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CC SR 20260616 I - SB-1 Projects FY26-27 CITY COUNCIL MEETING DATE: 06/16/2026 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider approving projects proposed to be funded by Senate Bill No. 1, the Road Repair and Accountability Act of 2017, for Fiscal Year 2026-27. RECOMMENDED COUNCIL ACTION: (1) Adopt Resolution No. 2026-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A LIST OF PROJECTS TO RECEIVE FUNDING FOR FISCAL YEAR 2026-27 FROM SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017. FISCAL IMPACT: Funding for the proposed Road Maintenance and Rehabilitation Accountability Act project list is part of the proposed Fiscal Year (FY) 2026-27 General Fund operating budget in the amount of $232,105 and the Capital Improvement Program (CIP) in the amount of $3,940,000 that is proposed for City Council consideration under a separate agenda item this evening. The total amount budgeted is $4,172,105. The recommended Resolution is a requirement of Senate Bill No. 1 (SB 1), demonstrating the planned use of these funds for FY 2026- 27. The City will receive an estimated $1,184,322 in SB 1 funds in FY 2026-27 that will be applied to four proposed projects with the balance coming from prior year’s fund balance. VR Amount Budgeted: $4,172,105 (FY 2026-27 Draft Budget) Additional Appropriation: N/A Account Number(s): 204-400-3170-5201 ($232,105) (SB-1-Street Pavement-Repair & Maint. Services) 204-400-8302-XXXX ($1,830,000) (SB-1-PVDS Landslide Repair Program) 204-400-8855-XXXX ($400,000) (SB-1-Roadway Maintenance Program PVDS-Various) 204-400-8858-XXXX ($1,710,000) (SB-1-Roadway Maintenance Program PVDE-Various) VR ORIGINATED BY: Lorna Cloke, Senior Administrative Analyst REVIEWED BY: Ramzi Awwad, Public Works Director 1 CITYOF RANCHO PALOS VERDES APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2026-___ (page A-1) B. Street Sweeping Contract Rates Sheet for FY 2026-27 (page B-1) C. Capital Improvement Project Sheet, Palos Verdes Drive South Landslide Repair Program (8302) (page C-1) D. Capital Improvement Project Sheet, Palos Verdes Drive South Landslide Repair Program (8855) (page D-1) E. Capital Improvement Project Sheet, Palos Verdes Drive South Landslide Repair Program (8858) (page E-1) BACKGROUND: Senate Bill 1, the Road Repair and Accountability Act of 2017 (SB1), was signed into law in April 2017. SB 1 imposed a combination of fuel taxes (gasoline and diesel) and vehicle license fees (including for zero-emission vehicles) to fund road maintenance, rehabilitation, and safety needs on local street and road systems. The City receives SB 1 funds from the Road Maintenance and Rehabilitation Account (RMRA), managed by the State Controller’s Office. Use of the funds is reported to the California Transportation Commission. The State Controller’s Office forecasts that the City will receive an estimated $1,184,322 in SB 1 funds in FY 2026-27. To receive the funds, the City must submit a resolution with the proposed project list wholly or partially funded by SB 1 for the upcoming fiscal year by July 1, 2026 (Attachment A). The projects may, among others, include annual road maintenance or capital projects. The City may also use these funds for other eligible projects not on the list without penalty if the City’s priorities change. DISCUSSION: Staff propose appropriating $232,105 of the $1,184,322 in SB 1 funds towards the City’s Street Sweeping Program, as proposed in the FY 2026-27 operating budget. The rate sheet depicting the proposed program cost for FY 2026-27 is attached (Attachment B). The funds will be used to clean and maintain arterial/collector and residential streets throughout the City 24 times per year. The remaining SB 1 funds of $952,217 plus $2,778,783 from prior year’s SB 1 fund balance are proposed to be used in FY 2026-27 for three CIP projects: • $1,830,000 for CIP Project 8302: Palos Verdes Drive South Landslide Repair Program (Attachment C) • $400,000 for CIP Project 8855: Roadway Maintenance Program Palos Verdes Drive South and West (Attachment D) 2 • $1,710,000 for CIP Project 8858: Roadway Maintenance Program Palos Verdes Drive East (Attachment E) A fund balance of $197,279 remains and will be reserved for future Roadway Asset Management Program projects as needed. CONCLUSION: Staff recommends the City Council adopt the attached resolution (Attachment A) to use SB-1 funds toward Citywide street sweeping of arterial/collector and residential streets; towards the repair of Palos Verdes Drive South and other roadways in the Greater Portuguese Bend Landslide Complex; and the rehabilitation of two arterial roads: Palos Verdes Drive South from Hawthorne to Schooner Drive, and Palos Verdes Drive East from Palos Verdes Drive South to Marion Drive. ALTERNATIVES: In addition to the Staff recommendations, the following alternative actions are available for the City Council's consideration: 1. Provide other funding for Citywide Street Sweeping and direct Staff to use the SB 1 funds for another eligible project or program or to reserve them for future use. 2. Take other action, as deemed appropriate. 3 RESOLUTION NO. 2026-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING A LIST OF PROJECTS TO RECEIVE FUNDING FOR FISCAL YEAR 2026-27 FROM BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (“SB 1”), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of Rancho Palos Verdes are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, SB 1 requires the City of Rancho Palos Verdes to adopt, by resolution, a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (“RMRA”), created by SB 1, which resolution must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Rancho Palos Verdes will receive an estimated $1,184,322 in RMRA funding in Fiscal Year 2026-27 from SB 1; and WHEREAS, this is the tenth year in which the City of Rancho Palos Verdes is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Rancho Palos Verdes has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Rancho Palos Verdes used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Rancho Palos Verdes maintain and rehabilitate streets/roads throughout the City this year and many similar projects into the future; and A-1 WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “good” condition, but has further deteriorated since the assessment, and this revenue will help us increase the overall quality of our road system and, over the next decade, will bring our streets and roads into a “excellent” condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant and positive co-benefits, statewide. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: Section 1: The foregoing recitals are true and correct and incorporated herein by reference. Section 2: The following list of projects will be funded in part or solely with Fiscal Year 2026-27 SB-1 funds through Road Maintenance and Rehabilitation Account revenues: Project Title: Street Sweeping - Citywide Project Description: Mechanical sweeping of residential and arterial/collector streets (excluding Western Ave. Project Title: Palos Verdes Drive South (PVDS) Landslide Repair Program (Project 8302) Project Description: Repair PVDS and other roadway surfaces in the Greater Portuguese Bend Landslide Complex, replace traffic signs and pavement markings as throughout the Greater Portuguese Bend A-2 Project Title: Roadway Maintenance Program Palos Verdes Drive South and West (project 8855) Project Description: This project is a part of the Arterial Roadways Maintenance Program and intends to rehabilitate Palos Verdes Drive South and Palos Verdes Drive West within City limits (excluding the landslide area). The project consists of resurfacing existing or replacing damaged asphalt, and replacing damaged curbs, gutters, sidewalks, pavement markings, signs, and Project Title: Roadway Maintenance Program Palos Verdes Drive East (project 8858) Project Description: This project is a part of the Arterial Roadways Maintenance Program and intends to rehabilitate Palos Verdes Drive East from Palos Verdes Drive South to the City limit. The project consists of resurfacing existing or replacing damaged asphalt, and replacing damaged curbs, gutters, sidewalks, pavement markings, signs, improving drainage (if needed), and adding traffic calming A-3 PASSED, APPROVED AND ADOPTED on this 16th day of June 2026. _____________________ Paul Seo, Mayor Attest: __________________________ Teresa Takaoka, City Clerk State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the foregoing Resolution No. 2026-__ was duly adopted by the City Council of the City of Rancho Palos Verdes at a regular meeting held on the 16th day of June, 2026. Teresa Takaoka, City Clerk A-4 B-1 IPRO POSED RA TIES FOR. FY 2 023-20.24 SCH EDU LE SWE EP:l1NG TASK Descripti on of Servi ce Pro vid ed Cost of Ser.ik e Annua l Cost NO . 1. Swese p Resi de ntial Streets twi ce .pe r $ 26.167.66 /m o. $31 4 ,012.16 lvr m ont h {24/y ea r) 2. Sweep Non-Resi dentia l streets twice S 5097'60 /m o. S 61,171.20 /yr pern10nt h (24/vear) 3. Sw ee p Western Ave.. w eek ly [52/yea rl c 4 7D.SS ~ /w ee fd\'-$24,468.60 lvr 4 . Swee p Park ing Lots ,and Scen ic $ 679 .6l3 /m o. S, 81 56 .. 16 /vr Turnouts twi ce per month (24/year) -s ~ff iotal: -S 40 7 ,80:8..12 /yr .ADIDfflONAL SWEEPING TASt: Des.c ription of S,ervi ce Provided Cost of Servic e rm_ 5. Add it iona l/New Lo cati on s~vee:p pe r cu r b m ire $ 4•8.DlJ p er cu rb mil e 6 . Em a Sluee p ing I re.sid:ent ia l, non-resid ential , parki ng l ots and !.Oenic t umou ts }-Emenge nq• (two-hour S 9 5.01) /hr. 1re~ponse tim ·el ]_ Ex.tra Swee p in.g I residential , non-resid'e.n i al , par1ci ng l ots and S1Ceini ctumo uts.l -Non -Emergen~• •lnext S 180.0ll /hr. b1:1siness davl1 8. Altern ative S\veep:ing ·o r airea.s of heavy se d'im ent S 8 2.DD p er cum mile per curn m il e TASK NO .. 9. TASK NO. 10. .BUS STOP AINID BUS SHELTER CLEAN I NG Descriptio11 of S-e.rv i ce Provid ed B Uili Stop/sti:e.lter Clean ing-w ee kti\,• {52/y ea r]i Descrip tio n of Servi ce Provid ed Bu'S St o p/Sh ·elt!er Pow,e:r W acS<ht!lg - one. additional tim.e per month Cost of Servic e S 2232.IJO /m o_ Cost of Se:rvi ce S 8.81lUm -----~/m o. Annual Co.st $ 2 6,7,S [Hlll' Ami ual Co:s:t Rates fo r pe riods 2024 -2025, 2025 -2026 will be adj usted by th e prior year CPI , arc to Marnh period with a CPI cap o f :5% 01 203.0006/898720 .2 C-2 lvr /vr -$ 750,000$ -$ 2,250,000$ -$ -$ 750,000$ -$ 2,500,000$ -$ 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 annual operating / maintenance cost TBD ESTIMATED SCHEDULE Construction annually from Fiscal Year 2026-27 through 2030-31 Project Location Map Background and Justification 2,483,000$ 2,655,000$ 2,250,000$ 2,655,000$ 3,000,000$ 3,250,000$ -$ -$ -$ -$ -$ -$ 215 (Proposition C) 220 (Measure R) 330 (CIP Fund) 1,150,000$ -$ 1,530,000$ Ongoing 1,365,000$ 885,000$ -$ -$ -$ 285,000$ 840,000$ 350,000$ 1,830,000$ 204 (Gas Tax - SB1) FUNDING FY26/27 FY27/28 FY28/29 FY29/30 FY30/31 Future Fiscal Years FY25-26 Est. thru 4/27/2026 $ - $ - $ - $ - $ - Engineering 825,000$ 983,000$ 2,483,000$ 2,655,000$ 2,250,000$ 2,655,000$ 3,000,000$ 3,250,000$ Ongoing $ 110,000 $ 130,000 $ 145,000 $ - $ - $ - $ - $ - Environmental $ - $ - $ - $ - $ - OngoingConstruction $ 2,305,000 $ 1,955,000 $ 2,305,000 $ 2,605,000 $ 2,825,000 Project Contingency $ 220,000 $ 185,000 $ 220,000 $ 250,000 $ 270,000 $ 155,000 Inspection $ 130,000 Management FY30/31 FY25-26 Est. thru Landslide Improvement Projects 8302 Palos Verdes Drive South Landslide Repair Program Overall Planning $ - $ - $ - $ - $ - 4/27/2026 Insert Descriptive Photo PROJECT DESCRIPTION This project is intended to repair Palos Verdes Drive South and other roadways in the 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 8300 Series FY26/27 FY27/28 FY28/29 FY29/30 C-1 -$ -$ -$ Insert Descriptive Photo PROJECT DESCRIPTION As part of the Arterial Roadways Maintenance Program, this project is intended to rehabilitate Palos Verdes Drive South and Palos Verdes Drive West within city limits (excluding the landslide area), 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 8800 Series Right-of-Way Improvements Projects 8855 Roadway Maintenance Program - Palos Verdes Drive South and West Overall Planning $ - $ - $ - $ - $ - -$ FY26/27 FY27/28 FY28/29 FY29/30 FY30/31 Est.Thru 25-26 as of 4/27/2026 Environmental $ - $ - $ - $ - $ - -$ $ - 410,000$ Management $ 120,000 $ 205,000 $ - $ - $ - Engineering $ 410,000 $ - $ - $ - 325,000$ Inspection $ 240,000 $ 410,000 $ - $ - $ - 650,000$ Construction $ 2,392,000 $ 4,100,000 $ - $ - $ - 6,492,000$ Project Contingency $ 710,000 $ 1,230,000 $ - $ - FUNDING 202 (Gas Tax - HUTA) Est.Thru 25-26 as of 4/27/2026 -$ 1,355,000$ -$ -$ -$ FY28/29 FY29/30FY26/27 FY27/28 Future Fiscal Years -$ -$ FY30/31 229,385$ 3,872,000$ 5,945,000$ -$ -$ -$ 10,046,385$ $ - 1,940,000$ -$ -$ -$ -$ 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 South has an average Pavement Condtion Index (PCI) of 82 and Palos Verdes Drive West has an average 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 is a basis for determining any needed treatment. The 2025 roadway condition assessment determined that treating this section of roadway will reduce the overall life cycle cost and improve its condition. Estimated annual operating / maintenance cost TBD ESTIMATED SCHEDULE Engineering in Fiscal Years 2024-25 through 2026-27. Construction in Fiscal Year 2026-27: Palos Verdes Drive West (PVDW) & Palos Verdes Drive South - from PVDW to Terranea Way Contingent on identifying funding sources: Construction in Fiscal Year 2027-28: Palos Verdes Drive South - from Palos Verdes Drive East to City Limit and from Schooner Drive to Palos Verdes Drive East Project Location Map Background and Justification 229,385$ 3,872,000$ 5,945,000$ -$ -$ -$ 331 (Federal Grants)120,000$ 1,332,000$ -$ -$ -$ -$ -$ -$ 204 (Gas Tax - SB1)91,350$ -$ 330 (CIP Fund) TBD (Unfunded)5,945,000$ -$ -$ -$ -$ -$ -$ 18,035$ 785,000$ 400,000$ -$ -$ D-1 143,408$ -$ -$ -$ -$ -$ -$ 330 (CIP Fund) Insert Descriptive Photo PROJECT DESCRIPTION As part of the Arterial Roadways Maintenance Program, this project is intended to rehabilitate 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) - Traffic calming measures PROJECT COST ESTIMATES 8800 Series Right-of-Way Improvements Projects 8858 Roadway Maintenance Program - Palos Verdes Drive East Overall Planning $ - $ - $ - $ - $ - -$ FY26/27 FY27/28 FY28/29 FY29/30 FY30/31 Est.Thru 25-26 as of 4/27/2026 Environmental $ - $ - $ - $ - $ - -$ $ - 400,000$ Management $ 200,000 $ - $ 100,000 $ - $ - Engineering $ 200,000 $ - $ 200,000 $ - 300,000$ Inspection $ 400,000 $ - $ 200,000 $ - $ - 600,000$ Construction $ 4,000,000 $ - $ 2,000,000 $ - $ - 6,000,000$ Project Contingency $ 800,000 $ - $ 400,000 $ - FUNDING 215 (Proposition C) Est.Thru 25-26 as of 4/27/2026 -$ 140,000$ -$ -$ FY28/29 FY29/30 204 (Gas Tax - SB1)-$ 1,710,000$ -$ FY26/27 FY27/28 342,873$ 5,600,000$ -$ 2,900,000$ -$ -$ 8,842,873$ $ - 1,200,000$ 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 is a basis for determining any needed treatment. The 2025 roadway condition assessment determined that treating this section of roadway will reduce the overall life cycle cost and improve its condition. Estimated annual operating / maintenance cost TBD ESTIMATED SCHEDULE Engineering and Construction in Fiscal Years 2026-27: Palos Verdes Drive South to Marion Dr Engineering and Construction in Fiscal Years 2028-29: Marion Dr to City Limits Project Location Map Background and Justification -$ -$ 342,873$ 5,600,000$ -$ 2,900,000$ -$ -$ 2,900,000$ 220 (Measure R)199,465$ -$ -$ -$ -$ -$ TBD (Unfunded) 221 (Measure M) 202 (Gas Tax - HUTA)-$ -$ -$ 300,000$ -$ -$ -$ 300,000$ 3,150,000$ -$ -$ Future Fiscal Years -$ -$ FY30/31 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ E-1