For City Council Meeting June 10, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request City Council Adopt Resolution No. 8357, Adopting a List of Projects Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 for Fiscal Year 2025/2026.
Body
RECOMMENDATION:
Staff recommends 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 2025/2026.
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 very succinct summary of the SB-1 provisions, which is included as Attachment 1. Some of the key provisions of SB-1 include:
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:
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 $2.6 million in FY 2024/2025. 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. City Council has approved updates to the project list via the following resolutions:
Each update was submitted to the California Transportation Commission (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:
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 from the fiscal year 2025/2026 RMRA revenues based upon previous Council priorities and the pavement ratings contained in the City’s Pavement Management System. Previously proposed and adopted projects may also utilize fiscal year 2025/2026 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, 2025.
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 4-3: Protect residences, sensitive land uses, and pedestrians from activities along rail corridors.
Goal 4-4: Protect school children and others from traffic hazards around schools.
Goal 4-5: Ensure the provision of adequate, convenient, and safe parking for all land uses.
Goal 4-6: Provide for all residents and businesses to have equal access to reliable and convenient public transit services.
Goal 4-7: Achieve optimum use of regional rail transit.
Goal 4-8: Establish and maintain a comprehensive system of pedestrian trails and bicycle routes that provide viable connections throughout the City.
Goal 4-9: Promote walking.
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 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. 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 2025/2026 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’s projected revenue from the RMRA in FY 2025/2026 is $2,817,026. Revenue and expenditure for the proposed $2,817,026 were budgeted in Gas Tax Account No. 22037305-47524 and Gas Tax Account No. 22037305-53001 during the annual budget process for FY 2025/2026. The RMRA funding will supplement the funding for the Pavement Management Program proposed as part of the FY 2026-2030 Five-Year Capital Improvement Plan (CI Plan).
Licensing
The proposed action will not require payment of a business license tax.