To: Honorable Mayor and Members of City Council
From: Joy Eldredge, Utilities Director
Prepared By: Sara Gallegos, Management Analyst
TITLE:
Title
Capital Improvement Program - Update for Fiscal Year 2025/26
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the FY2025/26 & FY2026/27 Capital Improvement Project Plan as documented in budget amendment 58P03.
Body
DISCUSSION:
The City’s Capital Improvement Program (CIP) provides for the planning, funding, and implementation of significant infrastructure projects to meet community needs, support City operations, and align with Council focus areas/priorities. While capital projects are typically one-time expenditures, they often take multiple years to complete. Enterprise funded capital projects are programmed as part of the overall CIP plan on a five-year horizon. The latest 5-year CIP Plan was adopted on June 17, 2025, as part of the City’s Fiscal Year 2025/26 and 2026/27 Budget.
While as much foresight is used during budget development, many factors result in the need to keep projects open beyond the June 30 fiscal year end, despite construction completion. The recommended budget amendments described in this report update the project status of the following project list for FY2025/26 as follows:
• 61MD25UT02 (MDF Recycled Water Connection): Revise project status from “Active” to “Complete” as project was completed by end of fiscal year.
• 63WD25UTHV (Hydrant and Valve Rehab & Replacement): Revise the project status from “Complete” to “Active” due to delayed shipping of large hydrant order not received until early July and outstanding invoice pending.
• 63WD25UT05 (Congress Valley Water Meter Replacement): Revise the project status from “Complete” to “Active” due to pending Congress Valley Water District reimbursement.
• 63WT20UT01 (CIPP Pipeline Improvement NVTA): Revise the project status from “Complete” to “Active” to correct NVTA funding amount as reimbursement of $250,000 was received upon project completion per Agreement C2021-255.
• 9015F206 (2014 So. Napa Earthquake PW 206 Redwood Rd/Hwy 29 HDD Water Line Repair) – Revise the project status from “Complete” to “Active” pending FEMA appeal process and Disaster Recovery Grant closeout and reimbursement.
• 9017FR11 (2017 Napa Wildfires PW 199 Milliken Diversion Dam Access Road Walkways): Revise the project status from “Complete” to “Active” pending FEMA Disaster Recovery grant closeout and reimbursement.
In addition, a couple of minor corrections are necessary to bring the GL in line with the approved CIP project list within the Water Enterprise Capital Improvement Fund 531. The recommended budget amendment 58P03 reduces 53160131 for 63WA25UT01 by $25,000 and adds $500,000 to 53160133 for 9017FR20.
FINANCIAL IMPACTS:
The recommended action allows project budgets to remain available in FY2025/26 for Finance’s project closeout process. The recommended budget amendment 58P03 updates the FY2025/26 CIP budget to: (1) correct NVTA reimbursement amount to $250,000 in 63WT20UT01 (CIPP Pipeline Improvement NVTA); and (2) correct GL amounts to align with CIP project budget within the Water CIP Fund 531, which has sufficient funds.
CEQA:
The Utilities Director has determined that the Recommended Action described in this Agenda Report is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in physical change in the environment.
DOCUMENTS ATTACHED:
ATCH 1 – Resolution
EX A – Budget Amendment 58P03
NOTIFICATION:
None