May 23, 2023
Public Works
DATE: May 23, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
LaShonda White, Deputy City Manager, Community
Services
Mubeen Qader, Deputy Director of Finance
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works
Josef Munoz, Capital Projects Manager
Vrenesia Ward, Senior Budget Analyst
Avinesh Nadan, Senior Accountant
Subject:
Draft Five-Year Capital Improvement Plan (CIP) for Fiscal Year (FY) 2023-2024 through FY 2027-2028, with a focus
on the CIP for FY 2023-2024, and an update of the CIP for FY 2022-2023.
FINANCIAL IMPACT: Total proposed budget in the Draft Five-Year CIP is $107 million for FY 2023-2024. The majority of the CIP budget in FY 2023-2024 is appropriated to Transportation,
Parks, and Wastewater Collections and Treatment Plant
projects. The projects in outlying years of the CIP are for planning purposes and may be incorporated into future
budgets.
The City's CIP is funded through various funding sources, including but not limited to Grants, Gas Tax, SB-1,
Enterprise Funds, and the General Fund.
It is important to note that such financial planning
depends on projections of both revenue and project
costs. Given the economic impacts of various
international and national events, as well as inflationary pressure, final project cost may vary. As a result, City AGENDA
REPORT
May 23, 2023
staff will continue to monitor and update these costs as more information becomes available from project bidding and delivery.
PREVIOUS COUNCIL
ACTION:
n/a
STATEMENT OF THE
ISSUE:
City staff proposes the draft CIP budget for FY 2023-
2024. The draft CIP budget includes carry-over CIP
projects, project costs, and proposes additions to the CIP projects based on feedback from the City Council.
RECOMMENDED ACTION:
RECEIVE a report; and PROVIDE DIRECTION regarding
the Draft Five-Year Capital Improvement Plan (Fiscal
Year 2023-2024 – Fiscal Year 2027-2028) – Public
Works Department/Finance Department (Daniel
Chavarria 510-620-5478/ Robert Armijo 510-620-
5477/Josef Munoz 510-620-6671/Mubeen Qader 510-
621-2077).
BACKGROUND:
The City Council reviews the Five-Year Capital Improvement Plan (CIP) and evaluates the capital projects in the plan annually. The project expenditures for years beyond FY 2023-24 are provided for planning purposes only and do not reflect a City Council commitment of funds unless there is a guaranteed multi-year funding source. The Engineering Division of the Public Works Department (PW) is a key contributor to the definition of the scope, budget, schedule, and funding source(s) of each capital improvement project included in the Five-Year CIP.
In the City of Richmond (City), the Engineering Division of PW has experienced high staff turnover in the past four years. Long-term engineering staff with great institutional knowledge about the capital projects have either retired or left the City seeking other employment opportunities. The City had challenges filling these vacancies due to the tight labor market. Therefore, the Engineering Division did not have engineers for several months, which created a backlog of projects.
In March 2023, the Engineering Division of Public Works (PW) hired three new engineers, including a Capital Projects Manager. Given the fact that none of these new engineers have institutional knowledge in Richmond, it is taking longer to research and understand individual projects. The priorities of work for the new Capital Projects Manager are to:
May 23, 2023
1. Gather detailed information of all capital improvement projects and compile this information into a single spreadsheet to understand the magnitude of the City’s CIP and to assign resources accordingly.
2. Obtain reimbursements on grants that have allowable expenditures.
3. Analyze the available information of the Traffic Safety Program to create projects, based on the list of locations presented to City Council in November 2022, and start implementing the program.
4. Work with administrative staff to pay outstanding invoices.
The first two items were extremely time-consuming. Engineering and administrative staff from PW are working with Finance staff to reconcile the capital improvement projects information. Currently, there are approximately 50 capital improvement projects that pertain to parks, buildings, transportation, streets, and traffic calming, plus another 11 CIP projects in wastewater collections and treatment plant upgrades. Some of the identified projects require additional funding (e.g., Carlson Blvd. Crosstown Connections Improvements Project, 13th Street Complete Street Project, and Booker T. Anderson Community Center Fire Reconstruction Project).
Finance and Engineering staff continue to analyze the projects’ funding sources and expect that there would be additional projects with a funding gap. A complete analysis of the funding sources for all projects will require additional research and time from City staff. However, the Engineering staff will continue to implement projects that are fully funded. Project implementation is described in the Next Steps section.
In the upcoming months, the Engineering staff will provide regular CIP updates to the City Council and strive to refine the Five-Year CIP by FY 2023-2024 Mid-Year budget review.
DISCUSSION:
The current CIP pertains to the projected activities for FY 2023-2024. The following process was utilized for this update:
In November 2022, staff presented to the City Council a list of locations with traffic safety concerns and a methodology to prioritize measures to address these concerns. In the next few months, engineering staff will be working with traffic engineering consultants to develop projects and measures, based on City Council feedback and authorize budget for the Traffic Safety Program. On March 28, 2023, during the mid-year budget presentation to City Council, staff proposed project funding supplements. After receiving comments, staff incorporated changes to current approved projects.
Between March 2023 and May 2023, staff analyzed available information of capital improvement projects as explained in the Background section of this report.
The original CIP budget adopted on June 21, 2022, the Traffic Safety Program presented on November 2022, FY 2022-2023 Mid-Year budget additions, and
May 23, 2023
research compilation and analysis from new engineering staff, comprise the proposed CIP for FY 2023-2024.
The list of capital improvement projects funded for public roadways, sewer collections systems, wastewater treatment plant systems, parks, buildings, transportation, and traffic calming remain extensive. Any changes resulting from discussions before adoption of the Five-Year CIP will be included in next year’s budget for adoption in June 2023.
The Five-Year CIP, adopted on June 21, 2022, can be viewed on the City website at:
https://www.ci.richmond.ca.us/183/Budget_Documents
Once the Five-Year CIP is approved, the City Council can still delay or cancel individual projects before giving approval for a significant capital expenditure (over $10,000), if there are major drops in revenue or if project bids surpass their initial estimates.
ENVIRONMENTAL REVIEW:
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it has no potential for resulting in any direct or indirect physical change in the environment. Specific projects within the capital improvement program would continue to be evaluated individually under CEQA as the projects proceed.
NEXT STEPS:
While engineering staff continue to collect and analyze information about all capital improvement projects, the priority for FY 2023-2024 projects are to:
Implement projects that have a budget with clearly identified funding source(s) and are fully funded; and
Implement projects that have pressing due dates according to funding sources (e.g., grants) or reporting requirements.
In calendar year 2023, and as the available balances in projects and vendors’ contracts are more evident, PW staff will work with consultants in the development of the following programs and plans:
Pavement Management Program: The overall Pavement Condition Index (PCI) for the roadways in Richmond is 58. The PCI provides a snapshot of the pavement condition of the City streets and roadways. It is measured on a scale of 0 to 100 (where 100 means a newly paved road). Richmond’s score is considered “Fair” for the PCI range. The City Council has expressed their desire to increase Richmond’s PCI. This effort will require additional funding and a long- term plan, which starts with a Five-Year Pavement Management Plan (5-YR PMP). City staff will be working with a pavement engineering consultant to
May 23, 2023
develop the next 5-YR PMP and identify other funding sources for this program.
This program will generate capital improvement projects that will be added to the CIP in future updates.
Sidewalk Repair Program: The Richmond Municipal Code (RMC) states that it is the property owner’s responsibility to repair and maintain the sidewalk fronting their properties (see RMC 12.36.025 for specific language). The City Council has expressed their desire to develop a policy/program that addresses:
Disadvantaged property owners (i.e., similar to the Sewer Lateral Grant Program).
Street tree proximity to sidewalk and cost liability on property owner. Ability of the City to recover costs to rehabilitate sidewalks due to unresponsive property owners.
Opportunity for the property owner to gain “economy of scale” and eliminate cost of encroachment permit by “including work” as part of a larger “City” project and paying the City for improvements.
City staff plan to work with a vendor to assess the condition of the sidewalks city- wide and provide City Council a draft comprehensive sidewalk policy that includes cost to the City and property owners. This program will generate capital improvement projects that will be added to the CIP in future updates.
Traffic Calming Program: This program has been referred to as the “Traffic Safety Program”. City staff recommend modifying the name of the program to “Traffic Calming Program”. The City Council has expressed their desire to implement measures that provide traffic speed reduction and a safer traffic environment. PW staff will work with a traffic engineering consultant to identify measures and projects to address these concerns. This program will generate capital improvement projects that will be added to the CIP in future updates.
Zero-Emission Fleet and Infrastructure Ten-Year Transition Plan: To meet California's health-based air quality standards and greenhouse gas emission reduction goals, the cars we drive and the fuel we use must get as close as possible to zero emission. By 2035, all new passenger cars, trucks, and SUVs sold in California will have zero emissions. The City Council has expressed their desire to transition to a zero-emission fleet. Cit staff will be working with a consultant to develop a comprehensive transition plan that will take Richmond’s fleet and corresponding infrastructure from what the City has today to a zero- emission fleet in ten years.
This plan not only will include the gradual purchase of specific type of vehicles to add to Richmond’s fleet, but also will generate capital improvement projects that will be added to the CIP in future updates.
May 23, 2023
Facilities Needs Assessment: The City of Richmond has more than 50 facilities that require maintenance. These facilities are old and require many improvements (e.g., roofing, flooring, HVAC systems, paint, etc.). The City Council has expressed their desire to improve the conditions of these facilities.
City staff plan to work with a consultant to develop an assessment of all facilities, prioritize, and propose a plan to upgrade these facilities. This assessment will generate capital improvement projects that will be added to the CIP in future updates.
City staff members will incorporate revisions, as appropriate, and if approved, as part of the subject meeting’s discu ssions in the final adopted Five-Year CIP in June 2023. The Five-Year CIP will be utilized as a guide for project planning and implementation of projects. The Planning Commission may need to review the proposed CIP update at their meeting in July 2023, stating its conformity with the Richmond General Plan as required by State government codes.
DOCUMENTS ATTACHED:
Attachment 1 – Draft Summary of Projects by Department FY2023-24 – Proposed Attachment 2 – Draft Sources and Uses of Funds FY2023-24 – Proposed