Agenda Report
Fullerton City Council
MEETING DATE: april 18, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: STEPHEN BISE, CITY ENGINEER / ASSISTANT PUBLIC WORKS DIRECTOR PREPARED BY: david grantham, principal civil engineer
SUBJECT: FISCAL YEAR 2023-24 CAPITAL IMPROVEMENT PROGRAM Budget residential street rehabilitation projects
SUMMARY
Review staff recommendations for Fiscal Year (FY) 2023-24 residential street rehabilitation project locations and funding.
RECOMMENDATION
Approve staff recommendations for the FY 2023-24 residential street rehabilitation project locations.
CITY MANAGER REMARKS
The amount that is allocated in the 2023 – 2024 Budget is $12,775,000. If the City Council approves the additional $1,500,000 recommended by the City Manager as a General Fund transfer for residential streets, the total would be $14,275,000.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The FY 2023-24 Proposed Capital Improvement Project (CIP) Plan budget includes funding for the recommended projects.
DISCUSSION
The City programs funding for arterial and local (residential and industrial) streets rehabilitation every fiscal year. Rehabilitation methods can vary from slurry sealing to complete reconstruction depending on the condition of the street pavement and available funding. Recently, the majority of rehabilitation has involved grind and overlay, limited reconstruction, and very minimal slurry seal activities. This results from focus on poor condition streets and extending the available funding by implementing grind and overlay practices rather than reconstruction.
Staff takes several items into consideration when programming street rehabilitation, , including:
available Funding
funding Restrictions and Requirements
street Selection Guidelines (Approved by Infrastructure and Natural Resources Advisory Committee (INRAC).
Available Funding
Staff expects the street rehabilitation budget for FY 2023-24 to consist of:
Funding
Amount
Comments
RMRA/SB1
$3,500,000
100% of revenue allocated to streets
Gas Tax
$0
Funding allocated to PW-Maint and Traffic Division projects Measure M2
Local Fair Share
$2,450,000
$3,350,000 expected revenue. $850,000 allocated to Traffic Division operations and projects. $50,000 to PMP Community Development Block Grant (CDBG)
$325,000
100% of requested funds allocated to requested project
Infrastructure Fund
$1,000,000
Revenue of $2,500,000 split between infrastructure needs APRA
Revenue Replacement
$5,500,000
Remaining funds of $13.1 million previously allocated by Council TOTAL
$12,775,000
INRAC has recommended allocating (pending approval by City Council) $2,900,000 of RMRA / SB1 funding to arterial street rehabilitation. This leaves $9,875,000 for local (residential and industrial) street rehabilitation.
The FY 2023-24 Proposed Budget includes City Manager recommended $1,500,000 of General Fund (Fund 10) appropriation for street rehabilitation projects in FY 2023-24. , If City Council approves the $1.5 million transfer and appropriation of General Fund for residential streets at the June 2023 budget adoption, is approved, the available funding will total $14,275.000.
Funding Restrictions and Requirements
The majority of street funding shown above is restricted, allowing the City to only use funds for maintenance, operation and rehabilitation of facilities within the street right of way. The City must meet eligibility requirements to receive these funds.
Eligibility to receive RMRA / SB1, Gas Tax and Measure M2 funding includes a Maintenance of Effort (MOE) requirement. This involves the City expending a specific amount of unrestricted funds, typically General Funds, towards maintenance and rehabilitation of the City streets each fiscal year. The City cannot use other funding sources such as Sewer Enterprise, Park Dwelling, etc. for street purposes.
The Orange County Transportation Authority (OCTA) revises and updates the MOE for Measure M2 every three years based on City General Fund revenues. The MOE requirement for FY 2023-24 recently increased to $4,921,569. Staff intends to meet this requirement utilizing the combination of General Funds (allocated to PW-Maintenance), Infrastructure Fund and ARPA Revenue Replacement funds in combination with specific street rehabilitation projects discussed below.
Staff expects an increased allocation of General Funds and/or Infrastructure Funds required in future fiscal years to maintain our eligibility.
Street Selection Guidelines
INRAC and staff reviewed and formalized guidelines related to street rehabilitation in July 2021. These guidelines include:
Policy Guideline – Street Selection Criteria
All Streets
Streets only – no alley rehabilitation
Equitable distribution of work throughout the City
Combine with Utility Work – Water and/or Sewer
Street work may be completed as a separate project directly after utility work Maintenance History
Bicycle Lanes
Pavement Condition Index (PCI) Rating
Condition of pavement compared to adjacent streets
Traffic Volume and Number of Side Streets
Planned Development / Improvements
Recommended Projects
In accordance with the guidelines, residential street rehabilitation has generally followed the same streets as water and/or sewer main replacement projects over the past several years. However, due to increased water construction costs and significant delays in securing materials (pipes, valves, fittings, etc.), staff has extended schedules up to six months which can potentially push projects into the following fiscal year, especially the street rehabilitation portion of the project. Staff recommends a combination of utility and non-utility streets for FY 2023-24 rehabilitation in address the MOE requirements, The following lists the proposed residential street projects (See Attachment 2):
Non-Utility Work
Slurry Seal – various streets citywide, including previous utility projects Las Palmas Area
Costa Court Area
Utility Work (Water and/or Sewer Main Replacement)
Hermosa Area – water main replacement currently in progress Rancho Verona Area
Firethorne Area, including Rolling Hills Drive
Cannon-Sheppard Area
Sudene Avenue Area – Grant funded
Staff does not recommend the following streets for FY 2023-24 street funding due to street funding limitations and expected postponement of water main replacement projects (budget concerns due to increased construction costs):
Raymond Avenue cul-de-sacs – Industrial roads
Maplewood Area, Crown Area and Coronado Areas
Sunny Hills-Twilight Area
The City could consider these streets in future fiscal years.
Should City Council approve the additional $1,500,000 General Fund transfer and appropriation at the June 2023 budget adoption, staff recommends extending the limits of the proposed projects and address adjacent poor condition streets. Attachment 3 shows the staff recommended additional street segments. The City could consider separate standalone small project areas should funding still remain.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Recommended Project Location Map
Attachment 3 – Recommended Additional Street Segments
cc: City Manager Eric J. Levitt
FY 2023-24 CIP Budget – Residential Street Rehabilitation Projects April 18, 2023 - Page 2