CITY COUNCIL STAFF REPORT
DATE: JUNE 10, 2026 CONSENT CALENDAR
SUBJECT: ADOPT A RESOLUTION IDENTIFYING A PROJECT FOR SENATE BILL 1,
ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDS
FROM: Scott C. Stiles, City Manager
BY: Engineering Services Department
SUMMARY:
Adoption of this resolution will allow the City of Palm Springs to identify a specific project that will be designated as recipients of Senate Bill 1 (SB 1) funding, identified as “The Road Repair and Accountability Act of 2017”. Staff has updated the Capital Improvement Program to include SB1 funds to be budgeted for Fiscal Year 2026-27 Annual Pavement Rehabilitation Project.
RECOMMENDATION:
1) Adopt Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING A PROJECT FOR FISCAL YEAR 2026-27 FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017”.
BACKGROUND:
On April 28, 2017, the Governor signed SB 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system, SB 1 increases the per-gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.
Beginning November 1, 2017, the State Controller deposited various portions of this new 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 the Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads systems.
City Council Staff Report
June 10, 2026 -- Page 2
Adopt a Resolution Identifying Project(s) for SB1 RMRA Funds It is important to note that all new revenues received through the increased gas tax must be dedicated to capital improvement projects and cannot be used for personnel or other administrative costs.
STAFF ANALYSIS:
Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements for the program are codified in SHC Sections 2034, 2036, 2037, and 2038; several of the key requirements are listed below:
Submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be included in a city or county budget that is adopted by the applicable city council or county board of supervisors at a regular public meeting [SHC 2034(a)(1)].
The list of projects must include the description and location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement [SHC 2034(a)(1)].
For each fiscal year in which RMRA funds are received and expended, cities and counties must submit documentation to the Commission that includes the description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement [SHC 2034(b)].
Staff recommends adopting this resolution, included as Attachment A, identifying the 2026-27 Annual Pavement Rehabilitation Project as an eligible project to receive RMRA funding for Fiscal Year 2026-27.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to amend the Fiscal Year 2026-2027 budget, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include:
(5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Infrastructure and Facilities.
City Council Staff Report
June 10, 2026 -- Page 3
Adopt a Resolution Identifying Project(s) for SB1 RMRA Funds FISCAL IMPACT:
Following City Council approval, the Capital Improvement Budget will be updated, reflecting this projected revenue of RMRA Gas Tax Funds for Fiscal Year 2026-27, allowing the City to provide the CTC with the project to be funded by SB 1.
The FY 2026-27 estimated revenue of $1,247,931 will be used to fund the 2026-27 Annual Pavement Rehabilitation Project.
REVIEWED BY:
City Engineer: Joel Montalvo
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Resolution