Agenda Item No: N.2
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 202 6-44 PW Budget Adjustment for the Parks Capital Projects and Streets Capital Projects Funds
Authorizing an Update to the Fiscal Year 2025 -2026 Parks Capital Projects and Streets Capital Projects Budgets for Professional Engineering and Project Management Services
Funding Source: $75,000; AB 1600 Fund
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Public Works Department is requesting an update to the fiscal year (FY) 2025 -2026 Parks Capital Projects and Streets Capital Projects budgets, increasing appropriations by $ 75,000 to cover the cost of professional engineering and project management services from Ponticello Enterprises Consulting Engineers Inc. (Ponticello).
DISCUSSION
The Public Works Department , Engineering Division (Division) provides project management, traffic engineering, inspections services, construction administration, utility coordination, and capital improvement program (CIP) delivery services, including the planning, design, and implementation of roadway, park, and infrastructure improvements throu ghout the city. The Department also supports development review, prepares technical specifications and standards, administers assessment districts, and coordinates with regional agencies, utility providers, and developers to deliver critical infrastructure projects.
Due to the current volume and complexity of active capital improvement projects and development-related assignments, the Division requires additional support to maintain project schedules and meet regulatory and operational deadlines. Existing staff resources are currently
fully allocated to high -priority CIP projects, development review activities, and ongoing operational responsibilities.
Compounding this challenge, the Division is currently experiencing vacancies in two critical positions that have remained unfilled since fall 2025. Despite ongoing recruitment efforts, the Division has faced persistent difficulty in attracting and retaining qualified candidates due to the highly competitive labor market for experienced engineering profession als, particularly those with expertise in municipal project delivery and construction management. As a result, these vacancies have significantly reduced the Division’s operational capacity and have required the redistribution of workload among existing st aff, further constraining the ability to take on additional assignments.
As a result, staff does not have the capacity to absorb additional specialized assignments that have emerged or expanded beyond the scope of the adopted FY 2025 -2026 budget, including time impact analysis related to construction contract delays and evaluation of potential contractor claims, preparation and finalization of technical specifications (such as micro trenching and broadband standards), assessment district fund admin istration, and coordination of utility, water treatment, and pavement rehabilitation projects. To address these needs and maintain project delivery, the Division wishes to retain the services of Ponticello to provide professional engineering and project management support.
Ponticello was established in 1998 and specializes in providing services for public entities including a wide range of municipal engineering, project management, construction management, and development services. Ponticello has provided services for the City since approximately 2020 and has partnered with the Public Works Department on various projects such as the support on citywide pavement, park capital, and utility improvement projects.
Public Works is requesting an update to the FY 2025-2026 Parks Capital Projects and Streets Capital Projects budgets , increasing appropriations by $ 37,500 in each fund ($ 75,000 total), which will be financed using available AB 1600 funds, to cover the cost of professional engineering and project management services from Ponticello.
FINANCIAL IMPACT
The total authorization is for a one -time budget adjustment of $ 37,500 from AB 1600 – Parks (Fund 263) increasing appropriations in the FY 2025 -2026 Parks Capital Projects budget (Fund 251) and a one-time budget adjustment of $37,500 from AB 1600 – Streets (Fund 261) increasing appropriations in the FY 2025-2026 Streets Capital Projects budget (Fund 252).
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City Council may choose not to approve the budget adjustment or direct staff to return with more information.
COORDINATED WITH
Finance Department
STAFF CONTACT
Ryan Panganiban, Assistant Public Works Director and City Engineer (707) 428-7017
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution