CC 2024-01-23_12.a. Pavement Priotiy Project List_2024Item 12.a.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director
BY: Shannon Sweeney, City Engineer
SUBJECT: Consideration of the 2024 Pavement Priority Project List and Finding
the Project is Not Subject to Environmental Review Under the
California Environmental Quality Act, State Guidelines Section 15301
DATE: January 23, 2024
SUMMARY OF ACTION:
Review and approve a priority list of streets to include in the 2024 Pavement Management
Program (PMP) and find that action exempt under CEQA 15301.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Budgeted funds of $5,785,753 are available for the PMP budget in FY 2024-25. See Table
1 for revenue sources. Table 2 lists the expected expenditure breakdown assuming that
the final budget for this project is limited to only the existing budgeted funds.
Additional funds may become available for this project as e xisting streets projects finish
and a reserve fund policy is developed. Sufficient funds exist at this time to complete the
top three projects listed in Table 3. City staff is requesting the City Council authorize the
City Manager or their designee with the ability include additional pavement maintenance
elements to maximize the project size and cost efficiency if more funds become available.
Table 1 – PMP Budget
Revenue Source
FY 2024-25
Budget
FY 2024-25
Carryover
2024 PMP
Project Total
General Fund 2,360,000 (0) 2,360,000
SB 1 450,000 (0) 450,000
Sales Tax Fund 2,062,870 556,135 2,619,005
CDBG 60,000 56,749 116,749
Sidewalk Sales Tax Fund 240,000 - 240,000
Total 5,172,870 612,883 5,785,753
Page 50 of 56
Item 12.a.
City Council
Consideration of the 2024 Pavement Priority Project List and Finding the Project is
Not Subject to Environmental Review Under the California Environmental Quality
Act, State Guidelines Section 15301
January 23, 2024
Page 2
Table 2 – FY 2024-25 PMP Expected Expenditure Breakdown
RECOMMENDATION:
1) Review and approve a priority list of streets for the 2024 Pavement Management
Program; 2) Authorize the City Manager or designee to choose the remaining projects on
the list to maximize the project size and cost efficiency of more funds become available,
along with other minor work associated with pavement maintenance, such as striping,
concrete work, and pedestrian improvements; and 3) Find this project is categorically
exempt from the California Environmental Quality Act (“CEQA”) under the Class 2
exemption, which applies to the replacement or reconstruction of existing structures and
facilities where the new structure will be located on the same site as the structure replaced
and will have substantially the same purpose and capacity as the structure replaced.
(State CEQA Guidelines, § 15301.)
BACKGROUND:
The City of Arroyo Grande is responsible for over 73 miles of streets within its boundaries.
On February 14, 2017, the City Council adopted the 2016 Update to the Pavement
Management Plan (PMP) and endorsed the “Critical Point Strategy” (CPS) methodology
for the City’s Pavement Management System (PMS). The CPS approach selects the road
segments for repair or resurfacing that are at a “critical point” of deterioration. The critical
point is a point located on the pavement deterioration graph that indicates a more
expensive maintenance or rehabilitation approach will be needed in the near future.
The focused critical point strategy makes sense when the City has minimal funding and
does not have the latitude to consider other project efficiencies like economies of scale,
project competitiveness, and project management. Since the adoption of the 2016 PMP
and until 2022, the City applied approximately $1.25 million per year to streets
maintenance and repair.
Expenditures FY 2024-25
Budget
Construction 4,790,230
Construction - Public Works 100,000
Construction Contingencies 479,023
Contract Admin 22,500
Testing 40,000
Design/Survey 350,000
Studies 4,000
Total 5,785,753
Page 51 of 56
Item 12.a.
City Council
Consideration of the 2024 Pavement Priority Project List and Finding the Project is
Not Subject to Environmental Review Under the California Environmental Quality
Act, State Guidelines Section 15301
January 23, 2024
Page 3
On April 26, 2022, the City Council adopted the 2022 PMP. The plan identifies
recommended street work assuming a continued annual budget of $1.25 million per year
and applying the CPS.
On November 22, 2022, City Council approved maintenance and repair work for the 2022
PMP. More than the base amount of $1.25 million was available due to prudent financial
stewardship, carryover, and excess reserves. As a result, the City was able to complete
additional work, including an overlay of the entire Equestrian Way neighborhood that had
not previously been identified for upcoming (within the 10 year planning horizon) repair in
the 2022 PMP but that had significantly deteriorated asphalt.
ANALYSIS OF ISSUES:
On May 23, 2023, the City Council directed staff to apply $3 million from excess reserves
in addition to the base amount of $1.25 million to pavement maintenance and repair. Staff
value engineered the information available in the 2022 PMP to provide a recommended
list of work to be done with available funds. In addition to CPS, staff considered other
factors, including the cost efficiency of applying only one kind of maintenance treatment,
the management and staging efficiency of focusing on locations on a neighborhood-basis
rather than a single street-basis, economies of scale that arise as a result of one large
single project rather than multiple small ones, and the bidding competitiveness that occurs
when the City bids a larger project.
To better align the magnitude of the upcoming pavement project with existing and future
potential available funds, City staff secured a contractor at the end of 2023 to perform
deflection testing at various locations throughout the city. Testing locations were identified
using the map shown in Figure 1. Note that Leisure Gardens and Sunrise Terrace were
removed from consideration because they are private streets. The Equestrian Way
neighborhood is crossed out because pavement maintenance was completed in 2023.
The remaining locations were identified because there is a significant grouping of
deteriorating streets within neighborhoods that appeared to be candidates that may
benefit from the same pavement treatment.
The deflection testing indicated that all locations were appropriate for an overlay
treatment except for Station Way and a large part of the Woodland neighborhood. Results
of testing in both locations indicated the need for heavy rehabilitation in the form of full
depth reclamation. The cost estimates reflect the treatment recommended based on
deflection testing.
At this time, City staff does not anticipate that a streets project of this magnitude in size
or budget will be possible in future years without an infusion of additional revenue that
can be allocated to PMP projects. Funding for upcoming years is likely to revert to and be
limited to $1.25 million plus any remaining carryover from previous years’ projects.
Page 52 of 56
Item 12.a.
City Council
Consideration of the 2024 Pavement Priority Project List and Finding the Project is
Not Subject to Environmental Review Under the California Environmental Quality
Act, State Guidelines Section 15301
January 23, 2024
Page 4
This year, City staff is recommending that Community Development Block Grant (CDBG)
and sidewalk funds be applied to the same project as the street funds. As seen in Table
3, an estimated $1,308,000 of this project will be dedicated to curb ramp improvements.
Applying street and sidewalk funding together will create a more cost-effective project.
Figure 1 – Testing Locations
Table 3 contains the recommended priority for streets work for FY 2024 -25. The total cost
estimate column includes all facets of project costs including design, inspection, and
construction. The top three locations can be funded within the existing available funding
for FY 2024-25. City staff requests the latitude to base the next location on the list to
maximize the use of available funding. For instance, if $3 million is available, Woodland
Page 53 of 56
Item 12.a.
City Council
Consideration of the 2024 Pavement Priority Project List and Finding the Project is
Not Subject to Environmental Review Under the California Environmental Quality
Act, State Guidelines Section 15301
January 23, 2024
Page 5
should be considered next, whereas if only $1 million available, Station Way would be
next.
If the Council approves the PMP, staff will move forward with completion of the Plans,
Specifications, and Estimate (PS&E) and return to Council in early 202 4 with a request to
approve the PS&E and authorize solicitation of bids. Once bids are received and
reviewed, staff will present Council with a Bid Award recommendation in winter of 202 4.
Construction is anticipated to begin in Spring of 202 5 and is estimated to be completed
by the end of 2025.
Table 3 – Recommended Priority List
ALTERNATIVES:
1. Approve staff’s recommendation that the City Council review and approve a priority
list of streets for the 2024 Pavement Management Program and authorize the City
Manager or designee to choose the remaining projects on the list to maximize the
project size and cost efficiency if more funds become available, along with other minor
work associated with pavement maintenance, such as striping, concrete work, and
pedestrian improvements, and find the action exempt from CEQA pursuant to CEQA
Guideline Section 15301;
2. Do not approve staff’s recommendation;
3. Modify staff’s recommendation; or
4. Provide other direction to staff.
ADVANTAGES:
The recommended list adheres to the concept of CPS in that projects are prioritized in
order of the savings they provide. The top three recommended locations, the Stagecoach
neighborhood, Rancho Grande Phase 1, and the Brighton neighborhood, provide
Cost Based Cost Based Total Cost Cumulative Savings
on PMP on Testing Estimated Cost from PMP
Stagecoach $5,658,000 $2,266,000 44 $528,000 $2,794,000 $2,794,000 $2,864,000
Rancho Grande Ph 1 $2,874,000 $1,319,000 10 $120,000 $1,439,000 $4,233,000 $1,435,000
Brighton $2,518,000 $1,133,000 20 $240,000 $1,373,000 $5,606,000 $1,145,000
Station Wy $953,000 $664,000 4 $48,000 $712,000 $6,318,000 $241,000
Andre Dr $687,000 $395,000 8 $96,000 $491,000 $6,809,000 $196,000
Woodland $2,583,000 $2,317,000 20 $240,000 $2,557,000 $9,366,000 $26,000
Via La Barranca $649,000 $698,000 3 $36,000 $734,000 $10,100,000 -$85,000
I $15,922,000 $8,792,000 109 $1,308,000 $10,100,000 $10,100,000 $5,822,000
Cost of Curb
RampsLocation# of Curb
Ramps
Page 54 of 56
Item 12.a.
City Council
Consideration of the 2024 Pavement Priority Project List and Finding the Project is
Not Subject to Environmental Review Under the California Environmental Quality
Act, State Guidelines Section 15301
January 23, 2024
Page 6
significant savings by applying an overlay now rather than waiting until rehabilitation is
necessary. Savings to the City by performing this work now are estimated to be
$5,444,000. The total cost of proceeding with pavement maintenance in these three
neighborhoods is estimated at $5,606,000, which is within the existing available b udget
of $5,785,753.
This is a sizable project that will take advantage of economies of scale. The top three
projects involve only overlay, which reduces the number of subcontractors needed to
complete the job and leads to further savings. The projects are grouped by neighborhood
to facilitate encroachment permits and traffic control plans. All th e work identified can be
bid efficiently as a single project rather than multiple small projects. Finally, the size of
this project makes it appealing to more potential bidders, which provides greater
competitiveness.
Average citywide PCI will rise, as the PCI for all of the streets recommended for treatment
are below the 2022 average of 56.
DISADVANTAGES:
Restructuring the program this year to maximize the use of available funding by focusing
on a specific treatment type means that some maintenance work previously identified in
the 2022 PMP will be deferred for one or more years so that each year’s project
maximizes a single treatment application. City staff conferred with the pavement
consultant to verify that doing so should not result in additional future treatments for these
streets because of the deferment.
ENVIRONMENTAL REVIEW:
The project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guideline Section 15301 covering the repair and maintenance of
existing streets, sidewalks, gutters and similar facilities.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Page 55 of 56
MEMORANDUM
TO: City Council
FROM: Shannon Sweeney, City Engineer
SUBJECT: Supplemental Information
Agenda Item 12.a. – January 23, 2024 City Council Meeting
Consideration of the 2024 Pavement Priority Project List and Finding
the Project is Not Subject to Environmental Review Under the
California Environmental Quality Act, State Guidelines Section 15301
DATE: January 19, 2024
There was an error in the dates listed in paragraph 2 of page 5 in the staff report. This
has been corrected and should read as follows:
If the Council approves the PMP, staff will move forward with completion of the
Plans, Specifications, and Estimate (PS&E) and return to Council in early 2024
with a request to approve the PS&E and authorize solicitation of bids. Once bids
are received and reviewed, staff will present Council with a Bid Award
recommendation in winter of 2024. Construction is anticipated to begin in Spring
of 2025 and is estimated to be completed by the end of 2025.
cc: City Manager
Assistant City Manager/Public Works Director
City Attorney
City Clerk
City Website and Public Review Binder
Enc
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