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#4 Discuss & direction to staff on 2010 sidewalk program DEPARTMENT OF PUBLIC WORKS MEMORANDUM December 2, 2009 TO: City Council FROM: Mike Payne, Engineering Manager SUBJECT: Direction to Staff on 2010 Sidewalk Program Summary The Council held a sidewalk study session September 6, 2007 to consider changes to Council Policy #70 – Sidewalks, which lead to a follow-up public hearing and Council Action at the January 14, 2008 meeting where the Council adopted a Pedestrian Transportation Corridor Plan (PTCP) and directed revisions to the Policy. The City Sidewalk Policy was updated March 25, 2008 based on Council direction. Engineering requests the Council provide direction regarding three sidewalk related items: 1) Direction on how to proceed for new planned unfunded sidewalk installation in 2010 2) Direction on whether the City should implement a proactive sidewalk inspection program to identify and repair defect sidewalks or continue to facilitate a complaint-only based program 3) Direction on implementing a sidewalk permit fee for property owners who privately coordinate sidewalk improvements outside the City Sidewalk Program Following Council direction, Engineering will amend Council Policy #70 – Sidewalks and return to Council at a future meeting for formal approval. Recommendations The Engineering Division makes the following recommendations: ? Establish a proactive sidewalk inspection program in coordination with the annual street resurfacing program. ? Establish a sidewalk permit fee of $185 to recover the City’s overhead costs of coordinating private sidewalk construction or repairs rather than including the overhead in the assessment rate for administering the sidewalk program. \\petey\cojhome\agenda review\approved agenda items\2009\12-14-2009\sidewalk program direction - memo.doc The Engineering Division does not have a recommendation concerning when to implement the planned unfunded sidewalk program. This is a policy issue best left to the discretion of the City Council. City Manager Recommendation The City Manager recommends instituting the sidewalk permit fee consistent with the 2010 budget discussion, but does not have a recommendation on the remaining points. Discussion Planned Unfunded Sidewalk The current Council Policy for planned unfunded sidewalk indicates the City will start constructing approximately nine (9) miles of new sidewalk beginning in 2009 and continue with this approach until complete. There are approximately 63 miles of planned unfunded sidewalk “gaps” in the City sidewalk network. It is anticipated the sidewalk gaps would be completed within seven (7) years of commencing sidewalk construction. Planned unfunded sidewalk requires the abutting property owners to pay for the sidewalk installation through an assessment process. The property owners are given the option to construct the sidewalk themselves, hire a private contractor, or have the City sidewalk contractor complete the work. If the City coordinates the installation, property owners have four (4) options to pay for the work: 1) Pay in one lump sum. 2) Pay the sidewalk assessment on a five (5) year plan at the City’s current interest rate. 3) Make a request to the Council for a financial hardship and spread the payments over 10 years rather than five (5) years at the City’s current interest rate. 4) An individual over the age of 64 at an owner occupied residence with a family income less than 50% of the County median income may apply for payment under state statute 74.77 which places a lien on the property in lieu of requiring payment. Property owners living at corner lots pay for the full cost of sidewalk installation on the first frontage ordered to be constructed but are granted an exemption for the first 70 feet on the second frontage constructed. The corner lot exemption was added to Sidewalk Policy in 1999. The 2010 Major Capital Projects budget includes funding to implement nine (9) miles of planned unfunded sidewalk in 2010 if the Council wishes to implement the current Sidewalk Policy. In 2009, the Council directed staff not to propose nine (9) miles of planned unfunded sidewalk, but rather limited the consideration to citizen requested locations. \\petey\cojhome\agenda review\approved agenda items\2009\12-14-2009\sidewalk program direction - memo.doc Sidewalk Inspection Program The Engineering Division currently administers a complaint based sidewalk defect program. Staff logs all sidewalk complaints and visits every location to determine if there is a sidewalk defect. Complaints generally come in one of two forms – 1) a concern at a particular address or 2) a concern with a particular walking route, consisting of specific blocks. Once the inspection is performed, temporary asphalt wedges are installed, if necessary, and a letter is sent to the property owner outlining options for correcting the defect. Replacement sidewalk is handled similar to new sidewalk where property owners are given the opportunity to complete the work themselves, hire a private contractor, or have the City sidewalk contractor complete the work. The City is liable for sidewalk defects when the City becomes aware of a potential defect. The City has been sued for injuries based on sidewalk defects and has paid approximately $16,000 in claims over the last 3 years. In evaluating Janesville and 13 comparable Cities, approximately 30% of our comparable cities coordinate complaint based programs while 70% perform some type of a proactive approach in addition to addressing specific complaints. In 2009, there were 228 property owners with defect sidewalks based on complaints received. Three options are available for managing sidewalk defects: 1) Leave the current complaint-based process in place. 2) Establish a proactive sidewalk inspection program where Engineering staff inspects sidewalk at the same time curb & gutter is inspected prior to street rehabilitation. The City typically rehabilitates approximately 11 miles of street centerline which could be up to 22 miles of sidewalks to evaluate annually. During the 2010 budget review process, the Council agreed with a staff recommendation not to assess property owners for curb and gutter replacement in the future when streets are rehabilitated. This decision eliminates the possibility of burdening property owners with paying for curb & gutter and sidewalk repairs at the same time. 3) Establish a proactive sidewalk inspection program where the City is divided into zones with the intent of proactively inspecting one zone per year. There is approximately 345 miles of street centerline in Janesville but not all streets have sidewalks. So for example, if 10 zones were created, there would be approximately 34.5 miles of street centerline which could require up to 69 miles of sidewalk be inspected in a given year. Option Pros Cons No Change ?? Effectively responds to Does not proactively identify and citizen complaints to resolve repair defective sidewalk which may sidewalk defects. in turn lead to injury. ?? Cost effective to allow the May make it more difficult to defend users of the sidewalks to City in trip and fall lawsuits. notify the City of potential sidewalk defects. \\petey\cojhome\agenda review\approved agenda items\2009\12-14-2009\sidewalk program direction - memo.doc Option Pros Cons Inspection in ?? More efficient to inspect Additional staff costs to inspect conjunction with sidewalks at the same time sidewalk, mail notices to property street rehabilitation as the curb is inspected owners, and follow-up program. ?? May reduce the incidences Some streets are not rehabilitated for of injury due to defective long periods of time (20 years) and sidewalk thus sidewalks will not be inspected ? regularly May be easier to defend the City if trip and fall lawsuits Inspection based ?? Guarantees every sidewalk Additional staff costs to inspect upon regular cycle will be inspected for defects sidewalk, mail notices to property on a regular basis owners, and follow-up. More ? expensive than Option 2 because May reduce the incidences additional inspector would be sent of injury due to defective into field to only inspect sidewalks. sidewalk ? ? Significant additional workload for the Will make it easier to defend Engineering Division and may require the City if trip and fall additional staff. lawsuits Sidewalk Permit Fee The construction or repair of public sidewalks by private property owners is permitted by state statutes, city ordinance and city policies. A consistent message City staff receives during coordination of sidewalk programs is about the fairness and equity issues surrounding the private construction or repair of sidewalks. The primary issue with private sidewalk construction or repair versus the City administered construction is that all city related overhead costs are recovered through the assessment process. This means property owners constructing or repairing sidewalk privately avoid their share of total program overhead costs and pass them along to property owners choosing to have the City build or repair their sidewalks through City managed Public Works contracts. There are three (3) options for the Council to consider regarding this issue: 1) No change to the current process. 2) Fund all overhead costs through program borrowing with the corresponding debt service paid for by a General Fund. 3) Fund the overhead costs related to private construction through the institution of construction / repair permit fees. The pros and cons of each option are summarized in the following table. Option Pros Cons No Change ?? No additional steps needed Doesn’t address equity issues ? Fewer oversight opportunities Program Borrowing ?? Spreads costs city-wide Borrowed funding yields additional ? interest expense Induces contribution of those without sidewalks \\petey\cojhome\agenda review\approved agenda items\2009\12-14-2009\sidewalk program direction - memo.doc Option Pros Cons Program Borrowing ? Less administrative (cont.) overhead ? Eliminates discussion of additional costs over const. Permit Fee ?? Better tracking of private Additional administrative process ? construction Additional bill to those citizens ? Pays for services used electing private construction Engineering proposed a sidewalk permit fee as part of the 2010 budget enhancement/reduction process. At that time, different fee amounts were proposed for new construction versus repair, but that is no longer the recommendation. Staff analyzed several different sets of data to determine a probable fee that would recover the associated staffing costs of the program. The most reasonable appears to utilize an estimated 3.75 hours spent for each property privately coordinating construction or repair of sidewalks. This results in a proposed fee of $185 based on applying an averaged fully burdened hourly rate. This is an equity issue to recover costs and is not proposed as a revenue generating fee. Attachments ? Council Policy #70 – Sidewalks ? 2010 Engineering Budget Reduction #6 (sidewalk permit fee) cc: Eric Levitt Jacob J. Winzenz \\petey\cojhome\agenda review\approved agenda items\2009\12-14-2009\sidewalk program direction - memo.doc