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HomeMy WebLinkAbout2007/05/01 Item 18 ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT 05/01/2007, Item~ RESOLUTION TRANSFERRING $4,504,665 FROM THE CURRENT PAVEMENT APPROPRIATION, $2.0 MILLION FROM THE A V AILABLE BALANCE IN THE NORTH BROADWAY BASIN RECONSTRUCTION PROJECT (STM354) AND $5.0 MILLION FROM THE AVAILABLE BALANCE IN THE 4TH AVENUE RECONSTRUCTION BETWEEN DAVIDSON & SR54 PROJECT (STL309), FOR A TOTAL OF $11,504,665, INTO THE PAVEMENT REHABILITATION PROGRAM - FUTURE ALLOCATIONS (STL238) FOR PAVEMENT MAINTENANCE IN FY 2007/2008, AND PRELIMINARILY APPROVING TRANSNET FUNDING OF APPROXIMATELY $6.0 MILLION AND ANTICIPATED PROPOSITION B FUNDING OF APPROXIMATELY $3.5 MILLION IN PAVEMENT REHABILITATION PROGRAM FUTURE ALLOCATIONS [STL238] FOR PAVEMENT MAINTENANCE IN FY 2008. CITY ENGINEER c;:r ~ INTERIM CITY MANAGER JI 4/5THS VOTE: YES ~ NO D BACKGROUND On April 5, 2007, the City Council held a workshop on Infrastructure Asset Management and adopted a resolution endorsing the continued implementation of a pavement management system. Tonight's recommended action allows the consolidation of available pavement funding into one capital improvement project in order to maximize the application of available funding and paving activities for the remainder of the calendar year. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that consolidation of funding into one capital improvement project is not a project as defined under Section 15378 18-1 05/01/07, Item~~ Page 2 of7 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Future implementation of the Pavement Management Program qualifies for a Class Icategorical exemption pursuant to Section 15301(c) (Existing Facilities) of the State CEQA Guidelines because the project is the rehabilitation of existing streets, sidewalks, gutters, etc. for the purpose of public safety. Thus, no further environmental reView is necessary. RECOMMENDATION That Council adopt the Resolution transferring $4,504,665 from the current pavement appropnatlOn, $2.0 million from the available balance in the North Broadway Basin Reconstruction Project (STM354) and $5.0 million from the available balance in the 4th Avenue Reconstruction Between Davidson & SR54 Project (STL309), for a total of $11,504,665, into the Pavement Rehabilitation Program - Future Allocations (STL238) for pavement maintenance in FY 2007/2008, and preliminarily approving Transnet funding of approximately $6.0 million and anticipated Proposition B funding of approximately $3.5 million for Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance in FY 2008. BOARDS/COMMISSION RECOMMENDATION: N/ A DISCUSSION The City of Chula Vista is responsible for an estimated 1,113 lane miles or 441 centerline miles with a current estimated replacement value of $659 million--constituting the City's most significant infrastructure investment. If placed in an unbroken straight line, this amount of pavement would stretch from Chula Vista to Vancouver, Washington. The City initiated and has maintained a pavement management system since 1986 in accordance with the California Streets and Highways Code, which requires California cities to implement a pavement management system as a condition to obtain funding from the State transportation improvement programs. Pavement assessment is recommended every three to five years. The most recent contract for pavement testing and management services was awarded by City Council to Nichols Engineering on January 10, 2006; the results of this work form the basis of recommended next steps. The consultant's work indicates that the current estimated citywide pavement rating is 79 on a scale of 100 with the range of scores falling between 13 and 100. The Case Against "Worst-First" and the Case for a Pavement Management Svstem The philosophy of pavement preventive maintenance - applying the right treatment on the right street at the right time - represents a dramatic change in philosophy, strategy and direction for most agencies and particularly for the public. Previously, the most common approach to project selection within a network was the "worst-first" strategy. In this case, the pavements that are selected for treatment are those that are closest to 18-2 05/01107, Item~ Page 3 of7 failure. Accordingly, the treatments that are applied are more expensive and more time- consuming to construct. The worst first strategy quickly depletes available funding focusing on streets that are already going to cost the most to reconstruct. In the meantime, streets in acceptable condition continue to deteriorate due to lack of attention, opportunities to expand the useful service life cost effectively are lost and the backlog continues to grow as these once acceptable streets quickly drop into the "major rehabilitation needed" category. The result is a quickly growing backlog that outpaces any progress made by sinking all available funding into the worst streets. Pavement preventive maintenance programs begin, either formally or informally, with the concept that cost-effective treatments can be applied earlier in a pavement's life. These treatments are thinner, are very cost-effective, are constructed relatively rapidly with minimal disruption to the motoring public, and reach or exceed their design lives because they are applied to pavements that are in generally good condition. Pavement management is the process of evaluating and tracking the conditions of streets, identifying when streets require maintenance/ rehabilitation, and choosing the appropriate maintenance/ rehabilitation method for those streets. Experts conduct an evaluation of the pavement surface, each street is then ranked based on a Pavement Condition Index (PCI), and finally an appropriate maintenance strategy is recommended based on this PCI. This process also includes budgeting for street maintenance funding and conducting inventories of street assets. An effective pavement management system provides a systematic and objective method for determining priorities and the optimal time for repair. Even though transportation/street maintenance is one of the few areas where regional and state monies are allocated (Transnet, Proposition 42, Proposition 1B), needs continue to exceed available funding. Most public agencies face financial constraints and must make choices about how to spend their limited transportation dollars. Even with dedicated pavement preventive maintenance funding, a choice must be made regarding how to maintain pavement. When funding constraints are present, preventive maintenance and worst first strategies are incompatible. Existing Conditions As of January 2006, the City had approximately 441 centerline miles of public streets and alleys, of which approximately 431 centerline miles are public streets that are open to traffic. The total City Street network by functional class and average PCI is provided in the table below. The average PCI for Chula Vista's 431 centerline miles of public paved streets is 79 as of 2006, which puts the average street in Good condition. If no rehabilitation were done over the next ten years, the average PCI for the entire network would be projected to drop below 60. Should the overall network fall below 70, it becomes almost impossible to catch up with the backlog. 18-3 05/01/07, Itemili- Page 4 on CHULA VISTA PAVEMENT NETWORK 10.1 Centerline Miles 46.5 74.4 309.9 440.9 Pavement Rehabilitation Scenarios In the past, the City sometimes used resident requests to assist in the formation of priorities for the construction of street improvements. Transitioning to a true pavement management approach would minimize the use of citizen request data instead relying on objective assessment and computerized analysis. True implementation of a pavement management system is often difficult for residents to understand because relatively new streets may be seen receiving treatment (the average person may not understand the difference between a seal, an overlay, etc.) whereas a street needing reconstruction may appear to be ignored. The reality is that the pavement management system drives the best use of dollars attempting to avoid having the pace of streets falling into the reconstruct category outpace available funding. The purpose of a pavement management system is to enable the City to use its pavement dollars in the most cost-effective manner so that the overall pavement condition is as good as possible. Therefore, it is generally more cost effective to do a balanced program of seals and overlays than to just do all the worst streets. If seals and overlays are applied at the right time, further deterioration can be avoided, thereby postponing or eliminating a more expensive type of repair. If a street requires reconstruction, timing is not as important, since further deterioration will not affect the type of treatment required. Also due to the high cost of reconstruction, many more streets can be rehabilitated using seals or overlays Applying the right treatment to the right street at the right time can extend the service life of that street from three to five years. Conversely, delaying pavement preservation for only one year can rob five to six years of pavement service life. Based on the current condition of the City's streets, the City's consultant has determined that the City is starting out with an estimated backlog of $43 million in streets that need maintenance and/or rehabilitation. It should be noted that the reconstruct estimates included in the backlog are for pavement surface only, funding estimates for other infrastructure complexities that challenge project initiation and completion (e.g., right-of-way, drainage, etc.) were not estimated with this project phase. 18-4 05/01107, Item 16 Page 5 of7 In considering how best to apply available funding, several scenarios have been run and analyzed. A sampling is described below. In considering the City's current situation it is also important to consider some of the changes coming about with the new requirements for the Transnet Extension. One of the major funding sources for the City's pavement/transportation projects to date has been Transnet (approximately $5 million to $6 million annually). The original Transnet was scheduled to end in FY 2008; an extension was approved by voters and begins in FY 2009. The Transnet extension imposes more strenuous restrictions on the use of funding, including a requirement that 70% of a city's funding allocation must go towards "capacity enhancing" activities-major street rehabilitations qualify as capacity enhancing. Only 30% of funds may be used for maintenance (including seals). This assumption has been built into the budget scenarios described below; however it may threaten the optimal implementation of a pavement management system. If this is the case, the Transnet extension provides an appeal process that staff recommends be undertaken if necessary to support the practical application of a pavement management system. Should the City's future ten-year investment in pavement consist only of available anticipated Transnet and Proposition 42 funding, total funding would be about $39,804,000 over ten years. At the end of that period, the citywide PCI is estimated to decrease from 79 to 64, with the backlog increasing to approximately $160 million-almost four times the current estimate. On the other hand, the ideal budget estimate results from answering the question, "What would be the funding requirement to eliminate the current estimated backlog and maintain or improve the overall PCI?" The analysis shows that an approximate investment of $19.2 million per year for ten years (actual total is $188.1 million) would eliminate the backlog by the end of the tenth year and improve the City's overall PCI from 79 to 811 Since the percentage of maintenance funds from Transnet will be limited to 30% beginning in July 2008 assuming an appeal is not approved, staff is recommending that the majority of the currently unrestricted Transnet funding go toward preventive maintenance in 2007. In order to maximize available funding within the context of the new Transnet requirements and to allow the City some time to consider expanded and/or new sources of revenue, a two-year pavement budget plan is recommended tonight. It assumes a budget of $11.5 million in FY 2007 and $9.5 million in FY 2008. It includes the transfer of funds from the North Broadway and North 4th Avenue Capital Improvement Program projects in order to let those projects receive equal consideration with all other City streets in the automated program. It also assumes that all available Transnet and Proposition 42 funds will be applied to the rehabilitation program in 2007. The anticipated Proposition IB allocation of $3.5 million is included in the FY 2008 figure. One of the advantages to this approach is that it potentially avoids $45 million in expenses in ten years by reducing the 1 It should be noted however that reconstruct estimates included in the backlog are for pavement surface only, funding estimates for other infrastructure complexities that challenge project initiation and completion (e.g., right- of-way, drainage, etc.) were not estimated with this project phase. 18-5 05/01/07, Item~ Page 6 of7 potential backlog to an estimated $115 million as compared to $160 million. This occurs because more streets on the edge of dropping into the rehabilitation category within the first two years are pulled back into the "less-cost-required" maintenance category. Although the $11.5 million available in the first year is significantly higher than what the City has typically been able to put toward pavement, it is significantly lower than the estimated $19.2 million a year required to maintain the current pcr; therefore, the pcr after two years' treatment is projected to decrease from 79 to 76. If the recommendation regarding the immediate next two years is approved, staff will proceed with finalizing a data run for a recommended five-year program that will be the basis of the execution of a paving contract to begin this calendar year. After advertisement, the recommended award of the contract will come back to the City Council with the total amount of award, anticipated impact on the city's overall pcr, etc. Staff will continue with developing further recommendations in the area of pavement and overall infrastructure given the policy discussion at the April 5th workshop. The City Council's discussion and specific direction will be integrated into a more specific pavement management recommendation for implementation with the 2010 fiscal year. Final recommendations and projected results will be brought to the City Council for consideration, discussion and direction. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that the decision concerns repairs, replacement, or maintenance of existing streets or similar facilities and, therefore, there is not a material financial effect of the decision on the property holdings of the City Council Members pursuant to California Code of Regulations sections 18704.2(b)(2) and 18705.2(b)(I). However, this action involves the transfer of monies from STM354, the North Broadway Basin Reconstruction Project, and STL309, the 4th Avenue Reconstruction Between Davidson & SR54 Project. Staff has reviewed the property holdings of the City Council Members with regard to STM354 and STL309 and has found a conflict exists, in that Council Member Rindone has property holdings within 500 feet of the boundaries of these properties. FISCAL IMPACT As noted above, current allocated funding is not sufficient to meet ongoing and worsening needs; therefore, without an increase in funding the City will continue to fall behind in this area of responsibility. Additional funding will require a greater allocation of general funds to infrastructure and/or new or enhanced revenue streams. Additional immediate fiscal impacts involve the transfer of already appropriated funding within the CIP budget in order to invest a significant amount of funding into pavement management before the new, more stringent Transnet extension requirements begin in FY 2009. 18-6 05/01107, Item~ Page 7 of? Specifically, a pavement management program of $11,504,665 million in FY 2007 and $9.5 million in FY 2008 is recommended. This would be accomplished by consolidating available balances from several general pavement capital improvement projects (total: $4,504,665), transferring $2.0 million from the available balance of the North Broadway Basin Reconstruction Project (STM354) and $5.0 million from the available balance of the 4th Avenue Reconstruction between Davidson & SR54 Project (STL309) into Pavement Rehabilitation Program - Future Allocations (STL238). J: IEngineerlA G END A ICAS2007105 -0 1-07\PavementT ransfer.doc 18-7 RESOLUTIOt'\ NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TRANSFERRING $4,504,665 FROM THE CURRENT PAVEMENT APPROPRIATION, $2.0 MILLION FROM THE A V AILABLE BALANCE IN THE NORTH BROADW A Y BASIN RECONSTRUCTION PROJECT [STM354] AND 55.0 MILLION FROM THE AVAILABLE BALANCE lN THE 4"1 AVENUE RECONSTRUCTION BETWEEN DA VlDSON & SR 54 PROJECT [STL309], FOR A TOTAL OF $1 LS04,665, INTO THE PAVEMENT REHABILITATION PROGRAM - FUTURE ALLOCATIONS [STL238] FOR PA VEMENT MAINTENANCE IN FY 2007/2008, AND PRELlMINARIL Y APPROVING TRANSNET FUNDING OF APPROXIMA TEL Y $(,0 MILLION AND ANTICIPATED PROPOSITION B FUNDfNG OF APPROXIMATELY $3.5 MILLION FOR PAVEMENT REHABILITATION PROGRAM- FUTURE ALLOCATIONS [STL238] FOR PAVEMENT MAINTENANCE IN FY 2008. WHEREAS, the California Streets and Highways Code requires California cities to implement a pavement management system as a condition to obtain funding from the State transportation improvement programs; and WHEREAS, the City of' Chula Vista initiated and has maintained a pavement management system since 1986 in accordance with the California Streets and Highways Code; and WHEREAS, the most recent contract for pavement testing and management services was awarded by the City Council to Nichols Engineering [Consultant] on January 10,2006; and WHEREAS, the Consultant conducted an expert evaluation of the pavement surface of all City streets, ranked each street based on a Pavement Condition Index [PC I] and recommended an appropriate maintenance strategy based on street PCls; and WHEREAS, the CUtTent estimated citywide PCI is 79 [on a scale of 0 to 100] with tile range of scores falling between 13 and 100; and WHEREAS, the Consultant estimates that approximately $19.2 million per year will be required for the next ten years to maintain the current PCI and address the City's estimated $43 million pavement backlog; and WH EREAS, approximately 54,504,665 rematns 111 the current year capital program pavement appropriation; and 18-8 WHEREAS, the North Broadway Basin Reconstruction [STM354] and 4th Avenue Reconstruction between Davidson & SR54 [STL309] projects were identified outside of a pavement management system; and WHEREAS, $2,000,000 was appropriated in FY 2006 and $4,300,000 in Transnet r'unding was projected for FY 2008 for the North Broadway Basin Reconstruction [STM354]; and WHEREAS, $2,000,000 was appropriated in FY 2006 and $3,000,000 in Transnet funding was appropriated in FY 2007 for the 4th Avenue Reconstruction between Davidson & SR54 [STL309]; and WHEREAS, staff recommends that all streets be included in the data analyzed by the pavement management sotlware and treated within the five-year program in which they appear; and WHEREAS, staff recommends that the maximum available funding be applied toward pavement maintenance in FY 2007 and FY 2008; and WHEREAS, the preliminary FY 2008 budget projection includes Transnet funding of approximately $6.0 million and anticipated Proposition B funding of approximately $3.5 million available for paving projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as fi)[lows: I. That it approves the transfer of $21,651 of the available balance from Pavement Rehabilitation [STL293] into Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance. 2. That it approves the transfer of $22,214 of the available balance from Local Street Pavement Rehabilitation [STL300] into Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance. 3. That it approves the transler of $1,387,400 of the available balance from Pavement Rehabilitation [STL31 OJ into Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance. 4. That it approves the transfer of $973,400 of the available balance from Pavement Rehabilitation 05/06 [STUI5] into Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance. 5. That it approves the transfer of $2,1 00,000 of the available balance from Pavement Rehabilitation 06-07 [STUI6] into Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance. 6. That it approves the transfer 01'$2.0 million of the available balance from the North Broadway Basin Reconstruction Project [STM354], and $5.0 million of the available balance from the 4th 18-9 Avenue Reconstruction between Davidson & SR54 Project [STLJ09], for a combined total of $11,504,665, into Pavement Rehabilitation Program - Future Allocations [STL238], for pavement maintenance. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it preliminarily approves including Transnet funding of approximately $6.0 million and anticipated Proposition B funding of approximately 53.5 million in Pavement Rehabilitation Program - Future Allocations [STL238] for pavement maintenance in FY 2008. Presented by Approved as to foml by '~ Ann Moore City Attomey /~ ~, IIc ~-- L' Scott Tulloch City Engineer II:'] -N( j INE1:I\\RES( )S",Rcsos21)()7\RES( ),I-.JN ALp<JvCI1Kl1llllgmllrullsli.:r.O-t I 807 .doc 18-10