Fiscal Year 2026-27
City Council Study Session
March 31, 2026
Proposed Capital Improvement
Program (CIP) Budget
2 Public Works Staffing & Divisions
The Public Works Department has 79 full-time staff members composed of five management, four clerical, and 70 professional / technical staff spread across five divisions. In addition, Public Works has part time staff equivalent to 6 full-time positions.
Administration • Water Quality
• Streets and
Parkway
Improvements
• Storm Drain
Improvements
• Development
• Real Property
• Park
Development
• Construction
Management
• Active
Transportation
• Traffic Operations
• Transportation
Planning
• Residential Permit
Parking
• Street Cleaning
• Graffiti Abatement
• Street Maintenance
• Storm Drain
Maintenance
• Signs and Marking
• Park, Parkway, and
Median
Maintenance
Administration
General
ServicesEngineering
Transportation
Services
Maintenance
Services
• Facility
Maintenance
• Fleet
Maintenance
• Recycling and
Solid Waste
• Warehouse
Operations
````
3 The CIP Process
4 CIP Budget
• Financed from multiple funding sources
• Can include Federal, State, County,
and local funds
• Funding sources may have different
restrictions regarding eligible
projects, record retention schedules,
and reporting
• Often involve multiple levels of
governmental oversight, coordination,
approval, and auditing
• Requires coordination from all City
departments, City Attorney’s Office, and
related grantors
• CIP Project Financial Threshold in Costa
Mesa: $30,000
5 CIP Projects
• Project identification/idea is developed
• Design phase
• Bidding phase
• Contract selection and award
• Construction phase
• Project completion
• Ongoing maintenance and repair
A multi-year program
Identifies the next round of
project priorities
Projects typically not completed in one
year
Projects undergo seven (7) distinct phases over
multiple years:
6 CIP Recognition
CIP programs encompass
both current year (ongoing
projects) and proposed
future year projects.
City staff are dedicated to
producing a high-quality CIP
program and projects.
Staff has won numerous
awards for CIP projects.
````
7 Current (FY 2025
-
26) CIP
Accomplishments
8 • Citywide project consisting of concrete
sidewalk, curb & gutter, and access ramp
improvements, along with grind & overlay
street reconstruction, and street slurry
sealing.
• Improvements included Mesa Verde,
College Park, and other neighborhoods.
• Effort to reach and maintain City Council’s
goal to have a PCI index of at least 85.
FY
25/26
Citywide Street Improvements
Yellowstone Drive
9 Police Department Carpet & Indoor Paint
FY
25/26
• New floors throughout the building, including
basement.
• Project included sanding, priming, repairing, and
painting all interior surfaces, along with repainting
the back exterior and roll-up doors.
• Floor Replacement Project completed October 2025.
• Interior Repaint Project completed July 2025.
10 FY
25/26
Norma Hertzog Roof Replacement
• Expected completion by May
2026.
• Removed all metal panels to
address leaks.
• Removed flat roofing and
replaced with new system
for improved drainage.
• New self-adhering high-
temperature roofing
underlayment installed for
waterproofing.
11 • Original playground equipment was
installed in 1995.
• Prior to construction, there was single
play structure and volleyball court.
• Once complete, playground will consist
of two separate age-appropriate play
areas.
• Four slides and seven climbing
components.
• New picnic shade structure.
• New LED park lighting and ADA access.
• Installed sidewalk poetry.
FY
25/26
Brentwood Park Improvements
12 FY
25/26
Fairview Road Improvement
(Fair Dr. to Newport Blvd.)
• Constructed active transportation improvements
along Fairview Road between Fair Drive and
Newport Boulevard.
• Construction completion by June 2026.
• Project includes:
Class IV Cycle Tracks
New HAWK signal at Fairview Rd./Valley
Forge (May 2026)
Green bicycle conflict zone striping
High visibility pedestrian crossings
Transit stop improvements
New bicycle signal at Fairview Rd./Wilson St.
New landscaping and irrigation
13 FY
25/26
Design of Various Projects Completed
• Fire Station No. 2
• Costa Mesa Skate Park Expansion
• Ketchum-Libolt Park Expansion
• Shalimar Park Improvements
• Signal Modern Multi Modal Safety Improvements
````
14 Current (FY 2025
-
26) CIP
Update
15 FY 2025-26 Budget
• Staff requested a partial waiver of the Capital Asset Needs (CAN) Ordinance to address the FY 2024-25
and FY 2025-26 revenue shortfall.
• For FY 2024-25, approximately $2.4 million in
previously allocated capital projects were deferred.
• In FY 2025-26, the amount allocated to new CIP
projects was reduced by $1.2 million.
16 Deferred Projects List
No. Project Name Deferred Amount Notes
1 Finance Security/Effic. Remodel $ 250,000 Sufficient funding in project account 2 Citywide Community Choice Energy Study $ 150,000 Project not considered at this time 3 City Hall Breezeway Roof $ 245,000 Moved to FY 27-28 4 Westside Restoration Project $ 450,000 Moved to FY 27-28 5 Parkway Maintenance Program Citywide $ 233,757 Replaced funding source 6 Costa Mesa Country Club Modernization $ 400,000 Moved to long-term future 7 Butterfly Gardens $ 100,000 Moved to FY 28-29 8 Senior Center Improvements $ 250,000 Received Federal grant Savings from Completed Projects $ 300,000 N/A TOTAL $ 2,378,757
17 Major Projects Underway/Scheduled*
Major projects include:
• Adams Avenue Bicycle Facility Project
• Citywide Alley Improvements
• Citywide Street Improvements
• Citywide Tree Maintenance
• Communications Building Improvements
• Costa Mesa Country Club Modernization
• Costa Mesa Skate Park Expansion
• Fairview Park Fence Sign Trail
• Fairview Road Improvement Project
• Fire Station #2 Reconstruction
• Ketchum-Libolt Park Expansion
• Mesa Del Mar Multimodal Access
• Shalimar Park Improvements
• Newport Boulevard Frontage Road Rehab.
• Senior Center HVAC and Roof Replacement
• Sunflower Avenue Rehabilitation
• TeWinkle Lakes Rehab and Repair Project
• Westside Substation Improvements
*Full listing of ongoing projects in Attachment 1 of Staff Report. ````
18 FY 2026
-
27 Proposed CIP Projects
19 CIP Overview
• Projects were identified based on:
• City Council Priorities, Goals, and Objectives
• Commissions, committee, and community feedback
• Citywide infrastructure and facility needs assessments • Department requests
• Budgetary constraints
• The CIP includes General Fund allocation to meet
minimum Maintenance of Effort (MOE) for Gas Tax and
Measure M2.
20 Quick Facts
Projects recommended
Total CIP amount
Future Bond/Financing
21 Funding Sources
Primary funding sources for Proposed FY 2026-27 CIP include:
22 Fiscal Year 2026-27 Proposed CIP Projects
23 Fiscal Year 2026-27 Proposed CIP Projects
(continued)
24 CIP Categories
Facilities
$16,359,000
49.0%
Parks
$1,630,000
4.9%
Streets
$8,815,000
26.3%
Transportation
$6,596,920
19.8%
Significant portion of this is $12
million bond financing for the Fire
Station 2 reconstruction
Primarily funded by grants or
restricted funds
````
25 FY 2026
-
27 Projects
26 Citywide Alley Improvements
$200K
Gas Tax
FY
26/27
• Annual citywide project to improve the City’s public
alleys from asphalt to concrete pavement that will last for many years.
• Alley improvements are throughout the City based on
condition and priority.
• Multi-year project. Nearing the last phase.
• Remaining 14 alleyways will be designed in FY 26/27.
27 Police Department Chiller Replacement
$800K
CIP Fund
FY
26/27
• Original PD chillers are more 50 years old and
need replacement.
• New chillers more energy efficient than
current model.
• Staff will pursue grant funding opportunities
with SoCalRen.
28 Police Department Emergency
Communications Center
$1.1M
CIP Fund
FY
26/27
• Complete renovation of the Police
Department Communications facility.
• Upgrades will also include new thermal
and moisture protection, fire suppression,
plumbing, HVAC, roof replacement,
electrical and communication
infrastructure.
• Total estimated project cost - $4 million.
29 Citywide Tree Maintenance
(in Public Right-of-Way)
$200K
Gas Tax
FY
26/27
• Provides enhanced maintenance
to median and parkway trees that
are susceptible to the effect of
recent unprecedented weather
events.
• Plant new trees in medians and
parkways.
30 Harper Park Playground Improvements
FY
26/27
Project updates including a
complete redesign of the park
layout, including:
• Removal of existing equipment
and installation of modernized
playground area and
equipment.
• Replacement of safety
surfacing.
• Removal and replacement of
tables, benches, and trash
receptacles.
$400K
CIP Fund
31 Moon Park Improvements
FY
26/27
Phase 1 – Conceptual Design and Community
Outreach and Coordination with other
Agencies. Project will include a redesign of
the park and replacement of the existing
playground including:
• Review of the park layout
• Removal of existing equipment and
installation of modernized playground
area and equipment.
• Replacement safety surfacing
• Addition of safety fencing
• Bike trail access improvements
• Lighting Improvements
• Replacement of park amenities such as
benches, tables, drinking fountain and
receptacles
$50K
CIP Fund
32 FY
26/27
• Construction of new and improved features designed by Spohn Ranch, a renowned skate park designer.
• Installation of a new pump track.
• Funded through Orange County Board of Supervisor Katrina Foley. • Available funding from prior years.
Costa Mesa Skate Park Expansion
$500K
CIP Fund
FY
26/27
33 Adams Avenue Multipurpose Trail
$2.77M
Grant Funds
FY
26/27
• Project on Adams Avenue
between Royal Palm Drive and
Santa Ana River.
• Enhances accessibility and safety
for bicyclists and pedestrians by
providing separation from
vehicles.
• City received competitive federal
grant for construction.
• Improvements consistent with
the City's General Plan and the
Active Transportation Plan.
34 Mesa Del Mar Multimodal Access
$350K
Grant Funds
FY
26/27
• Safety and mobility improvements along
Junipero Drive from Presidio Drive to
Arlington Drive.
• Project includes parking protected cycle
tracks, green bicycle conflict zone
striping, new sidewalks, and
accessibility improvements.
• New raised intersection at Arlington
Drive and Junipero Drive.
• Pavement rehabilitation.
• Design will begin Winter 2026.
35 Finance & Pension Advisory Committee
(FiPAC) Recommendation
• Public Works staff presented to FiPAC on March 11,
2026.
• Committee appreciated all the information
provided and expressed interest in holding a follow-
up meeting to develop a final recommendation to
City Council.
36 Parks and Community Services (PACS)
Commission Recommendation
• One-Year and Five-Year CIP pertaining to Parks presented to PACS on March 12 • The Commission recommended the following for City Council consideration:
Marina View Park – For Fiscal Year 2026-27 add sand in areas where the levels are low and address sidewalk improvements.
Wilson Park – For Fiscal Year 2026-27 address improvements identified in the Park Assessment Study for bathrooms.
Community Gardens – Add $50,000 for Fiscal Year 2027-28 for planning for Community Gardens and consider Neth Park as potential site in a multi- faceted way.
Westside Park Development – Add $400,000 for Fiscal Year 2027-28. Fairview Park and Skate Park Project – Consider ways to cut back on projects and evaluate/pursue private funding.
Revise the Five-Year CIP to include only parks in the “C” category. ````
37 Additional Information
38 Five-Year CIP (FY 2026-27 to FY 2030-31)
• Five-Year plan includes projects deferred and those proposed in upcoming fiscal years.
• Attachment 4 includes proposed Five-Year CIP .
• Five-Year plan is updated annually based on Goals and Priorities by City Council, input from commissions, committees and community, and best practices.
• Projects listed from Years 2-5 and Future are for planning purposes and grant opportunities.
• Facilities Assessment and Park Assessment Studies were used to identify future projects.
39 FY 2026-27 Five-Year CIP vs. Proposed
PROJECT NAME Five-Year CIP Proposed CIP
Building Modification Projects $200,000 $250,000
Civic Center - Miscellaneous Repairs $150,000 $150,000
Corp Yard - Equipment Maintenance - Bay Doors and Vehicle Hoist Replace $110,000 - Corp Yard - Vehicle Hoist - $250,000
Fire Stations - Minor Projects at Various Fire Stations $150,000 $150,000 Sewer Line Improvement for City Facilities $50,000 -
Citywide Tree Maintenance (in Public Right-of-Way) $200,000 $200,000 Fairview Park - Replace Service Road Asphalt $200,000 - Park Parking Lot and Playground Rehabilitation $150,000 $100,000 Park Security Lighting Replacement $100,000 $150,000
Park Sidewalk Replacement $75,000 $50,000
Shalimar Park Expansion $350,000 -
Skate Park Parking Lot and Parking Spaces Expansion $40,000 - Tree Planting and Small Tree Care $150,000 -
Citywide Alley Improvements $650,000 $200,000
Citywide Street Improvements $5,000,000 $5,450,000
Citywide Street Sign Replacement $50,000 -
Parkway & Medians Improvement Program $200,000 $200,000 Adams Avenue Active Transportation Improvements - Multipurpose Trails $4,777,000 $2,777,000 Bicycle and Pedestrian Infrastructure Improvements $250,000 $250,000 Center Street Pedestrian Crossing and Circulation Improvements $500,000 $500,000 Citywide Neighborhood Traffic Improvements $100,000 $75,000 Citywide Traffic Signal Improvements $150,000 $200,000
Clean Mobility Options Program - On-Demand Transit Services $800,000 $650,000 Junipero Drive Improvements/Mesa Del Mar Multimodal Access $500,000 $349,920 New Sidewalk/Missing Link Program $100,000 $100,000
Priority Sidewalk Repair $65,000 $65,000
Total $15,067,000 $12,116,920
40 CAN Repayment Schedule
• For Fiscal Year 2026-27, while the proposed funding meets the 5 percent minimum contribution required by the CAN Ordinance, it does not account for repayment of the prior waivers.
• It is anticipated that an additional General Fund contribution of $600,000 is required for CAN repayment for Fiscal Year 2026-27.
Deferred Allocation Total Deferment Year 1
FY 2024-25 Projects 2,378,757.00$ 475,751.40$ FY 2025-26 CAN 1,249,855.30$ 124,985.53$ Total 3,628,612.30$ 600,736.93$
41 Next Steps
• The FY 2026-27 Proposed Operating and CIP budget must be adopted by June 30, 2026.
• The proposed CIP recommendation provides $33.4 million from multiple funding sources to improve City infrastructure in all key areas. • In addition to the new Proposed CIP , there are 86 ongoing CIP projects, totaling approximately $88 million.
• Staff requests the City Council provide general direction during the Study Session on the FY 2026-27 Proposed CIP Budget and the Five-Year (FY 2026-27 to FY 2030-31) CIP .
42 FY 2026-27 Tentative Budget Calendar
FY 2026-27 Proposed CIP Budget Review
Finance and
Pension Advisory
Committee
March 11, 2026
FY 2026-27 Proposed CIP Budget Review
Parks and
Community
Services
Commission
March 12, 2026
FY 2026-27 Proposed CIP Budget Study Session City Council March 31, 2026 FY 2026-27 Operating Budget Review
Finance and
Pension Advisory
Committee
April 8, 2026
FY 2026-27 Proposed CIP Budget Review Planning
Commission May 11, 2026
FY 2026-27 Proposed Operating Budget Study Session City Council May 12, 2026 FY 2026-27 Proposed Operating and CIP Budget Public Hearing City Council June 2, 2026 FY 2026-27 Proposed Operating and CIP Budget Special Meeting/Study Session #2 (if necessary) City Council June 9, 2026
FY 2026-27 Proposed Budget Adoption (if necessary) City Council June 16, 2026