To: Honorable Mayor and Members of City Council
From: Julie Lucido, Public Works Director
Prepared By: Heather Maloney, Administrative Services Manager and Ian Heid, Senior Civil Engineer
TITLE:
Title
FY23 Capital Improvement Program Amendment
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending the Capital Improvement Project Plan as documented in Council Budget Amendment No. 12P12.
Body
DISCUSSION:
The City adopts a 5-year Capital Improvement Plan (CIP) to plan and program 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.
The FY24 and FY25 CIP Budgets, along with the 5-year CIP Plan are being presented today and again on June 20, 2023 for adoption. Six changes are necessary for the current year, FY23, CIP budget.
The first change is to accelerate the funding approval for the Silverado-Third-Coombsville-East (5-Way) Intersection Project. The funding allocation was originally planned for programming in FY24 (to be available beginning July 1, 2023), however, a project cooperation agreement with Caltrans to complete the environmental review and engineering design is being presented today for City Council approval. The funding that had been included within the FY24 budget needs to be approved at the same time as the proposed cooperation agreement and therefore is being proposed for this budget amendment for the current fiscal year, FY 23.
The FY24 and FY25 CIP Budgets will allocate additional funding to CIP projects, but the CIP budget documents are not set up to remove funding from specific projects. The remaining five proposed changes will reduce the funding allocated to specific projects. The funding is no longer recommended on each of these specific projects for the following reasons: 1) due to change in project scope, 2) cost savings, or 3) insufficient revenues within the Linda Vista Development Impact Fee Fund.
The following FY23 CIP Project budget revisions are proposed:
1. Silverado-Third-Coombsville-East (5-Way) Intersection Project (ST14PW04): obligation of $850,000 of DIF Street Improvement Funding is needed this fiscal year, as described above, to provide sufficient available funding for the proposed Cooperative Agreement with the California Department of Transportation (also being considered as a separate item on this agenda).
2. Police & Fire Admin Building HVAC Chiller Project (FC20PW03): deobligate $600,000 of General Fund Facility Reserves funding. With detailed design and bidding work completed on this project, the projected costs increased by over $1 million dollars to a cost of at least $3 million for the HVAC replacement. Staff, in consultation with the City’s HVAC contractor, have determined that the life of the system can be prolonged by repairing and replacing individual units within the system instead of a full replacement at this time. Due to the age and poor condition of the Police Building, a longer-term, more comprehensive solution is required for the building and the investment of $3 million for the system replacement at this stage is not recommended when the option for increased service and more limited repairs is possible. The remaining available project budget of approximately $960,000 ($750,000 of which is ARPA Funding) will be used to fund increased resources for ongoing repairs and maintenance for the HVAC system. Ongoing repairs and maintenance work will include replacing 22 units currently at or rapidly approaching the end of their life, replacing 2 to 4 additional units annually, and initiating an annual service contract for the ongoing maintenance of the remaining units.
3. CSB Electrical System Evaluation and Repairs Project (FC22PW05): deobligate $100,000 of General Fund Facility Reserves funding. The scope of work identified in a recent electrical system evaluation can be delivered by City crews, thereby reducing project costs.
4. Senior Center Pedestrian Bridge Repair Project (FC22PW07): deobligate $50,000 of General Fund Facility Reserves funding. Based on recent bid prices, the remaining estimated project costs are $50,000 less than the available project budget.
5. Trower Ave Widening-Young Ave to Linda Vista Ave Project (ST14PW05): deobligate $360,000 of Linda Vista Development Impact Fees (DIF) funding. At this time, sufficient revenues have not realized in this fund, therefore deobligating a portion of the project funding is required. This project continues to proceed with design and property acquisition. Based on current estimates, the remaining project funding is expected to be sufficient to complete the project.
6. Linda Vista Ave Widening-E Side-Redwood to Trower Project (ST18PW01): deobligate $1,500,000 of Linda Vista Development Impact Fees (DIF) funding. Sufficient revenues have not realized in this fund to cover the proposed project costs, therefore deobligating project funding is required. This project will not move forward at this time due to lack of funding.
FINANCIAL IMPACTS:
The proposed 5-Year Capital Improvement Program plan for FY 2022-23 amendments will:
Return a total of $750,000 to the General Fund Facilities Reserve; the resulting fund balance is programmed in FY24 as part of the proposed 5-year CIP Project budgets.
Return $1.86M to the Linda Vista Residential DIF Fund balance in order to balance this fund’s projected fund balance. Following the deobligation of funding the fund’s estimated year-end fund balance is approximately $13,000.
The $850,000 of DIF Street Improvement funding being utilized for the ST14PW04 will be transferred from the DIF Street Improvement Fund Balance (current estimated FY23 year-end fund balance is approximately $1.0M, with $150,000 remaining following the proposed transfer).
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. 12P12
NOTIFICATION:
None.