Agenda Report
Fullerton City Council
MEETING DATE: April 16, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: stephen bise, p.e., public works director PREPARED BY: david grantham, p.e., city engineer
SUBJECT: FISCAL YEAR 2024-25 CIP BUDGET - STREET REHABILITATION PROJECT APPROACH
SUMMARY
Review proposed budget and approach for Fiscal Year (FY) 2024-25 street rehabilitation projects.
PROPOSED MOTION
Approve FY 2024-25 street rehabilitation projects approach.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
The Public Works Department takes a strategic approach both in past as they look into future years of attempting to target infrastructure work where utility work is required as well as being equitable across the community.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The proposed FY 2024-25 CIP budget will include street rehabilitation projects funding for City Council consideration. The following Available Funding table presents the founding sources for the $8 million identified for street rehabilitation in FY 2024-25.
BACKGROUND AND DISCUSSION
The City programs arterial and local (residential and industrial) street rehabilitation funding every fiscal year. Rehabilitation methods can vary from slurry sealing to complete reconstruction, depending on street pavement condition and available funding. Most recent rehabilitation involved grind and overlay, limited reconstruction and minimal slurry seal activities. This allowed the City to focus on poor-condition streets and extend available funding using grind and overlay practices rather than reconstruction.
Street rehabilitation programming takes several items into consideration, 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 FY 2024-25 street rehabilitation budget:
Funding
Amount
Comments
RMRA / SB1
$3,500,000
100% of revenue allocated to streets.
Gas Tax
$0
Funding allocated to PW-Maintenance and Traffic Division projects.
Measure M2
Local Fair Share
$1,500,000
$3,250,000 expected revenue (1) $1,300,000 allocated to Traffic Division operations and projects. $50,000 to PMP & $400,000 to sidewalk repair.
Community Development Block Grant (CDBG)
$0
No project for FY 24-25 due to other City Department needs. Funding expected for FY 25-26.
Infrastructure Fund
$2,000,000
Revenue of $2,900,000 split between infrastructure needs General Fund
$1,000,000
Allocation based on overall City needs and available revenue determined during City budget process.
TOTAL
$8,000,000
OCTA estimates revenue at $3.4M; however, updated OCTA revenue for FY23-24 is approximately $200K less than their original estimate. As such, FY24-25 is decreased to account for reduced FY23-24 revenue.
INRAC supports allocating 100% of RMRA / SB1 funding ($3,500,000) to a local street rehabilitation project, subject to City Council approval. This project would rehabilitate neighborhood residential streets after completing a separate water main replacement project. This leaves approximately $4,500,000 for other street rehabilitation projects.
The City should now consider previously rehabilitated streets for slurry seal or pavement treatment as a preventive measure to maintain the good pavement condition and extend the pavement life. Staff recommends allocating up to $1,000,000 of remaining budget to a slurry seal or pavement treatment project.
Staff expects the remaining $3,500,000 to fund two or three projects which would not keep pace with all planned water main replacement projects. This would result in streets not receiving rehabilitation after new water main installation.
Funding Restrictions and Requirements
Most street funding discussed in this report has restricted use only for facility maintenance, operation and rehabilitation 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 which requires the City to expend 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 2024-25 increased to $4,921,569. Staff intends to meet this requirement utilizing General Funds (allocated to both PW-Maintenance and CIP) and Infrastructure Funds. Maintaining eligibility in the future may require increased General Funds and/or Infrastructure Funds allocation Other Funding
Staff annually seeks additional funding opportunities including competitive grants such as Community Development Block Grants (federal), Active Transportation Program (federal or state), Orange County Transportation Authority (federal or state) and federal earmarks through Congressional representatives.
These opportunities are highly competitive, have a very restrictive scope of work (i.e., not only pavement rehabilitation), can require substantial local matching funds and are not guaranteed funding sources. However, the City expects to receive funds this year from:
Active Transportation Program (ATP) for bicycle and pedestrian improvements including pavement rehabilitation on Nutwood Avenue from State College Boulevard to Placentia Avenue.
Orange County Transportation Authority (OCTA) Complete Streets Program for bicycle and pedestrian improvements including pavement rehabilitation and traffic signal improvements on Harbor Boulevard from Brea Boulevard to Valencia Mesa Avenue.
Reallocation of approximately $1,000,000 of federal funds from the State College Boulevard Grade Separation Project to help offset costs on the State College Boulevard rehabilitation project from Yorba Linda Boulevard to northerly City limits.
Staff has also requested additional FY 2024-25 federal earmarks for one arterial and two local street rehabilitation projects. The recently passed federal Infrastructure Investment and Jobs Act does not prioritize funding for local street maintenance / rehabilitation.
The City has not officially received or allocated construction funds for these projects and, therefore, has not listed them in the proposed CIP Budget.
Street Selection Guidelines
INRAC and staff reviewed and formalized street rehabilitation guidelines in July 2021, including:
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
Local 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 discussed. Staff intends to continue using these guidelines for the foreseeable future unless City Council provides different direction.
Staff expects the following FY 2024-25 programmed projects (see Attachment 2):
Arterial Streets
Placentia Avenue – Joint project with City of Placentia And one or two of either:
Malvern Avenue – Bastanchury Road to Basque Avenue
Gilbert Street – Valencia Avenue to Commonwealth Avenue Euclid Street at SR-91
Slurry Seal or Pavement Treatment Project
Various streets Citywide
Local Streets
Maplewood Area (pending separate City Council approval) Hermosa Area
And potentially one of the following (alphabetical order):
Cannon-Sheppard Area
Courtney-Ash Area
Crown Area
Firethorne Area
Hollydale Area.
Staff will base final project selection on criteria involving, but not limited to:
Available remaining funding
Status of MOE requirements
Rehabilitation method
Grind and overlay will take precedence over reconstruction Pavement treatment will take precedence over grind and overlay Water project schedule
Location within the City.
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – FY 2024-25 Street Project Locations
cc: City Manager Eric J. Levitt
FY 2024-25 CIP Budget - Street Rehabilitation Project Approach April 16, 2024 - Page 2