DATE: 06/18/2025
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2025-226
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION NO. 2025-079, AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO RECEIVE AND ACCEPT SENATE BILL-1 ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 REVENUE FOR FISCAL YEAR 2025-2026 IN AN ESTIMATED AMOUNT OF $4,243,157, FOR THE FISCAL YEAR 2025-2026 C EXECUTIVE SUMMARY:
This staff report asks the City Council to consider acceptance of Senate Bill-1, Road Repair and Accountability Act of 2017, revenue to maintain and improve streets within the City of Corona as part of the Street Maintenance and Rehabilitation Program.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Resolution No. 2025-079, authorizing the City Manager, or his designee, to receive and accept Senate Bill-1 Road Repair and Accountability Act of 2017 revenue for Fiscal Year 2025-2026 in an estimated amount of $4,243,157, for the Fiscal Year 2026 Citywide Street Pavement Rehabilitation Capital Improvement Project No. ST-2025-26.
b. Accept $4,243,157 in Fiscal Year 2025-2026, as awarded by the State, and authorize an appropriation in the amount of $287,357 for Fiscal Year 2026 from the unappropriated Road Maintenance and Rehabilitation Fund 221 to the Citywide Street Pavement Rehabilitation Capital Improvement Project No. ST-2025-26. c. Authorize an estimated revenue increase in the amount of $132,640 for Fiscal Year 2026 in the Road Maintenance and Rehabilitation Account Fund 221 for reimbursement by the State, per the Road Repair and Accountability Act of 2017 - Local Streets and Roads Funding Amended Annual Reporting Guidelines.
BACKGROUND & HISTORY:
On April 28, 2017, the Governor signed Senate Bill-1 (SB 1) (Beall, Chapter 5, Statutes of 2017), known as the Road Repair and Accountability Act of 2017. SB 1 increased pergallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees, and it provides for inflationary adjustments to tax rates in future years. These tax revenues can be used to address basic road maintenance, rehabilitation, and critical safety needs on roads throughout the State of California.
Beginning November 1, 2017, the State Controller (Controller) deposited various portions of this funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding is apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. For a detailed breakdown of RMRA funding sources and the disbursement of funding, see Exhibit “4.” Streets and Highways Code (SHC) Section 2032.5(a) articulates the general intent of the legislation - that recipients of RMRA funding be held accountable for the efficient investment of public funds to maintain local streets and roads.
This accountability to the people occurs through performance goals that are tracked and reported. The California Transportation Commission (CTC) tracks and records through the expenditure report.
Pursuant to SHC Section 2030(a), the objective of the Local Streets and Roads Program is to address deferred maintenance on the local streets and road system through the prioritization and delivery of basic road maintenance and rehabilitation projects and critical safety projects. Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures.
SB 1 funding provides the City of Corona with increased funding through the Local Streets and Roads (LSR) Program. SB 1 prescribes certain uses for these funds, including:
Road maintenance and rehabilitation
Safety projects
Railroad grade separations
Complete street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project Traffic control devices
ANALYSIS:
Staff has reviewed the detailed SB 1 requirements and proposes utilizing the City’s Fiscal Year 2025-2026 SB 1 apportionment on the Fiscal Year 2026 Citywide Street Pavement Rehabilitation Capital Improvement Project No. ST-2025-26.
The Citywide Street Pavement Rehabilitation Project, No. ST-2025-26 rehabilitates major streets, including Sixth Street from El Sobrante Road to Promenade Avenue and Eagle Glen Parkway from Bedford Canyon Road to Temescal Canyon Road.
The project also consists of preventive maintenance and pavement rehabilitation of local streets, as shown in Exhibit “2” and listed in Exhibit “3.” This project is anticipated to be completed by July 2026. The rehabilitated roads will have an estimated useful life of either 10 years for preventative maintenance treatment or 20 years for rehabilitating or reconstructing streets. Together with the supporting documentation, a Proposed Project List must be submitted to CTC by July 1, 2025.
FINANCIAL IMPACT:
Approval of the recommended actions will be consistent with the allocation provided by the State. For the Fiscal Year 2026, in addition to the $4,243,157 estimated revenue from the State’s SB 1 program, an estimated $21,760,055.34 will also be allocated from a combination of sources as outlined in the table below. Namely, a combination of Fiscal Year 2025 currently available funding and Fiscal Year 2026 new funding will be utilized to fund the project. The RMRA project budget for Citywide Street Pavement Rehabilitation Capital Improvement Project No. ST-2025-26 will be adjusted from the initial proposed amount of $3,955,800 to the revised amount of $4,243,157 in the RMRA Fund 221. At the same time, estimated revenues will be increased by $132,640 to adjust from the initial proposed amount of $4,110,517 to the revised amount of $4,243,157 in the Road Maintenance and Rehabilitation Account Fund 221.
The estimated costs for the project are outlined as follows:
Construction…………………………………………….…….………..……….……………..$2
2,224,967.81
Inspection, Staff, and Material
Testing……………………….……….…………………..$1,555,747.75
Contingency…………………………………………………….…………………………………
$2,222,496.78
Total Construction
Cost…………………………………………….……………………….$26,003,212.34
The difference in cost is funded in the Fiscal Year 2026 Capital Improvement Project Budget as follows:
Project
No.
Project
Name
Fund FY 2026
New Funding
FY 2025
Available Funding
Total
Amount
ST2021-
01 Citywide
Street
Pavement
Rehabilitation
RMRA
221
- $4,394,994.00 $4,394,994.00
Subtotal - $4,394,994.00 $4,394,994.00
ST2025-
26 Citywide
Street
Pavement
Rehabilitation
(2025)
Measure
X120
$2,150,000.00 $596,888.74 $2,746,888.74
ST2025-
26 Citywide
Street
Pavement
Rehabilitation
(2025)
RMRA
221
$4,243,157.00 $3,999,439.00 $8,242,596.00
ST2025-
26 Citywide
Street
Pavement
Rehabilitation
(2025)
Measure
A 227
$5,810,000.00 $4,808,733.60 $10,618,733.60
Subtotal $12,203,157.00 $9,405,061.34 $21,608,218.34
Project Grand Total $12,203,157.00 $13,800,055.34 $26,003,212.34 ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Receiving and accepting SB 1 funds is a ministerial action, and there is no possibility that approving this resolution will have a significant effect on the environment. Therefore, no further environmental analysis is required.
PREPARED BY: MEGAN WOODALL, ASSISTANT PROJECT MANAGER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2025-079
2. Exhibit 2 – Location Map
3. Exhibit 3 – List of Streets
4. Exhibit 4 – Projected Fiscal Year 2025-2026 Revenues