To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Heather M. Maloney, Administrative Services Manager
TITLE:
Title
Capital Improvement Program - Update for Fiscal Year 2025/2026
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the Fiscal Year 2025/26 & 2026/27 Capital Improvement Project Plan as documented in Council Budget Amendment No. 6P5.
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.
Staff are recommending changes to the CIP to progress design and construction of key projects and leverage available funding to meet community needs. The recommended budget amendments described in this report would update the fiscal year 2025/26 CIP Budget as follows:
• Combine two existing CIP project accounts into one project account to deliver the improvements on Coombsville Road from Silverado Trail to the city limit. The work on Coombsville was originally scoped as two phases but is now planned for a single construction contract. This action would deobligate remaining funds from Coombsville Pascal East End (approximately $122,000 in 33ST22PW08) and re-allocate funds in the same amount to the Coombsville Rehab 3rd - Pascal (33ST22PW04). The project will repave the street and improve pedestrian and bicycle facilities.
• Add one new project obligating $2,500,000 of General Fund CIP reserves to Parking Structure Maintenance (33MS26CD02) for priority repairs and maintenance needs at the Pearl Street, Clay Street, and Second Street Parking Structures. As part of the fiscal year 2018/19 budget, City Council approved a $2,500,000 transfer from the General Fund to the CIP General Fund Reserve to provide funds intended for the construction of a new parking garage. These funds have remained in the General Fund CIP reserve account. At this time, there is a need to complete essential repairs and maintenance on the existing parking structures to ensure their continued safe operation and to be responsive to community feedback regarding their current condition, while planning work is underway to analyze potential locations for a new parking structure. The proposed project will prioritize necessary structural and safety repairs, with a second phase to include functional improvements such as lighting upgrades and refreshed paint. Staff recommends allocating these funds to the new project to support the continued use and improvement of the City’s existing parking facilities.
• Move funds to accelerate the City/County Joint Project - Pueblo Area (33ST26PW06). This proposed action would move $700,000 of Measure U funding and $800,000 of Measure G funding from Westwood Rehab Interior (33ST22PW05) to the City/County Joint Project - Pueblo Area. This proposed transfer will not impact the Westwood project as the account will maintain sufficient funds for project completion. This proposed action will accelerate the Pueblo Area project and accomplish additional work not originally scoped. This project is currently scheduled to receive construction funding in fiscal year 2026/27. However, with design work nearing completion, funding is needed sooner to allow the City to enter into a construction agreement with the Napa Sanitation District. That agreement is anticipated to be presented to the City Council for consideration before the end of the year. Construction will be phased over multiple years and anticipated to begin in 2026.
• Obligate $125,209 of Alston Park Trust Funds (23850200) to Alston Park Restroom Project (33PK18PR02) for path upgrades, access road costs and decomposed granite trail material enhancement. Previous actions for the award of the project and authorization for contract change orders on the February 18 and August 19, 2025 agendas discussed the availability and approval to fund a portion of the project with Alston Park Trust Funds. The recommended action will complete the transfer of $125,209 of Alston Park Trust Funds to the CIP account (33PK18PR02).
• Obligate funds to accelerate a parks priority project: Klamath Park Improvement Project (33PK27PR01) - obligate $65,000 General Fund Reserves to advance project design and bid package preparation. This obligation would fund continued design work in the current fiscal year 2025/26 for an existing park project approved for fiscal year 2026/27. The initial design work is part of a larger effort to improve three neighborhood parks: Klamath, Lake, and Laurel. All three sites were prioritized given their low condition score, high social equity need, and walkability/access by adjacent neighborhoods. The project scope for all three sites includes critical updates to failing pathways and sports courts, general park accessibility, and improvements to existing park amenities. By continuing the design for Klamath Park alongside Lake Park (33PK26PR01) and Laurel Park (33PK26PR02) both approved in fiscal year 2025/26, the City can bid all three sites together, leading to faster project delivery for residents, potential cost savings through economies of scale given similar project scopes, and streamlined construction administration and project management.
FINANCIAL IMPACTS:
The recommended actions would amend the fiscal year 2025/26 CIP Budget as follows:
Measure T - The proposed amendments will result in no net change to the Measure T Fund Balance:
• Deobligate remaining Measure T funds of $122,377.44 from Coombsville Pascal East End (33ST22PW08)
• Update Coombsville Pascal East End (33ST22PW08)’s fiscal year 2025/26 Project status to “Not Moving Forward”
• Obligate $122,377.44 of Measure T funds to Coombsville Rehab 3rd -Pascal (33ST22PW04).
Measure G and Measure U - The proposed amendments will result in no net change in either the Measure G or Measure U Fund Balance:
• Deobligate $700,000 of Measure U funding from Westwood Rehab Interior (33ST22PW05)
• Deobligate $800,000 of Measure G funding from Westwood Rehab Interior (33ST22PW05)
• Obligate $700,000 of Measure U Fund Balance to City/County Joint Project - Pueblo Area (33ST26PW06)
• Obligate $800,000 of Measure G Fund Balance to City/County Joint Project - Pueblo Area (33ST26PW06)
General Fund CIP - The proposed amendments will result in $2,565,000 impact to the General Fund CIP Fund Balance. The fund includes sufficient balance for this action.
• Add one new project, Parking Structure Maintenance (33MS26CD02), to the fiscal year 2025/26 CIP.
• Obligate $2,500,000 of General Fund CIP reserves to Parking Structure Maintenance (33MS26CD02).
• Obligate $65,000 General Fund Reserves Obligate to Klamath Park Improvement Project (33PK27PR01).
Alston Park Trust Fund - The proposed amendments will result in a $125,209 impact to the Alston Park Trust Fund. The fund includes sufficient balance for this action.
• Obligate $125,209 of Alston Park Trust Funds (23850200) to Alston Park Restroom Project (33PK18PR02)
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 - Council Budget Amendment No. 6P5
NOTIFICATION:
None.