HomeMy WebLinkAbout05/21/1998, B-2 - UPDATED COUNTYWIDE PAVEMENT MAINTENANCE & REHABILITATION NEEDS REPORT aru Luis ObI sp , Coon c1l of C ,yammer is -
10_� Arroyo Grande
Regional Transportation Planning Agency A,ascadeno
/ Grover Beach
Metropolitan Planning Organization Morro o bas
Congy P
estion Management Agency P"°x°RoblesRoblesT u ismo Beach
State Census Data Affiliate San Luis Obispo
.._..old L.DeCarli•Ecmutive Director State Luis Obispo County
DATE: May 13, 1998
TO: Joint Meeting of the Cities and the County
All Council Members & Supervisors
FROM: Ronald L. DeCarli, Executive Director
SUBJECT: Updated Countywide Pavement Maintenance & Rehabilitation Needs Report
Attachment A to this transmittal.is an update of the original Countywide Pavement Maintenance
and Rehabilitation. Needs report that was completed by SLOCOG staff in April, 1997.
Attachment B is the final report on the meetings of the Supplemental Transportation Funding
Committee which was established at a joint meeting of the seven. Cities in June, 1997. . These .
reports are being brought before this meeting as a result of a recommendation made by the .
Mayors& Managers group that it is an issue of continuing concern to the Cities.and the County
that should be addressed. .
This update of the road maintenance needs report incorporates data from recently completed
road condition inventories and adoption of maintenance strategies by the County. of San Luis
Obispo, and the cities of Arroyo Grande, Morro Bay and San Luis Obispo..
The. major finding of this update is that the total cost to cant' out all currently identified
maintenance and rehabilitation work ranges from a low of about $35.5 million to a high of about
$93 million. The original report, prior to the update of the inventory completed by the County,
and the Cities Arroyo Grande, Morro Bay and San Luis Obispo, estimated that the cost.of all .
required maintenance ranged from about $52 million to about $153million. This reduction in
the estimated cost is mainly due to the availability of actual inventory data on road conditions.
Based on staff review of projected budgets. of local jurisdictions for street and road
maintenance, none of the jurisdictions in the region is currently able to carry out the entire
current backlog of'needed road rehabilitation work identified on either tables 3 or 4 within.the
next few years.. Those jurisdictions with an adopted Pavement Management Plan(PMP) are
generally working with.the goal of improving the condition of their roads to a certain level within
ten years. So far, only the city of San Luis Obispo has adopted a plan which provides a
significant increase in funding for maintenance and rehabilitation; increased from about .
$750,000 per year to $1.5 million. For most of the other jurisdictions, there is still a need to
significantly increase funding to accomplish all needed work.
Mayors Group Recommendation: Re-Establish Supplemental Transportation Funding
Committee to reviewupdated information and
recommend a course of possible action.
1 150 Osos Street. Ste. 202. San Luis Obispo.CA 93401 ®Tel. (805) 781-4219 A Fax. (805)781-5703
E-mail. sloco,a@slonet.oro O Internet. http://www.slonet.orJ—ipslocog
Attachment A
San Luis Obispo Council of Governments
Draft Countywide Pavement Maintenance & Rehabilitation Needs
Report Update
(May, 1998)
This is an update of the original report which was completed in April, 1997. It incorporates data
coming from the completion of road condition inventories and adoption of maintenance
strategies by the County of San Luis Obispo, and the cities of Arroyo Grande, Morro Bay and
San Luis Obispo.
Study Objective
To provide a comprehensive, countywide analysis of current local street and road pavement
maintenance and rehabilitation needs to assist local jurisdictions in developing a strategy to
address the continuing decline in the availability of adequate funding for this purpose.
Summary of Problem
During the past decade concern has grown throughout the State of California and the nation
over the continuing deterioration of our transportation infrastructure. In general, this has
occurred as our transportation system has continued to age as funding for maintenance and
rehabilitation has declined. In California the decline in funding has been especially serious due
to a combination of unanticipated natural and man made events.
When constructed, roads are designed to last twenty years, but their life can typically be
extended to forty years or more with careful maintenance. To do so requires regularly sealing
cracks, patching potholes and deteriorated areas, chip sealing the entire surface every five
years, and applying a thin (11") or thick (2") paving overlay after ten years.
Without an active maintenance program, the typical roadway surface will eventually deteriorate
to a point where it must be reconstructed at a significant cost. Preventive maintenance and
rehabilitation can, however, be carried out at a relatively low cost. Patching and sealing will
typically cost no more than one cent a square foot (for a gross area). A one inch overlay
project may only cost thirty cents a square foot. If reconstruction is necessary it may cost at
least$7 a square foot.
Background
There are 1,825 miles of local roads in the San Luis Obispo region:1,284 miles are the
responsibility of the County and 541 the cities (see Table 1). During the past 10-20 years the
amount of funding available to maintain these roads has declined significantly. This situation
was primarily due to the general decline in overall community budgets which began with the
passage of Proposition 13 in 1978 and later extended during the California recession which
occurred between 1990 and 1995.
For example, in FY 1983/84 the County of San Luis Obispo expended over $7 million for road
maintenance purposes, of which about $5 million was general fund revenue. As other needs
became a higher priority general fund revenue was gradually withdrawn from the streets and
roads budget, until Fiscal Year 97/98 when $1.34 million was provided for reconstruction of
arterials rated 'bad'.
This February (1998), the County Board of Supervisors accepted the findings of an updated
road condition inventory which had just been completed by County Engineering, and adopted a
Pavement Management Plan (PMP) to guide the future maintenance of County roads. The
staff recommendation was to provide $3 million annually to carry out the program. The Board
adopted an overall standard of maintenance for County roads. The proposed County budget is
expected to provide a total of about $2.5 million for preventative maintenance in the FY 98/99
budget as a one-time measure. It is unknown at this time whether there will be a continuation
of this level of funding in the future.
For the cities during this period, the reduced ability to provide adequate funding for
maintenance was not as significant, but was still serious. The city of Atascadem for example,
has the largest amount (130) of road miles of all seven cities and a relatively limited revenue
basis. Other cities, such as Arroyo Grande, Grover Beach, and Morro Bay, which have a
relatively small amount of road miles, simply did not have the ability to provide adequate
funding for road maintenance. Some cities, such as Paso Robles which experienced
considerable growth during the past ten years, or the city San Luis Obispo, which has benefited
from being the long established government and commercial center of the region, were
generally able to maintain adequate funding for. street and road maintenance. The
maintenance problem for these two cities has continued to grow, however, along with that of the
other jurisdictions. The extent of the problem was exposed most recently in the City of San Luis
Obispo, where in April, 1998,'the City adopted an updated Pavement Management Plan (PMP),
which included an additional $675,000 for an enhanced pavement maintenance effort in the FY
98/99 budget. This will provide about $1.5 million in total funding for maintenance annually
over the next ten years. Adoption of this plan was in recognition that there had been a decline
in the condition of roads throughout the city because less that adequate funding had been
provided for maintenance.
Study Methodology
Road condition inventories and Pavement Management Plans (PMP's) for those jurisdictions
that had completed one within the last few years were assembled and the data reviewed to
prepare three tables described below. As of the preparation of the first report, completed in
April, 1997, five of the seven cities in the region did not have a recent inventory (one which had
been completed within the last five years). These were the cities of Arroyo Grande, Pismo
Beach, Morro Bay, Paso Robles, and San Luis Obispo. In addition, the County of San Luis
Obispo had an inventory that had been completed in 1989. Inventories for the Cities of Arroyo
Grande, Morro Bay and San Luis Obispo, and the County were subsequently completed.
It is important to understand that the data from these inventories is a 'snapshot' in time of the
roadway conditions. As such the findings depicted on Tables 1-4 only represent the situation
as it exists at the time of the inventories. The condition of a road will deteriorate over time if it
is not maintained based on appropriate engineering standards.
Table 1: Current Pavement Condition - This table summarizes pavement conditions for local
roads in all jurisdictions. The inventories were basically based on the following scoring system:
roads with scores from 0-20 were rated 'bad', scores of 21-40 were rated 'poor, scores from
41-60 were rated 'fair', scores rates 61-80 were rated 'good', and scores from 81-100 were
rated 'best. The scores of the roads in cities with completed inventories were averaged by
classification to estimate conditions in the cities of Paso Robles and Pismo Beach.
Table 2: Currently Required Work - This table presents estimates of necessary road
maintenance and rehabilitation work based on the condition data contained in Table 1. To
develop an estimate of the total current cost of providing the identified road maintenance and
rehabilitation staff converted the road condition data into specific work tasks based on
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standardized methods: road miles rated 'best' require no current maintenance; miles rated
'good' or 'fair' typically require sealing and/or patching; miles rated 'poor typically require at
least a thin (1") overlay; and miles rated 'bad' typically require at least a thick (2") overlay.
Some miles rated 'bad' will, if not properly maintained or rehabilitated, eventually require full
reconstruction. Most jurisdictions apply either a one or two inch overlay based on the condition
of the road. The County Engineering Department, however, uses a one and one-half inch
overlay as its standard.
Table 3: Cost of Currently Required Maintenance (Low cost scenario) - This table presents
estimates of the direct cost (including materials, equipment and labor) to carry out the currently
estimated backlog of maintenance and rehabilitation as described in Tables 2. The costs used
on these tables, which are based on contracts let by the City of Grover Beach, and as such are
a low cost scenario which may not represent true conditions for all situations. This table shows
the breakdown of total expenditures by category. The cost of crack sealing and patching used
was 3 cents per square foot; thin (1") overlays $1 dollar per square foot; and thick (2") overlays
$1.50 per square foot. For each maintenance or rehabilitation task an average twenty-five (26)
foot wide road section was used for calculating the total cost. This width was chosen by
averaging available road width data from each the jurisdictions in the region.
The total estimated cost of all maintenance work in the region (low cost scenario), based on the
standardized methodology used in this report, is about $35.5 million. The original report, prior
to the update of the inventory completed by the County, and the Cities Arroyo Grande, Morro
Bay and San Luis Obispo, estimated that the cost of all required maintenance was about $52
million. It should be understood both estimates are 'snapshots' of the total, continuing road
maintenance and rehabilitation needs in the region, and that the actual cost for any particular
jurisdiction may vary depending on area specific labor and materials costs.
Table 4: Cost of Currently Required Maintenance (Standard cost scenario) - This table is
identical to table 3 except for the fact that the costs (materials, equipment and labor) are based
on a "Standard Cost Scenario" derived from information provided by County Engineering)which
assume a "high" or "worst case" cost for each of the needed maintenance and rehabilitation
tasks. The cost of crack sealing and patching was increased from 1 cent per gross square foot
to 3 cents; thin (1") overlays from 30 cents per square foot to $1 dollar; and thick (2") overlays
from 60 cents per square foot to$1.50.
The total estimated cost to cant'out the currently identified maintenance and rehabilitation work
based on the standardized methodology used in this report is about $93 million. The original
report, completed prior to the update of the inventories completed by the County, and the Cities
Arroyo Grande, Morro Bay and San Luis Obispo, found that the cost of all required
maintenance was about $153 million. As with the low cost scenario, it should be understood
both estimates are 'snapshots' of the total, continuing road maintenance and rehabilitation
needs in the region, and that the actual cost for any particular jurisdiction may vary depending
on area specific labor and materials costs.
Financial Conclusions - Based on staff review of projected budgets of local jurisdictions for
street and road maintenance, none of the jurisdictions in the region is currently able to carry out
the entire current backlog of needed road rehabilitation work identified on either tables 3 or 4
within the next few years. Those jurisdictions with an adopted Pavement Management Plan
(PMP) are generally working with the goal of improving the condition of their roads to a certain
level within ten years. So far, only the city of San Luis Obispo has adopted a plan which
provides a significant increase in funding for maintenance and rehabilitation; increased from
about $750,000 per year to $1.5 million. For most of the other jurisdictions, there is still a need
to significantly increase funding to accomplish all needed work. r
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In the short term it will be necessary for each of the jurisdictions to carry out a pavement
management program that focuses on preventive maintenance while also carrying out more
extensive rehabilitation projects on the most seriously deteriorated road segments. By focusing
on low cost crack sealing and patching it is possible to stabilize the condition of many road
segments, and at the same time prioritize overlay projects so that the worst road segments are
rehabilitated first.
The analysis of options for rehabilitating the road system of the City of Grover Beach conducted
by its Community Development Director showed that it would be necessary to increase it
budget from the current $80,000 to $400,000 annually for a period of twenty years to bring 72%
of its roads up to an acceptable condition rating (based on the methodology contained in the
PMSPro computerized pavement management program). Similar conclusions about funding
can be made for the other smaller jurisdictions, including the cities of Arroyo Grande, Pismo
Beach and Mono Bay. For the cities of Atascadero and Paso Robles the financial implications
are somewhat more extensive, although the City of Paso Robles appears to have more
resources than Atascadero.
Condition Summary by Jurisdiction - Following are summaries of the estimated pavement
conditions of roadways in each jurisdiction in the region (see Table 1). This includes a
summary of: standard based work needed to maintain and rehabilitate the roads based on their
current estimated condition (see Table 2); current estimated costs to complete required work
(see Table 3); and a brief review of the current funding situation. Two scenarios for estimating
costs were prepared: a low cost scenario based on actual costs for recent contracts let by the
City of Grover Beach in 1996, and a higher "standard cost" scenario based on regionwide and
state estimates of generally expected costs.
Arroyo Grande -The City has 60 miles of roads, 3 percent of all local roads in the region. An
inventory of road conditions and a report were completed in late 1997. This inventory showed
that current estimated road conditions are as follows: 46% of the roads in the City (27 miles)
are in 'good' or 'best' condition, currently requiring no maintenance or rehabilitation; 6% (4
miles) are in 'fair condition, requiring crack sealing and patching; 9% (5 miles) are in 'poor'
condition, requiring a thin (1") overlay; and 39% (23 miles) are in 'bad' condition, requiring a
thick (2") overlay.
The total estimated current cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from about $2 million (Table 3) to about $5 million (Table 4). The current City
budget for this type of work is $30,000. The adopted maintenance plan includes about
$250,000 per year is spending between FY 1998/99 and 2002/2003. While this is a significant
increase over the previous funding level, SLOCOG staff estimate that a further increase in
funding will be necessary to accomplish the necessary road maintenance and rehabilitation
work identified in the adopted Pavement Management System Plan.
Atascadero - The City has 140 miles of roads, 8 percent of all local roads in the region.
Currently (updated) estimates of road conditions, based on final data from an inventory
completed in late 1996, are as follows: 17% of the roads in the City (24 miles) are in 'good' or
'best condition, currently requiring no maintenance or rehabilitation; 23% (32 miles) are in `fair
condition, requiring crack sealing and patching; 15% (21 miles) are in 'poor condition, requiring
a thin (1") overlay; and 45% (63 miles) are in 'bad' condition, requiring a thick (2") overlay.
The total current estimated cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from nearly $6 million (Table 3)to about$15 million (Table 4). The proposed
road maintenance and rehabilitation budget for FY 1998199 is about $550,000, of which about
$400,000 is carryover from the previous Fiscal Year due to the fact that a certain amount of
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work could not be carried out because of weather conditions.
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SLOCOG staff estimate that a significant increase in funding for road maintenance and
rehabilitation will be necessary to bring deficient roads in the City of Atascadero up to an
acceptable pavement rating.
Grover Beach - The City has 50 miles of roads, 3 percent of all local roads in the region.
Current estimated road conditions, based on an inventory completed in March, 1996, are as
follows: 61% of the roads in the City (31 miles) are in 'good' or 'best' condition, currently
requiring no maintenance or rehabilitation; 10% (5 miles) are in `fair' condition, requiring crack
sealing and patching; 15% (8 miles) are in 'poor' condition, requiring a thin (1") overlay; and
14% (7 miles)are in 'bad' condition, requiring a thick (2") overlay.
The total estimated current cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from nearly $900,000 (Table 3) to nearly $2.5 million (Table 4). The
proposed FY 1998/99 budget for maintenance and rehabilitation is between $150,000 and
$200,000. City staff have estimated that a significant increase to $400,000 annually in funding
for road maintenance and rehabilitation will be necessary to bring deficient roads up to an
acceptable pavement rating within the next twenty years.
Morro Bay - The City has 48 miles of roads, 3 percent of all local roads in the region. Current
estimated road conditions, based on an inventory completed in April, 1997, are as follows: 45%
of the roads in the City (21 miles) are in 'good' or 'best condition, currently requiring no
maintenance or rehabilitation; 17% (8 miles) are in 'fair' condition, requiring crack sealing and
patching; 10% (5 miles) are in 'poor' condition, requiring a thin (1") overlay; and 28% (13 miles)
are in 'bad' condition, requiring a thick (2") overlay.
The total estimated current cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from about $1.2 million (Table 3) to about $3.2 million (Table 4). The
estimated City budget for this type of work was $80,000. Based on the current City budget for
pavement maintenance and the locally estimate of road conditions it will take 14 to 37 years to
accomplish all work identified in Tables 3 or 4. SLOCOG staff conclude that a significant
increase in funding for road maintenance and rehabilitation will be necessary to bring deficient
roads up to an acceptable pavement rating within the next twenty years.
Paso Robles - The City has 100 miles of roads, 5 percent of all local roads in the region.
Current estimated road conditions based on an ongoing analysis are as follows: 45% of the
roads in the City (45 miles) are in "good" or"best" condition, currently requiring no maintenance
or rehabilitation; 21% (21 miles) are in fair condition, requiring crack sealing and patching; 12%
(12 miles) are in medium condition, requiring a thin (1") overlay; and 22% (22 miles) are in 'bad
condition, requiring a thick (2") overlay.
The total estimated current cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from about$2.5 million (Table 3) to about$6.7 million (Table 4). The last City
budget for this type of work was about $340,000. .Based on the current City budget for
pavement maintenance and the locally estimate of road conditions it will take 7 to 18 years to
accomplish all work identified in Tables 3 or 4.
SLOCOG staff estimate that a moderate increase in funding for road maintenance and
rehabilitation will be necessary to bring deficient roads up to an acceptable pavement rating
within the next twenty years.
Pismo Beach - The City has 33 miles of roads, 2 percent of all local roads in the region.
Current estimated road conditions based on an average of the conditions in the cities that have
completed an inventory, are as follows: 43% of the roads (14 miles) are in 'good' or 'best
condition, currently requiring no maintenance or rehabilitation; 19% (6 miles) are in 'fair'
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condition, requiring crack sealing and patching; 11% (4 miles) are in 'poor condition, requiring a
thin (1") overlay; and 26% (9 miles) are in 'bad' condition, requiring a thick (2") overlay. The
total estimated current cost of doing needed maintenance and rehabilitation work identified on
Table 2 ranges from about $900,000 (Table 3) to about $2.3 million (Table 4). The current City
budget for this type of work is about $60,000. Based on the current City budget for pavement
maintenance and the locally estimate of road conditions it will take 13 to 32 years to accomplish
all work identified in Tables 3 or 4.
SLOCOG staff estimate that a significant increase (approximately equal to what has been
proposed for the City of Grover Beach) in funding for road maintenance and rehabilitation will
be necessary to bring deficient roads up to an acceptable pavement rating within the next
twenty years.
City of San Luis Obispo - The City has 110 miles of roads, 6 percent of all local roads in the
region. Current estimated road conditions based on an inventory completed in April, 1997, are
as follows: 28% of the roads (31 miles) are in 'good' or 'best condition, currently requiring no
maintenance or rehabilitation; 58% (64 miles) are in 'fair condition, requiring crack sealing and
patching; 8% (9 miles) are in 'poor condition, requiring a thin (1") overlay; and 6% (7 miles) are
in 'bad' condition, requiring a thick (2") overlay. The city of San Luis Obispo has adopted a
maintenance standard that ,varies from that used for this report. It requires that roads rated
'bad' be reconstructed rather than only receive a two inch overlay, roads rated 'poor receive a
two inch overlay, roads rated 'fair receive a one inch overlay, and for roads rated 'good' or best
to receive a seal coat.
Based on the maintenance and rehabilitation standard used in this report, the total estimated
current cost of doing needed maintenance and rehabilitation work identified on Table 2 ranges
from about $1 million (Table 3) to about $2.8 million (Table 4). Because the City uses a more
aggressive standard, the actual value of total needed maintenance and rehabilitation is much
higher. The adopted FY 1998/99 budget for this type of work is $1.5 million.
County of San Luis Obispo - The County has about 1,284 miles of roads, 70 percent of all
local roads in the region, of which only about 1,000 miles are paved.. Current estimated road
conditions based on locally developed data and associated maintenance & rehabilitation costs
(low cost scenario per Table 1) are as follows: 59% of the roads in the County (590 miles) are in
'good' or 'best' condition, currently requiring no maintenance or rehabilitation; 11% (110 miles)
are in 'fair condition, requiring crack sealing and patching; 7% (70 miles) are in 'poor condition,
requiring a thin (17) overlay; and 23% (230 miles) are in 'bad' condition, requiring a thick (2")
overlay. The County actually a one and one-half(1'/2") overlay as its standard.
The total estimated current cost of doing needed maintenance and rehabilitation work identified
on Table 2 ranges from about $21 million (Table 3) to about $55 million (Table 4). This
February (1998), the County Board of Supervisors accepted the findings of an updated road
condition inventory which had just been completed by County Engineering, and adopted a
Pavement Management Plan (PMP) to guide the future maintenance of County roads. The
staff recommendation was to provide $3 million annually to cant' out the program. The Board
adopted an overall standard of maintenance for County roads. The proposed County budget is
expected to provide a total of about $2.5 million for preventative maintenance in the FY 98/99
budget as a one-time measure. It is unknown at this time whether there will be a continuation
of this level of funding in the future.
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Attachment B
MEMORANDUM
DATE: JANUARY, 1998
TO: JOINT CITY COUNCILS MEETING
FROM: BOB REED, CHAIRMAN, SUPPLEMENTAL TRANSPORTATION FUNDING
COMMITTEE
On June 5, 1997 at a special joint meeting of all the City Councils in the region a resolution
proposed by the City of Grover Beach to explore placing a '/z cent sales tax measure on the
November 1998 ballot to be used for street and road purposes was approved. A committee was
established consisting of one elected official and the Administrator from each City and the County.
The committee held a total of three meetings to review the options for additional funding for
transportation purposes, and made a determination at the last meeting not to proceed any further
on this issue at this time.
In the course of the three committee meetings all possible sources of supplemental revenue, and
related issues were reviewed by the committee. Following a detailed discussion of the options
and issues at the first meeting, the committee decided at its second meeting to focus in on an
increase in the sales tax in subsequent meetings. This decision was due to the limited potential
from most funding sources, and legal difficulties which could be expected from the other sources.
At its third (and last) meeting, the committee decided not to proceed with any further meetings to
seek an increase in the sales tax on a countywide basis at this time. This decision was made on
the basis of the understanding that the necessary circumstances to successfully proceed with an
election were not present, and due to the lack of participation by the County in the committee
deliberations.
The original decision to establish a committee to evaluate options for a countywide effort to
increase funding for local street and road purposes was based largely on the findings in a study
on Local Street and Road Maintenance Needs prepared by Council of Governments staff. This
study found that there is a significant backlog of road maintenance and rehabilitation needs, and
that current local revenues are not adequate to pay for all the needed work. Following are
summaries of the information presented at the three committee meetings.
Steering Committee Meeting#1 (August 218)
Agenda - This meeting was focused on a general review of the problem of providing adequate
funding for local street and road maintenance, the legal requirements to increase funding, and
public attitudes and opinions.
Problem Definition -The "problem" is made up of two parts. The first is the estimated extent of
local street and road maintenance needs, and the second is the availability of funding to address
the need. The Countywide Pavement Maintenance and Rehabilitation Needs report, presented to
the SLOCOG Board in June, 1997, showed that there is a $50 to $140 million "backlog" of
additional maintenance needed to bring local streets and roads up to"good" or"best" condition.
The committee reviewed the Annual Report of Financial Transactions Concerning Streets and
Roads, compiled by the State Controllers Office in order to see how local jurisdictions using their
street and road funding. This report shows that for the four year period between Fiscal Year
91192 and 94195:
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• A total of$81 million in expert .,.ares was reported for all jurisdictions.
• Of that total, $47 million was for"maintenance" purposes.
• For FY 94/95 this report shows that over$10.8 million, about half of all funds made available
to all jurisdictions in the region was made available to the County of San Luis Obispo for street
and road purposes.
• The remainder, about$10 million,was divided up among the seven cities.
The committee reviewed several other tables on the uses of all Federal, State and local funding
sources. It was noted that
• Of 35 sources of funds for transportation purposes, only twelve can be used for local street
and road purposes,
• Of those twelve only four can be used for road maintenance.
• Of these, two sources, gas tax subventions, and Transportation Development Act (TDA)
funds, are allocated by formula from the State.
• The only other funding sources is the Surface Transportation Program (STP).
It was noted that of the $10.8 million in STP funds projected to be allocated to the region over the
six years of the next surface transportation act, $7.8 million (71%) will be allocated directly to the
cities and county, with the remaining $3 million (29%) to be allocated on a competitive basis. All
available funding was found to be maximized.
Legal Issues - The committee was presented with a review of the legal issues pertaining to an
increase in the sales tax or other tax. This included a review of the history of State legislation and
voter propositions since Proposition 13, that have limited the ability of local jurisdictions to
increase their taxes. These issues included Proposition 62 (1986), which established the
requirement for a two-thirds approval of the electorate for special taxes and majority for general
taxes, and.the Guardino Decision of 1995 by the State Supreme Court which invalidated a sales
tax approved by a majority but less than two-thirds of the voters in Santa Clara County in a 1992
election. The major conclusion drawn by the committee from this presentation was that a"special
tax" (proposed for a specific purpose) requires a two-thirds vote of approval and a °general tax"
which requires only-? majority vote and which cannot identify a particular purpose.
Public Attitudes and Opinions - The committee was presented with a review of the results of
surveys taken by the San Luis Obispo Council of Governments in 1990 and one taken by the
Regional Rideshare Agency in 1997. The 1990 survey by Townsend & company was initiated
by the Council of Governments at a cost of $30,000. This survey was intended to provide
information on public attitudes toward a possible November, 1990 ballot measure proposing a
half cent increase in the sales tax to pay for a range of transportation system improvements
throughout the region. This survey found moderately strong public support for a variety of
possible projects, however the consultants advised against proceeding because it did not show
a sufficient level of support to assure passage based on their experience. Based on this
advice, the SLOCOG Board decided not to proceed with a ballot measure.
The 1997 survey by META Information Services was initiated by San Luis Obispo Regional
Ridesharing as a tracking survey of voter attitudes regarding various transit and ridesharing
programs as a follow-up to a similar survey in 1995.
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These included transportati�., behaviors, interest in potential riuesharing services, and
formation of a transit district. For the 1997 survey, staff for the Region Transit Agency
(SLORTA) and the Council of Government were given an opportunity to add questions of
particular interest to our agencies. Questions were included in the survey on potential support
for a sales tax increase to pay for various transportation system improvements, including local
street and road maintenance.
Following are comparisons of major findings of these two surveys:
• The 1990 survey found that 52% of voters would support a %z cent sales tax increase
measure for important county projects (highway, road, transit and other types); the 1997
survey found that 60.7% would support such a measure.
• The 1990 survey found that 68% of the voters would support a 1/2 cent increase in the
sales tax to pay for road and highway improvements; the 1997 survey found that 59.4%
would support such a measure.
The 1990 survey found that 76% of the voters would support a half cent sales tax to pay for
street and road maintenance when it was part of a measure including a number of other kinds
of projects; the 1997 survey found that 70.5% would be in favor of such a general purpose
measure if it funded a number of other project types. The 1997 survey also found that if a
special tax was proposed for only street and road repair and maintenance it would be supported
by 52.4%.
Steering Committee Meeting#2 (September IV)
Agenda - This meeting was focused on a more extensive and detailed review of the legal
requirements for increasing local revenue, statewide efforts to increase funding, and local and
regional options to increase funding.
Legal Requirements - The focus of discussion on legal issues for this meeting was an
explanation of Proposition 218 (1996), the Bradley-Bums Uniform Local Sales and Use Tax Law,
and the status of the Santa Clara County sales tax increase measure. The committee was
provided with excerpts from a publication of the State Legislative Analyst explaining the
proposition. It is dear from this analysis that the process of raising taxes is more difficult than
before, and that the two-thirds vote for a special tax is required.
Review of the Bradley-Bums Uniform Sales and Use Tax Law focused on the legal and
administrative constraints faced by individual cities seeking an increase in the sales tax. Further
discussion of the legal issues focused on the fact that the 1996 Santa Clara election was being
challenged in court.
County Counsel, Jac Crawford reviewed the issues associated with the court challenge of the
Santa Clara election, focusing on the legal differentiation between a general and special tax. He
urged the committee to take a "wait and see" attitude to seeking a countywide sales tax increase,
and recommended waiting until after the court makes a determination on the Santa Clara
challenge.
Statewide Efforts - This committee reviewed of a proposed ballot measure for the 1998 election
proposed by the California Caucus for Cities and Schools. For the measure to be placed on the
ballot 700,000 signatures must first be gathered. If approved, this initiative would give cities
and counties the option to redistribute up to one cent of the present sales tax from the state on
a per capita basis. This initiative is intended to replace funds taken by the state in recent years.
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The California Caucus initiative v. _ .,d do the following:
1. Allow the governing board of any city, city and county, or county, by adoption of an
ordinance by a two-thirds vote, propose to the voters a redistribution of existing sales tax
revenue.
2. Provide that the method of redistribution would be by a reduction of the state sales tax and
imposition of a local sales and use tax approved by a majority vote of the electorate.
3. Provide that the rate of the local tax would be allowed to reach either %2% in increments of
one-tenth cent or one percent in increments of two-tenths cent over five years.
4. Require that no reduction in the state sales tax shall result in reduction in the amount of the
state's obligation to schools.
5. Require the state to continue to meet its funding obligations according to the State
Constitution without affecting the revenue received by cities and counties from state and
local taxes.
6. Require that the provisions of the act be liberally construed to enable its purpose of
providing voters with the option to redistribute sales and use taxes from the state to local
government on a per capita basis to augment existing revenues.
Local & Regional Options
The committee reviewed summaries of various options which could be pursued to increase
funding, including: the Transient Occupancy Tax (TOT); Local Option Gas Tax; Countywide Sales
Tax; and Assessment Districts.
Transient Occupancy Tax (TOT) - The committee reviewed excerpts from the SLOCOG 1997
Regional Profile which showed the amounts and distribution of revenue for jurisdictions in the
region from 1985 through 1996. It was noted that in Fiscal Year 95/96 a total-of$10.4 million in
revenue was generated from all jurisdictions in the region. If in FY 95/96 all jurisdictions in the
region had increased their tax to 10% Arroyo Grande would have had a 3.5% share of the TOT
collected in the region and revenues would have increased by more than $153,000 to a total of
$383,230; Atascadero would have increase its share by a tenth of a percent and would have
collected nearly $120,000 more in revenue; and the County would have increased its share by
nearly 1.6% and captured nearly$300,000 more in revenue.
Local Option Gas-Tax-The committee reviewed an analysis of this option. Such an increase is
considered a special tax, requiring a two-thirds vote of the electorate for approval. No such
increase has every succeeded.
In addition, a bill (AB 595, Brown) has been introduced in the State Legislature which would
authorize the Metropolitan Transportation Commission (MTC) to seek a 10 cent increase in the
gas tax for imposition in the nine county San Francisco Bay Area. California currently imposes
an excise (gas) tax of 18 cents per gallon on fuel used in highway vehicles. In addition, the
Federal fuel tax is 18.3 cents per gallon, for a total of 36.3 cents per gallon.
It was noted that a one cent increase in the tax would annually produce a total of $1.196.000.
By comparison, a half cent increase in the sales tax is estimated to annually produce a total of
about$11 million annually. The gas tax would have to be increased by 9 cents to produce the
same amount of revenue as a half cent increase in the sales tax.
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Countywide Sales Tax Meabure - The committee was presented witn a detailed review of the
options and issues associated with attempting to seek an increase in the sales tax as either a
general or special tax. Key points are as follows:
• Between 1984 and 1990 the voters of nineteen counties approved sales tax increase
measures for transportation purposes. Of these, fifteen were approved with less that a two-
thirds vote.
• In 1986, Proposition 62 was approved by the voters; it.required a two-thirds voter approval
for special taxes and a majority vote for general taxes.
• In 1987 SB142 (Deddeh) enacted the Local Transportation Authority and Improvement Act
which authorized any county board of supervisors to create or designate a local
transportation authority, and authorized it to impose a retail sales tax of up to 1% with a two-
thirds vote of the authority and subsequent approval of a majority of the voters.
• The issue of majority versus two-thirds vote for special taxes was further clarified in 1995,
when the State Supreme Court, in the Guardino decision, invalidated a sales tax approved
by a majority but less than two-thirds of the voters in Santa Clara County in a 1992 election.
• In 1996, Santa Clara County successfully received voter approval of a .5 % increase in the
local sales tax for general purposes (a major portion of which is likely to be expended on
transportation system maintenance and improvements based on the results of the
companion advisory measure):
a) The Santa Clara County strategy included two complimentary measures (A & B), the
first of which was an "advisory expenditure plan", and the second which actually raised
the sales tax by :5%.
b) Measure A, the advisory expenditure plan, won by 73%; Measure B, which raised the
sales tax by .5 % for general purposes passed by 52%.
c) The Santa Clara measures were presented to the voters without an "official" promise
linking the two measures, thereby minimizing the possibility of successful legal
challenges based on state law concerning imposition of special taxes.
d) The sales tax increase measure has been challenged and a decision is expected by
May, 1998
Assessment Districts-Tom Sullivan, Grover Beach Interim City Manager, reviewed establishing
a countywide assessment district for local street and road maintenance. He noted that
Proposition 218 made this option much more difficult, and noted that other difficulties with
preparation of cost estimates makes it impractical for application on a countywide basis for street
and road maintenance. He recommended against further evaluation of this option. The
committee agreed not to pursue it at this time. Mayor Cathy Novak of Morro Bay motioned to
focus on the local option sales tax and the return of the state sales tax as proposed in the
proposition by the California Caucus for Cities and Schools at a future meeting; seconded by
Mayor Pete Dougall of Arroyo Grande and approved.
Steering Committee Meeting#3 (October 23rd) Final Meeting
Agenda - The focus of this meeting included: a review the results of the first two committee
meetings; the final status of relevant State legislation; conduct a telephone conference call with
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`Max Besler, a principal with a n,-,jr public relations firm which has mai. the development
and promotion of several significant sales tax measures throughout the state of California; and
determine a course of action. Committee delegates from four of the seven cities in the region
were present, including: Atascadero, Grover Beach, Morro Bay, and San Luis Obispo.
Telephone Conference - Staff arranged for a teleconference to provide the committee
members with the professional perspective of a private consultant on the process of carrying
out a sales tax measure campaign, and the likelihood of success. Committee staff reviewed the
work Mr. Besler had done for Santa Clara County on their last successful sales tax increase
measure. The committee was presented with what Mr. Besler had previously identified as the
necessary components of a successful sales tax increase campaign, including: the participation
and support of the County Board of Supervisors: a public opinion survey: establishment of a
private sector support group with funding; and adequate funding to carry out a campaign. The
committee discussed the likelihood of successfully putting all the necessary components
together, and by consensus decided it would not be necessary to hold the conference call at
this time.
t
Board of Supervisors Representation - Committee Chairman Bob Reed explained that he
had sent a letter to Supervisor Ruth Brackett requesting a representative to the committee,
However, the Board expressed no interest in pursuing the proposed sales tax measure.
Legal & Legislative Update - The committee received an update on Assembly Bill 1362, on
local government finance, which, if it had not been vetoed by the Governor, would have made
the decision of the State Supreme Court in the Guardino Decision inapplicable to any tax first
imposed by an ordinance or resolution adopted prior to December 14, 1995. The committee
also received a presentation on the status of the appeal of the Santa Clara County sales tax
measure. It was noted that the Santa Clara County Counsel had informed staff that they were
very optimistic about the chances of the committee to succeed in the matter.
Revenues & Expenditures - Staff reviewed information from a study by the Surface
Transportation Policy Project (STPP) which indicated that four times as much money is spent
annually nationwide to repair vehicles damaged by potholes then is spent to fix roads. It was
further noted that the study found that since the growth in the sale of motor vehicle fuels
(gallons) is essentially flat the tax on fuel would have to be increased by 30 cents per gallon to
groduce revenue equal to the equivalent amount in 1967.
Determine Course of Action - Committee Chairman Bob Reed stated that in his opinion the
committee should go back to the (original) idea of pursuing a half-cent sales tax increase for
transportation purposes. He noted that the voters should be given the opportunity to approve
the measure or not. Such an action would still require the support of the Board of Supervisors
to move forward however. Atascadero Mayor Johnson noted that the committee did not
appear to have the support of all seven cities in order to go to the Board of Supervisors, and
suggested taking the matter back to the next Mayor's meeting for more discussion. A
suggestion was made to have a delegation of the committee meet with Board Chair Ruth
Brackett to seek a firm position on the sales tax measure. The committee discussed several
other issues of concern that would have to be considered in pursuing a sales tax measure. A
consensus of the committee was then reached to bring up the issue at the next mayor's
meeting to see if their was a consensus to take the issue to the Board of Supervisors.
The meeting was then adjourned.
Notes prepared by Mike Harmon, Associate Transportation Planner assigned to staff the
Committee.
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