For City Council Meeting May 12, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Yazdan Emarani, P.E., Director of Public Works
Title
Request City Council to Adopt Resolution No. 8499, Adopting a List of Projects Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2026/2027.
Body
RECOMMENDATION:
Staff requests that the City Council adopt a resolution identifying a list of projects funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2026/2027.
BACKGROUND:
On April 28, 2017, the Governor signed Senate Bill 1 (SB-1), also known as the Road Repair and Accountability Act of 2017. This legislation addresses basic road maintenance, rehabilitation, and critical safety needs on state highways and local streets and roads. The California State Association of Counties provided a summary of the SB-1 provisions, which is included as Attachment 1. Some of the key provisions of SB-1 include:
• Increases per-gallon fuel excise taxes (12 cents per gallon increase effective November 1, 2017)
• Increases diesel fuel sales taxes (20 cents per gallon increase effective November 1, 2017)
• Provides for inflationary adjustments to tax rates in future years
The estimated annual funding supported by SB-1 is $5.2 billion, including $1.5 billion apportioned to local cities and $1.5 billion to counties for local streets and road repairs. As of November 1, 2017, the California State Controller (Controller) began depositing various portions of this funding into the Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding was apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
Pursuant to Streets and Highways Code (SHC) Section 2030(a), the objective of the Local Streets and Roads Program is to address deferred maintenance on the local streets and roads system through the prioritization and delivery of basic road maintenance and rehabilitation projects, as well as critical safety projects. Cities and counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements of the program are codified in SHC Sections 2034, 2036, 2037, and 2038 and include the following:
• Prior to receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city must submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with these funds.
• The list of projects 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 [SHC 2034(a)(1)]. The project list does not limit the flexibility to fund projects in accordance with local needs and priorities, so long as the projects are consistent with RMRA requirements as outlined in SHC 2030(b) [SHC 2034(a)(1)].
• The CTC will report to the Controller the cities that have submitted a list of projects as described in SHC 2034(a)(1) and that are therefore eligible to receive an apportionment of RMRA funds for the applicable fiscal year [SHC 2034(a)(2)].
• The Controller, upon receipt of the report from the Commission, shall apportion RMRA funds to eligible cities pursuant to SHC 2032(h) [SHC 2034(a)(2)].
• For each fiscal year in which RMRA funds are received and expended, cities must submit documentation to the CTC that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement [SHC 2034(b)].
• A city receiving an apportionment of RMRA funds is required to sustain a maintenance of effort (MOE) by spending at least the annual average of its general fund expenditures during the 2009/2010, 2010/2011, and 2011/2012 fiscal years for street, road, and highway purposes from the city’s general fund [SHC 2036].
• A city may spend its apportionment of RMRA funds on transportation priorities other than priorities outlined in SHC 2030(b) if the city’s average Pavement Condition Index (PCI) meets or exceeds 80 [SHC 2037].
• By July 1, 2023, cities receiving RMRA funds must follow guidelines developed by the California Workforce Development Board (Board) that address participation and investment in, or partnership with, new or existing pre-apprenticeship training programs [SHC 2038].
Since 2018, staff have identified a list of streets for pavement rehabilitation to be funded in part with the new Gas Tax funds through SB-1. The SB-1 revenue has steadily increased from $1.8 million in FY 2018/2019 to $2.7 million in FY 2025/2026. Staff’s approach prioritized local residential streets unsuitable for slurry seal, generally progressing from Zone 5 (south) to Zone 1 (north). Initial efforts focused on Zones 4 and 5, with later amendments expanding to include Arterial and Collector streets. The City Council has approved updates to the project list via the following resolutions:
• Resolution No. 7499 on April 23, 2019
• Resolution No. 7605 on April 29, 2020
• Resolution No. 7731 on June 8, 2021
• Resolution No. 7908 on June 14, 2022
• Resolution No. 8086 on June 13, 2023
• Resolution No. 8240 on June 11, 2024
• Resolution No. 8357 on June 10, 2025
Each update was submitted to the CTC in compliance with SB 1 funding requirements.
ANALYSIS/DISCUSSION:
Pursuant to SHC Section 2030(a), RMRA funds made available for the Local Streets and Roads Funding Program shall be prioritized for expenditure on basic road maintenance and rehabilitation projects, and on critical safety projects. SHC Section 2030(b-f) provides a number of sample 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
• Funds made available by the program may also be used to satisfy a match requirement in order to obtain state or federal funds for projects authorized by this subdivision
• Specifies additional project elements that will be incorporated into RMRA-funded projects by cities to the extent possible and cost-effective, and where feasible as deemed by cities. These elements are:
§ Technologies and material recycling techniques that lower greenhouse gas emissions and reduce the cost of maintaining local streets and roads through material choice and construction methods.
§ Systems and components in transportation infrastructure that recognize and accommodate technologies, including but not limited to ZEV fueling or charging and infrastructure-vehicle communications for transitional or fully autonomous vehicles.
§ Project features to better adapt the transportation assets to withstand the negative effects of climate change and promote resiliency to impacts such as fires, floods, and sea level rise (where appropriate, given a project’s scope and risk level for asset damage due to climate change).
§ Complete Streets Elements (such as project features that improve the quality of bicycle and pedestrian facilities and that improve safety for all users of transportation facilities) are expected to be incorporated into RMRA-funded projects to the extent as deemed by cities beneficial, cost-effective, and practicable in the context of facility type, right-of-way, project scope, and quality of nearby facilities.
The City encourages public input into our community’s transportation priorities and street conditions. Feedback is gathered through the Public Works Department’s service request process, City Council Meetings, and Planning Commission Meetings. The City uses a Pavement Management System to evaluate current pavement conditions and develop the SB 1 project list. Streets with lower Pavement Condition Index (PCI) scores are ranked as higher priorities. This ensures that public input is incorporated and that funds are directed toward the highest-priority, most cost-effective projects that align with community needs.
Exhibit A of the attached resolution provides a list of eligible project locations recommended by staff for funding with fiscal year 2026/2027 RMRA revenues based on previous City Council priorities and the pavement ratings contained in the City’s Pavement Management System. Previously proposed and adopted projects may also utilize fiscal year 2026/2027 RMRA revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City reaffirms to the public and the State the City’s intent to fund these projects with RMRA revenues.
City Council will have the opportunity to prioritize or amend these streets at its discretion within the guidelines provided by the State as necessary, as part of the annual budget approval process. The CTC Guidelines for the implementation of the apportionment for the RMRA funding require the submittal of an approved project list to the CTC no later than July 1, 2026.
ENVIRONMENTAL IMPACT:
The plan is exempt from the California Environmental Quality Act (CEQA) review per Section 15268, Ministerial Projects. Section 15268 allows public agencies to make non-discretionary determinations as a part of implementing its regulations. However, the individual projects are subject to the CEQA process and will be reviewed and approved on an individual basis.
GENERAL PLAN CONSISTENCY:
Approval of this action complies with the City of Rialto General Plan Goals and related Policies:
Goal 4-1: Provide transportation improvements to reduce traffic congestion associated with regional and local trip increases.
Goal 4-2: Protect residential neighborhoods from through traffic impacts.
Goal 4-4: Protect school children and others from traffic hazards around schools.
Goal 4-8: Establish and maintain a comprehensive system of pedestrian trails and bicycle routes that provide viable connections throughout the City.
Goal 4-10: Provide a circulation system that supports Rialto’s position as a logistics hub.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the resolution and approved it as to form.
FINANCIAL IMPACT:
Operating Budget Impact
Apportionment of RMRA funds requires Rialto to sustain a MOE by spending at least the annual average of its general fund expenditures during the 2009/2010, 2010/2011, and 2011/2012 fiscal years for street, road, and highway purposes from the City’s General Fund. The State Controller initially established a preliminary MOE for Rialto at $618,840. Upon final review of the certified Rialto General Fund expenditures for street purposes for the period of July 1, 2009, through June 30, 2012, the State Controller’s Office (SCO) issued a final revised MOE for Rialto at $368,490 as noted in a letter from SCO dated January 8, 2018, included as Attachment 2.
The average amount of $368,490 is the annual expenditure amount Rialto must expend annually for street purposes in order to receive any RMRA local streets and roads fund allocations. Staff will include this amount in the FY 2026/2027 General Fund budget request during the annual budget process.
Capital Improvement Budget Impact
According to the California Local Government Finance Almanac, the City of Rialto expects to receive $2,961,998 from the RMRA in fiscal year 2026/2027. The budget for this amount will be allocated in the revenue Gas Tax Account No. 22037305-47524 and expenditure Gas Tax Account No. 22037305-53001 during the annual budgeting process for FY 2026/2027. This RMRA funding will enhance the financial support for the Pavement Management Program included in the proposed Five-Year Capital Improvement Plan (CIP) for 2026-2030.
Licensing
The proposed action will not require payment of a business license tax.