The purpose of this presentation is to update the Transportation Water and Infrastructure Committee on the status of budget challenges facing the Public Works Department. Public Works will include these budget challenges in the Department's budget hearing presentation scheduled for the Board of Supervisors on April 24-25, 2023. The goal is to address the over programming of projects while trying to take full advantage of the funding available through the IIJA.
While the focus of this presentation is on the County's Road Program, the fundamental revenue challenges for the Flood Control and Special Districts programs discussed at the Board of Supervisors meeting remain unchanged. However, the recent, and ongoing storms have reminded us how important it is to adequately fund routine maintenance and capital improvements to provide flood protection for the residents of Contra Costa County. Many County flood control facilities, with zero or inadequate dedicated revenue, are in need of silt removal and other critical maintenance activities. For Special Districts, the challenge remains that service level expectations do not match funding levels for several Special Districts and there continues to be a lack of interest to increase revenues.
At the February 28, 2023 Board of Supervisors presentation, Public Works highlighted several items that have contributed to the budget challenges we are experiencing with the County's road budget. These included the following:
- Decreased gas tax revenues from fewer vehicle miles traveled due to COVID-19
- Project cost escalation due to inflation and supply chain issues
- Impact of 2017 storm damage on road budget
- Increased insurance premium
- Identifying a local match for approved and pending grant funded projects
- Identifying a local match source for new IIJA grant applications
- 2023 Storm Damage (continues to evolve with preliminary estimates at $8.2 million)
- Wildcat Canyon Road Slide (road closed)
- San Pablo Dam Road Pavement Settlement
- Norris Canyon Road Slide
Since the February 28, 2023 Board of Supervisors meeting, there have been several developments related to the County's Road Program. First, the Public Works Department has received confirmation regarding several pending grant applications previously presented to the Board of Supervisors for Highway Safety and Improvement Program (HSIP) funds. These projects will require a local match and are currently not included in the road budget. Of the eight projects submitted, the Public Works Department received funding for six of the projects. The two projects that did not receive HSIP funding are Camino Diablo Safety Improvements ($890,460 requested) and Camino Tassajara Street Lighting Improvements ($1,221,840 requested).
Successful HSIP Cycle 11 Project Grants:
| Project Title |
Location of Work |
Description of Work |
Project Cost |
HSIP Funds |
Estimated Local Match |
| Countywide Guardrail Upgrades - Phase 2 |
Various locations on arterials, collectors, and local roads throughout Contra Costa County. |
Replace sub-standard MBGR guardrails with Caltrans standard MGS guardrails and end treatments. |
$1,493,700 |
$999,990 |
$493,710 |
| Appian Way at Fran Way Pedestrian Crosswalk Enhancements |
The intersection of Appian Way and Fran Way in unincorporated El Sobrante. |
Install Rectangular Rapid Flashing Beacons (RRFBs), bulb-outs and a median refuge island. |
$510,800 |
$249,840 |
$260,960 |
| Walnut Boulevard Bike Safety Improvements |
Walnut Boulevard between Marsh Creek Road and Vasco Road in unincorporated Brentwood. |
Install bike lanes by widening and restriping the roadway and install a centerline rumble strip. |
$1,150,000 |
$249,415 |
$900,585 |
| Bryon Highway Safety Improvements |
Byron Highway from Clifton Court Road to Bruns Road. |
Add lighting, install dynamic/variable speed warning signs, and install edgeline rumble strips/stripes. |
$1,462,800 |
$1,316,520 |
$146,280 |
| Vasco Road Safety Improvements |
Vasco Road from Walnut Boulevard to Camino Diablo. |
Install a no-passing line and centerline rumble strip/stripe and improve signal hardware at intersections. |
$794,500 |
$715,050 |
$79,450 |
| Deer Valley Road Traffic Safety Improvements |
Deer Valley Road between Deer Hill Lane and Marsh Creek Road in the unincorporated areas outside the cities of Antioch and Brentwood, in east Contra Costa County. |
Install dynamic/variable speed feedback signs, guardrails, and curve shoulder widening. |
$1,250,900 |
$1,125,810 |
$125,090 |
| |
|
|
TOTALS |
$4,656,625 |
$2,006,075 |
In addition to the recently awarded HSIP projects, Caltrans notified the County of additional bridge replacement and rehabilitation projects added to the federal bridge program making them eligible for federal Highway Bridge Program funds.The Highway Bridge Program (HBP) is funded with Infrastructure Improvement and Jobs Act funding. In addition to the bridge projects already in the program, the three new projects include the following:
- 2nd Avenue Bridge Replacement Project (Pacheco Area) - Local Match Estimate $1,262,000, HBP $7,108,000
- Freeman Road (Walnut Creek area) and Briones Valley Road (East County) Bridge Maintenance Projects - Local Match Estimate $217,000, HBP $723,000
- Del Monte Drive Bridge Painting and Poly Overlay (Bridge No. 28C0207) - Local Match Estimate $374,000, HBP 793,000
Although it is great news of the successful grant applications to date, funding the local match while trying to address the road budget's current negative balance in future fiscal years will be challenging. To address this challenge, Public Works has developed several scenarios for the Board of Supervisors to consider during the upcoming County budget discussions. Staff considered the following items when developing the various budget scenarios:
- 10 fiscal year planning window to capture full project expenditures
- Use the most recent revenue projections from CSAC
- Multi-year expenditure plans were developed for each newly awarded grant project and added to the 10-year road budget
- Increased budget for estimated insurance premiums over the 10-year planning window
- Preliminary damage estimate of $3 million from the 2023 storm damage has been added as a placeholder in the budget (slides and damage continue to evolve from additional rains and saturated soils and is nearing $8.2 million)
- The scenarios do not take into account local match requirements for future successful grant applications (Board of Supervisors has directed Public Works to continue seeking grants from the Infrastructure Investment and Jobs Act)
- Preserve funding levels for maintenance operations, pavement maintenance, and surface treatment program to maintain critical maintenance operations and prevent further deterioration of our pavement condition. The surface treatment program was the victim of cutbacks from the 2017 storm damage projects.
- Traffic operations, road engineering, advanced engineering, and road information and services budgets have been reviewed for allocation efficiency
- Goal is to prevent loss of secured grants while taking full advantage of infrastructure funding currently available and keeping a balanced road budget
Considering the items above, Public Works has developed several scenarios, including the base scenario for consideration by the Board of Supervisors. The scenarios focus on revenue augmentation to address the budget deficit with the exception of scenario 2 that shifts the Vasco Road Safety Phase II project timeline to FY 30-31. If revenue augmentation falls below the amounts shown in scenario 5, staff will develop additional scenarios that address the road budget deficit by a combination of adding the reduced revenue augmentation in and shifting project delivery timelines to future fiscal years and possibly canceling certain grant funded projects if required delivery timelines can not be met.
Budget Scenarios:
- Baseline - includes recently awarded IIJA grant projects, insurance, and updated project cost information
- Assume $10 million CAO funding to fund the local match of recently awarded ATP and HSIP projects with any remaining balance funding the local match for bridge projects. In addition, move Vasco Road Safety Phase II project delivery timeline by two years
- Assume $10 million a year for the next 4 years (during the IIJA implementation timeline)
- Assume $6 million a year to offset Insurance Premium for Road Program
- Determine funds to "make program whole" on a yearly basis
- Evaluate budget impact if all local match requirements were funded
Based on the scenarios, Scenario 5 shows the amount of revenue augmentation would be necessary to keep the road program with a positive balance and fund the existing and recently received grant funded projects. This amount is approximately $6 million per year for the next four years. If we wanted to continue to pursue IIJA grants, we would need an estimated $2 million per year for the local match beyond the $6 million. Therefore, the road program would remain balanced with current projects moving forward and allow for future grant applications would require $8 million per year for the next 4 years. If less than $8 million is applied, Public Works would work on additional scenarios that would apply a lesser amount and move projects to future fiscal years where there is more capacity in the road budget.
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