HomeMy WebLinkAboutCC 2025-04-08_09i SB1 ProjectsItem 9.i.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works
Nicole Valentine, Director of Administrative Services
BY: Shannon Sweeney, City Engineer
SUBJECT: Senate Bill 1 Projects for Fiscal Year 2025-26
DATE: April 8, 2025
RECOMMENDATION:
1) Adopt a Resolution adopting a list of projects for Fiscal Year 2025-26 funded by Senate
Bill 1;
2) Authorize the Director of Administrative Services to submit the Resolution to the
California Transportation Commission (CTC); and
3) Make findings that adopting the Resolution is not a project subject to the California
Environmental Quality Act (CEQA) because the adoption in itself has no potential to result
in either a direct, or reasonably foreseeable indirect, physical change in the environment.
(State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City’s allocation of SB1 funding for FY 2025-26 is projected to be $481,366. This
funding will be utilized to maintain the City’s streets. With this allocation, and the City’s
Gas Tax funding of $536,664, the total funding available from the State for street and
road maintenance is $1,018,031. A comprehensive 12-year expanded Pavement
Management Plan (City Street repairs) and schedule that utilizes Measure E-24 Sales
Tax funds will be presented to the Council in April.
BACKGROUND:
On April 28, 2017, the Governor signed SB1, known as the Road Repair and
Accountability Act of 2017. SB1 increases gasoline taxes and vehicle registration fees to
address deferred maintenance on the State highway system and the local street and road
system. These additional taxes are deposited by the State Controller into the Road
Maintenance and Rehabilitation Account (RMRA). A portion of this funding is apportioned
by formula to eligible cities and counties, including Arroyo Grande, pursuant to California
Streets and Highways Code (SHC) Section 203 2(h), and are to be used for basic road
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Item 9.i.
City Council
Senate Bill 1 Projects for Fiscal Year 2025-26
April 8, 2025
Page 2
maintenance, rehabilitation, and critical safety projects on the local streets and roads
system.
Because SB1 emphasizes accountability and transparency in transportation funding,
programming and use of the funds is contingent on recipient cities and counties providing
annual project reporting. Per SHC Section 2034(a)(1), prior to receiving any RMRA
funding, cities and counties must submit a list of projects, adopted by Resolution, to be
funded with the RMRA funds. The streets that are proposed for repairs/overlay treatments
using SB1 funding are Huasna Road and the Ikeda Way neighborhood shown on Figure 1
and to be included in its 2025 Street Repairs Project.
Figure 1: Proposed Street Repairs
ANALYSIS OF ISSUES:
SHC Section 2030(b) provides several types of projects and uses for RMRA funding that
include, but are not limited to, the following:
Road Maintenance and Rehabilitation
Safety Projects
Railroad Grade Separations
Complete Streets Components, including active transportation purposes, pedestrian
and bicycle safety projects, transit facilities, and drainage and stormwater capture
projects in conjunction with any other allowable project
Traffic Control Devices
Matching funds to State or federal funds for projects under this subdivision
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Item 9.i.
City Council
Senate Bill 1 Projects for Fiscal Year 2025-26
April 8, 2025
Page 3
Pursuant to SHC Section 2037, a city or county may spend its apportionment of RMRA
funds on transportation priorities other than those outlined in SHC Section 2030 if the city
or county’s average Pavement Condition Index (PCI) meets or exceeds 80. The City of
Arroyo Grande’s PCI is less than 80, therefore, this year’s RMRA funds must be spent on
the transportation priorities listed above.
The City maintains its approximately 68 miles of streets through two mechanisms: (1) the
City’s in-house street crew that provides daily efforts to keep streets functional, such as
pothole repair, and (2) capital projects as part of its plan to provide long term maintenance
and repair. Based on the SHC, the City can use its RMRA funds for either of these
services. Historically, the City has utilized its RMRA funds to augment the City’s plan for
upcoming roadway rehabilitation projects as opposed to allocating the funds to the City’s
in-house street maintenance program. This has been staff’s recommendation to the City
Council due to uncertainties that would be created by a decline in RMRA revenues or a
possible repeal of SB1. In these events, it would be less impactful to cut a specific long-
term project or a portion thereof than to reduce the City’s in-house street maintenance
program. Since the in-house street maintenance program addresses constant, immediate
short- and medium-term street safety issues (e.g., debris removal, potholes, skin
patching, re-striping, storm water and drainage repairs, etc.), funding must be readily
available for those more immediate needs.
In accordance with SHC Section 2036, the City must maintain its existing commitment of
local funds for street purposes to remain eligible for allocations of RMRA funds. This
commitment is generally referred to as Maintenance of Effort. To receive these RMRA
funds, each year the City must expend from its General Fund for street purposes in an
amount not less than the annual average of General Fund expenditures during fiscal
years (FY) 2009-10, FY 2010-11 and FY 2011-12, as reported to the State Controller’s
Office, pursuant to SHC Section 2151. For Arroyo Grande, the annual amount that must
be spent from the General Fund for street purposes is $1,431,971. The City complies with
this requirement using General Fund and Local Sales Tax Fund.
Additionally, SHC Section 2034(a)(1) details the requirement that cities and counties must
comply with when submitting their list of proposed projects to the CTC to be funded with
RMRA funds each fiscal year. The requirements include:
1. Adopt the proposed project by Resolution at a regular public City Council meeting;
2. Describe the proposed project and its location;
3. Develop a proposed schedule for the project’s completion; and
4. Estimate the useful life of the improvement.
The State has provided an estimate of $481,366 in FY 2025-26 RMRA funding available
to the City. It is recommended these RMRA funds be used to augment the City’s plan.
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Item 9.i.
City Council
Senate Bill 1 Projects for Fiscal Year 2025-26
April 8, 2025
Page 4
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution approving a list of projects to be funded by SB1 in Fiscal Year
2025-26;
2. Do not approve a Resolution approving a list of projects to be funded by SB1 in
Fiscal Year 2025-26 and request further information;
3. Modify staff’s recommendation and adopt a Resolution approving a list of projects
to be funded by SB1 in Fiscal Year 2025-26; or
4. Provide other direction to staff.
ADVANTAGES:
Submitting projects to the CTC will allow the City to receive RMRA funds. The projects
will help to protect the Cities investment in its roadway system.
DISADVANTAGES:
None identified at this time.
ENVIRONMENTAL REVIEW:
Adopting the Resolution is not a project subject to the California Environmental Quality
Act (CEQA) because the adoption in itself has no potential to result in either a direct, or
reasonably foreseeable indirect, physical change in the environment. (State CEQA
Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENT:
1. Proposed Resolution
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65501.00002\41404558.1
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ADOPTING A LIST OF PROJECTS FOR
FISCAL YEAR 2025-26 FUNDED BY SENATE BILL 1
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017
(Chapter 5, Statutes of 2017) was passed by the California 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 the residents of the City of Arroyo Grande (City) are aware of the projects
proposed for funding in the community and which projects have been completed with
such funding each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive
funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1,
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, it is anticipated that the City will receive an estimated $481,366 in
RMRA funding in Fiscal Year 2025-26 from SB1; and
WHEREAS, this funding will enable the City to continue essential road
maintenance and rehabilitation projects, safety improvements, repairing and replacing
aging bridges, and increasing access and mobility options for the traveling public that
would not have otherwise been possible without SB1 funding; and
WHEREAS, the City has undergone a process to ensure public input into the
community’s transportation priorities/the project list; and
WHEREAS, the City uses its Pavement Management System and collaboration of
the City’s various Departments to develop the SB1 project list to ensure revenues are
being used on the most high-priority and cost-effective projects that also meet the
community’s s priorities for transportation investment; and
WHEREAS, the funding from SB1 will help the City maintain and rehabilitate its
approximately 68 miles of streets/road throughout the City this year.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande
hereby:
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RESOLUTION NO.
PAGE 2
1. Finds that the foregoing recitals are true, correct and incorporated herein by this
reference.
2. Approves the following list of newly proposed projects that will be funded in-part
with fiscal year 2025-26 Road Maintenance and Rehabilitation Account revenues:
Project Title: 2025 Annual Street Repairs Project, PW 2025-01.
Project Description: This project will overlay pavement on City streets as part of
road maintenance and rehabilitation.
Project Location: Huasna Road and the Ikeda Way neighborhood.
.
Estimated Project Schedule: Project development in Spring/Summer 2025; bidding
in Winter 2026, and construction in Summer 2026.
Estimated Project Useful Life: The hot mix asphalt overlay planned for these
locations has a useful life of approximately 25 years.
On motion by Council Member ________, seconded by Council Member _______, and by
the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was adopted this 8th day of April, 2025.
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RESOLUTION NO.
PAGE 3
________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
_________________________________
ISAAC ROSEN, CITY ATTORNEY
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