5/4/2023
2023 PAVEMENT REPORT
Subject
2023 Pavement Report and future program funding options.
Discussion
The City of Cupertino’s street network is over 138 miles in length and covers approximately 26 million square feet (eight percent of the total area of the City.) The street network is one of the highest valued assets maintained by the City.
With proper maintenance, an asphalt street will typically last 20 years without the need of a total reconstruction, depending on variables such as traffic load. It is widely accepted that maintaining streets in good condition is cheaper and more efficient than reconstructing streets. For the past several years, the City has established a performance measure to maintain the average network Pavement Condition Index (PCI) at 82 or higher, which is considered “very good” per Attached 1 – Ranges of PCI Values.
Most street networks, including the Cupertino street network, degrade approximately two PCI points annually, due to weather and wear and tear from vehicles. Appropriate maintenance to a street network can overcome the degradation and successfully maintain or increase the condition of streets.
The table below shows the Cupertino Street Network PCI values for the years 2020‐2022, which includes the three‐year Metropolitan Transportation Commission moving average.
2020 2021 2022
Annual PCI 84 84 82
3‐year moving
average PCI
83 85 83
The Fiscal Year (FY) 2022‐23 budget authorized $3.1 million for maintenance of streets and park pathways. Staff anticipates completing two projects by end of calendar year 2023.
The 2023 Pavement Maintenance Phase 1 project, which will occur later this year due to the initial advertisement of bids being rejected because of the bid amounts received significantly exceeding the project budget, will include rehabilitation of various residential roads and park pathways. The Phase 2 project is currently out to bid and includes crack seal, fog seal and slurry seal of various residential streets. Upon completion of these two projects, PCI is expected to be maintained at 82, with natural deterioration being offset by applied maintenance.
Future Budget Options
The City receives several sources of non‐discretionary revenues required to be used for street and road purposes. These include Highway User Tax Account (HUTA) and Vehicle Registration Fees (VRF), which are distributed by Valley Transportation Authority (VTA,) and Road Maintenance and Rehabilitation Act (RMRA) (RMRA is also known as Senate Bill (SB) 1). In addition, General Fund revenues have been used to augment the street maintenance program in years past. Due to the economic uncertainty resulting from the pending California Department of Tax and Fee Administration (CDTFA) audit, the City will be exploring how various funding options will impact future PCI and will modify program performance measures and expenditures from the General Fund as appropriate.
The City uses an application called StreetSaver, which tracks PCI and provides the ability to run various budget scenarios. Based on a series of assumptions, StreetSaver allocates available funds across the street network, recommends improvements, and forecasts future PCI if recommendations are implemented. When RMRA was approved by California voters in 2017, it was presented as a means of funding deferred maintenance on State streets and roads. In addition, VRF revenues are required to be expended on road maintenance. Therefore, staff recommends these two revenue sources continue to fund pavement maintenance. For the purposes of this report, four funding scenarios were evaluated: 1) Maintain PCI at 82 (approximately $7.386 million/year) (HUTA, VRF, RMRA, and General Fund allocations); 2) Allocate all non‐discretionary street and road revenues to Pavement Maintenance (approximately $3.56 million/year) (VRF, RMRA, and HUTA); 3) Fund per FY 23‐24 draft budget request (approximately $2.735 million/year) (VRF, RMRA, and a portion of HUTA); and 4) Allocate VRF and RMRA revenues only (approximately $1.8 million/year) to Pavement Maintenance leaving HUTA funds to be used for “other streets and roads purposes” such as concrete maintenance. The table below depicts anticipated total expenditures, deferred maintenance, and projected PCI for a 10‐year period under each scenario.
Funding
Scenario
Total 10 Year
Expenditures
Deferred
Maintenance
(2032)
PCI Score PCI Category
1) PCI 82 $73,856,070 0 81 Very Good
2) 3.56M/YR $35,600,000 $15,440,936 78 Good
3) 2.735M/YR $27,350,000 $23,108,020 76 Good
4) 1.8M/YR $18,000,000 $33,103,420 72 Good
The charts below show annual pavement maintenance program costs and resulting deferred maintenance costs under each scenario over a 10‐year period.
Chart 1 – Maintain PCI at 82
Chart 2 – 3.5
6 Million Annual Expenditure
Chart 3 – 2.735 Million Annual Expenditure
70 71
72 73
74 75
76 77
78 79
80 81
82 $0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Maintain PCI at 82
Cost Deferred Maintenance PCI
76 77
78 79
80 81
82 83
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Annual Budget = 3.56 M
Cost Deferred Maintenance PCI
Chart 4 – 1.8 Million Annual Expenditure
Based on these evaluations, and considering recent budget uncertainties, staff is recommending that ongoing pavement maintenance be funded as indicated in Scenario 3, which utilizes VRF, RMRA and a portion of HUTA revenues to fund these projects and does not utilize General Funds directly for pavement maintenance. Further Scenario 3 maintains the City’s PCI in good condition, and offsets deferred maintenance against General Fund expenditures. The City is also allocated approximately 1.3M per year from Measure B revenues. Because the City’s PCI is greater than 70, our Measure B revenues are allowed to be used for Congestion Management purposes, such as construction of 66 68
70 72
74 76
78 80
82 84
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Annual Budget = 1.8 M
Cost Deferred Maintenance PCI
bike/ped trails. Therefore, Measure B revenues were not included in the various funding scenarios, but it should be noted that these revenues can be used to address deferred maintenance if desired.
As noted above, decreasing pavement maintenance expenditures will result in increased deferred maintenance. However, all scenarios will maintain the City’s PCI in good
condition. Information presented in this report is based upon historic revenues and current project costs. Gas Tax revenues may increase or decrease overtime. Future revenue projections were not available at the time of this report.
Attachments:
1 – Ranges of PCI Values
Attachment A
Pavement Condition Value Street Condition
80-100 (Very Good–Excellent) New pavement with few signs of distress.
70-79 (Good) Pavement showing only low levels of
distress.
60-69 (Fair) Pavement that may require a
combination of rehabilitation and
preventive maintenance.
50-59 (At Risk) Deteriorated pavement requiring
immediate attention.
25-49 (Poor) Pavement showing extensive distress and
requiring major rehabilitation or
reconstruction.
0-24 (Failed) Extremely rough pavement that needs
complete reconstruction.
Pavement Condition Index (PCI)