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Agenda 05/13/2013 Item #16A315/14/2013 16.A.31. EXECUTIVE SUMMARY Recommendation to reinitiate the Limerock Road Conversion Program (LRCP) in FY 2013 in the amount of $276,500, and approve all necessary budget amendments. OBJECTIVE: To request that the Board of County Commissioners (Board) evaluate the long term benefit of converting limerock roads to paved roads and if upon finding that it is in the best interest of the community, to direct the County Manager to reinitiate the LRCP. CONSIDERATIONS: LRCP funding has been deferred since 2009 due to budget reductions necessitated by the severe erosion and taxable value resulting in the loss of property tax revenue. The focus was placed on the maintenance of existing paved roads, ancillary drainage systems and structures. The Road Maintenance department routinely receives inquiries and complaints regarding the status of the LRCP. Currently there are approximately 87 countywide miles of limerock roads remaining to be converted to paved roads. There are approximately 42 miles in Golden Gate Estates alone. In an effort to p rovide better service and achieve a substantial long term financial savings, the Board recently asked Staff to evaluate the idea of elongating the resurfacing cycles on some of the already paved local roads and allocating the savings to the LRCP. The elongated resurfacing cycles would not apply to primary arterials and major collectors. Staff estimates that it could allocate approximately $300,000 annually to the LRCP without compromising the structural integrity of the local paved roads that are deferred. The Road Maintenance department does annual evaluations of existing paved roads and should the elongated resurfacing cycles on local roads begin to negatively impact the structural integrity of these facilities, staff would notify the Board and seek further direction. In order to provide better service and achieve a substantial long term cost saving, staff evaluated the cost to benefit of an initial paving and the long term maintenance of one mile of limerock road compared to the ongoing maintenance costs if that road is not paved. It costs approximately $7,000 to $9,000 annually to maintain one mile of a limerock road. It costs approximately $75,000 to $100,000 to pave that same mile and the average lifespan of that pavement is approximately 25 years before it must be resurfaced again. After a ten year period, the average funds expended to maintain a mile of limerock road equals the cost to pave that road. Using present day costs and assuming two complete resurfacing cycles (50 years), the funds required to maintain a lime rock road would range from $350,000 to $450,000 vs. $150,000 to $200,000 to maintain a paved road. A more detailed analysis was also conducted using a $300,000 annual allocation and a phased conversion of the Golden Gate Estates roadways that showed a positive return by 2025 and a net savings of approximately five million dollars by 2047 (report attached). Limerock roads exist throughout the county. The LRCP will improve the level of service for all unpaved roads and the corresponding cost savings would benefit all county residents. Currently there is $76,500 remaining in the Gulf American Corporation (GAC) Road Trust fund (606). These funds are from a 1977 settlement agreement with Avatar Properties in the amount of $1,300,000, to be used for the restoration, maintenance, upgrading and paving of certain unacceptable limerock roads within the Golden Gate Estates area. These available funds would Packet Page -1496- 5/14/2013 16.A.31. be combined with a proposed $200,000 allocation from Fund (313) in FY 2013 for the purpose of reinitiating of the LRCP. Future year allocations are proposed at $300,000 subject to Board approval. If approved, staff will prioritize the GAC funds within Golden Gate Estates and develop a countywide prioritization schedule for Board approval. FISCAL IMPACT: Funds in the amount of $200,000 is available within Gas Tax Fund (313) and $76,500 is available from the Gulf American Corporation (GAC) Road Trust Fund (606) to establish in FY2013 budget for the conversion of limerock roads without significantly impacting the existing resurfacing program. To facilitate budget management, a new project number within Gas Tax Fund (313) will be created. GROWTH MANAGEMENT IMPACT: This is consistent with section (VIII) Policy 1.2.2: of the Growth Management Plan "The Collier County Transportation Department shall continue to explore alternative financing methods to accelerate paving of lime -rock roads in the Estates." LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is legally sufficient, and requires majority support for Board approval. -JAK RECOMMENDATION: That the Board approve the allocation of $200,000 from Gas Tax Fund (313) and $76,500 from the GAC Road Trust fund (606) for the purpose of reinitiating the LRCP. Further, to direct the County Manager to propose a $300,000 appropriation in the FY2014 budget for the LRCP and develop a prioritization schedule for Board approval and approve all necessary budget amendments. Prepared by: Nick Casalanguida, Administrator, Growth Management Division Attachments: Comparison Report Packet Page -1497- 5/14/2013 16.A.31. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.A.16.A.31. Item Summary: Recommendation to reinitiate the Limerock Road Conversion Program (LRCP) in FY 2013 in the amount of $276,500, and approve all necessary budget amendments. Meeting Date: 5/14/2013 Prepared By Name: PuigJudy Title: Operations Analyst, GMD P &R 5/7/2013 1:23:00 PM Submitted by Title: Deputy Administrator - GMD,Business Management & B Name: CasalanguidaNick 5/7/2013 1:23:01 PM Approved By Name: PuigJudy Title: Operations Analyst, GMD P &R Date: 5/7/2013 1:29:22 PM Name: MarcellaJeanne Title: Executive Secretary,Transportation Planning Date: 5/7/2013 1:36:58 PM Name: KlatzkowJeff Title: County Attorney Date: 5/7/2013 2:04:35 PM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 5/7/2013 3:34:54 PM Name: IsacksonMark Packet Page -1498- 5/14/2013 16.A.31. Title: Director -Corp Financial and Mgmt Svs,CMO Date: 5/7/2013 5:05:17 PM Packet Page -1499- 5/14/2013 16.A.31. GOLDEN GATE ESTATES LIMEROCK ROADS MAINTENANCE OF LIMEROCK ROADS VERSUS CONVERSION TO PAVED ROADS Annual Cost to Maintain Limerock Roads $373,950 Golden Gate Estates $402,390 Remainder of County $775,710 Countywide Total Approximately 41.55 miles of Limerock Roads remain within Golden Gate Estates. Cost per mile, per cycle, including labor, equipment and material, approximately $2,250. Roads are graded 3 to 4 times annually on average. Outside of Golden Gate Estates is an additional 44.71 miles of limerock roads. These include those in Sunset Estates off Santa Barbara Blvd (District 4 - ; those in eastern Collier County east of SR 29 and north and south of US 41; and a few in the Immokalee area (District 5 - . These roads are maintained on the same cycle as those in the estates. Cost to Convert Limerock Roads to Paved Roads $3,076,000 (Total) This is the cost to convert all existing limerock roads in Golden Gate Estates to paved roads. Based on a funding for conversion of $300,000 annually, it will take approximately ten (10) years to convert all of these roads to paved roads. Cost to Maintain Remaining Limerock Roads $2,327,000 (Total over 10 year conversion) There will still be limerock roads that need to be maintained during the ten years it takes to complete the conversion program. The cost to maintain is reduced annually as fewer miles of limerock road remain until all limerock roads are paved. By 2025, the cumulative cost to maintain limerock roads exceeds the cumulative cost to pave them, $5,235,300 vs. $4,953,159. Ongoing Cost to Maintain Paved Limerock Roads $3,387,700 (Total cost to resurface converted roads after 25 year life cycle) This is the cost to resurface all of the converted limerock roads after a life cycle of 25 years. At the end of a full life cycle (conservatively estimated at 25 years for local paved roads) for the converted roads, the total cost including conversion, interim limerock road maintenance and resurfacing of all roads, is approximately $8,340,839 over a period of 34 years. For that same 34 year period, the cost to continue maintaining the limerock roads within Golden Gate Estates in their current condition is approximately $13,088,250. Packet Page -1500- N n » e m o n 2013 N Vl C d j T 2015 k y 2016 x017 t r r 2016 Di N 2019 n w � Packet Page -1501- o y n n G O ° f N m 'o' 6 2022 o d a 2023 N a2024 ;' e 2025 a 7 2026: a � n 7 A S � 3029 2030 A T y d 2031 2032 J 2033 , 30341 1t1 3035 0) O < S r z a 0 d � N i N y 0. 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