CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/17/2025
DEPARTMENT: Public Works
SUBJECT:
ADOPTION OF LIST OF PROJECTS FUNDED BY SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT
RECOMMENDED ACTION(S):
1. Approve Senate Bill 1: The Road Repair and Accountability Act Project List forms for Fiscal Year 2025-26.
2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, CALIFORNIA, CONCERNING THE LIST OF PROJECTS FOR FISCAL YEAR 2025/26 FUNDED BY SB1: THE
ROAD REPAIR AND ACCOUNTABILITY ACT.
3. Authorize the Director of Public Works to forward the Fiscal Year 2025-26 project list to the California Transportation Commission, as required under Road Repair and Accountability Act of 2017.
EXECUTIVE SUMMARY:
Senate Bill 1: The Road Repair and Accountability Act (“SB1”), enacted in 2017, established the Road Maintenance and Rehabilitation Account (“RMRA”), a funding source for California’s transportation system intended to address deferred maintenance on state highways and local roadway systems. As part of the SB1 eligibility requirements, the City is required to submit a resolution detailing the City’s road maintenance and rehabilitation projects for the upcoming fiscal year to the California Traffic Commission to qualify to receive SB1 funding (“Resolution”).
The following projects may be partially or fully funded by SB1 funds:
•Annual Residential Slurry Seal: Zone D and Zone E.
•Street Resurfacing: portions of Lake Forest from Bake Pkwy to I-5 Fwy. •Street Resurfacing: portions of El Toro Road from Glenn Ranch Road to I-5. •Street Resurfacing: portions of Bake Parkway from Rancho Parkway South to South Pointe Drive, and
•Street Resurfacing: El Toro from Jeronimo to Trabuco.
The Governor’s budget projections in January 2025 anticipated SB1 funding for the City of Lake Forest to be approximately $2,280,423. Staff recommends the City Council approve SB1 Project List forms for FY 2025-26, adopt the proposed Resolution, and authorize the Acting Director of Public Works to forward the required documents to the California Transportation Commission, as required under the Road Repair and Accountability Act of 2017.
BACKGROUND:
SB1 was passed by the California Legislature and signed into law in 2017. SB1 raises over $5 billion per year for transportation infrastructure improvements in the RMRA state fund. SB1 funding is a population-based allocation funded by the following taxes enacted by the law: 12-cent gasoline excise tax, 20 cent diesel fuel excise tax, state transportation improvement fees, and transportation loan repayments. On October 18, 2017, the California Transportation Commission (“CTC”) adopted the Amended Annual Reporting Guidelines for 2017 Local Streets and Roads Funding related to SB1. To receive funding under the SB1 program, the City must submit a list of projects to the CTC at the beginning of each fiscal year, as well as project expenditure reports at the end of each fiscal year.
DISCUSSION:
To remain eligible for SB1 funding, the City is required to submit an initial project list to the CTC by July 1, 2025 (Attachment 1), for the upcoming fiscal year. SB1 allows the City to substitute different projects as necessary during the fiscal year provided changes are reported in the project expenditure reports at the end of each fiscal year. Staff will monitor the funding projections and utilize these program provisions to adjust the City’s projects to match the actual funding available.
The 2025-2032 Capital Improvement Plan (“CIP”) includes $8,700,000 for Street Resurfacing and Slurry Seal projects in Fiscal Year 2025-26 (Attachment 2).
There are four funding sources utilized for the Street Resurfacing and Slurry Seal projects: Measure M2 ($2,100,000), SB1 ($3,025,000), City Road Infrastructure Fund ($3,100,000), and Solid Waste Pavement Impact Fund ($475,000).
The Measure M2 funding is based on an Orange County projection. The SB1 funding is based on the Governor’s budget projections at the time of the proposed 2025-2032 CIP budget creation. Because the Governor’s budget is periodically updated, the City may need to adjust the revenue projection for SB1 funds during Fiscal Year 2025-26. The January 2025 budget projection for Lake Forest SB1 funds is $2,280,423. The Infrastructure Reserve funding is a portion of one-time funds approved by the City Council. Staff will continue to monitor any changes to these funding projections. These funding sources may cover a portion of each project or an entire project.
The City’s adopted CIP budget refers to SB1 as a source of funding for the Street Resurfacing and Slurry Seal Projects. SB1 requires that each project include its estimated useful lifespan and a description of its specific location. To ensure the City’s SB1 projects meet the required criteria, the proposed Resolution (Attachment 3) includes the following language adding the estimated useful life, project limits, and construction dates for the following projects:
Annual Slurry Seal, Zone D (26S01A) - The slurry sealing of non-arterial public streets in Zone D, the neighborhood between Trabuco Rd. and Portola Parkway, North of Lake Forest Drive. This project would provide an estimated useful life of 7 to 10 years. Construction tentative start date is in August 2025 with a tentative end date in March 2026.
Annual Slurry Seal, Zone E (27S01C) - The slurry sealing of non-arterial public streets in Zone E, the neighborhood between Trabuco Rd. and Portola Parkway, South of Lake Forest Drive. This project would provide an estimated useful life of 7 to 10 years. Pre-construction design, document preparation and estimating have a tentative start date in June 2026 and a tentative end date in March 2027.
Street Resurfacing: El Toro from Jeronimo to Trabuco - This road rehabilitation project would grind and overlay El Toro Road from Jeronimo to Trabuco. This project would provide an estimated useful life of 10 to 15 years. Construction tentative start date is in September 2025 with a tentative end date in September 2026.
Street Resurfacing: portions of Lake Forest from Bake Pkwy to I-5 Fwy - The road rehabilitation project would grind and overlay portions of Lake Forest Drive from Bake Pkwy to I-5 Fwy. This project would provide an estimated useful life of 10 to 15 years. Pre-construction design, document preparation and estimating started in February 2023 with a tentative completion date in December 2027.
Street Resurfacing: portions of El Toro Rd from Glenn Ranch Rd to I- 5 - The road rehabilitation project would grind and overlay portions of Lake Forest Drive from Bake Pkwy to I-5 Fwy. This project would provide an estimated useful life of 10 to 15 years. Pre-construction design, document preparation and estimating started in April 2023 and is anticipated to be completed in December 2028.
Street Resurfacing: portions of Bake Pkwy from Rancho Pkwy South to South Pointe Dr (26S01B and 27S01D) - The road rehabilitation project would grind and overlay portions of Bake Parkway from Rancho Pkwy South to South Pointe Dr. This project would provide an estimated useful life of 10 to 15 years. Construction tentative start date is in August 2025 with a tentative end date in October 2027.
SB1 allows the City to substitute different projects as necessary during the fiscal year, provided it is reported in the project expenditure reports at the end of each fiscal year.
Staff recommends the City Council approve SB1 Project List forms for FY 2025- 26, adopt the proposed Resolution, and authorize the Acting Director of Public Works to forward the required documents to the California Transportation Commission, as required under the Road Repair and Accountability Act of 2017.
FISCAL IMPACT:
The City anticipates receiving approximately $2,280,423, based on population, from the Road Repair and Accountability Act (“SB1”) program to fund the City’s annual street resurfacing and slurry seal projects for Fiscal Year 2025-26.
ATTACHMENTS:
1. CTC SB1 Proposed Project List Forms
2. Street Resurfacing and Slurry Seal page from the Proposed 2025-2032 Capital Improvement Plan Budget
3. Resolution
Initiated By: Nazila Mokarram, Principal Civil Engineer Submitted By: Douglas A. Erdman, P.E., Acting Director of Public Works/City Engineer
Approved By: Debra Rose, City Manager