Agenda Item Wording:
title
Adopt resolution and designate 2026/2027 SB1 Road Maintenance Funding: Adopt Resolution No. 2026-43 to designate Fiscal Year 2026/27 Road Maintenance and Rehabilitation Account funding of $4,100,000 from the State of California Road Repair and Accountability Act of 2017 to the road projects as outlined within this report. (Resolution required)
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Agenda Date: 06/15/2026
Prepared by:
Dolores Verduzco, Financial Analyst, dolores.verduzco@visalia.gov, (559) 713-4540
Jonathan Frausto, Associate Engineer, jonathan.frausto@visalia.gov, (559) 713-4369
Chris Crawford, City Engineer, chris.crawford@visalia.gov, (559) 713-4331
Jason Huckleberry, Engineering & Building Director, jason.huckleberry@visalia.gov, (559) 713-4495
Department Recommendation:
Staff recommends Council adopt Resolution No. 2026-43 to designate Fiscal Year 2025/26 Road Maintenance and Rehabilitation Account (RMRA) funding of $4,100,000 from the State of California Road Repair and Accountability Act of 2017 (Senate Bill 1) to the road projects as outlined within this report and appropriate SB1 RMRA funds as specified in the report.
Summary:
The Local Streets and Roads Funding Program requires a resolution identifying the project(s) that will be funded with the upcoming fiscal year estimated allotment of SB1 RMRA funds. In order to receive funding for the 2026/27 fiscal year, Council must adopt by resolution a list of projects intended to utilize the fiscal year 2026/27 SB1 RMRA funding and submit to the California Transportation (CTC) by July 1, 2026. Staff recommends the estimated fiscal year 2026/27 SB1 RMRA allotment of $4,100,000 be utilized towards the projects listed below.
1. Riggin Ave Road Rehabilitation from Demaree to Mooney
2. Center & Acequia Street Rehabilitation
Background Discussion:
In April 2017, the Governor signed Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017 to address basic road maintenance, rehabilitation, and critical safety needs in the state. This bill established a new funding source for road repairs through revenue collected from per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel, and vehicle registration fees. The Act provides inflationary adjustments to tax rates in future years.
SB1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, cities and counties receiving the funding will be required to provide annual project information to the California Transportation Commission (CTC). This includes action by City Council at a regular public meeting to adopt a list of projects proposed to be funded with RMRA funds for each fiscal year. The project list must be submitted to the CTC by July 1st to receive and not delay the apportionment of RMRA funds for the upcoming fiscal year. The report for the anticipated use of funding shall include a description of the project including location, estimated project schedule and the estimated useful life of the project.
In addition, for each fiscal year in which the City spends RMRA funds, the City must submit a report to the CTC that details the RMRA funds expended to include a description and location of each completed project and/or in-progress project, the amount of funds expended on the project and the completion date. The CTC posts reported project information on the Commission’s website and through other reporting mechanisms that are accessible by the public. Staff recommends Council designate the fiscal year 2026/27 SB1 RMRA funding to the road rehabilitation projects listed below.
Project 1) Riggin Ave Road Rehabilitation from Demaree St to Mooney Blvd
Project Description/Scope:
The purpose of this project is to rehabilitate the pavement surface on Riggin Avenue from Demaree Street to Mooney Boulevard. The methods of pavement rehabilitation may consist of overlays, grind and overlays, dig outs, and street reconstruction. In addition to rehabilitation work, the project will include limited repairs to curbs, gutters, sidewalks, drain inlets, and ramps. Impacted ramps will be upgraded to Public Rights-of-Way Access Guidelines (PROWAG) and existing manholes and valve boxes will be adjusted to grade. The project will also include traffic signal modifications at intersections throughout the corridor.
Project Budget:
Riggin Avenue from Demaree to Mooney Boulevard currently has a total design and construction estimate of $3,332,300. The current project budget is $1,600,000 from SB1 RMRA funds previously transferred from the Whitendale Road Rehabilitation from Mooney Blvd to Court St project. Engineering staff, in coordination with the Public Works Department, evaluated currently funded road rehabilitation projects using the pavement management plan and other established criteria including traffic volumes, and maintenance history. The Riggin Ave Road Rehab project demonstrated a greater immediate need and overall benefit to the roadway network than the Whitendale Road Rehabilitation Project.
While this report does not specifically address the detailed design and construction cost breakdowns, understanding the overall project cost provides context for the current fiscal year RMRA allocations. The table below summarizes the budget to date.
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Table 1: Project Budget |
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Project Funding Source |
|
|
Road Maintenance and Rehabilitation Account (RMRA) previously transferred from CP0760 Whitendale Road Rehab |
$1,600,000 |
|
|
|
|
Total Project Funding |
$1,600,000 |
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Less: Total Project Cost Estimate |
$3,332,300 |
|
Total Project Shortfall |
($1,732,300) |
While the project is fully funded for design, to meet current construction estimates, a budget shortfall of $1,732,300 is expected. Staff is recommending funds be allocated to this project from FY 2026/27 SB1 RMRA allotment to fund anticipated construction costs.
Project Location:
Riggin Avenue from Demaree Street and Mooney Boulevard
Estimated Project Schedule:
Riggin Demaree to Mooney has initiated the design phase (pre-construction). An estimated timeline has been provided in Table 2 below.
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Table 2: Project Schedule |
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Pre-Construction (Design, ROW, Environmental, Permitting) |
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|
Start: |
01/2026 |
|
|
Complete: |
05/2027 |
|
Construction |
|
|
Start |
07/2027 |
|
|
Complete |
11/2027 |
Estimated Useful Life: 15 to 20 Years
Project 2) Center & Acequia Street Rehabilitation
Project Description/Scope:
The purpose of this project is to rehabilitate the pavement surface on Center and Acequia Avenue from Willis to Santa Fe. Additional side streets are included such as Floral, Encina, Church, and Bridge Street. The methods of pavement rehabilitation may consist of overlays, grind and overlays, dig outs, and street reconstruction. In addition to rehabilitation work, the project will include limited repairs to curbs, gutters, sidewalks, drain inlets, and ramps. Impacted ramps will be upgraded to Public Rights-of-Way Access Guidelines (PROWAG) and existing manholes and valve boxes will be adjusted to grade. The project will also include traffic signal modifications at intersections throughout the corridors.
Project Budget:
Center and Acequia currently has a total design and construction estimate of approximately $7,854,300. While this report does not specifically address the detailed design and construction cost breakdowns, understanding the overall project cost provides context for the previous and current fiscal year RMRA allocations. Information regarding a total budget breakdown can be found in the staff report for the design award (25-0475), approved by City Council on December 2, 2025. The table below summarizes the allotments and budget to date.
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Table 3: Project Budget |
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Project Funding Source |
|
|
FY 21/22 Road Maintenance and Rehabilitation Account (RMRA) |
$2,470,000 |
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FY 22/23 Road Maintenance and Rehabilitation Account (RMRA) |
$ 613,000 |
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FY 23/24 Road Maintenance and Rehabilitation Account (RMRA) |
$1,100,000 |
|
|
|
|
Total Project Funding |
$4,183,000 |
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Less: Total Project Cost Estimate |
$7,854,300 |
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Total Project Shortfall |
($3,671,300 |
While the project is fully funded for design, to meet current construction estimates, a budget shortfall of $3,671,300 is expected. Staff is recommending additional funds be allocated to this project from FY 2026/27 SB1 RMRA allotment to fund anticipated construction costs increases and a change in the rehabilitation methodology.
Project Location:
The project scope as approved in FY 2021/22 was originally intended to include only Acequia and Center Street from Willis to Santa Fe. Following staff’s review of pavement conditions in the project vicinity, additional side streets were identified to be included as noted in the FY 2023/24 staff report and detailed in the table below.
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Table 4: Project Limits |
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Street Segment |
From |
To |
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Center Avenue (FY21/22) |
Willis Street |
Santa Fe Street |
|
Acequia Avenue (FY21/22) |
Willis Street |
Santa Fe Street |
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Floral Street (FY23/24) |
Acequia Avenue |
Center Avenue |
|
Encina Street (FY23/24) |
Main Street |
Center Avenue |
|
Church Street (FY23/24) |
Acequia Avenue |
Center Avenue |
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Bridge Street (FY23/24) |
Mineral King Avenue |
Center Avenue |
There has been no significant change to the project locations as proposed in the previous reports, however staff is analyzing an additional portion of roadway on Bridge Street from Center Avenue to Oak Avenue.
Estimated Project Schedule:
Center & Acequia has initiated the design phase (pre-construction). An estimate timeline has been provided in Table 5 below.
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Table 5: Project Schedule |
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Pre-Construction (Design, ROW, Environmental, Permitting) |
|
|
Start: |
In Progress |
|
|
Complete: |
03/2027 |
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Construction |
|
|
Start |
05/2027 |
|
|
Complete |
10/2027 |
Estimated Useful Life: 15 to 20 Years
Fiscal Impact including annual maintenance and operating costs:
SB1 RMRA funding in fiscal year 2026/27 of approximately $4,100,000 is projected to be distributed to the City of Visalia based on the State Department of Finance projections of RMRA revenues as of May 2026 when projections were last published.
The appropriation of funds from the SB1 RMRA Fund to the Riggin Avenue and Center & Acequia rehabilitation projects will occur as part of the approval of the 2-Year Capital Improvement Program. If additional funds are needed for these roadway projects, staff will return to Council at the time of award of the construction contract to request additional funding.
Table 6 summarizes the estimated FY 2026/27 beginning balance of SB1 RMRA funds (Fund 113), the anticipated FY 2026/27 SB1 RMRA allotment, and the remaining balance following the allocations to the projects identified in this report. The estimated FY 2026/27 beginning balance of $2,246,700 consists of project savings from prior completed projects and interest earnings.
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Table 6: SB1 RMRA Fund 113 Balance Summary |
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Fund Summary |
|
|
SB1 Fund 113 FY 2026/27 Estimated Beginning Balance |
$2,246,700 |
|
Estimated FY 2026/27 SB1 RMRA Allotment |
$4,100,000 |
|
Total Fund Balance |
$6,346,700 |
|
|
|
|
Fund Allocation FY 2026/27 |
|
|
Riggin Avenue Road Rehabilitation from Demaree to Mooney |
($1,732,300) |
|
Center & Acequia Street Rehabilitation |
($3,671,300) |
|
|
|
|
Remaining Fund Balance after Allocation |
$943,000 |
|
|
|
Any funds remaining in the SB1 RMRA Fund will be available for future road rehabilitation projects.
Prior Council Action:
June 16, 2025 Adopted Resolution No. 2025-41 to designate 2025/26 SB1 RMRA funds to the Tulare Ave Road Rehabilitation Projects from Roeben to Cotta.
June 17, 2024 Adopted Resolution No. 2024-30 to designate 2024/25 SB1 RMRA funds to the Whitendale Ave Road Rehabilitation from Mooney Blvd to Court St project.
June 5, 2023 Adopted Resolution No. 2023-20 to designate 2023/24 SB1 RMRA funds to 1) Tulare Ave. Road Rehab from Demaree to Cotta, 2) Plaza Drive Intersection Improvements, and 3) Center & Acequia Street Rehabilitation.
June 20, 2022 Adopted Resolution No. 2022-41 to designate 2022/23 SB1 RMRA funds to 1) Downtown Pavement Rehabilitation, 2) Caldwell Ave. Improvements from Akers to Shady, and 3) Center & Acequia Street Rehabilitation.
June 21, 2021 Adopted Resolution 2021-34 to designate 2021/22 SB1 RMRA funds to the FY 2021-22 SB1 Street Rehabilitation - Center & Acequia Project.
April 20, 2020 Adopted Resolution 2020-19 to designate 2020/21 SB1 RMRA funds to the Street Rehabilitation - Akers & Shady project and to the Downtown Pavement Rehabilitation Project.
April 15, 2019 Adopted Resolution 2019-21 to designate 2019/20 SB1 RMRA funds to the Caldwell Avenue Improvements from Akers to Shady Project.
April 16, 2018 Adopted Resolution 2018-25 to designate 2018/19 SB1 RMRA funds to various street segments.
November 20, 2017 Affirmed by Resolution 2017-78 the appropriation of 2017/18 SB1 RMRA funding to a Cape Seal Project.
Alternatives: Designate funds to a different road rehabilitation project(s).
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution No. 2026-43 to designate Fiscal Year 2026/27 SB1 RMRA funding of $4,100,000 to the road projects as outlined within this report.
Environmental Assessment Status: N/A.
CEQA Review: Environmental review will be completed prior to construction as required.
Deadline for Action: 07/01/2026
Attachments:
1. Resolution 2026-43
2. Project Location Map
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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☐ Economic Vitality |
☐  Organizational Excellence |
☐ Fiscal Strength |
☒  Infrastructure & Growth |
☒  Quality of Life |