Capital Improvement Program Semi-
Annual Report
March 1, 2022
By: Benjamin A. Fine, P.E.
Director of Public Works/City Engineer
&
Nadia Feeser
Administrative Service Director
CIP Update –Item 12.A
Department Overview
2 Current Council Goals as of February 12, 2021
1.Water Supply, Conservation and Central Coast Blue
2.Public Safety
3.Traffic, Circulation and Parking
4.Community Character and Quality of Life for Residents 3 Purpose of CIP Update
4 Understanding the Budget Process
5 Order of
Magnitude
•Extremely rough estimate
•25% -75% accuracy
Feasibility
Estimate
•Determine projects feasibility
Preliminary
Estimate
•Uses somewhat detailed scope
Substantive
Estimate
•Created by analyzing reasonably finalized design
•Based on estimated unit costs
Definitive
Estimate
•Used when costs are known
Completed Projects
Completed Projects
Projects completed since October 2021
•Shell Beach Tennis Court Rehab
•Original Estimate –$43,000
•Updated Cost –$43,408
7 Dinosaur Caves/Price Historic Park Restroom
8 •Original Estimate –$377,000
•Updated Cost –$380,000
•Original Timeline –70 working days
•Updated Timeline –100 working days
Price Canyon Slope Repair
9 •Federal Emergency Relief Funding
•88.53% funded
•Contract Awarded –August 17, 2021
•NOC -May
•Original Estimate –$1,191,395
•Updated Cost –$900,000
•Original Timeline –70 working days
•Updated Timeline –100 working days
Projects Under Construction
Bello Bridge
•Awarded to Papich Construction –April 21, 2020
•Construction commenced –June 2020
•Construction paused (permit requirement) –October 31,
2021
•Construction resumed –June 15, 2021
11 Bello Bridge
•Current activities
•Railing
•Project completion Middle of March
•Original Estimate –$6.5 M
•Updated Cost –$8 M
•Original Estimated Completion Date –January 2022
•Updated Estimated Completion Date –March 2022
12 Shell Beach Reservoir I Replacement
•Construction commenced –September 15, 2021
•Estimated Completion April 2022
13 •Original Estimate –$1.7 M
•Updated Cost –$1.7 M
•Original Timeline –170 working days
•Updated Timeline –190 working days
Projects Under Design
2021-22 Paving Project
•April 2021 –Council adopted updated PMP
•May 2021 –Council awarded contract to PEI
•Evaluation of streets and development of plans and specs •Bids Due March 31, 2022
•Original Estimate $6M + Soft Cost
•Updated Estimate $13M + Soft Costs
15 2021-22 Paving Project
16 2021-22 Paving Project
17 2021-22 Paving Project
18 2021-22 Paving Project
19 2021-22 Paving Project
20 Ocean Boulevard Coastal Access Project
21 Ocean Boulevard Coastal Access Project
Project includes:
•Ocean Boulevard bluff stabilization (federally funded) •Ocean Boulevard Pedestrian Walkway
•between Vista del Mar and Capistrano Avenue (City-funded) •Morro Stairs Replacement (City funded)
•Morro Storm Drain Outfall Replacement (City funded)
•Federally funded portions funded at 88.53%
22 Ocean Boulevard –Project Timeline
•Set to bid February 2021
•Additional bluff failure
•Outside Arch/Bio study area
•Project delayed
•New site qualified for Federal funding
•Advertised for bids on October 14, 2021
•Bids Opened November 18, 2021
•Awarded December 21, 2021
•Granite Construction
•$5,172,223
23 Ocean Boulevard –Project Timeline
•Original Construction Estimate
•Likely after the holidays
•300 working days
•Assume January 4, 2022 Start Date March 22, 2023•Material Delays •April 2022 Start Date June 2023
•Original Estimate –$6.9M
•Updated Estimate –$7.1M
•Original Completion Date –March 2023
•Updated Estimated Completion Date –June 2023
24 Fiscal Impact
How are Capital Projects Funded?
Typically determined
at Goal Setting during
Budget Development
Structurally Balanced
Budget: Capital
projects funded using
one-time funds from
accumulated fund
balance from various
funds
Funding source
depends on the type
of project and based
on available resources
General Fund Supported Capital Projects
FY 2022 General Fund budget supporting $10.6 million
36 different projects: 33% General Fund 67% Other funding sources 6 of these projects anticipated to need significant more funding based on updated cost projections
FY 2022 General Fund available ending fund balance $9.5 million Potential additional $9.5 million General Fund support needed
Potential Additional General Fund Support Need for
Upcoming Capital Projects
•Bullet point text in this font size •Bullet point text in this font size Project Title
FY 2022 GF
Support
Remaining
Budget
FY 2022 All
Funds Budget
Actuals +
Encumbered
FY 2022
Remaining
Budget
Updated All
Funds Projected
Cost
Other Funding
Sources
Potential
Additional GF
Need
Public Safety Facility
-PAYG/Cash portion
only
2,799,869 3,000,000 2,222,565 777,435 4,000,000 1,000,000 FY 2022 Paving
Project
2,000,000 6,311,920 708,125 5,603,795 13,708,125 850,000 6,546,205 James Way
Beautification
300,000 300,000 35,330 264,670 1,466,608 1,166,608
Chumash Park
improvements
350,000 350,000 339 349,661 629,000 279,339
Palisades Park 100,000 339 99,661 453,000 100,000 353,339 Radio Secure
Communications
project
--625,000 470,000 155,000
Total $5,449,869 $10,061,920 $2,966,698 $7,095,222 $20,881,733 $1,420,000 $9,500,491
Risks to Consider Mitigating Risk Factors
Risks to Consider
Potential additional $9.5 million General Fund support
needed, fully using all the available fund balance in FY 2022.
May impact cash flow.
Estimates may change: Additional $9.5 million is an
estimate and may change. Unforeseen issues may arise
during project.
Uncertain economic situation: rising inflation, supply chain issues, global unrest
Future borrowing for Public Safety Facility: Credit rating for borrowing rate dependent on financial picture
Less available funding for future projects
Planning now, looking at the full picture
Large capital projects will be spent across at
least 2 fiscal years, reducing impact on General
Fund, helping with cash flow
When project is bid, determine best available
funding
Budget Stabilization Set-aside of $2.0 million for
economic downturn, rising inflation on City’s
operating costs
Depending on economic situation, temporary,
build fund balance over a couple of strong
revenue years.
Next Steps –Council Direction Needed
FY 2022 Paving
project –out to bid
Should staff
continue to work
on these 6
projects?
Are there any
changes to
consider?
Questions
CIP Update –Item 12.A