DATE:
June 2, 2026
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Cassandra Sanchez, Director of Public Works/City Engineer Tina Souza, Senior Project Manager
SUBJECT:
Amend the Fiscal Year 2025-26 Capital Improvement Program Budget for the Ranchero Road Corridor Widening Project Phase III
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2026-21 amending the Fiscal Year (FY) 2025-26 Capital Improvement Program (CIP) Budget by appropriating $6,663,865 in Fund 306 DIF 2018-Streets, $680,780 in Fund 504 SB1 LPP Grant, and $1,079,594 in Fund 504 SB1 Formula Funds for the Ranchero Road Corridor Widening Project Phase III.
BACKGROUND
Ranchero Road Improvements – Seventh Avenue to Mariposa Road, C.O. No. 7094, Ranchero Road Aqueduct Crossing, C.O. No. 7139, Traffic Signal at Ranchero Road/Maple, Cottonwood, and Seventh, C.O. Nos. 7131, 7146, and 7154, respectively, are collectively referred to as the Ranchero Road Corridor Widening Project Phase III (Project).
Construction of the traffic signals, waterline relocation, and roadway plan phases are complete except for areas adjacent to the aqueduct bridge; the bridge is currently under construction and will continue through December 2026.
ISSUES/ANALYSIS
At the time of the current FY 2025-26 CIP budget preparations, there was no clear path moving forward for the outcome of the bridge portion of the Project. Further, calculations were based on historical Project progress. Currently, the contractor is making significant progress, far exceeding anticipated milestones.
There are major milestones for construction that will be reached prior to the new fiscal year. Consequently, the current budget for the Project is not enough to sustain Project progress through the end of the FY 2025-26. A budget amendment is needed for continued services and construction through June 30, 2026. Additionally, a budget amendment is needed to reconcile grant expenditures and meet grant timeliness.
CITY GOAL SUPPORTED BY THIS ITEM
Capital Improvement – Continually evaluate capital improvement priorities.
FISCAL IMPACT
Funding for the Project will require amending the Fiscal Year 2025-26 CIP Budget by appropriating $256,563 to Fund 504 SB1 LPP Grant and $187,040 to Fund 504 SB1 LPP Formula for the Ranchero Road Improvements – Seventh Avenue to Mariposa Road, Construction Order (C.O.) No. 7094 project; and $6,663,865 to Fund 306 DIF 2018-Streets, $424,217 to Fund 504 SB 1 LPP Grant, and $892,554 to Fund 504 SB1 Formula Grant the Ranchero Road Aqueduct Crossing, C.O. No. 7139 project as follows:
Description
Account No.
Amount
SB1 LPP Grant
504-29-700-7094-8029
$ 256,563
SB1 LPP Formula
504-29-700-7094-8030
$ 187,040
Budget Amendment for C.O. 7094
$ 443,603
DIF 2018-Streets
306-29-700-7139-7500
$ 6,663,865
SB1 LPP Grant
504-29-700-7139-8029
$ 424,217
SB1 LPP Formula
504-29-700-7139-8030
$ 892,554
Budget Amendment for C.O. 7139
$ 7,980,636
Total Fund 306 DIF 2018-Streets
$6,663,865
Total Fund 504 SB1 LPP Grant
$ 680,780
Total Fund 504 SB1 Formula
$1,079,594
Total FY 2025-26 Budget Amendment
$8,424,239
Funding for the next fiscal year will be presented in the FY 2026-27 CIP Budget.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution 2026-21
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Amend the Fiscal Year 2025-26 Capital Improvement Program Budget for the Ranchero Road Corridor Widening Project Phase III June 2, 2026