Fremont City Council Meeting: 02/11/25 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Public Projects
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5353) DOC ID: 5353 A
Updated: 2/7/2025 8:41 AM by Dina Lewis A Page 1
CAPITAL PROJECT CLOSEOUTS - Approve the Closeout of Completed Capital Projects; Partial Defunding of Selected Projects; and Fund Reallocations and Appropriations. Make Findings of CEQA Exemption
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 report is to facilitate administrative adjustments to the City’s Capital Budget by 1) returning unused appropriations to their respective funding source; 2) reallocating unused appropriations to other existing projects; and 3) exchanging the source of project funding for some items. The recommended actions include “closing out” 14 completed projects.
BACKGROUND: The City’s current 5-Year Capital Improvement Program (CIP) and Capital Budget was approved by the City Council in June 2023 and includes investments in the amount of approximately $296 million for the repair and improvement of the City’s parks, buildings, and transportation system. The City currently manages over 220 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 and 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 Exhibit A. A total of 14 projects are proposed for a “CLOSEOUT” action.
Project Defund and Reallocation of Funds
Council Staff Report (ID # 5353) Meeting of February 11, 2025 Updated: 2/7/2025 8:41 AM by Dina Lewis A 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 Exhibit A as a “DEFUND” action. 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 A.
Among the recommended actions are a transfer of $2.355 million of project savings due to reduced project scope from PWC8908 Centerville Community Park Restroom/Classroom project ($1.155 million) and PWC9032 Downtown Event Center ($1.2 million) to PWC9087 Central Park Community Center and a transfer of $1 million from storm mitigation projects to support PWC9105 Morrison Canyon Storm Repair project. Accumulated interest earnings of $457,246 from projects PWC8746 Land Use Permitting System, PWC8942 Dev Center Roof /HVAC project, PWC8943 Dev Center Carpet Replacement, PWC9016 Dev Center Building Rehab, and SPP8934 Long Range Planning are no longer needed to accomplish projects and can be transferred back to the original sources of project funding. Interest earned in support of PWC8812 Centerville Site Soil Vapor Extraction Remediation of $11,456 is appropriated to that project. Additionally, five of the “DEFUND/APPROPRIATION” actions involve moving Alameda County Measure B funds to either the Pavement Maintenance program or the Bike/Ped Bridge Over I-880 (880/Innovation Bridge) project to allow funds to be spent sooner in compliance with the Alameda County Transportation Commission (ACTC) policy on the timely use of funds.
FISCAL IMPACT: The recommended actions will: 1) close out 14 projects and return $7 million to fund balance for reprogramming; 2) defund 19 projects which will return an additional $7.9 million to fund balance for reprogramming; and 3) reprogram $5.7 million among existing projects.
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 - Capital Project Cleanup Action Items
RECOMMENDATIONS:
1. Approve the closeout of the capital projects identified on Exhibit A 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 A and return the remaining project appropriations to available fund balance in their respective funds .
3. Approve appropriation actions identified on Exhibit A.
Council Staff Report (ID # 5353) Meeting of February 11, 2025 Updated: 2/7/2025 8:41 AM by Dina Lewis A Page 3
4. Find the actions are exempt from the California Environmental Quality Act (CEQA) because they are an administrative fiscal activity and not projects under CEQA Guidelines Section 15378.