City Council Agenda Report
Meeting Date: May 20, 2025
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Lissette Melendez, Project Engineer
Subject
Project Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2025-26
Recommendation
A. Find that the approval of the proposed resolution does not constitute a "project" pursuant to sections 15378(b)(2) and (4) of the Guidelines to the California Environmental Quality Act (CEQA), because it constitutes an administrative activity and government funding mechanism that does not involve any commitment to any specific project which may result in a potentially significant impact on the environment; and even if the adoption of the proposed resolution did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and
B. Adopt Resolution No. 2025-012 adopting a project list to be funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year (FY) 2025-26.
Background
Senate Bill 1 (SB 1) – The Road Repair and Accountability Act was signed by the Governor on April 28, 2017. SB 1 addressed basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local street and road systems. SB 1 increases 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.
On November 1, 2017, the State Controller commenced depositing a portion of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). Part of the RMRA funding is apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2031 (h)(2) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and road systems. Pursuant to SHC Section 2030, RMRA local streets and roads allocations must be used for projects that include, but are not limited to, the following:
▪ Road maintenance and rehabilitation
▪ Safety projects
▪ Railroad grade separations
▪ Traffic control devices
▪ Complete street components (e.g. active transportation purposes, pedestrian and bicycle safety projects, transit facilities, etc.)
The City's allocation for FY 2025-26 is estimated to be $5,536 pursuant to the formula in SHC Section 2103(a)(3)(c)(i) and (ii). The formula proportions the total population of the City to the total population of all cities in the state.
SPENDING PLANS AND REPORTS
The RMRA stipulates that, prior to receiving RMRA funds in a fiscal year, a city or county must submit to the California Transportation Commission (CTC) a project list pursuant to an adopted budget. For each project, the list must include a description, location, schedule, and useful life.
The RMRA also requires the submission of an annual report of project completion in order to receive RMRA funds. The report must include all projects for which RMRA funds were expended.
The Citywide Striping and Pavement Markings project is identified as a potential candidate for FY 2025-26 SB 1 funding.
Fiscal Impact
There is no fiscal impact associated with this report. The City will receive an estimated $5,536 in RMRA funding in FY 2025-26 from SB 1 and will allocate funding once it fulfills the requirements under SB 1.
Attachments
1. Resolution No. 2025-012