DATE: August 18, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: FY26 Q3 and Q4 Semiannual Capital Improvement Program Progress Report
RECOMMENDATION
That the City Council reviews the FY26 Q3 and Q4 Semiannual Capital Improvement Program (CIP) Progress Report.
SUMMARY AND BACKGROUND
The CIP is a planning document intended to guide the City’s capital project expenditures for the upcoming ten-year period. The purpose of the CIP Semiannual Progress Report (Report) is to update City Council and the public on the status of CIP projects, as well as to highlight the accomplishments that occurred in each semiannual period. In recent years, staff have presented the report in a PDF format as an attachment to the corresponding staff report for that reporting period.
To increase accessibility and ease of navigation, staff transitioned the report to a new online dashboard, utilizing Clearpoint Strategy, in early 2026. The online dashboard provides users with access to budget information for each CIP project being reported on and details any General Fund or Measure C impact where applicable. Further, the Report details activities completed within the reporting period; status, such as completed, on track, delayed, etc.; percent complete, and target completion date. The Report 1 can be found on the CIP homepage posted on the City’s website 2, under the CIP Progress Report section. A PDF version of the report is also included in Attachment II for active projects and Attachment III for completed projects.
FISCAL IMPACT
This item has no impact on General Fund or Measure C.
1 https://ciphayward.clearpointstrategy.com/
2 https://www.hayward-ca.gov/your-government/documents/capital-improvement-program
The effort to provide a Progress Report semiannually is absorbed in the Department’s existing budget. The adopted capital budget for FY26 totals about $161 million, with a total of approximately $1.3 billion tentatively programmed for the entire ten -year period from FY26 through FY35. An additional $709 million in unfunded needs were identified for the same period.
DISCUSSION
The FY26 Quarter 3 and Quarter 4 CIP Progress Report covers the period between January 1, 2026, to June 30, 2026. While the Adopted FY26 CIP contains almost two hundred capital projects, the progress report only includes major projects of interest with activities occurred in FY26 Quarter 3 and Quarter 4, or projects of high interest to the public. To not inundate City Council and the public with progress updates on CIP projects related to routine maintenance, replacements, repairs, or projects performed on an as needed basis, the number of projects reported has been reduced. An example of a routine project not included in the report for this period is Project No. 07679, Cogeneration System Maintenance, which is an annual project to maintain the energy-generating cogeneration facility located at the Water Resource Recovery Facility.
Significant ongoing vacancies in several key positions within the Public Works and Utilities Department, including Assistant Director – Utilities and Deputy Director – Engineering, among dozens of others, have impacted staff's ability to make significant progress on some CIP projects. However, active recruitments are in place to address some staffing shortages and fill vacancies . Nevertheless, significant progress continues to be made on design and construction of major CIP projects such as annual Pavement Rehabilitation projects and multi-year water line and sewer line improvement projects.
ECONOMIC IMPACT
Maintaining and improving the City’s infrastructure, fleet, and equipment will have an unquestionable impact on maintaining and improving the economic health and vitality of the City. However, providing a Semiannual Progress Report will not have a direct economic impact.
STRATEGIC ROADMAP
The 2026 Strategic Roadmap updated in 2025 is at the forefront of the City’s capital project planning efforts. As City Council adopts updates the Strategic Roadmap, staff will continue to ensure that CIP Projects align with the priorities set forth . CIP Projects touch the Confront Climate Crisis & Champion Environmental Justice, Enhance Community Safety & Quality of Life, Grow the Economy, and Strengthen Organizational Health Priorities. However, they predominantly support the Invest in Infrastructure Priority.
SOCIAL EQUITY
Consideration of social equity has been an important element of selecting projects, such as roadway improvements, sidewalk improvements, traffic calming, complete streets, and landscaping.
SUSTAINABILITY FEATURES
While the adopted projects are aligned with and advance the City Council’s sustainability goals and policies, the action taken for this agenda report will not result in a physical development, purchase or service, or a new policy or legislation. Any physical work will depend upon a future City Council action. Sustainability features for individual CIP projects are listed in each staff report.
PUBLIC CONTACT
The purpose of the Progress Report is to provide regular updates to City Council and the public on the status of CIP projects. The Progress Report 3 is posted for public view and can be found on the CIP homepage posted on the City’s website4, under the CIP Progress Report section.
NEXT STEPS
Staff will continue to provide semiannual reports on the status of selected projects within the City’s adopted Capital Improvement Program.
Prepared by: Marissa Matta, Management Analyst
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________
Jennifer Ott, City Manager
3 https://ciphayward.clearpointstrategy.com/
4 https://www.hayward-ca.gov/your-government/documents/capital-improvement-program