HomeMy WebLinkAboutItem 02 Transportation FundingAGENDA ITEM
SUMMARY Meeting Date:
3/13/2023
Meeting Type:
Work Session
Staff Contact/Dept.:
Drew Larson/DPW
Kristi Krueger/DPW
Staff Phone No:
541-726-3661
Estimated Time:
40 Minutes
SPRINGFIELD Council Goals:
Maintain and Improve
CITY COUNCIL
Infrastructure and
Facilities
ITEM TITLE:
TRANSPORTATION FUNDING
ACTION
Staff is seeking Council input on how to address the funding gap for the Mill Street
REQUESTED:
Reconstruction project.
ISSUE Cost estimates due to material and labor increases have led to a significant funding
STATEMENT: gap to complete the Mill Street Reconstruction project.
ATTACHMENTS: 1: Council Briefing Memo
2: Capital Projects Overview
3: Mill Street Budget
DISCUSSION/ The City of Springfield has successfully secured discretionary funding from the
FINANCIAL Metropolitan Planning Organization (MPO) and allocated City funds to undertake a
IMPACT: large number of transportation capital projects. A high-level overview of estimated
projects is provided in Attachment 2. Although the projects are listed as one line
each, most projects on the list consist of several phases that span several years that
lead up to construction and project completion. Most projects require establishing
an intergovernmental agreement with the Oregon Department of Transportation to
include each phase of a project (planning, design, right-of-way acquisition, and
construction.)
Staff is seeking Council's input on how to address funding gaps for the Mill Street
project that have occurred due to recent cost increases.
See Attachment 1 for funding reallocation options.
MEMORANDUM City of Springfield
Date: 3/13/2023
To: Nancy Newton, City Manager COUNCIL
From: Drew Larson, Transportation Planner II BRIEFING
Kristi Krueger, Interim City Engineer
Jeff Paschall, Community Development Director
Subject: TRANSPORTATION FUNDING MEMORANDUM
ISSUE: Cost estimates due to material and labor increases has led to a significant funding gap
to complete the Mill Street Reconstruction project.
COUNCIL GOALS/
MANDATE:
Maintain and Improve Infrastructure and Facilities
BACKGROUND: General construction and design costs all around the United States have
greatly increased over the last several years. With the approval of several large transportation
funding packages in the western United States and other factors, contractors and consultants
have plenty of work to do and bids are coming in much higher for all capital projects.
Specific factors impacting the current estimate of Mill Street reconstruction include updating
pedestrian facilities to meet current Americans with Disabilities Act (ADA) design standards,
the cost of ADA ramps has increased significantly, providing bicycle facilities as required and
maintaining some on street parking while minimizing right of way acquisition has created design
and construction complexities. Justin 2021, highway construction costs jumped 7.3% according
to the Engineering News Record Construction Price Index.
MPO Discretionary Funding
The Central Lane Metropolitan Planning Organization (MPO) receives funding from the federal
government for transportation through the Oregon Department of Transportation (ODOT). These
funds consist of Surface Transportation Block Grant (STBG), Transportation Alternatives (TA),
and Congestion Mitigation Air Quality (CMAQ) funds. Current funded projects include McVay
Highway National Environmental Policy Act (NEPA) Analysis, Walking and Biking Network
Improvements, Q Street Reconstruction, Mill Street Reconstruction, and signal enhancements.
These projects include planning, preliminary engineering, right of way acquisition, and
construction phases. See Attachment 2 — Capital Projects overview.
Mill Street Reconstruction
Mill Street is currently at 30% design to reconstruct from South A St. to Centennial Blvd. with
construction scheduled to begin in 2024. The project is slated to reconstruct the roadway due to
the pavement failure. The project will include American Disability Act (ADA) pedestrian ramp
upgrades, lighting improvements, and adding required stormwater treatment facilities. The
corridor currently does not have bicycle infrastructure as required in Springfield's
Transportation System Plan and Development Code and as such will be installed as part of the
project. The project will also include traffic calming measures to improve safety. While the
corridor is being reconstructed, the City will take the opportunity to replace the aging
wastewater and stormwater lines as well as line the lateral sanitary sewer lines.
Attachment 1 Page 1 of 3
MEMORANDUM
Page 2
In 2018, staff estimated approximately $3,180,000 to reconstruct Mill St. At that time, Council
gave direction to seek MPO funding for a set of projects including $2,853,414 for reconstruction
of Mill Street. The MPO originally awarded $2,300,000 in STBG funds for the project.
Subsequently, the MPO awarded a total of $4,454,208.59, including a recent addition of
$859,263 in MPO redistribution funds. The City of Springfield has allocated $7,518,133 from
existing wastewater and stormwater funds. The total allocated funds from the MPO and City of
Springfield is $11,972,342. The current project budget is estimated to be $16,972,650. The
existing budget shortfall is $5,000,307 (see Attachment 3 --Budget Breakdown).
The City Manager's office is working with State and Federal legislations and has requested
earmark funds for Mill Street Reconstruction to cover the current budget shortfall. We have
requested $2 million from the State Legislature and $4 million from the Federal Legislature.
However, staff does not anticipate hearing if these requests are successful until mid- to late -
summer.
If City Council would like to continue prioritizing delivering the Mill Street Reconstruction
project as soon as possible and stay on schedule, the Council can request that the MPO cancel
another MPO funded project and reallocate the federal funds to Mill Street. Staff has identified
reallocation of federal funds awarded for the Q Street Reconstruction project as the best option
given it is also STBG funds and close to the amount needed.
In the event Springfield receives earmarked funds from either the State or Federal legislatures,
staff can request that the MPO reallocate the federal money back to the Q Street Reconstruction
project and move forward on its current timeline. The reallocation of funding would be decided
by the Transportation Planning Committee of the MPO.
O Street Pavement Preservation
Q Street from Pioneer Parkway East to 5' Street is a major urban collector in Springfield that
requires reconstruction. It serves busy commercial establishments including two grocery stores,
restaurant businesses, and retail stores as well as provides access to a residential zone. This
project also feeds into the onramp onto Highway 126. Facilities need to be brought up to current
standards including making ADA improvements and renewing bike lane striping.
The MPO allocated $4.71 million to the City of Springfield from the available Surface
Transportation Block Grant to complete this project. The project is scheduled to begin
construction in 2025 and was slated to be Springfield's pilot project to obtain Federal
certification to deliver projects funded with federal monies. Springfield is currently not certified
and relies on ODOT or other certified jurisdictions to deliver federally funded projects. The
City can use the Walking -Biking Network Improvement project for the federal certification pilot
project if `Q' Street does not end up being federally funded.
If Council elects to cancel Q Street reconstruction and reallocate federal funds, Council can
identify a new funding source to move forward with the project. One option staff has identified
is potentially adding Q Street to the next bond measure. The Council has a work session
scheduled on April 3, where staff will review the street condition report and review potential
project lists. If the bond measure is not an option Council wants to pursue, staff can apply for
MPO discretionary funds during the next funding cycle beginning in 2026.
RECOMMENDED ACTION:
• Direct staff to request that the Transportation Planning Committee of the MPO cancel
the Q Street project and re -allocate MPO discretionary funds from the Q Street project,
$4.71 million, to the Mill Street construction funds; and
• Identify a funding source to move forward with Q Street reconstruction on a similar
timeline, either:
Attachment 1 Page 2 of 3
MEMORANDUM
Page 3
a. Direct staff to include Q Street reconstruction in the next bond measure; or
b. Direct staff to apply for MPO discretionary funds during the next funding cycle;
or
c. A combination of Bond and MPO Funds.
Attachment 1 Page 3 of 3
Capital Projects Overview
Project Description Source MPO Funding City Funding Status
Springfield Transportation CRP $300,000 $34,336 Not Yet
Transportation Planning Work Started
System Planning
2024
OR225: OR126—
end of City juris.
McVay Highway
NEPA Analysis
STBG
HIP
$717,840
$3,911,302.00
$82,160
$447,666.02
In Process
In Design
Walking and T Filling the gaps HIP
biking network
in the walking
TA
improvements
and biking
CRP
networks
CMAQ
Q St: 5th St to
Reconstruct Q
STBG
$4,226,283.00
$483,717.00
Not Yet
Pioneer Pkwy
Street from 5t"
Started
East reconstruct
St. to Pioneer
Pkwy East.
S. 28th Street
Pave the road to
CMAQ
$1,311,000.00
$604,029
In Design
dust mitigation
mitigate dust
create a
smoother driving
surface
Mill Street: S. A
Complete
ACPO
$4,454,208.59
$7,518,133.61
In Design
Street to
reconstruction
STBG
Centennial
from S 'A' St. to
Boulevard
Centennial Blvd.
City of
Install signal
HSIP
$1,875,702.82
$157,397.18
In Design
Springfield
enhancements
signal
to increase
enhancements
traffic flow.
MPO funding consists of federal funds awarded by the Metropolitan Planning Organization (MPO)
Funding Source Ability to Reallocate
ACPO Advance Construction - Urban STBG Easy—Already allocated to Mill Street
CMAQ Congestion Mitigation and Air Quality Very Difficult
CRP Carbon Reduction Program Difficult
HIP Highway Improvement Program Not Available for Mill Street
HSIP Highway Safety Improvement Program Not Available for Mill Street
STBG Surface Transportation Block Grant Easy
TA Transportation Alternatives Difficult
Attachment 2 Page 1 of 1
Mill Street Funding
PRELIMINARY ENGINEERING
PHASE
ESTIMATED COST
MPO
ALLOCATED
FUNDING
CITY ALLOCATED
FUNDING
FUNDING GAP
Wastewater
$ 72,592.00
$ 150,000.00
$ 72,592.00
$ -
Stormwater
$ 105,959.00
$ 105,959.00
$ -
Road
$ 1,453,739.00
$ 1,453,739.00
$ -
ODOT
$ 125,000.00
$ 99,828.00
1 $ 936,432.00
$ 25,172.00
Total
$ 12,882,922.00
$ 2,810,911.59
$ 6,242,880.61
$ 3,829,129.80
Total
$ 1,757,290.00
$ 1,553,567.00
1 $ 178,551.00
1 $ 25,172.00
RIGHT OF WAY (ROW) ACCQUISTION/TEMP. CONSTRUCTION EASEMENT
PHASE
ESTIMATED COST
MPO FUNDING CITY FUNDING
GAP
ROW
$ 400,000.00
$ 89,730.00 $ 160,270.00
$ 150,000.00
CONSTRUCTION COSTS
PHASE
ESTIMATED COST
MPO FUNDING
CITY FUNDING
GAP
Wastewater
$ 3,272,975.00
$ 3,272,975.00
$ -
Stormwater
$ 2,969,905.61
$ 2,969,905.61
$ -
Road
$ 6,640,041.39
$ 2,810,911.59
$ 3,829,129.80
TOTAL
1 $ 1,932,438.00
1
1 $ 936,432.00
$ 996,006.00
Total
$ 12,882,922.00
$ 2,810,911.59
$ 6,242,880.61
$ 3,829,129.80
CONSTRUCTION ENGINEERING, i.e. Inspection & Construction Management
Wastewater
$ 490,946.00
$ 490,946.00
Stormwater
$ 445,486.00
$ 445,486.00
Road
$ 996,006.00
$ 996,006.00
TOTAL
1 $ 1,932,438.00
1
1 $ 936,432.00
$ 996,006.00
Attachment 3 Page 1 of 2
Total Project Cost
Total Allocated (MPO & City) Funds
Total Funding GAP
Proposed Q Street MPO Reallocation
[Total Funding Shortfall Following Reallocation
Attachment 3 Page 2 of 2
$ 16,972,650.00
$ 11,9721342.20
$ 5,000,307.80
$ 4,710,000.00