TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:February 11, 2025
SUBJECT: 2024 Pavement Management Program (MI 2608)
RECOMMENDATION:
1. Approve the 2024 Pavement Management Program (PMP) report and direct staff to continue maintenance of City streets in accordance with the PMP and available budget.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to prepare the staff report is included in the Adopted FY 2024-25 General Fund Budget. Expenditures for PMP consultant services are included in the Adopted FY 2024-25 Gas Tax Fund Budget (MI 2608).
BACKGROUND:
Since the late 1980s, the Federal Highway Administration has required recipients of federal highway funds to implement a PMP for proper utilization of federal grant funds. The City began preparing a citywide PMP in 1991 and has updated street pavement condition data approximately every five years since then. The PMP is used for planning as well as developing budgets for the City’s street rehabilitation projects.
The PMP employs a cost-benefit analysis to determine maintenance at the most beneficial point in the life cycle of asphalt. This is critical, as minimal pavement maintenance investments early in a street’s life cycle prevents expensive rehabilitation in later years. The current replacement value of the City’s 384 miles of streets and roads pavement is estimated to be $988.2 million, making it the single largest asset the City owns and maintains.
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On July 18, 2023, following a competitive Request for Proposals, City Council awarded Nichols Consulting Engineers (NCE) of Fountain Valley, CA, with a Professional Services Agreement to inventory and evaluate the City’s public streets and prepare the 2024 PMP report. Pavement distress data was collected using specialized vehicles and experienced inspectors, then entered into the StreetSaver software. The software calculates street conditions using the Pavement Condition Index (PCI), ranging from 0 (worst) to 100 (best). Newly constructed streets have a PCI of 100, while failed streets score 25 or less. Factors affecting pavement condition include climate, traffic, construction materials, and age. NCE completed the work on the 2024 PMP in late 2024 (Attachment #1).
DISCUSSION/ANALYSIS:
The City’s streets currently average an overall 79 PCI rating (Very Good).
Figure 1 – Pavement Condition Categories:
To maintain and improve the condition of City streets, it is critical to implement cost-effective pavement preservation and maintenance strategies. Pavement preservation emphasizes timely application of the right treatments to maximize pavement lifespan and reduce long-term costs. The key principles of pavement preservation include:
1. Maintain pavements in functional condition.
2. Apply the right treatment at the right time.
3. Utilize cost-effective treatments to address deficiencies.
4. Achieve long-term savings over the pavement lifecycle.
5. Delay or avoid costly rehabilitation or reconstruction.
Pavement quality degrades gradually during the first 40 percent of a street's life span; however, deterioration accelerates more rapidly as pavement ages further.
Thus, investing in timely maintenance and rehabilitation at the appropriate stages
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avoids significantly higher costs later in the pavement’s service life. Figure 2 illustrates the anticipated pavement condition (PCI) over time, along with associated rehabilitation costs.
Figure 2 – Pavement Quality and Service Life
Preventive maintenance, such as crack sealing or slurry seals, is most effective when pavements are in “Fair” to “Very Good” condition. These treatments preserve streets at relatively low costs. As pavement condition worsens to "Poor" or "Very Poor," costlier interventions such as full-depth reconstruction become necessary.
Recent bids indicate that maintaining streets in good condition costs approximately $7 per square yard using Rubberized Emulsified Aggregate Slurry (REAS). In contrast, letting streets deteriorate to the point of reconstruction can increase costs to $100 per square yard. This underscores the importance of preserving streets in “Very Good” to “Fair” condition. Streets in the “Fair” range are particularly critical, as untreated pavement deterioration accelerates rapidly. At this stage, treatments such as Thin Maintenance Overlays (TMO) or mill and fill with Rubberized Asphalt Hot Mix (RAHM) can restore pavements to “Very Good” condition. For streets in the “Poor” range, more extensive treatments such as thicker grind and overlay are needed to achieve similar results. Streets in “Very Poor” condition often require full reconstruction due to severe distress such as potholes and extensive cracking.
Arterial streets typically have a service life of approximately 25 years, while residential streets are expected to last over 30 years with proper maintenance.
Proactive management and timely investments in pavement preservation will maximize the life span of the City’s street network and reduce overall costs.
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Pavement Management Report
NCE prepared the PMP dated November 2024, to describe the principles, process, and results of the PMP. Portions of this information are excerpted below. Overall, the City’s streets remain in “Very Good” condition, with an average PCI of 79.
Figure 3 summarizes the PCI ratings by functional class within City limits, showing similar conditions across all classifications.
Figure 3 – Pavement Network Condition Summary
Due to the large volume of Appendices listed in the PMP they are not provided here but have been provided under separate cover to City Council and are available for review by contacting the Public Works Department by e-mail at [email protected] or by phone at (805) 449-2400.
Current Pavement Maintenance Practices
To preserve and enhance pavement conditions, the City employs a mix of preventive maintenance and rehabilitation strategies. Preventive treatments such as micro-surfacing and rubberized slurry (REAS) are applied to streets in “Fair” condition or better, aligning with best practices to extend pavement life at a lower cost. Rehabilitation, including overlays and reconstruction, is reserved for streets in lower PCI categories where preventive maintenance is no longer viable.
By applying the principles of pavement preservation—keeping streets in a healthy condition, timely application of treatments, and utilizing cost-effective solutions, the City aims to maximize the lifespan of its roadway network while minimizing long- term costs.
Budget Needs (Unconstrained Budget)
Once the existing pavement conditions were assessed and appropriate maintenance treatments assigned through the StreetSaver software, an unconstrained budget analysis was conducted. This analysis assumes unlimited funding to maintain the City’s pavement network at an optimal level. The primary goal is to estimate the costs required to preserve and/or rehabilitate roads with a PCI of 70 or above. Roads with a PCI between 70 and 55 would be allowed to
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continue deteriorating while rehabilitating or reconstructing roads with a PCI below
55. This strategy focuses on cost-effective maintenance by preserving streets in better condition while addressing the most severely deteriorated roads.
The analysis indicates that up to $149.4 million would be required over the next 10 years to eliminate all deferred maintenance and improve the City’s average PCI even further. The breakdown of funding allocations and resulting PCI levels is summarized in Figure 4 below:
Figure 4 – 10-Year Unconstrained Budget Needs Analysis
Fiscal Year 24+25 26 27 28 29 30 31 32 33 Total
Total Budget
Needs18.4
($M)
9.1 6.3 14.5 12.2 18.8 13.6 36.9 19.6 149.4
Rehabilitation 11.2 3.9 4.6 3.1 4.5 2.8 7.4 16.4 8.5 62.4 Preventive
Maintenance7.2
($M)
5.2 1.7 11.4 7.7 16.0 6.2 20.5 11.1 87.0
Treated PCI84 83 82 81 81 81 80 81 81 NA
Untreated PCI79 79 77 76 74 72 71 69 67 NA
This funding allocation forms the basis of the “Unconstrained Budget Needs Analysis,” which represents the highest funding level required to maintain the City’s roads in “Fair” or better condition. By prioritizing preventive maintenance, this strategy aims to preserve streets and avoid the significantly higher costs associated with deferred maintenance or complete reconstruction.
Budget Scenarios
Having determined the 10‐year full unconstrained maintenance needs of the City’s street network, the next step in developing a cost‐effective maintenance and rehabilitation strategy is to conduct several “what‐if” analyses:
1. Since we have funding constraints, what is the most cost-effective way to spend the available funds?
2. What are the consequences on the PCI and unfunded backlog?
3. What streets will be prioritized for repairs? When will they be repaired? 2024 Pavement Management Program (MI 2608)
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The following budget scenarios were evaluated by the consultant. It is noted that each scenario includes a 10-year analysis, with the first two years being for the 2024 Citywide Paving Project as well as eight years of future projections.
Scenarios 1 and 1A: City’s Existing Budget ($18 - 20 million biennial) This scenario evaluates the City’s existing biennial budget of $18.0 million and its long-term impact on the pavement network under two funding strategies: with an annual 4.0 percent increase (Scenario 1) and also with a fixed budget over the analysis period (Scenario 1A).
These funding approaches result in total budgets of $101.8 million and $90.8 million, respectively, over 10 years. With a 4.0 percent annual budget increase, the network PCI is projected to decline from 79 to 76 by budget cycle for FY 2031- 32 and FY 2032-33, and the deferred maintenance backlog growing to $29.5 million. Without the annual increase, the PCI will drop further to 75 by budget cycle for FY 2031-32 and FY 2032-33, with the deferred maintenance backlog growing to $40.9 million. Figure 5 below summarizes the Scenario 1, the existing budget with a 4.0 percent annual increase. It is noted that the FY 24/25 budget was slightly higher due to additional one-time CalRecycle Grant funding and other elements which increased the budget to $18.8M.
Figure 5 – Scenario 1: Existing Budget with 4% Annual Budget Increase Fiscal Year 24/25 26/27 28/29 30/31 32/33 Total
City’s Budget 18.8 18.5 20.0 21.5 23.0 101.8
Deferred 18.4 25.4 35.0 35.7 29.5 N/A
Network PCI 79 79 78 77 76 N/A
Scenario 2: Maintain PCI in the Upper 70’s (77) by end of FY 2032-33 This scenario establishes a goal of maintaining the City’s PCI in the upper 70’s (77) by the end of FY 2032-33. To reach this target, an estimated $118.8 million must be invested in maintenance and rehabilitation over 10 years, averaging approximately $12.5 million annually. Implementing this funding strategy to the City’s budget is expected to reduce the deferred maintenance backlog to $13.7 million by FY 2032-33. Figure 6 below summarizes the projected outcomes based on this funding approach:
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Figure 6 – Maintain PCI in
Upper 70’sFiscal Year 24/25
26/27 28/29 30/31 32/33 Total
City’s Budget 18.8 22.0 24.0 26.0 28.0 118.8
Deferred 18.4 21.9 28.1 23.8 13.7 N/A
Network PCI 79 80 79 78 77 N/A
Scenario 3: Target PCI of 78 by end of FY 2032-33
This scenario targets an average network PCI of 78 by the end of FY 2032-33.
Achieving this goal requires a financial commitment of approximately $130.8 million over 10 years, averaging $14.0 million annually. Unlike the previous scenarios, Scenario 3 places an equal emphasis on preventive maintenance and rehabilitation, ensuring that streets in the “Very Good” category are consistently maintained while also rehabilitating streets in lower condition categories. By following this approach, the deferred maintenance backlog is expected to decrease to $12.1 million by FY 2032-33, while maintaining streets in very good condition.
Figure 7 below summarizes the projected outcomes based on this funding strategy:
Figure 7 – Target PCI of 78
Fiscal Year 24/25 26/27 28/29 30/31 32/33 Total
City’s Budget 18.8 28.0 28.0 28.0 28.0 130.8
Deferred 18.4 15.9 15.6 13.6 12.1 N/A
Network PCI 79 80 79 79 78 N/A
Scenario 4: Maintain PCI at 79 by end of FY 2032-33
This scenario assumes the City will maintain a PCI of 79 through the end of FY 2032-33. Achieving this goal requires a financial commitment of approximately $143.7 million over 10 years, averaging $16.0 million annually. Like Scenario 3, this scenario allocates roughly 50 percent of the budget toward preventive maintenance, focusing on streets in the “Very Good” condition category, while also improving streets in lower categories through rehabilitation. As a result, deferred maintenance costs are projected to decline significantly by the end of the analysis period. Figure 8 below summarizes the projected outcomes based on this funding strategy:
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Figure 8 – Target PCI at
79Fiscal Year 24/25
26/27 28/29 30/31 32/33 Total
City’s Budget 18.8 30.0 28.9 32.0 34.0 143.7
Deferred 18.4 13.9 12.9 9.2 4.4 N/A
Network PCI 79 81 80 79 79 N/A
Scenario 5: Increase PCI to 81 by end of FY 2032-33
This scenario sets an ambitious goal of increasing the City’s network PCI to 81 by the end of FY 2032-33, going beyond the Unconstrained Budget Analysis which assumes maintaining a PCI of 80. Achieving this target requires a total investment of approximately $162.7 million over 10 years, averaging $18.0 million annually.
This approach allocates a higher percentage (roughly 60 percent) of the budget to preventive maintenance, focusing on preserving streets in “Very Good” condition and reducing the rate of pavement deterioration. Consequently, deferred maintenance costs are projected to be virtually eliminated by FY 2032-33. Figure 9 below summarizes the projected outcomes based on this funding strategy:
Figure 9 – Increase PCI to 81
Fiscal Year 24/25 26/27 28/29 30/31 32/33 Total
City’s Budget 18.8 40.0 27.9 32.0 44.0 162.7
Deferred 18.4 7.8 8.7 4.3 0.9 N/A
Network PCI 79 80 80 80 81 N/A
Figure 10 summarizes each scenario and its corresponding 10-year budget, PCI, and deferred maintenance costs at the end of the analysis period. 2024 Pavement Management Program (MI 2608)
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Figure 10 – Summary of Budget Scenarios
Figure 11 below illustrates how the PCI evolves annually under each scenario, showcasing the long-term effects of different funding levels. Scenarios 2 through 5 maintain or improve the PCI with significant reductions in deferred maintenance, while Scenarios 1 and 1A show a steady decline in PCI and a growing backlog of deferred maintenance.
Figure 11 – PCI Scenario Comparison
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Pavement Funding
Historically, funding for pavement maintenance has come from excise and sales taxes on gasoline, and from grants through state and federal transportation programs. It is important to note that some of the funding sources, such as Transportation Development Act (TDA), may be eliminated in the future. Obtaining other future state and federal grants is uncertain. In light of the substantial financial commitment that is required to maintain street conditions and the increase in construction costs, it is relevant to consider the various possible future financing alternatives to help fund pavement rehabilitation and preventive maintenance for the City. The following alternatives are possible sources of future revenue, although none are currently available:
1. Governor’s Transportation Funding Proposal
2. Federal Funds
3. In Lieu Fees
4. County Transportation Measure
5. Local Tax Measure
The City’s Finance Audit Committee reviewed the PMP budget needs and scenarios in January 2025 and agreed with Scenario 2. Given the City’s current Gas Tax funding, the only way to achieve Scenario 2 is with ongoing General Fund contributions in the absence of the above listed other potential funding alternatives.
Figure 12 below illustrates the revenue and expenditure needs for the paving program, projected out using Scenario 2 from 2025 to 2030.
Figure 12 – Budget and Revenue Comparison
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Recommendations
The City’s current funding level for pavement maintenance is approximately $9 million per year ($18.8 million biennially). At this funding level, the network PCI is projected to decline from 79 to 75 over the next 10 years, while deferred maintenance is expected to increase significantly, rising from $18.4 million to $40.9 million by FY 2032-33.
To address this, while also considering existing funding challenges, NCE recommends that the City pursue Scenario #2 to maintain a target PCI in the upper 70’s (77) by the end of FY 2032-33. . This approach balances the need for improved infrastructure conditions with budgetary constraints and will help reduce the City’s deferred maintenance to $13.7 million. By achieving a PCI of 77, the City can maintain pavements in the “Very Good” condition category while reducing deferred maintenance costs and ensuring long-term cost efficiency. The City will continue doing a full citywide PMP analysis every 5 years to help manage the City’s pavement network.
Staff recommends that Council approve the PMP, to establish a data-driven framework for pavement maintenance and rehabilitation decision-making. Once the PMP is approved, staff will implement the recommendations on the future design and construction of the City’s paving projects, which includes the following suggested best management practices and follow up actions::
1. Implement and Expand Pavement Preservation Strategies: Prioritize cost- effective preservation treatments, such as crack sealing, slurry seals, and other industry standard pavement preservation strategies, to maintain streets in “Very Good” condition and prevent deterioration into more costly repair categories.
2. Maintain Streets in Accordance with PMP and Available Funding: Ensure that pavement maintenance efforts are carried out in alignment with the PMP’s recommendations and within the constraints of approved budget allocations.
3. Regularly Reassess Pavement Conditions and Adjust Strategies: Conduct routine evaluations of pavement conditions using tools such as the PCI to adapt strategies based on evolving network needs, budgetary considerations, and treatment performance.
CIP PROJECT PRIORITY (as outlined in FY 2023-24 and FY 2024-25 CIP Program Budget)
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Priority Two – Necessary, but not essential, and there could be consequences, if deferred.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Jorge Munoz, Sr. Engineer
Attachments:
Attachment #1 – PMP Report, Prepared by Nichols Consulting Engineers November 2024
Documents Provided Under Separate Cover:
#1 – Full PMP Report with Appendices
DPW: 850-20\ev\Council\2025\021125\PMP staff report.docx