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Residential Street Repair Strategy Paving a Brighter Future The City of Santa Ana will soon begin a major investment to improve the pavement condition of residential streets. On June 4, 2007, the City Council will award a contract to slurry seal approximately 30 miles of residential streets. This preventative maintenance program will protect our streets that are in good condition, extend pavement design life, and prevent further detioriation. For Fiscal Yeaz 07/08 more than $19 million is proposed for neighborhood improvements. This is the largest expenditure for local street improvements in the history of the City. There is additional good news relative to new revenue available for local streets. New revenues include: • Governor's Infrastructure Bond -Passed in November 2006, will result in $11.2 million to Santa Ana over the next five yeazs. • Proposition 42 (sales tax on gasoline) -Will begin to generate $3.6 million per yeaz beginning in 2008 • Measure MExtension -Passed in November, will increase turnback funds to Santa Ana by an additional $3.4 million annually beginning in 2011. • Measure MExtension -Will also reduce local match requirements for grant funding from 50% to 25%. This will provide additional funds for local streets. • CDBG Funds -Police Facility loan paid off in FY 06/07, will provide potential for new CDBG loan of up to $13 million (lump sum) During the next five yeazs our proposed strategy is to combine these revenues with bonding for a total investment of $100 million for our residential street improvements. The City Council will consider this funding option in August 2007. The priorities for the $100 million initial investment will be focused on residential neighborhood asphalt streets (see attachment). The purpose of this initial expenditure is to stop the decline in the condition of our streets by attacking signs of pavement deterioration as early as possible and avoiding premature reconstruction costs. We are also analyzing alternative construction methods and materials to spread this program comprehensively throughout the city. At the end of the five yeazs, we will still have a $6 million per yeaz program continuing after the bond revenues are spent. This is 3-5 times the size of what we have historically had available for local streets. C:\Docutnents and Settings\CStandiford\Local Settings\Temporary Internet Files\OLK101\Residential Street Repair Strategy Goad News (2) (2).doc 65A-6