Fremont City Council Meeting: 02/17/26 07:00 PM
3300 Capitol Avenue Div/Dept: Public Works
Fremont, CA 94538 Category: Public Projects
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5634) DOC ID: 5634
Updated: 2/12/2026 1:00 PM by Dina Lewis Page 1
CAPITAL PROJECT CLOSEOUTS - Approve the Closeout of Completed Capital Projects and Partial Defunding of Selected Projects; and Approval of Fund Reallocations and Appropriations Including a $13.1 Million Allocation to Support the Central Park Community Center Project.
Contact Persons:
Name: Angela Mendiola Hans Larsen
Title: Business Manager 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 adjustments to the City’s Capital Budget to allow for the expenditure of unused funds from completed projects, to change the source of project funding, or to consider reallocating funds to higher priority projects. A total of 44 specific budget amendments are recommended in the total amount of $18.3 million. Significant actions include reallocating funding in the amount of $13.1 million to support expanding the construction scope for the new Central Park Community Center project to include an Event Hall; and “closing out” 23 completed projects.
BACKGROUND: The City’s current 5-Year Capital Improvement Program (CIP) and Capital Budget was approved by the City Council in June 2025 and includes investments in the amount of $236 million for the repair and improvement of the City’s parks, buildings, and transportation system. The City currently manages approximately 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.
DISCUSSION/ANALYSIS: Exhibit A identifies 44 specific Capital Budget funding actions that are referred to as: a “CLOSEOUT”, meaning the project is completed or cancelled, and unused funds are redirected to another project; a “DEFUND”, meaning that the project is still active, but project funding is reduced to support another activity; and/or an “APPROPRIATION”, meaning the allocation of funding to a certain project. The following describes the significant Capital Budget changes recommended in this staff report.
Supplemental Funding for Central Park Community Center Event Hall Construction (19 Funding Actions)
In July 2024, the City Council accepted the design concept and a multiphase implementation plan for a new Community Center in Central Park, consisting of Phase 1 (new Community Council Staff Report (ID # 5634) Meeting of February 17, 2026 Updated: 2/12/2026 1:00 PM by Dina Lewis Page 2
Center, funded) and Phase 2 (adjoining Event Hall, partially funded). A future phase includes a new gymnasium and outdoor amphitheater (unfunded). Final design has been completed for a combined Phase 1 and Phase 2 project, with approval of a construction contract proposed for City Council action in March 2026. At this time, staff recommends a series of funding actions that would increase the budget for the Central Park Community Center project to approach full funding for the Event Hall, increasing the overall project budget by $13.1 million from $37.4 million to $50.5 million. Additional funding may be needed depending on actual construction bids received. A summary of the recommended funding changes to support construction of the Event Hall are noted as follows:
• $7.9 million from the Park CIP that includes a transfer of an earlier commitment of funds under a different project account ($2 million), unused funds from completed projects, funds from lower priority projects, and an exchange of funding sources for the Palm Avenue Park project
• $0.5 million in unallocated General Funds made available from completion of the South Fremont Age Well Center project
• $4.7 million in transferred funds from the HVAC Systems Replacement program (reduced scope) and EV Charging Fleet Electrification program (reduced scope)
Other Funding Actions
A total of 25 additional funding actions totaling $5.1 million are recommended that closeout and redirect unused funds or appropriate unallocated funds. Projects receiving supplemental funding in amounts more than $250,000 include the Auto Mall Median Improvement Project ($1.2 million), Firing Range Lead Abatement ($0.3 million) and the Morrison Canyon Trail/Road Storm Repair Project ($0.3 million). A change in funding source is recommended for the Palm Avenue Park Project ($0.7 million). Defunding a federal grant ($0.5 million) from the Central Park Community Center project is proposed to maximize flexibility of the remaining project funding and reduce administrative burden; staff is seeking to have the federal grant funds redirected to another project. Funding is being released to the General Fund capital program fund balance from the City Hall Building Rehabilitation project ($1.3 million) as planned work is substantially complete. Four funding actions address fully expending unused funds from the expiring 2000 Alameda County Measure B transportation program.
FISCAL IMPACT: The recommended actions will reallocate $18.3 million in funding from prior budget approvals and redirect funds to address current investment priorities including a budget increase of $13.1 million for the Central Park Community Center project to enable construction of the planned Event Hall.
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 and defunding capital projects identified on Exhibit A;
2. Approve appropriation actions identified on Exhibit A.
Council Staff Report (ID # 5634) Meeting of February 17, 2026 Updated: 2/12/2026 1:00 PM by Dina Lewis Page 3
3. Find that the recommended actions are exempt from the California Environmental Quality Act (CEQA) because they are an administrative fiscal activity and not a project pursuant to CEQA Guidelines Section 15378.