REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution to Adopt a List of Projects Funded by Senate Bill 1, The Road Repair and Accountability Act, for Fiscal Year 2026-27
Report
BACKGROUND
In April 2017, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was signed into law. SB 1 increased the per gallon fuel excise taxes, diesel fuel sales tax, and vehicle registration fees to address basic road maintenance and rehabilitation. SB 1 directs the State Controller to allocate 50 percent of the tax revenues to the State and 50 percent to cities and counties. The amount received by the City of Santa Clara and other eligible cities is determined by a formula.
Per SB 1, funding should be prioritized for basic road maintenance, rehabilitation, and critical safety projects. The Pavement Condition Index (PCI) is a numerical index between zero and 100 that is used to indicate the general condition of pavement, with zero considered as 'Failed' and 100 considered as 'Brand New.' A city may spend its portion of SB 1 funds on transportation priorities other than road maintenance and critical safety projects if the city's average PCI meets or exceeds 80. As of March 2026, the City of Santa Clara's current average PCI is 73.
In order to receive funding, the City must follow the Local Streets and Roads Funding Program Reporting Guidelines adopted by the California Transportation Commission. The guidelines require the City to submit a project list annually that identifies proposed projects (Project List).
This will be the tenth year the City will receive SB 1 funding and the City Council previously approved SB 1 Project Lists starting in FY 2017/18. Maintenance for the streets identified under the previous project lists has been completed, and the Project List for FY 2025/26 is projected to be completed in 2026. The streets listed within the Project List for FY 2026/27, considered in this report, are projected to be completed in 2027.
DISCUSSION
The City ...
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