Report Prepared by: Laura Ivancich, Management Analyst, Engineering Department
Title
SUBJECT: Adoption of a Resolution Approving the Fiscal Year 2025/2026 Project List for the Road Repair Accountability Act (SB 1), Local Streets and Roads Funding
REPORT IN BRIEF
Considers adopting a Resolution approving the list of projects proposed to be funded with Road Maintenance and Rehabilitation Account (RMRA) funds pursuant to SB1 for FY 2025/2026.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2025-40, a Resolution of the City Council of the City of Merced, California, adopting a list of projects for Fiscal Year 2025-2026 funded by SB1: The Road Repair and Accountability Act of 2017; and,
B. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by staff; or,
2. Approve, subject to modifications by City Council; or,
3. Deny.
AUTHORITY
Streets and Highways Code (SHC) Section 2034(a)(1) requires an eligible city to submit to the California Transportation Commission a list of projects proposed to be funded with Road Maintenance and Rehabilitation Account (RMRA) funds; the approved project list must be incorporated into City budget and adopted at a regular public meeting.
CITY COUNCIL PRIORITIES
Addresses City Council Priority for local roads/sidewalks/traffic.
DISCUSSION
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), also known as the Road Repair and Accountability Act of 2017. This program provides funding for basic road maintenance, rehabilitation, and critical safety needs for state highways and local streets.
The funding will be deposited by the State Controller into the Road Maintenance and Rehabilitation Account (RMRA) and will be apportioned by formula to eligible cities. For a city to be eligible to receive RMRA funding, an approved project list must be approved at a regular public meeting and submitted to the California Transportation Commission (CTC) no later than July 1st each year.
Projects eligible for RMRA funding include, but are not limited to, road maintenance and rehabilitation, safety projects, railroad grade separations, complete street 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), and traffic control devices.
The project list must include a description, location, completion schedule, and estimated useful life of the improvement. This project list does not limit the City’s flexibility in completing projects based on local needs and priorities, as long as, the projects meet the standards in the RMRA guidelines. The City is required to annually submit a project list to the CTC in order to continue to be eligible for RMRA funding.
FY 2025/2026 Apportionment and Project Lists
The City of Merced is anticipated to receive $2,409,508 in RMRA (SB1) funding for FY 25/26. The Engineering and Public Works departments have developed a list of projects to be funded utilizing the FY 25/26 apportionment.
As not all of the FY 24/25 SB1 projects were completed and may require additional funding, these must appear again on the FY 25/26 SB1 project list.
The FY 25/26 projects include:
IMPACT ON CITY RESOURCES
The adopted SB1 projects list must be submitted to the California Transportation Commission (CTC) no later than July 1, 2025, in order for the City of Merced to be eligible to receive the FY 2025/2026 apportionments.
A city or county 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 2009-10, 2010-11, and 2011-2012 fiscal years for the street and roadway purposes. The current MOE is $124,538 per year in order to remain eligible for RMRA funding. Although the language used is “general fund”, the MOE can be and will be met by using “old” Measure C (Fund 2001). The MOE requirement and the proposed list of projects have been included in the City Manager’s Recommended FY 2025-26 Budget.
ATTACHMENTS
1. Resolution 2025-40