To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Ian Heid, Senior Civil Engineer
TITLE:
Title
Capital Improvement Program - Update for Fiscal Year 2024/2025
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the Capital Improvement Project Plan as documented in Council Budget Amendment No. 19P8.
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. The CIP is programmed on a five-year horizon, with funding approved by City Council through the budget process or separate Council actions as needed. Upon project completion, any remaining funds within the authorized project budget are recommended to Council to be deobligated and returned to their original funding source.
The recommended budget amendments described in this report would reduce funding on projects that are completed, can be completed by a separate program, or are not ready for construction in 2025. The recommendation also includes adding the funding deobligated from these projects to two street repair projects that are ready for construction in 2025. The CIP is constrained by limited funding, and this proposed action will focus funds on projects that are ready for construction that do not have sufficient funding.
As part of the FY25 mid-year budget review, staff reviewed the current 5-Year CIP projects’ budgets based on status, scope of work, and funding needs. Based on this review, the following budget revisions are recommended in the table below:
- Remove the remaining funding on projects that are complete and return the funds to their originating source fund (i.e. Measure T or CIP General Fund Reserve). These include the Trancas Bridge Scour Repair, the Electric Garage Occupy Signs, the Survey Monument Network, the Kennedy Golf Course Backflow Device, the 1st/2nd/California Utility Maintenance, and Soscol Avenue Rehabilitation (Central to La Homa).
- Remove funding on projects that can be effectively completed through a separate program and return the funds to their originating source fund (i.e. Measure T). Specifically, the Old Sonoma Road Rehabilitation and W. Lincoln Ave/Lone Oak/Solano projects can be completed by the City paving crew. The existing funding available for W. Lincoln Ave/Lone Oak/Solano project is only sufficient to design the project and additional funding would be required for construction. For Old Sonoma Road, funds were programmed for the required funding match for a grant application that was unsuccessful; sufficient funding is not budgeted to construct the project. Transitioning these projects to the future work plan of the City paving crew is cost effective and will free up funding in the CIP.
- Remove funding on projects that are not ready for construction in 2025 and return the funds to their originating source fund (i.e. Measure T or CIP General Fund Reserve). This action prioritizes limited funding for active projects ready to construct. The projects not ready to construct in 2025 include: the Arterial/Gateway Enhancement project which was programmed to match funding for an unsuccessful grant application for the Imola Corridor Traffic Safety Project; the Trower Storm Drain Improvements which requires detailed engineering work and more than $2 million in future construction funding to move forward (and is a candidate for future grant programs); the Redwood Road Rehabilitation Project (Dry Creek to Carol) will be designed after the grant-funded traffic safety plan is developed for the corridor; Jefferson Street Rehabilitation (Trancas to Lincoln) will be designed after the grant-funded traffic safety plan is developed for the corridor and PG&E completes their utility undergrounding project; and remove the traffic signal replacement at Trancas/Claremont to prioritize limited funding for paving projects. Additional funding for these projects will be recommended in future Council actions when they are ready for the construction.
- Add funds to complete active priority projects. These projects are: Lincoln Avenue Paving (including traffic safety improvements) from California Boulevard to Soscol Avenue; and Street Preventive Maintenance, which will apply a slurry coat to Second Street to preserve the life of the pavement and prepare the area for the Main Street/Second Street Pedestrian Scramble Public Art Project (CIP No. PA23PR03).
- Add one new project, 33BR25PW01 (Tall Grass Bridge Repair), due to emergency repair needs. Risk Management funds will advance the Tall Grass Bridge Repair project’s construction documents for permanent slope and embankment repairs.
Attachment 2 provides a table summarizing the recommended obligations and deobligations.
FINANCIAL IMPACTS:
The recommended actions deobligate funds from existing projects and reallocate funds to existing priority projects and creating one new project, resulting in a FY25 net increase of $400,000 in funding allocations.
CIP General Reserve Fiscal Impacts:
The proposed budget adjustment results in a net impact of $0 to the CIP General Reserve fund, as all deobligated funds are immediately re-allocated.
Deobligations - A total of $1,094,872.50 will be returned to the CIP General Reserve Fund from the following projects:
• 33BR05PW01 (Trancas Bridge Scour) - deobligate $52,815.58
• 33MS17CD02 (Electric Garage Occupy Signs) - deobligate $146,359.98
• 33MS17PW01 (Arterial Gateway Enhancement) - deobligate $300,000
• 33MS24PW01 (Survey Monument Network) - deobligate $2.00
• 33PK23PR01 (Kennedy Park Backflow Device) - deobligate $20,429.51
• 33SD17PW03 (Trower Stormdrain Improvements) - deobligate $450,000.00
• 33ST19PW03 (1st/2nd Utility Maint) - deobligate $125,265.43
Obligate $1,094,872.50 of CIP General Reserve Fund balance to 33ST23PW03 (Lincoln Avenue Rehabilitation - California to Soscol)
Measure T Fiscal Impacts:
The proposed budget adjustment results in a net impact of $0 to the Measure T fund, as all deobligations are recommended for immediate re-allocation.
Deobligations - A total of $1,421,672.15 will be returned to the Measure T Fund Reserves from the following projects:
• 33ST20PW08 (Soscol Ave Rehab) - deobligate $152,525.09
• 33ST22PW02 (W Lincoln Ave - Lone Oak/Solano) - deobligate $144,147.06
• 33ST23PW04 (Redwood Road Rehab) - deobligate $100,000
• 33ST25PW02 (Old Sonoma Road Rehab) - deobligate $400,000
• 33ST26PW01 (Jefferson Street Trancas to Lincoln) - deobligate $125,000.00
• 33TS24PW01 (Trancas Street at Claremont Signal) - deobligate $240,000.00
• 33ST23PW06 (Street Preventative Maintenance) - deobligate $260,000.00
Obligate $1,421,672.15 of Measure T Fund balance to the following projects:
• 33ST23PW03 (Lincoln Avenue Rehabilitation - California to Soscol) - $1,161,672.15
• 33ST24PW05 (Street Preventative Maintenance FY23) - obligate $260,000.00
Risk Management Fund Fiscal Impacts:
Create a new capital project, adding 33BR25PW01 (Tall Grass Bridge Repair) to the FY25 CIP Budget and obligate $400,000 of Risk Management Funds to the project.
CEQA:
The Public Works 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 a physical change in the environment.
However, the Recommended Action is a part of a larger “project” that will be subject to environmental review in accordance with CEQA at the “earliest feasible time” prior to “approval” consistent with CEQA Guidelines Sections 15004 and 15352. The larger “project” is future Capital Improvement Projects, and staff plans to bring back a CEQA analysis of each project to Council prior to approval of each project.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Budget Adjustment No. 19P8
ATCH 2 - Obligations and Deobligations
NOTIFICATION:
None.