SPECIAL TOWN COUNCIL MEETING
STAFF REPORT
1 SPECIAL AGENDA ITEM #4
MEETING DATE
PREPARED FOR
PREPARED BY
SUBJECT
RECOMMENDATION
Staff recommends that the Council discuss a bond measure for road repairs and provide direction to staff.
BACKGROUND
The Council and staff have received numerous comments and complaints regarding the state of road repair within the Town. Online and traditional media have carried several stories and cartoons in the last year highlighting that the Town is ranked lowest in Marin County on the Pavement Condition Index (PCI), a rating from 0 to 100 of the severity and extent of distresses observed on a pavement surface. The Council has received several presentations from staff and expert consultants regarding the current condition of roads within Fairfax, including on February 1, 2023, and March 1, 2023.
Road infrastructure (including pavement, drainage systems, curb and gutter, retaining walls, and underground utilities) has a limited expected lifespan and it grows exponentially more expensive to maintain and repair as it ages and degrades. Although road assets appear very hard and lasting, they are under constant strain from weather, vehicle wear, and changing requirements, thus they do not remain in good condition without on-going maintenance. Once deferred maintenance begins, costs to catch up escalate. The bulk of Fairfax road repairs have been made under emergency circumstances following road or retaining wall failures.
From 2011 to 2021, Fairfax did not have a separate Public Works Director, which limited the Town’s ability to complete repairs. Two Interim Public Works Directors served until late 2022, when the on-going Public Works Director, Loren Umbertis was hired by the Town Manager. Since then, Director Umbertis has successfully completed several large projects, including Scenic and Porteous repaving, retaining wall repairs at 145 Canyon, and one-time sidewalk improvements in town (Notices of Completion for these projects are in this meeting’s consent calendar). Also on this meeting’s agenda is a project charter to help the Town work with Marin County to apply for grants and repair Bolinas Road. Grant applications typically require matching funds of 10% to 25%, and bond proceeds would facilitate applying to larger grants than Fairfax could normally access.
In recent years, the Town built reserve funds above the very safe reserve policy of 25%. In the past two budgets, the Council approved drawing down reserve funds specifically for use in increasing road repairs.
The paving budgets were as follows: FY 20/21 $140,000, FY 21/22 $400,000, FY 22/23 $500,000, and FY 23/24 $1,000,000. Actual spending on paving has typically been less than budgeted in Fairfax due to lack of implementation staff.
Construction costs throughout California continue to escalate and the Fairfax road condition continues to decline. Unfortunately, the cost to complete the deferred maintenance and repairs needed outstrips January 10, 2024
Mayor and Town Council
Heather Abrams, Town Manager and Michael Vivrette, Finance Discuss and Consider Bond Measure for Road Repairs and Provide Direction to Staff
2 the Town’s current resources. Continuing pay-as-you-go repairs and maintenance will not be sufficient to maintain Fairfax’s current low PCI rating, and improving Fairfax’s PCI will require even more resources.
The Town’s current PCI is 55. If the Town were to target a PCI of 75, then the Town’s expert Pavement Engineering Inc. consultants estimate the town would need to spend $60 million over five years.
In 1999, the Council placed Measure K on the ballot to help fund road and infrastructure repairs of up to $6.83 million (see attachment). More than two-thirds of Fairfax voters approved, and bonds were issued in 2000, 2002, and 2006. The Town currently has a rating of AA+, which allows the Town to access favorable financing rates.
Tax rates for Measure K bonds have been going down for taxpayers. Measure K was estimated to have a max tax rate of $58 per $100,000 of assessed valuation (AV) and the current rate is $22.50 per $100,000 AV. The current median single family residential AV is $650,000 in Fairfax, which equates to an annual cost of $146.25.
DISCUSSION
Several commentors have mentioned that Larkspur used to have the lowest PCI rating in Marin; Larkspur now has the among the highest PCI rating in Marin, and the lowest place is held by Fairfax. Larkspur was able to make this dramatic upturn in its PCI ranking by increasing the general sales tax from which the Council allocated a portion of the revenue for the repair of its roads.
Next Steps:
- Council Direction: Discuss the possibility of a voter approved bond at this meeting. In order to facilitate the discussion, staff have invited Wing-See Fox of Urban Futures Inc., a known successful Municipal Advisor who can present initial financial considerations for such an effort.
Extending the existing property tax rate or increasing the property tax rate would provide needed additional funds to complete road projects and stabilize costs in the long term because planned maintenance is far less expensive than emergency repairs and full replacement after deferred maintenance.
- Voter Surveying/Polling: If directed at this meeting, staff will engage a surveying/polling firm to design and implement a poll of residents on bond options and collect real data on the priorities and willingness to support a tax measure. The estimated cost for surveying/polling is $25,000.
Surveying/polling would likely be completed in the Spring. - Project Planning: At the January 24, 2024, Council Meeting, Public Works staff and consultants plan to present the draft 5-year plan for paving. This plan can be viewed from the as-is fund position, and what-if bonds were approved by the voters. - Council Approval: By June or July the Council would need to approve placing a measure on the November 2024 ballot. If the Council decides not to act this year, the next probable opportunity is in 2026.
- Voter Campaign: A group of residents would be needed to run the campaign for the measure, as Town staff are only allowed to provide educational information (not campaign materials). - Voter Approval: If voters approve the measure, staff will bring financing documents and road projects back to the Council for review and approval.
- Project Implementation: Once financing is secured, design will begin, and project timelines will be brought before the Council.
ATTACHMENT
Measure K ballot Information