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HomeMy WebLinkAboutItem 11c - Adopting List of Projects STAFF REPORT PUBLIC WORKS SERVICES DEPARTMENT DATE: June 2, 2026 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Tiffany Lee, Interim Principal Civil Engineer SUBJECT: RESOLUTION NO. 7689 ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 CEQA: Not a Project Recommendation: Adopt SUMMARY On April 28, 2017, the Governor signed Senate Bill (“SB”) 1, which is known as the Road Repair and Accountability Act of 2017. SB 1 was enacted to address funding deficiencies for municipalities to perform routine maintenance and rehabilitation, and to address safety concerns on local streets and roads. In November 2017, the City started receiving Road Maintenance and Rehabilitation Account (“RMRA”) funding. For the City to continue to receive this funding, Arcadia must identify specific projects and show proof that the funds are budgeted in the City’s Fiscal Year 2026- 27 Capital Improvement Program (“CIP”). It is recommended that the City Council adopt Resolution No. 7689, adopting a list of projects for Fiscal Year 2026-27 funded by SB 1: The Road Repair and Accountability Act of 2017. The total budgeted amount of RMRA funding included in the Fiscal Year 2026-27 CIP for street and road repairs is $1,500,000. BACKGROUND On April 28, 2017, then-Governor Jerry Brown signed SB 1 into law to address road maintenance, rehabilitation, and critical safety projects on local streets and roads. SB 1 is funded through an increase in gasoline fuel excise taxes, diesel fuel sales taxes, Resolution No. 7689 Adopting a List of Projects June 2, 2026 Page 2 of 4 and vehicle registration fees. A percentage of the new RMRA funding has been apportioned by formula to eligible cities and counties to enhance existing street Maintenance of Effort (“MOE”) levels. The MOE for each City was established by the State Controller’s Office and is based on the average amount of monies spent on local-street and road projects during Fiscal Years 2018-19, 2019-20, and 2020-21. To receive RMRA funding, the City must continue to budget and spend that three- year average of discretionary funds on street improvement projects. The idea behind this approach is for cities to continue current funding levels to improve streets and roads, enhancing this effort with the additional RMRA funding. The City of Arcadia’s three-year average MOE is $2,015,411. A total of $2,799,105 in street related General Fund expenditures were recorded during the previous reporting period, exceeding the MOE average and making the City eligible to receive RMRA funding this year. It is estimated that the City of Arcadia will receive approximately $1,595,885 in RMRA funding in Fiscal Year 2026-27. It is important to note that while other transportation funds, including Measure R, Measure M, and the Highway Users Tax Act (“HUTA”), may be used for street maintenance and rehabilitation, such funds may not be used to meet the MOE three-year average requirement. RMRA funds can only be used for projects that include road maintenance and rehabilitation, road safety projects, railroad grade separations, traffic control devices, and complete street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects. DISCUSSION Prior to receiving an apportionment of RMRA funds, the City must annually submit a list of proposed projects that will utilize RMRA funds in the upcoming Fiscal Year to the California Transportation Commission (“CTC”). Subsequently, the proposed projects must be approved and adopted as part of the City’s Operating or CIP budgets, or later amended into the budget. The following project is proposed for submission to the CTC to receive RMRA funding and is included in the City’s Fiscal Year 2026-27 Capital Improvement Program: Resolution No. 7689 Adopting a List of Projects June 2, 2026 Page 3 of 4 Fiscal Year 2026-27 Pavement Rehabilitation Program – The project will resurface approximately 1.3 miles of City roadways with rubberized asphalt. Roadway segments include Altura Road (from Colorado Street to Monte Verde Drive), Birchcroft Street (from Palm Circle to end of cul-de-sac), Fairview Avenue (from Holly Avenue to Park Avenue), Lemon Avenue (from Santa Anita Avenue to El Monte Avenue), Oakwood Drive (from Orange Grove Avenue to Foothill Boulevard), and Palm Circle (from Palm Drive to north end of cul-de- sac). Other repair items to be included in the proposed project schedule are localized asphalt concrete dig-out repairs, and minor repairs to concrete curb and gutters, sidewalks, and cross gutters. ENVIRONMENTAL ANALYSIS This action of adopting a list of proposed funding allocations does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. CEQA will be reviewed, as appropriate, for each item listed in the proposed resolution when those plans are effectuated. FISCAL IMPACT The total amount of RMRA funding that will be included in the Fiscal Year 2026-27 Capital Improvement Program for street and road repairs is $1,500,000. It has been estimated that the City of Arcadia will receive approximately $1,595,885 in funds from RMRA. Any unused funds from the upcoming Fiscal Year can be carried over and used in the following years. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7689 adopting a list of projects for Fiscal Year 2026-27 funded by SB 1: The Road Repair and Accountability Act of 2017. Resolution No. 7689 Adopting a List of Projects June 2, 2026 Page 4 of 4 Attachment: Resolution No. 7689