CITY COUNCIL STAFF REPORT
Meeting Date: June 15, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. __ - 26 TO IDENTIFY THE FY 2026/2027
STREET RESURFACING PROJECT FOR THE EXPENDITURE OF
FISCAL YEAR 2026/2027 FUNDS OF SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
SYNOPSIS
The City of Pleasant Hill will receive an estimated $971,038 in new Road Maintenance and Rehabilitation Account (RMRA) funds in Fiscal Year (FY) 2026/2027 from Senate Bill 1 (SB1).
To remain eligible for these funds, the City must identify and adopt by resolution all projects proposed for RMRA funds.
The purpose of this item is to consider a resolution appropriating these new RMRA funds to the FY 2026/2027 Street Resurfacing Project (Project), as identified in the FY 2026-2031 Capital Improvement Plan (CIP).
DISCUSSION
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), known as the Road Repair and Accountability Act of 2017. SB1 addresses basic road maintenance, rehabilitation, and critical safety needs on state highways, local streets, and the overall roadway system. It generates revenues by increasing per‑gallon fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees, and includes provisions for future inflationary adjustments to these tax rates.
Since November 1, 2017, the State Controller (Controller) has deposited portions of this new revenue into the Road Maintenance and Rehabilitation Account (RMRA). A percentage of RMRA funding is apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code Section 2032(h), for basic road maintenance, rehabilitation, and critical safety projects on local streets and the road system. For FY 2026/2027, the City anticipates receiving approximately $971,038 in RMRA funds.
To remain eligible for annual RMRA funding, the statute requires that cities and counties provide basic RMRA project reporting to the California Transportation Commission (CTC). Before receiving the City’s FY 2026/2027 apportionment from the Controller, the City must submit to the CTC a list of projects proposed to be funded with RMRA funds by July 1, 2026. The project list must be included in an approved or amended budget adopted by the City Council at a regular public meeting, and must identify the project description, location, proposed schedule, and estimated useful life.
Additional eligibility requirements include conducting public outreach and using a Pavement Management System to develop the list of SB1‑funded projects. These requirements are intended to ensure that RMRA funds are allocated to high‑priority, cost‑effective projects that meet the City’s pavement maintenance needs. The City currently meets both requirements.
RMRA funds may be used for a variety of projects, including road maintenance and rehabilitation; safety improvements; “complete streets” improvements; pedestrian and bicycle facilities; transit facilities; and traffic control projects.
Analysis
The Street Resurfacing Program is an approved project in the FY 2026-2031 CIP. It identifies several arterial, collector, and residential streets with the highest priority pavement treatment needs and is an ideal candidate for SB1 funding.
The Street Resurfacing Program outlines the City’s 5‑Year Paving Plan (FY 2026–2031) and identifies the expenditure plan in the two‑year budget. Staff has identified the FY 2026/2027 Street Resurfacing Project (Project) as the project that will design and implement the City’s highest priority pavement needs. This includes resurfacing treatments for the streets listed in the attached Project List of Streets in Residential Zone 4 and Residential Zone 14. During design, the Project team will determine the most appropriate and cost‑effective pavement resurfacing treatment to extend pavement life at a fraction of the cost of full reconstruction.
The Project design is substantially complete, and construction is expected to begin in fall 2026.
The Project’s implementation schedule meets the SB1 program schedule for the FY 2026/2027 RMRA funds.
FISCAL IMPACT
The Project cost will be determined at the completion of the design phase and will be funded through the Street Resurfacing Program (MK‑1 in the CIP). The Street Resurfacing Program has a budget of $5,400,000 for FY 2026/2027, and the proposed RMRA funds for Fiscal Year 2026/2027 are identified as a funding source in the Program’s budget sheet (attached). No General Fund monies are allocated to this year’s Street Resurfacing Program.
PUBLIC CONTACT
Public Contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Move to adopt the proposed resolution to identify the FY2026/2027 Street Resurfacing Project for the expenditure of Fiscal Year 2026/2027 Funds of Senate Bill 1: The Road Repair and Accountability Act of 2017
ALTERNATIVES TO RECOMMENDED ACTION
The City Council may choose not to adopt the attached resolution, which would result in the loss of approximately $971,038 in eligible RMRA funds. The City Council may also consider allocating RMRA funds to other projects that meet RMRA eligibility criteria.
ATTACHMENT(S)
Proposed Resolution
Exhibit 1 – Project List of Streets in Residential Zone 4 and 14 FY 2026-2031 Street Resurfacing Program CIP Sheet (MK-1) Prepared by: Shawn Hung, Associate Engineer
Reviewed by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager