Fremont City Council Meeting: 05/16/23 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Presentations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4906) DOC ID: 4906
Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 1
PROPOSED CAPITAL IMPROVEMENT PROGRAM - Receive Presentation and Provide Input on Proposed Five-Year Capital Improvement Program 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 Community Services
Phone: 510-494-4722 510-494-4329
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to update the City’s five-year Capital Improvement Program (CIP) for fiscal years (FY) 2023/24 through 2027/28. An initial discussion of the proposed CIP was included as part of the City Council meeting on March 14, 2023. A draft CIP has been prepared by staff for review and input by the City Council.
Adoption of the CIP is planned for consideration in June 2023. A copy of the Proposed CIP document is available on the City’s Financial Reports web page.
BACKGROUND: The scope of the City’s CIP is focused on investments to maintain and improve the City’s infrastructure related to Transportation, Parks, and Civic Facilities. The sources of funds that support the CIP include County and state transportation taxes; grants; City development impact fees; and allocations from the City General Fund. The City’s CIP is updated every two years and includes a two-year Capital Budget (FY 2023/24 and FY 2024/25) and, for planning purposes, a combined five-year Capital Improvement Program (FY 2023/24 through FY 2027/28).
On March 14, 2023, the City Council received a presentation about the preparation of the City’s five-year CIP. Staff reviewed current investments, program accomplishments, funding projections, and a large list of unfunded needs valued at approximately $1 billion.
Public comments were received expressing interest in median island landscaping and sidewalk improvements. The City Council provided general input to staff on the CIP program and was supportive of proposed investment priorities that aligned with “urgent priorities” to address aging building infrastructure, mandated projects related to vehicle electrification and public safety communications, and priority projects from the Parks and Recreation Master Plan, including replacing old park restrooms and building a new community center in Central Park to replace the aging Teen Center and Fremont Community Center.
Development of the City’s CIP is a multi-departmental effort with the Public Works Department serving as the lead for Transportation investments and overall CIP coordination under the direction of the City Manager’s Office. The Parks program is managed by the Community Services Department, with guidance from the Recreation Commission. The Finance Department and City Manager’s Office are the leads for proposed investments using City General Funds. All City Departments participate in proposing CIP projects that support their service responsibilities.
Council Staff Report (ID # 4906) Meeting of May 16, 2023 Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 2
DISCUSSION/ANALYSIS:
CIP Revenues
As reported at the March 2023 CIP work session, projected total revenues for the proposed 5-year CIP are estimated to be higher than the previous CIP approved in 2021. The proposed new CIP includes a five-year estimated project allocation of over $296 million; about 56% higher than the previous CIP which included project allocations of $189 million.
The higher revenue amount is primarily due to the following factors:
• A $10 million increase in General Fund transfers to the CIP for capital maintenance activities over the CIP cycle; $2 million per year for five years. This increase was approved by the City Council last year.
• A $27.5 million increase in proposed new General Fund transfers to the CIP for capital maintenance (pavement, buildings, parks, and street trees); $5.5 million per year for five years.
• One-time General Fund transfers to the CIP in the amount of $58 million, previou sly approved by the City Council.
• A projection of future revenue in the amount of $23 million for the Central Park Multi-Service Community Center project anticipated from state, federal, and/or private contribution sources, to provide full funding for a $58 million project.
It is noted that the CIP revenue estimates include a significant reduction in Development Impact Fees due to a decline in forecasted residential development activity compared to past CIP cycles. This proposed CIP incorporates reductions in Development Impact Fee revenue for projects that support Parks and Transportation and provides a plan for project delivery that aligns with anticipated revenue. In addition, revenues from transportation taxes (from sales tax and gas tax sources) are projected to be higher than past CIP cycles which were previously lower due to the influence of the COVID pandemic.
Proposed CIP Expenditures
The following report sections provide a summary of significant changes in the Proposed CIP from the past CIP with a focus on proposed new investments funded by the General Fund.
General Fund Annual Transfers to the CIP
The proposed CIP continues a $7 million annual transfer (a total of $35 million over five years) of funding from the General Fund for capital maintenance activities that was approved by the City Council as part of the FY 2022/23 operating budget. Also, a supplemental increase of $5.5 million in the annual transfer is proposed (increasing the annual transfer for capital maintenance facilities to $62.5 million over five years) to be allocated as follows:
• $2.5 million to pavement maintenance
• $2.0 million to building maintenance
• $0.9 million to capital replacement for parks
• $0.1 million to the street tree 50/50 program
Council Staff Report (ID # 4906) Meeting of May 16, 2023 Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 3
General Fund One-Time Transfers to the CIP
The most significant change in the Proposed CIP is the allocation of new one-time funding transferred from the General Fund to the CIP in the amount of $58 million based on past Council actions, and a new $2.1 million transfer. In summary, the use of these allocations is as follows:
• $21 million for the Central Park Multi-Service Community Center project as a City General Fund contribution to an overall $58 million project. Other secured and proposed funding sources include: $8 million from a State grant; $1 million from previously adopted CIP funds; $5 million from the Parks CIP; and $23 million in proposed future revenue from grants and private contributions.
• $15 million to replace 21 old restroom buildings in City parks.
• $8 million to replace old and outdated heating, ventilation and air conditioning (HVAC) systems in 11 City buildings with modern environmentally sustainable equipment.
• $5 million to provide electric vehicle charging infrastructure for City fleet vehicles to support the City’s climate action policies and comply with State mandates for transitioning to zero emission vehicles.
• $5 million to rehabilitate and replace aging building systems at City Hall includ ing the roof, fire alarms, and HVAC.
• $1.7 million for a new Fire Alerting System to align with new County standards for emergency communications.
• $1.65 million for a new Vehicle Evidence and Storage Building at the Police Center to meet standards for securing evidence from vehicle involved in crime investigations or traffic crashes. This closes a construction funding gap for a project previously approved by the City Council.
• $826,000 for the Central Park Synthetic Turf Replacement project to replace the aging turf at the dog park.
• $506,000 for Central Park Sports Lighting Transformer Replacement Project to replace aging infrastructure.
• $2.1 million as a one-time General Fund transfer to the existing Water Conservation and Median Upgrades program as a contribution for an overall $5.1 million project to landscape the median islands along Auto Mall Parkway. A request for a $3 million federal grant is currently under consideration for this project.
Transportation Investment Highlights
The proposed Transportation CIP includes projects (totaling $112 million) focused in the areas of: pavement and sidewalk maintenance; traffic operations and signal system improvement; bicycle and pedestrian facilities; and major projects. All of the projects are implemented in a manner consistent with the City’s policies related to traffic safety (Vision Council Staff Report (ID # 4906) Meeting of May 16, 2023 Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 4
Zero), complete streets (providing mobility equity for all travel modes, ages and abilities), and improving traffic flow. Provided below is a summary of proposed investments, funding levels and new projects:
• Basic Maintenance Projects – The highest level of funding in the Transportation CIP is allocated to ongoing annual projects to: repave City streets; repair sidewalks, curbs, and gutters in the worst condition; and build ADA curb ramps. The overall funding amount for basic maintenance is $74 million. In the next two years, work will be completed on a multi-year program to repair sidewalks in a severely damaged condition, where the sidewalk deflection exceeded 4 inches.
• Traffic Operations and Signal Projects – The proposed investments in traffic operations and signal projects include annual expenditures to maintain existing traffic signals (195 signals); maintain or expand fiber optic communication network within the roadway; modernize equipment for more efficient operations; construct new traffic signals at priority locations to improve safety and operation; and to respond to community interests and concerns related traffic operations. The overall funding amount for traffic operations and signal projects is approximately $20 million. Key traffic operation projects included in this CIP budget cycle include the development of reliable signal coordination timing along key north-south and east- west regional corridors (e.g., Paseo Padre Parkway, Fremont Boulevard, Decoto Road, Mowry Avenue, Stevenson Boulevard, Warm Springs Boulevard, Osgood Road, Auto Mall Parkway, Thornton Avenue, and Grimmer Boulevard) to manage traffic speeds and minimize the amount of red lights experienced by motorists, as well as the design and construction of a new Traffic Management Center at the City’s Development Center office to allow for enhanced monitoring and management of signal operations.
• Bike/Pedestrian Projects – The City receives dedicated funds from the County Measure BB program and State grants for improvements and expansion to the City’s bicycle and pedestrian facilities as identified in the City’s Bicycle and Pedestrian Master Plan, Vision Zero program, and Safe Routes to Schools program. The overall funding amount for the bike/ped projects is approximately $11 million. It is noted that other Transportation CIP programs and projects (e.g., complete street roadway projects) may also include bicycle and pedestrian facility elements that are in addition to these bike/ped projects.
• Major Projects – A portion of the City’s Transportation CIP is oriented toward major and regional projects. This includes the City’s support for upgrading the State Route 262 corridor and developing the new Irvington BART Station, projects led by Alameda CTC and BART respectively. Additionally, the City is leading the planning and design for modernizing freeway interchanges at 680/Mission and 880/Decoto, as well as developing new bridges for bicycling and walking over freeways at 680/Sabercat Trail and 880/Innovation District. Other major projects include three new regional trails: Dumbarton to Quarry Lakes, East Bay Greenway, and Niles Canyon Trail, and a complete street corridor project along Decoto Road. Work is also ongoing for the “Centerville Railroad Quiet Zone Corridor Project”. The overall amount of new funding for major projects in the proposed CIP is $6 million. A Council Staff Report (ID # 4906) Meeting of May 16, 2023 Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 5
notable grant-funded project included in the prior CIP is the Centerville Complete Streets Project, which is planned to be bid out for construction in Fall 2023.
Park Investment Highlights
The proposed Parks CIP includes project allocations (totaling approximately $20.9 million) focused in the areas of: continued funding for existing major projects underway; upgrades to play areas; expansion of trail and pedestrian facilities; and new pickleball court and dog park facilities. Projects are consistent with the previously adopted Parks and Recreation Master Plan adopted in March of 2022. The Recreation Commission considered proposed projects in three meetings during October and November of 2022, and January 2023.
During the Commission’s review, they considered projects consistent with the Parks and Recreation Master Plan.
This year the Recreation Commission addressed significant revenue shortfalls in the Parks Development Impact Fee program along with high inflationary pressures in the construction industry and throughout the economy. The primary focus is to address a shortfall of approximately $8 million in Park Impact Fee revenues, address shortfalls in existing project budgets due to construction cost inflation, and to address community demand for pickleball courts and dog parks. Several projects, such as Central Park Loop Trail/Parking Lot and Pacific Commons Sports Park (phase two), are scheduled for delay due to the $8 million shortfall, but these previously approved projects and priorities have not been eliminated.
On January 18, 2023 the Recreation Commission voted unanimously to forward the following proposed Parks CIP to the City Council for consideration. Significant themes in the proposed CIP include the following:
• Major Park Improvements – Much of this year’s capital investment is for continued support for on-going major park projects including, Centerville Community Park, Palm Avenue Community Park, and Rix Neighborhood Park Expansion. Proposed allocations in this CIP will complete funding for these projects.
• Investments in Pickleball Courts and Dog Parks – New pickleball courts and a dog park are proposed at Vallejo Mills Historic Park to address strong community demand for these facilities. In addition to Vallejo Mills, a new dog park is proposed for the park property at Ardenwood Blvd. and Paseo Padre Parkway and a large pickleball complex is planned for the first phase of Pacific Commons Sports Park.
• New Central Park Community Center – A significant contribution from Park Impact Fees is proposed for exterior improvements associated with the Community Center.
General Government / Public Facilities Investment Highlights The proposed General Government / Public Facilities CIP allocations total $39.6 million.
The largest amount of $23 million is programmed to collect contributions and grants in support of the new Central Park Community Center. Approximately $18 million is being accumulated from Development Impact Fees collected for new or expanded infrastructure to support City growth with funding to be used for Fire Department and Capital facilities. Of this $18 million, $5 million is allocated to pay debt on public facilities completed in the past, $10 million is programmed to support the development agreement for the Age Well Center in South Fremont, and $343K is allocated to purchase fire equipment and uniforms. The Council Staff Report (ID # 4906) Meeting of May 16, 2023 Updated: 5/12/2023 9:36 AM by Susan Gauthier Page 6
remaining amount is not being budgeted at this time until sufficient funds are accumulated.
Department internal funds support the development permitting system in an amount of $1.3 million.
FISCAL IMPACT: No fiscal actions are recommended in this report. Proposed CIP approval actions are scheduled for June 2023.
ENVIRONMENTAL REVIEW: This agenda item is not subject to the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15378 as it is not defined as a “project.”
ATTACHMENTS: None.
WEBLINK: The FY 2023/24-2027/28 Proposed Capital Improvement Budget is posted on the City’s website at
https://www.fremont.gov/home/showdocument?id=13129&t=638191359914806844
RECOMMENDATION: Receive presentation and provide input to staff on the proposed 5-year Capital Improvement Program for fiscal years 2023/24 through 2027/28.