HomeMy WebLinkAboutItem 5e - 2025-26 Projects Funded by SB1 The RoadRepair and Accountability Act of 2017 Item 5e
Department: Public Works
Cost Center: 9501
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Madeline Kacsinta, Capital Improvement Program Administrative Manager
SUBJECT: 2025-26 PROJECTS FUNDED BY SB1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
RECOMMENDATION
Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, adopting a list of projects for Fiscal Year 2025-26 funded by SB 1: The
Road Repair and Accountability Act of 2017.”
POLICY CONTEXT
This action and the associated resolution are required by the California Transportation
Commission (CTC) to receive funding from the Road Maintenance and Rehabilitation
Account (RMRA), created by the Road Repair and Accountability Act of 2017 (SB1). The
proposed projects are consistent with the proposed 2025-27 Financial Plan’s Capital
Improvement Plan.
DISCUSSION
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1) (Beall, Chapter 5, Statutes of
2017), which is known as the Road Repair and Accountability Act of 2017 (SB1). SB1
creates a funding stream, and those funds are deposited into the state’s Road
Maintenance and Rehabilitation Account (RMRA) and provided to agencies to address
basic road maintenance, rehabilitation, and critical safety needs on both the state
highway and local roadway systems. SB1 provides funding by charging:
1. An additional 12 cents per gallon on the gasoline excise tax, effective
November 1, 2017.
2. An additional 20 cents per gallon on the diesel fuel excise tax, effective
November 2, 2017.
3. An additional vehicle registration tax called the “Transportation Improvement
Fee” with rates based on the value of the motor vehicle , effective January 1,
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2018.
4. An additional $100 vehicle registration tax on zero emissions vehicles model
year 2020 or later, effective July 1, 2020.
Based on the latest forecasts from January 2025, the City is estimated to receive
approximately $1,277,312 of RMRA funding in Fiscal Year (FY) 2025-26. RMRA funds
are programmed into the financial plan to help fund eligible Capital Improvement Plan
(CIP) projects. The California Transportation Commission (CTC) has established
guidelines for programming and reporting the use of RMRA funds. All RMRA reporting is
submitted through the CTC online Local Streets and Roads (LSR) Reporting Tool. Each
year, the City is required to submit a project list to the CTC by July 1st for the upcoming
fiscal year. The City Council Resolution is a required component of that July 1st submittal
and fulfills the City’s obligation to remain eligible for RMRA funding for Fiscal Year 2025-
26. Following this, staff will submit a project expenditure report by September 30th,
detailing actual expenditures from the previous fiscal year.
Recommended Use of 2025-26 RMRA/SB1 Funding
2025 Paving Project
The 2025 Paving Project, planned to start construction in summer of 2025, is part of the
City’s ongoing pavement management plan, which altern ates between maintenance of
neighborhood streets in even numbered years, and maintenance and repair of arterial
streets in odd years. This approach is intended to promote equity between residential
and commercial areas and spread the benefits to the entire community.
The 2025 Paving Project is structured with a Base Bid and two Additive Alternatives, A
and B, to maximize the scope of work within available funding , as approved by City
Council on May 6, 2025. The project’s Base Bid includes roadway reconstruction, striping,
curb ramps, and implementation of the City’s Active Transportation Plan and Vision Zero
goal on the following streets:
Roadway Reconstruction
a. Tank Farm Road (Broad Street to Wavertree)
b. Sacramento Drive (Industrial Way to Via Esteban)
Roadway Striping Refresh (no paving work or other improvements)
a. Broad Street (Orcutt Road to Tank Farm)
b. Santa Rosa & Mill Street Crosswalks
c. Madonna Road (US 101 Southbound Ramps to Higuera)
d. Prado Road (Higuera to Serra Meadows)
e. Tank Farm Road (Santa Fe to Broad Street)
The project’s Additive Alternatives A and B include pavement maintenance, striping, curb
ramps, and storm drain infrastructure to the following streets, respectively:
a. Orcutt Road (Tank Farm Road to City/County Line)
b. Calle Joaquin (Motel 6 to City/County Line)
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Figure 1 below shows the locations identified in the 2025 Paving Project for roadway
reconstruction. Areas identified to receive striping refresh only are not shown within the
figure.
Figure 1
In addition to roadway reconstruction and maintenance, the 2025 Paving Project will
incorporate various street modifications outlined in the City’s Active Transportation Plan,
aimed at bolstering safety and mobility for all road users. These strategies encompass
design elements specifically crafted to enhance pedestrian crossing safety, augment
separation between bicyclists and motor vehicle traffic, and implement measures to
mitigate traffic intensity and lower speeds on select streets.
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The project is expected to begin construction in summer 2025 and will utilize all
anticipated SB1 funds for FY 2025–26 within the same fiscal year. This plan is consistent
with the 2025-27 Financial Plan which is scheduled for Council’s consideration to adopt
on June 17, 2025.
Previous Council or Advisory Body Action
At the May 6, 2025 City Council meeting, staff received Council authorization to advertise
the 2025 Paving Project.
Policy Context
This action and the associated resolution are required by the CTC for the use of RMRA
funds. The proposed projects are consistent with the proposed 2025-27 Financial Plan and
Major City Goals.
Public Engagement
The programming of SB1 funds is an administrative item, so no additional public
engagement was completed outside of the 2025-27 Financial Plan process. The
proposed paving project to receive SB1 funding has had considerable public engagement
work. The public engagement work for the project included direct mailers that were sent
to all properties within the vicinity notifying community members of the proposed project,
planning process and schedule, project website and opportunities to provide input. Public
meetings were held at the November 21, 2024 ATC meeting and the May 6, 2025 City
Council Meeting.
CONCURRENCE
There is concurrence from the Finance Department and CIP Review Committee through
its review and approval of the 2025-2027 Financial Plan.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Section 15378. There are no environmental impact s resulting from approval
of this item. Individual projects funded under this revenue source will be required to satisfy
environmental review, if required, as part of project development and approval process.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-
26 Funding Identified: Yes
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Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Other: RMRA/SB1 $1,277,312 $1,277,312 $0
Total $1,277,312 $1,277,312 $0
The recommendations in this report do two things:
1. Establish a project list for FY 2025–26. While the proposed resolution identifies
only the 2025 Paving Project for SB 1 funding at this time, the establishment of
this project list does not commit RMRA funds irrevocably. Council retains the
ability to revise funding priorities or reallocate SB 1 funds to other eligible
projects at any point prior to expenditure—for example, if a new SB 1-eligible
project arises or if economic conditions change and impact SB 1 revenue
projections. Any changes to the project list would be documented and
communicated to the California Transportation Commission (CTC) through the
annual SB 1 expenditure report submitted each September. The below table
indicates the total SB1 funding contribution to be used for the 2025 Paving
Project. Council received a separate staff report at the May 6, 2025 meeting
requesting authorization to advertise the project, which included total costs and
general fund contributions to the work.
RMRA SB 1 Project List for FY 2025-26
Project 2025-26 Funding
2025 Paving Project $1,277,312
Total $1,277,312
Estimated SB 1 2025-26 $1,277,312
2. Approve the allocation of $1,277,312 from the SB1 unassigned Fund Balance to
the 2025 Paving Project Account, No. 2000616, to support upcoming pavement
management. If approved, this funding will be formally appropriated with the
adoption of the FY 2025-26 CIP budget on June 17, 2025. Unused project
budget would be carried over to the following fiscal year, and transferred to
the 2026 Paving Project Account, No. 2000617. SB 1 funds may be carried over
from year to year with no formal time limit, provided they remain allocated to
eligible projects and are accurately tracked and reported in the City’s annual SB
1 expenditure report submitted to the California Transportation Commission
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(CTC). Carried-over SB 1 funds will also be reflected in the fiscal sections and
funding tables of future projects, showing transfers from prior-year projects
where applicable.
ALTERNATIVES
The City Council could deny adoption of the resolution to fund these Capital
Improvement Plan projects using SB1 funds. Council could choose to direct staff to
program these funds to a different project that is eligible for SB1 funding and return to
Council with that recommendation.
ATTACHMENTS
A - Draft Resolution adopting the list of projects to receive 2025-26 SB1 Funding.
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R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL
YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
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 residents 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, the City will receive an estimated $1,277,312 in RMRA funding in
Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the ninth 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, and increasing access and mobility options for the traveling public
that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input
into our community’s transportation priorities and a budgeting process that has will be
adopted by City Council that includes a full listing of Capital Improvements Plan projects
and funding sources including SB-1; and
WHEREAS, the City used a Pavement Management System and other goals such
as the complete streets elements and bicycle and pedestrian safety 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 funding from SB 1 will help the City maintain and rehabilitate
streets/roads, sidewalks, and add active transportation infrastructure throughout the City
this year and similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs
Assessment found that the City/County’s streets and roads are in an “at lower risk”
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Resolution No. _____ (2025 Series) Page 2
R ______
condition 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 a “good” condition; and
WHEREAS, the SB 1 project list and overall investment in the City’s streets and
roads infrastructure with a focus on basic maintenance and safety, investing in complete
streets infrastructure and active transportation projects, and using cutting-edge
technology, materials and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The foregoing recitals are true and correct and are adopted herein
as the findings of the Council.
SECTION 2. The following project will be funded in-part with Fiscal Year 2025-
26 RMRA revenues:
Project Title: 2025 Paving Project
Project Description: 2025 Paving work consistent with Pavement Maintenance
Plan
a. Project Location:
• Roadway Reconstruction
a. Tank Farm Road (Broad Street to Wavertree)
b. Sacramento Drive (Industrial Way to Via Esteban)
• Roadway Striping Refresh (no paving work or other
improvements)
a. Broad Street (Orcutt Road to Tank Farm)
b. Santa Rosa & Mill Street Crosswalks
c. Madonna Road (US 101 Southbound Ramps to Higuera)
d. Prado Road (Higuera to Serra Meadows)
e. Tank Farm Road (Santa Fe to Broad Street)
The project’s Additive Alternatives A and B include pavement
maintenance, striping, curb ramps, and storm drain infrastructure to
the following streets, respectively:
a. Orcutt Road (Tank Farm Road to City/County Line)
b. Calle Joaquin (Motel 6 to City/County Line)
Estimated Project Schedule: Start July 2025 — Completion December
2025
Estimated Project Useful Life: 20 years
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Resolution No. _____ (2025 Series) Page 3
R ______
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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