Administrative
Report
N.6., File # 22-5214 Meeting Date: 2/21/2023
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
DISCUSSION AND POSSIBLE ACTION REGARDING THE STATUS AND PRIORITIZATION OF
CAPITAL IMPROVEMENT PROJECTS
EXECUTIVE SUMMARY
Goal 4 of the City Council’s recently revised Strategic Plan is to “Invest in the City’s Infrastructure.” One of the objectives is to “update the City Council on the status and prioritization of Capital Improvement Program (CIP) projects.” Currently, there are one hundred and seventeen (117) projects in the CIP, which are in different stages of execution, ranging from programmed (simply planned/budgeted) to in-construction (see the attached spreadsheet). CIPs are generally organized into six categories: programmed, preliminary engineering, design, procurement, construction, and ongoing.
Definitions
· Programmed - Project added to the CIP budget and a certain level of funding is appropriated · Preliminary Design - Project is assigned to a city engineer and/or on-call consultant to begin the planning, entitlement, environmental, and conceptual design process · Design - Conceptual plans have been approved and the design process continues to prepare final construction plans and specifications and to secure all needed permits · Procurement - Projects are in the process of being let for competitive bids, evaluating those bids, awarding a contract or finalizing and executing a contract · Construction - Project and contract have been executed and a notice to proceed with project construction has been given
· Ongoing - Projects that are part of the City’s regular and reoccurring maintenance and readiness programs, such as, slurry seal, restroom improvements, curb ramp improvements, residential street rehabilitation, etc.
In general, the City’s Public Works Department (Department) is tasked with managing the implementation of the CIP. The methodology the Department utilizes to implement projects on the CIP list is dependent on various factors, such as the date a project was programmed, funding availability, regulatory requirements, continuation of phased projects, City Council priorities, complexity of project, nature of work and available staff resources/expertise. As CIP projects are funded in the CIP budget, they are evaluated to determine the most direct and appropriate pathway to completion. Projects requiring design, right of way acquisition, environmental analysis and regulatory permitting are assigned to the Engineering Division. Other projects are best handled by the Department’s Maintenance/Operating Division, such as the routine restoration, readiness and
N.6., File # 22-5214 Meeting Date: 2/21/2023
the Department’s Maintenance/Operating Division, such as the routine restoration, readiness and reoccurring maintenance-related projects. Other projects require input from other City Departments, and/or the appropriate Board or Commission, and are spearheaded initially by staff outside the Public Works Department.
While the Department uses this methodology to assign and initiate work on CIP projects, the process is dynamic and subject to other extenuating circumstances. On certain occasions, funding opportunities present themselves with specific timelines that require a project to be pushed forward to take advantage of outside funding opportunities, especially if it is a Council priority. Furthermore, a new project might be added to an existing project to take advantage of favorable costs and to limit potential disruption to the public. The process in place creates a flexible framework that allows the Department to triage projects to move them forward proficiently while juggling the multiple priorities represented in the CIP. Staff have found that a stricter process does not generally accommodate the inherent variances in project funding and evolving public demands. Nevertheless, staff is also working to incorporate online tools to support public interest in the status and scope of projects included in the CIP.
BACKGROUND
Annually, the City Council conducts strategic planning sessions to set priorities, focus energy and resources, strengthen operations and establish common goals. This year, the City Council directed staff to report on CIP status and prioritization.
Currently there are one hundred and seventeen (117) projects in the CIP program, all in different stages of development ranging from programmed to in-construction. CIPs are categorized into several categories: programmed, preliminary engineering, design, procurement, construction, and ongoing. Currently there are 31 projects in either preliminary design or design, 17 projects in construction, and an additional 25 projects that are on-going. From FY 2019-20 to today, 42 projects have been completed.
It’s important to note that 40 new projects have been added to the CIP since FY 2019-20, 27 of which were added in FY 2021-22, including 14 through the final City Council budget motion. The FY 2022- 23 CIP Budget includes an additional ten (10) new projects. The Budget Adoption is the first level of prioritization that staff utilizes to arrange workload. The adopted CIP budget reflects the Council’s initial priority plan. High priority projects are typically emphasized through the strategic plan process.
While staff works diligently to complete each project, the span of control and current level of resources limit the number of projects that can be active at any given time. In order to address the workload limitations, the City has utilized an increasing number of consultants through on-call contracts in order to commence the planning and design phase of many projects and accelerate overall project delivery. While this method has increased efficiency it still requires City staff to oversee the consultants’ projects and work product. The City Council approved the addition of a CIP Construction Manager and an additional Civil Engineer as part of the FY 2022-23 budget. These positions are now filled and are already enhancing the Department’s ability to deliver CIP projects.
The Department’s first priority is to complete projects that are in-construction, given that they are fully funded and in process. The Department also prioritizes seniority as it pertains to the date added to the CIP Budget, coupled with fully funded projects, and specific Council priorities (e.g. skatepark project). There are times when a project might be listed in the CIP budget for several years, however, due to funding constraints, it can be in the design phase but will not move to the
N.6., File # 22-5214 Meeting Date: 2/21/2023
however, due to funding constraints, it can be in the design phase but will not move to the procurement phase until the necessary funding is allocated and appropriated. At the same time there are CIPs, such as many storm water quality projects, that have regulatory requirements and timelines for completion that must also be prioritized to meet mandated deadlines.
While the aforementioned projects are prioritized, the other programmed CIPs are subject to a more methodical process. Typically, public works projects are assigned to one of the engineering staff, who will commence the preliminary design process in accordance with their workload, the seniority of the project and the priorities of the City Council.
Alternatively, many CIP projects are considered maintenance projects that can be handled by the Operations’ Division of the Department. Often this process moves much faster because these projects entail little or no design effort. When processed as maintenance projects, a simplified procurement process is allowed by the City Charter. Examples of this type of project include dog runs, playground rubberized surface replacement, roadway striping, roof replacement and a number or other facility projects. These projects are often less complex and can be completed faster than Public Works projects.
Staff holds monthly CIP meetings with the City Manager, certain Department Heads, and key CIP staff to go over project progress and to ensure priorities are in line with the CIP Budget adoption and the strategic plan. Staff is always looking for ways to streamline the City’s capital process and make pertinent information available to the public. Staff also appreciates and welcomes feedback from the City Council on how best to disseminate project information to the community.
COORDINATION
This report was coordinated with the City Manager’s Office.
FISCAL IMPACT
There is no fiscal impact associated with this item.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Master CIP Spreadsheet