To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
title
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2606-038, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY SENATE BILL (SB) 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
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EXECUTIVE SUMMARY
Senate Bill (SB) 1, the Road Repair and Accountability Act of 2017, was signed into law on April 28, 2017 and will provide and invest $52.4 billion over the next decade to fix roads, freeways, and bridges in communities across California. The bill created a new Road Maintenance and Rehabilitation Account (RMRA) funded by gasoline and diesel excise taxes, diesel sales tax, and vehicle fees. The City’s FY 2026-27 allocation of SB 1 funding has been estimated by the State to be $1,975,756, which represents an increase of 6.9%, or $126,856, from last year.
According to adopted accountability and transparency provisions, the City is required to designate by City Council Resolution, and submit, a list of projects annually that will be funded by SB 1 proceeds. The annual submittal deadline is July 1st each year. Staff recommends adoption of the attached Resolution to meet the requirements of SB 1’s accountability and transparency provisions. The Resolution designates that FY 2026-27 SB 1 funding be applied to the Residential Street Rehabilitation Project, the Citywide Striping Project, and the Sidewalk Improvements and Repairs Project, as reflected in the proposed FY 2027-2031 Capital Improvement Program (CIP). Adoption of the attached Resolution would meet the state requirements for local expenditure of these funds.
BACKGROUND
SB 1 was signed into law on April 28, 2017 and will provide $52.4 billion in investments over the course of a decade to, in part, fix roads, freeways, and bridges in communities across California. These funds are split equally between state and local investments. California’s state-maintained transportation infrastructure receives approximately $26 billion of SB 1 revenue. The other $26 billion is allocated to local roads, transit agencies, and the expansion of the state’s growing network of pedestrian and cycle routes. Each year, this new funding will be used to address deferred maintenance needs both on the state highway system and the local road system. These maintenance needs include:
1. Repairs to Local Streets and Roads: $1.5 billion (over 10 years)
2. Maintenance/Rehabilitation of State Highway System: $1.5 billion (over 10 years)
3. Maintaining/Repairing the State’s Bridges & Culverts: $400 million (over 10 years)
Road Maintenance and Rehabilitation Account (RMRA) funds are generated by gasoline and diesel excise taxes, diesel sales tax, and vehicle fees. Gasoline and diesel tax increases took effect on November 1, 2017, and vehicle fee increases took effect on January 1, 2018.
The City previously received approximately $1.8M of Gas Tax funds (Highway Users Tax) on an annual fiscal year basis. The RMRA has increased the total amount of gas tax-related funds distributed to the City.
|
RMRA (SB 1) |
Revenue |
|
FY 17-18 |
$403,764 |
|
FY 18-19 |
$1,259,412 |
|
FY 19-20 |
$1,185,944 |
|
FY 20-21 |
$1,241,971 |
|
FY 21-22 |
$1,362,744 |
|
FY 22-23 |
$1,567,627 |
|
FY 23-24 |
$1,812,669 |
|
FY 24-25 |
$1,916,268 |
|
FY 25-26 |
$1,848,900 |
|
Estimated FY 26-27 |
$1,975,756 |
Previous year allocations were appropriated for the Manhattan Beach Boulevard Resurfacing Project - Aviation Boulevard to Inglewood Avenue, Torrance Blvd Resurfacing Project, Citywide Striping, the Residential Street Rehabilitation Project, and Sidewalk Improvements and Repairs Project.
The guidelines of the California Transportation Commission (CTC) require Cities to submit a resolution with an updated list of projects to be funded by SB 1 by July 1 of each year. The proposed Resolution appropriates FY 2026-27 SB 1 funding to the Residential Street Rehabilitation Project, Sidewalk Improvements and Repairs Project, and the Citywide Striping Projects as reflected in the proposed CIP.
Construction of the next cycle of Residential Street Rehabilitation Project will occur in FY 2026-27. The Sidewalk Improvements and Repair Project is an ongoing maintenance CIP that will continue throughout FY 2026-27. Lastly, the Department has engaged striping contractors for the Citywide Striping Project during FY 2022-23 and work will continue throughout FY 2026-27.
COORDINATION
The Resolution has been coordinated as part of the proposed CIP Budget for FY 2026-27 with the Financial Services Department and the City Manager’s Office. The Resolution was approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Adoption of the proposed Resolution will have no impact to the City’s General Fund. Anticipated receipts of SB 1 funding in FY 2026-27 are $1,975,756 based on State estimates. This new FY 2026-27 RMRA revenue is recommended for appropriation for the following projects in the proposed CIP budget:
|
• Residential Street Rehabilitation Project |
$1,300,000 |
|
• Sidewalk Improvements and Repairs |
$500,000 |
|
• Citywide Striping |
$100,000 |
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso No. 2606-038 A list of projects for SB 1