To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Dominic DiGloria, Maintenance Superintendent
TITLE:
Title
SB1 Road Repair and Accountability Act - Project List Application FY2025-26
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution adopting a list of projects for Fiscal Year 2025-26 funded by Senate Bill 1: The Road Repair and Accountability Act of 2017 and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
On April 28, 2017, the California State Governor signed Senate Bill 1 (“SB1”), which is known as the Road Repair and Accountability Act of 2017. SB1 establishes the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the state highway system and local street and road systems, and the Road Maintenance and Rehabilitation Account (RMRA) for the deposit of various funds for the program. A percentage of RMRA funding is apportioned by formula to eligible cities and counties and can be used for projects that include, but are not limited to, road maintenance and rehabilitation, safety projects, railroad grade separations, complete street components, and traffic control devices. The funding from SB1 comes from a voter-approved increase to the gasoline excise tax.
Prior to receiving the City’s annual apportionment of SB 1 funding, the City must submit a project list to the California Transportation Commission (Commission) for which the City plans to use SB 1 funds. The purpose of this item is to adopt the project list for which the City plans to use SB1 funds in FY26 (Exhibit A of the attached Resolution). The project expenses below reflect the FY26 allocations in the proposed FY26 City of Napa Operating & Capital Budgets.
SB 1 Funds Allocated in FY26:
Road Maintenance $ 1,900,000
Total $ 1,900,000
FY26 SB1 funding will be allocated to road maintenance and street resurfacing work on Franklin Street, Old Sonoma Road, Underhill Drive, Sousa Lane, Jefferson Street, and in the South Franklin, Westview North, Jackson, and Fairview neighborhood areas. The detailed FY26 Project List is provided in Exhibit A of the attached Resolution.
FINANCIAL IMPACTS:
The proposed project list includes the use of FY26 projected revenues and SB 1/RMRA Program fund balance. The proposed FY26 SB1 Project List is consistent with the City’s recommended FY26 Operating and Capital Budget currently scheduled for City Council consideration on June 17, 2025.
Estimated FY26 SB1 Program Revenues:
$2,110,339 Estimated FY26 SB 1 (20230200-44327)
$ 109,835 Projected SB1 Undesignated fund balance (202-35999) (202-33999)
$2,220,174 Total Estimated Available Funds for FY26
Proposed SB 1 FY26 projects:
$1,900,000 Road Maintenance
$1,900,000 Total Expenditure Projection for FY26
The remaining, unprogrammed revenues will be used to replenish the SB1/RMRA Fund’s reserves. Following capital budget best practices and consistent with the City Council’s Fiscal Policy for the General Fund CIP, the fund maintains at least 10% of its annual funding allocation in reserves. This is an elastic funding source based on Gas Tax sales often resulting in a significant difference between projected revenues and actuals each year. Maintaining a healthy fund balance is important to keeping the fund’s planned programs and projects funded throughout the year. For example, fund balance is used if revenue actuals are lower than estimated at time of budgeting and/or may be allocated if project or program cost adjustments are needed mid-year. Fund balances are reviewed annually as part of the City’s Capital Improvement Planning and budget process.
CEQA:
The Public Works Director has determined that the Recommended Action described in this Agenda Report is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment.
However, the Recommended Action is part of a larger” project” that will be subject to environmental review in accordance with CEQA at the” earliest feasible time” prior to ”approval” consistent with CEQA Guidelines Sections 15004 and 15352. The larger” project” is future paving projects, and staff plans to bring back a CEQA analysis of each project to Council prior to approval of each project.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - FY26 Project List
NOTIFICATION:
None.