City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: January 21, 2025
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: Carmen Gil, City Manager
SUBJECT: Updated Sewer Capital Improvement Program
RECOMMENDATION
Staff recommends that the City Council approve an updated Sewer Capital Improvement Program.
BACKGROUND
The Public Works Department is responsible for planning, designing, funding, and constructing infrastructure projects that support and enhance the community. Our municipal infrastructure includes roadways, water, sewer, drainage systems, along with City buildings and parks.
A Capital Improvement Program (CIP) is a multi-year plan of improvement projects based on operations and maintenance needs, planned development projects, community input and City Council priorities. A CIP is comprised of capital projects, major equipment purchases, and major studies that a city may construct, purchase, or implement whether they are fully funded or not.
A capital project is typically defined as:
1. An undertaking to construct, repair, renovate, improve, equip, furnish, or acquire a building, facility, or other physical public improvement.
2. Furnishings, apparatus, or equipment for a building, facility, or other physical public improvement.
3. Has a useful life of five years or longer; and
4. Has an estimated cost of more than $50,000.
AGENDA
ITEM
14 The benefits of a CIP are:
1. It provides an in-depth review of the City’s capital and maintenance projects and related programs.
2. Shows the estimated costs for each project and thereby presents the total cost for the CIP Budget each fiscal year.
3. Identifies, prioritizes, and optimizes the funding and financing of capital projects. This includes “pay-as-you go”, impact fees, Federal grants, State grants, and debt financing.
4. Allows for systematic evaluation of all potential projects.
5. Serves as a public relations and economic development tool.
6. Helps plan for the maintenance and improvement of the City’s infrastructure.
The City’s first CIP was approved at the December 2, 2019 Council Meeting. Updated CIPs for the Water and Sewer were prepared for use in the 2023 Water/Sewer Rate Study. The updated Water and Sewer CIPs were presented and approved at the August 7, 2023 Council Meeting and the Rate Study was approved at the November 20, 2023 Council Meeting.
REVIEW & ANALYSIS
Staff asked Megan Panofsky of MNS Engineers, Program/Construction Manager on the City Wastewater Projects to review the Sewer CIP and adjust the proposed projects based:
1. Updated costs and expected timelines due to delays caused by the length of time needed to obtain the $29M SRF loan for the IW System.
2. The recent construction of the disposal bed at the Wastewater Treatment Plant was added to the CIP as it will be funded by City sewer rates.
Megan Panofsky’s memorandum with the updated Sewer CIP is attached. Staff recommends that the City Council review and approve the updated Sewer Capital Improvement Program.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: The Sewer Capital Improvement Program provides for planning, designing, funding, and constructing capital projects.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The Capital Improvement Program is a strategic tool used to plan and deliver various infrastructure projects and public works programs over a five-year horizon.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes __No __N/A Explain: See Vision statement above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education Yes X No N/A
Explain: See Vision Statement above.
ALTERNATIVES
Provide staff with comments and feedback on adjusting any of the projects.
BUDGET IMPACT
None at this time. Design and construction of Sewer CIP projects are funded from a variety of sources such as development impact fees, sewer rates, State and Federal grants and loans.
CONCLUSION
Staff recommends that the City Council approve an updated Sewer Capital Improvement Program.
Attachments:
1. Memo - Updated Sewer CIP