Fremont City Council Meeting: 03/01/22 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Public Projects
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4548) DOC ID: 4548
Updated: 2/23/2022 4:30 PM by Susan Gauthier Page 1
CAPITAL PROJECT CLOSEOUTS - Approve the Closeout of Completed Capital Projects and Partial Defunding of Selected Projects; and Approval of Fund Transfers and Appropriations
Contact Persons:
Name: Michelle Silva-Salinas Hans Larsen
Title: Business Manager Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-979-5705 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this staff report is to facilitate administrative adjustments to the City’s Capital Budget that consist of: returning unused appropriations to their respective funds; transferring unused appropriations to existing projects; and exchanging the source of project funding. The recommended actions include “closing out” funding accounts for 21 completed projects.
BACKGROUND: The City’s current 5-Year CIP and Capital Budget was approved in June 2021 and includes investments in the amount of approximately $199 million for the repair and improvement of the City’s parks, buildings and transportation system. The City currently manages over 200 capital projects in various stages of development that have received an appropriation of funds by the City Council. The majority of these projects are successfully managed by staff through project completion consistent with initial budget appropriation amounts. Staff also pursues funds from internal and outside sources whenever possible to either wholly fund or offset City project expenses.
Typically, during the mid-year timeframe, staff identifies various administrative adjustments to the Capital Budget for City Council approval to allow for: closing out completed projects; adapting to changing circumstances; and enabling the most effective use of funds.
DISCUSSION/ANALYSIS: The following describes various funding actions recommended in this staff report.
Project Closeouts
Upon completion of right-of-way acquisition, construction and other related activities, some capital projects have remaining budget appropriations. Historically, projects with over- expended balances are offset against projects with under-expended balances within the fund, and all are closed simultaneously. Staff periodically requests City Council approval to close projects, return unused funds to available fund balance for appropriation in the next Capital Budget cycle, return to granting agencies, or appropriate to active capital projects as reflected on the Project Closeout List (Exhibit A). The Project Closeout List includes 21 completed projects.
Project Defund and Reallocation of Funds
Staff Report (ID # 4548) Meeting of March 1, 2022
Updated: 2/23/2022 4:30 PM by Susan Gauthier Page 2
Staff has identified some active or ongoing projects with remaining appropriations that are in excess of current project needs or where it is beneficial to fund the project with another source of funding as shown on the Defund List (Exhibit B). The funds then are either made available for appropriation in the next Capital Budget cycle, returned to granting agencies, or appropriated to active capital projects.
Project Appropriations
As funds become available through project closeout and defunding, or from new funding allocations, eligible projects are identified to receive funds. Recommended appropriations include active projects receiving budget augmentation for project completion or continuation of existing programs and reallocation of funding sources. A list of project appropriation actions is included in Exhibit C.
FISCAL IMPACT: The recommended actions will return to fund balance approximately $4.61 million from project appropriations where funds are no longer needed and either redistribute them to previously approved projects in need of funding augmentation ($4.06 million) or make them available for future programming ($0.55 million).
ENVIRONMENTAL REVIEW: The recommended actions are exempt from the California Environmental Quality Act (CEQA) because they are an administrative fiscal activity and not projects pursuant to CEQA Guidelines section 15378.
ATTACHMENTS:
• Exhibit A - Project Closeout List
• Exhibit B - Defund/Reallocate List
• Exhibit C - Project Appropriations List
RECOMMENDATIONS:
1. Approve the closeout of the capital projects identified on Exhibit A - Project Closeout List and return the remaining project appropriations to available fund balance in their respective funds.
2. Approve the defunding of the capital projects identified on Exhibit B - Project Defund List and return the remaining project appropriations to available fund balance in their respective funds.
3. Approve appropriation actions identified on Exhibit C - Project Appropriations List.