Mobility & Infrastructure
Committee Memorandum
TO: MOBILITY & INFRASTRUCTURE COMMITTEE DATE: JANUARY 11, 2024 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: PAVEMENT MANAGEMENT PROGRAM UPDATE – FISCAL YEAR 2023-2024 PROJECTS ISSUE:
Receive an update on the Pavement Management Program including the proposed projects to be completed with the various Fiscal Year 2023-2024 fund sources.
RECOMMENDATION:
That the Mobility & Infrastructure Committee receive and file the presentation on the Pavement Management Program Update for the Fiscal Year 2023-2024 projects.
BACKGROUND:
In 2013, the City used bond proceeds backed by the City’s Measure A revenue to secure approximately $38 million for a three-year maintenance program with an annual debt service payment of $3 million through 2033. Based on the terms of the agreement, the Finance Department recommended that the Public Works Department (Public Works) consider refinancing the debt in FY 2022-23 to decrease the annual obligation or pay off the debt sooner. Unfortunately, the interest rate has significantly increased, and this is no longer a viable option. Staff will continue working with the Finance Department and consider refinancing when the interest rate is lowered.
Public Works has engaged the Budget Engagement Commission (BEC) and City Council during the past several years to provide Pavement Management Program (PMP) updates, request supplemental appropriations, and detail the City’s investment to address paving and maintenance needs. Since 2017, the City’s PMP budget has increased substantially with the adoption of California’s Senate Bill 1, which is referred to as the Road Repair and Recovery Act (SB-1) and the implementation of the City’s Measure Z one-cent transaction and use tax to pay for critical unfunded City needs including road maintenance and traffic safety.
On September 20, 2022, the City Council approved extending the paving moratorium from three to five years to mitigate some of the impacts to roads by reducing trenching operations on newly paved roads and encourage increased collaboration between utility companies and the City. Additionally, on December 12, 2023, City Council received a report recommending that a professional service agreement be awarded for the completion of a Pavement Cut Fee Study for fees to be assessed to utility companies and contractors who trench in the roadway and impact a roadway’s ride and useful life.
DISCUSSION:
In 2017, Public Works completed a comprehensive pavement condition assessment of 875 centerline miles of roads and alleys to determine the City’s overall Pavement Condition Index (PCI), and to provide budgetary recommendations for various target funding levels. In 2021, a 5-year program was approved to reassess the City’s roadways to systematically complete partial network surveys throughout the City annually over the 5-year period.
The purpose and function of pavement management is to confirm what assets the City owns and maintains, identify the status and total network deficiency and to develop a 5-year budget rehabilitation plan. The health of the City’s road network can be summarized with the following three metrics including Network PCI, percentage of streets in excellent condition, and the percentage of streets in poor or very poor condition, also known as Backlog. Table 1 provides the results of these three key metrics from the City’s previous three PMP reports received to date.
Table 1 – PMP Street Network PCI Summary
Report Month/Year
May 2018
July 2022
May 2023
Network PCI
61 58
59 Excellent Roads
13.2%
33.0%
33.4%
Backlog
12.7%
24.0%
21.5%
In 2017, the City was operating on a maintenance budget of approximately $15M. The May 2018 report recommended a 5-year operating budget of $24M. Although funding was increased in subsequent years with additional Measure Z funds, the Public Works operating budget did not reach the $24M threshold until FY 2022-2023. The lack of adequate recommended funding resulted in a decrease in Network PCI and increase in Backlog which was demonstrated in subsequent reports. However, there was a vast percentage increase in Excellent streets which reflects the commitment the City has made to improving the quality of streets in the past several years.
In addition to funding deficiencies, inflation has proven to be another major impact on the PMP in recent years. Inflation is a national issue and construction costs have risen approximately 30-35%. Unfortunately, due to the length of time from planning projects to awarding contracts, inflation greatly impacted the FY 2021-2022 and FY 2022-2023 planned projects, but all these projects will be completed. However, the overages will need to be accounted for in the planned projects for FY 2023-2024.
Table 2 represents the Condition Index PCI Scoring Rating used to assess the roadway network. When the City Network PCI score decreases, that indicates that a higher percentage of roads will be classified Marginal, Poor, and Very Poor and thus would create an increased financial burden.
Table 2 – Condition Index Rating and PCI Score
Condition
Pavement Condition Index Score
Very Poor
0-25
Poor
25-40
Marginal
40-50
Fair
50-60
Good
60-70
Very Good
70-85
Excellent
85-100
The deterioration of roadways is based on algorithmic deterioration curve models. As the City continues with a proactive PMP, the deterioration curves will become more accurate and more reflective of how the City’s pavement treatments are performing over time. Figure 1 demonstrates a typical degradation curve and the importance of maintaining the streets in good condition. As a street develops cracking, it is prone to greater water infiltration and will begin to deteriorate rapidly. Therefore, the increased funding to the PMP has allowed the City to increase its commitment to preservation treatments, thereby extending the life of the pavement.
Figure 1: Pavement Degradation Curve
Table 3 provides a 5-year PCI and funding analysis comparing 2018 to 2023, considering varying annual budgets with their corresponding resulting PCI and Backlog. It is important to evaluate the Backlog as once it exceeds 20%, the ability to adequately fund the PMP and reduce the Backlog becomes extremely difficult. As anticipated by the 2018 study, the City Network PCI decreased, and the Backlog increased as the PMP was not operating with the recommended annual budget.
Table 3 – 5-Year PCI and Funding Analysis
2018 (Overall PCI of 61)
2023 (Overall PCI of 59)
Annual Budget
PCI
Backlog
Annual Budget
PCI
Backlog
$13.5
57 26.7%
$24M
54 31%
$15.0
57 24.4%
$31M
56 28%
$18.5
58 22.9%
$37M
58 25%
$24.0
61 18.8%
$45M
60 22%
$30.0
63 15.2%
$57M
62 19%
$34.5
65 12.7%
$65M
64 17%
--
--
--
$80M
66 14%
--
--
--
$89M
68 11%
--
--
--
$98M
70 9%
To reduce that financial burden, Public Works utilizes a treatment of milling the existing pavement to an appropriate thickness, applying an Asphalt Rubber Aggregate Membrane (ARAM), followed by a new asphalt surface. This treatment is utilized on structurally stable streets but with the exception of an aging surface. The ARAM interlayer serves as a barrier preventing water from penetrating into the subgrade and the cracking reflecting into the newly paved surface.
Table 4 reflects the various fund sources available for Fiscal Year 2023-2024 PMP maintenance projects. A portion of available funds are also allocated towards miscellaneous concrete repair projects and traffic safety projects. The May 2023 PMP report recommended an annual maintenance budget of $37M which is still likely not keeping pace with inflation. The current available PMP budget is $32M including a one-time budgeted General Fund allocation. The rise of inflation has extremely impacted the City’s PMP. Two FY 2022-2023 projects have not been awarded to date and Public Works anticipated a budget overage of $14M while planning the FY 2023-2024 projects.
Table 4 – FY 2023-2024 Fund Sources
Fund Source
PMP
Budget
Misc. Concrete Repair Budget
Traffic Safety Budget
State Measure A Sales Tax
$2.4M
State Highway User Gas Tax
$1.8M
$0.8M
State SB-1 Gas Tax
$7.7M
Federal CDBG
$1.1M
City Measure Z Sales Tax
$8.8M
$0.6M
$2.0M
City General Fund
$10M*
PMP Budget Overage
($14M)**
Subtotal
$17.8M
$1.4M
$2.0M
*City budgeted one-time $10M allocation to support the PMP. ** Actual amount to be determined after award of all FY 2022-2023 projects.
Staff utilize a pavement management software called Lucity, which allows Public Works to align the available budget with the needs identified in the software. Public Works also receives rehabilitation requests through the City’s 311 Call Center. Finally, Staff meets annually with respective councilmembers and the mayor to share updates, recommend paving and maintenance projects, share strategies to maximize roadway investment, and discuss priority paving needs.
Utilizing this project selection process and based on projected available funding levels, staff is recommending approximately $2.5 million in FY 2023-2024 funds in each Ward for pavement resurfacing and preservation projects. Attachment 1 includes a Citywide list of recommended projects. The selected FY 2023-24 projects are anticipated to begin construction throughout 2024 as the selected streets need to be field reviewed, designed, and projects awarded and scheduled for construction. Table 5 summarizes the quantity of miles for the planned resurfacing and preservation projects.
Table 5 – FY 2023-24 Citywide Resurfacing and Preservation Project Miles Roadway Classification
Asphalt Resurfacing
Slurry Preservation
Arterial Street
1.90 miles
0.39 miles
Collector Street
1.82 miles
0.51 miles
Minor Street
10.74 miles
13.21 miles
Alley (New Construction)
0.15 miles
0 miles
Total
28.72 Miles
The proposed 28.72 miles is a significant decrease from last fiscal year’s project list as Public Works continues to contend with the rise in construction costs. Public Works will continue to observe the trend and may approach the BEC and the City Council in the future to request additional funds to support the PMP.
Public Works continues to study best practices and programs from other agencies to help preserve and improve our roadway system. As previously discussed, Public Works extended the Paving Moratorium from 3 to 5 years and is exploring the potential to implement a Pavement Cut Fee to mitigate impacts to the roads and to promote better collaboration with utility purveyors and developers.
Public Works also implemented a new GIS map detailing the streets that have been paved in the past 5 years as well as planned paving projects. The GIS map would allow elected officials and the public to track progress on projects, encourage collaboration between utility companies and the City on planned street work, and help enforce the City’s pavement moratorium policy. In March 2023, Public Works updated its trench repair standard detail improving the paving restoration requirements and referencing both the paving moratorium and new GIS map.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 6 – Infrastructure, Mobility and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The proposed improvements are part of a more significant endeavor to improve the City’s roadway network and quality of life for residents and visitors. The Public Works has provided numerous presentations to the City Council, Mobility and Infrastructure Committee, Transportation Committee, and Budget Engagement Commission as part of the City’s Pavement Management Program.
Equity – Public Works strives to improve the City’s roadway network to provide safe and reliable transportation to all areas of the City. Additionally, staff meets with each City Councilmember to discuss goals, budgets, recommendations for street improvements, and obtain feedback on the requests received from their constituents. The proposed projects encompass street maintenance in all Wards and includes work within alleys, local, collector, and arterial roadways. The project list includes locations in eligible areas defined under the CDBG program.
Fiscal Responsibility – Public Works responsibly manages a variety of fund sources to complete projects included in the City’s Capital Improvement Program. Public Works is a prudent steward of public funds and construction projects are always awarded to the lowest responsive bidders.
Innovation – Projects will utilize an Asphalt Rubber Aggregate Membrane interlay that has proven to extend the life of a street by creating an impenetrable barrier blocking rainwater from penetrating into the subgrade.
Sustainability & Resiliency – The construction materials specified for these projects are considered best practices in the industry. The use of rubberized and recycled material greatly benefits the environment, reducing wasted storage, providing extra layers of protection, and adding longevity to our resurfaced streets.
FISCAL IMPACT:
There is no fiscal impact to receive and file the PMP update and FY 2023-2024 project selection.
Prepared by: Ed Lara, Principal Engineer
Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra Norton, City Attorney
Attachments:
Fiscal Year 2023-24 List of Planned Paving Projects
Presentation
2023 PMP Update – FY 23-24 Projects ● Page 2