3;kc,25,Eggolk
Agenda Item No: 1.k
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: June 16, 2026
Submitted by: Matthew Di Mario
From: Public Works
Subject:
RESOLUTION ADOPTING FISCAL YEAR 2026-27 PROJECT LIST FOR COMPLIANCE WITH SB 1, THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 Financial Impact:
Projected Annual Revenue: $1,514,655 (State Gas Tax — RMRA Fund No. 217) Summary:
The State Legislature approved Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017 (the "Act") in the Fiscal Year (FY) 2016-17 Legislative session. The Act provided local governments in California with a new annual revenue stream to fund road maintenance, repairs, and other related transportation projects. It is estimated that the City will receive a total of $1,514,655 in the Road Maintenance and Rehabilitation Account (RMRA) funds under this program in FY 2026-27, which will be used to repair and maintain Placentia's streets.
Cities and counties receiving these funds must submit a list of proposed projects along with an adopted resolution to the California Transportation Commission (CTC) by July 1 of each year.
Staff is recommending that the City Council adopt the proposed project list in conformance with the Act to continue receiving RMRA funding.
Recommended Action:
It is recommended that the City Council:
1. Approve Resolution No. R-2026-41, a Resolution of the City Council of the City of Placentia, California, adopting a List of Projects for Fiscal Year 2026-27 funded by SB 1, The Road Repair and Accountability Act of 2017; and
2. Authorize Staff to submit the project list and all necessary documentation to the California Transportation Commission to satisfy SB 1 funding requirements; and
3. Authorize the City Administrator and/or her designee to execute all necessary documents, in a form approved by the City Attorney.
Strategic Plan Statement:
This item aligns with Strategic Goal No. 3: Infrastructure, Facilities, and Public Spaces. This action will specify proposed projects that will use SB 1 funds to improve arterial and residential streets. Declaring projects that use SB 1 monies helps to provide funding to enhance the City's street infrastructure.
Discussion:
1 On April 28, 2017, the Governor signed Senate Bill 1 (SB 1), also known as the Road Repair and Accountability Act of 2017. This legislation aimed to address essential road maintenance, rehabilitation, and safety needs for both state highways and local streets. SB 1 achieved this by increasing per -gallon fuel excise taxes, raising diesel fuel sales taxes and vehicle registration fees, and allowing for inflationary adjustments to tax rates in the future.
Since November 1, 2017, the State Controller began depositing this additional funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). Each month a percentage of the RMRA funds are apportioned by formula to the City pursuant to Streets and Highways Code Section 2032(h). As codified in the Streets and Highways Code (SHC), RMRA local streets and roads allocations must be used for projects that include, but are not limited to:
• Road maintenance and rehabilitation
• Bridge replacement and rehabilitation
• Safety projects
• Railroad grade separations
• Traffic control devices
• Completion of 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.
This will be the tenth (10th) year in which the City is receiving SB 1 funding, which is a critical source of funding needed to help the City address its backlog in road maintenance and rehabilitation. Based on the released May 2026 estimates, the City is estimated to receive a total of $1,514,655 in RMRA funds in FY 2026-27.
As part of SB 1's various accountability and transparency measures and the CTC's 2021 Reporting Guidelines for Local Streets and Roads Funding Program, the City is required to adopt a resolution (Attachment 1) establishing the list of projects and submit that list annually to the CTC by July 1 and subsequently provide year-end updates on the progress and expenditures of previously proposed projects by December 1 of each year. In line with these guidelines, Staff has identified eligible projects for RMRA funding in the proposed FY 2026-27 Capital Improvement Program Budget. The following list of proposed projects will be funded in part or solely with SB 1 funding in FY 2026-27:
Project Name Description
Area of work includes E Palm Drive
from Yorba Linda Blvd to Rose Drive.
Scope of work includes grinding and
FY 26-27 Arterial overlaying the existing pavement
Roadway Rehabilitation section, localized full depth
Project reconstruction, adjusting utilities to
grade, striping, removing and
replacing damaged sidewalk, curbs
and gutters.
Proposed SB 1
Funding Amount
$1,001,664
2 Scope of work includes the placement
of crack seal and slurry seal, grinding
and overlaying the existing pavement
section, full depth reconstruction,
adjusting utilities to grade, striping,
removing and replacing damaged
FY 26-27 Residential sidewalk, curb, and gutter. The
Roadway Rehabilitation project is located in the northwest Project portion of the City (South of
Bastanchury Rd and West of Kraemer
Blvd), and includes residential streets
such as Cambridge Ave, Nenno Ave,
Lewis PI, Armstrong Dr, Livingston
Ave, Laurelwood Ave, and Kingston
Rd.
$512,991
Staff is recommending that the City Council adopt the attached resolution (Attachment 1) and authorize Staff to submit the project list and necessary documentation to the CTC to remain eligible for funding.
Financial Summary:
Based upon the released May 2026 estimates, the City is estimated to receive a total of $1,514,655 in RMRA funds in FY 2026-27. The revenue received will be allocated to the State Gas Tax — RMRA Fund No. 217. To be eligible to receive RMRA funding, the City must prepare and submit a project list annually to the CTC by July 1. The City must also provide a public record which documents that the proposed projects have been adopted in the operating or capital budget. The recommended actions will enable the City to be eligible to receive RMRA funding in FY 2026-27.
Attachments
Attachment 1 - R-2026-41
3 RESOLUTION NO. R-2026-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, ADOPTING A LIST OF PROJECTS
FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
A. Recitals
(i). 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 (ii). SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Placentia (City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and (iii). 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 (iv). The City will receive an estimated $1,514,655 in RMRA funding in Fiscal Year 2026-27 from SB 1; and
(v). This is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and (vi). The City has undergone a robust public process to ensure public input into our community's transportation priorities/the project list; and (vii). The City used a Pavement Management System 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 communities priorities for transportation investment; and (viii). The funding from SB 1 will help the City maintain and rehabilitate approximately 1 million square feet of local roads throughout the City this year; and (ix). The 2023 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are at a lower risk and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into good condition; and
Resolution R-2026-41
4 (x). The SB 1 project list and overall investment in our 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 benefits on the City of Placentia by maintaining and preserving the local street and road system in good condition will reduce drive times and traffic congestion, improve bicycle safety, and make the pedestrian experience safer and more appealing, which leads to reduce vehicle emissions helping the State achieve its air quality and greenhouse gas emissions reductions goals.
B. Resolution
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. The foregoing recitals are true and correct.
2. The following list of newly proposed projects will be funded in -part or solely with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues:
Project Title: FY 26-27 Arterial Roadway Rehabilitation Project Project Description: Area of work includes E Palm Drive from Yorba Linda Blvd to Rose Drive. Scope of work includes grinding and overlaying the existing pavement section, localized full depth reconstruction, adjusting utilities to grade, striping, removing and replacing damaged sidewalk, curb and gutters.
Project Location: E Palm Dr from Yorba Linda Blvd to Rose Dr Estimated Project Schedule: 7/2026 — 6/2027
Estimated Project Useful Life: 15-20 years
Project Title: FY 26-27 Residential Roadway Rehabilitation Project Project Description: Scope of work includes the placement of crack seal and slurry seal, grinding and overlaying the existing pavement section, full depth reconstruction, adjusting utilities to grade, striping, removing and replacing damaged sidewalk, curb, and gutter.
Project Location: Northwest portion of the City (South of Bastanchury Rd and West of Kraemer Blvd.), including residential streets such as Cambridge Ave, Nenno Ave, Lewis PI, Armstrong Dr, Livingston Ave, Laurelwood Ave, and Kingston Rd.
Estimated Project Schedule: 7/2026 — 6/2027
Estimated Project Useful Life: 7-20 years
APPROVED and ADOPTED this 16th day of June 2026
Resolution R-2026-41
5 Chad P. Wanke, Mayor
ATTEST:
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
1, Robert S. McKinnell, City Clerk of the City of Placentia do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 16th day of June 2026 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Resolution R-2026-41
6