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City of SpringfieldOffice of Public Works

Street & Sewer Infrastructure Analysis

Mayor J. Michael Houston

Mark Mahoney, Director

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Street NeedsEstimate $44 Million

Needed Annually◦Road Maintenance

i.e. Bituminous Overlay, Concrete Patching, Oil & Chip, and Sidewalk Repair

◦Road Modernizationi.e. Curb, Storm Sewer, and Sidewalk Installation

◦Road Expansion i.e. Constructing a New Street or Widening an Existing Street to Support Increased Traffic

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Road Conditions

58%30%

10%

2%

Road MileageAsphalt (360 miles)Oil & Chip (190 miles)Concrete (60 miles)Brick (13 miles)

1%

53%32%

14%

Road Ratings

ExcellentGood FairPoor

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Asphalt Road Ratings

2 2.5 3 3.5 4 4.5 50%2%4%6%8%

10%12%14%16%18%20%

2010 Rating2012 Rating

Better Worse

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Contributing Factors to Deteriorating InfrastructureConstruction costs have more than doubled in

last 10 years In 1997 the City owned 497 miles, now the City

owns 625 miles Federal Funding for maintenance has vanished.

In 2007 a FAU Overlay in the amount of $1.7 million was completed, funding for overlays has been non-existent since.

MFT Funding has been decreasing since 2007 due in part to more fuel efficient cars

Preventative Maintenance has been neglected

Asphalt & Concrete Costs

2002 2003 2004 2006 2007 2009 2010 2012 $- $50

$100 $150 Asphalt Surface Cost per Ton

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2002 2003 2005 2007 2008 2009 2010 2011 $- $50

$100 $150 Concrete Patch Cost per Square Yard

6" Thick8"Thick

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Municipality Size Comparison

Bloom

ington

Champa

ign

Decatur

NormalPe

oria

Sprin

gfield

Urbana

0100200300400500600700

Street Centerline Miles

625 miles

Bloom

ington

Champa

ign

Decatur

NormalPe

oria

Sprin

gfield

Urbana

010203040506070

Area (Square Miles) 66 sq.

mi.

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FY14 Infrastructure Funding

Federal funds/grants (i.e. ITEP & STU) and TIF funds could be utilized to help fund infrastructure improvements. The Department will be applying for these funds. Gambling revenue is a potential source of funding.

1/4% Sales Tax,

$4,400,0002% Hotel/Motel Tax,

$1,100,000

MFT,

$2,900,000

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MFT FundsContractual Services

(i.e. Concrete Patching,

Seal Coat and Crack Fill)

Maintenance Materials (i.e. Salt, Asphalt, Rock,

and Sign Materials) Engineering &

Construction (i.e. Major Road, Bridge, Signal and IDOT Projects)

24%

16%22%

38%

Contractual ServicesMaintenance Ma-terialsEngineering Construction

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FY14 Infrastructure Improvements

Bituminous Over-lay ($6,000,000)

68%

Side-walk

($1,000,000)11%

Con-crete Patch-

ing ($900,000)10%

Seal Coat

($600,000)7%

Crack Fill ($150,000)2%

Storm Sewer ($150,000)

2%

Total Expenditures = $8.8 million

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Fund 95 ImprovementsOverlaysFY 11 – 2.6 miles = $1.25 million ($481 k/mile)FY 12 – 4.0 miles = $2.57 million ($642 k/mile)FY 13 – 15 miles = $6.02 million ($400 k/mile)FY 14 – 15 miles = $6 million (proposed)SidewalkFY 11 – 8,000 s.f. (0.4 miles) = $51 kFY 12 – 102,000 s.f. (4.8 miles) = $738 k FY 13 – 156,000 s.f. (7.4 miles) = $1.03 millionFY 14 – 155,000 s.f. = $1 million (proposed)

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Implemented Maintenance MeasuresOverlay Program – 15 milesConcrete Patching – Increased by

30%Seal Coat – Increased by 30%Crackfill – Doubled programSidewalk Program – Increased by

30%

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What should we be spending?

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How to stop the declineComplete 135 miles of overlay the next 3 years and

perform 24 miles of overlay per year thereafterSubstantially increase preventative pavement

maintenance (i.e. Cape Seals, Microsurfacing, CIR, Chip Seals and Crackfilling)

Nearly triple the amount of sidewalk installationRemain at the recently increased concrete patching

levels and start sealing and undersealing jointsRepair failing brick streetsStart performing preventative storm sewer

maintenance Five times more maintenance required for traffic

signals and striping

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Necessary 3 Year PlanAsphalt Overlay (135 miles) $57.6 millionCape/Microsurfacing (50 miles) $4.5 millionConcrete Patching (15 miles) $3 millionCrackfilling (100 miles) $1 millionOil & Chip (150 miles) $3 millionSidewalk (1.2 million s.f.) $9 millionBrick Streets (2 miles) $3 millionTraffic Signals and Striping $1 million Storm Sewer $4.5 million

TOTAL $86.6 million

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Annual Maintenance PlanProgram (proposed amount) Current Proposed Overlay (24 miles per year) $4.5 million $12

million Sidewalk (400,000 s.f. per year) $1 million $3 million Cape/Micro(30 miles per year) - $2.5 million Concrete Patch (5 miles per year) $1 million $1

million Concrete Seal (20 miles per year) - $200,000 Seal Coat (50 miles per year) $600,000 $1 million Crack Fill (60 miles per year) $150,000 $600,000 Brick (.5 miles per year ) - $200,000 Storm Sewer $150,000 $1.5 million Traffic Signals & Striping $100,000 $500,000

TOTAL $7.5 million $22.5millionIncrease = $15 million

Current Funding Level Projection

2012 2013 2014 2015 2016 2017 2018050

100150200250

Asphalt Miles Needing ResurfacedCurrent Funding Plan

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220 Miles = $110 Million

• Current Funding – Project only able to overlay 10 miles and 30 miles additional roads needing to be overlaid after 2013

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Potential Long Term Savings

The proposed increase will save the City approximately $21 million through 2018

It’s anticipated, at the current spending rate, that 220 miles (over 60%) of our asphalt would have deteriorated and need to be overlaid or reconstructed by 2018

Additional savings will occur beyond 2018 due to utilizing preventative maintenance and extending the life of our roads

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Sewer Infrastructure

Analysis and Needs

Overview◦ The City of Springfield

established the Sewer Fund in 1956 to maintain the Combined Sewers and Separate Sanitary Sewers.

◦ The City owns approximately : 140 miles of Combined Sewers 355 miles of Separate Sanitary

Sewers 200 miles of Separate Storm

Sewers◦ Separate Storm Sewers dedicated

only for storm runoff are not maintained by this Fund.

◦ This Fund was established to pay for improvements recommended in the first study of the sewer system completed in 1949.

◦ The study recommended $8.2 million in improvements = $97 million today

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Financial Summary

Notes◦ Operation and Maintenance costs increase yearly.◦ Repair costs continually increasing due to increases in the number of repairs and

construction cost increase.◦ Increased Expenses reduce money available for improvement projects. ◦ Sewer Surplus maintains funds for required loan reserves, capitol projects, and

long term expenditures. 21

Dollars in Millions FY12 FY13 FY14IncomeYearly Revenue $5.86 $5.85 $5.85ExpensesOperations (SEWR) $3.90 $3.83 $3.85EPA Loans (BOND) $1.51 $0.92 $1.03Lateral Repairs (0TAP) $0.30 $0.35 $0.35Cave in's (0DEP) $0.30 $0.45 $0.45TOTAL $6.01 $5.55 $5.68

Sewer Surplus (0SUR) $2.64 $3.35 $2.53

Sewer Rates

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Meter Charge Consumption

Total

City Sewer Rate $3.10 $6.30 $9.40*Sanitary District Rate $3.57 $14.90 $18.4

7Total $27.8

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• Current City Sewer Rates were established in 1996.• The City does not set the Sanitary District Rates.• Customers pay a base meter charge and a rate based on consumption. • Rate paid for a typical residential customer using 10 units of water.

Average Customer Basis (meter charge + 10 units of water consumption)

City Rate $3.10 + (($0.35 x 3) + ($0.75 x 7)) = $9.40 District Rate $3.57 + ($1.49 x 10) = $18.47 Total $9.40 + 18.47 = $27.87

* SMSD has scheduled rate increases thru 2016

Sewer Rate Comparison

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$0

$5

$10

$15

$20

$25

Local Service Charge

Local Consumption Charge (1000 CF)Total Local Sewer Charges

1) Rates based on 10 units = 1,000 c.f. = 7500 gallons of water usage.2) Rates do not include Sanitary District Fees.

Projects - FY13

• Bancroft Branch Relocation completed summer 2012• City’s cost approximately $285,000

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• Mayden Street Sewer Replacement completed summer 2012• Cost approximately $200,000

• Dirksen Parkway Sewer Lining - Ridge Street to Elm Street • To be completed February 2013• Cost approximately $140,000

Total $625,000

Planned FY14 Project Areas

Northeast and Grandview Sewer District - Flow monitoring Estimated cost $100,000

Cook Street Sewer District - Physical Inspection Pasfield Sewer Abandonment - Project Design

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• Westchester Trunk Sewer Upsizing• Anticipated June 2013 completion• Trenchless pipe bursting construction• Estimated cost $615,000

Increasing Regulatory Concerns

- Collection System operation is regulated by the EPA.

- The EPA is successful in rendering Administrative Orders and Consent Decrees against operators not maintaining their systems or complying with Federal Regulations.

- The City is in the Administrative Order process with the USEPA at this time. We expect the order to be finalized soon.

- The City will be required to complete an analysis of and fund projects to eliminate all Sanitary Sewer Overflows (SSO).

- The USEPA will review and approve a timeline for completion.

- This will have a significant impact on the Sewer Fund.

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Metropolitan St. Louis Sewer District (MSD)

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In August 2011, the Department of Justice filed a settlement, or consent decree, requiring MSD to spend a minimum $4.7 billion over the next 23 years to address the issue of overflows and other sewer system improvements.

What do we need?

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City Project History

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1

2

3

4

5

6

7

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1985 1990 1995 2000 2005 2010 2015

Num

ber o

f Pro

ject

sM

illio

ns o

f Dol

lars Number of Projects

Project Costs (in millions)

Linear (Number of Projects)

Linear (Project Costs (in millions))

Proposed Ramp-up

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• Amount available for projects will reach $0 in only a few years.

• Decreased maintenance spending now results in increased future replacement costs.

10 Year Capital Improvement Plan $55 million in projects already identified

◦ Sewer Division currently funds less than $1 million per year in projects.

◦ Several areas (Cook Street Sewer District, Harvard Park Area, Northeast Sewer District) will require studies to determine needs, this work will modify and add projects to the Long Range CIP.

◦ 10 Year Completion Goal not possible at current funding levels.◦ USEPA Mandates are not accounted for in the current Long

Range Plan.

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FY13 Project Spending - $625,000

Minimum $5.5 million per year needed to complete CIP in 10 year time frame.

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ConclusionThe City of Springfield’s infrastructure is in

decline.Long term increased costs of neglect will mean

spending more by necessity or by regulatory order at some point in the future.

Proposal to stop the decline:3 Year- $86.6 million on streets, sidewalks,

storm sewers, and traffic signals.Annual Maintenance Plan (effective FY2016)-

$22.5 million on streets, sidewalks, storm sewers, and traffic signals

10 Year Sanitary Sewer Capital Improvement Plan-$55 million ($5.5 million annually)

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Addendum

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Population (1)

Prop Tax Rate

Home Rule Sales Tax

Combined Sales Tax Rate (2)

Food & Beverage

TaxVehicle Use Tax

Telecomm Tax

Liquor Tax

Gas Tax

Hotel Tax

Bloomington

76,610

1.3103 1.50% 7.75% 2.00% 0.75% 3.50% 4.00% 0₵ 6.0%

Champaign

81,055

1.2942 1.25% 8.75% 0.50% 0.00% 6.00% 0.00% 4₵ 5.0%

Decatur

76,122

1.2905 1.50% 9.00% 2.00% 0.00% 6.00% 0.00% 0₵ 6.0%

Normal 52,497

1.1897 1.50% 7.75% 2.00% 0.75% 6.00% 4.00% 0₵ 6.0%

Peoria 115,007

1.4096 1.50% 8.25% 2.00% 0.00% 6.00% 0.00% 2₵ 6.0%

Springfield 116,250

0.9385 1.75% 8.00% 0.00% 1.00% 4.00% 0.00% 0₵ 6.0%

Urbana 41,250

1.2942 1.25% 8.75% 0.50% 0.00% 6.00% 1.00% 4₵ 6.0%

(1) IDOR certified 12/10 (2) Some cites have public safety and/or school sales taxes passed by referendum

Revenue Comparison