City of Hesperia

Ranchero Road Corridor Phase III Ranchero Road Widening Project Hesperia, California

A Roadmap for Economic Progress and Responsible Growth

Transportation Investment Generating Economic Recovery (TIGER) 2017 Grant Application City of Hesperia RANCHERO ROAD WIDENING PROJECT

FY 2017 TIGER Grant Application

Organization Name/Lead Applicant: City of Hesperia DUNS Number: 1969746380000

Authorized Representative: Nils Bentsen, City Manager

Total Project Cost: $37,000,000 TIGER Request: $9,700,000 Total Non-federal Funding (match): $27,300,000

Project Type: Urban Primary Project Type: Road Secondary Project Type: New Capacity

Supportive Information Available on the City’s TIGER GRANT website http://www.cityofhesperia.us/TigerGrant FY 2017 TIGER Grant Application TABLE OF CONTENTS I. Project Description ��1 II. Project Location ��15 III. Grant Funds, Sources and Uses of Project Funds ��19 IV. Merit Criteria ��20 Primary Selection Criteria ��20 Safety ��20 State of Good Repair ��20 Economic Competitiveness ��21 Environmental Sustainability ��22 Quality of Life ��22 Secondary Selection Criteria ��22 Innovation ��22 Partnership ��23 V. Project Readiness ��24 Technical Feasibility ��24 Project Schedule ��24 Required Approvals ��25 Assessment of Project Risks and Mitigation Strategies ��25 VI. Benefit Cost Analysis ��26 VII. Cost Share ��28 VIII. Federal Wage Rate Certification ��30 Exhibits: 1. Critical Route Map 2. City Wide TIMS Collision Data 3. Cost of Owning a Vehicle 4. Rendering of California Aqueduct Bridge Crossing and At-Grade Rail Crossing 5. Vicinity Map 6. Project Location Appendices A. Benefit Cost Analysis Worksheets B. Project Cost Estimates and Budget C. Project Schedule D. Ranchero Road specific TIMS Collision Data E. Ranchero Road specific CHP Collision Data F. Letters of Support Other Required Documents 1. TIGER 2017 Project Information 2. Federal Wage Rate Certification 3. Resolution No. 2017-048

City of Hesperia Ranchero Road Widening RANCHERO ROAD WIDENING PROJECT

I. PROJECT DESCRIPTION

Overview With funding from the TIGER program, the City of Hesperia will complete the final phase of the 3-phase Ranchero Road Corridor Project in Hesperia, California to increase capacity for the more than 14,000 motorists that travel this major arterial corridor daily. Building upon this corridor’s first two phases, which included an Interchange at Ranchero Road and Interstate 15 (I-15) and a railroad underpass at the Burlington Northern Santa Fe (BNSF) Railway railroad tracks near Seventh Avenue, the City of Hesperia will leverage $27.3 million from public private partnerships to widen a five mile stretch of this east-west, regionally significant corridor to: 1) Broaden measures to improve safety conditions for all users. 2) Promote commerce by facilitating freight movement along Ranchero Road between I-15 and Hesperia’s industrial area and rail spur. 3) Connect Hesperia’s and adjacent jurisdictions’ residents to destinations that bridge the divide and provide access to spur economic opportunity. 4) Create a healthy and livable community by reducing congestion, thereby reducing greenhouse gas emissions. 5) Improve safety response times for emergency vehicles on the recognized emergency route as well as improve public transit timeliness. To meet these goals, Hesperia proposes to construct new capacity along five miles of Ranchero Road from two to four lanes. Features include reconstruction of a new bridge over the California Aqueduct and widening of an at-grade railroad crossing for Union Pacific Railroad (UPRR). Once completed, this project will serve as a catalyst for new pedestrian-oriented development, support mixed-use projects, and reinforce existing land use and zoning plans. The Ranchero Road Widening Project will improve the quality of life for Hesperia residents and the region by fostering a safe environment, reducing travel time for users, and improving accessibility to and around key activity sectors in Hesperia and beyond. The project is recognized as a top regional priority and part of a multi-agency project, with support from community organizations, elected officials, and related stakeholders. The overall benefits of this project exceed the costs by a factor of 3.0, before discounting. The proposed improvements are part of the City of Hesperia’s 3-phase, $124 million Ranchero Road Corridor Project that has already constructed $87 million in corridor improvements to address an absolute transportation deficiency for east-west mobility and access to and from I-15 within the High Desert region of San Bernardino County, California. Phase III, the Ranchero Road Widening Project, will improve safety, enhance economic opportunity, improve reliability, preserve system assets, accelerate project delivery, and help create healthier, more livable neighborhoods. Phase I of the Corridor, the BNSF Railway Underpass (Figure 1-2 below), opened in 2013, and Phase II, the Ranchero Road Interchange at I-15 opened in 2015 (Figure 3-4 below).

CITY OF HESPERIA 1

RANCHERO ROAD WIDENING PROJECT

Figure 1. Phase I Underpass Rendering Figure 2. Phase I Underpass Completed

Figure 3. Phase II Interchange Rendering Figure 4. Phase II Interchange Completed

Phase III, the Ranchero Road Widening Project, will cost $37 million. The City of Hesperia (“City”) is requesting $9.7 million in FY 2017 TIGER Discretionary Grant (TIGER) funding toward this $37 million project, of which $26 million is City cost and $11 million is County of San Bernardino cost. The requested TIGER funding reflects a federal share of 37.3 percent of the City cost and 26.2 percent of the total cost. The match will consist of local and private funding in the form of advanced fees (Table 1).

Description TIGER Funding Non-Federal Match Total Project Cost Amount $9,700,000 $27,300,000 $37,000,000 % Share 26.2% 73.8% Table 1. Percentage share of project parties

CITY OF HESPERIA 2

RANCHERO ROAD WIDENING PROJECT

Background The City of Hesperia has experienced tremendous population growth since its incorporation in 1988, with most of it occurring on the southwest border where the Ranchero Road Corridor Project is located. From a population of 43,400 at incorporation, to its current 93,778, growth is expected to continue toward a projected population of 102,040 by 2020. The San Bernardino County Transportation Authority (SBCTA) predicts that over the next 20 years Hesperia will experience one of the largest percentages of population and job growth of any city in San Bernardino County.

This rapid growth has created an increase in traffic congestion. Combined with a lack of major east-west corridors and interchanges in the High Desert, the once efficient transportation infrastructure that was fully capable of handling the capacity of a smaller population is now overwhelmed with daily gridlock.

Overcrowded capacity on each of the three east-west corridors in the region (Main Street, Bear Valley, and Highway 18) has reduced mobility, increased congestion and ultimately diminished the quality of life for all residents of the High Desert. An improved east-west corridor is desperately needed to provide enhanced accessibility and traffic circulation in the southern Victor Valley within the City of Hesperia and the County of San Bernardino. In addition, congestion significantly undermines the environmental sustainability of communities. Given this, the City is challenged to provide for a growing population while maintaining the quality of life, economic vitality, and diverse environment that has made Hesperia a desirable place to live.

The Ranchero Road Corridor Project has been the City’s highest priority project since incorporation in 1988 and is a crucial transportation infrastructure project that will benefit all the communities in the region by easing congestion, providing more routing choices, and providing another access point to I-15. Further, with the construction of the Highway 138 Realignment Project by the California Department of Transportation (Caltrans), the Ranchero Road Corridor will serve as an alternate route to I-15 during events causing lane closures and/or complete shutdown of the Cajon Pass between Oak Hill Road and Highway 138. In addition, Ranchero Road has a designation of an Other Critical Route with the San Bernardino County Office of Emergency Services (Exhibit 1). Subsequent to the completion of the proposed project, Ranchero Road’s new designation will be that of Secondary Critical Route. This is vital to the entire region in the event of a catastrophic emergency. Providing east-west access to I-15 has proven to be a challenge with the unique barriers of railways and the California Aqueduct traversing the City. However, perseverance has led to the long awaited completion of the first two phases of the Ranchero Road Corridor. Phase I, an undercrossing at the BNSF Railway railroad tracks to connect Ranchero Road where it formerly terminated on either side, now providing a through street. The $27 million project was completed in June 2013 and provides direct access for motorists to reach the I-15 freeway. Phase II, a $60 million project, constructed a freeway Interchange at Ranchero Road and I-15 to include a 7-lane bridge over the freeway, on- ramps, off-ramps and other ancillary improvements. The Ranchero Road Interchange Project was completed in March 2015, but not without challenges. In May 2014, the Ranchero Road Freeway Overpass Bridge, nearing completion, was completely

CITY OF HESPERIA 3

RANCHERO ROAD WIDENING PROJECT destroyed by a fire-related construction accident causing a shutdown of the I-15 in both directions and the loss of all falsework for the bridge deck (Figures 5-6).

Figure 5. Fire at Ranchero Interchange at I-15 Figure 6. Fire at Ranchero Interchange at I-15 The City was resilient in their response to the set back and completed the new interchange just six months later. Once completed, the interchange provided additional access through Hesperia and helped achieve acceptable levels of traffic operation along I-15. The partial clover interchange consists of a 7-lane overpass, on/off ramps for north and south traffic flows, realignment of both Caliente Road and Mariposa Road, reconstruction of most western portion of Ranchero Road, and traffic signalized intersections at Ranchero/Caliente and Ranchero/Mariposa. Since the completion of Phase I and II of the Ranchero Road Corridor, extremely heavy traffic congestion has been evident at the intersections of Maple Avenue and Cottonwood Avenue traveling in both directions at various times throughout the day, especially during morning and evening rush hour. The impacts at these intersections are substantially due to east/west traffic patterns with minimal impact from north/south traffic patterns. Vehicles are backed-up for over a mile due to a single path of travel in each direction. Vehicles must stop at two 4-way stop intersections, which allows for only one east and one west traveling vehicle to pass through the intersections at a time. Consequently, drivers are disobeying the law and driving down the shoulders of the roadway to advance their position in line, or make right-hand turn movements. These traffic conditions have raised concerns with staff and City Council, thus rendering mitigation for these two intersections a high priority. Addressing this issue is vital for traffic circulation on Ranchero Road. In February 2017, the Hesperia City Council approved the widening of a small portion of Ranchero Road along with re-striping the existing roadway to provide some temporary traffic congestion relief at these intersections. However, this is not a long-term or optimal solution for effective traffic movement with the amount of daily motorists.

CITY OF HESPERIA 4

RANCHERO ROAD WIDENING PROJECT

Transportation Challenges The City of Hesperia is bisected by various infrastructure assets such as the Southern California Railroad, the UPRR and BNSF Railway. Approximately 110 trains travel through the City of Hesperia per day as they connect between the Los Angeles and San Diego Metro areas to Las Vegas and other states in the nation. The frequency of railroad traffic also creates additional hazard due to the potential for accidental rail incidents. Over the last 20 years, there have been three significant derailments in the Cajon Pass which affected the City and its transportation corridors. In addition, the east branch of the Department of Water Resources (DWR) California Aqueduct - which delivers water from northern California and flows into Silverwood Lake continuing through the San Bernardino Mountains to other reservoirs - travels through the City of Hesperia, providing a major water source for agencies serving nearby San Bernardino Mountains and Mojave Desert areas.

Hesperia is bisected by U.S. Route 395 (US 395) and I-15, which connects southern California to Las Vegas. State Highways 18 and 138 (SR 138) complete Hesperia’s transportation grid. New residential and commercial developments within the High Desert region have exacerbated the stress on current transportation infrastructure. Many Hesperia and neighboring jurisdiction residents continue to travel to jobs out of the area, making commuter traffic access to I-15, US 395 and SR 138 an increasingly critical transportation problem.

East-west transportation corridors are severely lacking in the High Desert. The Main Street Interchange project, which was once the only freeway access point and a major east-west corridor in Hesperia, was completed in 2006 allowing for a smoother transition to and from I-15. Now, with the construction of Phase I-Ranchero Road Underpass completed in June 2013, and Phase II- Ranchero Road Interchange completed in March 2015, an additional east-west corridor access point is helping to ease congestion for commuters region-wide.

Motorist circulation is difficult because of the number of vehicles traveling the corridor, narrow roadway, and restrictive roadway geometry. The area surrounding Ranchero Road is congested due to the high number of vehicles entering and leaving the corridor, especially near the high school. In addition, the street network in the area is characterized by a lack of north-south through streets and residential streets which are not appropriate for heavy travel. The before and after Ranchero Road conditions near Oak Hills High School are provided in Figures 7-8 below.

CITY OF HESPERIA 5

RANCHERO ROAD WIDENING PROJECT

Figure 7. Oak Hills High School existing road

Figure 8. Oak Hills High School proposed road improvements According to the 2014 Caltrans Annual Average Daily Traffic1 volumes, 152,000 vehicles travel through the City each day while commuting from the High Desert to the Los Angeles metro areas with traffic increasing dramatically each weekend while people travel through Hesperia to and from Las Vegas. Since completion of the undercrossing and interchange projects, traffic has also dramatically increased on Ranchero Road. There is approximately an average of 14,275 vehicles traveling Ranchero Road daily. Daily traffic counts for Ranchero Road and I-15 are outlined in Table 2 below.

1 California Department of Transportation Annual Average Daily Traffic Report (2014)

CITY OF HESPERIA 6

RANCHERO ROAD WIDENING PROJECT

Daily Traffic Counts I-15 Oak Hill Road 256,000 I-15 Junction Route 395N 225,000 I-15 Joshua Street 205,000 I-15 Main Street 202,000 I-15 Bear Valley Road 185,000 Ranchero Road Mariposa 12,475 Ranchero Road Maple Avenue 15,297 Ranchero Road Escondido Avenue 14,287 Table 2. Daily Traffic Counts - Source: Caltrans, 2015 and Newport Traffic Studies, March 2016

An analysis of Citywide crash data occurring between 2006-2016 (Exhibit 2) shows that over a 10-year period there were over 3,400 traffic accidents, of which 273 involved bicyclists and pedestrians and 131 resulted in fatalities. More specifically, along the Ranchero Road Corridor over the same 10-year period there were 151 traffic accidents, of which, two involved bicyclist and pedestrians and six resulted in fatalities (Appendix D). These findings emphasizes the need to design and construct safer facilities for all travelers. Adding to the above challenges, Hesperia’s development pattern has traditionally limited access to jobs, healthcare, and education for the region’s most vulnerable populations. According to the 2015 U.S. Census American Community Survey, the neighborhoods in Hesperia constitute higher than average rates of poverty, minorities, and educational attainment2. Almost 25 percent of the area’s residents live at or below the poverty line, making the need for economic opportunities in Hesperia that much more important. Further, these neighborhoods are majority minority communities which tend to experience a disproportionate share of these financial hardships. Motorist congestion is a daily problem for the City of Hesperia, affecting overall performance of the facility and reducing operational efficiency. According to Walk Score3, Ranchero Road is car- dependent so almost all errands require a vehicle. Commute times for this five mile stretch of Ranchero Road is upward of 20 minutes during rush hour. The infrastructure improvements planned for this project seek to address the following challenges:

 Increase new capacity to reduce travel time and emergency response time;  Increase safety for all traffic movements by installing medians and turn pockets;  Provide a physical barrier between vehicular traffic from pedestrian and bicycle traffic by installing curbs;  Improve safety and efficiency by installing traffic signals at three intersections;  Provide a safe and friendly facility to pedestrians and cyclists near the High School;

2 U.S. Census American Community Survey (2014) 3 www.walkscore.com

CITY OF HESPERIA 7

RANCHERO ROAD WIDENING PROJECT

 Help reduce localized flooding and associated traffic-related injuries and deaths by improving the drainage system;  Facilitate freight movement to the City’s industrial and rail spur area;  Enhance visibility, connectivity, and accessibility to essential services and jobs;  Provide opportunity for improved public transit and school bus operations; and  Promote the potential for enhanced economic benefits.

In addition, the Ranchero Road Widening Project will result in increased travel reliability and safety, thereby enhancing the transportation utility of this vital corridor, which is necessary to ensure the economic sustainability of the High Desert area and the Southern California region as a whole.

Regional/National Significance I-15 is a major truck/commuter/inter-state travel route that originates at the junction of Interstate 5 (I-5) in San Diego, 10 miles north of the U.S./Mexico border, extends northeasterly across the western half of the United States, and terminates in Sweetgrass, Montana, at the U.S./Canada border. The Caltrans District 8 portion of the route starts at the Riverside/San Diego County Line and ends at the Nevada State Line.

In Southern California, I-15 links commuters between the greater Los Angeles Area and the Inland Empire cities including Rancho Cucamonga, Ontario, San Bernardino, Corona, Riverside, and Temecula with the high desert communities of Hesperia, Apple Valley, Adelanto, Victorville, and Barstow.

Its main use is for the inter-state/interregional movement of people and goods to and from the greater Los Angeles Area. It is also a primary link between major economic centers and geographic regions and is classified as a “High Emphasis” and “Gateway” route in the Interregional Road System (IRRS). I-15 has also been included in the Federal Surface Transportation Assistance Act national network for oversized trucks. Weekend and holiday recreational traffic on the route is typically high because it serves as a connection to Las Vegas and the Colorado River area via Interstate 40 (I-40).

In addition, I-15 serves as a major freeway linking to Interstate 10 (I-10), I-40, State Route (SR) 60, SR-210, SR-91, SR-58, and US-395. It also connects with SR-18, SR-138, SR-74, SR-66, and SR-79. Hesperia offers what is becoming a rarity in Southern California – City-owned rail property and two prime 200+ acre sites, each controlled by a single entity (Figure 9), located in the City’s industrial corridor.

CITY OF HESPERIA 8

RANCHERO ROAD WIDENING PROJECT

Figure 9. G Avenue Industrial Rail Lead Track Park

When completed, the Ranchero Road Corridor Project will provide efficient and direct access to this industrial corridor, thus increasing industrial opportunities in the City and improving the movement of goods and services as well as providing job opportunities.

Ranchero Road also provides access to Hesperia Airport, a public-use and privately-owned airport, which is located off East Santa Fe Avenue on the south side of Ranchero Road. Classified in the National Plan of Integrated Airport System as a General Aviation, basic utility airport, Hesperia Airport also serves as the nearest Flight Service Station (FSS). As an FSS, the airport provides information and services to aircraft pilots before, during, and after flights, and provides assistance during emergencies. The project will improve efficiency of emergency services vehicles throughout the area, including the airport during emergency situations. Further, Ranchero Road provides goods transport to the aircraft and military manufacturers adjacent to the airport. The airport also accommodates a Flight for Life Emergency Medical Air Transit helicopter that serves the region. The Ranchero Road Widening Project improvements can provide for prompt pilot response to the helicopter pad as well as patient transport via ambulance to the Flight for Life unit.

Economically, the Ranchero Road Widening Project will increase property values and create sustainable jobs resulting from the ignition of new development. Over 265 acres of vacant land are present today along Ranchero Road and near the Interchange. The project will attract and re- energize development and emphasize sustainable growth.

Key Component of a Larger Effort to Revitalize Ranchero Road

The Ranchero Road Widening Project is a key element in a larger effort to promote commerce and increase land value in Hesperia. These larger efforts also have a focus on providing “ladders of opportunity” for residents of Hesperia and surrounding communities. The project will make these broader development efforts more successful and impactful to residents and the City as a whole. The following identifies some of these expanding efforts:

Development of Adjacent 100-Acres The proposed development project site is located within the City’s Planning Area 13 near Ranchero Road and the I-15. The development site in the interchange area consists of over 100 acres which is being marketed for regional and destination oriented retail and entertainment venues. Some utilities to serve this area have been installed in Mariposa Road and Caliente Road

CITY OF HESPERIA 9

RANCHERO ROAD WIDENING PROJECT near the Ranchero Road Interchange of the I-15 as part of the Ranchero Interchange project. The UPRR track is approximately 1,400 feet northeast of the existing sewer lines near the project site, and there is a 20-foot deep wash east of Mariposa Road on Ranchero Road. Figure 10 below is the vicinity map of the development site.

Figure 10. Ranchero Road Interstate 15 Interchange Development Location

Private Development In 2016, a master planned community of residential and mixed-use development on approximately 9,365 acres was approved by the Hesperia City Council. The Tapestry Development is approximately eight miles east of I-15 along SR 138. State Route 173 generally serves as the project site’s southern and eastern boundary. The northerly boundary is Ranchero Road. Terra Verde Group, LLC, the developer of the Tapestry Project proposes a maximum of 16,196 residential units with a mix of densities ranging from very low density and equestrian to high density and mixed-use. The majority of the residential units would be low/medium density. Ranchero Road will serve as their primary access to I-15, connecting these residents to jobs, goods and services throughout the High Desert and beyond.

In addition to residential uses, the Tapestry Development will include the following:

 Two mixed-use town centers totaling approximately 94 acres.  Approximately 387 acres of park land, including community and neighborhood parks, sports fields, passive recreational open space areas, and water features.  An extensive trail system including trails and enhanced pathways adjacent to streets, and off-street, and equestrian trails totaling approximately 59 miles (94 acres), and neighborhood entry and concrete sidewalk connections totaling approximately 107 miles (138 acres).

CITY OF HESPERIA 10

RANCHERO ROAD WIDENING PROJECT

 Eight elementary schools, two middle schools, and two high schools totaling approximately 262 acres of school uses.  Public and civic facilities (e.g., post office, library branch, fire stations, etc.).  A wastewater treatment facility and lift stations.  Roadways, drainage facilities, domestic and recycled water infrastructure, and other associated infrastructure.  Preservation of approximately 3,533 acres of open space, including an approximately 523- acre conservation easement and an approximately 81-acre Serrano Heritage Preserve (with an approximately 72-acre overlap between these two categories), as well as approximately 58 acres of recycled water storage ponds.

Ladders of Opportunity Both businesses and residents prize the City of Hesperia’s strategic location at the top of the Cajon Pass, providing ease of accessibility to Hesperia’s 17 miles of prime freeway frontage and direct access to Ranchero Road by way of the new interchange. Hesperia is a diverse city covering more than 75 square miles of various urban areas with industrial to retail and large residential areas. There are significant areas of land that are undeveloped or vacant. With almost 300,000 residents living in the Victor Valley, Hesperia provides the prime location for economic activity. This project will enable retail service industries such as grocery and prescription drug stores to locate in this area. These strategically-located services would allow for a shorter drive time and reduce congestion throughout the City. In Hesperia, access to everyday needs often requires driving a vehicle. Costs may make it difficult for Hesperia’s diverse population to safely reach their destinations. The cost of owning and operating one car can be upwards of $9,000 annually4 (Exhibit 3), making up nearly 20 percent of the median household income in Hesperia.5 In response, the Ranchero Road Widening Project fully encompasses the USDOT concept of “ladders of opportunity.” The project will transform Hesperia’s transportation environment by constructing a critical facility to connect the community to centers of employment, education, essential services, and stimulate commerce.

Project Details

The Ranchero Road Widening Project will consist of widening five miles of Ranchero Road from two to four lanes to include features such as demolition of the existing bridge and construction of a new bridge over the DWR California Aqueduct, widening of an UPRR at-grade crossing, and signalization of three intersections, two of which will require accommodating existing high voltage transmission lines belonging to Southern California Edison. (Figure 11).

4 American Automobile Association, Your Driving Costs (2012) 5 US Census American Community Survey (2015)

CITY OF HESPERIA 11

RANCHERO ROAD WIDENING PROJECT

Figure 11. Ranchero Road Widening Project Map

The proposed new capacity will include the following elements:

1. Curb to curb widening ranges from 63’ to 92’ to accommodate two travel lanes in each direction; 2. Construction of nine turn pockets; 3. Striped median providing safe turning movements at 13 intersections; 4. Installation of traffic signals located at 7th Avenue, Cottonwood Avenue and Maple Avenue (Figure 12-14);

Figure 12. 7th Avenue Figure 13. Cottonwood Avenue Figure 14. Maple Avenue

CITY OF HESPERIA 12

RANCHERO ROAD WIDENING PROJECT

5. Widen UPRR at-grade railway crossing on the west by constructing three lanes in each direction, including 4-foot (4’) wide bike lanes and new crossing arms and flashing beacons (Figures 15 - 18);

Figures 15 – 17. Existing Conditions of UPRR At-Grade Railway Crossing

Figures 18. Rendering of the UPRR At-Grade Railway Crossing (Exhibit 4)

6. Widen and raise the California Aqueduct Bridge crossing to a 3-foot (3’) minimum vertical clearance from top of canal liner to bottom of bridge soffit and a 5-foot (5’) minimum horizontal clearance from face of abutment to the top of the canal liner to accommodate three lanes of traffic in each direction and add a raised median and bike/pedestrian pathway (Figure 19-21).

CITY OF HESPERIA 13

RANCHERO ROAD WIDENING PROJECT

Figure 19-20. Existing condition of the California Aqueduct Bridge Crossing

Figure 21. Rendering of the California Aqueduct Bridge Crossing (Exhibit 4)

7. Improve drainage system in three locations to extend existing storm drain pipes for a wider roadway to convey storm flows safely under the roadway, protecting the safety of motorists, pedestrians, and the roadway. Further, a new drainage system within the aqueduct bridge will allow storm flows to continue across the aqueduct preventing storm water from entering the aqueduct as it does today. Thus minimizing the potential for pollutants carried in storm water to degrade the quality of drinking water DWR transports to southern California via the aqueduct.

CITY OF HESPERIA 14

RANCHERO ROAD WIDENING PROJECT

II. PROJECT LOCATION

Geospatial Location and Map

Bisected by I-15 and U.S. 395, Hesperia, California sits at the foot of the San Bernardino National Forest, 35 miles north of San Bernardino, 90 miles northeast of Los Angeles and 195 miles south of Las Vegas, Nevada. Located in the Victor Valley region of the Mojave Desert, Hesperia is located in an area that is regionally referred to as the High Desert due to its elevation of between 3,200 and 4,000 feet above mean sea level (Exhibit 5). As of 2017, the population of Hesperia is 93,778, making it the second most populous city in the High Desert. The City of Hesperia is located within a boundary of a Census-designated Urbanized Area for Victorville-Hesperia.

A unique consideration for Hesperia are the several north-south obstructions that traverse the City. One of these barriers is the BNSF railway lines, which bisects Hesperia from north to south. This railway is a major commerce corridor with 110 trains passing through Hesperia each day transporting a variety of goods from the ports in Long Beach and Los Angeles to the western and central portions of the U.S. The DWR California Aqueduct divides the City from the northwest to the southeast and is utilized to provide drinking water to Southern California. Two sets of Southern California Edison high voltage transmission lines and ancillary easements also pass through the City north to south and northeast to south. In addition, the Mojave River, which runs north to south traverses through our region along the eastern border of Hesperia with I-15 and Highway 395 each bisecting the City near the western border. These impediments make it challenging to provide east-west connectivity. All elements of the Ranchero Road Widening Project will be completed within the jurisdictions of the City of Hesperia and County of San Bernardino. The proposed project's western limits along Ranchero Road begin approximately 1,000 feet east of Mariposa Road and extend to Seventh Avenue to the east for approximately five miles. Within the project limits, approximately three miles are within the County's jurisdiction, from the westerly project limits to Topaz Avenue, and the City’s jurisdiction consists of approximately two miles of the proposed project from Topaz Avenue to Seventh Avenue (Figure 22 below and Exhibit 6).

Figure 22. Location of Project Site (in green outline)

CITY OF HESPERIA 15

RANCHERO ROAD WIDENING PROJECT

Demographics

In 1980, Hesperia was a small unincorporated community containing only a few stoplights and 13,540 people—a number that increased to 62,582 by 2000. Hesperia’s growth between the years 2000 and 2010 was a dramatic 43.9 percent. During the same time period, the population growth in the County was 21.5 percent; the State, 11.8 percent and the nation, 9.8 percent. Today, Hesperia is a thriving community of 93,778 residents, with a projected population of 102,040 by the year 2020. Its location between Los Angeles and Las Vegas gives it strategic economic development importance for the region (Figure 23).

Regionally speaking, the entire Victor Valley area of the High Desert exceeds 310,000 people, which offers an extensive trade market area and labor pool. Population, traffic counts, workforce, and new commercial developments add to the vitality of Hesperia as a location of choice for retail, commercial and industrial business.

Figure 23. Hesperia location in relation to neighboring communities

CITY OF HESPERIA 16

RANCHERO ROAD WIDENING PROJECT

Employment

Hesperia’s growing economy is characterized by a diverse mix of traditional and emerging industries. Its labor pool consists of 37,259 productive and motivated workers 16 years and older seeking employment with companies that can provide a rewarding and stable environment. Major employers include the warehouse and distribution field, manufacturing, construction, education, restaurant, and government.

A longtime jobs-housing imbalance has existed in the region, created by the lower cost of living in conjunction with relatively short commuting distances to job centers to the south in the Inland Empire. Because of its proximity to the Cajon Pass, Hesperia is the most commuter-friendly community in the High Desert, with the average commute to work being just under 40 minutes each way. However, the largest percentage of residents (25.7 percent) spend 15 to 29 minutes driving to work. Table 3 shows jurisdiction comparisons for Hesperia and the neighboring communities.6

City of City of Town of City of Hesperia Victorville Apple Adelanto Valley Demographics (2011-2015 U.S. Census Bureau) Population 93,778 120,703 71,083 32,059 % Unemployment Rate 6.9% 6.8% 7.34% 46.0% % People Below Poverty Level 24.8% 26% 20.6% 40.3% Median Household Income $48,639 45,894 44,874 33,298 Means of Transportation to Work Workers 16 years and older 37,259 37,828 23,451 21,331 Vehicle 27,612 34,724 21,558 6,834 Public Transportation 248 413 177 95 Walking 197 262 252 71 Other (biking, taxi, worked at 2,048 2,429 1,464 385 home) Occupied Housing Units 26,253 31,886 23,727 7,732 One Vehicle Available 7,530 10,261 7,954 2,923

Table 3. Statistical information for Hesperia and the neighboring communities.

Hesperia households qualify as Disadvantaged Communities (DAC) with a median household income (MHI) of $48,639, which is 75.4 percent of California’s MHI of $64,500. Although Hesperia’s previously strong housing market was not immune as the housing boom stalled and values began free-falling in late 2007, today, Hesperia enjoys a 64.1 percent owner occupied housing rate. In Figure 24 below, Hesperia statistical information is provided7.

6 U.S. Census American Community Survey (2015) 7 www.cityofhesperia.us/demographics

CITY OF HESPERIA 17

RANCHERO ROAD WIDENING PROJECT

Figure 24. Hesperia at a Glance

CITY OF HESPERIA 18

RANCHERO ROAD WIDENING PROJECT

III. GRANT FUNDS, SOURCES AND USES OF PROJECT FUNDS

The total project cost is estimated at $37 million, of which, $9.7 million is requested TIGER grant funding and the remaining $27.3 million from various public and private sources. As discussed in other sections of this application, the project proponents include the City ($9.6 million), San Bernardino County ($11.0 million) and SBCTA ($6.7 million). The City has agreed with local developers to assist with its share of the project costs adding the private source component to the project funding. TIGER grant funding will pay for approximately 26 percent of the total project cost, local match funding will pay for 44 percent, which includes SBCTA funding, combined with regional funding of 30 percent. For the private funding, the City is drafting a Development Agreement with Terra Verde to provide amounts prior to 2019. Regional agencies are contractually obligated to furnish its portions of the project amounts upon City execution of the project.

A summary of total project costs by source and cost share is presented in Table 4 below. Additionally, a summary of project funding uses is presented in Table 5 below. As shown, the City has completed project approvals and CEQA environmental compliance, so no additional funding is required to complete with the exception of updating to National Environmental Policy Act (NEPA) compliance. Of note, all grant funds will be directly applied to construction. Lastly, a summary of construction costs in presented in Table 6 below. Detailed construction cost estimates and project budgets are enclosed as Appendix B.

Project Funding Sources Estimated Percent Costs Federal Share TIGER Discretionary Grant Program $ 9,700,000 26% Non-Federal Share City of Hesperia $ 9,600,000 26% San Bernardino County Transportation Authority-City $ 6,700,000 18% County of San Bernardino $4,565,000 12% San Bernardino County Transportation Authority-County $ 6,435,000 18% Total $37,000,000 100% Table 4. Sources of Funds

Project Funding Uses TIGER Non-Federal Total Approval and Environmental $ - $ - $ - Documents Specifications and Estimate $ - $ 2,860,000 $ 2,860,000 Right-of-Way $ - $ 3,860,000 $ 3,860,000 Construction $ 9,700,000 $20,580,000 $30,280,000 Total $9,700,000 $27,300,000 $37,000,000 Table 5. Project Funding Uses

CITY OF HESPERIA 19

RANCHERO ROAD WIDENING PROJECT

Description $ Amount Percent Roadway Construction $ 16,470,000 45% Bridge Construction $ 10,810,000 29% Right-of-Way/Other $ 3,860,000 10% Design $ 2,860,000 8% Construction Management $ 3,000,000 8% Project Total: $ 37,000,000 100% Table 6: Construction Costs IV. MERIT CRITERIA

Primary Selection Criteria

Safety Completing the Ranchero Road Widening Project will provide for increased safety for all users in the area, including pedestrians, bicyclists, transit riders and commuters of all ages between the Ranchero/I-15 Interchange and the Underpass near Seventh Avenue. Sidewalks are used where possible by existing pedestrians, but pedestrians and cyclists spend much of their trips in mixed traffic. The Project would mitigate the insecurity felt by high school student walkers and cyclists traveling in the area in mixed traffic. The improvements contained in this project will reduce response time for emergency response vehicles and improve access to a Flight for Life Emergency Medical Air Transit helicopter for the region located just south of Ranchero Road at the Hesperia Airport. Further, Ranchero Road is designated as an Other Critical Route with the County of San Bernardino Office of Emergency Services. Once the improvements are complete, the status of the corridor will be elevated to a Secondary Critical Route which is vital to the Victor Valley Region in the event of a catastrophic emergency. The total value of the safety benefit is estimated to be approximately $3.2 million annually (Appendix A, Table 3). This benefit and the accident reduction benefits generated by the mitigation of other hazards results in $30.0 million in overall safety benefits, assuming a 7 percent discount rate (Appendix A, Table 7). It should be noted that accident reduction benefits also would be expected as existing automobile drivers are encouraged to walk or bike to activity centers, in lieu of driving. These benefits are not monetized nor included in the benefit-cost analysis, so the accident reduction benefits estimate is likely conservative. State of Good Repair Considering that the transportation systems were constructed prior to the City’s incorporation in 1988, the existing systems are in a state of disrepair. Existing roadway infrastructure is in need of replacement and the transportation systems do not include sufficient capacity for existing and future transportation network efficiency, mobility of goods, accessibility and mobility of people, or economic growth. If left unimproved, economic development opportunities will be significantly impaired. Current traffic conditions create congestion on the I-15 consequently creating significantly greater congestion along the regional trade corridor. In addition, some areas beyond state right-of-way do not include bicycle or pedestrian improvements. The proposed project will develop a corridor to facilitate traffic movement without significant delays at all project

CITY OF HESPERIA 20

RANCHERO ROAD WIDENING PROJECT intersections. In addition, the project includes construction of both bicycle and pedestrian improvements to encourage non-vehicular modes of transportation and to encourage the use of public transportation.

The project includes primarily asphalt concrete improvements that are typically resilient and will minimize life-cycle costs. Completed improvements will be included in infrastructure maintenance programs funded through Measure I (San Bernardino County), local gas tax revenue and other revenue sources to ensure project life in perpetuity. The project is appropriately capitalized up front and uses asset management approaches that optimize its long-term cost structure. In addition, the project has a sustainable source of revenue for operations and maintenance of the project. The project improves the transportation asset’s ability to withstand probable occurrence or recurrence of an emergency or major disaster or other impacts of climate change. Finally, the project contributes to improvement in the overall reliability of a multimodal transportation system that serves all users.

Economic Competitiveness The City of Hesperia is an economically distressed area. The project will facilitate growth that will create economic activity, development, and jobs (both medium term during project development and long term). The project will enhance reliability of movement of workers and goods by reduction of congestion along the Ranchero Road Corridor and I-15, a regional goods movement corridor. As discussed in the project description, the Ranchero Road Widening Project will enhance mobility for residents, seniors, students, and workforce by providing safe access to all users.

Amplified demands of east-west access points have created a vital need to improve all forms of mobility, improve road serviceability, increase transportation efficiency, promote greater safety for a growing employment base, and develop a proposal that will meet state, regional and local transportation goals.

The greater length of Ranchero Road is residential, delivering its population to employment centers in, near, and generally beyond the High Desert communities. In fact, the commute can extend into the Greater Los Angeles Area and Inland Empire of San Bernardino, Ontario, Riverside and beyond. The project’s location offers the ability to provide support services and extend the delivery of goods and services. From an economic perspective, the lower property values and convenient access to freeways and rail lines have made Hesperia an ideal location for manufacturing and industrial facilities, retail centers, warehouses, rail yards, and distribution centers. In fact, the Ranchero Road Interchange is zoned for regional commercial uses and ideally situated within close proximity to transportation corridors leading to mountain resorts including Big Bear and Mammoth. This I-15 intersection is destined to become a prime retail destination, particularly for outdoor lifestyle specialty stores for recreational sports such as camping, skiing, fishing, hunting, related apparel and more.

The socio-economic demographics of the project area largely account for workers who fill positions synonymous with these types of employment centers. This demand will continue to grow as future retail, commercial and manufacturing industries develop within proximity to this project

CITY OF HESPERIA 21

RANCHERO ROAD WIDENING PROJECT site. More efficient movement of traffic accessing Ranchero Road from the I-15 will provide long- term benefits resulting from this completed project.

The Tapestry master-planned community on the east end of the project area will provide significant opportunities for both medium-term construction jobs and greater long-term regional employment opportunities. Included within this development are 16,196 residential units, and 94 acres of mixed use town centers, along with 387 acres of park land, 59 miles of trails, and connectivity to the I- 15 freeway corridor.

Environmental Sustainability The project makes good business sense and good environmental sense. The project aims to balance economic, social and environmental objectives of the Hesperia community.

The Ranchero Road Widening Project will promote and support a change of travel patterns that will in turn reduce vehicle miles traveled because trips can be completed with less congestion and subsequent vehicular idling. The project will provide some savings by reducing greenhouse gas emissions as well as wear and tear on roadways and motor vehicles due to reduced vehicle idling in addition to other benefits by implementing sustainability initiatives. These changes in overall travel behaviors result in less oil dependence and reduced emissions. The travel time savings is just under $2.8 million annually (Appendix A, Table 4). Additionally, the project will provide an average annual reduction in CO2 emissions of 2,356 Metric Tons per year (Appendix A, Table 8).

Environmental sustainability benefits are also a result of the project’s implementation attributes. The project itself requires negligible right-of-way acquisition because the widening will occur within the majority of existing City right-of-way.

Quality of Life Limited employment options in the region mean that many residents of Hesperia and neighboring communities need to travel long distances to the I-15, then utilize I-15 to reach regional employment centers and employment outside the region. The area’s strong dependence on vehicular travel to reach these opportunities, coupled with a constrained street network, result in many lengthy travel times.

Further, essential services such as major medical centers are located outside the City. Improvements to Ranchero Road provides direct access to I-15 and resulting north or south travel to major medical services.

Secondary Selection Criteria

Innovation The design standards of the project will ensure that this first route is operable with other cross streets and rail projects envisioned by the City of Hesperia. Updated zoning regulations now require active and productive land uses, wider sidewalks, and buildings that are designed to engage with the surrounding environment.

CITY OF HESPERIA 22

RANCHERO ROAD WIDENING PROJECT

Partnership The City is the lead agency partnering with the County of San Bernardino, SBCTA, and a private developer to complete the project. As noted above, three miles of the project are located within the unincorporated areas of San Bernardino County. That portion of the project will be funded by County development impact fee funds. The partnership is documented in an interagency agreement. Supporting documents are available on the City’s on the City's TIGER Grant website at http://www.cityofhesperia.us/TigerGrant.

CITY OF HESPERIA As the lead agency, the City will carry out the Ranchero Road Widening Project. Hesperia has successfully completed several multimodal transportation related improvement projects, two of which were the first two phases of the Ranchero Road Corridor as previously mentioned. Other projects include the “G” Avenue Industrial Rail Lead Track and Drainage Channel Project, Main Street/I-15 Interchange, Hesperia Township Revitalization on Spruce and Smoke Tree Streets, Main Street Bridge Rehabilitation, installation of bike paths throughout the City, and ADA compliant access ramp reconstruction.

The City is a general law City operating under a Council-Manager form of government with authority and responsibility for local legislative acts vested in the Council with a total Fiscal Year 2017-18 budget of $95 million.

SAN BERNARDINO COUNTY San Bernardino County is the largest county in the U.S. with over 20,000 square miles of service area. The County’s Board of Supervisors is charged with providing essential services ranging from infrastructure and water to health services and public safety in unincorporated areas within its boundaries. The County has been partnering with the City on this project since 2011.

SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY SBCTA is the regional transportation authority in San Bernardino County tasked with planning multi-modal transportation, programming State and Federal funds for regional projects, and managing the voter-approved transportation sales tax for the entire County.

Having identified the project’s regional significance, SBCTA will fund 41.3 percent of the City’s and 58.5 percent of the County’s total project costs. SBCTA will use gas tax and Measure I (local gas tax) to fund its portion of the project. The funding commitment to the project is documented in Project Funding Agreements with SBCTA.

TERRA VERDE DEVELOPMENT, LLC Terra Verde Development, LLC is a private developer having an approved master-planned community in the City as previously described in Section I. Through Hesperia City Council approval, the Terra Verde Development has committed to contribute $9 million to the project, which will be documented by a Development Agreement.

CITY OF HESPERIA 23

RANCHERO ROAD WIDENING PROJECT

V. PROJECT READINESS

Technical Feasibility

As demonstrated by the completion of Phase I, the BNSF Railway Undercrossing and Phase II, the interchange at I-15 of the Ranchero Corridor Project, the City has experience in delivering extremely complex projects and overcoming unique challenges such as the various barriers that traverse the City as described in Section II. Effective planning and coordination with multiple permitting agencies, municipal agencies and utility providers is essential to deliver a successful project within time constraints and budget.

Improvement design for the Ranchero Road Widening Project is in accordance with Caltrans Standard Guidelines, City Standards, County of San Bernardino Standards, DWR Standard Guidelines, and other applicable local, state, and federal requirements. The improvements to be constructed are as specified under Project Details. Cost estimates are based on completed engineered construction drawings for the roadway improvements and preliminary design plans for the aqueduct crossing.

Since the majority of improvements can be installed within existing right-of-way, little right-of- way is required for this project with the majority being for the aqueduct bridge. The City is in the process of acquiring the right-of-way for the aqueduct bridge with anticipated completion in summer 2018.

Project Schedule

The project schedule provides sufficient time to ensure that unexpected delays will not put TIGER Grant funds at risk of expiring before they are obligated; the project can begin construction quickly upon receipt of a TIGER Grant; the grant funds will be spent steadily and expeditiously once construction starts (Table 7).

Anticipated Milestones Status Start Complete Environmental Compliance (CEQA) Complete Environmental Compliance (NEPA) Pending Grant Award Jan. 2018 Jul. 2018 Design (Roadway) Complete Design (Aqueduct Bridge) Near Completion Dec. 2017 Design (At Grade RR Crossing) Dec. 2017 Sept. 2018 Right-of-Way Acquisition (Aqueduct) In Progress Aug. 2018 Permits (Aqueduct Bridge) Jan. 2018 Apr. 2018 Permits (Railroad Crossing) Sept. 2018 Oct. 2018 Caltrans Authorization to Proceed Oct. 2018 Oct. 2019 Bidding and Procurement (Roadway) Nov. 2019 Feb. 2020 Bidding and Procurement (Aqueduct Bridge) Jun. 2020 Sept. 2020 Bidding and Procurement (Railroad Crossing) Oct. 2020 Jan. 2021

CITY OF HESPERIA 24

RANCHERO ROAD WIDENING PROJECT

Construction (Roadway) Mar. 2020 Dec. 2020 Construction (Aqueduct Bridge) Oct. 2020 Jan. 2022 Construction (At Grade RR Crossing) Feb. 2021 Aug. 2021 Project Closeout Mar. 2022 Sept. 2022

Table 7. Project Schedule

The schedule demonstrates that all necessary pre-construction activities will be completed by October 2018, and that all funding will be obligated by October 2019 or earlier.

Required Approvals

An Environmental Impact Report (EIR) was complete in June of 2013 in compliance with the California Environmental Quality Act (CEQA). The completed EIR is available on the City's TIGER Grant website at http://www.cityofhesperia.us/TigerGrant. Due to the elimination of Redevelopment Agency (RDA) funds in California, the project was on hold for a period. Because the use of RDA funds only required a CEQA document and there were no Federal funding sources utilized at the time, the City was able to forego initiation of the NEPA process. Should the City be successful in securing a TIGER Grant, the necessary environmental updates consistent with NEPA will be processed. Since the CEQA-compliant EIR was completed, the City can expedite the NEPA process without delay to the obligation of grant funding.

Construction drawings for the aqueduct bridge require approval by DWR and permit issuance. Design is near completion and slated for subsequent approval in spring 2018. UPRR has oversight of the at grade railroad crossing with approval to follow in fall 2018.

If successful in receiving a TIGER Grant, construction activities must receive authorization to proceed from Caltrans due to the utilization of a Federal funding source. All Federal-aid transportation projects in California must go through the Caltrans authorization process. The City will coordinate the approval process in accordance with Caltrans guidelines. Said approval will mark the obligation of TIGER funds received.

Assessment of Project Risks and Mitigation Strategies

This project has negligible risk because the roadway portion of the project is essentially shovel- ready with the exception of the environmental update to meet NEPA requirements. As previously stated, this will be expedited to avoid delay of grant funding obligation. Construction will be segmented into stages (street improvements, aqueduct crossing, at grade crossing) to avoid conflicts with construction staging, equipment and work performance. In the unlikely event the City is still awaiting DWR or UPPR approval for the aqueduct bridge and at grade crossing respectively, the order of each construction stage may be reprioritized. Upon NEPA clearance, construction of the street improvements may commence in advance of the other two structures.

CITY OF HESPERIA 25

RANCHERO ROAD WIDENING PROJECT

VI. BENEFIT COST ANALYSIS

After completing the benefit cost analysis for the Ranchero Road Widening Project, the net present value is $21.3 million when discounted at 7 percent and $47.3 million when discounted at 3 percent. Overall, the project will generate benefits of $120.6 million and costs of $40.0 million prior to discounting. The costs and benefits analysis was laid out over 20 years and estimates are thought to be conservative. The following section describes the analysis in greater detail, including how it relates to the selection criteria (i.e. Safety, Economic Competitiveness, Environmental Sustainability, and Quality of Life).

Numerous traffic studies, including those by the Federal Highway Administration (FHWA), confirm that roadway improvements, such as installing left and right lane turn pockets and installing striped and raised medians, provide a significant reduction in both fatalities and injury accidents that occur along traditional two-lane roadways. As population has and continues to grow and traffic congestion increases, so do the number of traffic collisions. The proposed project will not only install additional travel lanes to accommodate the increased traffic volume, but also install several safety measures (turn pockets and medians) to reduce the number of vehicle conflict points. A study by the FHWA in 2008 shows a 50 percent reduction in all accident types when these improvements are implemented along two-lane roadways.8 Additionally, the FHWA issued a Traffic Signal Brief in 2009 that analyzed the improved safety provided by installing traffic signals on existing 4-way intersections with all-way stop control. The report found a 44 percent reduction in all accident types when traffic signal improvements were implemented.9 For this analysis, we applied the average accident reduction factor of 47 percent to account for safety improvements provided by the proposed project.

Project accident and injury information was obtained through the Transportation Injury Mapping System (TIMS), established by researchers at the Safe Transportation Research and Education Center (SafeTREC) at the University of California, Berkeley; and from the California Highway Patrol (CHP). The data sources were cross referenced to remove any duplicates prior to beginning our analysis. The data shows that over the past 10 years the following accidents have occurred in the project area: 98 collisions with complaint of pain injuries, 41 collisions with visible injuries, 6 collisions with severe injuries, and 6 collisions that resulted in a fatality.

Using the USDOT Guidance on Treatment of the Economic Value of a Statistical Life in Analyses (2016), the monetized value of injuries and fatalities can be calculated. Since the U.S. DOT’s accident severity scale didn’t match those utilized by the CHP and TIMS, an accident severity scale comparison was prepared to align the severity scales, see Appendix A, Table 1. Using the data provided by U.S. DOT and the last 10-year accident history along the project area, the monetized value of injuries and fatalities is approximately $71.7 million or approximately $6.5 million per year; please refer to Appendix A, Table 2 for the detailed analysis. As presented above,

8 Safety Evaluation of Installing Center Two-Way Left-Turn Lanes on Two-Lane Roads, March 2008, U.S. Department of Transportation, Publication No. FHWA-HRT-08-042 9 Intersections Safety Issue Briefs, Third Edition, November 2009, U.S. Department of Transportation, Publication No. FHWA-SA-10-005

CITY OF HESPERIA 26

RANCHERO ROAD WIDENING PROJECT applying a 47 percent reduction in injury accidents, the historic average annual value of injuries and fatalities of $6.5 million will be reduced to $3.3 million once the project is completed; see Appendix A, Table 3. This results in a projected average annual monetized safety benefit of reduced injuries and fatalities with the implementation of the project of $3.2 million.

Our next set of benefit-cost analysis looked at economic competitiveness, environmental sustainability, and quality of life. As previously stated, the City’s industrial corridor is located at the east end of the Ranchero Road Corridor Project. The City has been advised by potential developers within the industrial area that its limited access is an ongoing concern. Additionally, residents on the east end of Ranchero Road are subject to significant delays, between four and five minutes in total along the 5-mile stretch, when traveling during the morning and evening peak travel times. These traffic related inefficiencies affect the City’s economic competitiveness in attracting industrial businesses, environmental sustainability in generating excess greenhouse gas emissions, and livability and quality of life for its current and potential residents.

Traffic efficiencies are related to the value of travel time savings generated by reduced congestion, queuing and delays caused by red lights and stop signs. During daily peak travel time, commuters are delayed by a number of factors; in this case, the inefficiency of existing transportation systems are lane capacity and intersection control. Under existing conditions commuters are delayed 38 hours per year on average during peak hours. In 2040, it is estimated that commuters would be delayed 136 hours per year, on average, during peak hours, without the proposed project improvements. However, in 2040 with the implementation of the proposed project improvements, commuters would only be delayed an average of 24 hours per year in total during peak hours; an 82 percent reduction in travel time delays. The monetized value of travel time was calculated using the U.S. DOT’s Revised Departmental Guidance on Valuation of Travel Time in Economic Analysis. The average delay cost at peak hour is $248 in existing condition and $1,358 in 2040 without the project improvements. However, with the project improvements the average delay cost at peak hour is $77 in existing condition and $253 in 2040. Overall, the average annual travel time savings with the project is approximately $2.8 million; see Appendix A, Table 4 for the detailed analysis.

Project costs include initial construction, described in Section V, and ongoing operations and maintenance. For transportation infrastructure, in addition to general administration and operations costs, maintenance costs are estimated to include two weeks per year for routine landscape upkeep at a rate of $50 per hour for two people, one day per year for as-needed lighting replacement at a rate of $75 per hour. Further, on a 10-year basis, slurry seal treatment and restriping are anticipated at a unit cost of $0.40 per square foot for slurry seal and $0.20 per square foot for traffic control and striping replacement. Therefore, the total project operations and maintenance costs are estimated at $151,500 per year on average or $3.0 million for the life of the project; see Appendix A, Table 5 for additional information.

In summary, as presented in Appendix A, Table 6, the total life-cycle cost of the project is $40.0 million and the total life-cycle benefit of the project is $120.6 million prior to discounting. Using the recommended discount rate of 7 percent, and 3 percent to account for sensitivity analysis, the Project’s Net Present Value is $21.3 million and $47.3 million, respectively; see Appendix A,

CITY OF HESPERIA 27

RANCHERO ROAD WIDENING PROJECT

Table 7 for the detailed analysis. Additionally, using the recommended discount rate of 7 percent and 3 percent, the benefit cost ratio is between 1.6 and 2.3, respectively. Table 8 below provides a summary of the benefit cost analysis.

Benefit at 7% Benefit at 3%

Safety $ 29,927,291 Safety $ 45,355,419

Economic Competitiveness & $ 25,852,173 Economic Competitiveness & $ 39,179,495 Environmental Sustainability Environmental Sustainability Present Value of Total Benefits: $ 55,779,464 Present Value of Total Benefits: $ 84,534,914

Costs at 7% Costs at 3%

Capital Cost $ (33,448,336) Capital Cost $ (35,399,189)

Operations & Maintenance $ (1,046,658) Operations & Maintenance $ (1,875,490)

Present Value of Total Costs: $ (34,494,994) Present Value of Total Costs: $ (37,274,680)

Net Present Value: $ 21,284,470 Net Present Value: $ 47,260,234

Benefit-Cost Ratio: 1.6 Benefit-Cost Ratio: 2.3

Table 8. Benefit Cost Analysis Summary

The full benefit cost analysis, including assumptions and results, is provided as Appendix A.

VII. COST SHARE

The City has worked diligently with local, State, and Federal agencies to complete the first two phases of the Ranchero Road Corridor Project (Table 9). With the proposed third phase, the City was successful in securing a funding partnership from SBCTA and the County of San Bernardino. Together with City funding, the non-Federal share is 74 percent of the total project budget, as presented in Section 3. In addition, these regional agencies are contractually obligated to providing said funding upon City execution of the project. Lastly, the City has also accounted for operations and maintenance cost for the project, throughout its life-cycle, in the City’s Public Works Streets Maintenance Fund, Measure I (San Bernardino County), local gas tax revenue and other revenue sources.

Aside from the project being nearly shovel ready, without TIGER grant funds, completing the Ranchero Road Widening Project, the final phase of the Ranchero Road Corridor Project, will be delayed until additional funding is secured. The City has exhausted local funding sources and is in critical need of grant funding to close the funding gap and complete this vital project.

CITY OF HESPERIA 28

RANCHERO ROAD WIDENING PROJECT

Project Cost Project Partners Funding Received/Year Funding Source $1.2 million (2005) National Corridor Planning Program $4 million (2006) SAFETEA-LU, FHWA $27 million FHWA & SBCTA (Phase I) $6.4 million (2007) SAFETEA-LU, FHWA Underpass BNSF Railway & SBCTA $15.4 million (2007-2010) City of Hesperia Local Funds $8 million (2006) STP RIP Funds from SBCTA FHWA $12 million SBCTA Measure I San Bernardino MHP $60 million Transportation Authority $3 million (2008-2010) Federal Earmarks (Phase II) (SBCTA) through IMD Program Interchange $10 million (2005-2012) Development Impact California Department Fees (DIF) of Transportation $7 million (2008) STP Funds from (Caltrans) SBCTA $20 million (2008-2012) City of Hesperia Local Funds Table 9. Funding History for Phases I and II

CITY OF HESPERIA 29

RANCHERO ROAD WIDENING PROJECT

VIII. FEDERAL WAGE RATE CERTIFICATION

CITY OF HESPERIA 30