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; FY 2023-2024 Mid-Year Budget Adjustments for Various Projects
LABEL
RECOMMENDED ACTION:
Recommendation
Deobligate funds from completed projects and obligate necessary funding for new and active projects within the Capital Improvement Program (CIP) by taking the following actions:
(1) Adopt a resolution deobligating $82,838.12 of Capital Improvement Program Facilities Reserve funds from CSB Electrical System Evaluation and Design (33FC22PW05); obligating $82,838.12 of Capital Improvement Program Facilities Reserve funds for Alternate EOC & Emergency Cooling Centers Backup Power (33FC23PD02); and thereby increasing the current expenditure budget of the Capital Improvement Fund by $0, as documented in Budget Adjustment No. 2P10; and
(2) Adopt a resolution deobligating Capital Improvement Program Measure T Funds from the following projects: $1,150,000 from Freeway Drive Rehabilitation (33ST23PW02), $810,000 from Jefferson Street Rehabilitation Trower to Sierra (33ST22PW06); obligating Capital Improvement Program Measure T Funds for the following projects: $1,860,000 for Salvador Avenue Widening (33ST22PW03), and $100,000 for Westwood Neighborhood Streetlights (33ST22PW09); and thereby increasing the current expenditure budget of the Capital Improvement Fund By $0, as documented in Budget Adjustment No. 3P10; and
(3) Adopt a resolution approving the Updated Five-Year List of Projects under the Measure T Program and determining that the actions authorized by this Resolution are exempt from CEQA; and
(4) Adopt a resolution creating two new CIP projects and obligating HSIP grant funding to each in the amount of their respective awards: create project HSIP Pedestrian Improvements (33ST24PW06) and obligate $639,900 of grant funds; and create project HSIP High-Friction Pavement (33ST24PW07) and obligate $465,120 of grant funds; deobligating capital improvement program State Gas Tax Funds from the following projects: $300,000 from HSIP grant matching (33MS24PW03); and obligating Capital Improvement Program State Gas Tax Funds for the following projects: $150,000 for HSIP Pedestrian Improvements (33ST24PW06) and $150,000 for HSIP High-Friction Pavement (33ST24PW07); and thereby increasing the current expenditure budget of the capital improvement fund by $1,105,020, as documented in Budget Adjustment No. 4P10.
Body
DISCUSSION:
The City’s Capital Improvement Program (CIP) is charged with the planning and programming of resources necessary for the acquisition, design, and/or construction of significant City projects. The CIP projects repair or develop community infrastructure or meet community needs, provide facilities to support City operations, and support City Council priorities.
A capital project is considered a one-time expenditure but often the projects take multiple years to deliver and fully fund. While plans are developed for at least a 5-year horizon, funding for the projects within the CIP is approved by Council as part of the budget process, or project funding can be approved by a separate City Council action when funding adjustments are necessary outside the normal budget cycle approval process. Upon completion of a project, remaining funding is deobligated and returned to the fund from which it was allocated.
As part of the mid-year budget cycle for fiscal year 2023/2024, City staff have identified opportunities to deobligate Capital Improvement Fund allocations from projects that have been completed or are near completion. Additionally, three CIP projects currently in progress have been identified as having insufficient allocations for anticipated work to advance project delivery. These projects fall into two categories of funding: CIP Facilities Reserve and Measure T funds. A separate resolution for budget adjustments in each of the two funding categories are proposed for adoption. A third resolution adds the Salvador Avenue Widening Project to the Measure T 5-Year Project List to augment the existing project funding. The widening aspect of the project will provide bike lanes and sidewalks along with street paving. There is no addition of vehicle lanes as part of the project.
Recent completion of construction work on multiple CIP projects allows for the unencumbered funds in the projects’ accounts to be deobligated and returned back to the Capital Improvement Fund. Sufficient funding to complete the administrative functions necessary during these projects’ warranty and close-out periods will remain in the projects after the proposed deobligations.
The City is the recipient of Highway Safety Improvement Program Cycle 11 grant funds (HSIP) in the sum amount of $1,105,020 for two new transportation safety projects. The first project will install Rectangular Rapid Flashing Beacons, ADA curb ramps, curb extensions, signage and striping at six locations throughout the City to improve current uncontrolled pedestrian crossings. The second project will install high-friction surface treatments at ten intersections along two corridors to increase wheel-surface contact through the corridors’ intersections. Locations for both projects were selected based on recommendations from the City’s adopted Local Roadway Safety Plan. In order to leverage the grant funding and associated local match funding, these projects must be added to the Capital Improvement Program.
Obligations are proposed for the following projects, separated by funding category. Sufficient fund balances for the proposed obligations will exist in each of these funds upon approval of the proposed deobligations.
CIP Facility Reserve:
• 33FC23PD02 (Alternate EOC & Emergency Cooling Centers Backup Power) - $82,838.12 - The City’s alternate EOC and emergency cooling center facilities require additional funding to complete the necessary improvements to ensure power can be supplied to the facilities via generators. This funding is anticipated to cover the cost to modify the electrical service panel at the Senior Activity Center to accommodate switch-over to generator power. The generators have been purchased with prior allocated funds for this project and are in the City’s possession.
Measure T:
• 33ST16PW02 (Salvador Avenue Widening) - $1,860,000 - It is recommended that this project is added to the City’s Measure T 5-Year Project List to be eligible to receive Measure T funding to supplement the project’s initial funding from the North Jefferson Development Impact Fee fund. The North Jefferson Development Impact Fee fund may be used within an established boundary that includes Salvador Avenue from Dale Drive to Byway East. For the project to address the rehabilitation of the existing street infrastructure outside of these limits, supplemental funding is required. Measure T has been identified as an appropriate source for the remaining scope of work to extend the project to the east, to the city limit. The project work includes pavement rehabilitation and complete streets elements to improve traffic safety for all modes of travel and add traffic calming features. Funding will be deobligated from projects nearing completion and no projects on the 5-year plan being impacted by this proposed funding allocation.
• 33ST22PW09 (Westwood Neighborhood Streetlights) - $100,000 - Additional funding is necessary to complete the construction of this project. PG&E will be installing the streetlights and has provided the City with a quote to complete the work of $91,763.03. The remaining balance will be used for administrative costs to deliver the work.
HSIP Grant and State Gas Tax:
• 33ST24PW06 (HSIP Pedestrian Improvements) - $639,900 HSIP Grant and $150,000 State Gas Tax for a total of $789,900 - It is recommended this project is added to the City’s CIP to leverage grant funding. State gas tax is needed to meet the grant’s funding match requirements.
• 33ST24PW07 (HSIP High-Friction Pavement) - $465,120 HSIP Grant and $150,000 State Gas Tax for a total of $615,120 - It is recommended this project is added to the City’s CIP to leverage grant funding. State gas tax is needed to meet the grant’s funding match requirements.
FINANCIAL IMPACTS:
The recommended actions propose deobligating funds from completed projects and subsequent allocation of funding to existing (and two new) priority projects. Sufficient fund balances are available to fund the following recommended CIP Project budget revisions.
CIP Facilities Reserve Fiscal Impacts:
The proposed budget adjustment, 2P10, will result in a net impact of $0 to the CIP Facilities Reserve fund, as all deobligations are recommended for immediate re-allocation.
Deobligations - The following deobligations will return $82,838.12 from the referenced Capital Improvement projects to the CIP Facility Reserves Fund and allow for these funds to be utilized for other projects within the 2023-2024 Capital Improvement Program:
• 33FC22PW05 (CSB Electrical System Evaluation and Design) - deobligate $82,838.12 and return to the CIP Facilities Reserve.
Obligations - The following obligations will reduce the CIP Facilities Reserve Fund’s available balance by $82,838.12:
• 33FC23PD02 (Alternate EOC and Emergency Cooling Centers Backup Power) - increase the project budget by $82,838.12.
Measure T Fiscal Impacts:
The proposed budget adjustment, 3P10, will result in a net impact of $0 to the Measure T fund, as all deobligations are recommended for immediate re-allocation.
Deobligations - The following deobligations will return $1,960,000 from the referenced Capital Improvement projects to the Measure T Fund Reserves and allow for these funds to be utilized for other projects within the 2023-2024 Capital Improvement Program:
• 33ST23PW02 (Freeway Drive Rehabilitation) deobligate $1,150,000 and return to Measure T Reserves.
• 33ST22PW06 (Jefferson Street Rehabilitation Trower to Sierra) - deobligate $810,000 and return to Measure T Reserves.
Obligations - The following obligations will reduce the Measure T Fund’s available balance by $1,960,000:
• 33ST16PW02 (Salvador Avenue Widening) - increase the project budget by $1,860,000.
• 33ST22PW09 (Westwood Neighborhood Streetlights) - increase the project budget by $100,000.
State Gas Tax Fiscal Impacts:
The proposed budget adjustment, 4P10, will result in a net impact of $0 to the State Gas Tax fund, as all deobligations are recommended for immediate re-allocation.
Deobligations - The following deobligations will return $300,000 from the referenced Capital Improvement projects to the State Gas Tax Fund Reserves and allow for these funds to be utilized for other projects within the 2023-2024 Capital Improvement Program:
• 33MS24PW03 (HSIP Grant Matching) - deobligate $300,000 and return to State Gas Tax Fund Reserves.
Obligations - The following obligations will reduce the State Gas Tax Fund’s available balance by $300,000:
• 33ST24PW06 (HSIP Pedestrian Improvements) - increase the project budget by $150,000.
• 33ST24PW07 (HSIP High-Friction Pavement) - increase the project budget by $150,000.
CEQA:
The Public Works Director has determined that the Recommended Actions described in this Agenda Report are not in-and-of-themselves a “project” (pursuant to CEQA Guidelines Section 15378) since they do not result in a physical change in the environment.
However, the Recommended Actions are 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 (CIP Facilities Reserve fund)
EX A - Budget Adjustment No. 2P10
ATCH 2 - Resolution (Measure T fund)
EX A - Budget Adjustment No. 3P10
ATCH 3 - Resolution (Measure T 5-Year Project List Update)
EX A - Measure T 5-Year Project List 2024
ATCH 4 - Resolution (HSIP Grant fund and State Gas Tax fund)
EX A - Budget Adjustment No. 4P10
NOTIFICATION:
None.