REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 05, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Transportation
SUBJECT
Title
Agreement with the State of California Department of Transportation to Participate in the Regional Surface Transportation Program Federal Exchange and State Match Program
End
RECOMMENDATION(S)
Recommendation
Approve Agreement [State agreement No. X26-5954(215)] with the State of California Department of Transportation, to exchange the remaining $1,094,369 of San Bernardino County’s 2025-26 apportionment of Federal Regional Surface Transportation Program funds for non-federal State Highway Account funds, and for the State of California Department of Transportation to pay San Bernardino County $100,000 from the unobligated State Match Program funds for 2025-26, for a total amount of $1,194,369.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
Pursue County Goals and Objectives by Working with Other Agencies and Stakeholders.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Under the terms of State agreement No. X26-5954(215) (Agreement), the State of California Department of Transportation (Caltrans) agrees to pay San Bernardino County (County) a total amount of $1,194,369. Of this amount, $1,094,369 will be claimed under the Federal Apportionment Exchange Program, and $100,000 will be claimed under the State Match Program. This revenue is included in the Department of Public Works (Department) 2025-26 Road Operations budget (6650002000).
BACKGROUND INFORMATION
Effective September 29, 1992, Senate Bill 1435 (Chapter 1177 of the 1992 Statutes) amended section 182.6 of the Streets and Highways Code to redefine the Optional Federal Exchange program under the Intermodal Surface Transportation Efficiency Act.
On an annual basis, the County may select to enter into an agreement with Caltrans to exchange the County’s annual apportionment of Regional Surface Transportation Program (RSTP) funds on a dollar-for-dollar basis for non-federal State Highway Account funds. The County has been exchanging funds with Caltrans annually through this program since 1996.
On April 29, 2025 (Item No. 56), the Board of Supervisors approved for the County to exchange funds with Caltrans. The Department utilizes the funds for maintenance work on County maintained roads.
This Agreement authorizes the County to participate in the RSTP Federal Exchange and State Match program for 2025-26, which allows the exchange of $1,094,369 of Federal RSTP funds for non-federal State Highway Account funds and claims $100,000 in 2025-26 State Match Program funds.
This exchange, as authorized by Streets and Highways Code Section 182.6, benefits the County by removing federal restrictions on the monies, thereby allowing greater flexibility in how these funds can be spent. This exchange also provides the County with funds immediately, rather than on a reimbursement basis.
The Agreement also allows the County to claim $100,000 in 2025-26 State Match Program funds from State Highway Account funds, as authorized by Streets and Highways Code Section 182.9. While the State Match funds must first be used to match the local share of federal transportation projects, any excess funds may be used for any transportation purpose.
This item meets the County and the Chief Executive Officer’s goals and objectives by working with the State in exchanging funds for County’s immediate use on transportation related projects and maintenance work on County maintained roads.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on April 2, 2026; and County Finance and Administration (Kathleen Gonzalez, Administrative Analyst, 387-5412) on April 15, 2026.