City Council Agenda Report
Meeting Date: May 19, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Rosemary Lozada, Management Analyst
Subject
Project Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2026-27
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. 2026-022 adopting a project list to be funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year (FY) 2026-27.
Background
The Road Repair and Accountability Act (Senate Bill 1) was signed by the Governor on April 28, 2017. SB 1 provides critical funding to address basic road maintenance, rehabilitation, and critical safety needs on the state highway and local street as well as road systems through the Road Maintenance and Rehabilitation Account (RMRA). 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. SB 1 addresses road rehabilitation and safety needs by increasing fuel excise taxes and vehicle registration fees.
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). These revenues are deposited into the RMRA and apportioned to cities and counties based on a population-driven formula under Streets and Highways Code (SHC) Section 2031(h)(2). To remain eligible for these funds, the City must adopt a project list via resolution and submit it to the California Transportation Commission (CTC).
Under SHC Section 2030, RMRA funds may be used for a variety of improvements, including:
• Road maintenance and rehabilitation
• Safety enhancements projects
• Traffic control devices
• Railroad grade separations
• Complete Street components (e.g., pedestrian/bicycle safety projects, active transportation purposes, and transit facilities)
Pursuant to the formula in SHC Section 2103(a)(3)(c)(i) and (ii), for Fiscal Year 2026-27, the City’s estimated allocation is $5,920, which staff proposes to utilize for citywide striping and pavement markings. The formula proportions the total population of the City to the total population of all cities in the state. To receive annual apportionments, the City must (1) prior to the start of the fiscal year, submit a detailed list containing the project’s description, location, estimated schedule, and anticipated useful life; and (2) submit a year-end report to the CTC documenting all projects completed and funds expended during the prior fiscal year.
Fiscal Impact
There is no fiscal impact associated with this report. The City will receive an estimated $5,920 in RMRA funding in FY 2026-27 from SB 1 and will allocate funding once it fulfills the requirements under SB 1.
Attachments
1. Resolution No. 2026-022 Project Funded by Senate Bill 1