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HomeMy WebLinkAbout0347.091.- - July 3, 1991 HONORABLE CITY COC~CIL Palo Alto, California 1 ~N1A cLARA COID."TY TRAFFIC AUTHORITY -DRAFT __ 1991 __ STRATEGIC PLAN Members of the Council: This is an informational report, no Cour.cil action is required. As part of the Council meeting agenda on July 8, 1991, will Kem.pton, Executive Director of the santa Clara County Traffic Authority, is scheduled to make a presentation concerning the Draft 1991 strategic Plan for the Measure A program in Santa Clara County, which the Traffic Authority administers. The purpose of the presentation is to review current strategic Plan information and project sta~us, respond to questions, and receive any comments from the Council. Final adoption of the 1991 Strategic Plan by the Traffic Authority is scheduled for November l~ 1991. The strateqic Plan is used to identify the scope, budget, and Gchedule for projects financed through Measure A~ Measure A is a half-cent sales tax program that vas passed by voters in November 1984, tor specified highway improvements on Routes 85~ 101~ and 237 in Santa Clara County~ A new strategic Plan is adopted annually by the Traffic Authority, as a statement of under&tanding and intent regarding actions, ongoinq and planned~ to complete the Measure A program~ Included as Attachment 1 is the Executive summary from the Oraft 199~ strategic Plan, -which provides an overvie..... of the 1991 Strateqic Plan .... ith a focus on measures to adjust to current fundinq sbortfallG, The remaining sections of the Strategic Plan roe-port contain more detailed information on financial aspects, program. options, evaluation., and recommendatlons~ The Traffic Authority has directly provided a complete copy of the report to each Council Kember, under separate cover, and a reference copy is a available for public viewing in the city Clerk's Office, City Hall., 250 Hamilton Ayenue~ Palo Alto. The Measure A p~ojects that most directly affect Palo Alto included the widening of Route 101, to provide an additional travel la~e in the median in each direction, and the construction of sound walls along residential areas adjacent to tbe free .. ay. Tr,is 'Work 'Was all CMR:J4?:91 , I , . .... --:-.., ,-­ ~ - program. Palo Altols earlier direct experience .ith the Traffic Authority ~as ver)~ positive in terms of sensitivity, responsiveness,. professionalism and achievemertt~ Ongoing indications are that such favorable attributes ~ntinue~ The primary issue currently facing the Traffic Authority is a lack of sufficient funds, for a variety ot reasons, to complete the Measure ... projects. This gives rise to oil need to consider a varie.ty of actions, pursue alternative C01Jrs:es o.f action, and make ~ome difficult choices to address the overall progrdm shortfall. Apart from ~ qeneral overview of the status o.f the Measure A program, Council may wish to hear some comments regarding: (a) any effects that air qilality reqt.O.lations have had or may have on projects# (b) relationship of Measure A projects with the Congestion Mana~ement Proqram# (c) specific measures being considered/taken to reduce the overall program funding shortfall, and Cd) current thinking on the need for# and use of# additional revenue from a potential rene~al of the sales tax increment, ~hich is set to e~irB at the end of a ten year period (1935). Respectfully submitted, MARVrN L. OVERWAY Chief Transportation Official 1¥1tAcU,(/ ;c AUf-J£ vL KENNETH R. SCHREIBER Director of Planninq and community Environment 1. Executive summary -Santa Clara county Traffic Authority 1991 Strategic Plan (D=aft). cc: Will Kempton, Traffic Authority CMIl:347:91 7/3/91 Page 2 , " "' l ~. : -- - Mr. Dave Adams Director of Pubrlc WorM City {If PaID A!to 250 Hamilton A venue Palo .'Ito. CA 943-03 Dear Mr. Adams: 19'91 ORAr""T STRATEGIC PlAN. ATtACHMENT I Zoe LOfgg.n J\Jne 25. 1991 Attached i:c!ha 1991 Draft StraIftgfc Plan for 'lour review and comrr-em. The major issue address.ad in this year'. fl.iO. is the affect of the recent downturn in the economy on L"e Measure A Prog'ram', revenue. In tllf past few vears, the SVjUegi<; Plan has been abre to maintain a bitlance between program expencfrtures and program revenues without re-ducinQ project work. This baran;;e also in\lotved a[1: accelerated sc.hedule f'Or -eanv completion of the t~ree Measure A. Routes {R'OlJtes. 85,.101. and 237). Current sales tax projections, !'lowever, indicate that Measure A sales ta)( revenue will fan far short of the 1990 projections. Without alternative re .... enue sources, not aD pre .... iously funded projeeu; can proceed'. Tl'lerefore. the Traffic Authority must determine which projects can be completed, w'hicl'l projects must be re--schedufed, and which ;:>roiects should be deferrtd until other reVttnL/tis are identified. The recommended course of action to al'leviate the program shartfan is to contjnue to pursue add"rtional revenues through ether sources, while implemef!tif')Q" ~tio"'s 10 balance trle program', revenuti and expenditures. Since the Traffic Authority C;!Innct guarantee addItional revtmues, the 1991 Draft Strategi, Plan incorporates several expenditure re-alJCtion options available to er.min~te the forecasted shortfan. These options inch:de the ronowing act,ons: c R&"schedule remainir.g projeCts on a ·pay as you QO" basis; o Have the State assume the co .. t of an remaining consUuction and right-af-way suPPOrt services; o o fmplement ~wer cost options on the forJowing projects 1. Route 85f1 0' interchange at Bernal Road 2. Route as/1 7 InterchanQ'e ~DC-2 ConnectOt TUflI1eO Defer the fonowing projects to the CompletJon Plan 1. Rcute 237/S80 In~en;hange • Measure A contribution to Stage A 2. Route 851280 [nterct1ange uPQrade In an attempt to avoid deferring other projects to the Completicn Plan, the Traffic Authority IS exploring additional expenditure re"uction oj;lportun·rties. These opportunities include tl'1e de .... efo,pm.ent of addjtionallower cost interchange alternatives at Route 237/North F~rst Street and Route 237IMaude/M~ddlefield, as welT as opportunities for cost sharing wit."" local jurisdictions. in any event the 1991 Draft ~ __ f.l..l!::! is based on continuing final design services fOf all orlginat Initial Plan work even if spet:ific projects are recommended for deterr.J1 to t'he Completion Pia". In this manner, i!' additional revenues become available these projects would be ready for immediate implementation. QSofi TechncbjnI D!Ive, SU!te 224, Son Jaw, Contomio 951~O P:w'rP.o"", rf'CVCl6d POP'!'" '-.', - Mr. Oav& Adams June 25, 1991 PiiI\tB 2 Lower cost alternatives .can be effecti ... s expenditure reduction option.!; if they are east effective. re~eYi!! conge.stion. lmpn:l'<l8 the safety of the existing condition, and can be upgfO!lded 10 "the ultimate project "In the future. Since a large portion o~ the right-of-way along Ro!.Jte 237 is owned by jurisdictions tl'1at benefit from the Authority', activities, the Traffic Authority is encouraginQ local jurisdktions to donate 1his publiC' land 10 the Meil,sure A Pr~fam. The~e donations, a.!-ong lI',:ith other COSt sharing oPPOrtunities with local jurisdictions .... iould sianificantlv redur;e Measure A expenditures and minimize the need to defer ad'.f"rtional Initial Plan prolects to the Completion Plan. The final 1991 Strategis; Plan wlli contain the standard scope, budget .. and Icheduht statemenu customary to the Strattgic: Plan. Since the 1991 Draft f!i.n tla.s nol been itPproved by the Tratf.lc Authority. the 1990 f!i.!:!,& $Cope and budget information are .stin ap,p1icable. As part of the Final 1991 Strategic Plan the Completion Plan projects will be evaluated and' prioritized. To expedite this process, please re .... iew the Completion Plan prOjects ns!ed In the 1990 Svategic Plan and' provide your eommenl$ by Jury 1 5, , 99'. tf ';'0 u do not hit .... e ;II COpy of the 1990 .E:li..Q, please C'Ontact the Traffic Authority itt 1754 Technology Dri ... e, Suite 24:4, San Jose, CA 95110 or by calling (408f 453-3777 and we win send you a copy of the scope and 'cud,et information for an Completion Plan projects. The communhy re .... iew period for the 1991 Strategic Pli,n is lat& Jun., through August. 1991. Three local pubne t'leannlil.s are scheduled in Juty to discuss the recnmmend'ationl in the draft SViteg!c Plan. These meetings are as fonow.s: JulV 9 July rEi July 23 County Board of Supervisors' Chambers 70 Wen Hedding Street. San Jose Mountain VieW City Counei:! Chambsrs 540 Castro Street. Mountain View The Radisson Hotel 399 SWeon Vane",' Road, San Jose 5·7 p.m. 7-9 p,m. After ~.,eorporating the pubnc comments, the final staff recommendatjo!l for the 1991 Strategic Plan wi!! be presented to the Traffic Authority's Policy Advisory board in mjd·Au"l.Jst and to th-e Traffic Avthority'" ear1v September, with final adoption planned for November. 1991. Vl/KfAO/JEKisw dftsprtr. wk. Attachment S'ncerely. WJA~ WlLL KEMPTON Executive Director • i i. j j - IlnAI?I STRATEGIC PLAN JUNE 1991 , , • .;.# : ';~' ~}~ , ,...,~ ,..-~~, ., I F p :r :::::::::o:~~ EXECUTrVE SUMMARY -==-=-~:::==-: \ , • 0" - EXl:CUTlYE SUMMARY Early in the Measure A program, the Saela Cllra Count}' Traffic Authority jd~IHified thr; %leeli for, Strllte,i, t'a» as I mea.m to devetop a plan for ac'nic-... ing the ObjeCt1\1CS of the prosrlm. The Slra[ujc Plan is .intended to be In c\lohuionary document and rev:isions lItt mad(. as information concerning the Kope and ~ost of proJects and the projections of (uture proBram r~",.enue changes.. In the past Cc'\\' years. the Stratesic Plap process has bee!!. able to mai:c.t;o>in !. 'balance betwe~D program expenditures and program revenucs "",ithout .reducing project -a.·ori.:. This has been accoropl.isned despite silAificlIl.t increase!! ill right-of'·"IlI'ay costs and previous. nuctuatlDns ia program revenues through the implemeotaejon of projeC't cost ",oclrols, vattlc engine-eriDI and Ihe identification of other re .. 'ecue sources. Current sales. tax projections. however, indicate that Measure A sales tax revenues ""iIl fall far short oC J990 projectiocs. Wjthout ,Hcrnatlve revenue 50urce~ Dot all prevlousJ:y fUDded project:; ~an proceed_ Therefore, the Traffic AuthOrlty must determiDc ..... hich projects cac be compleled, ,.·hich projects must be rescheduled Ind whIch projects must be deferred until other re'\>'ecuC's are jdentif.ied, Tbjs StulCgic Plan proposes a program scenario jnc[uding recommended steps to be akcft to 'catance expend.itures with revenue ... In the ptOCCM oC dtveloplnl .. recommended. course of action, projections of pro!,.ram rc-.. eoues and elDcnditures-wert' prepared witb a rangc DC 'nIue-50 representing optimistic. pessi.mi.stic aa.4 -oest Iu.ess" scena.rios. These re ... enue and cx,t'endttl!re c!;.timatel> provided the basis for cash flow &.nalyscs wbich identified "rojected year end cash. balances fOt the rcmainder or the program. Ullder the best guess scecario of economic conditions ar.d prosram costs. the endio, cash b3.1ancc is rorccut as. a negati .... e $76,6 million. In addition, interim shortralls or $54,7 million in FY 1993 acd $98.4 million ic FY 1994 Irc identified using (he b-:st suess a.s.suropHons. The r~commeDded course or action to allc"late Measure A shortages is tD cODtinue to pursue additjonat revenues through DIner SDurces, ""'bile impkmentjng the fDllowicg actions to bala!1C'C: tbe M,asure A Prognm for th: ]99) tlAQ: Rucbecltl1t relDalatal' proje('ts 00 • ·p4~ as },Oll 10· balis The first step in balanciti8 t'he $76.6 minion shortfall 1.sSUITIcd tikcly under the best guess scenario.is. to optimize tne use of Ivail&bJe revenues bas~d on economic a:ssumoPtioD whicb seem. reasonable liven ClJrreM conditioD'S. Sa .... in's clln 'M achieved b)' rescheduling work to more closely match expected ca5ft flo .... '. Ind by exttnding construction timetables to avoh1 the eX?eD$.C: 4( more costly accelerated schedules. Assumr!!l coestructlon cost escalat.i::>n remains relatlvely flat, this stralegy also impro"'es interest earnings on Mes!ure A fgnds which Ire drawil dowD at a slower rare. Re~chedu.tiDI projects must also take into consideration the timin, of C(lcSlrouction "is • vis the State Local Partller~hip (SB 300) Program. Jc order to maintain proje.::rs ,,"'jthin the .s.econd cycle of that program to D'13.llimizc: expected matching fund!>, recommcnded' changes jn dates for advertisement and award are 5olioPped by only r .... ·o to the, moPth~ an:! construction s.cbeduJe.s ar" extcnced by just three to four months in most cases as shown belo",,-: L - 306-1 309-50 309-40 102-10 106-20 105-10 104-10 103-20 309-30 106-21 , Prpject Descrjptjon 237t'Maude/MiddJefield'I/C 217/ZlnXer Road I/C 237/First Str-ec:t lie IS: Pr{)spcct to Stevenl Creek SS:Los Gatos CkjSaratoga Ck IS: Dent to Basc.om 85111 Interchange 15/101 rntc1C"hangc 237/Great Amc:rka ParKway IS/Saratoga. A venue I/e Con uruqi 00 Completjon PI Its 1990 furt. 06/94 12/93 12/9.3 10/93 10/93 12/93 12/93 09/93 12/93 05/93 Pr~posc-d ISlSlJ Rescheduled --.ZIll TBD 10/94 12/94 08/94 07/94 08/94 !O/94 09/94 10/94 08/93 These changes .... ould allow (or the comptetion of ROllrc IS by Oclober, J994 and Rout: 237 by ~c::mbeT. J994. "Arhen the rescheduling option is applied to the h~st !I.less scenario, the revised cas.h flaw r~dlJcC's the estimated p!ol!ram shortCall by $6.2 million tc S70.4 milUon. This cas.h flo ..... ,pTo\lid:es the revised base for application Df addltlCioal progum cash now balancing options.. Reqlltsl that CaIt1ans provide :remli.aLDi CODstructioa alld cia:bI·of-wa,. npporl stn'ces If SUle u:peD.It The next option for balancing the Measure A cash flow, i.s to have Caltrans provide constructiolJ and right-of·way support scr"'iees for remaining project work. It DO Cost to the Authodty. Thi.s wouloj reduce Measure A expenditures by S~O million, This optir.D, bowe",er~ is dependent upon Caltrans agrcement and the anilabillty or State support staffinl· If Ca!trans is to provide remaiolrlg s"pport :sen' ices, it is anticipated that the Authority ~'ill need to set aside ;additional f1JIlds to cCrller potential cotlstruclian claims. This claims Cund is pr{)posed at ;U percent o~ the e:;timated S200 million io constructed value for the projects affected. Tb.is action would bring the total availab\e construction con:ingency for these projects 10 1.$ percent, the 5 percent contained' in current engineers estimates plus an addit;onal amount or 2.S perceDt. The prvllision of (his claims fund is in consideration of C.ltrans IlSsQ.ming full construction maoagement respI)Dsit:ilitics and that agency's de.sire for higher levels of contingency. Tb.is option rc~ults in ao estimated oet SIS million reduction ta the base ehh flow demand ""llb the negative balance eQualliDg 555.2 milJi(lD after application of these savings. This: remaining negative cash halance is the 'base: for applying the remaining t'llllO barancing options or dererring rull projects and implementing Tower cast stages as alternate projects. ES·.:! - --_ .. , "', ......... '"" ' ... ~ +">- J_.,IItIlll ... t Lower COlt 0,110. ,.rojects wbe-n poulbtej Pursue COli Shulill op'porlllDttles wid. Local Jurlsr!l"tloDi: .%III! Dder lower pr l orll)' projects .DtIJ alher reu.ltf 101n('tl ca. be hlu1in~ Sued on the eva.luatlon Dr remaiDiDI projects, t ..... O projects are recommended rOI deferral 10 the CompJetioD Plan, the Routes 85/280 h::tercbanse upgrade Pre>jeCI (MSA ]09- J) and the Mca:nnc A share or the: Routes 237/880 IntcrchSl1,c Projeci (MSA Je-44JO).. III addition, ic is recommended that lower cost .!tern8ti'VC5 be CODstruct.:d in lieu of the currcntJy plaD:lJe1 project! ror tbe Routes 15/10J Interchange (MSA 10)420) io SQuth San Jose load the future connector tUl'1nelat the Routes 85117 InterchaOlc {MSA 104·10). T~ese r'Ower cost optior.s and de(errall reduce the MC3:>ure A .shortfall by Itl additional SJ9 .• million. Alona .... ith the previol!1Iy described: expenditure reduc~ioDs.. this lC'nes I shortfall of S3S.4 million. To offsel this remaining shertfatl, the AOithority will be cvaluatillJ lower cos! alterIlativo::s to tbe Tnterch~nie5 at Route 231/North First Street and :2.l7/Maude.fMiddJerield. In ad..:litlen. tile Authority will be pursuing cost sllari~8 opportunhies with tbose local j1Jrlsdictions: which dtreclly bencrit rrom Musure A improvements. Tbe most !lkely opportunity is the possible donation of P1Jblicly owned property needed for Measure A projects. rt is hoped thaI this combination or lower cost optlons aDd cost :sharins OPPoTtunitle1 can oUset fhe remaining .. it~rt(alJ aed avoid (untler p:-oject deferrals. £S-3 ----.-.... -.,.. "-: -..