Agenda Item
City Council
Item #: 3.1. 3/22/2022 File #: 22-0151
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director
1. SUBJECT
First Study Session for the Proposed Fiscal Year 2022-23 Budget (Capital Improvement Program).
2. SUMMARY
This is the first study session in support of the preparation of the FY 2022-23 Budget. This study session is intended to provide the draft of the Five-Year Capital Improvement Plan for the period of FY 2022-23 through FY 2026-27.
3. RECOMMENDED ACTION
Receive and file the report and provide direction to staff.
4. FISCAL IMPACT
Fiscal impact will be determined with final budget adoption.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities. c: Provide appropriate reserves.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
This is the first study session in support of the preparation of the City’sFY 2022-23 (FY 23) Budget and is intended to focus on the draft Five-Year Capital Improvement Plan for the period of FY 22-23 through FY 26-27.
Introduction
The Five-Year Capital Improvement Plan (CIP) serves as a comprehensive budget and strategic planning tool used to determine the extent of future needs and identify sources of funding. Funding is provided by a variety of sources including development impact fees, transportation funds, grants, reimbursement agreements, and long-term financing.
The City continues to provide its residents and businesses with much needed capital improvements and infrastructure. As in recent years, we will continue to maintain an increased level of capital City of Orange Printed on 3/17/2022Page 1 of 6
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Item #: 3.1. 3/22/2022 File #: 22-0151
and infrastructure. As in recent years, we will continue to maintain an increased level of capital improvement activity in Orange.
The FY 23 Five-Year CIP identifies 145 proposed projects. For FY 23 itself, there are 17 newly budgeted projects and 128 projects that are either a continuation of previously approved plans, or anticipated to start during the out-years. With these proposed projects, the City Council will be investing over $43.6 million in the upcoming fiscal year and $126.9 million over the five-year planning horizon. This is in addition to project appropriations that will be carried over from the current fiscal year. This is a major investment in the City’sinfrastructure and represents a significant commitment to our community’s future.
As in previous years, the CIP will be funded through several funds. This includes $10.3 million from various Transportation funds (Traffic Improvement, Gas Tax Maintenance, Road Maintenance Rehabilitation, and TSIP); $8.5 million from the City’s various Enterprise funds (Sanitation and Water); $7.3 million from the City’sInternal Service Funds (Equipment Replacement, Major Building Improvements, and Computer Replacement); $5.6 million from the City’sCapital Project Fund; and; $11.9 million from various funds.
In FY 23, there are eleven identified category types. The most funded include a $9.5 million investment towards the improvement of road conditions around the City, $8.9 million towards City facility improvements, $5.1 million toward City park improvements, and a $4.3 million investment in the City’s vehicle replacements.
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Item #: 3.1. 3/22/2022 File #: 22-0151
Five-Year Capital Improvement Plan
The following are highlights of the FY 23 Five-Year Capital Improvement Plan projects:
Fire Headquarters
Within this project, funding has been established for the design and construction of a permanent facility for Fire Station Headquarters and Station No. 1, which serves the portion of the city within a two-mile radius of the Old Towne Plaza. This facility will provide increased emergency service response to the Old Towne area, the immediate surrounding area, and to the general population of the City of Orange. The new Fire Station Headquarters location is the 1.5 acre, City-owned property sited in the southeast corner of the intersection of Chapman Avenue and Water Street in the City of Orange. Groundbreaking occurred in October 2020 with construction commencing in January 2021.
This project is estimated to be completed in June 2022. The total cost of the project, including design, construction, and outfitting, is estimated at $25.5 million, $8.5 million lower than the original projected amount of $34 million. Lease Revenue Bond funding is being used to finance the project.
Orange Police Headquarters Atrium Rehabilitation
The Police Headquarters is over 30 years old, and the glass atrium roof has been past its useful life for several years, with an increasing number of water leaks continuing inside its lobby. This project investigates the feasibility of rehabilitating the existing glass glazing to current standards or replacing the glazing with a roofing system that requires less maintenance. The project will proceed based on findings and assistance from the architect. Lease Revenue Bond funding will be used to finance the project. The total cost of this project is estimated at $4.2 million. Construction for the project will begin during the second half of FY 22, with an estimated completion in December 2022.
Hart Park Pickleball and Fitness Circuit
The Hart Park Pickleball and Fitness Circuit project includes design and development of a lighted pickleball facility and fitness in the southwest portion of the park. The project also includes supporting amenities such as paved access to the amenities, shaded seating, fencing with wind screens, benches, drinking fountains, trash receptacles, bike racks, security cameras, and City of Orange Printed on 3/17/2022Page 3 of 6
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Item #: 3.1. 3/22/2022 File #: 22-0151
screens, benches, drinking fountains, trash receptacles, bike racks, security cameras, and landscaping. Staff recently learned that Congressman Lou Correa’soffice successfully obtained $2 million in federal funding through a recent Omnibus Bill for this project.
Corporate Yard Renovations
A feasibility study for the City’sCorporate Yard (Corp Yard) renovation project was completed in October 2020. The City plans to move forward with finalizing the layout and designing construction plans, focusing on improving space allocation and enhancing paths of travel. A portion of the sale of the eastern 2.81 acres of the Corp Yard, in the amount of $1 million, will partially fund this project.
This project cost is $6.8 million and is estimated to be completed in June 2023.
Park Video Surveillance and Security
As part of an ongoing effort, this project will expand video surveillance systems at several park locations. These sophisticated systems will continue to deter ongoing illegal activities such as graffiti, general vandalism, criminal activity, park hour violations, campfire, and overnight camping. Video surveillance systems have been installed at Hart, Shaffer, Plaza, and Yorba Parks, and the Sports Center at Grijalva Park. For FY 23, expansion of cameras are anticipated for Hart Park. The project will be ongoing and future locations will be identified dependent upon the ability to connect park sites to the City's network.
Tot Lot Shade Sails Installation
As a long-standing Council initiative, shade sails have been installed over tot lots in multiple City park sites to protect users from sun exposure and heat from the equipment during the warm summer months. In FY 23, shade sails will be installed at La Veta and expanded at Belmont Parks. The following parks are still in need of shade sails in this order of priority based on frequency of use:
Eisenhower (2), Santiago Hills, and Hart Parks. Future shade sail installations will be prioritized based on the need for shade at each tot-lot and available funding. This project is estimated to be completed in June 2025.
Rehabilitation of Library Facilities
The City’sCIP includes several projects involving the rehabilitation of the Orange library facilities, including painting, carpet replacement, restroom improvements, and HVAC replacement. Many of these projects were recommended as part of the 2016 Facilities Condition Assessment and are largely funded with Library Facility Fees. In FY 23, ADA door access in Taft Library will be installed, and further carpet and paint improvements will be made at the Main Library. Staff is currently exploring grant options to supplement the cost of the facility projects.
Pavement Management Program
This program identifies the condition of 320 miles of streets and ascertains the maintenance needs of this roadway system. Approximately $7.6 million is requested in FY 23. The project requires $6 million annually for slurry sealing, asphalt overlays, and reconstructions, and also includes landscaping maintenance activities within the street right-of-way. This program is funded from Measure M2, Gas Tax, Community Development Block Grant, Capital Projects, and the Road Maintenance Rehabilitation Account funds. The program will focus on locations such as Batavia Street, Meats Avenue, Cannon Street, and Santiago Canyon Road.
Water Projects
Commitment of $3.5 million in FY 23 towards seven water infrastructure projects intended to maintain City of Orange Printed on 3/17/2022Page 4 of 6
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Item #: 3.1. 3/22/2022 File #: 22-0151
Commitment of $3.5 million in FY 23 towards seven water infrastructure projects intended to maintain or improve the City’s water production and distribution. This includes $1.5 million for pipeline replacement, which provides for the design and construction of water mainline replacements for the City's water system. Approximately two miles of pipeline are targeted to be replaced annually due to increasing age, substandard sizing, corrosion, or high maintenance. The program will focus on locations such as Heim Avenue and the surrounding residential streets near Santiago Boulevard and Meats Avenue.
Sewer Projects
Commitment of $2.2 million to the Sewer Replacement Program to maintain or improve the City’s sewer pipe network, which provides for the design and construction of sewer mainline replacements for the City's sewer system. Approximately one mile of pipeline is targeted to be replaced annually due to increasing age, substandard sizing, corrosion, or high maintenance. The program will focus on locations such as Sycamore Street, Crest Road, Waverly Street, Walnut Avenue, Sycamore Avenue, and Maplewood Street.
Capital Projects Fund (500)
The City Council has set-aside monies from the unreserved fund balance of the General Fund in the Capital Projects Fund (500) in order to reinvest in the City’sinfrastructure. While staff endeavors to make every effort to prolong much needed repairs and improvements, reinvesting in our infrastructure is necessary. The following projects are proposed for this fund for FY 23, totaling $5.6 million:
1. Corp Yard Renovations ($2,750,000);
2. Pavement Management Program ($600,000)
3. Municipal Parking Lot Maintenance ($20,000);
4. Quiet Zone/Railroad Crossing Safety ($50,000);
5. Minor Traffic Control Devices ($225,000);
6. Old Towne Street Lighting ($277,998);
7. Streetlight Pole Replacement Program ($250,000);
8. Citywide Sidewalk Assessment ($500,000);
9. USAR Tools and Equipment Replacement ($200,000);
10. Fire Station Apparatus Bay Door Replacement ($330,000);
11. Fire Station 5 Exercise Room Addition ($414,000)
Conclusion
The City Council’s prudent policies continue to set the stage for staff to meet the budgetary challenges and demands for FY 23. The City continues to take advantage of the growing economy to maintain services and enhance our infrastructure. While it is important to continue on the path of caution to ensure long-term fiscal health, the City Council works hard to be able to allocate the necessary resources to allow the City to provide the citizens and businesses of the City with the City of Orange Printed on 3/17/2022Page 5 of 6
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Item #: 3.1. 3/22/2022 File #: 22-0151
necessary resources to allow the City to provide the citizens and businesses of the City with the excellent services they have come to expect.
In the next few months, staff will continue to provide detail to the FY 23 Five-Year Capital Improvement Plan. In addition, feedback from the City Council received at this study session will help refine our projects. The next study session, tentatively planned for April 26, 2022, will review projected revenues and expenditures, including recommended departmental requests, for the City’s operations as well as Departmental Performance Measures, Goals, and Objectives.
7. ATTACHMENTS
· FY 23 Draft Five-Year Capital Improvement Plan
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