Fremont City Council Meeting: 03/14/23 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Public Projects
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4811) DOC ID: 4811
Updated: 3/10/2023 9:08 AM by Alberto Quintanilla 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: Tiffany Curotto Hans Larsen
Title: Management Analyst II Public Works Director
Div/Dept: Public Works Public Works
Phone: 510-494-4548 510-494-4722
E-Mail: [email protected] [email protected]
Executive Summary The purpose of this report is to facilitate administrative adjustments to the City’s Capital Budget by: (1) returning unused appropriations to their respective funds; (2) transferring unused appropriations to existing projects; and (3) exchanging the source of project funding for some items. The recommended actions include “closing out” 19 completed projects.
BACKGROUND: The City’s current 5-Year CIP and Capital Budget was approved by the City Council in June 2021 and includes investments in the amount of approximately $189 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.
Additionally, staff is proposing a fund cleanup of Alameda County Transportation Commission (ACTC) Measure B funds. On March 31, 2022, the Measure B one-half sales tax expired. An allocation commitment of approximately $3.3 million dollars remains in Measure B Funds 518 and 519 for Bikes/Pedestrians and Local Streets/Roads and is proposed to be transferred to the Measure BB Funds 515 and 520 respectively.
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 and return unused funds to available fund balance for appropriation in the Council Staff Report (ID # 4811) Meeting of March 14, 2023 Updated: 3/10/2023 9:08 AM by Alberto Quintanilla Page 2 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 19 completed projects.
Project Defund and Reallocation of Funds
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.
In addition, a reduction in private development activity in Fremont has resulted in lower projected development impact fee revenues in the amount of $13.6 million. For the current budget, numerous projects (identified on Exhibit B) are being partially defunded at this time. The future status of these projects will be reevaluated as part of the comprehensive CIP to be presented to Council in May 2023.
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 close out 19 projects and return $1.7 million to fund balance. In addition, 18 projects are recommended to be defunded, in a total amount of $14.9 million, of which $13.6 million will be returned to balance funds impacted by the decrease in revenue from development impact fees and $1.3 million will be returned to fund balance. Monies returned to fund balance will be redistributed to previously approved projects in need of funding augmentation as presented on Exhibit C and / or will be made available for future programming.
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 - 2023
• Exhibit B - Project Defund List - 2023
• Exhibit C- Project Appropriations - 2023
RECOMMENDATIONS:
1. Find the action is exempt from the California Environmental Quality Act (CEQA) because it constitutes administrative fiscal activity, which is not a project under CEQA Guidelines section 15378.
2. Approve the closeout of the capital projects identified on Exhibit A - Project Closeout Council Staff Report (ID # 4811) Meeting of March 14, 2023 Updated: 3/10/2023 9:08 AM by Alberto Quintanilla Page 3 List and return the remaining project appropriations to available fund balance in their respective funds.
3. 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.
4. Approve appropriation actions identified on Exhibit C - Project Appropriation List.
5. Approve the transfer of existing appropriations in Measure B Funds 518 and 519 to the Measure BB Funds 515 and 520 respectively.