DATE: September 11, 2018
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Fresno County Road Improvement Program
RECOMMENDED ACTION(S):
TITLE
Consider and approve the 2018-25 Fresno County Road Improvement Program.
REPORT
The recommended action will adopt the Road Improvement Program (RIP) as recommended by Department of Public Works and Planning staff. The RIP continues the Board’s policy to prioritize maintenance and preservation of the existing road system, as documented in the General Plan. This item is countywide.
ALTERNATIVE ACTION(S):
If your Board rejects the recommended action, Department staff would require direction from your Board on what modifications should be made to the RIP, thereafter staff would make modifications as directed and return to your Board at a later date for consideration and approval.
FISCAL IMPACT:
The General Fund Maintenance of Effort contribution for Senate Bill 1: Road Repair and Accountability Act of 2017 (SB 1) (Beall, Chapter 5, Statutes of 2017) is projected at $212,959 annually and is included in the Department of Public Works and Planning - Roads Org 4510 FY 2018-19 Recommended Budget. The RIP is a programming guide for planning and informational purposes, and represents the implementation of Board policy concerning road expenditures. Actual expenditures will be set annually through the budget process, and the Department’s budgetary recommendations will be based on the RIP as adopted by your Board.
DISCUSSION:
Road Improvement Program Overview
The County’s road system is an integral network that connects city streets to the State highway system supporting the movement of goods produced in the valley, and sustaining the local economy and personal mobility. Some communities are remote with no other connection to the State highway system except the County roads therefore the roads typically carry a much higher volume of heavy truck traffic compared to most city streets. Managing the use of road funds by effective preventative maintenance strategies ensures that limited funds are utilized in a manner, which will provide the greatest benefit to the public as well as minimize reductions in levels of service and reduce liability. Roads allowed to deteriorate beyond recovery will either require much more costly reconstruction, or risk reversion to dirt or gravel. A managed system to prevent such deterioration requires a reliable and stable funding stream. The revenues provided by SB 1 increase the funding available for maintenance of the County’s network of roads and bridges, and it is anticipated that some of that revenue will continue to be used in future years to offset matching funds required to construct the bridge replacement projects listed in the RIP. Still, it is anticipated that the revenues available for pavement maintenance will not be sufficient to offset the expected gradual decline in the overall condition of the County’s paved roads.
Funding
Funding for the road and bridge program is comprised of several Federal, State and local sources. The majority of County road funds are derived from State sources and include fuel Excise Taxes and the Local Transportation Fund (LTF). Excise taxes do not vary directly based on the price of fuel, but there are programmed increases in the excise taxes as described in the bullet points below.
The State imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on diesel fuel, and registration taxes on motor vehicles, dedicating these revenues to transportation purposes. Portions of the revenues flow to cities and counties through the Highway Users Tax Account (HUTA) and the newly established Road Maintenance and Rehabilitation Account (RMRA) created by SB 1.
On April 28, 2017, the Governor signed SB 1, to address basic road maintenance, rehabilitation and critical safety needs on both the State highways and on local streets and road systems. SB 1 increases per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and, provides for inflationary adjustments to tax rates in future years.
On November 1, 2017, the State Controller (Controller) began the deposit of various portions of SB 1 funding into the newly created RMRA with a percentage apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code (SHC), Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.
The Local Streets and Roads Funding Program administered by the California Transportation Commission (Commission) in partnership with the Controller is supported by RMRA funding which includes portions of revenues pursuant to SHC 2031 from the following sources:
• An additional 12 cent per gallon increase to the gasoline excise tax, effective November 1, 2017.
• An additional 20 cent per gallon increase to the diesel fuel excise tax, effective November 1, 2017.
• An additional vehicle registration tax called the “Transportation Improvement Fee” with rates based on the value of the motor vehicle, effective January 1, 2018.
• An additional $100 vehicle registration tax on zero emissions (ZEV) vehicles of model year 2020 or later, effective July 1, 2020.
• Annual rate increases to these taxes beginning on July 1, 2020 (July 1, 2021 for the ZEV fee) and every July 1st thereafter equal to the change in the California Consumer Price Index (CPI).
The County’s share of Excise Tax is calculated using a formula, which considers the number of registered vehicles and the number of maintained miles of roadway. The formula assigns greater significance to the number of registered vehicles by assigning weighted factors of 75% and 25%, to the number of registered vehicles and to the number of maintained miles, respectively. The Excise Gas Tax is distributed on a monthly basis, based on projected gasoline sales. Because the Excise Gas Tax is paid on an estimate of gasoline sales, the actual amount collected may be greater than or less than the actual collection. If the actual sale of gasoline is greater than the original estimate, the State will distribute any additional Excise Gas Tax collected in the following year. If the Excise Gas Tax comes in below the original estimate, the following year, the State will reduce the amount of Excise Gas Tax from that year’s estimate. For this reason, the Excise Gas Tax revenue is volatile and difficult to project from year to year.
SB 1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, in order to be eligible for RMRA funding, statute requires cities and counties to provide basic RMRA project reporting to the Commission.
It is anticipated that the County will receive $17,067,000 in SB 1 funding for FY 2018-19. Of this amount, $11,922,000 is included in contract spending and the balance for staff salaries, benefits, and consultant services. SB 1 funding in subsequent years is anticipated to increase annually, beginning in FY 2019-20 with a projected amount of $18,601,000.
The LTF is derived from a portion of the State general sales tax dedicated to transportation purposes by the Transportation Development Act. The primary purpose of the LTF program is to fund transit services throughout the State, but a portion of the LTF may also be utilized for non-transit needs such as road system maintenance.
Previous funding for road and bridge projects in California was provided by the Moving Ahead for Progress in the 21st Century Act (MAP 21) which expired on May 31, 2015. On December 4, 2015, the Fixing America’s Surface Transportation (FAST) Act was signed into law and was the first Federal law in over a decade to provide long-term funding certainty for surface transportation infrastructure planning and investment. The FAST Act authorized $305 billion over fiscal years 2016 through 2020 for highways; highway and motor vehicle safety; public transportation; motor carrier safety; hazardous materials safety; rail; and, research, technology, and statistic programs. The FAST Act maintains a focus on safety, keeps intact the established structure of the various highway-related programs, continues efforts to streamline project delivery and, for the first time, provides a dedicated source of Federal dollars for freight projects.
Revenue from local funds includes the Measure C Extension. In November 2006, voters approved the extension of the ½-cent Measure C Sales Tax. The extension includes pass-through revenues distributed to various agencies via a formula for maintenance and flexible spending. The Measure also includes funding for non-motorized trail facilities, bike lanes, and Americans with Disabilities (ADA) compliance projects within the urban and rural areas of the County.
The RIP is a multi-year maintenance and construction programming plan. It reflects the County’s efforts to protect and improve the public investment in the County’s road system and to provide for the safe and efficient movement of people and commodities. The RIP identifies maintenance funding levels and specific projects expected to be delivered within a defined timeframe. The funding in the RIP reflects current and projected budgets. The RIP also identifies a number of recommended projects that are necessary for an improved County road and bridge system for which funding has not yet been identified. These prospective projects are described in a series of appendices to the RIP.
Bridge Replacement/Repair
The County road network includes 570 bridges in various conditions. The need for bridge replacements is based on their individual structural deficiency and functional obsolescence ratings as identified in the bi-annual Caltrans Bridge Inspection report. Prioritization of bridge retrofit or replacement projects first considers safety and also takes into account the impact to the public if a bridge were to require weight limit posting or closure.
The proposed bridge program as shown in the RIP lists numerous bridges for which Federal funding for replacement has been requested and programmed into the Federal Transportation Improvement Program. The Department currently has 41 bridge replacement projects and an additional 19 scour repair bridge projects in the various phases of design. In total, current revenues from FY 2018-19 through FY 2024-25 associated with bridge projects amounts to approximately $91 million. In addition, the Bridge Preventative Maintenance Program includes several deck treatment and scour mitigation projects.
Road Reconstruction Projects
Major roads are evaluated to ascertain the need for reconstruction or widening in order to improve safety and mobility for the most heavily traveled routes. Recommendations for, and prioritization of future road projects for full reconstruction, are based on a wide variety of factors. These factors include the condition of the roads, the amount of traffic carried, the ability of the road configuration to carry that traffic while maintaining an appropriate level of service, and the potential availability of Federal, State, or local funding to accomplish reconstruction. These factors are considered in conjunction with the anticipated overall cost of the prospective projects and projects are selected that will make the most effective use of limited funds. Appendix A of the RIP, beginning on page 8, lists proposed and currently unfunded road reconstruction projects. Reconstruction to bring roads to current design standards alleviates such deficiencies and improves air quality by reducing the generation of particulate matter.
Traffic Signals
The need for new traffic signals is based on traffic counts, accident history, and analysis to determine if the traffic meets accepted signal warrants. The installation or improvement of signals is generally performed pursuant to various Federal funding programs, such as the Active Transportation Program and the Highway Safety Improvement Program. Appendix B of the RIP (beginning on page 9) lists warranted, currently unfunded, signalization projects.
Congestion Mitigation and Air Quality Projects
The Congestion Mitigation and Air Quality Improvement (CMAQ) Program funds projects that reduce fine particle pollution and provide congestion relief. This may be accomplished by the installation of traffic signals which reduces air pollution emitted by vehicles idling while waiting to progress through an intersection. CMAQ projects also include shoulder improvement projects, which involve adding paved shoulders or increasing the width of existing paved shoulders. This reduces the amount of particulate matter introduced by vehicles traveling at highway speeds close to unpaved dirt shoulders. The addition of paved shoulders also enhances safety. Appendix C of the RIP (beginning on page 10) lists candidate projects for CMAQ funding.
Pavement Repair
The County maintains approximately 3,496 miles of road (as of December 31, 2017), which is the largest County road system in the State. Effective maintenance and operation of the County’s road system is partially achieved through the utilization of our comprehensive Pavement Management System (PMS) and the Street Management Plan. The PMS identifies maintenance strategies to preserve mobility and prevent deterioration for the various types, conditions, and uses of each road. The Department, considering the PMS in conjunction with projected funding for maintenance, continually evaluates current and projected roadway conditions and traffic data in order to allocate available funds to best serve mobility and preservation needs.
The countywide road system currently has an average Pavement Condition Index (PCI) of 59.9 (as of July 31, 2018). A PCI of 70 is considered the minimum PCI range for a road to be considered “good” pavement. Roads that are classified as arterial or collector roads are generally in better condition than roads classified as local. Arterial and collector roads are in better condition because of funding that is available from the Federal Highway Administration and from the State. Local roads are dependent on County road funds for maintenance or reconstruction. To bring the current countywide PCI average from 59.9 to 70, a significant increase in investment will be necessary. Currently the County has $39 million dollars planned for road overlays through FY 2024-25. For FY 2018-19 the overlays budget is projected to be $9 million, to be provided by SB 1 funding. Even considering these substantial overlay expenditures over the period covered by the RIP, it is anticipated that the overall PCI of the County road system will continue to decline. Appendix D of the RIP (beginning on page 11) lists asphalt overlay projects and Appendix E (beginning on page 20) lists future chip-seal projects.
SB 1 Project List
As discussed previously, it is anticipated that SB 1 will provide $17,067,000 for FY 2018-19 for the performance of projects adopted by your Board. Prior to receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city or county must submit to the California Transportation Commission a list of projects proposed to be funded with these funds. Descriptions of all projects included in the RIP are presented in Appendix F. The 2017-18 and 2018-19 SB 1 project lists are included in Appendices G and H, respectively.
The Department is proposing to expend $9,000,000 in the contract construction of overlays with the SB 1 funds for FY 2018-19. When staff costs for engineering, testing, and inspection are considered, the total expenditure will be approximately $11,000,000 for overlays. The remainder of the SB 1 funds are proposed to be spent on several projects which will be funded exclusively by SB 1 and to provide matching funds for certain federally-funded projects. In future years, it will be necessary to expend a lesser proportion of the SB 1 funds on overlays because funds must be made available to cover a substantial obligation to provide matching funds for federally funded projects.
In order to ensure that the projects can utilize all of the available funding, the estimated cost to construct all of the projects on the list exceeds the available SB 1 funding. Certain overlay locations will be included in the contract(s) as additive alternate bids, which can either be awarded with or omitted from the construction contract(s) depending on the bids and upon available funding. The list of overlay locations is included in the RIP as Appendix D.
The project list does not limit the flexibility of an eligible city or county to fund projects in accordance with local needs and priorities so long as the projects are consistent with RMRA priorities as outlined in SHC, Section 2030(b) [SHC, Section 2034(a)(1)]. Consequently, the list does not necessarily reflect the projects that will ultimately be performed with SB 1 funding. In the item to recommend Board adoption of an SB 1 list each year, the Department will report regarding which projects have actually been pursued with the SB 1 funding for the preceding year.
Summary
The RIP is a document that is intended to be a guide to your Board’s road priorities and the Department’s road program development, as well as for the Administrative Office, businesses, economic development community, utility companies, and the public at large. It should be viewed as a living document that will be adjusted over time to match revenues to system demands, and to allow your Board to respond to unforeseen needs or revenues.
REFERENCE MATERIAL:
BAI #50, April 17, 2018
BAI #IV, September 18, 2017
BAI #7, August 22, 2017
ATTACHMENTS INCLUDED AND/OR ON FILE:
Road Improvement Program
CAO ANALYST:
Sonia M. De La Rosa