HomeMy WebLinkAboutCC 2026-04-14_09e Senate Bill 1 ProjectsItem 9.e.
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 2026-27
DATE: April 14, 2026
RECOMMENDATION:
1) Adopt a Resolution adopting a list of projects for Fiscal Year 2026-27 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. (c)(2)-(3), 15378.)
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The City’s allocation of Senate Bill 1 (SB 1) funding for FY 2026-27 is projected to be
$514,790 (compared to $485,567 last year). This funding will be utilized to maintain the
City’s streets. With this allocation, and the City’s Gas Tax funding of $557,355, the total
funding available from the State for street and road maintenance is $1,072,145. A
comprehensive 13-year expanded Pavement Management Plan (City Street repairs) and
schedule that utilizes Measure E-24 Sales Tax funds was presented to the Council on
April 22, 20251 and is the other main source of funding for City street repairs.
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
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=43ec42d2-defc-44f6-ad47-
8a8c8b0bdea4&Agenda=Agenda&lang=English&Item=43&Tab=attachments
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Item 9.e.
City Council
Senate Bill 1 Projects for Fiscal Year 2026-27
April 14, 2026
Page 2
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 2032(h), and is to be used for basic road
maintenance, rehabilitation, and critical safety projects on the local streets and roads
system.
Because SB1 emphasizes accountability and transparency in trans portation funding,
programming, and use of the funds, it 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 street segments proposed for full-depth
reclamation treatment (completely rebuilt rather than just a surface treatment) using SB1
funding are most of Woodland Drive and all of Virginia Drive, as highlighted in Figure 1,
and are to be included in the 2026 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
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Item 9.e.
City Council
Senate Bill 1 Projects for Fiscal Year 2026-27
April 14, 2026
Page 3
Traffic Control Devices
Matching funds to State or federal funds for projects under this subdivision
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 (currently 55); 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, limited striping refresh, and small-scale asphalt patching, and (2) capital
projects as part of its plan to provide larger-scale and 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, stormwater and drainage repairs, etc.), funding must be readily available for
those immediate needs.
In accordance with SHC Section 2036, the City must maintain its existing commitment to
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 the General Fund and Local Sales Tax Funds.
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.
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Item 9.e.
City Council
Senate Bill 1 Projects for Fiscal Year 2026-27
April 14, 2026
Page 4
The State has provided an estimate of $514,790 (compared to $485,567 last year) in FY
2026-27 RMRA funding available to the City. It is recommended that these RMRA funds
be used to augment the City’s Pavement Management Plan.
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
2026-27;
2. Do not approve a Resolution approving a list of projects to be funded by SB1 in
Fiscal Year 2026-27 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 2026-27; 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 City’s investment in its roadway system.
DISADVANTAGES:
Full-depth reclamation will be impactful to the neighborhood, even though it will result in
a structurally sound roadway.
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. 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 2026-27 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 $514,790 (compared
to $485,567 last year) in RMRA funding in Fiscal Year 2026-27 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
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
SECTION 1. RECITALS. Finds that the foregoing recitals are true, correct and incorporated
herein by this reference.
SECTION 2. APPROVAL. Approves the following list of newly proposed projects that will
be funded in-part
with fiscal year 2026-27 Road Maintenance and Rehabilitation Account revenues:
Project Title: 2026 Annual Street Repairs Project, PW 2026-01.
Project Description: This project will perform full depth reclamation on City streets
as part of road maintenance and rehabilitation.
Project Location: Woodland Drive and Virginia Drive.
.
Estimated Project Schedule: Project development in Spring/Summer 2026; bidding
in Summer 2026, and construction in Fall 2026.
Estimated Project Useful Life: The full depth reclamation planned for these
locations has a useful life of approximately 25 years.
SECTION 3. CEQA. That the City Council finds 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. (c)(2)-(3), 15378.)
SECTION 4. Severability. If any provision of this Resolution or the application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 5. Effective Date. This Resolution shall become effective immediately.
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 14th day of April, 2026.
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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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