To: Honorable Mayor and Members of City Council
From: Jessica Lowe, Public Works Director
Prepared By: Omar Flores, Management Analyst II
TITLE:
Title
SB1 Road Repair and Accountability Act - Project List Application Fiscal Year 2026/27
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution (1) adopting a list of projects for Fiscal Year 2026/27 funded by Senate Bill 1: The Road Repair and Accountability Act of 2017; and (2) 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 may be used for projects including, but 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 its annual apportionment of SB1 funding, the City must submit a project list to the California Transportation Commission for which the City plans to use SB1 funds. The purpose of this item is to adopt the project list for which the City plans to use SB1 funds in Fiscal Year 2026/27 (Exhibit A of the attached Resolution). The Fiscal Year 2026/27 City of Napa Operating & Capital Budgets allocate $2,152,431 in SB1 funding toward road maintenance in the fiscal year.
Fiscal Year 2026/27 SB1 funding will be used for road maintenance and street resurfacing projects on Buhman Avenue, East Avenue, Franklin Street, Jefferson Street, Linda Vista Avenue, Old Sonoma Road, Partrick Road, and within the Fairview, Jackson, La Homa, Montgomery, and Westview North neighborhood areas, as well as the Napa Valley Corporate Drive area. While construction of the Westwood Sidewalks project was completed in Fiscal Year 2025/26, project closeout expenditures are expected in Fiscal Year 2026/27. A detailed list of Fiscal Year 2026/27 projects is included as Exhibit A to the attached Resolution.
FINANCIAL IMPACTS:
The proposed project list includes the use of Fiscal Year 2026/27 projected revenues. The proposed Fiscal Year 2026/27 SB1 Project List is consistent with the City’s Fiscal Year 2026/27 Mid-Cycle Operating and Capital Budget.
Estimated Fiscal Year 2026/27 SB1 Program Revenues:
$2,186,320 Estimated Fiscal Year 2026/27 SB1 revenue (20230200-44327)
$ 99,218 Projected SB1 undesignated fund balance (202-35999) (202-33999)
$2,285,538 Total estimated available funds for Fiscal Year 2026/27
Proposed SB1 Fiscal Year 2026/27 projects:
$2,152,431 RMRA funding allocated to the Paving Program (30230810)
$2,152,431 Total expenditure projection for Fiscal Year 2026/27
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 strives to maintain 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 the 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 - Fiscal Year 2026/27 Project List
NOTIFICATION:
None.