City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 18, 2026
Report #:2603-6140
TITLE
Adoption of a Resolution for Senate Bill 1, the Road Repair and Accountability Act, for Fiscal Year 2027, Providing the Project List for the Street Maintenance Project, Capital Improvement Program Project PE-86070; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution for the Fiscal Year 2027 Street Maintenance Project, providing a project list funded by Senate Bill 1, the Road Repair and Accountability Act.
BACKGROUND/ANALYSIS
Senate Bill 1 (SB 1) established the Road Maintenance and Rehabilitation Account (RMRA) in 2017 to address deferred maintenance on the state highway and local streets and roads systems, with funding to be approved annually. Palo Alto's RMRA funding estimate for FY 2027 is $1,930,258. SB 1 funding requires that Council approve a resolution (Attachment A) providing a project list that includes four components:
Project description;
The locations of each proposed project;
Schedule for completion; and
Estimated useful life of improvement.
The adopted resolution must be sent to the California Transportation Commission by July 1, 2026. Staff recommends the RMRA funding for Fiscal Year 2027 be recognized in the Gas Tax Fund and transferred to the Capital Improvement Fund to be added to the Street Maintenance Project, PE-86070.
The SB 1 funding supported the City's goal of achieving an average citywide Pavement Condition Index (PCI) of 85 by 2019 with no street having a PCI less than 60. The City reached the 85 PCI goal in December 2018, and the additional funding helps enable the City to address streets that still have PCI scores less than 60. The funding will be used on the Fiscal Year 2027 Asphalt Paving Project for the streets shown in Attachment B. Work on this project is
anticipated to be completed by Summer 2027. An award of construction contract is anticipated to be brought to Council for approval in Winter 2026. The estimated useful life of a street overlay is 30 years.
The City uses StreetSaver, the Metropolitan Transportation Commission’s (MTC) pavement management system which is used by almost all Bay Area jurisdictions. The PCI is calculated by evaluating a sample pavement section of each block for different rating variables from mild to severe – including raveling, potholes, amount of trenches, and base failures. These factors are entered into the StreetSaver program and a PCI is calculated. All staff who evaluate street conditions and pavement distresses have multiple years of experience and have been trained by MTC.
While staff uses the PCI scores to prioritize streets, staff also takes into consideration additional information including coordination with Utilities projects and Office of Transportation planned striping improvements. Staff also takes into consideration whether the street has bicycle lanes or is a bicycle boulevard. Staff tries to group multiple streets in a neighborhood whenever possible, so that construction is not occurring over multiple years if it can be avoided.
Additionally, each block has its own estimated repair cost, which impacts how many streets can be included in each project given the annual funding amounts.
FISCAL/RESOURCE IMPACT
Monthly appropriations from the State Controller's Office will begin in July 2026 for Palo Alto's Fiscal Year 2027 RMRA funding. The SB1 funding estimate for Fiscal Year 2027 is $1,930,258.
There is $1,848,523 budgeted in SB 1 funding in the Street Maintenance project (PE-86070) as part of the Fiscal Year 2027 Proposed Capital Budget and subject to Council adoption of the Fiscal Year 2027 Capital Budget, currently scheduled for June 15, 2026. Ongoing funding is estimated to be $1.9 million annually. The Street Maintenance project (PE-86070) budget will be aligned as needed when the revenue is fully realized and will be adjusted to actuals at mid- year Fiscal Year 2027 as needed and with Fiscal Year 2028 budget development. Funding from RMRA in future fiscal years will be recognized and appropriated as part of the annual CIP budget process.
STAKEHOLDER ENGAGEMENT
All streets have been coordinated with the City’s Utilities Department and the Office of Transportation to minimize the cutting of newly resurfaced streets. Additionally, staff reviews the proposed five-year paving plan streets annually with the Pedestrian and Bicycle Advisory Committee (PABAC) Repaving Subcommittee with an emphasis on the streets included in the first year of the plan.
ENVIRONMENTAL REVIEW
The adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus no environmental assessment under the California Environmental Quality Act is required.
ATTACHMENTS
Attachment A: SB 1 FY 2027 Resolution
Attachment B: FY 2027 Project Overlay List
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer