Fremont City Council Meeting: 05/13/25 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Presentations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5442) DOC ID: 5442 B
Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 1
PROPOSED CAPITAL IMPROVEMENT PROGRAM - Receive Presentation and Provide Input on Proposed Five-Year Capital Improvement Program for Fiscal Years 2025/26 Through 2029/30
Contact Persons:
Name: Hans Larsen Kim Beranek
Title: Public Works Director Community Services Director Div/Dept: Public Works Community Services
Phone: 510-494-4722 510-494-4330
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) 2025/26 through 2029/30 (referred to as the 2025 CIP). An initial discussion of the proposed 2025 CIP was included as part of the City Council meeting on April 1, 2025. A Proposed CIP has been prepared by staff for review and input by the City Council. Adoption of the CIP is planned for consideration in June 2025.
A copy of the Proposed CIP document is available on the City’s Financial Reports web page.
BACKGROUND: The City’s CIP addresses Fremont’s public infrastructure needs and investments, primarily in the areas of Transportation, Parks, Building Facilities, Capital Maintenance, 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 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.
On April 1, 2025, the City Council received a presentation about the preparation of the City’s five-year CIP. Staff reviewed current investments, program accomplishments, funding projections, results from a community survey (posted on My Fremont from December 2024 through January 2025), and the consideration of a local ballot measure to enhance revenues. Also at the meeting, public comments were received. The City Council provided direction for staff to: 1) explore options and provide further analysis on a potential revenue measure and 2) consider a funding request from the Niles Main Street business association for parking lot improvements.
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.
The Parks program is managed by the Community Services Department, with guidance from the Recreation Commission. The City Manager’s Office and the Finance Department 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 # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 2
DISCUSSION/ANALYSIS:
CIP Revenues
The funding allocation for the 2025 CIP is proposed to be $236 million, lower than the previous CIP approved in 2023, which had a funding level of $296 million.
The prior 2023 CIP benefited from a significant allocation of one-time General Fund investments in the amount of approximately $60 million, which included funding for the following projects and programs: new Central Park Community Center ($21 million), park restroom improvements ($15 million), replacing old heating, ventilation and air conditioning (HVAC) systems ($8M), and other improvements ($16 million) related to electric charging for City fleet vehicles, the City Hall buildings, Central Park Dog Park turf replacement and sports park transformer replacement , Auto Mall Parkway landscaping, new fire station alerting system, and Police Center vehicle evidence storage building.
There are no new one-time General Fund investments proposed for the 2025 CIP. However, there is a projection of new revenue in the amount of $62 million in regional transportation grants for the following projects: Dumbarton/Decoto Multimodal Corridor ($35 million); Peralta/Mowry Pavement Rehabilitation and Compete Street Project ($17 million); and Fremont Boulevard Multimodal Corridor ($10 million).
Other significant changes in revenue for the 2025 CIP as compared to the 2023 CIP are noted below:
• A $16.125 million decrease in General Fund transfers to the CIP for capital maintenance activities over the CIP cycle; a reduction from $7 million to $3.775 million per year for five years. The annual reductions are proposed from pavement maintenance ($2.225 million) and parks maintenance ($1 million).
• A $5.5 million decrease (35%) in revenues from development impact fees for park capital projects, associated with a decline in private development housing activity.
• A $3.3 million increase (3%) in revenues from State (gas taxes) and Alameda County transportation programs (Measure BB sales tax and vehicle license fees).
Proposed CIP Expenditures
The following report sections provide a summary of investments in the Proposed 2025 CIP.
General Fund Annual Transfers to the CIP
The proposed CIP includes a $3.775 million annual transfer (a total of $18.875 million over five years) of funding from the General Fund for capital maintenance activities. The investments are allocated as follows:
• $2.0 million annually to building maintenance
• $0.6 million to capital replacement for parks
• $0.3 million to playground resurfacing
• $0.45 million for ADA facility improvements
• $0.325 to the 50/50 sidewalk repair / street tree replacement program • $0.1 million to water conservation and median islands Council Staff Report (ID # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 3
Transportation Investment Highlights
The proposed Transportation CIP includes program and project allocations (totaling $181 million) focused in the areas of: pavement and sidewalk maintenance; traffic operations and signal system improvement; bicycle and pedestrian facilities; major projects; 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 $75.6 million.
• 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 $20.3 million. Key traffic operation projects included in this CIP budget cycle include the continued development of reliable signal coordination timing along major corridors to manage traffic speeds and minimize the amount of red lights experienced by motorists.
• 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 Active Transportation Plan and Safe Routes to Schools program. The overall funding amount for the bike/ped projects is approximately $8.6 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 Grant Projects – A significant portion of the City’s Transportation CIP is oriented toward major and regional projects funded by grant sources. This includes the City’s support for developing the new Irvington BART Station and the new bridges for bicycling and walking over freeways at 680/Sabercat Trail and 880/Innovation District. Additionally, the City is leading the planning and design for modernizing freeway interchanges at 680/Mission and 880/Decoto. The City is expecting to receive future grant revenues for the following projects:
Dumbarton/Decoto Multimodal Corridor ($35 million); Peralta/Mowry Pavement Rehabilitation and Compete Street Project ($17 million); and Fremont Boulevard Multimodal Corridor ($10 million). The overall amount of new funding for major grant projects in the proposed CIP is $62 million. Based on actions by the California Transportation Commission, the Metropolitan Transportation Commission, and Alameda County Transportation Commission, these funds are specifically programmed to the City of Fremont and can be obtained once the projects are ready for construction and/or other conditions have been met.
Council Staff Report (ID # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 4
• Proposed New Projects – Two new projects are proposed to be added to the Transportation CIP based on interest expressed through the recent community survey. Funding in the amount of $200,000 is allocated to the Scott Creek/ Zinfandel Traffic Safety project and $200,000 is allocated to the Walnut/ Gomes Railroad Quiet Zone project. Both investments are for project planning in order to determine the scope and cost of these projects for future funding consideration and potential grant funding opportunities.
Park Investment Highlights
The proposed Parks CIP includes project allocations totaling approximately $18.6 million over five years focused in the following areas: funding prior project commitments; park planning and ongoing park improvement funding; additional funding for existing major projects underway; and finally funding affordable identified community needs based on available funds. The Recreation Commission considered proposed projects in three meetings during October and December of 2024, and February 2025. During the Commission’s review, they considered the proposed projects consistent with the Parks and Recreation Master Plan that was adopted in 2022. All proposed project allocations would be funded by Parks Development Impact Fees. The Recreation Commission also addressed decreasing revenues and project funding shortfalls of prior approved projects. On February 5, 2025 the Recreation Commission voted 6-0-0-1 to forward the proposed Parks CIP to the City Council for consideration. Significant goals in the proposed Parks CIP include the following:
• Honoring Prior Funding Commitment to New Central Park Community Center Project: The previous CIP cycle funded $2 million of the total $5 million commitment of Parks Development Impact Fees for site improvements associated with the Community Center. On July 9, 2024, City Council approved the initial phase of construction. The final $3 million is proposed for FY 2025/26.
• On-Going Park Improvement Projects and Park Planning Efforts: Funding for on-going park planning efforts, CIP costs/scope work, park emerging projects, CIP management, security in parks, ADA upgrades in parks, and adding benches to existing parks in support of the Age Friendly Fremont Action Plan, over the five years totals $3.6M.
• Additional Funding for Already Approved Park Projects and Improvements:
Much of FY 2025/26’s capital investment is allocated toward additional funding for on-going park projects. In addition to funds to the new Central Park Community Center mentioned above, approximately $3.6 million will be allocated to other on - going projects. Shortfalls could be due to expanded scope, additional project requirements along with the high inflationary pressures and other increasing costs in the construction industry and throughout the economy. Staff estimates that the proposed allocations in this CIP will complete funding for the following projects:
1) Centerville Community Park for the addition of Pickleball courts and expanded utility requirements ($1.46 million)
2) Patterson Ranch Dog Park for improvements to site access ($300,000) 3) Vallejo Mill Historic Park for expanded environmental review process ($445,000) 4) Central Park Babbling Brook Bridge Renovation for increased cost and scope change ($339,000)
Council Staff Report (ID # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 5
5) Central Park Knoll Pickleball Court Lighting to accommodate community need by expanding operating hours after sunset ($1.1 million)
• Funding New and Long-Term Projects: With the limitations on available funding, only a few new projects are proposed, most with only partial funding:
• Cricket Batting Cages at a Community Park has been identified as a high need, and will assist Recreation Services in meeting the community demand for Cricket practice space until Cricket Fields are expanded. One project ($1.1 million) is proposed to be funded in FY 2026/27, with lower levels of fund savings planned in the program years (FY 2027/28-2029/30. ($1.8 million) • Lake Elizabeth Renovation Management will establish initial funding to explore, develop and potentially implement solutions for improved long-term lake water quality and potential recreational uses. ($1.8 million) • Niles Dock Renovations or Replacements has historically been funded one dock at a time. This project will not be specific to any one dock and will give staff the flexibility to address issues or concerns as they arise. ($547,000) • Hetch Hetchy Bike/Ped Trail at Warm Springs supports the community priority to expand trails and pedestrian facilities. The proposed funding will re-initiate the long-term savings for a trail that will connect four parks in Warm Springs. ($1.5 million)
General Government/Public Facilities Highlights
The proposed General Government/Public Facilities CIP allocations total $16.52 million.
Of this amount, $5 million is allocated to pay debt on public facilities completed in the past and $10 million is programmed to support the development agreement for the Age Well Center in South Fremont. Other funding supports the development permitting system, red-light photo enforcement program, Capital Improvement Program management, and the Development Impact Fee program management.
Carryover Projects Funded from the 2023 Capital Budget
In addition to new expenditures proposed in the 2025 CIP, other capital improvement projects will be implemented based on prior funding allocations in the 2023 Capital Budget.
Noted below is a summary of these previously funded projects:
• General Fund Projects: Citywide Park Restroom Improvements (some projects under construction; multi-year program), HVAC System Replacements (some projects under construction; multi-year program), EV Charging for City Fleet Electrification (some projects under construction; multi-year program), Central Park Community Center (Phase 1 construction to start in 2026), and Auto Mall Parkway Median Landscaping (construction to start in 2026).
• Transportation Projects: Traffic Signal at Mission/Sullivan (construction to start in 2025); Paseo Padre Safe Street Improvements (design to start in 2025); Centerville Railroad Quiet Zone Corridor (design underway; not yet funded for construction); and Dusterberry and Peralta Intersection Improvements (design to start in 2025; not yet funded for construction).
• Park Projects: Palm Avenue Park Phase 1 (construction to start in 2025)
Council Staff Report (ID # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 6
Niles Parking Lot Improvements
As directed by the City Council on April 1, 2025, staff has developed a cost estimate for improving the public parking lots in the Niles area, located adjacent to the Niles Town Center Plaza. Based on a site visit and communications with the Board President of the Niles Main Street Association, the following scope descriptions and cost estimates were developed:
• Primary Parking Lot Improvements: Provides a uniform level of lighting for the two public parking lots adjacent to Niles Town Plaza. The scope of work includes:
installing 7 new LED streetlights with decorative historic poles, replacing 4 old light poles and adds 3 new light poles; installing raised curbs to prevent vehicle “sideshow” activities; and providing signage to communicate parking restrictions during Farmers Market days and special events. Estimated cost is $390,000 (includes design, construction and project management).
• Security Cameras at Primary Parking Lots: Installs security monitoring cameras to deter illegal activity. The estimated site and licensing costs are approximately $300,000, but an installation first requires access to a nearby fiber-optic communications line which is not planned to be available in Niles until Fall 2026.
• Overflow Parking Lot Lighting Upgrades: Replaces a “temporary” lighting system consisting of lights on 3 wooden poles and with an overhead power supply. New LED lights would be provided on decorative historic poles and with an underground power supply. Estimated cost is $180,000.
Additionally, staff’s evaluation of the Niles parking lots included a nighttime survey of the lots which prompted the repair of lighting outages within the Niles Town Plaza Park and the overflow parking lot. The Police Department reviewed their records for service calls at the parking lots which identified a history of disturbance issues and complaints related to homeless persons. No crime issues related to vehicle break-ins or theft were reported in 2024.
The source of funding for the parking lot improvements would need to come from the City’s General Fund, for which funding for capital investments is already proposed for reduction. It is noted that the City is also seeking to identify additional revenues to fund an expanded Central Park Community Center project to include the Phase 2 Event Hall.
Overall, staff finds that improving lighting levels for the Niles parking lots is a worthy project for implementation. However, the current fiscal environment does not support funding new capital projects from the General Fund at this time. It is proposed that the project be considered again for a future funding opportunity, which could occur as soon as the mid-year budget review process in early 2026. In the interim, staff will be able to implement the requested improvements to parking lot signage and install raised curbs to prevent vehicle sideshow activities. These are low-cost items that staff can implement within existing budget allocations.
FISCAL IMPACT: No fiscal actions are recommended in this report. Proposed CIP approval actions are scheduled for June 2025.
Council Staff Report (ID # 5442) Meeting of May 13, 2025 Updated: 5/9/2025 11:03 AM by Susan Gauthier B Page 7
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 2025/26-2029/30 Proposed Capital Improvement Budget is posted on the City’s website at https://www.fremont.gov/home/showpublisheddocument/18009
RECOMMENDATION: Receive presentation and provide input to staff on the proposed 5-year Capital Improvement Program for fiscal years 2025/26 through 2029/30.