Agenda - Public Works Committee - 09/17/2024

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case. The proposed 2025 — 2034 CIP includes reconstructing 49.24 miles (26.8-percent) of City streets and overlaying an additional 27.36 miles (14.9-percent) of City streets. These street segments may be seen on the draft 2025 — 2034 CIP Map, attached to this case. Potential Project not within the Capital Improvement Program: Pavement deterioration rates can vary significantly for many factors which were previously discussed. In general, study has shown deterioration to be gradual for many years, and then to accelerate beyond the acceptable level in a short span. The goal of the PMP is to perform maintenance activities to minimize the gradual deterioration, and an overlay treatment before deterioration has hit the point of no return. As previously discussed, this would be to overlay a pavement when it's still rated a 6 or higher. During 2024 PASER evaluations, Staff found several segments of streets with PASER values between 5 and 6, which are not included in the proposed CIP. It's anticipated that a street rated a 5 in 2024 would fall to a 4 or below within the next 5 — 10 years, if not sooner. Staff identified 26 subdivisions totaling 20.7 miles which had 2024 PASER values of 5 on at least one of the street segments within the subdivision. Staff anticipate these streets will need some type of significant rehabilitation (street reconstruction / full -depth reclamation / reclamation rehab.) project within the next 5 — 10 years, and/or require significant pavement patching. Assuming typical reconstruction or full -depth reclamation projects are appropriate for these streets, Staff estimates $18,600,000 in funding is needed for these potential improvements. These subdivisions are summarized in the map and spreadsheet attached to this case. It should be noted that all the street segments identified were neighborhood streets, any MSA collector streets rated 6 or below are accounted for within the proposed CIP. Notification: Notification is not required for this case. Time Frame/Observations/Alternatives: Timeframe: Staff estimates up to 30 minutes will be needed to present this case and respond to questions. Observations: It's important to keep in mind that the CIP is a funding planning tool and no projects are authorized until City Council approves them. Staff recommends street reconstructions and overlay improvements with two main goals in mind; replacing pavement sections in poor condition, and proactively maintaining pavement sections in fair to good condition so they don't deteriorate below acceptable conditions. The timing of projects is necessarily based on available funding and realistic Staff workload. Funding Source: Funding for the Pavement Management Program primarily comes from Pavement Management Funds (General Tax Levy) and Municipal State Aid Funds. Additional sources of funding come from Public Improvement Revolving Funds, TIF District funds, and developer / assessment funds in some circumstances. Pavement Management Cash Flow: The Pavement Management Cash Flow spreadsheet is attached to this case for reference. Starting in 2022, annual dollars, from the General Tax Levy, are placed into the Pavement Management Fund. Additionally, in 2022 $11,903,744 bond dollars were placed into the fund to help catch up with necessary street reconstructions and overlays. The bond dollars are proposed to be used up by 2026. In 2026, approximately half of the proposed $5,420,000 PM budget will be bond dollars and half will be built up general tax levy dollars. The cash flow is anticipated to break even at 2027, then begin running an increasing deficit starting in 2028. By 2034, the proposed deficit is $3,762,000 per the attached 2025 — 2034 CIP Breakdown. Please keep in mind this document is a draft and still in need of review by the City's finance director.