City Streets: Investing in a Neglected Asset

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CITY OF LOWELL Lowell Street Fund Revenue FY 05-06 ss~ ooo,__ $aa,ooo _---- --- I Lane County Funding ~ State Highway Fund Revenue For Lowell, a local gas tax would not be feasible since there are only two small gas stations, which are not located on a major street or highway. Most Lowell residents currently buy gas in Eugene and Springfield on their way to and from work. A transportation utility fee would also be difficult for the city of Lowell. This fee would have to compete with high water and sewer fees that average $81.95 per month. The water and sewer rates are high as a result of the small economy of scale inLowell -the same would be true for a transportation utility fee. The city would have to charge approximately $15 per month per dwelling unit just to cover the loss of county street funding. Because Lowell has never been able to fund a comp h emost cit~izenoattentlon, rather than those city targets scarce resources on prof ects that recely that maximize the life of the city's pavement investment. Lowell's Critical Street Project List: 1. Alder Street: Condition -Section of the street is in need of resurfacing. 2. Main Street: Condition -Section of the street is in need of resurfacing and storm drainage improvements. 3. Damon Street: Condition - Currently a gravel road in need of new street construction. 4. 6'h Street: Condition -Street construction and extension. 5. Sidewalks: Condition -Several secai nd to im Trove pedestr an safetywalk construction in accordance with the city's master plan, p Note: The city of Lowell has no resources to fund the technical staff needed to estimate costs for these projects. CITY OF MILWAUKIE Milwaukie's local streets are in a state of rapid decline, some have already failed, and funding is not adequate to turn the situation around. If nothing is done, the roads will worsen and the cost to remedy the situation will skyrocket. - Miiwaukie's "Problem Statement" MILWAUKIE QUICK FACTS • 2006 Population: 20,835 (an increase of 4 percent in 10 years) • Funding Need: An additional $600,000 annually is needed to maintain Milwaukie's 138 lane miles. An additional total cost of $4 million is needed to bring all streets up to "goad" condition. • Highways 244 and 99-E are located in Milwaukie. • Local Economy: Mixed Commercial. Heavy and Light Industrial - PCC Structurals (over 1,000 employees); Oregon Cutting Systems (aka Blount -over 1,000 employees). Mixed- Use Development Downtown. The city of Milwaukie estimates that it needs $4 million to bring all of its streets up to "good" condition. The city budget committee and Citizen's Utility Advisory Board recommended the city's 138 lane miles of paved streets be treated as a capital asset worthy of the same management as the sewer, water and storm water systems. In 2004, the value of Milwaukie's street system (based on replacement cost) was estimated at $65 million - a figure that is increasing rapidly with inflation. In 2004, Engineering Information Services Inc. (EIS) visually inspected Milwaukie's streets. When combined with asub-surface inspection conducted in 1995, only 55 percent of the street system ranked in good condition. The EIS report concluded that the value of deferred street maintenance was rapidly growing, and deteriorating streets were passing the point of effective maintenance and preservation. In July of 2006, as a part of Milwaukie's newly-approved Street Surface Maintenance Program, the city adopted the goal of raising the entire street network's pavement condition rating to within the "good" range and maintain it at that level. This requires not only the city's maintenance plan for projects, but a stable, constant source of street fund revenue. .City Streets: Case Studies -Page 37 City Streets: Case Studies -Page 36