City Council is being asked to approve a $50,000 increase in funding in the Downtown Area Maintenance Project in order to provide increased repair and cleaning services along Murphy Street. Additionally, staff is requesting approval to reduce service levels in the Concrete Maintenance program.

The Concrete Maintenance Program is also experiencing a significant increase in demand for replacement of City sidewalks. This increase in demand is due to a combination of factors including: 1) the aging infrastructure of the City 2) an increased awareness of City sidewalk services among citizens and businesses, and 3) demand generated by mandated service level surveys.

This year, although 54,000 square feet of replacement was scheduled, it is anticipated that closer to 65,000 square feet of sidewalk will need to be replaced.

To meet existing service levels, an additional $100,000 would be needed in the Concrete Maintenance Program budget to complete FY 2001/2002.

An alternative to a budget increase would be to reduce existing service levels within the Concrete Program. The current program performance goal is to replace identified sections of sidewalk within the next fiscal year. Delaying replacement by an additional two years would eliminate the need for a budget modification this fiscal year as well as the following two fiscal years.

Staff is recommending a temporary decrease in service level for concrete replacement. For the next two fiscal years, the Concrete Program would spend up to the full amount budgeted each year for sidewalk and curb / gutter replacement, but would defer replacement of additional areas until the following fiscal year, when new funding would be available.

Three years ago Sunnyvale Downtown merchants expressed concern over the level of landscape maintenance within the Downtown Parking District. At the time, Murphy Avenue operating costs were part of the Downtown Parking District’s operating program. In an effort to better address these concerns, $40,000 was removed from the Downtown Parking District operating program and placed into a capital project entitled, "Project 820610 Downtown Area Maintenance." Historical data in this project reflects expenditures of $40,545 in FY 1999-2000 and $39,209 in FY 2000-2001.

There has been a dramatic increase in usage along Murphy Street. More restaurants with sidewalk-eating services, farmers market gatherings, Midweek Market & Music Madness events, and other similar high impacting functions have created the need for additional maintenance services, primarily in the areas of street cleaning, landscaping, weeding, and litter removal. A detailed description of these service changes is contained in the Discussion Section.

Because of these service level increases, annual maintenance costs along Murphy Avenue are expected to increase approximately $50,000 for FY 2001-2002. This increased level of maintenance is also expected to continue through FY 2002/2003, which will be addressed through the capital project budget process.

The City has instituted a full range of services to treat sidewalk displacement. When the displacement is 1" or less, a grinding machine is used to smooth-out the displacement and to eliminate the tripping hazard. When displacements exceed 1" an asphalt ramp patch is installed and the section is scheduled for replacement.

This replacement work is done by an outside contractor, based on an annual contract that is administered by the Trees and Landscape Division. Identified sections are to be replaced by the end of the next fiscal year.

Over the years, as displaced sidewalk areas are subjected to repeated grindings, reduced sidewalk thickness necessitates replacement of the concrete. In addition, as City sidewalks age, tree root intrusion displaces larger sections of them. These scenarios have contributed to the additional demand for sidewalk replacement beyond the level of service established in the Concrete Maintenance Program. A graph that portrays the growth in demand for sidewalk replacement is included in the discussion section that follows.

An unfortunate side effect of this growth has been a corresponding increase in the amount of maintenance required in order to maintain the hardscape and landscape along Murphy Avenue.

The following is a comparison of original versus current service levels on Murphy Avenue.

The Concrete Maintenance Program is also experiencing a significant increase in demand for replacement of City sidewalks. This increase in demand is due to a combination of factors including: 1) the aging infrastructure of the City 2) an increased awareness of City sidewalk services among citizens and businesses, and 3) demand generated by mandated service level surveys.

The following graph depicts the growth in demand for sidewalk replacement services from FY 1988/1989 through FY 2001/2002 (estimated):

Last fiscal year’s budget targeted 50,000 square feet of sidewalk for replacement. The City actually replaced close to 70,000 square feet of sidewalk. Once reported, the Council-approved performance measure requires replacement within the following fiscal year. A separate budget modification of $150,000 was approved last fiscal year to fund the increased demand for sidewalk replacement. Budget modifications were also required in each of the previous two fiscal years.

This year, although 54,000 square feet of replacement was scheduled, it is anticipated that closer to 65,000 square feet of sidewalk will need to be replaced. To meet existing service levels, an additional $100,000 would be needed in the Concrete Maintenance Program budget to complete FY 2001/2002.

An alternative to a budget increase would be to temporarily reduce existing service levels within the Concrete Program. The current performance goal of this program is to replace identified sections of sidewalk within the next fiscal year. Delaying replacement times by two years would eliminate the need for a budget modification this fiscal year, and the following two fiscal years.

The amount of sidewalk/curb/gutter that can be replaced each year is highly dependent on current construction costs. These costs have fluctuated significantly in recent years.

The reduced service level should not impact the City’s risk profile, because tripping hazards in these areas are ramped with asphalt within three working days after notification. If sidewalk replacement schedules were delayed, staff would conduct an annual survey of scheduled replacement areas to make sure that asphalt ramps were holding and that no hazardous conditions existed. If a hazardous condition were found it would be addressed promptly.

Between the two alternatives discussed above, staff believes a temporary decrease in service level is preferable to a $100,000 budget modification. The current economic downturn has placed more demands on City General Fund reserves. However, the economic / budgetary situation is expected to improve during the next two years, which should allow service levels to return to present levels during the next operating budget cycle. Temporarily changing service levels will allow sidewalks and curb / gutters to be replaced up to the full budgeted amount each year, but will defer additional work to the following fiscal year.

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, publication of the Council agenda in the San Jose Mercury News, and the availability of the report in the Library and the City Clerk’s Office.

That Council:

1. Approve Budget Supplement No. 24 in the amount of $50,000 to continue providing increased maintenance services on Murphy Avenue and decrease the service level for sidewalk replacement in the Concrete Maintenance program.
2. Do not approve Budget Supplement No. 24 or decrease of service level for sidewalk replacement.
3. Approve Budget Supplement No. 24 and not approve decrease of service level for sidewalk replacement.
4. Do not approve Budget Supplement No. 24 and approve decrease of service level for sidewalk replacement.

Staff recommends approval of alternative 1.

Prepared by: 
Michael A. Chan
Senior Administrator/Property Manager

Douglas Mello
Superintendent, Trees and Landscape

Reviewed by:
Marvin A. Rose
Director of Public Works

Mary J. Bradley, 
Director of Finance

Approved by:
Robert S. LaSala
City Manager