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HomeMy WebLinkAboutAGENDA REPORT 2005 0316 CC REG ITEM 10EITEM 10 • E• CITY OF MOORPARK, CALIFORNIA City Council Meeting Of 1.4-/6 -OW 6, ACTION: /;Q.Q.�.a -,i.� Moorpark City Council BY. Agenda Report TO: The Honorable City Council FROM: Kenneth C. Gilbert, Director of Public Works DATE: March 3, 2005 (Council Meeting 3- 16 -05) SUBJECT: Final Approval of the Seven -Year Capital Improvement Program [CIP] for Streets and Roads nvF,RV T F.W This presents for approval, the final draft Seven -Year Capital Improvement Program [CIP] for Streets and Roads. This draft document sets forth a list of planned municipal improvement projects for City streets and related improvements. Proposed improvements for parks, buildings and facilities are not included. Also, costs for general public works maintenance programs (i.e. street marking, striping, regulatory signs, tree trimming, etc.) are not included in this program as this type of Public Works Operations and Maintenance expense is set forth in the annual Departmental Operating Budget. The purpose and focus of this CIP is to provide the City Council with a tool for planning and programming major public works capital improvement projects over the next several years. BACKGROUND On January 4, 2005, the draft CIP was submitted to the Transportation and Streets Committee [Mayor Pro tem Harper and Councilmember Millhouse] for review. On February 7, 2005, the Committee discussed the draft Program and made recommendations which were incorporated into the January draft [Blue cover] of the document. On February 16, 2005, the revised January 2005 draft of the CIP [Blue cover] was presented to the City Council for review and comment. Excerpts from the staff report for that City Council meeting are attached as Exhibit 3. On February 22, 2005, the draft CIP [Blue cover] was presented to the Moorpark Planning Commission. The Planning Commission found the document to be in conformance with the Moorpark General Plan, as required by Section 65401 of the Government Code. Cip2004 5 final 0503 000161 Capital Improvement Program: Final Approval March 16, 2005 Page 2 DISCUSSION A. Final CIP A revised final draft of the CIP [Grey Cover] is attached as Exhibit 1. B. Changes The final draft document [Grey cover] contains certain changes from the January version [Blue cover] . Those changes are summarized in Exhibit 2. The changes outlined in Exhibit 2 do not add or delete projects and thus have no bearing on the Planning Commission's finding that the draft CIP is in conformance with the Moorpark General Plan. C. Final Approval / Annual Review It is recommended below that the subject CIP be approved. It is the intent of staff to update this document each year, subsequent to the adoption of the annual budget. It is anticipated that the Seven -Year CIP for FY2005/06 - FY2011 /12 will be presented to the City Council in September of this year. Like the current program, the updated CIP will reflect the then current Capital Improvement Budget [FY2005/06] as the first year of the revised seven year program. STAFF RECOMMENDATION Approve the FY 2004/05 - FY 2010/11 Capital Improvement Program for Streets and Roads. Attachments: Exhibit 1: Capital Improvement Program Exhibit 2: Changes to the January [Blue] draft Exhibit 3: February Report to the City Council Cip2004 5 final 0503 Exhibit 1: Seven -Year Capital Improvement Program FY 04/05 through FY 10/11 This program has been distributed under separate cover. Cip2004 5 final 0503 000163 Exhibit 2: Seven -Year Capital Improvement Program Cip2004 5 final 0503 400164 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 1 DISCUSSION A. Seven Year Program The attached CIP provides for the planning and programming of projects over a seven year period. In this way the CIP has been made compatible with the Ventura County Transportation Commission's (VCTC) Congestion Management Program (CMP), which requires a seven -year projection of CMP related projects (details regarding the CMP are set forth herein). B. Priorities and Plannin The funding year shown for each project listed in the CIP is an indication of its relative priority, as initially recommended by staff. One of the tasks before the City Council in reviewing and adopting this document, is to look at the relative placement of each project in the seven year cycle, and to confirm or revise the priorities as presented. In doing so, it is suggested that the City Council keep in mind the amount of time required to develop a project to a "buildable" status (i.e. design, right -of -way acquisition, etc.), as well as the availability of funding. C. GASB -34 The City recently developed and implemented an Infrastructure Valuation Program consistent with the requirements of the Government Accounting Standards Board Statement No. 34 [GASB- 34]. The initial report developed for that program inventoried, quantified, categorized and valued (replacement cost estimate) all of the City's capital assets. The October 2003 GASB -34 report valued the total City's infrastructure assets at over $222 million, with "street- related" improvements valued at over $67 million. This Inventory Valuation Program found that the annual depreciation rate for the City's existing "street- related" infrastructure is over $1 million. Implied in that finding is a need to spend $1 million per year on the City's existing street systems, just to keep them "maintained" at their current condition or value. It should be noted that only Projects 102 (Asphalt Overlay) and 201 (Sidewalk / Curb / Gutter Repair) are projects which provide for the improvement and /or restoration of existing street infrastructure. All of the other projects set forth in the CIP provide for the construction of "new" infrastructure improvements. It should also be noted that the average annual amount of expenses for Projects 102 and 201 is less than one -half that amount. As discussed herein, in the future it will become necessary to increase the level of funding for infrastructure replacement Cip2004 5 final 0503 000165 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 2 projects and to ultimately find additional funding sources to keep pace with rising street maintenance costs. It should also be noted that the planned construction of new land development projects will add to the City's inventory of "street- related" infrastructure improvements. The GASB -34 report shows that currently there are approximately ninety - seven (97) centerline miles of streets in the City. Planned projects, like Toll Bothers, Pardee, Lyon, Hitch Ranch, Shea, Centex, Pacific Communities and others, are expected to add ten to fifteen percent (10 % -15 %) to that inventory. D. Fiscal Year 04/05 The first year of the subject CIP is Fiscal Year 04/05. The funding amounts and sources cited in the CIP for FY 04/05 are consistent with the adopted FY 04/05 Budget. E. Annual Review It is the intent of staff to present the CIP to the City Council for review each Spring. Direction from the City Council will be used to add new projects, amend the scope of existing projects and adjust priorities. Those changes will be incorporated into a new draft document to hopefully be approved in June of each year along with the Budget. [Portion of report omitted) J. Program Content In addition to known projects planned to be constructed by either the City, the MRA or private developers, a number of projects have been included in the CIP in order to fully address the needs described in certain infrastructure planning documents, noted as follows: 1. Circulation Element: All of the "future" arterial and collector streets identified in the Circulation Element of the Moorpark General Plan, have been included in the program; 2. Master Drainage Study: All of the "future" drains identified in the 1995 Master drainage Study, have also been included in the program. K. Proaram Format The projects listed in the CIP categories listed as follows: • Street (including underground Cip2004 5 final 0503 are organized into four utility projects); OOOIC6 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 3 • Trails and Walkways; • Traffic Signals; • Medians and Parkways; and • Storm Drains. In the Introduction there is a total program cost summary broken down into these five (5) categories of projects. L. Program Cost Estimate Section A of the CIP provides a general introduction to the program and includes a listing of the total program cost estimate (exceeding $65 million), summarized as follows: M. Protect Descriptions Section B of the CIP sets forth a "Project Description" page for each project. The information provided on each Project Description page includes estimated project costs, recommended funding year and recommended funding sources. It should be noted that there has been no detailed preliminary engineering performed for most of the projects listed. The cost estimates are, therefore, very preliminary in nature and will be subject to change as the full scope and requirements of each project are developed. N. Program Expenditure Summary Section C of the CIP sets forth a table listing all projects in the CIP along with total estimated project costs for each fiscal year of the program. 0. Gas Tax Fund Analvsis 1. Gas Tax Utilization History & Projection: Attached as Exhibit 2 is a table describing Gas Tax Fund activity in recent years. This table shows past Gas Tax expenditures Cip2004 5 final 0503 OOO1GT Estimated Section Program Cost ($) 100 Streets 42,970,101 200 Trails / Walkways 2,953,755 300 Traffic Signals 1,086,346 400 Medians & Parkways 2,887,958 500 Storm Drains 16,000,000 Total 65, 898,160 M. Protect Descriptions Section B of the CIP sets forth a "Project Description" page for each project. The information provided on each Project Description page includes estimated project costs, recommended funding year and recommended funding sources. It should be noted that there has been no detailed preliminary engineering performed for most of the projects listed. The cost estimates are, therefore, very preliminary in nature and will be subject to change as the full scope and requirements of each project are developed. N. Program Expenditure Summary Section C of the CIP sets forth a table listing all projects in the CIP along with total estimated project costs for each fiscal year of the program. 0. Gas Tax Fund Analvsis 1. Gas Tax Utilization History & Projection: Attached as Exhibit 2 is a table describing Gas Tax Fund activity in recent years. This table shows past Gas Tax expenditures Cip2004 5 final 0503 OOO1GT Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 4 for both Operations and Maintenance (O &M) expenses and for capital improvement projects. Also shown in this table is a projection of such expenditures over the next seven (7) years. 2. Increase in O &M Expenditure Allocation: A review of that chart (Exhibit 2) shows that prior to FY 00/01, O &M expenditures were less than annual revenues. In FY 01/02 and subsequent years, 0 &M expenditures charged to the Gas Tax Fund have exceeded annual revenues. This expense level has slowly "drawn down" the fund balance for the Gas Tax Fund. 3. Assessment District Revenue Shortfall: One recent additional source of Gas Tax expenditures is the annual fund transfer from the Gas Tax Fund to the Citywide Lighting and Landscaping Assessment District, to fund a reoccurring shortfall in revenues for street lighting cost. In future years it is anticipated that, not only will the street lighting deficit grow, but there will also develop a shortfall in assessment district funds "earmarked" for Citywide landscape maintenance costs. 4. Fund Balance Projection: The chart (Exhibit 2) also shows the projected Gas Tax Fund Year -End Balance over the next seven (7) years. Assuming revenues and 0 &M expenditures comparable to that of recent years (0 &M expenses at over 1300 of revenues) the year -end fund balance will continue to be "draw down ". This Fund activity projection shows a Fund deficit by FY 07/08. At some point in the future, action will become necessary to fund a portion of Street 0 &M costs from sources other than the Gas Tax Fund. It should be noted that State law prohibits Gas Tax expenditures in excess of funds available. 5. Projects: As currently drafted, the CIP calls for a very limited amount of Gas Tax funding for capital projects. Project funded, totally or in part, by the Gas Tax Fund are listed as follows: P. Transportation Development Act [TDA] Utilization 1. Fund Description: Funds received under Article 8 of the Transportation Development Act [TDA], may be used for both transit and street repair/ improvements. The Act requires Cip2004 5 final 0503 V ``'' 0 0 1G 8 FY 04/05 Future Project Total ($) Years ($) Total ($) 203 - Sidewalks 30,000 180,000 210,000 401 - Tierra Rejada Rd Pkwy Trees 32,000 0 32,000 405 - Spring Rd Pkwy Trees 41,514 0 41,514 103,514 180,000 283,514 P. Transportation Development Act [TDA] Utilization 1. Fund Description: Funds received under Article 8 of the Transportation Development Act [TDA], may be used for both transit and street repair/ improvements. The Act requires Cip2004 5 final 0503 V ``'' 0 0 1G 8 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 5 that monies be first allocated to meet transit needs. Any remaining funds may then be used for street maintenance and improvement. 2. Transit: TDA funds directed to transit programs are referred to as TDA Article 8C monies. Within the City's Budget these monies are placed in Fund 5000, the City's Transit Fund. 3. Street Maintenance and Improvement: TDA funds directed to fund street repair and improvements are referred to as TDA Article 8A monies. These monies appear in the City's Budget in Fund 2603 - Local Transportation Fund [LTF]. 4. TDA Allocation and Utilization: Attached as Exhibit 3 is a table showing the allocation of TDA funds between transit and streets over the past several years. Also shown in that chart is Fund 2603 (LTF) activity (street projects) over the same period. That chart also includes a projection of those allocations and expenditures over the next seven (7) years. 5. Transit Allocation: The TDA chart (Exhibit 3) shows that the amount of TDA revenues allocated to Transit programs has increased in recent years. The remaining amount allocated to streets has, therefore, dropped from about 800 of total TDA revenues down to about 500 of total TDA revenues. As discussed below, any further reduction in revenues to the LTF Fund will adversely affect the City's ability to provide for the adequate long -term maintenance of City streets. 6. Projects: As re- capped in the TDA Chart (Exhibit 3) the CIP calls for approximately $6 million in LTF funding to be expended on street improvement projects during the next seven (7) years. As the chart shows, this level of funding will cause the LTF Fund Reserve to show a deficit by FY 09/10. Eventually, funding for street maintenance and repair projects will have to be augmented by funds from other sources if the City is to avoid adopting a common practice of "deferred maintenance" - a practice which invariably leads to a gradual deterioration of a City's streets infrastructure. 7. O &M Costs: As previously discussed, it appears that it will become necessary to augment Gas Tax funding of Streets O &M expenses. Given the above discussion, the LTF Fund may not be the long -term solution to that problem. Cip2004 5 final 0503 0001G9 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 6 Q. Preservation of Pavement Condition Moorpark is a relatively new and growing city. As such, most of its streets are fairly new. Accordingly, pavement rehabilitation needs have been less than that seen in "older" cities of similar size. This will not always be the case. As streets age the number, volume and costs of projects required to maintain paved surfaces in a "good" condition will increase significantly. As discussed above it appears that the long -term projection for total revenues to the Gas Tax Fund and Local Transportation Fund will not be sufficient to fund the City's future pavement maintenance needs. When the time comes that those revenues fail to fully fund a needed pavement rehabilitation project, the City will be faced with a choice that comes to every city: 1) partial funding from the General Fund; or 2) deferred maintenance. The second choice, "deferred maintenance ", will result in both poor pavement conditions and much higher ultimate costs which will come from the need to undertake street reconstruction projects instead of pavement resurfacing projects. The City should consider options for the development of a long -term solution to this projected future funding shortfall. R. Conqestion Manaqement Program [CMP] The Ventura County Transportation Commission (VCTC) has developed, and now manages, a Congestion Management Program (CMP) as required by State law. One of the requirements of the CMP is the identification of all capital improvement projects which might enhance the traffic capacity, proposed to be constructed on any street on the CMP Roadway Network over the next seven years. A map of the CMP network and a chart listing the projects on that network, are set forth in Section D of the CIP. S. Past Projects In order to document past projects, Appendix `I' of the CIP lists all known major capital improvement projects (for Streets and Roads) constructed since the City's incorporation in 1983. T. Fundina Sources: Definitions Attached as Appendix `II' is a listing of the major funding sources for the program, along with a description for each. Cip2004 5 final 0503 0001 ?0 Exhibit 3 Excerpts from the February 16, 2005, Staff Report to the City Council Page 7 U. {Omitted} V. Conclusion The subject CIP is designed to serve many purposes. • It is a budget planning document. • It is a funding source reference. • It is a plan for the future improvement of the City. • It is a list of infrastructure needs. • It sets forth the scope and estimated cost of specific projects. • It is a tool for prioritizing and scheduling capital improvement projects. • It provides a list of projects already completed. • It documents compliance with requirements of the Congestion Management Program. • But most of all, it is a "hands -on" working reference document to identify, define and describe future planned capital improvement projects. This first edition of the CIP is also intended to provide "baseline" information to the City Council to enable them to direct changes which more clearly state the infrastructure needs, goals and priorities of the community. {Sections W and X omitted} Cip2009 5 final 0503 00017