TO: JAMES B. HENDRICKSON, CITY MANAGER

As the Citizen’s Advisory Committee is being formed to review the need for the Utility Users Tax, you have asked that we identify our major infrastructure needs and associated costs for the next ten to twenty years for the Committee’s use. The Committee would then be able to determine a level of funding through the Tax that would be appropriate.

The City’s major infrastructure includes the following:

• Roadways, including alleys
• Local sanitary sewers
• Storm drains
• City Hall building

Our City is essentially built-out and we do not expect significant expansion of our infrastructure, so our needs will be in regards to maintenance and replacement of existing infrastructure. The City has previously developed Capital Improvement Programs for our roadways, sewers, and storm drains in order to provide for their systematic maintenance and replacement. The following analysis is primarily based upon the information we have obtained from these Capital Improvement Programs. Although we do not have a Capital Improvement Plan for our City Hall building, we do not anticipate any need for significant expenditures relating to the building in the next 20 years.

Roadways

The City developed a Pavement Management System (PMS) in 1996 to manage the maintenance of its roadways. The defined goal of the PMS was to bring all our roadways into a "good" to "excellent" condition during the first cycle. When the PMS system was originally developed, every street in the City was surveyed and given a rating in several categories. The City was then broken down into seven sections; each of which would be a project area for a fiscal year. Staff then identified whether the street needed to be slurry sealed or overlaid, based on the street’s condition. The budget for Fiscal Year 2002-03 funds the final year of the first seven-year cycle.

Now that the first cycle is about to be completed, it is necessary to update the ratings of the streets within the City and determine whether the current funding levels are appropriate. Because of projects that have been completed, it may be possible to lower the budgets for future years and still maintain all of the streets in a "good" to "excellent" condition. The City Council has approved funding in Fiscal Year 2002-2003 for an update of the previous PMS to determine the condition of the roads and the appropriate level of funding that is required.

During Fiscal Year 2002-2003, the City has budgeted the following for street improvements:

Staff believes that the main surface of the streets is in better condition than it was when the previous PMS was performed. However, the conditions of curbs, both asphalt and concrete, are in a significant state of disrepair in the City. Staff believes that an aggressive program to replace or repair the curbs needs to be pursued. The new PMS will include an analysis of the curbs in the City so that staff can coordinate future curb replacements with improvements to the main asphalt surface of the roadway. The cost for the curbs is difficult to assess at this point prior to the PMS, but we have attempted to provide a rough order of magnitude estimate. The 100,000 lineal feet of curb that we believe needs to be constructed is of two types, either an eight-inch high concrete curb or a rolled asphalt berm. The average price for these two curbs is around $20 per lineal foot. To replace this curb in the next twenty years would then have a total cost of $2,000,000, or $100,000 per year.

If we assume that half the number of streets that needed an overlay in the past can now be slurried, we can revise our current fiscal year’s budget for the future. The cost of the slurry seal is around $0.14 per square foot, while the cost of the overlay is approximately $0.88 per square foot. If we assume that we only need to overlay half the streets that we have in the past, and we pursue an aggressive curb replacement program, a revised annual budget is as follows:

Sewers

The sewer system for the City of Palos Verdes Estates is comprised of a network of local sewer pipes, trunk sewer pipes, and four (4) sewage pump stations. The trunk sewer pipes and sewage pump stations are owned and maintained by the Los Angeles County Sanitation District. The local sewer pipes are owned by the City, and are maintained by the Los Angeles County Department of Public Works. Most of these pipes and pump stations were installed during the development of Palos Verdes Estates from forty to fifty years ago. These pipes and pumps will continue to age with time, and will need to be rehabilitated or replaced prior to their failure.

Rehabilitations, repairs, and replacements performed to the trunk sewers or to two of the pump stations are the responsibility of the Los Angeles County Sanitation District, and are funded through sewer fees paid to the District. Rehabilitations and replacements performed to the local sewers and two of the pump stations are the responsibility of the City, and are funded with City funds. Therefore, the City needs to know the condition of the local sewers, and to budget for their systematic rehabilitation and replacement.

The City hired a consultant to prepare a Master Plan of Sewers for all public sewers within the City. The report contains a ten-year plan for rehabilitations and replacements to the local sewers. For the purposes of the Citizen’s Advisory Committee, Section 6 of the report is most pertinent. The following is taken from Section 6 of the report:

"The primary goal of the Capital Improvement Program (CIP) is to provide the City of Palos Verdes Estates with a long range-planning tool for implementing its sewer infrastructure improvements in an orderly manner, and providing a basis for financing of these improvements. To accomplish this goal, it is necessary to determine the estimated cost of the needed improvements and prioritize the projects in a manner that will provide a basis for reliable service in a fiscally responsible manner.

The needed capital improvements were identified as a result of assessment of the system through capacity analyses, CCTV video inspections, and physical facility inspections.

6-1 Capital Improvement Project Priorities

The capital improvement projects were selected primarily with consideration of safety and health of the public and protection of the environment by minimizing the possibility of overflows. The project priorities for improvements to the sewer collection system were based upon the following:

1. Structural condition based on CCTV reports and review of video tapes

The portions of the system with significant structural damage or major sags that may lead to sanitary sewer overflows are given the highest priority. These portions are ranked "Very Poor" in system condition assessment, and are recommended to be replaced with new facilities. Sixteen reaches of CCTV inspected sewer totaling 4,300 feet (4.3 percent) were in this category.

2. Level of root intrusion and resulting damage to collection system pipes determined from review of CCTV recordings:

The portions of the system with heavy root intrusion impeding the free flow of wastewater are given the next highest priority. These portions are also ranked "Very Poor", and are recommended to be replaced with new facilities. Twelve reaches CCTV inspected sewers totaling 2,250 feet (2.2 percent) were in this category.

The portions of the system with minor structural damage and moderate root intrusion not impeding free flow of wastewater are given the next priority, along with pump station replacements. These portions of the gravity sewer system are ranked "Poor", and are recommended to be spot repaired at the location of the structural damages, and root treated. Sixty one reaches of CCTV inspected sewers totaling 16,944 feet were in this category. The actual method of deficiency elimination should be determined through preliminary design studies.

3. Pump Stations

The pump station facilities do not meet many current criteria, and are approaching the end of their useful lives. Failure of the pump stations will result in overflows unless maintenance crews can respond to emergencies rapidly. They should be replaced as soon as funding can be developed, following the improvements to the portions of the gravity system rated "Very Poor".

4. Pipe Size

The portion of the City’s collection system, 8 inches in diameter and larger, is maintained by Los Angeles County Department of Public Works. Currently, the City has to make separate arrangements for maintenance of the smaller pipes. In order to provide unified maintenance for the entire system, the smaller pipe should be replaced with 8-inch diameter pipe.

Since capacity deficiencies were not identified in the hydraulic model, the capacity condition did not affect the project priorities.

6-2 Capital Improvement Phasing

The City of Palos Verdes Estates should improve the "Very Poor" portions of the gravity sewer system first. The estimated cost of the these improvements for the currently CCTV inspected portion (25 percent of the total) is approximately $1,863,000. It is anticipated that the balance of the system that will be CCTV inspected in the future will be similar to the portion that has been inspected. Therefore, a total expenditure of $7,452,000 is expected to replace the "Very Poor" portions of the system. Since the balance of the system will be inspected over the next three years, these improvements can be implemented in as soon as five (5) years, allowing two years for analysis, design, bidding, and construction following each year’s CCTV inspection program. It can be extended over a 10-year span, as long as the reaches of sewer with heavy root intrusion are regularly maintained and monitored.

Improvements to the portions of the gravity sewer system rated "Poor", and the pump stations should be implemented next. The estimated cost of the gravity sewer improvements for the portion of the system CCTV inspected is $3,850,000. Anticipating similar conditions with the balance of the system, the City should plan on a total expenditure of $15,400,000 to improve the gravity system rated "Poor." This program can be implemented over a 15 to 30-year duration, improving the worst structural defects first, and maintaining a root treatment program.

The replacement cost for the two pump stations and their force mains is estimated at $4,540,000. The condition of the pump stations should be monitored by LACDPW, and improvements should be implemented over the next ten (10) years.

The City’s system includes 9,667 feet of 6-inch diameter pipes. The cost of replacing these facilities is estimated at $2,000,000. It is desirable to replace these with 8-inch diameter pipes and provide unified maintenance for the entire system. However, unless sufficient funding can be generated, this should be implemented after the "Very Poor" and "Poor" portions of the gravity system and the pump stations have been improved.

In summary, the total present (2002) cost of eliminating the Very Poor and Poor rating of the gravity system, and improving the two pump stations to current standards may cost from $12,253,000 for the currently inspected system to $29,392,000 for the entire system. The phasing of the improvements will depend on the ability to generate the needed funding, and the amount of improvements that can be handled by the City annually."

The table at the end of this report summarizes these proposed expenditures. Please note that one of the proposed expenditures is accomplished over a twenty-year period, and we have shown the annual expenditure based on the twenty-year period. Also, it is possible that the Los Angeles County Department of Public Works may fund a portion of these improvements, but staff has not been able to obtain any documentation or assurances as to any specific commitments.

Storm Drains

The City has utilized much of the Utility Users Tax funds since 1983 for new storm drain construction. The initial program focused on bluff-top drain refurbishment and replacement. Previously constructed storm drains that terminated at the top of the bluffs were causing deterioration and erosion to the bluffs and could eventually jeopardize private and public properties.

In 1993, the City approved a Master Storm Drainage Study that identified the storm drains that needed to be built due to drainage deficiencies. This study integrated needs for interior storm drains with the needs for the bluff-top storm drains. A ten-year prioritized Capital Improvement Program was part of the study and proposed a schedule for the drains to be built due to the relative need for each drain. The City has been implementing this program by building many of the drains, and will complete the program, with the exception of one drain, with funds from the Utility Users Tax that expires June 30, 2003. The project that remains consists of improvements to the Paseo Lunada storm channel downstream of the outlet near Lunada Bay Elementary School. Our consultant has prepared several options that vary significantly in cost, from a $5,000,000 drilled storm drain to a $350,000 erosion protection project. The consultant has recommended that the erosion protection project could be implemented first, and that conditions surrounding the channel be monitored to determine if additional work is warranted. More specifically, the $350,000 would be used for erosion protection improvements ($50,800), side slope protection improvements ($153,100), canyon undermining protection improvements ($39,200), landslide protection and monitoring ($85,900), and an escalation factor due to the age of the report ($21,000/6%). It is possible that the local erosion protection is not a long-term solution and that the City will eventually need to implement a more costly option such as the sheet piles ($556,900) or drilled pipe ($4,800,000).

One item that the scope of the Master Storm Drainage Study did not include was the replacement of existing corrugated metal pipes (CMP) in the City that were sized appropriately. CMP was used extensively in the 1940’s and 1950’s because of its cost effectiveness. The material was much cheaper than concrete pipe and the lighter weight made installation much easier. CMP typically has a useful life of 40 years, although we have found that the pipes in our City deteriorate quicker due to the corrosion that results from our proximity to the ocean and due to the high velocities in the pipes from the steep slopes of the drains. Therefore, most agencies like ours are going through comprehensive replacement programs or programs to line the pipes with a material that will last for many years to come and eliminate leaking.

The public works department has completed the video inspection of all the known public CMP storm drains in the City to determine their condition. There is approximately 7700 lineal feet of CMP in the City. Different locations are in various stages of deterioration, but it all should be replaced before further damage is done. Staff estimates that to line or replace the pipes will cost approximately $200 per foot for the design and construction costs, or $1,540,000 total.

An additional potential need for funding in regards to our storm drains is for compliance with the Clean Water Act. Two programs mandated by the Clean Water Act are the National Pollution Discharge Elimination System (NPDES) and the Total Maximum Daily Load (TMDL) program. NPDES requires programs to be implemented by the City to minimize pollutants that reach waterways and water bodies. The NPDES program has been in effect since 1991 and has been modified in 1996 and 2001. The costs from the NPDES program are significant, but can be accommodated without any funding from the Utility Users Tax.

However, the TMDL program is just beginning to be implemented and the associated costs can be enormous. The theory behind the TMDL program is that each waterway and water body has an assimilative capacity, meaning that a certain amount of each pollutant can be absorbed without negative effects to any of its beneficial uses. These programs are pollutant specific and have been identified for implementation over the next ten years. One of the first TMDL programs to be implemented is for trash in Ballona Creek. The cities that discharge to Ballona Creek have 10 years to eliminate all trash from entering Ballona Creek. Not only is this an impossible task, but the costs associated with it have been estimated to be in the billions of dollars.

The next TMDL that is being developed by the Los Angeles Regional Water Quality Control Board (LARWQCB) that our City will be impacted by is for bacteria entering Santa Monica Bay. The bacteria that are of concern are those that are representative of fecal matter. These types of bacteria have been associated with various diseases that can affect surfers or others that are swimming in the water body. Typical sources of the bacteria and the feces are from illegal sewage connections, sewage overflows, dogs, and any other warm-blooded animals, including peacocks. There is significant controversy as to which bacteria to monitor, what levels pose a risk, and whether some exceedances of a standard during large rainfall events could be allowed.

Regardless of the outcome of the particulars, it is reasonable to expect that the City will need to aggressively pursue a program to reduce the flow of bacteria into the ocean. There are several programs such as upgrading our sewers that will assist in this goal, but the direction of most cities is to construct low-flow diversions of stormwater into the sewers. These are essentially a pipe that conveys small amounts of water from the storm drains into the sewers, where it will flow to a treatment plant before being discharged into the ocean. Low flows in storm drains typically consist of runoff from irrigation, washing of cars, and washing of driveways and sidewalks. These flows carry higher concentrations of pollutants during non-rainy days when it can be expected that more people will be in the ocean than on rainy days. The diversion of these low flows not only reduces the bacteria flowing into the ocean, but also the oil, pesticides, metals, and other pollutants.

The cost for low-flow diversion structures is comprised of initial construction, sewage fees, and on-going costs such as maintenance. Our City has approximately 24 individual storm drain outlets that could be required to implement low-flow diversions. We are continuing to work with Los Angeles County, LARWQCB, and the City of Los Angeles to determine other ways to comply with the TMDL and to try to minimize the costs associated with the TMDL, but we would recommend that at least $100,000 be allocated per year for testing and structural improvements to comply with whatever is eventually mandated. Our worst fear is that the stormwater from each storm drain outlet would be required to be treated in either a local treatment plant or at a regional treatment plant. In either case, the costs for treating the stormwater could reach into many millions of dollars per estimates provided by the LARWQCB. We hope that by using other methods and requirements that the cost will be significantly less.

Summary

The proposed programs to manage the City’s capital improvements are summarized in the following table. The "Period to Implement" category has been included as a suggested period in which each program can be implemented. These time periods are not absolutes and could be modified if needed. However, staff would caution that delaying these types of maintenance programs may be "penny wise" and "pound foolish". For example, the costs to rehabilitate asphalt that is in severe disrepair can be up to ten times the cost to rehabilitate asphalt that is in reasonably good shape. Also, the costs associated with a failure of a sewer or storm drain system can be enormous compared to the money saved by delaying needed repairs.

Please let me know if you have any questions.

Summary Table

Attachments