CC SR 20260217 C - CIP Reallocation of Measure R Funds
CITY COUNCIL MEETING DATE: 02/17/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider reallocating special revenue funding for two capital improvement projects.
RECOMMENDED COUNCIL ACTION:
(1) Approve a budget reallocation of $400,000 in Measure R Funds from the Capital
Improvement Program (CIP) project Roadway Management Program - Palos
Verdes Drive East (Project 8858) to the Palos Drive South Landslide Repair
(Project 8302) to avoid restricted funds from lapsing; and
(2) Approve a budget reallocation of $400,000 in Gas Tax (SB-1) Fund from the Palos
Verdes Drive South Landslide Repair (Project 8302) to the Palos Verdes Drive
East (Project 8858).
FISCAL IMPACT: If approved, the proposed budget changes will have no additional
financial impact and will reallocate restricted funds between
projects to avoid the potential lapse of Measure R funds. The
original Fiscal Year (FY) 2025-26 budget amount for each CIP
project would remain unchanged with the recommended City
Council action. VR
Amount Budgeted: $400,000
Additional Appropriation: N/A. See budget adjustments below
Account Number(s): 220-400-8858-8802 ($400,000)
(Measure R – Roadway Maint PVDE– Improvements)
220-400-8302-8XXX $400,000 (Measure R – PB Repair-Multiple Account Nos.)
204-400-8302-8XXX ($400,000)
(Gas Tax (SB-1) – PB Repair -Multiple Account Nos.)
204-400-8858-8802 $400,000
(Gas Tax (SB-1) – Roadway Maint PVDE – Improvements) VR
ORIGINATED BY: Lorna Cloke, Senior Administrative Analyst
REVIEWED BY: Ramzi Awwad, Public Works Director
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. FY2025-26 CIP Project Sheet Roadway Management Program – Palos Verdes
Drive East: Project 8858 (page A-1)
1
B. FY2025-26 CIP Project Sheet Palos Verdes Drive South Landslide Repair
Program: Project 8302 (page B-1)
BACKGROUND:
The Roadway Management Program – Palos Verdes Drive East project (CIP Project
8858) was approved for $1.495 million in Measure R funding for construction as a part of
the FY 2025-26 CIP (Attachment A). The project design has added a more in-depth
geotechnical engineering analysis than originally anticipated in an effort to potentially
reduce construction costs. As a result, the design phase is taking longer than originally
anticipated, pushing back construction. Construction is now expected to begin in late
FY2025-26 and may be completed by early FY2026-27.
The revised construction timeline could potentially cause a portion of the project’s special
revenue Measure R funding (approximately $400,000 to lapse). Measure R is a county-
wide sales tax allocation approved in 2008 to fund transportation improvements, including
rehabilitation of arterial streets. Cities receive an annual allocation which may lapse if not
spent within 5 years. The City has typically combined funding from multiple years to form
larger projects that can benefit from economies of scale.
To avoid the potential for funds lapsing, Staff propose reallocating the Measure R funding
to the Palos Verdes Drive South Landslide Repair Program (CIP Project 8302 –
Attachment B), which can spend the funding by the deadline of June 30, 2026. In
exchange, Staff would reallocate $400,000 in Gas Tax SB-1 funds from CIP Project 8302
to the Roadway Management Program – Palos Verdes Drive East project. Gas Tax SB-
1, is a state-wide transportation tax allocation established by the Road Repair and
Accountability Act of 2017 to repair, rehabilitate, and maintain transportation
infrastructure. Gas Tax SB-1 does not have a lapsing provision. Both projects are suited
for this funding.
The original FY2025-26 budget amount for each project would remain unchanged.
CONCLUSION:
Staff propose reallocating Measure R and Gas Tax SB-1 funding between two capital
projects: Roadway Management Program – Palos Verdes Drive East and Palos Verdes
Drive South Landslide Repair Program to avoid a potential lapse of Measure R funding.
ALTERNATIVES:
In addition to Staff recommendation, the following alternative action s are available for the
City Council’s consideration:
1. Identify an alternative reallocation of Measure R funding.
2. Allow about $400,000 of Measure R funding to lapse.
2
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422 City of Rancho Palos Verdes | Adopted Budget | Capital Improvement Program (Fiscal Years 2025-2026 through 2029-30)
Insert Descriptive Photo
PROJECT DESCRIPTION
Palos Verdes Drive East, from Palos Verdes Drive South to the city limit, and consists of:
- Resurfacing the existing asphalt
- Replacing damaged asphalt
- Replacing damaged curbs, gutters, and sidewalks
- Replacing pavement markings and signs
- Improving drainage (if needed)
PROJECT COST ESTIMATES
8858
Roadway Maintenance Program - Palos Verdes Drive East
Overall
Committed as of
FUNDING
215 (Proposition C)
Committed as of
4/17/2025
131,208$ -$ -$ -$ -$
FY27/28 FY28/29
131,208$ 1,845,000$ 955,000$ -$ -$ 820,000$ 3,695,000$
$ 175,000 720,000$
Good road conditions with smooth pavement are expected by the City’s residents and
businesses.
According to the 2025 Pavement Management Program (PMP) Palos Verdes Drive East
has an average Pavement Condtion Index (PCI) of 85.
Timely maintenance reduces the overall lifecycle costs of roadway infrastructure.
Road conditions are assessed through a triennial inspection and assigned a rating which
determined that treating this section of roadway will reduce the overall life cycle cost and
improve its condition.
ESTIMATED SCHEDULE
(Vista Del Mar to Crest - Ganado TC, Corsini to Marion - Miraleste TC)
Engineering and Construction in Fiscal Years 2026-27: PVDS to Vista Del Mar, Crest to Corsini, Marion to Sunnyside Ridge
Engineering and Construction in Fiscal Years 2029-30: Sunnyside Ridge to City Limit (Section needs to be milled & paved)
Project Location Map Background and Justification
220 (Measure R)-$
-$
-$ -$ -$ -$ -$
(CIP Fund)
-$ -$ -$ -$ -$ -$ -$
-$ 350,000$
1,495,000$
FY25/26 FY26/27
Future
A-1
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City of Rancho Palos Verdes | Adopted Budget | Capital Improvement Program (Fiscal Years 2025-2026 through 2029-30) 377
4/17/2025
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PROJECT DESCRIPTION
Greater Portuguese Bend Landslide Complex and consists of repairing:
- The asphalt roadway
- Storm drain infrastructure
- Curbs and gutters
- Traffic signs and pavement markings
PROJECT COST ESTIMATES
8302
Palos Verdes Drive South Landslide Repair Program
Overall
Committed as of
NA N/A
NA -
Recurring
Program
FUNDING
Future
Funding source for future needs
undetermined
215 (Proposition C)
(Gas Tax - SB1)
(Measure R)
(CIP Fund)
-$ 750,000$ -$
-$
-$ -$ 500,000$ -$
-$ 600,000$ 300,000$
Regular repair, resurfacing, and patching of the roadway and associated infrastructure
is needed to mitigate impacts of roadway movement caused by the landslide. This
program is expected to continue until landslide movement in this area can be
managed. The roadway is regularly inspected and work is performed an as-needed
basis as defects are discovered.
ESTIMATED SCHEDULE
Work beyond Fiscal Year 2026-27 is contingent on identifying available funding sources.
Work in remaining years TBD.
Project Location Map Background and Justification
B-1