Design Phase
FY 2025-26 (CIP STM0415) Design Phase
The projects proposed for adoption in FY 2026-27, CIP STL0486 - RMRA Pavement Maintenance FY 2026-27 and CIP STM0418 - RMRA Pavement Rehabilitation FY 2026-27, are estimated to start construction work in Spring 2028 with completion by Spring 2029.
Maintenance of Effort [Streets and Highways Code Sec. 2036] The RMRA program contains a local agency Maintenance of Effort (MOE) requirement that applies to funds allocated through the RMRA. Similar to the existing requirements for the Gas Tax and TransNet, the RMRA MOE requirement ensures that these new funds do not supplant existing levels of City and County discretionary revenue spending on streets and roads. For RMRA, the City must maintain discretionary fund spending for street, road, and highway purposes at no less than the average of fiscal years 2009 -10, 2010- 11, and 2011 -12, excluding one-time funds. The RMRA MOE for Chula Vista is $4,515,412 (Attachment 3).
The City anticipates meeting the MOE requirement for FY 2026-27.
The State Controller may perform audits to ensure compliance with these MOE rules. If the State Controller determines that the City has not met its MOE, the City will be required to reimburse the state for the funds it received during that fiscal year, although the City may expend during that fiscal year and the following fiscal year a total amount that is sufficient to comply. Any funds withheld or returned as a result of a failure to comply will be reapportioned to the other counties and cities whose expenditures are in compliance.
Due to this requirement, the City established a separate account for RMRA funds within the Gas Tax Account.
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the bo undaries of the property, which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
This action relates to funds to be received and expenditures to be incurred in fiscal year 202 6-27, resulting in no fiscal impact in the current year.
ONGOING FISCAL IMPACT
Projected RMRA revenues and expenditures totaling $ 7,895,697, along with any remaining funds from previously completed RMRA projects, are incorporated into the FY 2026-27 Capital Improvement Program which will be presented to the City Council as part of the City Manager’s Budget on May 19, 202 6. No additional impact to the RMRA Fund is anticipated in fiscal year 2026-27. Any variance between actual RMRA allocations and the estimates used to develop the CIP will be addressed through the City’s Quarterly Financial Report process.
Upon completion, the improv ed street segments will be incorporated into the Public Works Department’s routine street maintenance program, which is funded annually through the department’s operating budget.
These improvements are aligned with the City’s long -term pavement preservatio n strategy, which is designed to reduce the need for more costly repairs in the future.
ATTACHMENTS
1. Local Streets and Roads – Projected Revenues (Jan 2026)
2. RMRA List of Projects for FY2026-27
3. RMRA Maintenance of Effort (Aug 2017)
Staff Contact:
Luis Schaar – Director of Engineering/City Engineer
Eddie Flores – Assistant Director of Engineering/City Traffic Engineer Patrick Moneda – Principal Civil Engineer