Report Prepared by: Daryl Jordan, P.E., City Engineer, Engineering Department
Title
SUBJECT: Report on Status of Roads Projects
REPORT IN BRIEF
City engineering staff will provide an informational report regarding the City’s roadway network, the historical pavement-condition baseline, current street maintenance and rehabilitation activities, programmed capital improvement projects, existing transportation funding sources, and the next steps needed to establish current pavement conditions and long-term funding requirements.
The City’s roadway pavement represents an estimated $310 million public asset in 2026 dollars. The most recent comprehensive pavement assessment was completed in 2018. An updated countywide Pavement Condition Index assessment is being coordinated by Merced County and will provide the information needed to establish a current condition target, quantify the deferred-maintenance backlog, and evaluate future funding alternatives.
RECOMMENDATION
Information Only.
Receive and file the report regarding the condition of the City’s roadway network, current roadway projects, and funding sources. No formal action is requested at this time.
Body
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided in the 2025-26 City Council Goals and Priorities, this report supports the priority area of Infrastructure and Transportation.
DISCUSSION
Background and Roadway Network
The City of Merced owns and maintains an extensive network of arterial, collector, and local streets that supports residents, emergency responders, transit vehicles, commercial traffic, bicyclists, and pedestrians. The roadway system is also essential to economic development, neighborhood quality of life, and access to schools, businesses, employment centers, and public facilities.
As reported in 2017, the City maintained more than 330 lane miles of public streets. The 2018 pavement assessment identified approximately 60.5 million square feet of pavement and estimated the network’s replacement value at approximately $211.4 million. Applying a planning-level construction-cost escalation factor results in an estimated 2026 replacement value of approximately $310 million.
The $310 million value is an inflation-adjusted planning estimate based on the 2018 inventory. It does not include streets added through subsequent development, annexation, or roadway construction. The City’s current lane mileage and full replacement value are therefore likely higher.
Pavement deteriorates because of traffic loading, weather, oxidation, utility excavations, drainage conditions, and the natural aging of pavement materials. Timely preventive maintenance can extend pavement service life at a substantially lower cost than major rehabilitation or complete reconstruction.
2018 Pavement Condition Assessment
The most recent comprehensive pavement-condition information currently available is from the City’s 2018 assessment. Pavement condition was expressed using the Pavement Condition Index, or PCI, on a scale from zero to 100. A higher PCI represents pavement in better condition; a lower PCI indicates increasing deterioration and a greater need for rehabilitation or reconstruction.
|
Roadway classification |
Share of pavement area |
2018 PCI |
|
Arterial streets |
27% |
56 |
|
Collector streets |
10% |
51 |
|
Local streets |
63% |
56 |
|
Total roadway network |
100% |
Approximately 56 |
Collector streets had the lowest reported PCI at 51. Arterial and local streets each had a reported PCI of 56. Based on the relative pavement area of each roadway classification, the calculated area-weighted PCI for the overall network was approximately 56.
A PCI in this range generally reflects a roadway system in fair condition, with some streets that remain candidates for preventive maintenance and others that require more substantial rehabilitation. An average PCI does not mean that all streets are in similar condition; individual roadway segments may range from good condition to poor or failed condition.
Limitations of the Historical Condition Data
The 2018 PCI of approximately 56 and the associated funding projections are historical baseline information. They should not be interpreted as the current condition or current funding requirement of the roadway network. Approximately eight years have passed since the assessment. During that period, streets have deteriorated, been rehabilitated or reconstructed, been added through development, or been affected by utility work.
Merced County is coordinating an updated countywide pavement-condition assessment that includes the municipal jurisdictions. At the time this report was prepared, the City had not received a confirmed completion schedule or preliminary results. Staff will continue coordinating with the County and will return to the City Council when updated information becomes available.
Pavement Management Strategy
The City uses different treatments based on pavement condition and the nature of the observed distress. Routine maintenance may include pothole repair, localized patching, and crack sealing. Streets that remain structurally serviceable may receive preventive treatments or overlays, while streets with substantial structural deterioration may require full-depth rehabilitation or reconstruction.
Project selection considers pavement condition, rate of deterioration, street classification, traffic volume, safety, emergency and transit routes, access to schools and public facilities, utility coordination, grant eligibility, geographic distribution, and available project-delivery capacity. The objective is to preserve streets while they remain serviceable and avoid the substantially higher cost of reconstruction where practicable.
Existing Roadway Funding Sources
The City uses a combination of state federal, regional, and local revenues for street maintenance, rehabilitation, and transportation capital projects. The principal sources addressed in this report are Regional Surface Transportation Program funds, Senate Bill 1, Local Transportation Funds, Measure C, and Measure V.
Senate Bill 1 Funding. The City receives annual Road Maintenance and Rehabilitation Account revenue. These funds support both direct pavement projects and eligible Streets Division activities, including labor, vehicles, equipment, and materials used to maintain the roadway network.
|
Fiscal year |
SB 1 Allocation |
Streets operations and resources |
Amount identified for projects or other eligible uses |
|
FY 2021-22 |
$1,808,884 |
$412,397 |
$1,396,487 |
|
FY 2022-23 |
$1,965,089 |
$912,038 |
$1,153,051 |
|
FY 2023-24 |
$2,277,737 |
$1,123,239 |
$1,154,498 |
|
FY 2024-25 |
$2,492,260 |
$1,524,354 |
$967,906 |
|
FY 2025-26 |
$2,705,424 |
$1,512,875 |
$1,192,549 |
|
FY 2026-27 Budgeted |
$2,750,830 |
$1,113,583 |
$1,637,247 |
The proportion used for Streets Division operations and direct contracted projects varies by year based on adopted budgets, operating needs, available balances, and the timing of capital projects. For example, in FY 2024-25, approximately 61 percent supported eligible Streets Division staffing, vehicles, equipment, and materials, while approximately 39 percent was identified for other eligible uses, including contracted street projects.
Local Transportation Funds. The City receives Local Transportation Funds administered through the Merced County Association of Governments. After applicable transit needs and statutory requirements are addressed, eligible funds may be claimed for local streets and roads. The City has averaged approximately $480,000 in claims during the past four years.
Measure V. Measure V provides separate local transportation and alternative-modes allocations. Alternative-modes funding may be used for eligible bicycle, pedestrian, sidewalk, bus-stop, and related improvements. Local transportation funding may support eligible roadway rehabilitation, pothole repair, sidewalks, and other local transportation purposes.
|
Fiscal year |
Measure V Alternative Modes |
Measure V Local Transportation |
|
FY 2022-23 |
$550,988 |
$2,203,954 |
|
FY 2023-24 |
$551,435 |
$2,205,739 |
|
FY 2024-25 |
$550,238 |
$2,200,953 |
Detailed project appropriations, carryover balances, encumbrances, and restrictions are established through the City’s adopted budget and Capital Improvement Program. Not all transportation revenue is available for unrestricted neighborhood street resurfacing.
Current and Programmed Roadway Projects
The City is advancing a combination of roadway rehabilitation and preservation projects. Projects currently under construction or recently completed include:
- Yosemite Avenue from G Street to Parsons Avenue.
- McKee Road rehabilitation.
- Main Street resurfacing.
- Projects under design or pre-design include:
- R Street from Olive Avenue to Northwood Drive.
- R Street seal project from Childs Avenue to 13th Street.
- R Street reconstruction from 16th Street to 18th Street.
- 18th Street from R Street to V Street.
- Collins Drive Rehabilitation.
- Sixteen additional roadway segments in pre-design.
- The accompanying presentation will identify available project limits, status, anticipated schedules, costs, and funding sources. Project schedules remain subject to design completion, environmental and utility coordination, right-of-way needs, bidding conditions, and funding requirements.
-
- Historical Roadway Investment and Funding
-
- The City’s total annual roadway allocations during the four most recent fiscal years have been reported as follows:
-
|
Fiscal Year |
Reported Annual Roadway Allocation |
|
FY 2022-23 |
$6.6 million |
|
FY 2023-24 |
$7 million |
|
FY 2024-25 |
$8.5 million |
|
FY 2025-26 |
$8.9 million |
The 2018 pavement analysis estimated that approximately $21.6 million should be committed at that time to address deferred work. It also estimated that approximately $169 million to $219 million would need to be invested over a 20-year period to maintain an average PCI near 55. These are historical 2018 planning estimates. They have not been adjusted to reflect current pavement conditions, improvements completed since 2018, expansion of the roadway network, or current construction costs.
The historical 20-year range is equivalent to an average of approximately $8.5 million to $11.0 million per year in 2018 dollars. This comparison provides context but should not be treated as the City’s current annual funding requirement. The updated pavement study should rerun the investment scenarios using current conditions, quantities, treatment strategies, and unit costs.
Next Steps
The updated pavement-condition assessment will provide the information needed to establish the current PCI, quantify the deferred-maintenance backlog, and evaluate long-term investment requirements. Upon receiving the updated assessment, staff intends to return to the City Council with:
- Current pavement conditions by roadway classification.
- Updated roadway inventory, lane mileage, and replacement value.
- An updated deferred-maintenance backlog.
- Funding scenarios to maintain, stabilize, or improve pavement conditions.
- Potential Citywide PCI targets for Council consideration.
- A prioritized multi-year pavement preservation and rehabilitation program.
- Potential recurring and one-time funding alternatives.
Timely pavement preservation reduces long-term costs by extending roadway life before more expensive structural rehabilitation or reconstruction becomes necessary.
IMPACT ON CITY RESOURCES
No impact at this time.
ATTACHMENTS
1. Roads Assessment Report 2026 Presentation