Agenda packet — Pleasanton City Council, March 19, 2024 (part 2 of 2)

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rates, and connection and user fees to address growth and meet current needs.

FISCAL IMPACT
There is no fiscal impact associated with this update. The City Council previously approved funding for these projects under separate actions, and will similarly consider any future noted future expenditures as they are ready to be presented.

Prepared by: Submitted by: Approved by:

Adam Nelkie, Acting
Director, Public Works
Adam Nelkie, Acting Director, Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. City Groundwater Supply Project Workflow

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Are Wells in Bernal Sub Basin Feasible?
- Wells Siting Review
- Test Drilling & Water Modeling
(Water Quality and Yield)
Joint Project Feasibility (Zone 7 Led)
- Basis of Design Report
- Design & Const Cost Allocations
- O&M Cost Allocations
- Land Right Agreements
Joint vs. City Project Selection
- Required City Distribution Impvs.
- Co
sts & Pros/Cons Comparison
PHASE 2 JOINT PROJECT
(Zone 7 Led)
- Permit & CEQA
- Design & Construct
- Finance
N
City PFAS Treatment & Well 8
Project
PHASE 2
(City Led)
- Permit & CEQA
- Design & Construct
- Finance
Y

CITY DISTRIBUTION

IMPROVEMENTS PROJECT
(City Led)
- Permit & CEQA
- Design / Construction
- Finance
City Groundwater Supply Project Workflow
Interim
Distribution
Improvements
(Currently
underway as a
separate
project)
Future
Distribution
Improvements
(to support
selected
groundwater
supply project)
Groundwater SupplyWater Distribution
PHASE 1
Feasibility Review w/ Zone 7
PHASE 3
- City Operate Well 8
PHASE 2 CITY PROJECT
(City Led)
- Permit & CEQA
- Design & Construct
- Finance
PHASE 3
-Zone 7 Operate Reg Facilities
- City receive GPQ through
Turnouts
PHASE 3
- City Operate New Wells
ATTACHMENT 1

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Item #11

CITY COUNCIL AGENDA REPORT

March 19, 2024
Public Works - Engineering Division

TITLE: CONTINUED FROM MARCH 5, 2024 - REVIEW OF PAVEMENT MANAGEMENT

REPORT COMPLETED BY AMS CONSULTING FOR THE BI-ANNUAL
EVALUATION/RECLASSIFICATION OF STREET SURFACES PROJECT, CIP NO. 21521

SUMMARY
The City maintains a Pavement Management Program (PMP) which is updated every two years as mandated by the Metropolitan Transportation Commission (MTC) to be eligible for local and grant funding to actively manage the City's $306-million-dollar street pavement asset.

The City received a grant from MTC to update the 2023 PMP, and the results are presented in the 2023/24 Pavement Management Report (see Attachment 1). The City’s street network pavement is the largest capital asset the City owns and is considered to be in “good to excellent” condition. The 2023 PMP report lowered the road network’s average by two points to a Pavement Condition Index (PCI) of 77 and increased the backlog of work from the 2021 PMP report’s by $10 million, from $22 million to $32 million, which is an unexpected decrease in the street network’s health. The PMP report identifies that the current average expenditure of approximately $4 million, plus $750,000 in concrete costs, will result in a continued decrease in pavement conditions over time. Increased construction costs, constrained funding, changes in regulations, and implementation of pedestrian improvements within the road network are having significant impacts on keeping up with the recommended maintenance.

The continued decline of the streets’ PCI rating will eventually lead to an exponential increase in the overall long-term cost of maintaining the street network.

RECOMMENDATION
Review the Pavement Management Report completed by AMS Consulting for the bi-annual evaluation/reclassification of Street Surfaces Project, CIP No. 21521

BACKGROUND
Pavement Management Program/System
In 1982, MTC completed a study of local road and street maintenance needs and revenue shortfalls in the San Francisco Bay Area. MTC developed the computer-based pavement asset management system (also known as “Street Saver”) to help Bay Area cities and counties better maintain their local streets and roads; the City began utilizing Street Saver in the late 1980s. The MTC requires all local agencies to have a pavement management program certified by the MTC every two years to qualify for regional funding. The program addresses the pavement only and does not include curb and gutter, sidewalks, curb ramps, or bridges.

The PMP must inventory all public roads within the jurisdiction limits, assess each road segment's pavement condition, identify pavement segments that need maintenance, and determine the budget needs for the recommended maintenance. The road assessments are

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conducted by consultants hired directly by the City or through a grant program administered by MTC. The City was selected for a grant for Round 24 of the Pavement Management Technical Assistance Program (P-TAP), and MTC selected AMS Consulting to perform the City’s 2023 PMP update.

The PMP program divides the City’s paved portion of the street network into 1,341 segments based on the construction of the roadway. Each segment is inspected in the field every two years and given a PCI rating that ranges from 0 (failed) to 100 (new), which are allocated into one of five condition categories as shown in Table 1 below. In addition to the PCI rating, the cost of the backlog of work is determined, with backlog defined as the cost of a project recommended for treatment in the first year but deferred to the following year(s) due to funding constraints.

Table 1: Overview of City’s Current Pavement Condition
(Table ES-1 in Attachment 1, page 4)

The pavement condition degrades on a reverse exponential curve as shown in Figure 1 below.

It is most cost-effective to maintain the streets in “good to excellent” condition. As the PCI decreases, the cost to maintain the system increases exponentially. The theoretical ideal PCI is 87, which is the point at which the network is most cost-effectively maintained.

Figure 1: Pavement Life Expectancy
(Figure 1 in Attachment 1, page 11)

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The City of Pleasanton’s street network is composed of 507 lane miles (one 9- to-13-foot lane) and covers over 46 million square feet of paved roadway divided into three functional classifications based on the volume of traffic for which the roadway is designed. As shown in Table 2 below, Residential/Local streets are typically in front of homes within the city’s neighborhoods; collector streets are typically one lane in each direction and are the wider streets entering and exiting the neighborhoods and around Hacienda pusiness park; and arterial streets are larger multi-lane streets like Santa Rita Road, Owens Drive, and First Street to which the collector streets connect to move traffic efficiently around the city.

Table 2: City Network Summary Statistics

The City completes roadway maintenance yearly, using the PMP program recommendations and engineering analysis to develop a work plan for three annual projects: the Annual Curb and Gutter Replacement, the Annual Street Resurfacing and Preventative Maintenance, and the Annual Slurry Seal. The Annual Curb and Gutter Replacement project replaces deficient curb and gutters and updates/installs American with Disabilities Act (ADA) ramps that are required by law. The Annual Street Resurfacing and Preventative Maintenance project resurfaces various roadways by overlaying the existing pavement with a new layer of asphalt concrete. The Annual Slurry Seal project slurry seals a different set of roadways. The resurfacing project is considered a street reconstruction/rehabilitation project, while the slurry seal project is a preventative maintenance project; these projects are designed to maintain the City’s roadway pavement condition. The attached 2023/2024 Payment Management Report recommends that a breakdown of 80 percent of funding be expended toward resurfacing and 20 percent expended on preventative maintenance.

The maintenance cycle for the City road network is based on the classification of the street.

Generally, the roadway goes through a cycle of two preventative maintenance treatments (slurry seal) that typically last six to eight years. Then, it is followed by a resurfacing project that typically lasts 12-15 years. A street can generally receive two full cycles that last from 70 (arterial streets) to 90 (residential streets) years before being reconstructed to lower the 4-plus inches of asphalt added as part of the resurfacing process. A large portion of the streets in Pleasanton are in their second cycle of maintenance and will soon require reconstruction efforts. This is reflected in the growing backlog of work identified in the attached report.

The City funds the three annual maintenance projects with a current budget of $5.75 million for FY 2023/24 from the General Fund, Gas Tax, Senate Bill 1 (SB-1), and local measures

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including Measure B/BB Local Streets and Roads and Measure F Vehicle Registration Fee (VRF). In addition, for the past 15 years, the City has received grant funding of nearly$1 million dollars every few years from federal stimulus programs like the American Recovery Act, and local grant funding under the One Bay Area Grant (OBAG) that consolidated many smaller local grant programs. Changes in the OBAG program removed the direct payment based on population, used in Cycles I and II, to a grant application targeting goals established by the program; the City of Pleasanton does not score as competitively as other communities under these application goals.

DISCUSSION
The City’s street network pavement, valued at $306 million (excluding concrete such as curb and gutter and sidewalks, bridges, and traffic signals and signs), is the largest capital asset the City owns. The 2023 PMP report lowered the network average by two points to a PCI of 77 and increased the backlog of work by $10 million from $22 million to $32 million from the 2021 PMP report, an unexpected decrease in the network’s health. Pleasanton’s streets still rank in “good to excellent” condition and are above the average San Francisco Bay Area road rating of PCI 67. A reduction in PCI rating and an increase in the backlog of work is a commonality across all Bay Area communities. Figure 2 compares the local agencies, with only Dublin and Livermore having higher PCI than Pleasanton; the rating is reflective of the newer streets from more recent development in Dublin and the increased funding for Livermore’s street network in the past few years.

Figure 2: Local Agency PCI Comparison
(Figure 6 in Attachment 1, page 17)

The PMP report includes six standard budget scenarios for the next five years to provide valuable “what-if”

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information based on various funding levels. The scenarios are listed in Table 3 below and are as follows:

Scenario 1 is the current budget programmed in the CIP, Scenario 2 is the cost to maintain a constant PCI of 77, Scenario 3 is to increase the PCI 5 points to 82, Scenario 4 is the cost to improve the network to the ideal PCI of 87, Scenario 5 is to maintain a constant backlog of $32 million, and Scenario 6 is if no funding would take place. The results indicate that at current funding levels the PCI is expected to drop an additional 2 points and increase the backlog to $46 million after five years. Of note, the table does not include the costs for concrete improvements, which are a necessary part of the street maintenance program.

Table 3: Scenarios
(Table ES-2 in Attachment 1, page 6)

The City’s street network PCI has been slowly declining over the last 10 years (as shown in Table 4 below) but was sustaining the backlog of work at the expended funding levels. The costs in the PMP report identified a significant increase of $2 million required, for a total of $6 million, for the Annual Street Resurfacing and Annual Slurry Seal to maintain the current PCI. In addition, the annual costs for necessary concrete improvements are dramatically increasing.

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Table 4: Historic Pavement Expenditures & PCI

Year PCI Total Cost $ in
Million
Rehab. Unit
Cost *
Slurry
Seal Unit
Cost*
2014 77 $3.47 $2.19 $0.30
2015 80 $3.24 $2.39 $0.20
2016 80 $3.10 $2.20 $0.22
2017 80 $4.73 $2.37 $0.22
2018 81 $4.82 $2.68 $0.49
2019 80 $5.01 $3.39 $0.49
2020 80 $7.75 $3.00 $0.33
2021 79 $4.54 $2.73 $0.31
2022 78 $4.72 $3.55 $0.55
2023 77
(*) Unit Cost Per Square Foot of Pavement. Concrete work is included under Pavement Rehabilitation

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Figure 3: Historical Pavement Expenditures versus PCI

The 2021 PMP projected that with the 2021 budget the network would maintain a PCI of 79 with an increased backlog of $23 million at the end of 2025. There are several reasons why the network is not performing as previously projected, and costs are expected to increase.

1. Construction costs have significantly increased. Since the pandemic, construction costs have risen higher than inflation due to an increase in both materials and labor, which means that the City's network only received approximately 80 percent of planned treatments.

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Figure 4: Historical Unit Cost Per Square Foot

Figure 4 also includes the costs for concrete improvements under the resurfacing unit costs.

2. Funding has not increased to keep up with increased costs. Gas Tax has steadily declined over the past decade, with SB-1 passed to help stabilize the GAS Tax transportation funding.

Measure B/BB Local Streets and Roads, and VRF saw declines during the pandemic and starting to rebound. The City's General Fund Budget has not been routinely used toward the three annual projects. Changes in routine grant programs limit the potential for future OBAG funding. The last grant funds received were in 2017 and 2020 with the amounts of $238,000 and $1,095,000 from OBAG 1 and 2, respectively.

3. Concrete improvements have significantly increased, and costs are expected to rise. The City’s street trees, often planted behind the back of the curb, are starting to mature and touch the back of the curb in some areas, and roots have significant impacts on the curb and gutter.

The City is required by law to install/update ADA curb ramps when the streets are resurfaced.

Recent changes to ADA law will require the installation of directional ramps at intersections, requiring new ramps to be installed at most intersections; the cost impacts of this are now being analyzed.

4. Implementation of the Pedestrian and Bicycle Master Plan, Complete Streets and Vision Zero plans increase the traffic markings to create safer roadway areas. These improvements include buffered bike lanes, green bike lanes, bulb-outs, bollards, and additional lanes of striping.

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The goal of the PMP program is to maintain or improve the street network to reach a PCI 87; however, the City street network is anticipated to decrease at the current budgeted levels. The PMP report will be further evaluated as staff develops future Capital Improvement Project (CIP) programs and recommends increasing expenditures to maintain the current PCI. Staff will continue to seek grant opportunities to increase funding.

EQUITY AND SUSTAINABILITY
The PMP program helps ensure that the City’s streets are maintained most efficiently, reducing vehicle emissions and working toward Climate Action Plan 2.0 (CAP 2.0) Transportation & Land Use strategies.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic plan goal of Investing in Our Environment, Strategy 1 – Implement the four-year Capital Improvement Program (CIP) to complete design and construction of budgeted capital projects. In addition, the PMP is a key part of the asset management plan for the City’s transportation infrastructure and advances Strategy 2 – Develop an Asset Management Plan to address comprehensive long-term planning for maintenance, renovation, repair and/or replacement of the infrastructure and public facilities to meet current and future needs.

FISCAL IMPACT
The cost for PMP update and pavement management report is $64,800. The City received $59,800 from MTC through the Round 24 P-TAP grant from MTC with a local match by the City of $15,000. The local match of $15,000 was funded out of the Bi-Annual Evaluation and Classification of Streets, CIP No. 21521.

The current budgeted level of expenditure is anticipated to lead to a decrease in the City’s road network that will eventually lead to an exponential increase in the overall long-term cost of maintaining the street network.

Prepared by: Submitted by: Approved by:

Huy Ho, Associate Engineer Adam Nelkie, Acting Director, Public Works

Gerry Beaudin, City
Manager

Attachments:

1. 2023/2024 Pavement Management Report

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Pavement Management Technical Assistance (P-TAP) Round 24

2023/2024 Pavement Management Report
Final Report (2/13/2024)

Pavement Management Technical
Assistance Program (P-TAP) Round 24
Prepared By:

AMS Consulting
5627 Stoneridge Drive, Suite 320
Pleasanton, CA 94588

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Pavement Management Technical Assistance (P-TAP) Round 24

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................. .............. 4 INTRODUCTION .................................................................................................................. .................... 7 What is a Pavement Management System (PMS)? .......................................................................... 7 Why is a Pavement Management System important? ..................................................................... 8 Scope .............................................................................................................................. ................... 8 CURRENT STATE OF ROADS ........................................................................................................ .......... 10 Road Network............................................................................................................................... ... 10 Arterial ...................................................................................................................... ................... 10 Collector ..................................................................................................................... .................. 10 Residential/Local ............................................................................................................. ............. 11 Pavement Condition Assessment .................................................................................................... 12 Historical Pavement Condition Trends............................................................................................ 15 Pavement Condition Index (PCI) ..................................................................................................... 16 Local PCI Comparison ...................................................................................................................... 17 Maintenance and Rehabilitation Strategies ................................................................................... 18 Pavement Needs for Optimal PCI .................................................................................................... 23 BUDGET SCENARIOS .............................................................................................................. ............... 25 Scenario 1 – Current Budget............................................................................................................ 27 Scenario 2 – Constant PCI ................................................................................................................ 29 Scenario 3 – Plus 5 PCI Increase ...................................................................................................... 31 Scenario 4 – Unconstrained Funding ............................................................................................... 33 Scenario 5 – Constant Deferred Maintenance ................................................................................ 35 Scenario 6 – No Funding .................................................................................................................. 37 CONCLUSIONS ................................................................................................................... ................... 39 APPENDICES .................................................................................................................... ..................... 44

TABLES EXECUTIVE SUMMARY
Table ES 1 – Overview of City’s Current Pavement Condition ................................................................ 4 Table ES 2 – Summary of different funding levels (Scenarios) ............................................................... 6

FIGURES
Figure 1. Pavement Life Expectancy ............................................................................................ ......... 11 Figure 2. Sample of Pavement Distress Types ................................................................................... ... 13 Figure 3. Sample of PCI Condition Categories .................................................................................. .... 14

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Pavement Management Technical Assistance (P-TAP) Round 24 Figure 4. Historical Pavement Condition Trends (2023) ....................................................................... 15 Figure 5. Street-by-Street Map of Pavement Condition Index (2023) .................................................. 16 Figure 6. Local Agency PCI Comparison ......................................................................................... ....... 17 Figure 7. Standard Deterioration Curve ........................................................................................ ....... 19 Figure 8. Scenario 1. Current Budget PCI and Backlog ......................................................................... 27 Figure 9. Scenario 1. Current Budget PCI Map - 2028 Condition Category Summary ........................... 28 Figure 10. Scenario 2. Constant PCI and Backlog .................................................................................. 29 Figure 11. Scenario 2. Constant PCI Map - 2028 Condition Category Summary ................................... 30 Figure 12. Scenario 3. Plus 5 PCI Increase and Backlog ........................................................................ 31 Figure 13. Scenario 3. Plus 5 PCI Increase PCI Map - 2028 Condition Category Summary.................... 32 Figure 14. Scenario 4. Unconstrained Funding PCI and Backlog .......................................................... 33 Figure 15. Scenario 4. Unconstrained Funding Map - 2028 Condition Category Summary .................. 34 Figure 16. Scenario 5. Constant Deferred Maintenance and Backlog .................................................. 35 Figure 17. Scenario 5. Constant Deferred Maintenance PCI Map - 2028 Condition Category Summary .............................................................................................................................. ............................... 36 Figure 18. Scenario 6. No Funding PCI and Backlog ............................................................................. 37 Figure 19. Scenario 6. No Funding PCI Map - 2028 Condition Category Summary ............................... 38 Figure 20. 5-Year Scenario PCI Summary ........................................................................................ ..... 41 Figure 21. 5-Year Scenario Backlog Summary .................................................................................... .. 42

TABLES
Table 1. City Network Summary Statistics ...................................................................................... ...... 12 Table 2. Current Pavement Condition Categories ................................................................................ 18 Table 3. Maintenance Strategies for Arterial, Collector, and Residential Streets. ................................ 23 Table 4. 5-Year Needs Breakdown for Optimal PCI .............................................................................. 24 Table 5. Scenario Summary ..................................................................................................... ............. 26 Table 6. Scenario 1. Current Budget Summary ..................................................................................... 27 Table 7. Scenario 1. Current Budget - 2028 Condition Category Summary .......................................... 28 Table 8. Scenario 2. Constant PCI Summary ..................................................................................... .... 29 Table 9. Scenario 2. Constant PCI - 2028 Condition Category Summary .............................................. 30 Table 10. Scenario 3. Plus 5 PCI Increase Summary ............................................................................. 31 Table 11. Scenario 3. Plus 5 PCI Increase - 2028 Condition Category Summary ................................... 32 Table 12. Scenario 4. Unconstrained Funding Summary ...................................................................... 33 Table 13. Scenario 4. Unconstrained Funding - 2028 Condition Category Summary ........................... 34 Table 14. Scenario 5. Constant Deferred Maintenance Summary ........................................................ 35 Table 15. Scenario 5. Constant Deferred Maintenance - 2028 Condition Category Summary ............. 36 Table 16. Scenario 6. No Funding Summary ...................................................................................... ... 37 Table 17. Scenario 6. No Funding - 2028 Condition Category Summary .............................................. 38 Table 18. Scenario Summary PCI Conditions at the end of 2028 ......................................................... 43

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Pavement Management Technical Assistance (P-TAP) Round 24

EXECUTIVE SUMMARY

The City of Pleasanton’s street network is 209.34 centerline miles long and covers approximately 46.2 million square feet of pavement 1. This network is an essential asset and is among the most valuable assets maintained by the City. This asset is worth $306 million to replace 2. Through the Metropolitan Transportation Commission (MTC) Pavement Management Technical Assistance Program (P-TAP), the City completed a comprehensive pa vement management update that included field inspections and an update of the City’s pavement management software. With the most recent inspection information and treatments, the City’s overall Pavement Co ndition Index (PCI) is 77, classified as “ Good to Excellent” for MTC standards. The PCI is a numerical rati ng from 0 – 100, with 0 being a failed street and 100 being a brand new pavement. 71.5% of the City’s roads have a PCI of 70 and above and are classified in the “Good to Excellent” category (Table ES 1).

Table ES 1 – Overview of City’s Current Pavement Condition Current Condition Categories Current
Condition I - Good to Excellent (PCI 70 - 100) 71.5%
Condition II/III - At Risk to Fair (PCI 50 - 69) 23.0%
Condition IV - Poor (PCI 25 - 49) 5.4%
Condition V - Failed to Very Poor (PCI 0 - 24) 0.1%

An adequately designed asphalt street typically lasts twenty years without total reconstruction.

However, if conditions change, such as higher daily traffic usage, then reconstruction of the pavement may be warranted sooner. Extending the life of the pavement with pavement preservation, as opposed to the replacement of pavement, is the goal of a pavement management program.

1 This report does not include city-owned parking lots. The parking lot study was done separately from P-TAP. In total (including parking lots), the City has 215.4 centerline miles, 519.61 lane miles, and 1.72 square miles of pavement. 2 The valuation is assessed by the assumption of replacing the entire street network with a new street valued in today’s dollar.

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Pavement Management Technical Assistance (P-TAP) Round 24 Six budget scenarios were evaluated as part of the P-TAP update. AMS used the MTC StreetSaver pavement management software 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 values if recommendations are implemented.

The six funding scenarios detailed ( Table ES 2 ) below are five-year projections and provide valuable “what-if” information on expected PCI and backlo g values that may occu r at different funding constraints. Backlog is the cost of a project recommended for treatment in the first year but deferred to the following years due to funding constraints. The following scenarios were analyzed and detailed below. The City’s current Backlog is $31.7 million.

Scenario 1 – Current Budget

 Average funding of $4.1M per year for maintenance and rehabilitation.  PCI decreases to 75 at the end of five years.
 Backlog increases from $31.7M to $46.7M at the end of five years.  71.2% of City streets will have a PCI equal to or greater than 70.

Scenario 2 – Constant PCI
 Average funding of $6.1M per year for maintenance and rehabilitation.  PCI remains constant at 77 at the end of five years.
 Backlog Increases from $31.7M to $36.1M at the end of five years.  75.2% of City streets will have a PCI equal to or greater than 70.

Scenario 3 – Plus 5 PCI Increase
 Average funding of $10.5M per year for maintenance and rehabilitation.  PCI increases to 82 PCI at the end of five years.
 Backlog decreases from $31.7M to $20.4M at the end of five years.  88.9% of City streets will have a PCI equal to or greater than 70.

Scenario 4 – Unconstrained Funding
 Average funding of $14.9M per year on maintenance and rehabilitation.  PCI will increase to 87 at the end of five years.
 Backlog decreases from $31.7M to $1.1M at the end of five years.  98.5% of City streets will have a PCI equal to or greater than 70.

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Pavement Management Technical Assistance (P-TAP) Round 24

Scenario 5 – Constant Deferred Maintenance
 Average funding of $7.2M per year on maintenance and rehabilitation.  PCI will increase to 78 at the end of five years.
 Backlog remains constant at $31.7M at the end of five years.  77.8% of City streets will have a PCI equal to or greater than 70.

Scenario 6 – No Funding
 Average funding of $0 per year on maintenance and rehabilitation.  PCI decreases to 70 at the end of five years.
 Backlog increases from $31.7M to $60.2M at the end of five years.  60.2% of City streets will have a PCI equal to or greater than 70.

Table ES 2 – Summary of different funding levels (Scenarios)

Scenario 1.

Current
Budget
Scenario 2.

Constant PCI
Scenario 3.

Plus 5 PCI
Increase
Scenario 4.

Unconstrained
Funding
Scenario 5.

Constant
Deferred
Maintenance
Scenario 6.

No Funding
Average Yearly Budget $4,090,000 $6,115,824 $10,537,257 $14,903,943 $7,150,940 $0 Total Budget for 5 Years $20,450,000 $30,579,120 $52,686,284 $74,519,715 $35,754,700 $0 Current PCI 77 77 77 77 77 77
Current Backlog $31,709,065 $31,709,065 $31,709,065 $31,709,065 $31,709,065 $31,709,065 Current % in 'Good' condition 71.50% 71.50% 71.50% 71.50% 71.50% 71.50% PCI after 5 years (change) 75 (-2) 77 (0) 82 (+5) 87 (+10) 78 (+1) 70 (-7) Backlog after 5 years $46,732,406 $36,071,136 $20,363,078 $1,090,991 $31,709,185 $60,156,996 % 'Good' in 5 years 71.2 76.9 90.2 98.5 77.8 60.2
% 'Fair' in 5 years 16.3 12.8 3.5 0.9 13.8 23.2
% 'Poor' in 5 years 11.3 9.4 5.4 0.4 7.6 15.3
% 'Very Poor' in 5 years 1.2 0.9 0.9 0.2 0.8 1.3

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Pavement Management Technical Assistance (P-TAP) Round 24

INTRODUCTION

Paved streets in the City of Pleasanton are among the many assets every resident, visitor, and business uses. A good street network enhances public safety, promotes mobility, and enables economic activity.

The City is responsible for 209.34 centerline miles of roads or 507.51 lane miles3. This asset comprises

46.2 million square feet of asphalt concrete and is valued at $306 million to replace.

The MTC P-TAP program selected AMS Consulting (AMS) as the City’s Pavement Management Consultant. The program helps Local San Franci sco Bay Area agencies update their pavement management program through inspection surveys and reporting. The program is designed to help agencies stretch their pavement expenditures by:

 Implementing, updating, and maintaining pavement management databases; and  Providing updated pavement condition data of the network and each street segment.

What is a Pavement Management System (PMS)?
Pavement Management is the systematic process used to oversee the city ’s paved surfaces by measuring the condition and tracking the maintenance and rehabilitation of pavement sections. Area, zones, and functional classifications can organize these pavement sections. Effective pavement management strategies include condition assessment, life-cycle cost analysis, and budget projections to identify pavement segments needing maintenance or repair.

The City uses the MTC Pavement Management System, StreetSaver, to track and analyze the pavement condition and to develop the City’s annual street maintenance/rehabilitation program. The StreetSaver system is an online program used by all 109 cities and counties in the San Francisco Bay Area region and over 300 other public and private organizations nationwide and internationally. The StreetSaver

3 Lane mile equals 5,280 linear feet multiplied by the number of lanes.

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Pavement Management Technical Assistance (P-TAP) Round 24 online program helps agencies and organizations make informed decisions about their pavement assets.

Please note that the pavement management software is a network-level support tool for planning and budgeting purposes. StreetSaver’s recommendation does not bind the City and is not a substitute for sound engineering judgment. Pavement management projects can be manua lly added or removed from StreetSaver’s recommended sections sele cted for treatment based on other special considerations.

Why is a Pavement Management System important?
The City’s paved surfaces are a vital asset to the community. It is essential that this asset is preserved and maintained. The pavement management pr ogram balances pavement maintenance and rehabilitation of existing surfaces. The most cost -effective way to correct any paved surface problem is to address issues when they first appear. That is why funds are targeted to paved areas or sections rated in fair or good condition for preventative maintenance 4. Without maintenance, these paved asphalt concrete surfaces would quickly deteriorate and be more expensive to fix in the future.

Scope
As part of the P-TAP Round 24 grant, AMS was resp onsible for inspecting Arterial, Collector, and Residential/Local streets. A Pave ment Condition Index (PCI) score was assigned for each pavement section, which gives a numerical indication of the pavement's current condition.

The condition assessment results are used to determine the remaining useful life and develop ongoing major maintenance strategies. Cost analysis also provides the City with an understanding of its short-

4 Preventative maintenance is a planned activity, unlike pavement repair. Pavement repair is used to eliminate pavement distress such as a large pothole. Preventative maintenance is generally cyclic in nature and is intended to stop distresses before they occur.

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Pavement Management Technical Assistance (P-TAP) Round 24 term pavement needs. This information projects the annual costs for maintenance and rehabilitation5 to bring the overall network PCI to optimal conditi ons. Optimal conditions are when an agency has addressed all of its backlog needs. Backlog needs are defined as street segments identified in the needs assessment of the PMS requiring repair but not funded due to insufficient funding. Optimal conditions for the City of Pleasanton have a network PCI that ranges from 85 to 87.

5 Rehabilitation is pavement treatment to restore serviceability and extend the service life of the road. This may include partial recycling of the existing pavement or other work necessary to return an existing pavement to a condition of functional adequacy.

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Pavement Management Technical Assistance (P-TAP) Round 24

CURRENT STATE OF ROADS

Road Network6
The City’s road network is classified into three functional classifications:

Arterial
These roadways provide high mobility while allowi ng direct access to abutting properties. These roadways serve major activity centers in an urban setting and have the highest volume and longest trip demand within a City. They interconnect other ma jor corridors to accommodate trips entering and exiting the City. These roads also serve the need for “intra-area” travel between the business district and outlying Residential areas. An example of an Arterial in Pleasanton is Hopyard Rd.

Also, Arterials primarily serve intra-urban or Local tr avel, carrying traffic from Collector streets to and from other parts of the City and limited access roadways. Access to properties bordering these streets is subordinate to the primary function of moving tra ffic. The typical design speed on an Arterial is 45 miles per hour, and it has two to four lanes, except in the case of some principal Arterials, which have six lanes. Parking is generally not provided on Arterials.

Collector
The primary function of Collector Streets is a combination of access and mobility. These streets provide links between Local streets and Arterials. They are designed to serve neighborhood traffic rather than cross-town traffic, including trips between adjacent neighborhoods. The design speed for Collectors is typically 35 miles per hour. On-street parking is usually provided.

6 These roads are consistent with the City’s General Plan.

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Pavement Management Technical Assistance (P-TAP) Round 24 Residential/Local
Unlike other categories, Local roads are not intended fo r long-distance travel except at the origin or destination end of a trip. These roads are typically cl assified by default after identifying Arterial and Collector streets. Local roads provide the highest level of accessibility and carry no through traffic movement. The primary function of local streets is access to adjacent land uses. Parking is usually offered along Local roads, and speed limits are typically 25 miles per hour.

Each street is not built the same and, therefore, does not share the same deterioration curves or have the same life expectancy. Figure 1 exemplifies the City’s current life expectancy for pavement. The useful life for an Arterial is much shorter than that of a Residential street due to the amount of traffic.

Figure 1. Pavement Life Expectancy

The City of Pleasanton owns and manages 209.34 centerline miles of pavement. Table 1 is a summary of the City’s road network.

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Pavement Management Technical Assistance (P-TAP) Round 24 Table 1. City Network Summary Statistics
Functional
Classification
Total
Sections
Total
Center
Miles
Total Lane
Miles
Total Area
(SF) PCI
Arterial 95 28.62 116.39 10,053,533 70
Collector 289 72.99 175.55 16,502,206 77
Residential/Local 957 107.73 215.57 19,659,972 81
1,341.00 209.34 507.51 46,215,711

Pavement Condition Assessment

A pavement surface assessment is completed by identifying surface distresses within each pavement management section. Inspection s entail evaluating a representative sample (10% of the area), identifying different pavement su rface distresses (8 distress type s), measuring severities (low, medium, and heavy), and quantifying them. Figure 2 is an example of eight different surface distress types. Inspectors use StreetSaver as a tool to ca lculate the condition of each management section.

StreetSaver is an industry-standard (modified AS TM 6433) software used to generate a pavement rating known as a PCI (Pavement Co ndition Index). A PCI rating is a numerical value between 0 and 100, with 0 being a failed road and 100 being a brand-new street (Figure 3). The PCI is calculated using the StreetSaver system algorithms that MTC developed.

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Pavement Management Technical Assistance (P-TAP) Round 24 Figure 2. Sample of Pavement Distress Types

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Pavement Management Technical Assistance (P-TAP) Round 24 Figure 3. Sample of PCI Condition Categories

A. Stoneridge Dr – Gibraltar to West Las Positas (92 PCI) B. Dublin Canyon – Foothill to 1221 west of Foothill (78 PCI) C. Stoneridge Dr – Las Positas to Arroyo (59 PCI)
D. Hopyard Rd – Stoneridge to West Las Positas (47 PCI) E. Owens Dr – Hopyward to Johnson (32 PCI)
F. Johnson Ct – Owens to Parking Lot (25 PCI)

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Pavement Management Technical Assistance (P-TAP) Round 24 Historical Pavement Condition Trends

Figure 4. shows the network pavement condition and annual expenditures over the last five years.

Results demonstrate that the overall network PCI has been trending downwards. The PCI decrease is due to rising construction costs and state and federal mandates that require agencies to update ADA curb ramps when pavements have been altered. Certain types of resurfacing treatments are considered an alteration: Mill and Overlay, Hot In-Place Recycling, Microsurfacing/Thin Lift Overlay, Addition of a New Layer of Asphalt, Asphalt and Concrete of Rehabilitation and Reconstruction, and New Construction7.

Figure 4. Historical Pavement Condition Trends (2023)

7 https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lpp/lpp16-04.pdf

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Pavement Management Technical Assistance (P-TAP) Round 24 Pavement Condition Index (PCI)

After the 2023 pavement management update and re cent pavement projects, the City’s overall network PCI is 77 PCI. The overal l network condition is a weight ed average PCI equal to each management section PCI multiplied by its area and divided by the network's total area.

Figure 5 is a street-by-street map of the Pavement Condition Index.

Figure 5. Street-by-Street Map of Pavement Condition Index (2023)

Current Condition Categories
Condition I - Good to Excellent (PCI 70 - 100)
Condition II/III - At Risk to Fair (PCI 50 - 69)
Condition IV - Poor (PCI 25 - 49)
Condition V - Failed to Very Poor (PCI 0 - 24)

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Pavement Management Technical Assistance (P-TAP) Round 24 Local PCI Comparison

Figure 6 is a PCI comparison with Local agencies in Alameda County. Results for network PCIs were obtained from the MTC Vital Signs website. MTC results show that the City’s overall network PCI is 10 points above the San Francisco Bay Area average PCI.

Figure 6. Local Agency PCI Comparison

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Pavement Management Technical Assistance (P-TAP) Round 24 Table 2 shows the City’s current road network pavement condition categories. Approximately 71.5% of the City’s road network has a PCI of 70 or better.

Table 2. Current Pavement Condition Categories
Current Condition Categories Current
Condition I - Good to Excellent (PCI 70 - 100) 71.5%
Condition II/III - At Risk to Fair (PCI 50 - 69) 23.0%
Condition IV - Poor (PCI 25 - 49) 5.4%
Condition V - Failed to Very Poor (PCI 0 - 24) 0.1%

Maintenance and Rehabilitation Strategies

The City’s current maintenance activities vary from project to project; each maintenance activity is based on the section’s functional classification (Arterial, Collector, and Residential), surface type, and PCI. Figure 7 illustrates a general pavement life cycle curve. The curve shows that pavements deteriorate only 40 percent in quality in the firs t 75 percent of their life; this deterioration subsequently accelerates rapidly, resulting in another 40 percent drop in quality in the next 12 percent of life. Therefore, investing in preventative maintenance in streets classified as “Good Condition” (70 and above) can save the city a significant amount of money in rehabilitation and reconstruction8 costs in the future. Depending on the condition of the existing street, the appropriate roadway rehabilitation treatment method will be selected to regain strength to the existing pavement. Types of pavement rehabilitation are described below. MTC recommends that the City continue its preventative maintenance efforts to utilize the recommended cost-effective treatments such as crack and slurry seals. City staff has reviewed th e maintenance strategies, and AMS has updated the StreetSaver pavement management system. Part of the update was to review and revise the system unit costs. These unit costs are used to calculate total funding and budget need calculation. These

8 Reconstruction is equivalent to a new pavement structure where it involves removal and replacement of the existing pavement structure.

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Pavement Management Technical Assistance (P-TAP) Round 24 unit costs are “total project construction costs” that include but are not limited to construction, third- party testing & inspection, tree trimming, striping, and traffic loop/camera detector installation.

Figure 7. Standard Deterioration Curve

Below are the treatments for the City’s maintenance strategies:

Seal Crack Treatment
9- Preventative Maintenance Treatment
Surface Cracks are inevitable distresses and are on e of the first signs of distress at the pavement surface. If neglected over time, this distress can gr ow into a heavy crack and possibly a pothole if left untreated. Crack Sealing is a cost-effective treatmen t for cracks greater than 1/8”. This treatment slows the deterioration and can extend pavement life by three to five years. This treatment is triggered every five years for Arterials and every four years for Collectors and Residential streets.

9 https://roadresource.org/treatment_resources/crack_seal

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Pavement Management Technical Assistance (P-TAP) Round 24 Slurry Seals10- Preventative Maintenance Treatment
A slurry seal is a surface treatment with mixtures containing asphalt emulsion, graded aggregates, fillers, water, and other additives to control the break and set time of the mixes. These treatments are designed to extend the life of asphalt pavements in good condition by providing skid resistance, restricting moisture intrusion, protecting the st ructure from further oxidation and raveling, and restoring a uniform black appearance . The slurry seal provides quick construction times and minimal disruption to the traveling public and can extend the lif e of the pavement by five to seven years. The City addresses load-related distress before applying a slurry seal. The City’s maintenance strategy for slurry seal and slurry seal with base failure repair is triggered to occur ever y eight years. Arterial, Collectors, and Residential street s have a maximum of two (2) sl urry seals before the system recommends a restoration treatment that warrants an AC Overlay with Fabric (1.5”).

AC Overlay - Rehabilitation Treatment
Also known as “Mill and Fill,” this treatment targets pavement at risk to fair condition without signs of load-related distress. The treatment generally involv es grinding the edges of existing pavement and placing a new layer of asphalt concrete (AC) on top of the existing pavement. Asphalt concrete, or Hot Mix Asphalt (HMA), is a mixture of asphalt oil, crushed rock, gravel, and sand.

AC Overlay with Pavement Fabric - Rehabilitation Treatment This treatment targets streets in fair to good condition with signs of load-related distress. The treatment generally involves grinding the edges of the existing pavement and placing a layer of paving mat/fabric on it before applying a new surface course of asphalt concrete over the top of the existing pavement. A paving mat is an engineered pavement interlayer to create a mo isture-resistant barrier and retard reflective cracking, which helps prolong the pavement service life.

10 https://roadresource.org/treatment_resources/slurry_seal

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Pavement Management Technical Assistance (P-TAP) Round 24 Mill and AC Overlay/ AC Overlay with SAMI - Rehabilitation Treatment This treatment targets streets in at-risk to fair co ndition with signs of load -related distresses with necessary profile grade adjustment. The treatment consists of cold milling (also known as cold plane/grinding) the existing surface to a pre-dete rmined depth with specialized milling equipment to provide properly required grades. A new layer of asphalt concrete is then placed after the completion of the milling operation.

SAMI stands for Stress Absorbing Membrane Interl ayer (SAMI). This interlayer provides increased flexibility and reduces the likelihood of surface reflective cracking.

AC Overlay with Rubberized Chip Seal - Rehabilitation Treatment This treatment targets streets in poor conditions th at need to be rehabilitated. This construction method involves grinding the edges of the existi ng pavement, placing a 3/8” layer of asphalt-rubber binder and aggregate pre-coated with paving asphalt (called rubberized chip seal), and then placing a new surface course of 1.5” to 1.75” thick of asphalt concrete over the newly established chip seal layer.

Cold-in-Place Recycling (CIPR)
11- Rehabilitation Treatment
CIPR is a cost-effective, long-lasting, greener alternative to conventional maintenance and rehabilitation techniques. Cold In-place Recycling (CIR) is a process that cold mills and recycles the top 2-5 inches of asphalt using a continuous train operat ion. By reusing existing material, CIR significantly reduces trucking, time, and natural resources to substantially lower project costs. Generally, any road candidate for mill & fill is a candidate for CIR. This treatment adds fifteen to twenty years of service life with a combined appropriate wearing course. Th is treatment is typically 20%-50% less expensive than conventional maintenance and reconstruction methods. Still, it re quires a lot of upfront coordination with various utility agencies to ensure that no utility facilities are within the 2-5 inches of existing asphalt that will be milled.

11 https://roadresource.org/treatment_resources/cold_in_place_recycling

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Pavement Management Technical Assistance (P-TAP) Round 24 Full-Depth-Reclamation (FDR)12 – Deep Rehabilitation
FDR is a cost-effective, long-lasting, greener al ternative to deep rehab ilitation or removal and replacement techniques. Full Depth Reclamation (FDR) is an engineered rehabilitation technique. The entire thickness of the asphalt pavement and a pr edetermined portion of th e underlying materials (base, subbase, and subgrade) is uniformly pul verized and blended to provide an upgraded, homogeneous material. The reclaimed materials may be improved and strengthened by using Mechanical, Chemical, or Bituminous stabilization. FDR isn't only for roads in poor condition; it is also a viable design process for increasi ng pavement's structural capacity in good condition but requires a lot of upfront coordination with various utility agen cies to ensure that ther e are no utility facilities within the existing asphalt and underlying materials that will be pulverized.

Reconstruction
Pavement reconstruction is a treatment that is needed when a road has reached the end of its design life, or the pavement has severe cr oss-section deficiencies due to tr affic or environmental factors.

These roads typically have a PCI of 25 and below; reconstruction is required to restore the service life.

Reconstruction is equivalent to a new pavement that involves rebuilding the pavement layers from the ground up to replace the pavement. This treatmen t is the most expensive compared to the other treatments in the maintenance strategy.

12 https://roadresource.org/treatment_resources/full_depth_reclamation

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Pavement Management Technical Assistance (P-TAP) Round 24 Table 3 shows the City’s current maintenance strategies for Arterial, Collector, and Residential streets, with Arterial roads having the highest priority, followed by Collector and then Residential.

Arterial streets have the highest priority due to the high traffic volume.

Table 3. Maintenance Strategies for Arterial, Collector, and Residential Streets.

Pavement Needs for Optimal PCI
The pavement management program develops a maintenance strategy to improve the road network's overall condition to an optimal PCI (85-87 PCI range). The overall weighted average PCI is 77 PCI, which is within the “Good Category.” This scenario answers the mo st common question, “If the City had all the money in the world, what would it cost to update the road network?” Table 4 below represents the 5-year breakdown to get the road network in to optimal conditions and address the backlog.

Currently, the City’s backlog is approximately $31. 7 million. The backlog is derived from the work scheduled in prior years but deferred due to insufficient funding resources. Please note that the cost of the needs has been front-loaded. The front-lo aded costs are due to the pavement management system's need to bring the entire pavement ne twork to optimal conditions and maintain those Functional
Class
Surface
Type
PCI
Range Condition Category Treatment Type Treatment
Cost
/Square
Yard
Years
between
Crack
Seal
Years
between
Surface
Seals
# of
Surface
Seals
before
Overlay
70 - 100 Condition I - Good to Excellent Crack Treatment SEAL CRACKS $0.46 5 70 - 100 Condition I - Good to Excellent Surface Treatment SLURRY SEAL $5.70 8 70 - 100 Condition I - Good to Excellent Restoration Treatmen tAC OVERLAY 1.5" $25.42 2 50 - 69 Condition II/III - At Risk to Fair (Non-Load Related) AC OVERLAY W FABRIC 1.75 I N $26.04 50 - 69 Condition II/III - At Risk to Fair(Load Related) OVERLAY W FABRIC $28.52 25 - 49 Condition IV - Poor OVERLAY with SAMI $40.57
0 - 25 Condition V - Failed to Very Poor RECONSTRUCT SURFACE AC $99.14 70 - 100 Condition I - Good to Excellent Crack Treatment SEAL CRACKS $0.46 4 70 - 100 Condition I - Good to Excellent Surface Treatment SLURRY SEAL $5.70 8 70 - 100 Condition I - Good to Excellent Restoration Treatmen tAC OVERLAY 1.5" $23.56 2 50 - 69 Condition II/III - At Risk to Fair (Non-Load Related) AC OVERLAY 1_75 INCHES $24.80 50 - 69 Condition II/III - At Risk to Fair(Load Related) OVERLAY 1.75" W/FABRIC $26.11 25 - 49 Condition IV - Poor OVERLAY with SAMI $36.71
0 - 25 Condition V - Failed to Very Poor RECONSTRUCT STRUCTURE A C $63.10 70 - 100 Condition I - Good to Excellent Crack Treatment SEAL CRACKS $0.46 3 70 - 100 Condition I - Good to Excellent Surface Treatment SLURRY SEAL $5.70 8 70 - 100 Condition I - Good to Excellent Restoration Treatmen tAC OVERLAY 1.5" $23.56 2 50 - 69 Condition II/III - At Risk to Fair (Non-Load Related) AC OVERLAY 1_75 INCHES $24.18 50 - 69 Condition II/III - At Risk to Fair(Load Related) AC OVERLAY W FABRIC 1.75 I N $25.42
25 - 49 Condition IV - Poor OVERLAY with SAMI $36.71
0 - 25 Condition V - Failed to Very Poor RECONSTRUCT STRUCTURE A C $60.96 AC
Arterial
Collector
Residential
AC
AC

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Pavement Management Technical Assistance (P-TAP) Round 24 conditions for the next five years. To keep the PCI at optimal levels, the City must spend approximately $74.5 million by the end of 2028. The pavement management software is more cost-effective to repair the street in the first year rather than waiting to fix it in the subsequent years. Generally speaking, roads appear to be in good condition for a long ti me; however, when roads fail, they fail quickly, and repair costs can increase if the recommended mainte nance treatments are deferred. Should the City not invest in maintenance or rehabilitation treatments on streets for the next five years, the overall network PCI will decrease to 70.

Table 4. 5-Year Needs Breakdown for Optimal PCI
13 City Needs
Year PM Rehab Cost Total PCI
Treated
PCI
Untreated
2024 $6,914,840 $24,794,225 $31,709,065 86 77
2025 $2,766,890 $9,920,202 $12,687,092 86 76
2026 $795,536 $7,568,442 $8,363,978 86 74
2027 $2,257,720 $7,228,645 $9,486,365 86 72
2028 $2,663,845 $9,609,373 $12,273,218 87 70
$15,398,831 $59,120,887 $74,519,718

13 The results of the budget needs analysis use a 3% interest and inflation factor. These costs are in today’s dollars, using pre-Covid unit costs and accounts for annual 3% interest and inflation.

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Pavement Management Technical Assistance (P-TAP) Round 24

BUDGET SCENARIOS
After inspecting the City’s roadway conditions a nd evaluating the maintenance and rehabilitation needs, the next step in developing a cost-effectiv e maintenance and rehabilitation strategy is to run “what-if” scenarios. The advantage of a pavement management program such as StreetSaver is the ability to forecast the treatments and conditions ba sed on budget constraints or predict future costs based on targeted network PCI goals. The following scenarios have been analyzed:

Scenario 1 – Current Budget
 Average funding of $4.1M per year for maintenance and rehabilitation.  PCI decreases to 75 at the end of five years.
 Backlog increases from $31.7M to $46.7M at the end of five years.  71.2% of City streets will have a PCI equal to or greater than 70.

Scenario 2 – Constant PCI
 Average funding of $6.1M per year for maintenance and rehabilitation.  PCI remains constant at 77 at the end of five years.
 Backlog INcreases from $31.7M to $36.1M at the end of five years.  75.2% of City streets will have a PCI equal to or greater than 70.

Scenario 5 – Constant Deferred Maintenance
 Average funding of $7.2M per year on maintenance and rehabilitation.  PCI increases to 78 at the end of five years.
 Backlog remains constant at $31.7M at the end of five years.  77.8% of City streets will have a PCI equal to or greater than 70.

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 6 – No Funding
 Average funding of $0 per year on maintenance and rehabilitation.  PCI decreases to 70 at the end of five years.
 Backlog increases from $31.7M to $60.2M at the end of five years.  60.2% of City streets will have a PCI equal to or greater than 70.

Table 5. Scenario Summary

Scenario 1.

Current
Budget
Scenario 2.

Constant PCI
Scenario 3.

Plus 5 PCI
Increase
Scenario 4.

Unconstrained
Funding
Scenario 5.

Constant
Deferred
Maintenance
Scenario 6.

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 1 – Current Budget
The City’s current budget is approximately $4.1 million annually or $20.5 million at the end of five years. Implementing this budget scenario (Figure 8, Table 6) shows that the PCI will decrease to 75 by the end of 2028, while the backlog will increase to $46.7 million.

Figure 8. Scenario 1. Current Budget PCI and Backlog

Table 6. Scenario 1. Current Budget Summary

Scenario 1. Current Budget
Year Budget Backlog PCI
2024 $4,200,000 $27,509,526 79
2025 $4,000,000 $34,834,776 78
2026 $3,950,000 $36,145,690 77
2027 $4,100,000 $41,212,701 76
2028 $4,200,000 $46,732,406 75

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 71.2% (Table 7) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 7. Scenario 1. Current Budget - 2028 Condition Category Summary

Scenario 1.

Current
Budget
% Change
at the end
of 5 years
% 'Good' in 5 years 71.2 -0.3
% 'Fair' in 5 years 16.3 -6.7
% 'Poor' in 5 years 11.3 5.9
% 'Very Poor' in 5 years 1.2 1.1

Figure 9 is a projected PCI map for 2028 if the “Current Budget” is implemented.

Figure 9. Scenario 1. Current Budget PCI Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 2 – Constant PCI
This scenario ( Figure 10, Table 8) analyzes the cost to sustain the ov erall network PCI at 77. Results show that it would cost approximately $6.1 millio n annually or $30.6 million fo r five years. This iteration indicates that the backlog will increase to $36.1 million by the end of the year 2028.

Figure 10. Scenario 2. Constant PCI and Backlog

Table 8. Scenario 2. Constant PCI Summary
Scenario 2. Constant PCI
Year Budget Backlog PCI
2024 $0 $31,709,065 77
2025 $5,440,514 $36,220,587 77
2026 $8,653,353 $32,613,096 77
2027 $7,331,429 $34,071,136 77
2028 $9,153,824 $36,071,136 77

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 75.2% (Table 9) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 9. Scenario 2. Constant PCI - 2028 Condition Category Summary

Scenario 2.

Constant
PCI
% Change
at the end
of 5 years
% 'Good' in 5 years 75.2 3.7
% 'Fair' in 5 years 14.9 -8.1
% 'Poor' in 5 years 9 3.6
% 'Very Poor' in 5 years 0.9 0.8

Figure 11 is a projected PCI map 2028 if the “Constant PCI” scenario is implemented.

Figure 11. Scenario 2. Constant PCI Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 3 – Plus 5 PCI Increase
Figure 12, Table 10 represents the costs and impacts of increasing the overall network by 5 points (82 PCI). Implementing this scenario would cost approximately $10.5 million annually or about $52.7 million by the end of five years. In addition, this scenario decreases the backlog to $20.4 million at the end of the five years.

Figure 12. Scenario 3. Plus 5 PCI Increase and Backlog

Table 10. Scenario 3. Plus 5 PCI Increase Summary

Scenario 3. Plus 5 PCI Increase
Year Budget Backlog PCI
2024 $17,369,507 $14,340,181 82
2025 $9,154,646 $17,934,766 82
2026 $8,314,112 $17,939,166 82
2027 $9,187,899 $17,693,598 82
2028 $8,660,120 $20,363,078 82

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 88.9% (Table 11) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 11. Scenario 3. Plus 5 PCI Increase - 2028 Condition Category Summary

Scenario 3.

Plus 5 PCI
Increase
% Change
at the end
of 5 years
% 'Good' in 5 years 88.9 17.4
% 'Fair' in 5 years 4.3 -18.7
% 'Poor' in 5 years 5.8 0.4
% 'Very Poor' in 5 years 1 0.9

Figure 13 shows a projected PCI map for 2028 if the “Plus 5 PCI Increase” scenario is implemented.

Figure 13. Scenario 3. Plus 5 PCI Increase PCI Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 4 – Unconstrained Funding
Figure 14, Table 12, represents the costs and impacts of im plementing an unconstrained budget.

Results show that it would bring the City’s network to optimal conditions and cost approximately $14.9M annually or $74.5 million for five years. Implementing this scenario would increase the overall network PCI to 87, while the backlog would decrea se from $31.7 million to $1. 1 million by the end of 2028.

Figure 14. Scenario 4. Unconstrained Funding PCI and Backlog

Table 12. Scenario 4. Unconstrained Funding Summary

Scenario 4. Unconstrained Funding
Year Budget Backlog PCI
2024 $14,903,943 $16,805,379 81
2025 $14,903,943 $14,364,805 83
2026 $14,903,943 $8,367,168 84
2027 $14,903,943 $3,091,444 86
2028 $14,903,943 $1,090,991 87

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 98.5% (Table 13) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 13. Scenario 4. Unconstrained Funding - 2028 Condition Category Summary

Scenario 4.

Unconstrained
Funding
% Change
at the end
of 5 years
% 'Good' in 5 years 98.5 27.0
% 'Fair' in 5 years 0.9 -22.1
% 'Poor' in 5 years 0.4 -5.0
% 'Very Poor' in 5 years 0.2 0.1

Figure 15 is a projected PCI map for 2028 if the “Unconstrained Funding” scenario is implemented.

Figure 15. Scenario 4. Unconstrained Funding Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 5 – Constant Deferred Maintenance
Figure 16, Table 14, represents the costs and impacts of implementing a Constant Deferred Maintenance scenario. Implementing this scenario would cost approximately $17.2 million annually or about $35.8 million by the end of five years. Results show an increase in the overall network PCI to 78, while the backlog would remain constant at $31.7M by the end of 2028.

Figure 16. Scenario 5. Constant Deferred Maintenance and Backlog

Table 14. Scenario 5. Constant Deferred Maintenance Summary Scenario 5. Constant Deferred Maintenance
Year Budget Backlog PCI
2024 $0 $31,709,065 77
2025 $9,951,000 $31,709,307 78
2026 $6,240,000 $31,709,515 78
2027 $9,191,700 $31,709,068 78
2028 $10,372,000 $31,709,185 78

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 77.8% (Table 15) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 15. Scenario 5. Constant Deferred Maintenance - 2028 Condition Category Summary

Scenario 5.

Constant
Deferred
Maintenance
% Change
at the end
of 5 years
% 'Good' in 5 years 77.8 6.3
% 'Fair' in 5 years 13.8 -9.2
% 'Poor' in 5 years 7.6 2.2
% 'Very Poor' in 5 years 0.8 0.7

Figure 17 is a projected PCI map 2028 if the “Constant Deferred Maintenance” scenario is implemented.

Figure 17. Scenario 5. Constant Deferred Maintenance PCI Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24 Scenario 6 – No Funding
Figure 18, Table 16, represents the costs and impacts of implementing an unfunded scenario. Implementing this scenario would decrease the overall network PCI to 70, while the backlog would increase from $31.7 million to about $60.2 million by the end of 2028.

Figure 18. Scenario 6. No Funding PCI and Backlog

Table 16. Scenario 6. No Funding Summary
Scenario 6. No Funding
Year Budget Backlog PCI
2024 $0 $31,709,065 77
2025 $0 $41,660,067 76
2026 $0 $44,901,550 74
2027 $0 $52,793,682 72
2028 $0 $60,156,996 70

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Pavement Management Technical Assistance (P-TAP) Round 24 Approximately 60.2% (Table 17) of City streets will have a PCI equal to or greater than 70 PCI at the end of 2028 (Condition Category I).

Table 17. Scenario 6. No Funding - 2028 Condition Category Summary

Scenario 6.

No Funding
% Change
at the end
of 5 years
% 'Good' in 5 years 60.2 -11.3
% 'Fair' in 5 years 23.2 0.2
% 'Poor' in 5 years 15.3 9.9
% 'Very Poor' in 5 years 1.3 1.2

Figure 19 is a projected PCI map for 2028 if the “No Funding” scenario is implemented.

Figure 19. Scenario 6. No Funding PCI Map - 2028 Condition Category Summary

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Pavement Management Technical Assistance (P-TAP) Round 24

CONCLUSIONS
The City of Pleasanton currently has 209.34 centerline miles of paved roads or 507.51 lane miles. This asset comprises approximately 46.2 million square feet of pavement and is worth roughly $306 million to replace. After updating the City’s pavement management system with inspections and recent maintenance and rehabilitation treatments, the Ci ty’s overall network condition is 77 PCI.

Approximately 71.5% of the City’s road network has a PCI of 70 or better. The City’s current backlog is about $31.7 million.

The first option the City should consider is implem enting the “Unconstrained Funding Scenario.” This scenario requires an average budget of $14.9 million annually or $74.5 million for five years. The effects of this budget increase the network PCI to 87 ( Figure 20), while the backlog decreases to $1.1 million (Figure 21) at the end of five years. 98.5% of City streets will have a PCI of 70 and above (Table 18).

The second option is implementing the “Plus 5 PCI Increase Scenario.” Results show that the network increased to 82 in five years (Figure 20). This budget would cost $10.5 million annually or $52.7 million over five years. The backlog decreases to $20.4 million (Figure 21). This action will result in 88.9% of city streets having a PCI of 70 and above (Table 18).

The third option is implementing the “Constant De ferred Maintenance Scenario.” Results from this scenario show that the overall network PCI increases to 78 ( Figure 20 ) while the backlog remains constant at $31.7 million ( Figure 21). This scenario would cost $7. 2 million annually or $35.8 million for five years. Approximately 77.8% of the City’s pavement will have a 70 or better (Table 18).

The fourth option is using the “Constant PCI Scenario.” This scenario averages $6.9 million annually or $34.7 million over five years. Results show that the network remains constant at 77 PCI ( Figure 20).

The backlog for this scenario increases to $36.1 million ( Figure 21). 75.2% of City streets will have a PCI of 70 or better (Table 18).

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Pavement Management Technical Assistance (P-TAP) Round 24 The fifth option is implementing the “Current Budget Scenario.” Results from this scenario show that the overall network PCI decreases to 75 at the end of five years (Figure 20) while the backlog increases to about $46.7 million (Figure 21). This scenario would cost $4.1 million annually or $20.5 million for five years. Approximately 71.2% of the City’s pavement will have a 70 or better (Table 18).

The sixth and least recommended action compared to the other options evaluated is the “No Funding scenario.” This iteration does not use any funds to maintain or rehabilitate pavements. Implementing this scenario will result in a PCI drop to 70 ( Figure 20) and an increase in th e backlog to $60.2 million (Figure 21). Approximately 60.2% of City streets will have a PCI of 70 and above (Table 18).

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Pavement Management Technical Assistance (P-TAP) Round 24 Figure 20. 5-Year Scenario PCI Summary

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Pavement Management Technical Assistance (P-TAP) Round 24

Figure 21. 5-Year Scenario Backlog Summary

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Pavement Management Technical Assistance (P-TAP) Round 24

Table 18. Scenario Summary PCI Conditions at the end of 2028

Scenario 1.

Current
Budget
Scenario 2.

Constant
PCI
Scenario 3.

Plus 5 PCI
Increase
Scenario 4.

Unconstrained
Funding
Scenario 5.

Constant
Deferred
Maintenance
Scenario 6.

No Funding
% 'Good' in 5 years 71.2 76.9 90.2 98.5 77.8 60.2
% 'Fair' in 5 years 16.3 12.8 3.5 0.9 13.8 23.2
% 'Poor' in 5 years 11.3 9.4 5.4 0.4 7.6 15.3
% 'Very Poor' in 5
years 1.2 0.9 0.9 0.2 0.8 1.3

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Item #15.a

CITY COUNCIL AGENDA REPORT

March 19, 2024
Finance

TITLE: RECEIVE A PRESENTATION ON SALES TAX AND FINANCIAL FORECAST

ASSUMPTIONS AND PROVIDE DIRECTION REGARDING PROPOSED

REDUCTIONS TO DISCRETIONARY FUNDING

SUMMARY
Over the past several months, staff has been working on the revenue measure feasibility project, for which the City is soliciting input from the community regarding the viability of a small, ½ cent sales tax increase. To provide additional information, staff will be joined for a presentation on sales tax by auditing, operations, and revenue solutions firm HdL Companies to provide an overview of taxable and non-taxable items, revenues generated from different sales tax categories, and per capita sales tax trends. In addition, staff will present the assumptions that were used to develop the General Fund long-term forecast and discuss alternative forecast scenarios. To plan ahead for the Fiscal Year 2024/25 mid-term budget update, staff will solicit direction regarding proposed reductions to certain/timely discretionary funding as part of a cost containment strategy.

RECOMMENDATION
• Receive a presentation on sales tax and financial forecast assumptions. • Receive direction regarding proposed reductions to discretionary funding.

BACKGROUND
At its March 21, 2023, meeting, the City Council directed staff to begin exploring viable revenue options to sustain vital City services and maintain community infrastructure, as well as ensure that resources are available to keep pace with the service needs expected by the community in future years.

Delayed development activity, the decline in sales activities at the Stoneridge Shopping Center, and increases in insurance, pension, personnel, and contract service costs, as well as mandates from the State, have all contributed to the City’s current financial challenges. The financial impacts of the pandemic exacerbated the situation, as American Rescue Plan Act (ARPA) stimulus funds are no longer available for the City after Fiscal Year 2022/23, and now inflation coupled with reduced hotel tax revenue puts further pressure on the General Fund budget. At the same time, many City infrastructure assets such as fire stations and park systems that were constructed or renovated during a significant growth period in the 1980s and 1990s are aging and in need of reinvestment to remain fully operational.

The City has been prudent in managing its finances. However, as the City continues to transition from a growing to mature community, double-digit increases in property tax and sales tax are no longer being realized. The City is always actively seeking outside funding

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sources such as grant funds to support services and programs, although grant funds are restricted for specific purposes. Over the years the City Council has implemented a number of cost-saving measures to improve operational efficiency and reduce costs, including merging departments and operations, offering less generous pension and retiree medical benefits, implementing energy and water efficiency projects, and establishing a pension trust to pay down the City's unfunded liability. Like other communities, the City has also deferred infrastructure repair and replacement to balance the General Fund operating budget and support the delivery of services. Limited funding for infrastructure upkeep has resulted in significant deferred maintenance over time. Overall, the City needs to expand and/or identify new revenue sources to keep pace with expense growth while also continuing to reduce and manage expenses to address the issue.

At its August 15, 2023, meeting, the City Council received an overview of community needs, potential revenue options, and the process and timeline for election-based ballot measure development. The City Council provided feedback and authorized staff to conduct a public opinion poll to seek input from the community regarding Pleasanton’s service priorities and identify potential revenue options. At its December 5, 2023, meeting, the City Council received the polling results summarized below.
• Pleasanton voters continue to be positive about City services and City government. • Voters prioritize basic City services such as 9-1-1 emergency response, police, fire, street maintenance, infrastructure maintenance, and parks. • Sales tax and hotel tax revenue measures are potentially viable; however, more education and community outreach is necessary to help the community understand the City’s funding needs.

Based on the community’s response, the City Council directed staff to launch a comprehensive outreach plan to engage, inform, and listen to input from residents and stakeholders on City needs and a proposed plan to meet those needs. If there is support from the community for a revenue measure, the intent is to place a ½ cent sales tax measure on the ballot for the November 5, 2024, General Election.

While staff is working with the community to assess the viability of a sales tax measure, the City is also developing additional cost containment strategies. The General Fund forecast scenarios that are discussed below will help the community better understand the assumptions that were used to develop the long-term projection. The timeline for cost reduction will provide a roadmap for cost containment and inform the community about potential service impacts if new revenue sources are not identified.

DISCUSSION
Sales Tax
The City’s current sales tax rate is 10.25% and the prospective rate increase is 0.5%, which would bring Pleasanton’s rate to 10.75% if approved by the voters. In this scenario, this additional sales tax would add $5.00 on $1,000 in taxable purchases. The sales tax rate for six cities in Alameda County is already at 10.75%. Notably, prescription medicine and devices and groceries are exempt from sales tax. Rent, mortgage payments, utilities, and other items such as goods transmitted electronically (music, books, movies, computer software, etc.) are also exempt from sales tax. The cost for individuals and families will vary depending on the

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taxable purchases made by them.

A ½ cent sales tax is estimated to generate $10.0 million annually. All funds would be locally controlled and would stay in Pleasanton; the state would not be able to take this funding away from the City. A ½ cent sales tax increase would benefit both residents and businesses by sustaining Pleasanton’s high quality of life as funds would be used to maintain essential City services and partly fund infrastructure improvements as described below. • Public Safety: Protect 911 rapid-response, fire, emergency medical, and police services; maintain crime prevention, disaster preparedness, safe traffic flow, pedestrian safety, etc.; keep existing police and fire stations in good condition. • Road Repair & Maintenance: Repair potholes; maintain local streets, roads, sidewalks, crosswalks, pedestrian pathways, and trails.
• Stormwater Systems: Maintain stormwater drainage systems to prevent flooding and protect water quality.
• Quality Parks and Open Spaces: Maintain safe, clean, high quality parks, play fields, and open spaces.
• Economic Vitality: Support small businesses; attract new businesses, jobs, and economic activity.
• Library, Youth & Senior Programs, Recreation and Other City Services: Maintain library services and hours, programs that help youth and senior citizens, recreation and other general city services

Water infrastructure and improvements are not included among these services as they are funded by the users of the water enterprise fund.

The City evaluated various funding options to generate additional revenues to support both City services and infrastructure with the least impact possible to Pleasanton residents. Sales tax is not just paid by residents; it is also paid by businesses and visitors who make purchases, thus the funding is collected from everyone who benefits from the City's activities.

There has been input that consumers may change their shopping patterns due to an increase in sales tax. Based on its years of experience, HdL confirms that years of sales tax data tied to local transactions and use taxes across California demonstrates there is no exodus by local residents making shopping, dining or buying decisions in neighboring jurisdictions that have lower tax rates. Importantly, when residents shop locally they support directly businesses and through sales taxes support valued City programs including public safety, library services, youth and senior services, etc.

Long Range Financial Forecast
As part of the biennial budget development process, staff evaluates the City’s overall financial health by 1) examining actual revenues and expenditures from recent fiscal years; 2) projecting the current fiscal year’s numbers based on year-to-date actuals and prior year trends; and 3) forecasting revenues and expenditures for several years beyond the two-year period. Forecasting is a critical component of any prudent financial management practice, as it provides insight into the organization’s financial state in the near future and allows for proactive planning and development of relevant fiscal strategies to address potential issues on the horizon.

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During the Council budget workshops in April and May 2023, in addition to information on the proposed FY 2023/24 and 2024/25 operating and capital budget and the four-year capital improvement program, the City Council received an update on the City’s projected financial health beyond FY 2024/25. At that time, staff developed and presented two long-range financial forecast scenarios, normal and recession, and both scenarios showed the City facing an ongoing, structural budget gap. In this forecasting, various assumptions must be made in developing any forecast model using the best available information that is neither overly optimistic or pessimistic, and updated as new information becomes available. Below is a summary of assumptions utilized in projecting numbers starting in FY 2025/26 for the baseline scenario.

Baseline Scenario
In the baseline scenario, revenue assumptions include property tax - the City’s largest revenue source - growing at 3.5 percent annually, sales tax - the second largest revenue source - growing at 2.0 percent annually, Interfund Charges and Recreation Fees growing at

3.0 percent annually, and all other revenues growing at 2.0 percent annually.

Expenditure assumptions include personnel costs (the City’s largest expenditure category) growing by approximately 3.3 percent annually. Salary and general benefit cost categories are assumed to increase at 3.0 percent, but the overall increase is greater mostly due to growing pension liabilities through FY 2030/31 based on the projection provided by CalPERS. Non- personnel costs are collectively projected to grow by approximately 2.7 percent annually.

Additionally, an annual contribution to capital funds ranges from $3.0 million in FY 2025/26 to $4.5 million in FY 2032/33. An average annual contribution of approximately $5.9 million, in addition to the baseline capital contribution, is also included in the forecast model to fund deferred infrastructure maintenance costs. Combined, these contributions represent a small fraction of the overall deferred infrastructure maintenance needs based on staff’s preliminary infrastructure assessment study from March 2023.

Based on these assumptions, the baseline scenario projects an average annual deficit of approximately $13.8 million. Staff is evaluating shortfall reduction measures to reduce the deficit. A first option is to utilize the Section 115 Pension Trust the City established in June 2018. With a balance of $46.3 million as of June 2023, the current proposed plan includes utilizing approximately $6.6 million annually from FY 2025/26 to FY 2031/32. Funds will not be available after FY 2031/32. Staff recently hired a pension actuarial consultant to determine how to best utilize the trust over the next several years, and based on this study’s outcome staff will adjust the forecast accordingly. A second option involves a series of non-personnel budget reductions. Based on preliminary analysis, reductions equivalent to approximately $2.3 million have been included in the forecast. After accounting for these two deficit reduction measures, the baseline forecast scenario shows an average annual deficit of approximately $5.7 million.

Economic Slowdown/Recession Scenario
In the economic slowdown/recession scenario, revenue assumptions are: growth in property tax revenue is projected to moderate to 3.0 percent in FY 2025/26 and 2.0 percent in FY 2026/27 before rebounding back up to 3.0 percent in FY 2027/28, 3.2 percent in FY 2028/29, and 3.5 percent thereafter starting in FY 2029/30; sales tax is projected to decrease by 5.0 percent in FY 2025/26 and decrease by an additional 2.0 percent in FY 2026/27 before growing again at 2.0 percent annually starting in FY 2027/28. Other taxes, including Transient

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Occupancy Tax and Business License Tax, are projected to decrease by 0.7 percent in FY 2025/26 and by an additional 1.0 percent in FY 2026/27 before rebounding to grow at 2.0 percent annually starting in FY 2028/29. Recreation fees are not projected to experience any growth in FY 2025/26 and FY 2026/27 before growing again at 3.0 percent annually starting in FY 2027/28. Other revenues are projected to grow at 2.0 percent annually.

Expenditure assumptions for this scenario are the same as the baseline scenario to effectively compare the level of change in the fiscal gap when the City’s major revenues are impacted from an economic slowdown/recession.

Under this scenario, the annual deficit on average grows to approximately $22.8 million. With previously mentioned shortfall reduction measures (i.e., utilizing the Section 115 Pension Trust and reducing non-personnel budget), the average annual deficit goes down to $14.7 million. It should be noted that reduced revenues estimated in this scenario only assumes a mild economic downturn or short recession; while it is not likely that any near future economic downturn or recession will be as severe as during the Great Recession, any type of economic downturn will have a major impact on the City’s primary revenues. During the Great Recession, the City’s property tax revenue decreased by as much as 5.0 percent and took five years to recover, finally returning to $50.4 million in FY 2013/14 after initially reaching that number in FY 2008/09. Sales tax took even longer - taking more than seven years to recover - returning to $22.4 million in FY 2014/15 after initially reaching $22.0 million in FY 2006/07 and its revenue decreasing as much as 27.0 percent during this seven-year period. The Great Recession officially lasted 18 months from December 2007 to June 2009, and the only other downturn in recent history was the COVID-19 Recession, which only lasted two months.

Unprecedented actions taken by Congress with a series of stimulus measures, combined with quantitative easing by the Federal Reserve, helped quell the recession quickly but also fueled economic growth. While most economists are not predicting a recession in the near term, it is highly likely that some type of economic downturn or even recession will occur during the forecasted period from FY 2025/26 to FY 2032/33.

Alternative Scenario 1: Property Tax Revenue
With the Tri-Valley's real estate market remaining strong, the City’s property tax revenue grew at a healthy pace in recent years: during the last three years, this revenue grew each year with annual growth ranging from 3.2 percent to 7.3 percent. Assuming this level of growth continuously is not realistic, especially with the supplemental property tax from real estate transactions expected to decrease as the region continues to deal with historically low inventory and decreasing affordability.

Compared to the baseline scenario in which a 3.5 percent annual growth is assumed, if a 4.0 percent annual growth is assumed, an additional $19.6 million in property tax revenue between FY 2025/26 and FY 2032/33, or an annual additional revenue of $2.5 million, is projected. Using 4.5 percent, these amounts go up to $39.7 million over 8 years, or $5.0 million per year.

Alternative Scenario 2: Labor Costs and Unfunded Pension Liabilities As mentioned above in the baseline scenario, personnel costs (excluding pension costs) are assumed to grow at 3.0 percent annually, but when factoring in pension costs and using projections from CalPERS, the overall personnel budget numbers are projected to grow by an average of 3.3 percent annually. However, 3.3 percent may be slightly lower than actual

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growth in the near term due to several factors: firstly, inflation was one of the main factors in recent labor negotiations; and secondly, the City’s unfunded pension liabilities are dependent on CalPERS’ investment performance compared to the discount rate that it sets. If the CalPERS annual rate of return is lower than the established discount rate - which is at 6.8 percent currently - additional contributions are required. For example, for FY 2022/23, CalPERS’ investment return was 6.1 percent - 0.7 percent lower than its 6.8 percent target - so the City’s contribution numbers are expected to increase in future years.

Compared to the baseline scenario, where an average annual growth of 3.3 percent is projected, if an additional 0.5 percent is assumed, that will increase overall personnel costs by $22.1 million from FY 2025/26 to FY 2032/22, or $2.8 million annually. If an additional 1.0 percent is assumed, costs are $46.0 million over eight years or $5.7 million annually. With staffing costs accounting for more than 70.0 percent of the General Fund’s total expenditure budget, excluding transfers, even a slight increase in staffing cost can have a major impact.

Proposed Reductions to Discretionary Funding
The General Fund currently supports a number of community programs and organizations. The support is directed toward highly valued community partners such as the Pleasanton Unified School District (PUSD), various non-profit organizations, business groups, and community groups.

These investments are estimated to be approximately $2.5 million annually. The most significant support ($1.8 million) flows toward schools and students through the School Resource Officer (SRO), Crossing Guard, and Tobacco Education Programs, and other programs such as after- school programs and notable time from the Alternative Response Unit (ARU) Program.

The Memorandum of Understanding (MOU) for the SRO Program and the contract for the Crossing Guard Program will expire in June 2024 and July 2024. The City and PUSD will be discussing and re-negotiating these documents over the coming months. Currently, the City covers 100% of the costs for both the SRO and Crossing Guard programs; however, given the City’s financial challenges, staff recommends that both agencies share the costs for the SRO Program, Crossing Guard Program, and Tobacco Education Program starting in FY 2024/25. Staff is not recommending any change in the funding for the ARU Program at this time.

The proposals presented below are specific only to cost-sharing for direct costs for the SRO, Cross Guard and Tobacco Education Programs, and so do not include costs such as for the supervisor that oversees the SROs and/or other indirect overhead costs. With MOU and contract discussions coming quickly, staff is seeking Council input. Staff recommends Proposal #1, in which PUSD will start paying 25.0 percent of the costs starting in FY 2024/25 (year 1). The cost sharing percentage will increase by 10.0 percent in years 2 and 3, and a 5.0 percent increase in year 4 to get to 50.0 percent cost sharing for the SRO, Crossing Guard, and Tobacco Education programs. Understanding that both the City and PUSD are experiencing financial challenges as this time, an alternate proposal noted as Proposal #2 is to have PUSD share 25.0 percent of the costs starting in fiscal year 2024/25 (year 1), and the cost sharing percentage will increase by 5.0 percent every year for five years; in year 6, the cost sharing percentage will be at 50.0 percent. The estimated costs presented below reflect FY 2023/24 budgeted expenditures and costs are expected to increase over time.

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Following direction from the City Council, staff will negotiate with PUSD regarding the proposed changes. Other discretionary spending will continue to be reviewed in the coming months as part of the mid-term budget process.

General Fund Reserves/Fund Balances
The City has five categories of fund balance as described below. The total of the amounts in the last three categories (where the only constraint on spending, if any, is imposed by the government itself) is termed unrestricted fund balance.

Nonspendable – amounts that cannot be spent due to not being in a spendable form (long- term assets, prepaid expenses, inventory) or are legally or contractually required to be maintained intact
Restricted – amounts constrained for a specific purpose by external parties, constitutional provision, or enabling legislation
Committed – amounts constrained for a specific purpose by the governmental entity and designed as such by City Council, which is the highest level of decision-making authority Assigned – amounts set aside for a specific purpose by a governing board or official that has been delegated the authority to assign amounts
Unassigned – portion of a fund that is not classified as nonspendable, restricted, committed, or assigned.

Based on the foundation of sound financial management, the City set aside reserves for economic uncertainties and emergencies. The City Council established a 20.0 percent reserve target for the General Fund with a reserve range of 16.7 percent to 25.0 percent, excluding committed reserves and the Rainy Day Reserve. The unassigned fund balance for the General Fund is projected at $29.6 million at the end of Fiscal Year 2023/24, representing about 20.0 percent of the General Fund operating expenditures. The Government Finance Officers Association (GFOA) recommends a minimum reserve of 16.7 percent or two months of operating expenditures.

The City’s nonspendable and restricted reserves are projected at $0.5 million and $18.7

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million, respectively, and are associated with loans made to other funds and funds set aside in a pension trust. Funds in the pension trust can only be used to pay for pension contributions.

The City’s various committed reserves are projected at $1.9 million (Strategic Plan Implementation, Alternate Response Unit, Mobile Library Vehicle, etc.). The Rainy Day Reserve (a General Fund sub-fund) is projected at $4.6 million. Note that these reserves are earmarked for programs and capital projects and funds will be spent down over the coming few years. When accounting for these reserves, the City’s total unrestricted reserve is $36.1 million, or 24.0 percent of the FY 2023/24 General Fund operating expenditures.

Overall, the City’s reserve is at a sufficient level and meets the GFOA recommendation.

However, if the City needs to draw into reserve to help balance the budget in future years, the reserve would be depleted over time, result in audit findings, and would leave the City in a financially vulnerable position.

Timeline for Implementation of Cost Reduction Strategies While staff is working with the community to assess revenue measure feasibility, the City is taking steps to reduce costs and plan toward developing a budget stabilization plan that takes into consideration both cost containment and revenue enhancement strategies. Cost reductions will have an impact on services and programs, especially if reductions include staff positions. If the revenue measure is not feasible, staff will make recommendations and solicit the City Council's direction on cost and service reductions.

Fiscal Year 2024/25 Budget
• City staff are now identifying non-personnel cost reductions to be incorporated into the FY 2024/25 mid-term budget update. Non-personnel costs include expenditures such as contract services, equipment, and operating supplies and materials. The mid-term update will be presented to the City Council in May and June 2024. • Exploration of freezing some positions, if necessary.

Fiscal Years 2025/26 and 2026/27 Budget
• If the spring poll shows the revenue measure is not feasible or if the measure is not approved by voters on November 5, 2024, staff will develop strategies to explore further non-personnel and personnel budget reductions as well as evaluation of service impacts (July 2024-March 2025).
• Consideration of freezing certain vacant positions.
• Evaluation of the utilization of pension trust funds to reduce budget deficit; the overall funded status for the City’s pension plans will be lower as funds are drawn down. • Proposed cost reductions and service cuts will be presented to by early April 2025. • Proposed cost reductions and service cuts will be incorporated into the FY 2025/26 and FY 2026/27 budget after receiving direction from the City Council. The biennial budget is anticipated to be adopted by the Council in June 2025.

Staff will continue to explore additional funding opportunities such as grant funds to support priority community projects and initiatives to lower budget impact on the General Fund.

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However, these funding sources are restricted and are one-time in nature. As such, these funding sources will not resolve the ongoing funding gap. Staff will also continue to evaluate service delivery models to improve operational efficiency, continuing to reduce costs (contracting certain services, regional collaboration, partnership with nonprofits/other agencies/private organizations, etc.).

EQUITY AND SUSTAINABILITY
This item is an informational report to solicit direction from the City Council to inform the development of the FY 2024/25 mid-term budget.

OUTREACH
No outreach was conducted specifically for this item.

STRATEGIC PLAN ALIGNMENT
This item aligns with the ONE Pleasanton strategic plan goal of Funding Our Future that supports financial health and sound fiscal policies.

FISCAL IMPACT
This item is informational at this stage. Any direction and feedback received at this meeting will be incorporated into the mid-term budget update process and presented during the budget workshop in May 2024.

Prepared by: Submitted by: Approved by:

Susan Hsieh, Director of
Finance
Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

None

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Item #15.b

CITY COUNCIL AGENDA REPORT

March 19, 2024
Public Works - Engineering Division

TITLE: PROVIDE DIRECTION REGARDING STAFF RECOMMENDATIONS FOR MID-

TERM BUDGET REALLOCATION OF EXISTING NON-RESTRICTED FUNDS

WITHIN THE CAPITAL IMPROVEMENT PROGRAM TO FUND RECENTLY

IDENTIFIED SAFETY-RELATED PROJECTS

SUMMARY
The Mid-Term Capital Budget for FY 2024/25 is being revised to add critical projects that address safety issues, including issues that arose during the 2023/24 winter storm impacts and the West Las Positas Boulevard reconstruction. The existing unrestricted CIP reserves and the current two-year budget cannot absorb the additional costs to make these improvements.

Therefore, at this time and based on new information, staff is making a recommendation to delete, defer, or partially defund approximately $18.9 million of existing non-restricted funds from CIP projects to address these needs and create a balanced Mid-Term Capital Budget.

The Mid-Term operating and capital budgets will be presented to the City Council for review and approval in May and June 2024.

RECOMMENDATION
Review staff recommendations regarding CIP projects that could be deleted, deferred, or partially defunded and provide direction toward development of the mid-term capital budget and updates to the four-year capital improvement program.

BACKGROUND
On March 21, 2023, the City Council provided direction to modify the existing CIP carry forward process and perform detailed reviews of all existing general fund projects within the CIP to reprioritize projects. As a result, approximately $8 million in identified projects were deleted or deferred. The reprioritized funding was used to develop the four-year CIP for FY 2023/34-FY 2026/27 and was approved by the City Council on June 6, 2023. Through the mid- term process, the second year of the funded program, FY 2024/25, is being reviewed for any necessary adjustments and to add projects that are necessary to address more recently identified safety-related issues.

Severe winter storms from December 2022-March 2023 caused damage throughout the city.

To address the issues, projects were programmed in the current CIP, but the funding is insufficient for all necessary permanent repairs. The existing infrastructure was cleaned, and temporary repairs were completed to restore the storm drain systems to service before this winter's storm season. The City’s application for federal assistance was approved, and the City is in the process of obtaining project approvals and reimbursements from FEMA. During this process, the extent of FEMA's coverage is determined. Currently, it has been determined that some of the damage and improvements will not be eligible for federal assistance. For the FEMA projects determined to be eligible for FEMA assistance, the City will be responsible for approximately 25 percent of the total project costs. The City is also applying for competitive

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mitigation grants through a statewide program for projects not covered by FEMA; however, preliminary analysis of the City’s projects indicates the projects do not score sufficiently well based on several factors, including the cost-benefit ratios as compared to other emergencies within the state.

DISCUSSION
The cause of the flooding damages from the 2023/2024 winter storms was investigated, and analysis is being completed to identify long-term solutions to reduce and prevent future flooding and damage. The preliminary analysis has identified that there are necessary improvements to the storm drain systems on Puri Court, and Sycamore Road/Sunol Boulevard to avoid additional damage from future storm events, and that these issues will not be covered under the FEMA program. The estimated costs for the necessary stormwater system improvements, including the City’s portion of the FEMA projects, range between $9.5 million- $16 million.

Additionally, the design of 35 percent plans for the West Las Positas Boulevard Multimodal Reconstruction project – which will address several distressed roadway segments between Hopyard Road and Stoneridge Drive – has been completed. Cost estimates just for the Hopyard Road and Stoneridge Drive segment range from $25.9 million-$38.6 million, which exceeds the available funding of approximately $23.3 million. Staff is preparing a more detailed update on the West Las Positas Boulevard project to present to Council in the coming months.

To fund the projects that impact safety, staff is presenting a recommendation for re- prioritization of the mid-term capital budget based on identified non-restricted funds that can be deleted, deferred, or partially defunded. Non-restricted funds are directly or indirectly from the General Fund and include funds 201 (Miscellaneous CIP General), 211 (Streets CIP General), 221 (Parks CIP General) and 441 (Storm Drain Replacement/Renovation). It should be noted that Fund 441, Storm Drain Replacement/Renovation Fund, is an Enterprise Fund and should not be normally funded by the General Fund. However, for all intents and purposes, the City's stormwater system needs are subsidized by the General Fund because the funds collected to meet these needs are otherwise woefully inadequate.

Restricted funds are not being reviewed at this time as the funding generally cannot be utilized toward the identified projects due to the specified use of the funds. Restricted funds include Park Development Impact fees (funding Lions Wayside Park), Facility Development Impact fees (funding Police Department Training Facility Repairs), enterprise funds (water, sewer, golf course), Gas Tax, transportation measure funding (Measure BB, VRF) and restricted reserve funds.

Staff has developed a list of projects ranked by impacts (Attachment 1) and recommends deleting, deferring, or partially defunding all non-restricted fund projects, except for those projects that address life and safety issues. As proposed, the recommendation provides approximately $18.9 million to be allocated to the identified storm drain system and West Las Positas Boulevard projects.

Safety Projects
The following non-restricted general fund projects are recommended to remain on the City's list and carry forward (noted on page 2 of Attachment 1); the list excludes projects currently under contract and reserves that are also to be carried forward:

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1. OSC (3333 Busch Road, Corporation Yard) Fire Alarm and Notification System – The existing fire alarm system is not operational and is not code-compliant, and parts are not available to repair the system

2. Police Department Training Facility - The existing shooting range is closed until upgrades are completed. The majority of the funding is from Facility Impact Fees (not General Fund)

3. ADA Transition Plan – Update the ADA transition plan as required to be eligible for Federal and State funding

4. Valley Avenue Soundwall Replacement – Project to install stabilization posts to prevent future loss of wall panels

5. Sycamore Road/Sunol Boulevard Storm Drain Improvements – Install additional storm drain infrastructure to address future flooding

6. 2023 Storm Repair & Replacement (Puri Court Storm Drain Improvements) – Install additional storm drain infrastructure to address future flooding

7. West Las Positas Boulevard Multimodal Reconstruction – Reconstruct the failing road section between Hopyard Road and Stoneridge Drive, implement the multi-modal plan, and meet/retain the local match to grant funding

8. Design and Construct Storm Drain Improvements (FEMA) – Provide the local funding (City) portion for the FEMA-funded storm damage improvement projects.

Underway Projects
Projects recommended to be partially defundedwill have funding for a reduced scope of work and/or that will complete work that is already in process for construction this year and deemed essential to continue (noted on page 1 of Attachment 1):

9. Annual Court Resurfacing – Install a protective coating to extend the life of the courts at the Tennis Community Park and Fairlands Tennis Courts

10. 2021/22 Fence Installation/Repair – Repairs to storm-damaged fencing/replacement at Augustin Bernal Staging Area, and painting of Alviso Adobe fencing

11. Downtown Beautification CIP Reserve – New streetlight holiday ornaments, replenished color bowls, downtown street tree replacements, etc.

12. City Street Median Island Repair & Replacement – Replacement of failing irrigation lines and dead plant material. Funding was originally from the Repair and Replacement program

13. Design Phase 1 of Bernal Community Farm – Minor improvements to support the master gardeners and City compost center

14. OSC Generator Replacement – Under construction and necessary cost to complete the project

15. 2023 Installation of Trash Capture Devices – Installation of devices as required by the Municipal Regional Stormwater NPDES permit

16. Asset Management Plan – Develop the framework for the asset management plan to allow staff to work on the development and collection of data for the implementation phase of the program.

Projects currently with or soon to have construction contracts will be carried forward, as noted on page 2 of Attachment #1.

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Deferred Projects
Staff's recommendation results in deferring/pausing several CIP projectsto provide the necessary funding to address the noted life and safety projects. These deferred projects (noted on pages 1-2 of Attachment 1) may stay in the 4-year CIP depending on funding availability. If these projects remain in the CIP, no funding will be expended to advance these projects until the City Council's subsequent review as part of the preparation of the next 2-year CIP budget for FY 2025/26-FY 2026/27. These projects include:
o Westbound Bernal Avenue at First Street/Sunol Boulevard Intersection Improvements o Annual Median Landscape Renovations
o Annual Park & Trail Pathway Resurfacing
o Streetlight LED Conversion
o Annual (2024) Installation of Trash Capture Devices
o Citywide Access Control System (key card access for certain City facilities) o Design of Aquatic Center 50-Meter Pool Deck
o Design of the Civic Center Roofing & HVAC Repair
o Design of City Administration Building
o Century House Facility Renovation (Partial funding to be reserved for stabilization of the building, including a roofing and gutter project to be completed in the coming months) o Climate Action Plan Implementation (Partial funding to be reserved for planning phase) o Ken Mercer Skatepark ($419,905 expended on design, which will remain intact and ready when the project can move forward)

Deleted Projects
Staff's recommendation results in deleting/canceling CIP projects to provide the necessary funding to address the noted life and safety projects. These projects were identified as not essential at this time or can be completed through expansion of future programmed projects.

The deleted projects (noted on pages 1 of Attachment 1) will be removed from the 4-year CIP.

These projects include:
o New Community Park: Site Acquisition Reserve
o Bernal Property Trail System Reserve
o Annual (2024) Playground Renovations
o Design of Police Department Secured Police & Staff Vehicular Parking o Muirwood Community Park Court Resurfacing

With this new information highlighting the anticipated costs to address the storm drain improvements ($9.5 million-$16 million) and West Las Positas Boulevard projects (shortfall of $2.6 million-$15.3 million), staff's recommendation provides a plan for the City to move forward on a list of projects, reduce the scope and spending on some projects, and defer/pause on some projects. This recommendation intends to manage the City's risk while still delivering important safety-related projects to the community. Staff will continue to look for additional funding through grants and other sources toward creating opportunities to accomplish the deferred/paused projects.

EQUITY AND SUSTAINABILITY

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Not applicable, as this item is a routine matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton strategic plan goals of Funding Our Future, Strategy 2 - Identify expanded and new revenue to address significant infrastructure needs and Investing in Our Environment, Strategy 1 - Implement the Four Year Capital Improvement Program (CIP)

FISCAL IMPACT
The direction received from the City Council will be incorporated into developing proposed adjustments to the adopted FY 2024/25 capital budget that will be presented to the City Council for consideration in May. Projects identified and listed through this review will be delayed from further significant expenditures until the City Council has reviewed the mid-term operating and capital budgets.

Prepared by: Submitted by: Approved by:

Adam Nelkie, Acting
Director, Public Works
Adam Nelkie, Acting Director, Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. Project Review List

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Attachment 1
Fund Project Project
Tyler Munis
Available
Balances
as of 2-20-
2024
Adjusted
Available
Funding
Balance
Cumulative
Available
Funding
Recomm-
endation Notes
Projects Recommended to be Deleted
221 03728 New Community Park: Site Acquisition Reserve 207,447 207,447 207,447 Delete Funding targeted for the purchase of a home to complete Phase II of Rotary Park 221 04721 Bernal Property Trail System Reserve 150,703 150,703 358,150 Delete Set aside funding for the Marilyn Murphy Kane Trail maintenance and additional tree planting 221 24745 Annual Playground Renovations 300,000 300,000 658,150 Delete Delays the replacement cycle by one year (Val Vista Park Community scheduled location) 201 23479 Design of Police Department Secured Police &
Staff Vehicular Parking 100,000 100,000 758,150 Delete Installation of secured fencing around staff parking 221 23744 Muirwood Community Park Court Resurfacing 250,000 250,000 1,008,150 Delete Project already prioritized in Annual Court Resurfacing Project Underway Projects Recommended to be Partially Defunded and Carried Forward 211 20565 Nevada Street Improvements 100,455 100,455 1,108,604 Deferred Previously
Project previously deferred in March 2023, defunding the remaining balance that was preserved to cover the design work taking place at the time
201 17423 Design/Construct New Fire Station 3 965,219 815,249 1,923,853 Reduce Project accepted by City Council. Funding reserved for scheduled new fencing/gate and storage room conversion. Remaining balance was scheduled to be used toward Fire Station 2 221 24744 Annual Court Resurfacing 200,000 100,000 2,023,853 Reduce Retain $100,000 for court maintenance work (crack sealing and coatings) at Tennis Community Park and Fairlands tennis courts. The other scheduled courts will be defered to future years. 201 21429 2021/22 Fence Installation/Repair 194,954 100,000 2,123,853 Reduce Retain a reserve $94,954 for replacement of City fences; damaged fencing from 2023 storms has not started. Funding was to be used to replace existing fencing at Police Department and remaining will be used to paint fences at Alviso Adobe and replacement of fencing at Augustin Bernal staging area 201 18440 Downtown Beautification CIP Reserve 450,275 250,000 2,373,853 Reduce Retain a $200,275 reserve for downtown tree replacements, street light holiday decorations, newsracks replacement, color bowls, etc.
211 18554 City Street Median Island R&R 963,668 350,000 2,723,853 Reduce Funding from Repair and Replacement program to perform median island replacements. Critical funding for repairs to median irrigation and dead plan replacement 201 20772 Design Phase 1 of Bernal Community Farm 307,772 250,000 2,973,853 Reduce Phase 0 work has been completed. Insufficient funding to start Phase 1 design. Retain $57,772 in support for minor improvements for the master gardeners and City compost center 201 23456 OSC Generator Replacement 374,136 200,000 3,173,853 Reduce Retain $174,136 for remaining anticipated expenditures and invoices for the PW generator replacement 441 23443 2023 Installation of Trash Capture Devices 300,000 275,000 3,448,853 Reduce Retain $25,000 for scheduled installation of trash capture screens that are damaged or missing as a requirement of the Municipal Regional Stormwater NPDES permit. Delays installation of future devices required by the permit
201 24460 Asset Management Plan 750,000 400,000 3,848,853 Reduce Design work has begun and the retained $350,000 will develop the framework for the asset management plan so staff can develop and collect data for the implementation phase of the program Projects Recommended to be Fully Defunded and Deferred
201 17556 Westbound Bernal Avenue at First Street/Sunol Boulevard Intersection Improvements 1,300,000 1,300,000 5,148,853 Defer Funding for landscaping and monument sign improvements. Due to potential future development, project is recommended to be deferred
221 23736 Annual Median Landscape Renovations 300,000 300,000 5,448,853 Defer Repair and Replacement program to perform median island plant and irrigation replacements 221 24748 Annual Park Trail & Pathway Resurfacing 350,000 350,000 5,798,853 Defer Design of the trails along the Arroyo de la Laguna and Sutter Gate Park have started 211 20466 Street Light LED Conversion 187,826 187,826 5,986,680 Defer Funding for downtown street light conversion testing of bulb/fixtures (in process) 441 24443 Annual Installation of Trash Capture Devices 150,000 150,000 6,136,680 Defer Funding for the design and installation of trash capture screens is a requirement for the NPDES regional permit. Locations have yet to be determined
201 22471 City-Wide Access Control System 250,000 250,000 6,386,680 Defer Insufficient funding for construction. System is obsolete and some buildings are not functional 2024 Capital Improvement Program Mid-Term Existing Project Review

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201 22781 Design of Aquatic Center 50-Meter Pool Deck 249,000 249,000 6,635,680 Defer Design not started; additional funding needed. 50-meter pool plaster is starting to fail and pool deck is failing with temporary repairs completed in 2023 and major pool equipment past replacement cycle 201 23492 Design of the Civic Center Roofing & HVAC
Repair 207,500 207,500 6,843,180 Defer Funding for the design of roof replacement for 157 Main Street to address the leaking roof 201 23494 Design of City Administration Building 249,000 249,000 7,092,180 Defer Funding for the design of the HVAC and roof replacement for 123 Main Street. The existing HVAC is no longer commercially available and requires custom parts to repair which can shut down the building. The roof is past the scheduled replacement schedule
211 17556 Westbound Bernal Avenue at First Street/Sunol Boulevard Intersection Improvements 1,120,776 1,120,776 8,212,956 Defer Funding for street and sidewalk improvements beyond TIF scope. Due to potential future development, project is recommended to be deferred. Sunol Boulevard will need pavement work following water projects
201 17753 Century House Facility Assessment 4,643,500 4,000,000 12,212,956 Defer $643,500 reserved for installation of roof and new gutters and work to stabilize the house 201 24461 Climate Action Plan Implementation 1,000,000 1,000,000 13,212,956 Defer Planning phase work for fleet needs at Public Works and Civic Center campuses 201 20774 Ken Mercer Skatepark 5,718,381 5,718,381 18,931,337 Defer Design completed; project currently out to bid but not yet awarded CIP Reserves Recommended to be Carried Foward
201 06418 CIPR - Capital Improvement Program Reserve 1,220,700 1,220,700 Reserve Reserve Fund utilized to address variability in project bids and emergency projects 221 01737 General Trail Improvement and Development 91,747 91,747 Reserve Reserve Fund utilized to address variability in project bids and emergency projects Safety Projects Recommended being Carrried Foward
201 23457 OSC Fire Alarm and Notification System 800,000 800,000 Carry Forward
Essential project to replace non-function and non-code compliant fire alarm system at 3333 Busch Road that parts are not available to repair
201 22482 Police Department Training Facility 31,305 31,305 Carry Forward Essential project to reopen police training facility. Majority of funding from Facility Impact Fees 201 16437 ADA Transition Plan 120,000 120,000 Carry Forward
Essential project to update the ADA Transition Plan, are required to be eligible for Federal and State funding
201 22416 2022 Soundwall Repair & Replacement 190,242 190,242 Carry Forward Funding to be used toward stabilization of Valley Avenue Sound Wall, CIP 18437 201 23416 2023 Soundwall Repair & Replacement 100,000 100,000 Carry Forward Funding to be used toward stabilization of Valley Avenue Sound Wall, CIP 18437 201 24416 Annual Soundwall Repair & Replacement 125,000 125,000 Carry Forward Funding to be used toward stabilization of Valley Avenue Sound Wall, CIP 18437 201 18437 Valley Ave Soundwall Replacement 987,140 987,140 Carry Forward
Essential project to install stabilization posts to support the existing wall between Hopyard Road and Santa Rita Road
211 11514 West Las Positas Boulevard Multimodal
Reconstruction 912,397 912,397 Carry
Forward
Essential project to reconstruct failed roadway between Hopyard Road and Stoneridge Drive and utilize grant funding for multimodal components
201 11514 West Las Positas Boulevard Multimodal
Reconstruction 2,500,000 2,500,000 Carry
Forward
Essential project to reconstruct failed roadway between Hopyard Road and Stoneridge Drive and utilize grant funding for multimodal components
441 23415 2023 Storm Repair & Replacement 305,678 305,678 Carry Forward Essential project to design the Puri Court storm drain improvements 441 22484 Design and Construct Storm Drain
Improvements 785,457 785,457 Carry
Forward Essential funding for local share of FEMA projects. 441 24415 Annual (2024) Storm Repair/Replacement 110,215 110,215 Carry Forward Funding is being utilized to pay for incoming invoices for Santos Ranch culvert repairs 441 24662 Sycamore Creek Storm Drain Improvements 200,000 200,000 Carry Forward Essential project to fund the scoping phase, including hydraulic analysis Restricted Reserves to be Carried Foward
211 98590 Use of Dublin Fwy Reimbursement 2,108,462 - Carry Forward
Funding received for the construction of various freeway interchanges on I-580 that the City advanced. El Charro & I-580 Interchange Improvements under design by City of Dublin. City has an obligation to cover improvements in the southwest quadrant
211 02523 Dougherty Valley Mitigation Reserve 377,694 - Carry Forward Traffic mitigation funding from developments in the City of Dublin Projects Under Construction to be Carried Foward

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201 06451 Landscape Median Construction & Renovation 7,092 Carry Forward Plants on order for installation spring/summer 2024 211 23555 Annual Neighborhood Traffic Calming 4,830 Carry Forward Project funding to be used toward work under bid in the resurfacing program 201 23493 Library Lighting Improvements 1,184,110 Carry Forward Awarded construction contract
201 22795 Pleasanton Cricket Pitch & Field 250,000 Carry Forward Construction completed; consideration of acceptance will be recommended to City Council in April 211 15525 Hopyard Road & Owens Drive Intersection
Improvements 908,396 Carry
Forward Project out to bid. Required project for JDEDZ 211 21596 JDEDZ - ROW & Misc. 6,111 Carry
Forward Under construction/contract
211 23503 Annual Street Resurfacing & Preventative
Maintenance 324,865 Carry
Forward
Remaining project funding to be constructed under 24503; consideration of bid award by City Council in April 2024
221 22795 Pleasanton Cricket Pitch & Field 102,421 Carry Forward Project completed; consideration of acceptance by City Council in April 221 24374
Motor Control Center Replacement and
Temporary Power for the Ken Mercer Sports
Park
152,972 Carry
Forward Under construction; awaiting equipment delivery 221 24747 Annual (2024) Irrigation Upgrades 22,310 Carry Forward Under construction
201 14408 Library Roof Replacement 130,759 Carry Forward Project accepted; remaining balance for retention release 201 23570 2023 Streets Preventative Maintenance 39,865 Carry Forward Project accepted; remaining balance for retention release 201 20462 Lighting Improvements for the Railroad Parking Lot 40,281 Carry
Forward Project accepted; remaining balance for retention release 441 21457 Val Vista Underdrain Improvements 222,226 Carry Forward Project accepted; remaining balance for retention release Projects Previously Deferred
211 17518 2017 Bridge Evaluations Program - Deferred, 2023 201 20468 Short Term ACE Station Parking Solution - Deferred, 2023 201 20424 City Parking Lots - Resurfacing - Deferred, 2023 211 99567 2nd Bridge Bernal/Laguna - Deferred, 2023 211 05526 2nd Bridge Bernal/Laguna - Deferred, 2023 211 20569 Santa Rita Intersection Improvements - Deferred, 2023 TIFF Funding Shortfall 211 20565 Nevada Street Improvements - Deferred, 2023 TIFF Funding Shortfall

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Pleasanton City CouncilMarch 19, 2024

Pleasanton City Council
March 19, 2024