Fremont City Council Meeting: 03/14/23 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Presentations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4830) DOC ID: 4830
Updated: 3/10/2023 9:13 AM by Alberto Quintanilla Page 1 CAPITAL IMPROVEMENT PROGRAM – Receive Presentation and Provide Input to Staff on the Preparation of the City’s Five-Year Capital Improvement Program (CIP) for Fiscal Years 2023/24 through 2027/28.
Contact Persons:
Name: Hans Larsen Suzanne Wolf
Title: Public Works Director Community Services Director Div/Dept: Public Works Recreation Services
Phone: 510-494-4722 510-494-4329
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to inform the City Council about the preparation of the City’s five-year CIP and to receive input from Council. A draft CIP is proposed to be brought back to the City Council on May 16, 2023 for review and comment.
Adoption of the CIP is planned for June 2023.
BACKGROUND: The City’s Capital Improvement Program addresses the City’s infrastructure needs and investments, primarily in the areas of Transportation, Parks, Capital Maintenance (streets and buildings), and General Government. The CIP includes a five-year program of planned investments, with the first two years representing a two-year Capital Budget. The CIP is updated every two years. The City’s current CIP includes investments totaling $189 million over five years.
DISCUSSION/ANALYSIS: At the City Council meeting, staff will present an introduction to the Capital Improvement Program (CIP), including fund sources, projected revenue, and a review of current projects and programs.
Preliminary revenue estimates for the new CIP cycle are projected to be higher than the current CIP due to a combination of factors including increases in State Gas Tax and Alameda County Transportation Commission revenue. These increases will help offset rising construction costs and diminishing grant revenues from regional, state, and federal sources.
Revenues related to development impact fees are down and projects that support parks and transportation will be impacted by a revenue loss of over $13 million.
The General Fund makes annual transfers to the CIP program to support ongoing maintenance and capital replacement programs for streets and sidewalks, parks, and public buildings. These annual transfers total $7 million in FY 2022/23. In addition, the General Fund operating budget may include funding for specific CIP projects.
On occasion, the City Council may approve transfers of unanticipated general revenue or expenditure savings from the General Fund to provide a source of funding for future CIP projects or to augment previously approved projects. It is noted that current and future needs for City infrastructure have been estimated to be approximately $1 billion.
Staff recommends that the City Council provide input on the proposed project funding under the CIP, which staff prepared with the intent to align expenditures to City infrastructure Council Staff Report (ID # 4830) Meeting of March 14, 2023 Updated: 3/10/2023 9:13 AM by Alberto Quintanilla Page 2 improvements needs. Subsequently, staff will prepare a draft five-year CIP for fiscal years 2023/24 through 2027/28 and a two-year Capital Budget for fiscal years 2023/24 and 2024/25. Staff anticipates returning to Council for review of the Draft CIP on May 16, 2023.
Public Hearings to consider adoption of the CIP are planned for June 6, 2023 (First Hearing) and June 13, 2023 (Second Hearing and Adoption).
FISCAL IMPACT: None
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: None.
RECOMMENDATION: Receive presentation and provide input to staff on the preparation of the City’s Five-Year Capital Improvement Program (CIP) for Fiscal Years 2023/24 through 2027/28, and find that the action is exempt from CEQA review per CEQA Guidelines section 15378.