PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D
Meeting Date: May 20, 2025
TITLE:
Approval of the Paving and Drainage Project for Proposed Fiscal Year 2026 Road Maintenance and Rehabilitation Account Funding (SB 1); Making a Determination of Exemption under the California Environmental Quality Act RECOMMENDATION:
Adopt a Resolution approving the Paving and Drainage project for proposed Senate Bill 1 Road Maintenance and Rehabilitation Account funding for Fiscal Year 2026 and making a Determination of Exemption under the California Environmental Quality Act.
DISCUSSION:
On April 28, 2017, the Governor signed Senate Bill (SB) 1, which is known as the Road Repair and Accountability Act of 2017. SB 1 increases fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees to help address basic road maintenance, rehabilitation, and critical safety needs for state highway and local streets and roads.
Beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Account (RMRA).
So far, the City has received $1,043,431 of RMRA funds through fiscal year (FY) 2024, as shown in Table 1:
Table 1. RMRA Funds Received by Fiscal Year
Fiscal Year RMRA Funds Received
FY 2018 $48,324
FY 2019 150,978
FY 2020 142,698
FY 2021 150,885
FY 2022 163,247
FY 2023 179,611
FY 2024 207,687
Total $1,043,431
The City is projected to receive $203,357 in FY 2025 of RMRA funds. The City anticipates another $211,311 in FY 2026 per the CaliforniaCityFinance.com RMRA Estimates as of January 2025. These funds are deposited in the City’s Gas Tax Fund RMRA account to support a budgeted street maintenance project. The California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2025 to receive these funds in FY 2026. This project list must include a description and the location of each proposed Council Agenda 5-20-2025 9.D-1
project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.
Maintenance of Effort
The amount that each City receives is based on a portion of the average of General Fund and Half-Cent Sales Tax Fund costs spent on street repairs and maintenance as reported to the State Controller’s Office for FY 2010, FY 2011, and FY 2012. For the City of Pismo Beach, this amount has been calculated to be $558,874. This level of funding is the City’s Maintenance of Effort, or required annual funding, from discretionary funds for street projects. Staff has reviewed the preliminary budgets for FY 2026 and project that the City will meet this requirement. The Paving and Drainage project is included in the City’s FY 2025 Budget.
Proposed Project for Road Maintenance and Rehabilitation Account Funding Staff has identified the Paving and Drainage project as a proposed project for RMRA funding. The Paving and Drainage project budget includes support from the RMRA funds.
This project meets the eligibility requirements as described in Streets and Highways Code Section 2030(b)(1).
The Paving and Drainage project (Project) is located in the Shell Beach area on Cliff Avenue and Ocean Boulevard. The Project includes maintenance and rehabilitation of existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety. Construction of the Project will begin on October 1, 2025 and is projected to be completed by November 30, 2026. And finally, the Project has a useful life ranging from 20 to 50 years.
Environmental
The proposed action is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resource Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical change in the environment. Therefore, the attached resolution makes a determination of exemption under CEQA.
Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) identifying the Paving and Drainage project for proposed RMRA funding.
FISCAL IMPACT:
The fiscal impact of adopting the attached resolution is the receipt of an additional $211,311 of funds to help offset cost of the Paving and Drainage project.
ATTACHMENTS:
1. Resolution
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 5-20-2025 9.D-2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROVING THE PAVING AND DRAINAGE PROJECT FOR PROPOSED SENATE BILL 1 ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDING FOR FISCAL YEAR 2026 AND MAKING A DETERMINATION
OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the city are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Accounts (RMRA), including $1,043,431 from Fiscal Year (FY) 2018 through FY 2024, a projected $203,357 in FY 2025 and $211,311 in FY 2026 for the City of Pismo Beach; and
WHEREAS, the City has undergone a robust public process to ensure public input into the community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management Program to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that 73% of the City’s streets and roads are in a “good” to “fair” condition and this revenue will help us increase the overall quality of the City’s road system and over the next decade will bring the City’s streets and roads into a “good” condition; and WHEREAS, the SB 1 project list and overall investment in local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
Council Agenda 5-20-2025 9.D-3
Attachment 1
WHEREAS, the California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2025 in order to receive these funds in FY 2026, and which project list must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, staff has identified the Paving and Drainage project located in the Shell Beach area on Cliff Avenue and Ocean Boulevard in Pismo Beach, California, as a proposed project for RMRA funding and this project meets the eligibility requirements as described in Streets and Highways Code Section 2030(b)(1); and WHEREAS, the Paving and Drainage project includes maintenance and rehabilitation to existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety; and
WHEREAS, the Paving and Drainage project is estimated to be completed by November 30, 2026 and has a useful life ranging from 20 to 50 years; and WHEREAS, the Paving and Drainage project is included in the City of Pismo Beach’s FY 2025 Budget; and
WHEREAS, the proposed action is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resource Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical change in the environment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. The City Council hereby approves the Paving and Drainage project (Project) for proposed RMRA funding for FY 2026;
2. The Project is located in the Shell Beach area on Cliff Avenue and Ocean Boulevard in Pismo Beach, California;
3. The Project includes maintenance and rehabilitation to existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety;
3. Construction of the Project is expected to begin on October 1, 2025 and is anticipated to be completed by November 30, 2026; and
4. The Project has a useful life ranging from 20 to 50 years;
5. The City Manager, or designee, is hereby authorized to submit the project list and application to the California Transportation Commission for any and all RMRA funds that may become available to the City and execute any and all documents necessary to implement and secure any and all such RMRA funds.
Council Agenda 5-20-2025 9.D-4
Attachment 1
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 20th day of May 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 5-20-2025 9.D-5
Attachment 1