HomeMy WebLinkAbout03/21/2000, 3 - ORCUTT ROAD GRADE SEPARATION AND STATE TRANSPORTATION IMPROVEMENT PROGRAM (STIP) FUNDING PRIORITIES councit M�. °��
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CITY OF SAN LUIS '0EISP0
FROM: Mike McCluskey,Director of Public Works
Prepared By: Tent'Sanville,Principal Transportation Planner
SUBJECT: Orcutt Road Grade Separation and State Transportation
Improvement Program(STIP)Funding Priorities
CAO RECOMMENDATION The City Council should:
1. Support the filing of STIP grant applications with the San Luis Obispo Council
of Governments(SLOCOG)for the following projects:
a. Orcutt Road Grade Separation(Advance Development Funding only)
b. South Higuera Sidewalks(Elks Lane south)
c. Pedestrian Enhancements at Street Crossings
d. Landscaped Medians on Los Osos Valley Road
e. Osos-Santa Barbara Street Rehabilitation
f. Johnson Avenue Rehabilitation(Laurel to Orcutt)
g. Interior Transit Stop Announcement System
h. Smart Transit Stops
i. Transit Wheelchair Lift Replacement and Rehabilitation
j. Mid-Higuera Street Widening Supplemental Funding(if possible)
2. If it is the Council's direction to expedite the Orcutt Road Grade Separation
project,then it will be necessary to appropriate$45,000 from the unappropriated
General Fund balance and authorize the Director of Public Works to directly
solicit the services of a qualified consultant or consultants to prepare the
requisite Project Study Report—Environmental Only(PSR-EO).
DISCUSSION
On March 3, 2000 the attached memorandum was distributed to the City Council. The
memorandum provides details about potential STIP funding for transportation projects and about
the feasibility of securing these funds to construct the. Orcutt Road Grade Separation. Since the
deadline for submitting all grant materials to SLOCOG is May 9t', staff has been assembling the
requisite information in anticipation of the Council providing final direction at its March 21, 2000
meeting. Staff will be prepared to answer questions about information presented in the attached
memorandum.
FISCAL IMPACTS
One question that was not addressed in the March 1'` Council Memorandum was the need for
immediate consultant services(Recommendation 2 above). Since March 0, City staff has had the
opportunity to review the existing file information and the State's guidelines for preparing the
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Council Agenda Report- Orcutt Road Grade Separation& STIP Funding
Page 2
requisite Project Study Report — Environmental Only (PSR-EO). While the information
requirements for this type of report are less stringent than for a full blown PSR (which would be
required for construction financing), they are still more than can be produced by in-house staff,
given the approaching deadlines for completing the work — May 2nd review by the Council and
May 9`h submittal to SLOCOG. If it is the Council's desire to proceed as expeditiously as possible
with this project, it will be necessary to authorize the Public Works Director to hire a qualified
consultant to do this work.
To complete the requisite PSR-EO for the Orcutt Road Grade Separation, $45,000 should be
appropriated from the unappropriated General Fund reserve to support consultant services.
Attachments
City Council Memorandum,March 1,2000
1:\Everyone\CouncilAgendaltemt\OrcunRoadCoverReport
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i COUNCIL
MEMORANDUM
March 1,2000
TO: City Council Members
VIA: John Dunn,City Administrative Officer
FROM: Michael McCluskey,Director of Public Works r)'t
Terry Sanville,Principal Transportation Planner.
SUBJECT: Orcutt Road Grade Separation
Introduction
This memorandum presents information about the Orcutt Road Grade Separation and identifies a
funding strategy that Staff intends to follow in applying for "potential" State Transportation
Improvement Program(STIP) funding.
This issue will be placed on the City Council's March 215` Meeting Agenda as a business item.
However,because of severe time constraints,the Staff will immediately proceed with preparing the
necessary STIP application materials as outlined on the last page of this memo and be prepared to
receive additional Council direction on March 215`.
Summary of Recommended STIP Funding Strategy
The City should:
■ Apply for "Advance Development Work" STIP funds for the Orcutt Road Grade Separation
project. If approved, this funding would pay for the project's design and environmental
evaluation but not for property acquisition or construction.
■ Apply to use STIP funds to construct a variety of modest-scale transportation projects for which
the requisite application materials and reports can be completed by SLOCOG's May 9',
deadline. Eight or nine projects are identified.
■ Target the 2001-03 Financial Plan cycle (planning for which begins this Fall) as the time to
evaluate options and establish a strategy for funding the construction of the Orcutt Road Grade
Separation.
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Background
At its February 1 n meeting,the City Council talked about the extension of Prado Road and received
four hours of pubic testimony. As part of that testimony, some people voiced support for the
construction of the Orcutt Road Grade Separation at the Union Pacific railroad. Proponents of this
project suggested that it would improve Orcutt Road as a primary east-west access route.
At the same time that Prado Road was being discussed, the San Luis Obispo Council of
Governments (SLOCOG) released information to local agencies and their delegates about new
tentative State transportation funding. SLOCOG staff identified the Orcutt Road Grade Separation
as a project that would be eligible for State Transportation Improvement Program (STIP) funding.
The City's SLOCOG delegate, Councilmember Romero, indicted his support for pursuing STIP
fimding for this project as a high priority activity. A few days later in an interview with the Tribune,
the Director of Public Works indicated that it would be difficult to complete the required paperwork
(application materials and a Project Study Report) in time to meet the SLOCOG deadline of July 1,
2000.
Prior to the Prado Road hearing,the Council requested a report on the status of the Orcutt Road
Grade Separation and an evaluation of funding options. Based on discussions with the Public
Utilities Commission(PUC) staff,City staff concluded that it may be ten years or more before the
Orcutt Road Grade Separation is competitive enough to receive PUC funding.
The purpose of this memorandum is to present information to the City Council related to the Orcutt
Road Grade Separation and to solicit Council support for staff s response to the following:
I. Is the Orcutt Road Grade Separation a high priority project for STIP construction funding?
and
2. If yes, is the City Council willing to spend local funds to prepare the requisite Project Study
Report (PSR); ensure that it is completed by July 1, 2000, and delay other transportation
activities while this work is being done? (A completed PSR is the major prerequisite for
applying for STIP funds.)or
3. If no, is there other capital projects that meet STIP guidelines that should be pursued where
it is more feasible to complete the required PSR? and
4. If no,what is the Council's idea for establishing a long-range financing strategy for building
the Orcutt Road Grade Separation?
Staff s suggested response to these questions and a recommended funding strategy is presented on
the last page of this memorandum.
Project History
Throughout the 1960's and 1970's, various designs for an overpass on Orcutt Road at the railroad
were developed. In April, 1979, an Environmental Impact Report (EIR) was published that
evaluated a specific project design and two alternatives(see Exhibit A). This EIR was certified by
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the City Council on September 4, 1979 (Resolution 3951). In 1982 and again in 1994 the City
Council adopted General Plan Circulation Elements that include a grade separation on Orcutt Road
at the railroad. The 1994 Circulation Elements stipulates that the City will "Build an overpass at
the railroad" and that the "State" would have primary funding responsibility for the project
(reference Project D.1,page 29).
In 1995,the City Council established a Transportation Impact Fee(TIF)Program that included the
Orcutt Road Grade Separation project. The TIF Program provides funding for 20%of the project's
construction cost, roughly estimated at $4,000,000. It was assumed that the remaining 80% of the
project's cost would be paid for by a State Public Utility Commission(PUC)grant. The 1995 cost
estimate did not include all land acquisition, design, environmental review or inspection costs
associated with the project. Therefore, the actual implementation cost will likely be significantly
higher than the estimated included in the TIF program.
Over the years the City has secured parts of the right-of-way needed to accommodate the
"preferred"project envisioned by the 1979 overpass design. Given the project's offset design,right-
of-way was secured along the south side of Orcutt Road just west of the railroad. Three parcels
have been acquired along Orcutt Road and Bullock Lane east of the railroad. Based on the 1979
overpass design, three additional developed properties would need to be acquired:the Continental
Motor Works parcel on the northeast comer of Orcutt Road and Laurel Lane,the Bullock Residence
at 1049 Orcutt Road,and a small parcel with house at 3288 Bullock Lane. To realign Duncan Lane
west of the railroad as shown on Exhibit A, a fourth property,the commercial parcel at 3055 Orcutt
Road,would also be impacted to an unknown degree. These properties and City-controlled parcels
are shown below.
_ Pmperhtes Owned]By
city
., =Pioperdes that need to
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Impactd by r
Realignment
ofrhmcan
0 _ .—- --- ... _. .._....... .....__... ._._ -
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Completing Right-of-Way Acquisition
Since the source of STIP funds is the Federal Government, federal procedures for appraising and
acquiring properties and certifying the right-of-way must be followed. These procedures take place
after federal environmental clearances are obtained and involve hiring federally-certified appraisers,
negotiating sale prices, establishing relocation assistance, and managing the eminent domain
process—if used.
It is unknown at this point whether eminent domain findings can be made. If the findings can be
made, eminent domain would need to be employed to acquire the remaining properties within the
required right-of-way. Given the configuration of the 1979 overpass design,it is likely that all three
sites east of the railroad will need to be purchased in their entirety.
Need to Consider Alternative Grade Separation Designs
A variety of changes have occurred in the 21+ years since the Orcutt Road overpass design was
crafted. For example,the land uses on the northeast and northwest corners of Orcutt Road at Laurel
Lane have intensified; the City has established the first phase of the Railroad Recreational Trail
(RRT)that intersects the north side of Orcutt Road just east of the railroad and is planned to extend
southward to connect with Tank Farm Road; and in the early 1990's, the City Council approved
cross sectional designs for Orcutt Road that could influence the width of an overpass bridge and the
design of slope banks.
The evaluation of alternatives is a primary purpose of the required Project Study Report. SLOCOG
staff has commented that an assessment of alternatives should be included as part of the PSR. This
assessment should consider project configurations that:
■ Avoid or reduce impacts to developed properties—a difficult objective to achieve.
■ Accommodate the planned extension of the RRT south of Orcutt Road adjoining Bullock Lane
and bicycle access from Orcutt Road to the RRT.
■ Provide for better alignment of local intersecting streets — such as linking Sacramento Drive
extension with Duncan Lane and creating a more standard configuration for the Orcutt-Laurel
intersection.
■ Utilize a underpass structure at this location.
Environmental Review Requirements
While the 1979 EIR was certified by the City Council, its content would have to be updated to
reflect the current environmental setting, traffic forecasts for the corridor, and mitigation and
monitoring provisions. Also,there may be some environmental factors— such as wetland impacts
involving the small open drainage area that diagonally cuts across the project area—that would need
to be addressed.
Since Federal dollars may be used to pay for this project's design or construction, a combined
EIR/EIS(Environmental Impact Statement)would need to be prepared to comply with the National
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Environmental Policy Act(NEPA). Federal environmental law also includes a variety of"statutory
requirements"that would have to be addressed including flooding,wetlands, socio-economic,and
endangered species impacts.
In sum, the previous environmental documents prepared for the Orcutt Road Grade Separation as
well as the project's design itself need to be updated. The cost of this work is eligible for funding
under the"Advance Development Work"component of the STIP process which is discussed later in
this report.
Current Efforts to Widen Orcutt Road
Since the early 1990's, the City has pursued the widening Orcutt Road to four lanes and the
widening of the "at grade"crossing of the Union Pacific Railroad. In 1998, the City completed a
minor widening of the street and installed sidewalks along the north side of Orcutt Road west of the
railroad in compliance with the Council-adopted four lane configuration. However the City Council
deferred the parking removal component of the adopted configuration until a future date.
The widening of the south side of Orcutt Road extending eastward across the railroad and the
realignment of Bullock Lane to connect with Orcutt Road at Laurel Lane may begin during Summer
2001, depending on the performance of Union Pacific. This project is described in Appendix B of
the 1999-01 Financial Plan (pages 148-151) and is illustrated on attached Exhibit B. Although
shown in the 1999-01 Financial Plan, its important to note that only the first two years of the
Financial Plan have been funded. Funding for the Orcutt Road widening project will not be ensured
until the City Council adopts a 2001-03 Financial Plan that provides funding for its construction.
The City has pursued this at-grade project because the prospect of receiving PUC funding for an
overpass appears to be years.off. However, if the City were to commit to constructing the grade
separation in the short term, construction of the at-grade crossing could be abandoned and its
funding — City ($791,000) and State Highway Account ($170,000) funds — might be redirected
toward the grade separation project. Again,these dollar amounts are estimates and are not ensured
until the Council includes them within the 2001-03 Financial Plan.
Facts(Or At Least Intelligent Guesses)About Potential STIP Funding
Governor Davis has proposed to advance $3 billion dollars to the State Transportationlmprovement
Program (STIP). These funds could be used for a variety of transportation projects including the
design and construction of the Orcutt Road Grade Separation. These funds are not "new"money
but are advances from future STIP cycles—which occur every two years. According to SLOCOG
staff, there continues to be a political debate in Sacramento about whether it's a good idea to
advance these funds or whether the normal STIP cycle should be adhered to. The following is what
City staff knows as of the writing of this memorandum:
1. When Will We Find Out How Much STIP Money Will Come to the Region?
The California Transportation Commission (CTC) will likely make a funding decision on
March 29, 2000. SLOCOG staff recommends that local agencies target high priority
projects and prepare the requisite applications and planning reports in anticipation of a
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positive action by the CTC. If funds are not forthcomingfrom the State, these applications
would be ready to take advantage of future funding opportunities.
2.What is SLOCOG's Best Guess of How Much Money Might Be Coming to the Region?
Between$6,000,000 and$30,000,000.
3. What Types of Projects Can STIP Funds be Used For?
■ Major projects that involve State highways;
■ Major projects of "Regional Significance" (this is the category that the Orcutt Road
Grade Separation would fall under);
■ Transportation enhancements(bicycle and pedestrian facilities, landscaping and scenic
beautification,and prevention of water pollution from highway rungffi;
■ Local street rehabilitation(which can include street wideningprojects);and
• Innovative transit projects or "Intelligent Transportation Systems"(ITS)projects.
It's important to note that SLOCOG staff proposes that the variety of activities that are
supported by the Transportation Enhancementprogram be more limited than in years past.
For example, historic preservation, open space acquisition and billboard removal are not
ident f ed as eligible activities.
4. How Does SLOCOG staff Propose to Divide Up the Funds by Project Type?
On March 8`h, the SLOCOG Board will be asked to establish a 'funding program"for the
advanced STIP funding. SLOCOG staff has recommended the following under both "high"
and ".low",funding scenarios.
Project ugh Funding Low Funding Notes
Category Scenario Scenario
Major Highway $8 to$10 million $2 million These are projects typically on the State's
Projects highway system which require the preparation
of a PSR approved by Caltrans..
Major Projects $4 million $700,000 Funding will be provided for construction or
of Regional "Advanced Development Work." A local
Significance funding match is required based on its
regional significanceand availablefunds.
Transportation $2 million $600,000 Projects must have construction costs of more
Enhancements(]) than$LOOK but not exceeding$300K.
Local Street $8 million $2 million In the past, SLOCOG has considered the
Rehabilitation completion of a project application as meeting
the PSR requirement.
Innovative $870,000 $120.000 New categoryofproject.
Transit and ITS
Projects
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(1) Local agencies would be provided a 'funding target"for street rehabilitation projects. For San
Luis Obispo the fundingtargets would be S968,698 under the High Funding Scenario and 5242,175
under the Low Funding Scenario.
SLOCOG staff have indicated that funding provided for these types of projects could be used for
widening streets. Also, SLOCOG would be flexible in allowing local agencies to use the targeted
allocationforother types of eligibleSTlPprojects.
(2) At its February 23, 2000 meeting, the SLOCOG Transportation Technical Advisory Committee
(7TAC)support the funding program summarized above.
5. How Would SLOCOG Staffs Recommended Funding Program Affect the Orcutt Road
Grade Separation Project?
The City would apply for STIP funds for the Orcutt Road Grade Separation under the
category: "Major Projects of Regional Significance. " SLOCOG staff recommends that
funding for this category be set at 5700,000 to S4 million, depending on how much funding
is approved by the CTC.
The City would compete with all other local agencies for funding within this category. Any
project costs that are not covered by STIP funding would be the City's responsibility.
SLOCOG staff has said that they would be flexible in allowing local agencies to use the
targeted allocationfor "Local Street Rehabilitation"projects(see Note 1 in the table above)
for other STIP-eligible projects, including the Orcutt Road Grade Separation.
6. What Types of Application Materials Must Be Submitted to SLOCOG?
The required application materials differ based on thetee of project being proposed(see
categories above). STIP projects must have an approved Project Study Report (PSR) or
"Equivalent. " In general, the more complex the project, the more complex the PSR has to
be. For example,for transportation enhancements and local street rehabilitationprojects,
a PSR equivalent often involves. simply completing a standard application form. An
example of a less-complicated project was the South Higuera Street Rehabilitation Project
($1.175 million)approved by SLOCOG in 1999.
For more significant projects, such as State highway projects and projects of regional
significance,the PSR should evaluate alternatives,provide cost information, often evaluate
traffic operational issues, and be accompanied by a scoping document for environmental
review. An example of a more complex PSR is the document prepared for the Prado Road
interchange.
For projects that are not on State highways, a draft of the PSR or equivalent must be
submitted to SLOCOG by May 9`h, approved by the SLOCOG Board on June 7`h, and a final
PSR received by the State no later than July 1, 2000. Based on these deadlines, staff
concludes that it is not possible to complete a PSR for a complicated project(Orcutt Road
Grade Separation is one example)in time—even with the assistance of consultants.
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7. What Other Options are Available for Major STIP Projects if a PSR Can't Be Prepared in
Time?
STIP funding can be used for what is called "Advance Development Work " In essence,
advance development work can include just about everything except the actual construction
of the project, including:
Preparation of a combination Project Study Report/Project Report(PR);
Preparation of required environmental documents(includingEIRIUS);
Preparation of Plans,Specifications and Estimates(PS&E).
One of the key concerns raised by City staff at a meeting with SLOCOG staff on February
23rd was: if the City applies for advance development funding for the Orcutt Road Grade
Separation(or any other complicated project), will the City have to assure funding for the
actual construction of the project. Ron DeCarli, Executive Director of SLOCOG, stated
that this was a new unresolved policy issue. However:
■ Lf an agency was requesting advance developmentfunding for the preparation of a PSR/
PR, and environmental documents, constructionfunding need not be assured;
■ Lf an agency also requested funding for the preparation of PS&E, then construction
funding would need to be ensured.
To apply for advance development funding, a PSR must also be prepared and a draft
submitted to SLOCOG by May 0h. Accordingto SLOCOG staff the requisite PSR is a more
abbreviated document called a "Project Study Report — Project Development Support"
(PSR-PDS). However, the State hasn'tpublishedguidelinesforpreparing these documents,
so both SLOCOG and City staffs have only a limited understandingof what is required to be
included in a PSR-PDS.
In conclusion,staff believes that it May be possible, with considerable effort, to assemble the
requisite application materials and apply for "Advance Development"funding for the
Orcutt Road Grade Separation (or other similar project) and meet SLOCOG deadlines.
However, this strategy will not resolve the long-term funding concern for actually
constructing the grade separation. Long-term funding strategies are identified later in this
report.
8. Conclusions About STIP Funding
Base on information received to date,staff has concluded the following:
■ It is not possible to prepare the requisite application materials and reports for the construction of
the Orcutt Road Grade Separation and submit them to SLOCOG by the May 9t'deadline. This
conclusion means that the construction of the Orcutt Road Grade Separation cannot be
programmed as part of this STIP Cycle. Even if it were possible to complete all requisite
application materials and reports,insufficient STIP funds would be available to built the project.
■ It may be possible to complete the application materials needed to apply for "Advance
Development Work" funding for the Orcutt Road Grade Separation (estimated to cost about
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$750,000). The probability of the City receiving this funding will be strongly affected by how
much STIP funds actually come to the region—$6 to $30 million.
- It is possible to prepare and submit grant applications to SLOCOG for other STIP-eligible
projects of modest scale and complexity,where the reporting requirements are minimal.
Eligible STIP Projects
So far,this memorandum has focused on the Orcutt Road Grade Separation and how its design and
construction might be eligible for STIP funding. However,there are other City projects that the
community,Council,and staff have identified that are also eligible for STIP funding. All of these
projects face the same requirements for preparing a PSR prior to submitting application materials.
The following table identifies each project(including Orcutt Road options),provides a rough cost
estimate,and identifies how difficult it will be to prepare the requisite PSR. Staff has checked(,/)
the projects that we believe can meet STIP guidelines and for which the required application
materials and planning reports can likely be prepared in time.
# Description Project Cost Difficulty of
vf=Projects Targeted by Staff Completing PSR
Transportation Enhancements(Grant Funding Cap=$300,000)
1 South Higuera Sidewalks (Elks Lane South): build $180,000 Easy
V/ sidewalks along South Higuera Street adjoining the cemetery
south of Elks Lane and reconfigure the Elks Lane intersection
(Council has previously approved this project,and application
materials are complete.)
2 Pedestrian Enhancements at Street Crossings: install in- $250,000 Easy-Moderate
1/ pavement lit crosswalks, advance warning beacons, and
pedestrian signal heads at select locations where they improve
the comfort and safety of pedestrian crossings.
3 Madonna Road Sidewalks Over San Luis Obispo Creek: $360,000 Very Difficult
construct sidewalks along the south side of Madonna Road at
San Luis Obispo Creek. (This project impacts State-controlled
property and would require Caltrans approval.)
4 Madonna Road Sidewalks on Route 101 Overpass: $650,000 Very Difficult
constructa sidewalk along the west side of the overpass bridge
and the western slope bank to extend to the Madonna Inn.
(This project is on State-control led property and would require
Caltrans approval.)
5 California Boulevard Bike-Pedestrian Path:instal I a shared $400,000 Difficult
bike and pedestrian path west of palm trees along California
Boulevard on City property(northern segment of the Railroad
Recreational Tail).
6 Penny Lane Bicycle-Pedestrian Bridge: install pedestrian- $450,000 Very Difficult
bicycle bridge over Union Pacific Railroad to connect Penny
Lane with Fairview Avenue.
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7 RRT School Connection: work with the School District to $150,000 Difficult(do to
design and construct Class] bike path adjoining the northern coordination
bank of the creek and the District's corporation yard between issues)
the Railroad Recreational Trail(RRT)and Southwood Drive.
S Bob-Jones City-To-Sea Bike Trail: accelerate and commit $660,000 Very Difficult
to the design and construction of the segment of the trail
between Prado Road and LOUR.
9 Landscaped Medians on Los Osos Valley Road: construct $350,000 Easy-Moderate
landscaped medians extending from the western city limits to
about Oceanaire Drive and provide turn pockets and protected
pedestrian refuges at key intersections. (Council previously
approved this project in early 1990's and some application
materials complete).
10 Landscape Medians on Orcutt Road: complete the $100,000 Moderate
landscaped medians (install landscaping and irrigation) on
Orcutt Road between Broad Street and Duncan Lane after the
basic facilities are installed by developers of adjoining
properties.
Major Projects of Regional Significance(Construction Costs greater than$200,000)
11 Orcutt Road Grade Separation:purchase requisite property $6,000,000 Difficult
to form a new Laurel-Orcutt intersection and construct
overpass at the Union Pacific Railroad on Orcutt Road.
Project to include southern extension of Railroad Recreational
Trail(RRT)under the overpass to connect with Bullock Lane.
12 Orcutt Road Grade Separation Advance Development: $750,000 Moderate
prepare Project Report (including evaluation of alternatives)
and environmental documents(EIR/EIS).(Note:PS&E would
be prepared at a later date when funding is established.)
13 Prado Road Bridge Widening: widen the bridge over San $2,300,00 Difficult
Luis Obispo Creek on Prado Road to six lanes(including tum
pockets, bike lanes and sidewalks)to serve the planned new
interchange @ SR 101 and future airport area traffic growth.
14 Prado Road Extension,S.Higuera to Broad:construct two $4,300,000 Difficult
lanes of a new roadway with specific cross section design to
be resolved as part of Margarita Area Specific Plan's
adoption.
Street Rehabilitation Projects(Must be on Routes of Regional Significance)
15 Osos-Santa Barbara Street Rehabilitation:rehabilitate this $350,000 Easy
street corridor from Broad to Pacific Street. (This project has
received previous City Council Approval and application
materials are complete.)
16 Johnson Avenue Rehabilitation: complete the rehabilitation $400,000 Easy
of Johnson Avenue extending from Laurel Lane Orcutt Road.
(Council and SLOCOG has previously approved rehabilitation
of Johnson Avenue from Buchon to Laurel.)
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17 Widening Mid-Higuera Street: apply for STIP funding to Unknown Difficult
pay for possible expansion of the project's right-of-way and
inclusion of landscaped features. (Project already has other
federal and state funding; STIP funding could free up GF
commitment. However,amount of dollars needed is unknown
until City has resolved cross section design as part of Mid-
Higuera Enhancement Plan.)
-Innovative Technology and Transit Projects
18 Interior Stop Announcement System:provide an electronic $100,000 Easy-Moderate
1/ stop announcement system and digital clock display within
each SLO Transit bus.
19 Smart Transit Stops:install changeable message signs on the $300,000 Easy-Moderate
1/ "P" poles at key transit stops that display estimated arrival
times. Also provide for lighting to SLO Transit bus shelters at
these stops.
20 Universal Pass System: establish a"smart card"system that $250,000 Moderate
would be used for SLO Transit,SCAT,and CCAT systems.
21 Wheelchair Lift Replacement and Rehabilitation: replace $64,000 Easy-Moderate
1/ four wheelchair lifts on existing transit vehicles.
22 Vehicle Fleet Expansion: purchase two new transit vehicles $560,000 Easy-Moderate
in order to provide additional peak-hour service.
Long-Term Financing Options for the Orcutt Road Grade Separation
Over the years, the City has acquired some of the right-of-way needed to accommodate the 1979
design of the grade separation. Full implementation of the project will likely require an investment
of$5 to $6 million dollars for property acquisition,design, environmental review, mitigation and
monitoring,construction,and construction engineering activities. Some of the design costs and all
of the environmental review costs could be funded as "Advance Development Work" by the STIP
(see previous discussion), leaving the lion's share of the project's cost to be funded from other
sources.
The following paragraphs broadly identify financing options for the Orcutt Road Grande separation.
In general,the more that local funds controlled by the City are used to build the project,the faster
the project can be undertaken. Conversely, if the City depends on TIF revenues combined with
grant funds to build the project,its implementation could take many years. The following is a brief
discussion of financing options.
Option 1: 2000 STIP-Cycle Construction Financing. Prepare the requisite PSR and use STIP
construction funding to build the project.
As previouslystated, it is not possible that a PSR can be prepared in time and would involve
consultant services (if available) costing , 75,000 or more. Also, even under the "high
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funding scenario, " about $4 million would be available for all regionally significant
projects in the County. The City would need to provide a significant local funding match—
but might be able to divert the funding that has been set aside for the for the Orcutt Road at-
grade crossing to the overpassproject. Conclusion:not feasible due to time limitations.
Option 2: Future STIP-Cycle Construction Financing. Secure "Advance Development Work"
STIP funding in the year 2000, then apply for STIP Construction funding in 2002 (if available)
2004,2006,or 2008 as money becomes available.
Based on the volume of projects that are being designed within SLO County, the 2002 and
2004 STIP Cycles are likely to be highly competitive, with insufficientfunding coming to the
region to pay for all of the major projects that want to be built. Also, as time passes the
current robust funding levels for transportation projects may or may not be sustained.
Historically, major projects that have occurred off the State highway system (like Orcutt
Road) have been considered a lower priorityfor funding. Conclusion: STIP funding in the
2002 and 2004 may not be available and future STIP funding is uncertain.
Option 3: Amend the TIF Program. Reevaluate this program's funding assumptions,the impact
of future growth on travel demand along Orcutt Road, and amend the TIF to cover a larger
percentage of the project's cost. TIF revenues accumulate relatively slowly since they are based on
the pace of growth and assume that the private development within the airport area and other
expansion areas will contribute TIF fees. After modifying the TIF program,two options for using
TIF revenues would include:
■ Bank the TIF Program revenues until sufficient funds are available to build the project(which
will extend the implementationtime frame);or
■ Build the grade separation with General Funds (most likely via a bond issue) and repay the
General Fund with TIF Revenues (which will enable the project to proceed more rapidly if the
City Council feels that this project deserves high-priority status for use of GF.
The purpose of the TIF Program is to ensure that future growth pays for the cost of
transportationfacilities that are needed to support new growth. This purpose is reinforced
by Assembly Bill 1600 which requires that growth pay no more than its fair share of
infrastructure costs. Therefore, it is not likely that the Orcutt Road Grade Separation could
be supported in its entirety by future growth since the overpass also serves a pre-existing
need
A reevaluation of growth potential based on the draft Margarita Area, Orcutt Area and
Airport Area Specific Plans and development elsewhere within the City Urban Reserve
might suggest that more traffic will use Orcutt Road. Traffic increases over and above what
was considered by the TIF Program in 1995 could increase the TIFs participation from
20%of the construction cost to something higher but is unlikely to approach 100%.
Option 4: Use '/2 ¢ Local Option Sales Tax Revenue. In November, a "local-option sales tax"
ballot measure may be considered by the county electorate.If approved,this measure may provide
funds for transportation projects. The Orcutt Road Grade Separation may be eligible for funding.
Its eligibility will depend on the types of projects that are included with the measure's requisite
"expenditure plan."
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v:
SLOCOG hired a Consultant that has completed a public opinion pole in February, 2000.
The results of the pole indicate that 69% of the respondents supported "Improvements to
Local Streets and Roads. " Orcutt Road Grade Separation would fall within that program
category. The experience of other California Counties that have passed local-option sales
tax measures suggests that by specifically identifying transportation projects (such as the
Orcutt Road Grade Separation)voter support of the measure can be enhanced.
Lfa ballot measure is successful,the implementationprocess would likely involve SLOCOG
setting priorities for the various projects and then successively issuing bonds to pay for the
their construction.
Option 5: Pass a City Bond Measure: One of the City Council's 1999-01 Goals is to establish of
a 10-year Capital Improvement Program (CIP) via a vote of the City electorate. The Orcutt Road
Grade Separation hasalready been identified as a candidate part of that future program. Similar to
Option 4,the income generated by a City measure would likely be used to issue bonds to undertake
high-priority projects.
Only San Luis Obispo residents would vote on a "City" bond measure. Therefore, the
outcome of the vote would not be affected by the preferences of other city or county
residents. The City Council would be responsible for establishing priorities for use of the
revenues to implement specific projects— unless the bond measure itself established those
priorities.
Option 6: Area Development Contributions: Since the Orcutt Road Grade Separation is along
one of two routes that that link the Orcutt Expansion Area to areas to the west,development within
that area may be required to contribute to the cost of the grade separation project.
The degree of contribution will depend on the intensity of development approved as part of
the Orcutt Area Specific Plan, the percentage of this traffic that would use Orcutt Road, and
the traffic contribution that Orcutt Area development will have as a percentage of total
"buildout traffic volumes" on Orcutt Road at the Railroad. However, the relationship
between what Orcutt Area developers would pay and what eventual new households would
pay as part of the City's established TlFprogram would need to be analyzed
Option 7: Target Future Transportation Grants. Proceed with Advance Development Work
using STIP funds and be prepared to apply for future transportation grants when these funds become
available.
Over the past 18-months, a lot of money has been coming to the region for transportation
activities that is outside of normal grant cycles. If this continues in the future, it may be
possible to secure some grant funding that could match Cityfunds to build the project.
In the longer term, Congress is due to consider renewing the Federal Transportation
Funding Legislation in 2004-05. Depending on the status of the national economy, local
agencies might see future funding levels continue to be robust, as they were in 1998 with the
passage of the Federal Transportation Equity Act for the Twenty-First Century (TEA-21).
However, the nature of future Federal legislation (its scope and priorities) is purely
speculative at this time.
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As previously mentioned, the Orcutt Road Grade Separation may eventually compete for
PUC funding. Factors that are used to rank PUC projects include the amount of time
motorists are delayed at an "at grade" railroad crossing waiting for trains to clear the
tracks and the incidents of train-vehicle collisions. The amount of delay is based on the total
volume of cross traffic and the number of trains that are using the tracks. Under current
conditions, neither delay nor collisions have been significant. With future growth of rail
service and vehicle using Orcutt Road, the overall amount of delay could increase and the
Orcutt Road Grade Separation could better meet PUC evaluation criteria.
However, the PUC provides grants state-wide on a competitive basis. Therefore,comparing
future delay on Orcutt Road with major arterial streets within California's metropolitan
areas will continue to place San Luis Obispo at a competitive disadvantage for receiving
PUC funds.
Option 8: Seek Legislative Action: The City could request that its representatives in the State
legislature push for additional transportation funding for statewide distribution, attempt to attach
the funding of the Orcutt Road Grade Separation as a"trailer"to other transportation legislation,or
seek sponsorship of a special bill to pay for the project's construction.
The probability of success of this process is unknown. Given the amount of funds coming to
the region from various sources(the 2000 STIP advancement is one example), it would be a
challenge to convince State legislatures to support funding for a City project outside of the
normal "regional"fundingprocess. But others have succeeded
Option 9: Defer Action at This Time. The City Council could decide to consider financial
planning for.this project as part of its deliberation on the 2001-03 Financial Plan in Spring of 2001.
the City receives Advance Development funding, it will likely take at least two years to
complete that work in order to be in a position to request major grants or more accurately
appropriate local funds to construct the project. This issue could be a "special project"
that is further evaluated and incorporated into the upcoming Financial Planning cycle
which begins in Fall, 2000 and is completed by June 30, 2001
Impacts on Staff Resources
Full acceleration of the Orcutt Road Grade Separation project will have a significant impact upon
existing staff resources. If SLOCOG and the CTC approves STIP funding (under either the
"construction" or"Advanced Development Work"options), additional staff and consultants must
be hired and existing Council priorities for.work on other projects may need to be changed. At a
minimum, either a contract employee to act as the City's project manager or a consulting
engineering firm familiar with Caltrans PSR requirements must be hired to complete this work.
These service contracts will require in-depth oversight by City staff which will take staff time
away from existing projects.
If the City Council chooses to accelerate this highly complex project, internal staffing should
also be reviewed to verify that sufficient staff resources exist to deliver quality projects under
established time schedules. As part of the 10-year CIP forecast,the Public Works Department
3-16
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only identified all the projects that could be included in such a program; the Orcutt Road Grade
Separation was one of many identified. The Public Works Department did not forecast the level
of staffing needed to accomplish the 10-year CIP forecast.
In the 10-Year Space Needs Study, existing CIP activity levels were assumed to remain constant
with increased activity levels addressed by hiring consulting engineers. The Space Needs Study
also identified the need for two additional people in the Traffic Section to maintain expected
levels of traffic information, work on projects (such as advance planning for the Orcutt Road
Grade Separation), and implement the Council's high-priority traffic programs.
No specific recommendations for additional staffing are made as part of this memorandum.
However, if it is Council's determination that the Orcutt Road Grade Separation or any other
similarly-complex project be accelerated, then staff will place the issue of staffing needs and
project priorities on a future Council meeting agenda for resolution.
Recommended Direction
Now that information has been provided about the somewhat-speculative upcoming STIP funding
cycle, staff believes that the City should take the following course of action. Since time is short,
staff is presenting it here and suggests that if the Council believes that a significantly different
direction should be taken, then it can be addressed at the March 21't meeting. The following is
staff s response to the questions posed at the beginning of this memo.
Question 1: Is the Orcutt Road Grade Separation a high priority project for STIP construction
funding? and
No. It is not possible to prepare the requisite PSR for such a major project by the State's
July P deadline. However, it may be possible to secure STIP funding for "Advance
Development Work " Staff will pursue this type offunding.
Question 2: If yes, is the City Council willing to spend local funds to prepare the requisite PSR,
ensure that it is completed by July 1, 2000,and delay other transportation activities while this work
is being done?or
Given what staff knows of the STIP process, even if the City was willing to pay for
consultant services to prepare the PSR, securing consultant services and meeting the
requisite deadlines would not be possible. Staff does not recommend this course of action.
Question 3: If no, are there other capital projects that meet STIP guidelines that should be
pursued where it is more feasible to complete the required PSR? and
Yes. Staff believes that the City should apply for funding of modest-scale projects for which
the requisite application materials and reports can be completed. Staff has previously
identified these on pages 7-10 of this memorandum. There is a lot of work to do in a short
period of time, but it is staffs intent to proceed with the following applications:
■ South Higuera Sidewalks(Elks Lane South) (materials complete)
a Pedestrian Enhancements at Street Crossings(consistent with newly adopted policy)
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■ Landscaped Medians on Los Osos Valley Road(some work already done)
■ Osos-Santa Barbara Street Rehabilitation(materials complete)
■ Johnson Avenue Rehabilitation (complete corridor rehabilitation from Laurel to
Orcutt)
■ Interior Transit Stop Announcement System(new category)
• Smart Transit Stops
■ Transit Wheelchair Lift Replacement and Rehabilitation
■ Mid-Higuera Widening Supplemental Funds (if amount can be reasonably
determined)
Question 4: If no, what is the Council's idea for establishing a long-range financing strategy
for building the Orcutt Road Grade Separation?
Staff recommends that the Council defer this issue until the next Financial Planning
cycle(Option 9)and considerall long-term funding options at that time(at least Options I
through 8). Assuming that STIP funding is approved for "Advance Development Work"
partial completion of this work will enable improved construction and environmental
mitigation cost estimates which in turn should help the City Council in establishing a
preferred funding strategy as part of the next financial planning cycle (Winter-Spring,
2001).
Attachments
Exhibit A: 1979 Design of Orcutt Road Overpass With Otpions
Exhibit B: Sketch of At-Grade Widening of Orcutt Road at the Railroad
G:\Transportation\TranspormionProjects\Orcuttoverpacs\Counci[Memorandum
3-18
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March 14, 2000
MEETING AGENDA
TO: City Council DATE JILL ITEM #r 3 _
FROM: Mike Multari, Chairperson NTAO IL o F i.r.r- I
Human Relations Commission DIAGA F
GrATTORNEY C&! •;
o M IORIG
SUBJECT: Orcutt Road Crosswalk Request ❑LIGMT TEAM NEG f
DIS •
T(t%6UNG ❑UTIL DIM I
p u: all ❑PERS DIM
The Human Relations Commission wishes to express its concerns over We safety issue that
affects disabled and elderly residents at the Marvin Gardens complex as well as school age
children in the neighborhood who cross Orcutt Road at Marvin Gardens. The Commission
requests that a timely interim solution be sought that includes input from the neighborhood.
Thank you for your consideration of our request.
Cc: M. McCluskey /
T. Bochum � j � /� 6�0, 1l
,�7 of ex) ux) D
aJ P
RECEIVED
MAR 1 5 2000
SI��-C1�'-1�6®
San Luis Ob�� o Council oGovernments:
Regional Transportation Planning p►gency Am,Wa�
�v�r lleacb
Metropolitan Planning Organization Morro Bey
Paso Robles ..
Census,Data Affiliate Pismo B�
San Luis Obispo
Ronald L txCjiru- «ative Dircctur Service Authority.f6'Freeways and Expressways San-Lnis Obispo County
MEETING AGENDA
DATE 3 ar-0 0 ITEM # 3
13000NCIL
eft DIR
March 16, 2000 . EMAO, O FIN DIR
UAW 0 FFPE CHIEF
p ATTORNEY [RfW DIR
John Dunn, City Manager OCLERWORIs 0 SLICE CHF
City of San Luis Obispo 0 LIGMT TEAM EC DIR
990 Palm Street . rwr!La 9I; O.UTIL DIR
a,_,r�__ - ❑PERS DIR
San Luis Obispo, CA 93401
Subject: Orcutt Road.Project.Study Report Environmental Only
Dear Mr. Dunn:
We understand the City will be pursuing a Project Study Report- Environmental Only
.(PSR-EO)for the Orcutt Road Grade Separation-Project. Due to the-accelerated
programming cycle and the amount of.work required to•complete full-scale PSR, we
believe the.City has no other feasible option. Therefore, in response to your inquiry, we
support the City's effort to'prepare a PSR-EO instead of a full-scale PSR. In this .
manner a complete analysis of all the alternatives can be completed through the Project
Report, and funds for construction can compete.for the 2002 State Transportation
Improvement Program hext•year.
The latest information from the California Transportation Commission staff is the 2000
STIP Fund Estimate may be postponed until after.the Governor announcement of the
"Transportation Initiative", which is scheduled.for April. 11"'. The net effect of this action
may be to delay the entire programming process by at least one,.and probably several
months.
Please do not hesitate to:contact me or Peter Rodgers of my,staff if.you should have
any questions. .
Sincerely,.
•�Ronald.L. De Carli
Executive Director
-��Llj
RECEIVED
MAR. .1:.7� 2000
SLO City..COUNCIL.
- 1150`Osos'Street;'Sie.202,$ari Luis Obispo,6,L 040.1 `1,Tel.:(805j 781-4219 lax. (805j 781-5703
mail. .slocog@slonet,org,�Yn'tenet._ hgpV1W..ww.slonet:org/-ipslocog
M PNG AGENDA
March 8, 2000 DATE_1 i EM # 3 .
OUNCIL CD]DIR
City Council members: 9-VA0 O FINAllen Settle ❑ACAO t7 FIRDave Romero Ii 1 TORNEY L CCERKIORIG ❑POLJohn Ewan ❑MGMT TEAM O Ken Schwartz Rl8uiJ ❑PER
Jan Howell Marx
f3cr— VI✓1
City of San Luis Obispo
990 Palm Street
San Luis Obispo, Ca. 93401-3249
I am writing in regards to the item in the Tribune, March 8, 2000. Windfall for roads
anticipated. This is something that has been needed for such a long time. Other projects
have come and gone and the overpass on the Orcutt Road has continued to be put on
hold. The newspaper didn't mention the Orcutt Road'overpass. I hope this was just an
oversight. While the Pismo Beach boardwalk,bike lanes, and pedestrian paths are
needed,the Orcutt Road overpass is way over due to be classed as a Top Priority.
Highspeed trains will be coming to San Luis Obispo, as well as more and longer freight
trains. We need the improvements on the intersection before there is a serious accident.
I also have a concern about the approval of the Scott Lathrop property. Until all the
planning is completed on the baseball park and the new school,the Lathrop annexation
should be placed on hold. There are a great many problems with the Prado Road going
passed the school,and ballpark. More consideration should be given to rerouting Prado
Road away from the center of the property. The thought of long tunnels under the road is
a nightmare waiting to happen. Other towns have found this to be true. Our children
deserve better.
Sincerely,
Jeanne Anderson
3580 Bullock Lane
San Luis Obispo Ca. 93401
cc. City Council members
RECEIVED
MAR 8 ' 2000
SLC? 1. ;'.�~.RK