PREPARED BY: Nicolle Burnham
Parks and Public Works Director
Reviewed by: Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 1
ADDENDUM
DATE: November 18, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive an Introductory Report on the Capital Infrastructure Needs of the Town of Los Gatos
REMARKS:
Attachment 5 contains the staff presentation.
Attachments Previously Received with the Staff Report:
1. History of Capital Funding
2. Current Projects
3. Facilities Needs
4. Roads, Parks and Other Projects
Attachments Received with this Addendum:
5. Staff Presentation
This Page Intentionally Left Blank
Capital Improvement Program
Study Session
Town Council
November 19, 2024
Item 1
ATTACHMENT 5
PURPOSE AND INTENT
• Initial discussion regarding capital infrastructure needs of the Town.
• Overall goal is to develop a look ahead of required annual costs to maintain existing infrastructure: roads, buildings, parks, etc. • Current information identifies a 10-year look forward
CAPITAL BUDGETING
• Refer to Staff Report Attachment 1
• 10-year source and use of funds support capital projects:
gas tax, utility undergrounding, traffic mitigation, storm drain funds, grants and general fund appropriated reserve (GFAR)
• Trends and observations
Ending fund balances remain high in many funds
Grant sources increased dramatically in 2021/22
Storm drain and utility undergrounding sources have increased with little use of funds
GFAR is the only source that includes unrestricted capital funds
CURRENT PROJECT DELIVERY
• Refer to Staff Report Attachment 2
• Spending lags projections at end of Q1 due to:
Spending on certain projects was not expected until later in FY 2024/25 (e.g., Shannon Road Repair, Townwide Vegetation Management)
Billing and processing lags performance of work (e.g., Shannon Road Ped and Bikeway Project, Annual Curb Gutter Sidewalk, Annual Street Repair and Resurfacing, Parking Program Implementation)
Some project schedules have shifted due to staffing constraints (e.g., Roadside Fire Fuel Reduction, Pinehurst Community Garden, Lynn Avenue Walkway) FACILITIES NEED PROJECTION 25/26 TO 35/36
• Refer to Staff Memorandum Attachment 2
• Based on 2022 facility condition assessments and American with Disabilities Act Assessment of all Town assets
• Preliminary projection of required annual spending to maintain existing building assets
FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 FY 35/36 Annual Total 2022
Dollars 3,153,045 3,030,045 1,750,045 1,806,545 1,498,045 1,618,045 1,266,045 1,343,545 606,545 2,249,045 428,045 Annual Total Escalated
to 2024 Dollars at 4% 3,410,333 3,277,297 1,892,849 1,953,959 1,620,285 1,750,077 1,369,354 1,453,178 656,039 2,432,567 462,973
STREETS AND PARKS
• Refer to Staff Report Attachment 4
• Summary of currently known needs
• From field conditions and staff knowledge
• Bicycle and Pedestrian Master Plan
• General Plan 2024 (various adopted elements)
SUMMARY OF NEED
Items / Need
Current Opinion of
Potential Costs (2024$)
Town Owned Buildings - Maintenance $ 20,278,913
Town Owned Buildings – Capital Needs $ 1,490,000
Parks $ 28,189,000
Storm Drainage $ 23,126,500
Streets and Roads $ 166,037,000
IT Needs $ 310,000
POTENTIAL FUTURE MAJOR NEEDS
• Police Operations Consolidation
• Civic Center Upgrades
• Projects in 2040 General Plan
NEXT STEPS
• Refine project lists in Staff Report Attachments 3 and 4 to reflect required spending year over year
• This may require additional studies (e,g., playground condition assessments, facility assessment of Civic Center, etc.)
• Return to Council with refined projections and assessment of fiscal impacts
• Align annual CIP budget efforts to what can be funded and completed with a focus on sustaining capital assets that are currently in use. • Work towards establishing annual contribution necessary for current capital and determining funding available to reserve for future capital