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 2026/27
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the FY2025/26 & FY2026/27 Capital Improvement Project Plan.
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 and priorities. While capital projects are typically budgeted as 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 last 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 delay, amend, or close out completed projects outside of the budget process.
Several projects have completed construction and there are no further work or expenditures. Staff recommends updating the project list for FY2026/27 from “Active” to “Completed” to allow Finance to complete their project closeout process and return any available balances to the respective Enterprise Fund Capital Improvement Funds to be allocated to current projects under design:
Update Status from “Active” to “Complete”:
• 61MD22UT04 - MDF Concrete Pad Partial Replacement
• 61MD24UT10 - MDF Stormwater Improvements
• 61MD25UT02 - MDF Recycled Water Connection
• 61MD25UT03 - MDF Stormwater Mitigation Improvements (Phase 1)
• 61MD26UT06 - MDF Raising Height of Compost Retention Pond
• 63WA20UT01 - Water Works Asset Mgmt
• 63WD24UT14 - East Ave Water Main Replacements
• 63WD24UTHV - Hydrant & Valve Rehab & Replacement
• 63WD25UTHV - Hydrant & Valve Rehab & Replacement
• 63WD25UTMT - Meter Replacement & ERT Upgrade Program
• 63WD26UT01 - Westwood Area Water Main Rehab & Replacement
• 63WS26UT02 - Milliken Dam Tower Valve Replacement/Rehab
• 63WT20UT01 - CIPP Pipeline Improvements (Sheehy Ct-NVTA)
Other projects either delayed or not moving forward will be reprogrammed in a future 5-year CIP plan.
Update Status from “Active” to “Not Moving Forward”:
• 63WD22UT13 - Old Sonoma Rd Pressure Regulating Station
• 63WT24UT08 - Access Rd for 36-in Transmission Main
FINANCIAL IMPACTS:
The recommended action allows for any remaining project budget amounts to return to Enterprise Capital Improvement Fund Balances. Pending Finance’s Year-End and project close out processes, an estimated amount of $400,000 will return to Solid Waste Enterprise Capital Improvement Fund 511; and approximately $1.3M will return to Water Enterprise Capital Improvement Fund 531, respectively, to reprogram for future project needs.
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
NOTIFICATION:
None.