Administrative
Report
N.2., File # 23-6986 Meeting Date: 11/7/2023
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
As part of the strategic planning process, the City Council requested staff update the Council, “on the status and prioritization of Capital Improvement Program (CIP) projects.” Currently, there are 126 projects in the CIP, which are in different stages of execution.
At the November 7 City Council meeting, staff will present the categorization and status of each project in the CIP, the methods historically used to prioritize the execution of projects, and give an opportunity for the Mayor and City Council to provide feedback on CIP delivery and specifically identify one project that each member would like prioritized.
BACKGROUND
Currently there are 126 projects in the CIP program, that are in different stages of development ranging from programmed to construction closeout. For prioritization purposes, CIP projects are categorized into seven categories, as defined below:
· Programmed - Project has been added to the CIP budget and received some level of appropriated funding
· Pre-Design - Staff has initiated work that is needed before beginning formal project design, such as planning review and entitlements, environmental study, public outreach, and/or conceptual design
· Design - The project has entered the formal conceptual plan and design development process in preparation of final construction plans and specifications and, if needed, permit acquisition · Procurement - Projects are in the process of being let for competitive bids, staff is evaluating those bids, or preparing documents to award and execute a construction contract · Construction - The construction contract has been executed, a notice to proceed with project construction has been issued and/or construction is underway · Completed - The project has been substantially completed and administrative closeout procedures are underway
· Ongoing - Projects that are part of the City’s regular and reoccurring maintenance and readiness programs, such as, annual sidewalk repairs, slurry seal application, restroom improvements, curb ramp improvements, residential street rehabilitation, etc.
N.2., File # 23-6986 Meeting Date: 11/7/2023
These categories are sometimes sequential, sometimes overlapping, and do not apply uniformly across all projects. For example, ongoing projects can be simultaneously classified in multiple categories due to the diverse nature of the work that is often carried out at multiple locations. Below is a breakdown of the number of projects currently found in each category:
Category CIP Projects
Programmed 22
Pre-Design 29
Design 22
Procurement 11
Construction 20
Completed 7
Ongoing 15
Since July 1, 2019, 58 projects have been completed, including 20 projects during FY 2022-23, which closed on or before June 30, 2023. One-off projects are removed from the list but cyclical programs with recurring applications (e.g. slurry seal or sidewalk improvements) stay on the list despite the latest phase being classified as complete.
It’s important to note that 57 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 included 10 new projects and the FY 2023-24 Budget included 17 new projects, including 12 through the final City Council budget motion.
There is a flexible framework in place that allows the Department to triage projects and move them forward proficiently while juggling the multiple priorities represented in the CIP. The budget adoption process 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 then, typically, emphasized through the strategic planning process.
While staff works diligently to complete each project, span of control limitations and current staffing levels limit the number of projects that can be active at any given time. In order to address these concerns, the City has utilized a number of on-call consulting contracts to accelerate project delivery.
While this method has increased efficiency, it still requires City staff to oversee the consultants’ work product.
The Department’s first priority is to complete projects that are in construction to minimize cost and limit facilities and/or amenities being out of service to the public. The Department also prioritizes seniority, as it pertains to the date the project was added to the CIP Budget, projects that are fully funded or have received specific Council priority direction (e.g. the two recent skatepark projects).
There are times when a project might be listed in the CIP budget for several years. A project may be funded for design but may not move to the procurement phase until all necessary funding is allocated and appropriated. Additionally, some CIPs, such as the City’s many storm water quality projects, are tied to regulatory requirements and timelines that must be prioritized to meet mandated deadlines.
CIP projects not falling into these categories are subject to a more methodical process. One-off, and larger public works projects, are assigned to a staff member in the Department’s Engineering Page 2 of 3 N.2., File # 23-6986 Meeting Date: 11/7/2023
larger public works projects, are assigned to a staff member in the Department’s Engineering Division. The preliminary design process then begins according to his/her 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 Divisions of the Department. This process often moves much faster because these projects entail little or no design effort, have fewer formal procurement requirements, and can be completed by City staff. Maintenance projects, by City Charter, can follow a simplified procurement process. Dog Run installation, Playground Rubberized Surfacing replacement, roadway striping, roof replacement, and a number or other facility projects fall into the maintenance project category. In the near future, staff plans to present an ordinance to Council that defines maintenance projects in line with amendments to the City Charter that were approved by the Redondo Beach voters in the most recent election. This will codify the definition of maintenance and define the procurement process for these projects in a way that will accelerate project delivery.
Staff holds monthly CIP status 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 and the City Council’s strategic plan. Staff is always seeking out ways to streamline the City’s CIP process and make pertinent information available to the public. Staff also welcomes feedback from the City Council on how best to disseminate project information to the community.
At this time, staff is recommending that the Mayor and each City Council Member identify one priority project to highlight from the current list of CIP projects. This project will then be placed on an accelerated path for completion, subject to the applicable project design needs and funding constraints. Depending on the nature and status of the projects selected by Council for prioritization, other projects may be moved down the list and take longer to execute. Staff will identify these impacts as best as possible during the priority discussion.
It would also be helpful for the City Council to identify projects that have been added to the CIP over the years that are now of less importance and encumber funds that could be otherwise directed to more critical projects.
COORDINATION
This report was coordinated with the City Manager’s Office.
FISCAL IMPACT
There is no immediate fiscal impact associated with this item. The Council’s direction on project prioritization will help inform future capital funding strategies and recommendations.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Categorized CIP Project List