Agenda Report
Fullerton City Council
MEETING DATE: MAy 2, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: RAUL GONDINEZ, INTERIM PUBLIC WORKS DIRECTOR PREPARED BY: david grantham, principal civil engineer
SUBJECT: FISCAL YEAR 2023-24 CAPITAL IMPROVEMENT PROGRAM Budget rESIDENTIAL street rehabilitation projects (Continued from APRIL 18, 2023)
SUMMARY
Review staff recommendations for Fiscal Year 2023-24 residential street rehabilitation project locations and funding.
RECOMMENDATION
Approve staff recommendations for Fiscal Year (FY) 2023-24 residential street rehabilitation project locations.
CITY MANAGER REMARKS
The City Manager’s recommended Budget which City Council maintained at this point recommends an additional $1.5 million for residential streets. In addition, City Council allocated an additional $250,000 for residential streets during the Budget study session.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The FY 2023-24 Capital Improvement Program budget will include funding for the recommended projects.
DISCUSSION
The City programs funding for arterial and local (residential and industrial) street 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. The majority of recent street rehabilitation has involved grind and overlay, limited reconstruction and very minimal slurry seal activities. This results from focus on poor condition streets and extending 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 following street rehabilitation budget for FY 2023-24:
Funding
Amount
Comments
RMRA / SB1
$3,500,000
100% of revenue allocated to streets
Gas Tax
$0
Funding allocated to Public Works - Maintenance 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
$2,500,000 revenue split between infrastructure needs
APRA
Revenue Replacement
$5,500,000
Remaining $13.1M funds previously allocated by City Council TOTAL
$12,775,000
INRAC recommended, and City Council approved on April 18, 2023, $2,900,000 of RMRA/SB1 funding allocated to arterial street rehabilitation and $600,000 of RMRA / SB1 funding allocated to local streets in the Citywide Slurry Seal / Pavement Treatment project. This leaves $9,275,000 for local (residential and industrial) street rehabilitation.
The City Manager’s Office recommends appropriating an additional $1,500,000 of ARPA Revenue Replacement funding to street rehabilitation projects for FY 2023-24 as part of the FY 2023-24 budget process. The available funding for local street rehabilitation would total $10,775.000, if approved.
Funding Restrictions and Requirements
The majority of street funding shown previously has restricted use and the City can only use those funds for maintenance, operation and rehabilitation of facilities within the street right of way. The City must also 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 a combination of General Funds (allocated to Public Works -Maintenance), Infrastructure Fund and ARPA Revenue Replacement funds, in combination with specific street rehabilitation projects discussed in this report.
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
City may complete street work 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
Residential street rehabilitation has generally followed the same streets as water and/or sewer main replacement projects over the past several years, in accordance with the guidelines. However, increased water construction costs and significant delays in securing materials (pipes, valves, fittings, etc.) have extended project 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 to address the MOE requirements.
The following lists the proposed residential street projects (See Attachment 2):
Non-Utility Work
Slurry Seal / Pavement Treatment – various streets citywide, including previous utility projects Previously approved by City Council on April 18, 2023
Treatments may include chip seals, cape seals, ARAM and slurry seals 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.
Staff recommends extending the limits of the proposed projects and address adjacent poor condition streets should City Council approve the additional $1,500,000 General Fund transfer and appropriation at the June 6, 2023 budget adoption. The type of pavement treatment may vary from grind and overlay to chip seal with slurry seal to only slurry seal. Attachment 3 shows the staff recommended additional street segments. Staff would add any remaining funds after extending the project limits to the previously approved citywide Slurry Seal / Pavement Treatment Project.
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 May 2, 2023 - Page 2