HomeMy WebLinkAboutItem 5e. 2026-27 Road Maintenance Recovery Act (SB1) Funding and Projects Item 5e
Department: Public Works
Cost Center: 9501
For Agenda of: 6/2/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Brian Nelson, Deputy Director of Public Works / City Engineer, and Morgan
Edmunson, Engineer II
SUBJECT: 2026-27 ROAD MAINTENANCE RECOVERY ACT (SB1) FUNDING AND
PROJECTS
RECOMMENDATION
Adopt a draft Resolution entitled, “A Resolution Adopting a Project List for Fiscal Year
2026-27 funded by SB 1, The Road Repair and Accountability Act of 2017.” (Attachment
A)
POLICY CONTEXT
This action and the associated resolution are required by the California Transportation
Commission (CTC) for the use of Road Maintenance and Rehabilitation Act of 2017
RMRA funds. The proposed projects are consistent with the 2025-27 Financial Plan and
Major City Goals.
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 Maintenance and Rehabilitation Act of 2017 (RMRA).
RMRA/SB1 addresses basic road maintenance, rehabilitation, and critical safety needs
on both the state highway and local roadway systems. RMRA 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,
2018.
4. An additional $100 vehicle registration tax on zero emissions vehicles model
year 2020 or later effective July 1, 2020.
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Item 5e
Based on the latest forecasts (January 2026), the City is estimated to receive
approximately $1,389,851 of RMRA funding in FY 2026-27. RMRA funds are
programmed into the financial plan to help fund eligible Capital Improvement Plan (CIP)
projects. The California Transportation Commission (CTC) has published guidelines for
programming and reporting on the use of RMRA funds. Annually on July 1st, the City
must submit a project list to the CTC for the coming year, as approved by Council with
this staff report. By October 1st of every year, staff submit a project expenditure report
directly to the CTC for the prior year expenditures. This report and City Council
Resolution complete the City’s obligation for the RMRA fund programming via the project
list submission for Fiscal Year 2026-27.
Recommended Use of 2026-27 RMRA/SB1 Funding
2026 Roadway Sealing Project, Specification No. 2000617
The 2026 Roadway Sealing Project, planned to start construction in summer of 2026, is
part of the City’s ongoing pavement management plan, which alternates between
maintenance of neighborhood streets in even 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 2026 Roadway Sealing Project is structured with a Base Bid and one Additive
Alternative to maximize the scope of work within available funding. The project’s Base
Bid includes roadway slurry sealing, striping, and implementation of the City’s Active
Transportation Plan and Vision Zero goal on the following streets:
Roadway Sealing (Slurry and Stripe)
a. Mill Street Neighborhood Greenway (Chorro Street to Pepper
Street)
b. Meadow Park Neighborhood Greenway
c. Sinsheimer Park Neighborhood
d. Southwood Neighborhood
e. French Park Neighborhood
Roadway Striping Refresh (no paving work or other improvements)
a. Aerovista Place (Airport Drive to Broad Street)
b. South Street (Higuera Street to Broad Street)
c. Bishop Street (Augusta Street to Johnson Avenue)
d. Sierra Way (Ella Street to Bishop Street)
e. Johnson Avenue (Monterey Street to Buchon Street and San Luis
Drive to Bishop Street)
f. North Chorro Street (Ferrini Road to Foothill Boulevard and
Rougeot Place to Murray Avenue)
g. California and Foothill Intersection
h. Santa Fe Road (Airport to Broad Street)
Fog Seal and Stripe
a. San Luis Drive (Johnson Avenue to California Boulevard)
b. Orcutt Road (Broad Street to Laurel Lane)
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Item 5e
c. Johnson Avenue (Buchon Street to San Luis Drive)
Crack Seal
a. South Broad Street (Tank Farm to Southern City Limit)
Methacrylate
a. Elks Lane Bridge
The project’s Additive Alternative A includes slurry and striping on the
below street segment:
a. Broad Street (Tank Farm Road to Farmhouse)
Figure 1 below shows the locations identified in the 2026 Roadway Sealing Project for
roadway sealing, striping refresh, fog seal and stripe, methacrylate, and crack seal.
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Item 5e
Figure 1: 2026 Roadway Sealing Project Map
In addition to roadway reconstruction and maintenance, the 2026 Roadway Sealing
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, including implementing the Mill Street Neighborhood Greenway and installing
high-visibility crosswalk markings on Orcutt Road, 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.
Previous Council or Advisory Body Action
At the May 5, 2026 City Council meeting, staff received Council authorization to
advertise the 2026 Roadway Sealing Project.
Public Engagement
Public engagement is ongoing for the summer roadway maintenance project p roposed
to be funded by SB1 funds. In addition, the public has an opportunity to comment on
this item at or before the 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 2026 Roadway Sealing project qualifies for an Exemption to the California
Environmental Quality Act pursuant to State CEQA Guidelines Sections 15301 (Existing
Facilities) because the project consists of the repair and maintenance of existing
roadways, and minimally disruptive surface improvements within an existing built urban
environment (pavement markings, signposts, etc.). A Notice of Exemption was filed
through the Community Development Department for the 2026 Roadway Sealing
project.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Other: RMRA/SB1 $1,389,851 $1,389,851 $0
Total $1,389,851 $1,389,851 $0
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Item 5e
The recommendations in this report will:
1. Establish a project list for the FY 2026 -27. The establishment of this project list
does not commit these RMRA funds. Council could, at any point prior to
expenditure, change funding priorities or project allocations based upon
changes in economic conditions that could impact SB1 revenue. Any project list
changes would be communicated to the CTC via the annual expenditure report
in October each year. The below table indicates the total SB1 funding
contribution to be used for the 2026 Roadway Sealing Project. Council received
a separate staff report at the May 5, 2026, 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 2026-27
Project 2026-27 Funding
2026 Roadway Sealing Project $1,389,851
Total $1,389,851
Estimated SB 1 2026-27 $1,389,851
ALTERNATIVES
The City Council could deny adoption of the resolution to fund these Capital
Improvement Plan projects using RMRA funds. If RMRA funds are not allocated
to these projects, alternative funding source s will need to be identified from within the
Capital Improvement Plan to proceed with implementation of the May 5th Council -
approved 2026 Roadway Sealing Project. This project improves critical safety needs,
maintains existing infrastructure, and furthers the City’s transportation multi-modal
and climate action goals.
ATTACHMENTS
A - Draft Resolution adopting the list of projects to receive 2026-27 RMRA Funding.
Page 33 of 454
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R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, A DOPTING A PROJECT LIST FOR FISCAL
YEAR 2026-27 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 City 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 $1,389,851 in RMRA funding in
Fiscal Year 2026-27 from SB-1; and
WHEREAS, 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, 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 the community’s transportation priorities, and budgeting process that has been
adopted by the 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 2022 California Statewide Local Streets and Roads Needs
Assessment found that the City/County’s streets and roads are in an “At Risk” condition
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Resolution No. _____ (2026 Series) Page 2
R ______
and this revenue will help the City increase the overall quality of the road system and over
the next decade will bring City 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.
SECTION 2. The following project will be funded in-part with Fiscal Year 2026-
27 RMRA revenues:
Project Title: 2026 Roadway Sealing Project
Project Description: 2026 Roadway Sealing work consistent with Pavement
Maintenance Plan
Project Location:
1. Roadway Sealing (Slurry and Stripe)
a. Mill Street Neighborhood Greenway (Chorro Street to Pepper
Street)
b. Meadow Park Neighborhood Greenway
c. Sinsheimer Park Neighborhood
d. Southwood Neighborhood
e. French Park Neighborhood
2. Roadway Striping Refresh (no paving work or other improvements)
a. Aerovista Place (Airport Drive to Broad Street)
b. South Street (Higuera Street to Broad Street)
c. Bishop Street (Augusta Street to Johnson Avenue)
d. Sierra Way (Ella Street to Bishop Street)
e. Johnson Avenue (Monterey Street to Buchon Street and San Luis
Drive to Bishop Street)
f. N Chorro Street (Ferrini Road to Foothill Boulevard and Rougeot
Place to Murray Avenue)
g. Santa Fe Road (Airport to Broad Street)
h. California and Foothill Intersection
3. Fog Seal and Stripe
a. San Luis Drive (Johnson Avenue to California Boulevard)
b. Orcutt Road (Broad Street to Laurel Lane)
c. Johnson Avenue (Buchon Street to San Luis Drive)
4. Crack Seal
a. South Broad Street (Tank Farm to Southern City Limit)
5. Methacrylate
a. Elks Lane Bridge
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Resolution No. _____ (2026 Series) Page 3
R ______
The project’s Additive Alternative A include slurry and stripe on the below
street, respectively:
a. Broad Street (Tank Farm Road to Farmhouse)
Estimated Project Schedule: Start August 2026 — Completion December 2026
Estimated Project Useful Life: 10 years
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 _______________ 2026.
___________________________
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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