Tracy City Council
March 22, 2022

NOTICE OF SPECIAL MEETING

Pursuant to Section 54956 of the Government Code of the State of California, a Special Meeting of the Tracy City Council is hereby called for:

Date/Time: Tuesday, March 22, 2022, 6:00 p.m.
(or as soon thereafter as possible)

Location: Tracy City Hall
333 Civic Center Plaza, Tracy, CA.

Government Code Section 54954.3 states that every public meeting shall provide an opportunity for the public to address the Tracy City Council on any item, before or during consideration of the item, however no action shall be taken on any item not on the agenda.

This meeting will be open to the public for in-person and remote participation. In accordance with the California Department of Public Health Guidelines, universal masking indoors is recommended for all persons regardless of vaccination status.

Members of the public may participate remotely in the meeting via the following method.

For Remote Public Comment:

During the Items from the Audience, public comment will be accepted via the options listed below. If you would like to comment remotely, please follow the protocols below:
• Comments via:
o Online by visiting https://cityoftracyevents.webex.com and using the following Event Number: 2558 009 6693 and Event Password: TracyCC o If you would like to participate in the public comment anonymously, you may submit your comment via phone or in WebEx by typing “Anonymous” when prompted to provide a First and Last Name and inserting [email protected] when prompted to provide an email address. o Join by phone by dialing +1-408-418-9388, enter 25580096693#8722922# Press *3 to raise the hand icon to speak on an item

• Protocols for commenting via WebEx:
o If you wish to comment under “Items from the Audience/Public Comment” portion of the agenda:
 Listen for the Mayor to open “Items from the Audience/Public Comment”, then raise your hand to speak by clicking on the Hand icon on the Participants panel to the right of your screen.
 If you no longer wish to comment, you may lower your hand by clicking on the Hand icon again.
o Comments for the “Items from the Audience/Public Comment” will be accepted until the public comment period is closed.

• The total allotted time for public comment under “Items from the Audience/Public Comment” will be 15 minutes.

March 22, 2022 Special Meeting

1. Call to Order

2. Roll Call

3. Items from the audience - In accordance with Council Meeting Protocols and Rules of Procedure, adopted by Resolution 2019-240, a five-minute maximum time limit per speaker will apply to all individuals speaking during “Items from the Audience/Public Comment”. For non-agendized items, Council Members may briefly respond to statements made or questions posed by individuals during public comment; ask questions for clarification; direct the individual to the appropriate staff member; or request that the matter be placed on a future agenda or that staff provide additional information to Council.

4. CONSENT CALENDAR

4.A ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING REMOTE

TELECONFERENCE MEETINGS OF THE CITY COUNCIL AND ALL

LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD FROM MARCH 22, 2022 THROUGH APRIL 21, 2022 PURSUANT TO THE BROWN ACT

5. DISCUSSION ITEMS

5.A RECEIVE REPORT AND PROVIDE DIRECTION REGARDING THE
GENERAL FUND TEN-YEAR FORECAST FOR THE CITY’S GENERAL
FUND

5.B CONDUCT A CITY COUNCIL WORKSHOP TO REVIEW THE PROPOSED FY 2022-23 CAPITAL BUDGET AND THE PROPOSED FIVE-YEAR FY 2023- 2027 CAPITAL IMPROVEMENT PLAN (CIP) OUTLOOK AND PROVIDE

FEEDBACK

6. Council Items and Comments

7. Adjournment

Mayor

Posting Date: March 17, 2022
The City of Tracy is in compliance with the Americans with Disabilities Act and will make all reasonable accommodations for the disabled to participate in employment, programs and facilities. Persons requiring assistance or auxiliary aids in order to participate, should contact the City Manager’s Office at (209) 831-6000 at least 24 hours prior to the meeting.

March 22, 2022
AGENDA ITEM 4.A

REQUEST

ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING REMOTE

TELECONFERENCE MEETINGS OF THE CITY COUNCIL AND ALL LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD FROM MARCH 22, 2022 THROUGH APRIL 21, 2022 PURSUANT TO THE BROWN ACT

EXECUTIVE SUMMARY
During the City Council meeting on February 15, 2022, Council adopted Resolution No. 2022-016, which made findings and authorized remote teleconference meetings of the City Council and all legislative bodies of the City of Tracy, including Boards and Commissions, for the period from February 20, 2022, to March 21, 2022. In order to maintain compliance with Section 54953(e) of the Ralph M. Brown Act (Gov. Code section 54950 – 54963) which allows the continued use of teleconferencing, Council must make the required findings and re-authorize remote teleconferencing meetings of the legislative bodies for the City of Tracy.

This item requests that the City Council approve this proposed action for continued compliance with the Brown Act.

DISCUSSION
On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which among other things rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act.

As the Delta variant has surged in California, the Legislature took action to extend the COVID-19 exceptions to the Brown Act’s teleconference requirements, subject to some additional safeguards. On September 16, 2021, Governor Newsom signed Assembly Bill 361, to allow a local agency to use teleconferencing if certain circumstances exist without complying with the Brown Act’s traditional agenda posting, physical access, and quorum requirements for teleconferencing provisions (Attachment A).

The goal of AB 361 is “to improve and enhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options” consistent with Executive Order N-29-20. The bill contains an urgency clause, which made the bill effective upon signing with a sunset date of January 1, 2024.

The new Section 54953(e)(1) of the Brown Act, as amended by AB 361, allows legislative bodies to continue to meet via teleconference without complying with the Brown Act’s teleconferencing requirements, but only during a state of emergency Agenda Item 4.A
March 22, 2022

proclaimed by the Governor, in which, 1) state or local health officials have imposed or recommended measures to promote social distancing, or 2) the legislative body has determined by majority vote that meeting in person would present an imminent risk to the health or safety of the attendees.

A local agency that holds a meeting under these circumstances would be required by AB 361 to follow the steps listed below, in addition to giving notice of the meeting and posting agendas as required under the Brown Act. These additional requirements are intended to protect the public’s right to participate in the meetings of local agency legislative bodies.

Pursuant to AB 361 local agencies are required to do all of the following in addition to meeting notice requirements under the Brown Act:
• Allow the public to access the meeting and require that the agenda provide an opportunity for the public to directly address the legislative body pursuant to the Brown Act’s other teleconferencing provisions.
• In each instance when the local agency provides notice of the teleconferenced meeting or posts its agenda, give notice for how the public can access the meeting and provide public comment.
• Identify and include in the agenda an opportunity for all persons to attend via a call-in or an internet-based service option; the legislative body needs not provide a physical location for the public to attend or provide comments. • Conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the public.
• Stop the meeting until public access is restored in the event of a service disruption that either prevents the local agency from broadcasting the meeting to the public using the call-in or internet-based service option or is within the local agency’s control and prevents the public from submitting public comments (any actions taken during such a service disruption can be challenged under the Brown Act’s existing challenge provisions).
• Not require comments be submitted in advance (though the legislative body may provide that as an option) and provide the opportunity to comment in real- time.
• Provide adequate time for public comment, either by establishing a timed public comment period or by allowing a reasonable amount of time to comment.
• If the legislative body uses a third-party website or platform to host the teleconference, and the third-party service requires users to register to participate, the legislative body must provide adequate time during the comment period for users to register and may not close the registration comment period until the comment period has elapsed.

AB 361 also provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the bill’s exemption to the Brown Act teleconferencing rules.

Agenda Item 4.A
March 22, 2022

While the City Council and all of the City’s Boards and Commissions are currently meeting in person, making the required findings provides the City Council and Board and Commission members with the flexibility to participate via teleconference in meetings in the event of potential COVID-19 exposure or COVID-19 related concerns.

If Council approves the proposed resolution, staff will present a staff report to Council every thirty days to verify that the circumstances continue to exist.

STRATEGIC PLAN
This agenda item relates to the City Council’s Strategic Priorities in the area of Public Safety (Goal #1 Support COVID-19 Public Health Recovery).

FISCAL IMPACT
There is no fiscal impact related to this agenda item.

RECOMMENDATION
Staff recommends that Council adopt a resolution making findings and re-authorizing remote teleconference meetings of all legislative bodies of the City of Tracy for the period of March 22, 2022, to April 21, 2022, pursuant to the Brown Act.

Prepared by: Nancy Ashjian, Assistant City Attorney
Reviewed by: Adrianne Richardson, City Clerk
Karin Schnaider, Finance Director
Midori Lichtwardt, Assistant City Manager
Approved by: Michael Rogers, City Manager

ATTACHMENTS
A – Assembly Bill 361

ATTACHMENT A

RESOLUTION ____________

MAKING FINDINGS AND RE-AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE

CITY COUNCIL AND ALL LEGISLATIVE BODIES OF THE CITY OF TRACY FOR THE PERIOD OF MARCH 22, 2022, TO APRIL 21, 2022, PURSUANT TO THE BROWN ACT

WHEREAS, The City of Tracy is committed to preserving and nurturing public access and participation in meetings of the City Council; and

WHEREAS, All meetings of the City of Tracy’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code section 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and

WHEREAS, A required condition is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of a condition of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and

WHEREAS, A proclamation is made when there is an actual incident, threat of disaster, or extreme peril to the safety of persons and property within the jurisdictions that are within the City’s boundaries, caused by natural, technological, or human-caused disasters; and

WHEREAS, Imposed or recommended measures to promote social distancing, or, the legislative body meeting in person would present imminent risks to the health and safety of attendees; and

WHEREAS, On March 17, 2020, the City Council of the City of Tracy ratified the declaration of an emergency by the City Manager due to COVID-19 in accordance with Chapter 3.26 of the Tracy Municipal Code; and

WHEREAS, As a condition of extending the use of the provisions found in section 54953(e), the City Council must reconsider the circumstances of the state of emergency that exists in the City, every thirty days; and

WHEREAS, The City Council previously adopted a Resolution No. 2021-147 on October 19, 2021, finding that the requisite conditions exist for the legislative bodies of the City of Tracy to conduct remote teleconference meetings without compliance with paragraph (3) of subdivision (b) of section 54953; and

WHEREAS, The City Council does hereby find that COVID-19 has caused, and will continue to cause, conditions of peril to the safety of persons within the City that are likely to be beyond the control of services, personnel, equipment, and facilities of the City, and desires to affirm a local emergency exists and re-ratify the proclamation of a state of emergency by the Governor of the State of California; and

WHEREAS, As a consequence of the COVID-19 emergency persisting, the City Council does hereby find that all legislative bodies of the City of Tracy, including the City Council, Council ad hoc and subcommittees, and Boards and Commissions, shall continue to conduct their meetings without compliance with paragraph (3) of subdivision (b) of Government Code section 54953, as authorized by subdivision (e) of section 54953, and that such legislative bodies shall continue to Resolution 2022-

comply with the requirements to provide the public with access to the meetings as prescribed in paragraph (2) of subdivision (e) of section 54953; and

NOW, THEREFORE, BE IT RESOLVED, as follows:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution as findings of this City Council by this reference.

Section 2. Findings. The City Council hereby finds that due to COVID-19, including the Delta variant, holding City Council and other legislative body meetings in person will present imminent risk to the health and safety of attendees.

Section 3. Remote Teleconference Meetings. The City Council, including Council subcommittees, and all Boards and Commissions of the City of Tracy are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act for the period of March 22, 2022 through April 21, 2022.

The foregoing Resolution 2022-_____ was passed and adopted by the City Council of the City of Tracy on the 22nd day of March 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

___________________________
MAYOR

ATTEST:

____________________________

CITY CLERK
Mar ch 22, 2022
AGENDA ITEM 5.A

REQUEST
RECE

IVE REPORT AND PROVIDE DIRECTION REGARDING THE GENERAL
FUND TEN-YEAR FORECAST FOR THE CITY’S GENERAL FUND

EXECUTIVE SUMMARY
The purpose of a long-term forecast is to create a sustainable financial vision for the City. A budget forecast does not remain static; it is a dynamic tool that allows for consideration of the most reasonable outcomes. To that end, the forecast will continue to be updated at least annually. This will allow the City to better anticipate future challenges and opportunities, thereby creating a solid foundation to make strategic decisions about the City’s financial position. Further, the forecast is reflective of economic estimations and assumptions based upon what is known today, providing guidance on what may be coming ahead. It should be used to provide guidance and policy direction to staff for the development of the operating, capital, and liabilities budget. Following this discussion, staff will seek direction from the City Council on the City’s preliminary FY 2022-23 Operating and Capital Budget.

DISCUSSION
On Feb
ruary 18, 2020, staff presented the City Council with a mid-year report updating the General Fund projections for FY 2019/20 and the FY 2020/21, with no change in service levels. Building on those projections, staff has developed a 10- year General Fund forecast to anticipate future revenues and expenses for budget planning purposes. This forecast projected a deficit ranging from $5M in FY 2020/21 to $10M over the next decade. The deficit was amended after the statewide shutdown in response to the global pandemic and projected deficit grew to over $11M in adopted FY 2020/21 budget. The City took immediate steps to reduce expenditures, including a hiring freeze of select positions, reducing funding for capital purchases, and delaying certain programming.

In addi
tion, the City Council formed a Council Fiscal Sustainability Ad-Hoc Committee to guide the development of a long-term strategic plan to ensure the City can meet the growing service needs of the community. The Committee’s scope is to provide policy guidance as it relates to the development of a multi-year fiscal sustainability plan to address the City’s structural deficit and impacts associated with COVID-19. The Ad-Hoc Committee has considered a variety of short- and long-term budget strategies. The Committee’s effort resulted in the development and Council adoption of twelve key budget principles and multiple revenue enhancing and expenditure reducing budget strategies totaling nearly $18 million; of which, $13 million are actively being pursued. The Ad-Hoc reports back quarterly to the City Council, which has helped develop proposed spending plan for the ten-year forecast with an emphasis to fund liabilities, deferred maintenance, and capital improvements, and create a balanced budget throughout the ten-year forecast.

Agenda Item 5.A
March 22, 2022

Long-term Fiscal Planning: The City Council of Tracy remains committed to maintaining fiscal sustainability while providing high quality public safety, public works, and community development to meet its existing and future needs. In 2020, the Council adopted a two-year Strategic Priority Work Plan and identified desired outcomes related to the City’s social, economic, organizational, and environmental landscape. The Council adopted a governance strategy designed to retain and attract talent, enhance fiscal stability, improve the use of technology, and enhance transparency for the betterment of the community. In response, a set of strategic priorities, goals and objectives were adopted to carry out the vision of the City Council. The Council’s strategic priorities, along with their goals and objectives, are the foundation for development of the budget and forecast.

The City prepares a ten-year fiscal plan annually as a tool for the Council to meet these strategic priorities and budget development. The City’s fiscal strategy includes the creation of a financial forecast to evaluate current and future fiscal conditions and is to guide policy and programmatic decisions. As part of building the multi-year forecast, the City uses information based on past, current, and projected financial conditions and has developed and maintains several tools to provide analytic measurements of future fiscal impacts. First, the ten-year forecast includes two separate actuarial studies to analyze the impacts of employee retirement benefits on the City’s finances over time. One is focused on the fiscal impacts of pension and one on retiree medical costs. These reports are updated every 2-3 years based on Government Accounting Standards Board (GASB) rules.

Secondly, the City has three separate studies on revenue forecasts based on economic trends surrounding short and long-term retail and housing markets. The City overlays each of these studies into the planning documents to create a multi- faceted approach to fiscal analysis and planning.

The goal of the City’s annual Operating and Capital budget is to provide a plan that allocates resources to meet the needs and desires of Tracy’s residents. It balances City revenues and costs with community priorities and requirements. In preparing the FY 2022/23 Operating and Capital Budget, City staff reviewed the FY 2021/22 amended budget and estimated the expenditures and revenues anticipated for the next year, FY 2022/23. These trends are then applied to the short term (first five years) to see projected outcomes. It reflects current market conditions both for revenues and expenditures. The long-term (5-10 years) forecast applies a more conservative revenue and expenditure trends that are indicative of the restrictiveness of revenues while applying current spending to measure the City’s ability to sustain a fiscally balanced budget.

The economy is recovering both in housing prices that bolster property tax and diversification in commercial and retail that grows and strengthens the City’s sales tax, hotel, and business tax revenues. With that being said, the economy has natural growth and contractions that are outside of the City’s control. Even with solid financial planning and long-term forecasting, not all future outcomes can be predicted. Knowing that, the City has positioned itself well by building financial reserves, adopting strong fiscal policies, and passing important revenue measures Agenda Item 5.A
March 22, 2022

to support City services. However, even with these proactive steps, the City, like other
agencies, will continue to be faced with unmet needs in an environment where resources
are limited.

This has helped identify future revenue and expenditure trends that may have an immediate or long-term influence on government policies, strategic goals, funding obligations,
or community services. The City uses the five-year financial forecast as
a management tool to best anticipate inflows and outflows of City resources in the short-term, then projects out these trends into the longer ten-year model to ensure budget sustainability. Modeling of long-term strategies also allows marginal shifts to occur over time to maintain healthy reserves while still actively improving services to the public.

The forecast has become an integral part of the annual and mid-budget process.

General Fund Fiscal Challenges and Recovery: Almost two years ago, the world as everyone knew it changed and disrupted a growing and thriving economy.

COVID-19 emerged, causing a global pandemic that turned humanity’s life upside down.

From individual isolation to an abrupt disruption of international economies, uncertainty became the new normal. This uncertainty eventually extended to the City’s ability to address its existing budgetary shortfall given the fiscal impact on Tracy’s
local economy. Before the pandemic, the City’s expenditures were increasing faster than the revenue to support them. The City was projected to have a
third year of drawing down reserves in FY 2020-21 and was at risk of having reserves
drop below the City’s General Fund reserve policy. This challenge coupled with the
economic impacts of the pandemic only highlighted the City’s structural
deficit in 2020.

Shortly after the adoption of the FY 2021/22 Operating and Capital Budget, the City received the January-March 2021 Sales Tax (Bradley Burns State Sales Tax) disbursement from the State of California Department of Tax Franchise Administration (CDTFA), which resulted in a significant change in the City’s estimat
ed revenues. The result was due to a recent change in tax reporting by a predominant
sales tax producer. This reporting change shifted the tax allocation from a statewide allocation through the County sales tax pool where the tax was distributed pro-rat
a throughout the State to a local sales tax allocation based upon the businesses’
point-of-sale or fulfillment of the sale. The change will have a significant and material impact on the City’s General Fund revenues; nearly doubling the current
Sales Tax revenues for the City. The estimated revenues from the reporting change that resulted in a revenue growth of over $5 million a quarter.

In FY 2020/21, the General Fund estimated Sales Tax is expected to have an additional
$10 million over the estimated budget and in FY 2021/22, the General Fund estimated Sales Tax is expected to be $25 million over the adopted budget. With new ecommerce businesses expected to open in FY 2022/23, the Sales Tax forecast is expected to grow an additional $12M next year plus the economy
growth of 5% for the next 2-3 years.

Agenda Item 5.A
March 22, 2022

G
eneral Fund Fiscal Highlights:
• Revenue Trends
Property Tax: New housing units being added to the assessor's roll, coupled with commercial developments in the community, and higher property values, have led to a steady increase in local property tax revenues. Developments in the community, in conjunction with increased labor market, historically low interest rates, and high demand for housing, have all contributed to the strengthening of the General Fund revenue growth for the past five years. Property Tax revenue increased in FY 2021/22 over FY 2020/21 by $2.3M, approximately 9%. As property tax revenue lags 12-18 months behind market conditions, the City estimates it will continue to grow another 5-7% annually over the next 3-5 years based on market turnover and valuation growth. In the long-term (5–10-year term), the City will see property tax slow to the 2% cap as allowed under Proposition 13.

Sales Tax (Bradley Burns): As mentioned above, at the beginning of FY 2020/21, the City’s ten-year forecast showed year over year decline in reserves. The City’s expenses were outpacing revenues despite a thriving housing and commercial market. Fast forward one year to the last quarter of FY 2021/22, the City’s Bradley Burns Sales Tax has increased nearly 100% from prior years and has resulted in a significant change in the City’s estimated General Fund revenues. The growth in ecommerce and the City’s growing commercial base will continue into FY 2022/23 with a growth of $12M, plus it is projected to grow 5% annually in the short-term (3- 5 years). In the long-term, the projections flatten to reflect average growth of 2-3% annually.

Sales Tax from Bradley Burns is now more than 50% of the City’s total General Fund revenues because of this recent taxpayer allocation change. The City is currently tracking a policy discussion occurring within the League of California Cities to consider supporting legislation that would modify the allocation of Bradley Burns (1% of State Sales Tax) for ecommerce businesses statewide. This has the potential to have a significant impact to the City’s Sales Tax revenues and its long- term forecast. As a result, staff continues to recommend that the 10-year forecast only shows the current Bradley Burns Sales Tax revenues from ecommerce in the short term (5 years). The forecast has a decline of $40M in FY 2026-2027 to reflect the risk of the Sales Tax revenues being reduced. By placing this decline in the forecast, the City will have the flexibility to see the potential outcomes on a conservative basis to understand what these future impacts could generate.

M
easure V Sales Tax (Local Sales Tax): In November 2016, the City Council and voters passed an additional ½ cent local sales tax (known as Measure V) that has a twenty-year sunset (expires April 2037). Over the last five years, the City Council has adopted several resolutions, which prioritized Measure V Sales Tax to fund multiple amenities located in the City: The Aquatic Center, Multigenerational Recreation Center, Legacy Fields Sports Complex, Ritter Family Ball Park, and the Nature Park. These capital expenditures demonstrate the City Council’s Strategic Priority for improved Quality of Life and Economic Development as Tracy strives to Agenda Item 5.A
March 22, 2022

become a premier sports destination in the state. (See City Council Special Meeting on February 22, 2022 for more discussion on these and other CIPs.) Business License and Cannabis Tax. The City’s Business License Tax is currently calculated on a per employee basis and includes 14 different classifications. The tax has an annual minimum rate of $100 and maximum rate of $2,000, and currently does not include an inflation factor. The City currently issues approximately 5,452 business licenses annually and has generated $850,000 on average per year over the last 5 years. The City’s original Business License Tax was drafted in the 1970’s and was last updated in 1984. Its current structure does not reflect modern tax structures.

Staff is currently drafting an update to modernize the City’s Business License Tax to be based upon gross receipts to align with other jurisdictions. Under this model, the Business License Tax would be assessed on a business’ gross receipts generated within Tracy. Similar to income tax, the annual license tax is based on the prior year’s receipts. Gross receipts tax is typically based on an assigned tax rate associated with particular business classification. Rates are based on the business activity, including, but not limited to: manufacturer/ retail/ wholesaler, corporate headquarters, auto dealer, specialty contractor, professions, and recreation/entertainment. Modernizing the City’s business license tax could generate up to an additional $4M annually. If the City Council places the modernization of the Business License Tax on the November 2022 ballot, and if approved by the voters, the revenue will impact the forecast in 2-3 years; potentially offsetting some of the loss in revenue expected from the change projected in Sales Tax (1% Bradley Burns).

Additionally, cannabis tax is an overlay component of business license tax classifications. The City Council and voters approved a Cannabis Tax in 2020, which provided a gross receipts tax on retail, distribution, and manufacturing and a square foot tax on cultivation. This tax could potentially generate an additional $1- 2M annually in General Fund revenues.

Expenditure Trends & Assumptions
Bec
ause it takes people to provide services, the City’s General Fund personnel costs are 80% of operating expenses. Drivers of cost as it relates to personnel expenses over the forecast horizon include but are not limited to: changes in labor agreements, health care, and CalPERS normal cost and unfunded liability.

The Gene
ral Fund forecast is based upon the assumption of full staffing levels.

Although some attrition can be expected, it is difficult to rely upon personnel savings to reduce annual expenditures. In addition, it is uncertain when and where the vacancies may occur and their potential impact on service demands. It is not a good practice to rely upon salary savings as a permanent cost saving measure.

The Gene
ral Fund forecast includes an inflation factor of 3% for expenses in the short term and flattens to 1-2% in the long-term. This factor is used to maintain the current buying power of the City. The trends for non-personnel may rise higher than the forecast of 3% due to steep rise in fuel costs and supply chain disruptions currently in the market. Said another way, the inflation factor may result in the Agenda Item 5.A
March 22, 2022

Ci
ty’s costs rising higher than the forecast and reducing the overall buying power.

The City will continue to monitor the inflation rate on goods and services as it has historically outpaced the City’s revenue growth due to regulatory restrictions on revenues. Staff will continue to monitor the costs of goods and services and their impacts on a quarterly basis.

I
ncluded in the forecast is the direction staff received from the City Council for the development of the FY 2022/23 Operating and Capital Budget on December 7, 2021. In prior forecasts, staff had recommended a policy to begin funding deferred maintenance and capital replacement.

I
n the amended General Fund budget for FY 2021/22, revenue estimates are coming in $4M higher. Staff recommends increasing the deferred maintenance by $2M and pension/medical leave retirement pre-funding by $2M. Doing so would pay down the City’s pension liabilities as well as infuse the City funding to fix and maintain critical infrastructure such as roadways. This recommendation would not change the General Fund projected reserves. However, in the long-term forecast, all but the program increases will stop being funded in FY 2026/27, the same year the potential Sales Tax revenues could be reduced. As a result, the ten-year forecast shows that the General Fund is fiscally sustainable with the revenue growth from other tax sources and reduction on one-time funding commitments.

Table 1 below Summarizes Staff FY 2022/23 recommended budget augmentations. Table 2 on the next page Summarizes the General Fund’s Ten- Year Forecast and Estimated Reserves.

Agenda Item 5.A
March 22, 2022

Table 1: Summary of Recommended
General Fund On-Going Budget Augmentations
On-going
Revenue/(Expenses)
City Council
Direction
12/7/2021
Staff
Recommended
Augmentations
3/22/2022
Difference
Sales Tax $4M ($4M)
CalPERS pre-fund $1M $2M $1M
Retiree Medical pre-fund $1M $2M $1M
Deferred Maintenance* $3M $5M $2M
Program Increase $3M $3M
*
A report on Capital Improvement Projects (CIP) and deferred maintenance will follow this report. Per the City Council’s direction, Measure V funds continue to be committed to funding capital improvements and operations of City amenities. The CIP report will recap t
he direction from the City Council at the February 22, 2022 meeting, as well as seek direction for future General Fund capital projects.

C
hart 1: 10-Year Revenue and Expenditure Projections
(In Millions)
Projected Proposed Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Revenues 128 145 153 157 160 164 132 134 137 140
Expenditures 113 128 134 136 139 141 134 136 139 141
Surplus/(Deficit) 15 17 19 21 21 23 -2 -2 -2 -1
Table 2: 10-Year General Fund Forecast
(In Millions)
*The General Fund Budget in years 2028/2031 is considered balanced as the deficit is less than a 1% margin of error for either revenue/expenditures.
-
20 40
60 80
100
120
140
160
180
Expenditures Revenues
Agenda Item 5.A
March 22, 2022

GENERAL FUND RESERVES: The City’s General Fund is projected to have a surplus for the next five years, assuming the Sales Tax revenues collected today remain in place for the next five years. The annual surplus is estimated at $15M and could accumulate up to $120M.

Table 3: 5-Year General Fund Uncommitted Reserves
(In Millions)
Uncommitted
Fund Balance
Cumulative
Available for
Future CIP
Actual FY 2021 4 4
Projected FY 2022 15 19
Proposed FY 2023 17 36
Forecast FY 2024 19 55
Forecast FY 2025 21 76
Forecast FY 2026 21 97
Forecast FY 2027 22 119
Pre-funding Pension/Medical Leave Liabilities: At the close of FY 2021/22, the City will have a projected uncommitted fund balance over $30 million. During the December 7, 2021, Council meeting the City Council approved the recommendations from City Council’s Fiscal Sustainability Ad-Hoc Committee to begin setting aside funding for prefunding pension and retiree medical benefits, approximately $2M. Staff projects an additional $4M in revenues from Sales Tax and recommends increasing the pension/medical retirement benefit pre-funding to $4M annually. The forecast continues this trend for five years, setting aside $20M for staffing employee benefits and accelerating pension funding to mitigate future inflationary assumptions. The prefunding drops off in FY 2027 when Sales Tax is projected to decline.

Deferred Maintenance and Capital Improvement Project: During the December 7, 2021 Fiscal Sustainability Ad-Hoc’s update to the City Council, it was estimated that the City should be funding an average of $5-8M annually for parks, $3-5M annually for roads, and $2-4M annually for building and other improvements. Staff recommends transferring the remaining uncommitted fund reserves to the General Fund Capital Fund for future deferred maintenance and capital improvement projects, such as road, building, and park improvement projects. It is estimated that the City could potentially set aside $120M in future Capital funding in addition to the $6M it is funding over the five-year period. This funding drops off in FY 2027 when Sales Tax is projected to decline. These capital reserves could sustain the City’s deferred maintenance another 20 years at a spending rate of $6M.

Agenda Item 5.A
March 22, 2022

STRATEGIC PLAN
This agenda it
em supports Governance Strategic Goal 3: Ensure Short and Long-term Financial Sustainability.

FISCAL IMPACT
There is no
fiscal impact associated with this item. However, the ten-year forecast is critical in establishing financial policy. The forecasted outcome has the potential to improve or worsen. Some potential outcomes that would improve the forecast would include; higher employee vacancy rates (more vacant positions or vacancies for longer periods of time), delayed or weaker recessions, PERS investment gains, and stronger economic development activity beyond what is included in forecast.

Potential outcomes that could worsen the forecast include: PERS investment losses (or additional discount rate cuts), weaker revenue growth, fewer new hotel rooms, delays, or closures in commercial activities, inflationary or recessionary losses, adjustment in labor COLAs, staffing beyond current levels assumed in the forecast, and unplanned, one-time expenditures.

RECOMMENDATION
It is
recommended that the City Council receive the report and provide direction regarding the development of the FY 2022/23 General Fund Operating and Capital Budget. $4 $15 $17 $19 $21 $21 $22
0 20 40 60 80 100 120 140
Uncommited Fund Balance

IN MILLIONS
Actual FY 2021 Projected FY 2022 Proposed FY 2023 Forecast FY 2024 Forecast FY 2025 Forecast FY 2026 Forecast FY 2027
Prepared by: Karin Schnaider, Finance Director
Reviewed by: Midori Li chtwardt, Assistant City Manager Approved by: Mic hael Rogers, City Manager
Attachment A - Powerpoint

CITY COUNCIL

TEN-YEAR FORECAST UPDATE
GENERAL FUND FY 2022-2031
March 22, 2022

ATTACHMENT A
2 Presentation Outline
 Revenue and Expenditure
Trends
 Use of Reserves
 Increase Funding for Pension and
Medical Retirement Benefits
 Increase Capital Reserves
 Next Steps
Revenue and Expenditure Trends
3 Revenue Trends
4 •Property Tax
• Short Term: 5-7% growth
• Long Term: 2% growth
•Sales Tax
• Short Term: $12M growth from new commercial
spaces opening in FY 2022-23; plus 5% growth
• Long Term: 1-2% growth; loss of $40M in FY 2027
possible if ecommerce changes move forward
•Other Revenues
• Short Term: 3-4% growth
• Long Term: proposed Business License
modernization $4M; 1% growth
Expenditure Trends
5 •Salary and Benefits
• Short Term: 3-4% growth
• Long Term: 1-2% growth.
• Only considers current employee contracts
•Non-personnel
• 3% growth for standard inflation
• Current inflation rates are over 5%
Budget Development Recommendation
from December 7, 2021
$1M CalPERS (1% of revenues*)
$1M Retiree Medical (1% of revenues*)
$3M Deferred Maintenance (3% of revenues*)
$3M Program Increase (3% of revenues*)
-------
$8M budget increase
*Revenues defined as total General Fund revenues less
Measure V-Sales Tax and Transfers In
Future discussion: 10% of revenue add to future
community priorities pending survey
6 Summary of Budget Development
Revised Recommendations for General Fund
7 On-going
Revenue/(Expenses)
City Council
Direction
12/7/2021
Staff
Recommended
Augmentations
3/22/2022
Difference
Sales Tax $4M ($4M)
CalPERS pre-fund $1M $2M $1M
Retiree Medical
pre-fund
$1M $2M $1M
Deferred
Maintenance*
$3M $5M $2M
Program Increase $3M $3M
General Fund 10-year Forecast
FY 2022-2031
8 (in Millions) Projected Proposed Forecast Forecast Forecast FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues 128 145 153 157 160
Expenditures 113 128 134 136 139
Surplus/(Deficit) 15 17 19 21 21
Forecast Forecast Forecast Forecast Forecast
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Revenues 164 132 134 137 140
Expenditures 141 134 136 139 141
Surplus/(Deficit*) 23 -2 -2 -2 -1
General Fund 10-year Forecast
FY 2022-2031
9 -
20 40
60 80
100
120
140
160
180
Projected FY
2022
Proposed FY
2023
Forecast FY 2024 Forecast FY 2025 Forecast FY 2026 Forecast FY 2027 Forecast FY 2028 Forecast FY 2029 Forecast FY 2030 Forecast FY 2031 General Fund
Expenditures Revenues
(in Millions)
10 The City’s General Fund is projected to have
a surplus for the next five-years, assuming
the Sales Tax revenues collected today
remain in place for the next five years. The
annual surplus is estimated at $15M and
could accumulate up to $120M.
$4 $15 $17 $19 $21 $21 $22
0 20 40 60 80 100 120 140
Uncommited Fund Balance

IN MILLIONS
Actual FY 2021 Projected FY 2022 Proposed FY 2023 Forecast FY 2024 Forecast FY 2025 Forecast FY 2026 Forecast FY 2027

USE OF RESERVES
11 12
Use of Forecast
•The forecast is meant to provide
the City Council with potential
impacts that could have a long-
term impacts of the fiscal
sustainability of the General Fund.
• It provide indicators based on
current trends and
• Potential impacts as they are known
today
13 Use of Reserves:

Offset Future Costs and Revenue Instability
to Gain Fiscal Sustainability
Projected
Revenues/Expenses
• $40M in revenue
projections are temporary
• Expenses continue to rise
Prefunding Liabilities/New
Revenue Sources
• Prefunding deferred maintenance
• Prefunding employee retiree benefits
• Modernizing Business License Tax
Next Steps
15 Next Steps
•Receive a report on the proposed
Capital Improvement Projects
•Staff to return May 17, 2022 with
Preliminary Operating and Capital
Budget for FY 2022-23
•Staff to return in June with
proposed Modernization of
Business License tax for
consideration of new ballot
measure
Q&A
16 March 22, 2022
AGENDA ITEM 5.B

REQUEST

CONDUCT A CITY COUNCIL WORKSHOP TO REVIEW THE PROPOSED FY 2022-23 CAPITAL BUDGET AND THE PROPOSED FIVE-YEAR FY 2023-2027

CAPITAL IMPROVEMENT PLAN (CIP) OUTLOOK AND PROVIDE FEEDBACK

EXECUTIVE SUMMARY
The pur
pose of this workshop is to provide City Council with an overview of the proposed FY 2022-23 Capital Budget, as well as the proposed five-year FY 2023-2027 Capital Improvement Plan (CIP) Outlook. The five-year CIP Outlook is an essential part of the overall Capital Budget development in order to strategically plan for the community’s long-term capital maintenance, improvement, and replacement needs.

DISCUSSION
O
ver the last few budget cycles, departments have begun evaluating capital improvement needs and have compiled a five-year Capital Improvement Plan (CIP) Outlook into the FY 2022-23 budget planning. The CIP Outlook is a comprehensive five- year capital improvement plan designed to identify projects to construct, repair, maintain, or replace the City's infrastructure, which is consistent with the City Council's Strategic Priorities.

The C
apital Improvement Plan (CIP) Outlook is a schedule of proposed public projects and purchases over a five-year period. Capital improvements are projects, which require acquisition, construction, or replacement of City assets, amenities, infrastructure, facilities, and utilities (e.g. vehicle and equipment, public landscaping and parks, city buildings, storm drainage systems, roadways, sidewalks, utility lines and treatment plants, and more).

The pur
pose of the CIP Outlook is to:
• identify capital expenditures which are anticipated to be requested over a five-year period;
• determine a source of funding for the requests; and
• provide an opportunity for long-term planning.

The C
IP Outlook is not a budget. The CIP Outlook is a planning tool to assist in budget decisions and the allocation of resources required to meet the City’s strategic goals that are critical to core services. By preparing the CIP Outlook, the City can monitor and evaluate funding availability while taking into account new needs that are of priority. It is a driver in funding strategies and policies for establishing utility rates, applying for grants, allocation of resources, pay-go or debt financing, and understanding future ongoing, operating costs.

The C
IP Outlook is not static, but can and should be modified as new funding, regulations, priorities, urgency, and demands arise. It should be revisited at least Agenda Item 5.B
March 22, 2022

annually to provide the City Council, key stakeholders, and the public with information prior to the budget meetings to facilitate an informed discussion during the development of the annual Operating and Capital (CIP) Budget. This document does not include a complete compilation of all departmental or public requests that may be considered in preparation of future annual Operating and Capital budgets. In addition, not all projects listed have identified funding nor is funding being requested for appropriations. These costs are listed as unfunded. However, by listing the projects in the CIP Outlook, staff has identified these as priority projects in the event grants or other funding opportunities present themselves.

CIP Overview and Funding Source
A
capital project is defined as an undertaking wherein labor and/or materials are used to construct, alter, append or replace a building or an item of infrastructure (or a component of a building or item of infrastructure). A capital project has specific objectives, includes a detailed scope of work, schedule and budget, and typically has a total cost in excess of $50,000 with a typical useful life expectancy of ten or more years.

Capi
tal projects are typically categorized as “Capital Maintenance” (deferred and/or ongoing), “Capital Improvements” and “Capital Assets.” The first category includes projects that provide a major rehabilitation or a replacement to existing infrastructure and/or facilities required to provide essential public services, ensure asset preservation, and maintain health and safety. Examples include roadway rehabilitation, roof replacement, HVAC system upgrades, and removal and replacement of deteriorated water or wastewater pipes. The second category includes projects that expand existing infrastructure and/or facilities, or construct new facilities, to address present and future needs of the Community. Examples include Wastewater expansion projects, new parks and amenities, new roads and road widening projects. The last category includes new assets that have been purchased or that have been contributed from development.

Examples include new vehicles, land, major equipment and developer funded projects.

The C
apital Improvement Plan (CIP) Outlook is a comprehensive five-year plan designed to identify projects to develop and maintain the City’s infrastructure. The CIP Outlook aims to provide information on the basis for revenue projections, criteria to determine capital infrastructure needs, and present a broad overview of capital infrastructure needs and funding over the next five fiscal years.

I
t is comprised of current, new and future projects. Current projects are those that have been appropriated in the prior or current fiscal years, but not yet been completed. The CIP Outlook also reflects new projects that are to be funded in the proposed FY 2022-23 Operating and Capital Budget. Future projects are new projects that are anticipated to occur in the outer years of the five-year plan. Some projects have potential funding identified, while most projects do not have funding identified. There is a finite amount of funding available per year for CIPs and numerous unfunded needs. This gap in available funding negatively affects the sustainability of the city’s infrastructure and assets. It also increases the cost of maintenance and eventual replacement of these items. As funding sources are identified, the CIP Outlook will be amended to reflect the funding of these projections in the future projects to reflect the expected completion.

Agenda Item 5.B
March 22, 2022

The CIP Outlook is organized into groups by the type of project, such as Traffic Safety, General Government and Facilities, Streets and Highways, Parks and Recreation, etc.

Depending on the legal requirements, CIP projects are funded by various internal funding sources and rarely have outside funding sources, like grants or fees. For the past several years there has not been ongoing, dedicated funding sources to support General Fund capital projects (i.e. Fund 301). With the recent changes in revenues, as part of this workshop Council will have the opportunity to review staff’s recommendations for prioritize potential funding.

C
urrently, the majority of CIPs are funded through sources that have unique limitations on the use of funds, such as Special Revenue, Capital Impact Fees, or Utilities Enterprise Funds. CIPs are also supported through other funding sources, which may be comprised of developer contributions and various local, state, and federal grants. • S
pecial Revenue Funds receive revenues through dedicated fees or taxes, w
hich are legally restricted for specific (“special”) purposes. For example, Gas Tax monies must be spent on roadway and traffic safety improvements or repairs
.
• C
apital Projects Funds from Developer Impact Fees also support a number of CIP projects. The development impact fees collected in various areas of the C
ity and provide funding for specific infrastructure expansion associated with a par
ticular development and must be spent on the projects that were identified in establishing the fee. Examples include the Tracy Improvement Master Plan (TIMP) or Ellis Specific Plan which may be used for road, facilities, or utility expansion.
• Utilities Enterprise Funds: Water, Wastewater, Solid Waste, and Storm Water provide funding for projects from customer fees and are used to maintain, repair, or replace existing needed utilities infrastructure.

CI
P’s can also be funded through Internal Service (IS) Funds. IS Funds secure revenue through charges to other funds, but do not receive revenue directly from outside funding.

They are designed to support city-wide services, including information technology, building maintenance, risk management, and vehicle and equipment replacement. The costs of equipment, vehicle, technology, and building maintenance and replacement are reported in these funds. Many of the projects associated with IS Funds have budgets for small capital assets under $50,000 each, but collectively may exceed this threshold.

When this occurs, the budget is reflected in the department’s operating budget. For example, minor building repairs or upkeep would not be reflected in a CIP Outlook.

Capital Improvement Plan Outlook Estimates by Categories B
elow is a summary of the proposed FY 2022-23 Capital budget for new items and the CIP Outlook for 2022-2027. Please note that the City has been returning to a five-year outlook on capital and many lists are still under development. The CIP Outlook is not reflective of all of the City’s capital “Major Maintenance” (deferred and/or ongoing) or “New Public Improvements” needs. The report represents capital projects and programs prioritized to maximize the available resources reflective of their restrictive use and purpose. This report will continue to be monitored, updated, and reported at least Agenda Item 5.B
March 22, 2022

annually to the City Council with a goal of eventually reporting out the full list of capital needs throughout the city.

The C
IP is organized into groups by the type of project. Groups include:
• G
roup 71: General Government and Public Safety Facilities • Group 72: Traffic Safety
• Group 73: Streets and Highways
• Group 74: Wastewater Improvements
• Group 75: Water Improvements
• Group 76: Drainage Improvements
• Group 77: Airport and Transit Improvements
• Group 78: Parks and Recreation
G
roup 71: General Government and Public Safety Facilities: This category includes new construction, maintenance, and rehabilitation of City facilities, such as fire station renovations, roof replacement, HVAC system replacement, and facility expansions. It also encompasses other general capital projects, such as police equipment replacement, Public Safety and Facilities master plan updates, and vehicle and equipment replacement. The funding source for General Government and Public Safety Facilities projects comes primarily from the General Capital Projects (Fund 301) or Internal Service Funds. These funds are supported almost exclusively from transfers from the City’s General Fund.
• Proposed FY 2022-23 Capital Budget
There are three new proposed projects recommended for the FY 2022-23 to be funded from General Fund Capital Projects:
 Police Headquarters Cooling System Study, engineering study of the existing closed loop water system that is experiencing frequent failures.

Once the study is complete, this will determine funding needed for HVAC overhaul.
 Central Garage Carport Enclosure, this will enclose carport area that is located to the north of central garage. Request is to fund for design, once complete request for construction funding in FY 2023-24.  Grand Theatre Audio Visual Upgrades, the historic Grand Theatre will celebrate 100 years in 2023. The facility was reopened 15 years ago and needs audio-visual equipment upgrades. This project will replace outdated audio and lighting equipment, including replacement of existing the older audio system with modern line array speakers and change the stage lighting in the Eleni Kounalakis Theatre to energy efficient LED stage lighting.

Agenda Item 5.B
March 22, 2022

New Proposed Projects (3)
Project Name Fund FY2022/23 FY2023/24
Police Headquarters
Cooling System Study
301 - General
Projects 80,000 -
Central Garage Carport
Enclosure
301 - General
Projects 50,000 550,000
Grand Theatre Audio
Visual Upgrades
301 - General
Projects 800,000 -
Total 930,000 550,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
12,723,530 4,300,000 930,000 550,000 - - - - 18,503,530 G
roup 72: Traffic Safety: This category involves maintenance and upgrading of the City’s existing roadways as it relates to traffic safety. Common projects include design and installation of new roadway, intersection, and traffic signal improvements to ensure adequate, safe, and efficient movement of traffic throughout the City. Funding for these projects comes from Special Revenues (Gas Tax), Grant Funding, and developer impact fees, when applicable.
• P
roposed FY 2022-23 Capital Budget
Ther
e are three new proposed funded projects for Traffic:
 CIP 72125, Intersection Improvements & Traffic Signal Installation at Valpico & Corral Hollow, this project will involve the complete roadway improvements at the intersection of Valpico Road and Corral Hollow Road, including roadway widening, curb, gutter and sidewalk installation, drainage, addition of lanes, and installation of traffic signal poles and equipment. This project will be funded by CORE Area Traffic Impact Fees.
 CIP 72126, Street Light Installation Project, this project will install ne w
s
treetlights at residential, collector and arterial streets which are lacking sufficient street lighting. This project will be funded through Gas Tax.  CIP 72127, Traffic Signal Equipment Replacement, this project will assist in upgrading the existing 170 signal controllers to 2070 signal controllers, replace signal cabinets and/or meter pedestals, and install battery- backups and supporting equipment at certain high priority signalized i
ntersections.

Agenda Item 5.B
March 22, 2022

New Proposed Projects (3)
Project
Number Project Name Fund FY2022/23
72125 IS & TS: Installation at
Valpico & CH
375 - Core Area
Traffic 2,000,000
72126 Street Light Installation
Project 245 - Gas Tax 150,000
72127 Traffic Signal Equipment
Replacement 245 - Gas Tax 200,000
Total 2,350,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
4,774,781 - 2,350,000 1,725,000 - - - - 8,849,781 G
roup 73: Streets and Highways: The Streets and Highways category of projects encompasses the maintenance/replacement or construction of new/existing sidewalks, street, and roadways. Examples include the new I-205 freeway interchanges, Corral Hollow Widening, various roadway reconstructions, rehabilitations, extensions, and widening, as well as sidewalk improvements. Funding for these projects comes from Special Revenues (Gas Tax), Grant Funding, and developer impact fees, when applicable.
• Proposed FY 2021-22 Capital Budget
There are 7 new proposed projects for FY 2022-23 for Streets.  CIP 73186, Pavement Rehabilitation: Pavement rehabilitation by overlays or reconstruction is essential to reach the City's goal of achieving higher overall Pavement Condition Index (PCI) value for the roadway network.

PCI is a numerical index which is used to indicate the general condition of a pavement section. Available funding is dependent on previous year's pavement rehabilitation projects carryover funds, and the Road Repair and Accountability Act of 2017 (SB1) funds received during the current fiscal year.
 CIP 73187, Slurry Seal: Performing Slurry Sealing of various street segments as preventative maintenance.
 CIP 73188, Annual Sidewalk, Curb, and Gutter Repair
Agenda Item 5.B
March 22, 2022

 CIP 73189, Street Repair Program, this project will be an ongoing funding am
ount allocated for contracted medium-term repairs of roadways.  CIP 73190, Valpico Road Widening - Tracy Blvd to MacArthur Drive, this pr
oject will involve the roadway widening of Valpico Road from Tracy Blvd t
o MacArthur Drive, with two lanes in each direction, complete with all necessary improvements like curb, gutter, sidewalk, median, irrigation facilities, landscaping, drainage facilities, street lighting, signage and s
triping.
 CIP 73191, Grant Line Road Widening Project, this project will involve the roadway widening of Grant Line Road from Bryon Road to Lammers Road, with two lanes in each direction, complete with all necessary improvements like curb, gutter, sidewalk, median, irrigation facilities, landscaping, drainage facilities, street lighting, signage and striping, and
any
modifications to the signals in this corridor.
 CIP 73192, Reconstruction Bessie Avenue Between Lowell Avenue and G
rant Line Road, Bessie Avenue Rehabilitation from Lowell to Grant Line:

Replace water, sewer and storm drain mains, water and sewer laterals, remove and replace pavement, sidewalks, curbs and curb ramps, and street trees (as necessary).

New Proposed Projects (7)
Project
Number Project Name Fund FY2022/23 FY2023/24
73186 Annual Pavement
Rehabilitation Project
242 - Transp
Sales Tax 540,000
245 - Gas Tax 135,000
248 - SB1 RMRA 1,300,000
73187 Annual Slurry Seal Project 261 - ISTEA 600,000 73188 Annual Sidewalk, Curb, and
Gutter Repair 245 - Gas Tax 250,000
73189 Street Repair Program 245 - Gas Tax 200,000 73190 Valpico Road Widening - Tracy
Blvd to MacArthur Drive
375 - Core Area
Traffic 10,000,000
73191 Grant Line Road Widening
Project
375 - Core Area
Traffic 5,000,000
73192
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
301 - General
Projects 400,000 3,000,000
Total 18,425,000 3,000,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
53,288,609 - 18,417,000 6,133,000 6,025,000 6,025,000 6,025,000 30,002,290 125,915,899 Agenda Item 5.B
March 22, 2022

G
roup 74: Wastewater Improvements: Maintenance of and improvements to the City’s wastewater infrastructure and treatment facility are included in this category. Typical projects in this category include upgrades, extensions, and replacements to wastewater treatment lines and equipment, and expansion of the wastewater treatment plant. The primary sources of funding for these projects comes from customer and developer impact fees, when applicable. As part of the five-year CIP Outlook, the Wastewater Fund has proposed several unfunded Capital Maintenance projects that have been deferred, such as sewer line replacement, treatment plant upgrades and improvements, and manhole cover replacement. The City will be seeking bond financing and a customer rate study to potentially fund priority projects over the next five years, in addition to using developer impact fees and seeking various infrastructure grants. • Proposed FY 2022-23 Capital Budget
There is one new proposed project for FY 2022-23 for Wastewater Improvements.  74166 Reconstruction Bessie Avenue Between Lowell Avenue and Grant Line Road, Bessie Avenue Rehabilitation from Lowell to Grant Line: Replace water, sewer and storm drain mains, water and sewer laterals, remove and replace pavement, sidewalks, curbs and curb ramps, and street trees (as necessary).

New Proposed Projects (1)
Project
Number Project Name Fund FY2022/23 FY2023/24
74166
Reconstruction Bessie
Avenue Between Lowell
Avenue and Grant Line Road
252 - ARPA 216,000 1,684,000
Total 216,000 1,684,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
38,818,041 - 216,000 1,684,000 - - - 20,390,000 61,108,041 G
roup 75: Water Improvements: Water projects include the purchase of water supply, installation of new water infrastructure (pipeline, pump stations, water tanks, etc.), and rehabilitation/replacement of water infrastructure throughout the City. The primary source of funding comes from customer service rates, developer impact fees, and occasionally grants, when applicable. The Water Enterprise Fund has proposed several unfunded Capital Maintenance projects (e.g. water line replacement, treatment plant upgrades, well site studies and design, storage/reservoirs). There is limited funding for Agenda Item 5.B
March 22, 2022

new projects at this time as the Water Fund continues to build reserves for future pay-go projects.
• Proposed FY 2021-22 Capital Budget
There is one new proposed project for FY 2022-23 for Water Improvements.  75164 Reconstruction Bessie Avenue Between Lowell Avenue and Grant Line Road, Bessie Avenue Rehabilitation from Lowell to Grant Line:

Replace water, sewer and storm drain mains, water and sewer laterals, remove and replace pavement, sidewalks, curbs and curb ramps, and street trees (as necessary).

New Proposed Projects (1)
Project
Number Project Name Fund FY2022/23 FY2023/24
75164
Reconstruction Bessie
Avenue Between Lowell
Avenue and Grant Line Road
252 - ARPA 192,000 1,558,000
Total 192,000 1,558,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
11,716,341 1,200,000 192,000 1,558,000 - - - 16,100,000 30,766,341 G
roup 76: Drainage Improvements: This category of projects includes storm drain line replacements, installation of new storm drain lines, channel improvements and pump station upgrades. The primary source of funding comes from customer and developer impact fees, when applicable. The Storm Drain Enterprise Fund does not currently have the funds to support capital projects at this time and will continue to compile unfunded proposed projects as part of future planning.
• P
roposed FY 2022-23 Capital Budget
Ther
e are no new proposed projects for Drainage Improvements. • P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
3,000,547 - - - - - - 8,700,000 11,700,547
Agenda Item 5.B
March 22, 2022

G
roup 77: Airport and Transit Improvements: The maintenance and upgrades to the Tracy Municipal Airport, transit system improvements, and bus replacements are included in this category. The primary source of funding for this group comes in the form of grant funding from Transportation Development Act (TDA), Federal Transit Administration (FTA), and other grants. There are currently no new proposed projects for the Airport as they continue to finish out the Airport Layout Plan, which is necessary before an update can be done to the Airport Master Plan; once completed the department will begin evaluating potential capital projects to include in future CIP Outlook reports.
• Proposed FY 2022-23 Capital Budget
Ther
e are no new proposed projects for Airport and Transit Improvements. • P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
5,799,266 - - - - - - 250,000 6,049,266
G
roup 78 Parks and Recreation Improvements: This category consists of park and civic amenity construction, improvements, and maintenance. This category includes park improvements, bikeway improvements, playground equipment replacement, aquatics center, etc.

The P
arks and Recreation Department is currently going through a comprehensive update of its Citywide Parks, Recreation and Trails Master Plan. This document will outline a long-range vision for the City’s system of parks and trails that responds to the community’s aspirations. An entire chapter of this document is dedicated to implementation and creates a framework for improving existing parks over the next 15 years. Since this policy document is not yet complete, the five-year CIP Outlook for Group 78 projects is very much a working document. The current project list takes into consideration a number of the priority project needs for renovating and expanding the City's current park and recreation amenities, but is not a full account of all parks projects over the next five years, as staff is finalizing the master plan. Staff, along with the consultant team, plans to present the master plan document along with key findings later this year, which will highlight many key community priorities for new and existing parks and recreation amenities.
• Proposed FY 2022-23 Capital Budget
There are five new proposed projects for FY 2022-23 for Parks Improvements.

Agenda Item 5.B
March 22, 2022

 Florence Stevens Park & Greenway Improvement, renovation of the playground, rehab of the sport court including replacement of equipment and addition of lighting, pathway lighting throughout greenway, r
eplacement of site furnishings, landscape enhancements, and drought tolerant conversions, ADA barrier removal/improvements, and enhanced pedestrian crossings at street intersections.
 Edgar Thoming Park Improvement, this project would include renovation of
the tennis and basketball courts including surfacing, lighting, and fencing upgrades.
 A.R. Glover Park Improvement, this project would include renovation of the playground, a new picnic area, renovation of the sport court including addi
tion of court lighting, pathway lighting throughout park, ADA barrier removal, landscaping and site furnishing replacements.
 BMX Pump Track, construct a new 1/2 acre BMX pump track (bike park) in an existing City park. The project would create a looped asphalt track with a sequence of rollers and berms for bike riders. Associated improvements would include earthwork, drainage, accessibility, s haded
s
eating as well as related site furnishings, and landscaping.

New Proposed Projects (5)
Project Name Fund FY2022/23
Florence Stevens Park &
Greenway Improvement
242 -
Transp
Sales Tax
75,000
271 - LMD 475,000
Edgar Thoming Park
Improvement
301 -
General
Projects
525,000
A.R. Glover Park
Improvement
301 -
General
Projects
875,000
BMX Pump Track
301 -
General
Projects
1,000,000
Total 2,950,000
• P
roposed Capital Improvement Plan Outlook 2022-2027
Active New < - - - - - Projected - - - - - >
Carryover
FY
2022/23
FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
34,839,020 28,075,000 2,950,000 3,250,000 55,500,000 2,675,000 3,000,000 29,000,000 159,289,020 Agenda Item 5.B
March 22, 2022

Current Council Direction on Measure V Projects
A
s part of the annual CIP Outlook discussion, the City Council held a workshop to review the Measure V priorities and project timelines of the amenities based on available funding. At the February 22, 2022 City Council Workshop, the City Council gave direction to staff on project delivery for the Measure V major amenity projects. Below is a summary of the direction received from the City Council at the meeting:

1. A
llocate $40 million ($31 million from Measure V and $9 million other sources) to the Multi-generation Recreation Center project and construct the project in one phase.

2. Expansion of debt financing to include the Rec Center for $31 million, commit Measure V reserves to the Aquatic Center’s $55 million (City) budget and construct the project in one phase.

3. Commit $3 million in Measure V funds to begin the feasibility and design s
tudy of Ritter Family Ball Park.

4. Commit $1 million in Measure V funds to begin design of Nature Park Phase 1.

STRATEGIC PLAN
Thi
s agenda item addresses Goal 2 of the Governance Strategy to Ensure short and long-term fiscal health and Goal 3 of the Governance Strategy to increase public awareness around City finances and other civic matters.

FISCAL IMPACT
The C
apital Improvement Plan (CIP) Outlook is not intended to provide for precise budgeting assumptions. Capital costs are projected as estimates. Upon each update of the plan, deletions, additions, delays, or other revisions may occur, reflecting changing community needs and Council priorities. These changes allow for budget refinements as a particular project nears actual construction. The CIP Outlook should return to the City Council at least annually for consideration of new and future projects.

The adopt
ion of the CIP Outlook does not provide for appropriations of funds into the City’s budget. This process is done separately through the adoption of the annual Operating and Capital Budget (on or before June 30 each year). If any of the projects listed in the Operating and Capital Budget require additional funding or changes, amendments to those individual projects would return to the City Council both through quarterly budget updates and/or through annual adoption of the City’s Operating and Capital Budget for requests for appropriations.

I
n addition to developing a five-year Capital Improvement Plan Outlook, staff has been reviewing the on-going maintenance and replacement costs that are associated with construction of new infrastructure, facilities, and amenities; as well as looking at the cost Agenda Item 5.B
March 22, 2022

to maintain and replace existing city assets. These costs are continuously absorbed into existing budgets that are already heavily strained to meet deferred maintenance and replacement needs. This is true across all funds, General Fund, Special Revenue, Capital, and Utilities. As part of the City Council’s Fiscal Sustainability Budget Strategies, staff will undertake several maintenance and operations fiscal analysis studies to assess the full cost of operating, maintaining and planned replacement of its various capital assets. These will be captured within future versions of the five-year Capital Improvement Plan (CIP) Outlook and the City’s annual Operating and Capital budget development.

RECOMMENDATION
It is recommended that the City Council receive this report and provide feedback on the proposed FY 2022-23 Capital Improvement Program (CIP) budget.

P
repared by: Felicia Galindo, Budget Officer
R
eviewed by: Karin Schnaider, Director of Finance
Midori Lichtwardt, Assistant City Manager
A
pproved by: Michael Rogers, City Manager

ATTACHMENT
A - FY 22-23 Draft Summary CIP 5 Year Plan
B - Powerpoint Presentation
Group 71: General Government and Public Safety Facilities FY2023/24 FY2024/25 FY2025/26 FY2026/27
71027 Retrofit Water Tower 6th St 301 - General Projects 210,000 204,368 - - - - - Rennovation of tower 71078 Radio Tower @ Fs #96/#92 301 - General Projects 118,080 89,175 - - - - - There are existing gaps in radio transmission
coverage within the City. The two new radio
towers will improve communications between Fire
facilities and provide improved service area radio
coverage.
71109 Fire Training Tower Site 605 - Equip Replacement 450,000 340,669 - - - - - A fire department training tower site for site improvements at NEI reservoir.
231 - Asset Forteiture 250,000 250,000 - - - - - 301 - General Projects 3,065,164 199,059 2,800,000 - - - - 367 - TIMP Public Safety 200,000 144,940 - - - - - 605 - Equip Replacement 200,000 114,074 - - - - - 301 - General Projects 2,085,000 2,085,000 - - - - - 615 - Building Maintenanc 415,000 290,766 - - - - 252 - ARPA 4,500,000 2,952,097 1,500,000 - - - - 261 - ISTEA 329,400 325,912 - - - - - SJC - General Fund 3,661,113 3,661,113 - - - - - 268 - Comm Dev Block Gra 833,498 779,160 - - - - - 282 - Housing Successor 690,000 479,458 - - - - - 71113 Station 91 Renovations 301 - General Projects 365,000 269,312 - - - - - Fire Station 91 was constructed with shared
dormitory rooms. The existing rooms are being
reconfigured to create separate sleeping quarters
to help prevent transimission of illnesses, like
Covid-19, between and to provide adequate
privacy.
71114 PD Communications Sofware 367 - TIMP Public Safety 167,000 44,677 - - - - - The software purchase is considered part of the
original project, there will be additional annual
costs of $40,000 that will be included in the Police
Operational budget starting in FY2022/2023.
71115 Cardiac Monitors 252 - ARPA 293,750 293,750 - - - - - Replacement of 10 ECG cardiac monitors currently
in use by the South San Joaquin County Fire
Authority (SSJCFA).

Funding
Request
FY22/23
< - - - Projected - - - >
DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Multipurpose Reality Based
Training Facility
Grand Theater Repair
Temporary Emergency Housing
71110
71111
71112
Provide a new 48' x 60' prefabricated classroom at
existing range facility
Emergency Repairs for the Grand Theater
Construction of a secured, temporary housing
facility on a 0.8 acres City owned property on
Arbor Road.

ATTACHMENT A
Group 71: General Government and Public Safety Facilities FY2023/24 FY2024/25 FY2025/26 FY2026/27
Funding
Request
FY22/23
< - - - Projected - - - >
DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
71116 El Pescadero Park Wall
Extension 301 - General Projects 200,000 200,000 - - - - - This project will provide for an approximately 360'
extension of the existing CMU wall located along
the western edge of El Pescadero Park. The new
wall will tie into the existing CMU wall in this area
and extend northward toward Kavanagh Ave.

During the December 21, 2021 Council meeting,
Council asked the City Manager for an opportunity
to fund the extension of the wall along this area.
71XXX Police Headquarters Cooling
System Study 301 - General Projects 80,000 - 80,000 - - - - Engineering study of the existing closed loop
water system that is experiencing frequent
failures.
71XXX Central Garage Carport
Enclosure
301 - General Projects 600,000 - 50,000 550,000 - - - Enclose carport area that is located to the north of central garage
71XXX Grand Theatre Audio Visual
Upgrades 301 - General Projects 800,000 - 800,000 - - - - The historic Grand Theatre will celebrate 100
years in 2023. The facility was reopened 15 years
ago and is in need of audio visual equipment
upgrades. This project will replace outdated audio
and lighting equipment, including replacement of
existing the older audio system with modern line
array speakers and change the stage lighting in
the Eleni Kounalakis Theatre to energy efficient
LED stage lighting.

Totals 19,513,005 12,723,530 5,230,000 550,000 - - - Group 72: Traffic Safety
FY2023/24 FY2024/25 FY2025/26 FY2026/27
72095 TS: CHR & Valpico 354 - Industrial SP, South 300,000 243,217 - - - - - Installation of fully activated vehicular and pedestrian traffic signal at the intersection.
242 - Transp Sales Tax 701,250 690,588 - - - - - 245 - Gas Tax 100,163 92,602 - - - - - 242 - Transp Sales Tax 330,000 330,000 - - - - - 331 - Ellis Area Traffic 300,000 235,721 - - - - - 363 - TIMP Traffic 295,000 236,773 - - - - - 242 - Transp Sales Tax 877,250 828,624 - - - - - 245 - Gas Tax 100,000 100,000 - - - - - 242 - Transp Sales Tax 230,000 230,000 - - - - - 245 - Gas Tax 50,000 38,163 - - - - - 72117 Traffic Cameras
Repair/Replacment 245 - Gas Tax 50,000 49,482 - - - - - 72118 Upgrade & Main of Traffic
Management Center Software 245 - Gas Tax 140,000 139,277 - - - - - This project will upgrade the existing Traffic
Management Center Software to the current
version.
245 - Gas Tax 8,000 (7,065) - - - - - 261 - ISTEA 72,000 22,238 - - - - - 72121 IS Imp Grant Line & MacArthur 363 - TIMP Traffic 160,715 150,161 - - - - - This project will install a fence on the concrete
median on Grant Line Road, west of MacArthur
Drive.
72122 Holly Drive Pedestrian &
Bikeway Improvements 245 - Gas Tax 105,000 105,000 - 1,725,000 - - - On Holly Drive between 11th Street and Clover
Road, install Class 3 bike route, Class 2 bicycle
lanes, sidewalk, pavement patching, slurry seal,
signage, striping, and pavement markings.
242 - Transp Sales Tax 875,000 875,000 - - - - - 245 - Gas Tax 140,000 140,000 - - - - - 72124 Temporary TS at CH & Valpico 245 - Gas Tax 275,000 275,000 - - - - - 72120 IS:I-580 Ramps and Corral
Hollow Rd - - - - - - This project will design and install the necessary
roadway improvements (Traffic Signals or
Roundabouts) at the intersection of I-580 Ramps
and Corral Hollow Road.
72074 Intersection Improvements -
Tracy Blvd & Valpico Road 354 - Industrial SP, South - - - - - - Intersection improvements to provide STAA
movements for truck routes and to realign
intersection to provide adequate transition.
72XXX IS & TS: Installation at Valpico
& CH 375 - Core Area Traffic 2,000,000 - 2,000,000 - - - - This project will involve the complete roadway
improvements at the intersection of Valpico
Road and Corral Hollow Road, including roadway
widening, curb, gutter and sidewalk installation,
drainage, addition of lanes, and installation of
traffic signal poles
and equipment.

Funding
Request
FY22/23
< - - - Projected - - - >
DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
72123 Adaptive Traffic Signal System -
Grant Line Road
Adaptive Traffic System
Intersection Improvements -
Corral Hollow & Linne
Adaptive Traffic System - CHR
Crosswalk Safety Enhancement
on 11th St at F St
Local Roadway Safety Plan
72098
72104
72113
72116
72119 LRSP is required to apply for future Highway
Safety Improvement Program
This project will install the adaptive traffic signal
system on Grant Line Road, between Byron Road
Upgrade existing traffic signal controller &
provide high speed communication system for
This project will install Overhead Flashing
Beacons at the uncontrolled crosswalk on 11th
Upgrade existing traffic signal controller and
provide high speed communication system for
Installation of fully activated pedestrian and
vehicular traffic signal. Intersection
improvements include railroad crossing
Group 72: Traffic Safety
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Funding
Request
FY22/23
< - - - Projected - - - >
DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
72XXX Street Light Installation Project 245 - Gas Tax 150,000 - 150,000 - - - - This project will install new street lights at
residential, collector and arterial streets which
are lacking sufficient street lighting.
72XXX Traffic Signal Equipment
Replacement 245 - Gas Tax 200,000 - 200,000 - - - - This project will assist in upgrading the existing
170 signal controllers to 2070 signal controllers,
replace signal cabinets and/or meter pedestals,
and also install battery-backups and supporting
equipment at certain high priority signalized
intersections.

Totals 7,459,378 4,774,781 2,350,000 1,725,000 - - - Group 73: Streets and Highways
FY2023/24 FY2024/25 FY2025/26 FY2026/27
392 - Reg Transport
Impact 715,000 298,824 - - - - - - 356 - Gateway Area 293,000 257,257 - - - - - - 73103 AWid: CHR, 11th to Schulte 323 - Arterials Plan "C" 740,829 549,391 - - - - - - Widening from a 4-lane arterial to a 6-lane
major arterial which includes modification
of existing 40' median to accommodate 2
traffic lanes. Median modifications include
new landscaping, irrigation system and
installation of new railroad crossing arms.
245 - Gas Tax 316,076 68,208 - - - - - - 363 - TIMP Traffic 1,376,504 370,582 - - - - - 996,290 242 - Transp Sales Tax 3,000,000 (4,898) - - - - - 13,000,000 245 - Gas Tax 82,735 - - - - - - - 363 - TIMP Traffic 2,871,587 1,123,892 - - - - - 3,200,000 392 - Reg Transport Impac 157,616 - - - - - - - 363 - TIMP Traffic 2,215,480 979,750 - - - - - - 392 - Reg Transport
Impact 3,395,051 2,057,170 - - - - - - 242 - Transp Sales Tax 2,541,000 2,541,000 - - - - - - 261 - ISTEA 24,884,000 24,884,000 - - - - - - 363 - TIMP Traffic 1,000,000 353,553 - - - - - 12,806,000 392 - Reg Transport
Impact 7,952,000 7,285,928 - - - - - - 73148 BW: DMC & Mt House Pkwy 363 - TIMP Traffic 101,205 83,296 - - - - - - Widen bridge on Mountain House Parkway
over the Delta Mendota Canal.
73149 BW: DMC & Old Schulte Rd 363 - TIMP Traffic 101,716 90,858 - - - - - - Widen bridge on Mountain House Parkway over the California Aqueduct.
73150 BW-DM Canal & Old Schulte 363 - TIMP Traffic 101,716 75,930 - - - - - - Widen bridge on Old Schulte Road over the Delta Mendota Canal.
301 - General Projects 1,900,000 898,580 - - - - - - 363 - TIMP Traffic 500,000 489,908 - - - - - - 73171 Sidewalk and Curb Ramp
Project – West St & 6th St/West 245 - Gas Tax 305,000 266,395 - - - - - - ADA Curb Ramp and sidewalk upgrades.

Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
73109
73144
73146
73147
73161
IC Impvts:I205 & Lammers
IC: I205 & Paradise
AW: Cor Hol Rd, Linne to Old
Schult
OC Upg-I205 & MH Pkwy
OC Upgrade-I580 &
International Pkwy
Widening - Corral Hollow
I580/Linne
73084
Widen 2L to 4L arterial - Corral Hollow Road
from Linne Road to I-580
Includes converting the existing tight-
diamond interchange to a diverging
diamond interchange. This will require
minor realignment to the existing on-off
ramps. The proposed diverging diamond
interchange will divert traffic in both
directions to the opposite side of the road
while crossing over I-580. This design
provides direct left turn options both on
and off the I-580 ramps. Traffic signals
Widen existing road from a 2 lane rural road
to a 4 lane major arterial between Old
Schulte Road and Linne Road.

Includes widening of the Mountain House
Parkway overpass, construction of a
westbound loop on-ramp and construction
of a new intersection, relocation and
widening of the westbound off-ramp,
restriping of the eastbound off-ramp,
widening of the eastbound on-ramp,
restriping the northbound approach at the
Construction of new interchange to
accommodate new development and
improve
The construction of this new interchange is
to accommodate new industrial
Group 73: Streets and Highways
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >

363 - TIMP Traffic 550,000 214,444 - - - - - - 391 - Program 250,000 99,277 - - - - - - 242 - Transp Sales Tax 658,581 591,292 - - - - - - 301 - General Projects 66,000 66,000 - - - - - - 242 - Transp Sales Tax 540,000 534,850 - - - - - - 245 - Gas Tax 135,000 135,000 - - - - - - 248 - SB1 RMRA 1,500,000 748,581 - - - - - - 245 - Gas Tax 280,000 235,789 - - - - - - 268 - Comm Dev Block
Grant 150,000 150,000 - - - - - - 242 - Transp Sales Tax 590,000 393,133 - - - - - - 245 - Gas Tax 585,000 585,000 - - - - - - 248 - SB1 RMRA 1,952,699 1,925,732 - - - - - - 261 - ISTEA 1,284,163 1,284,163 - - - - - - 73179 Pavement Management
System Update 245 - Gas Tax 125,000 119,403 - - - - - - Pavement Management System last
updated in May 2017; Pavement
Management System should be updated
every 2-4 years.
73180 Sidewalk, Curb, and Gutter
Repair 245 - Gas Tax 350,000 324,968 - - - - - - Sidewalk, curb, and gutter repair; curb ramp upgrades; citywide
73181
Asphalt Concrete Pedestrian
Path Installation on Lammers
Road
242 - Transp Sales Tax 80,581 80,581 - - - - - - Installation of an Asphalt Concrete
Pedestrian Path on the east side of
Lammers Road, between Red bridge Road
and Kimball High School, to assist with the
safe movement of pedestrians and
bicyclists.
242 - Transp Sales Tax 540,000 540,000 - - - - - - 245 - Gas Tax 135,000 135,000 - - - - - - 248 - SB1 RMRA 1,213,747 1,180,113 - - - - - - 261 - ISTEA 641,698 641,698 - - - - - - 73184 Slurry Seal FY21-22 248 - SB1 RMRA 600,000 598,961 - - - - - - Performing Slurry Sealing of various street segments as preventative maintenance.
73185 ADA Space Downtown 252 - ARPA 35,000 35,000 - - - - - - 242 - Transp Sales Tax 540,000 - 540,000 540,000 540,000 540,000 540,000 - 245 - Gas Tax 135,000 - 135,000 135,000 135,000 135,000 135,000 - 248 - SB1 RMRA 1,300,000 - 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 - 73XXX Annual Slurry Seal Project 261 - ISTEA 600,000 - 600,000 600,000 600,000 600,000 600,000 - 73XXX Sidewalk, Curb, and Gutter Repa 245 - Gas Tax 250,000 - 250,000 250,000 250,000 250,000 250,000 - 73173
73175
73176
73177
73178
Transportation Master Plan
Tracy Boulevard Sidewalk
Street Patch & Overlay Program
FY20
ADA Accessibility
Improvements
Street Patch & Overlay Program
FY21
Pavement Rehabilitation
Project FY 21-22
Annual Pavement
Rehabilitation Project
73183
73XXX
Update Transportation Master Plan
New ADA parking stalls along 10th Street;
install crosswalk and upgrade curb ramps at
intersection of 9th and East Street; and
sidewalk, curb, and gutter repair along 6th
Street, 7th Street, and E Street.

This Project will close the missing sidewalk
gap to the ACE Train Station parking lot
Annual Maintenance program to keep
streets in driving condition.

Annual Maintenance program to keep
streets in driving condition.

Pavement Rehabilitation of Various Street
Segments based on their Pavement
Condition Index (PCI)
Group 73: Streets and Highways
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >

73XXX Street Repair Program (PW) 245 - Gas Tax 200,000 - 200,000 200,000 200,000 200,000 200,000 - Annual Maintenance Program - Pot Holes 73XXX Valpico Road Widening - Tracy
Blvd to MacArthur Drive 375 - Core Area Traffic 10,000,000 - 10,000,000 - - - - - This project will involve the roadway
widening of Valpico Road from Tracy Blvd to
MacArthur Drive, with two lanes in each
direction, complete with all necessary
improvements like curb, gutter, sidewalk,
median, irrigation facilities, landscaping,
drainage facilities, street lighting, signage
and striping.
73XXX Grant Line Road Widening
Project 375 - Core Area Traffic 5,000,000 - 5,000,000 - - - - - This project will involve the roadway
widening of Grant Line Road from Bryon
Road to Lammers Road, with two lanes in
each direction, complete with all necessary
improvements like curb, gutter, sidewalk,
median, irrigation facilities, landscaping,
drainage facilities, street lighting, signage
and striping, and any modifications to the
signals in this corridor.
73XXX
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
301 - General Projects 3,500,000 - 392,000 3,108,000 - - - - Bessie Avenue Rehabilitation from Lowell to
Grant Line: Replace water, sewer and storm
drain mains, water and sewer laterals,
remove and replace pavement, sidewalks,
curbs and curb ramps, and street trees (as
necessary)
73XXX Deferred Streets Maintenance 301 - General Projects - - - - 3,000,000 3,000,000 3,000,000 - 88,337,984 53,288,609 18,417,000 6,133,000 6,025,000 6,025,000 6,025,000 30,002,290 Group 74: Wastewater Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
357 - NE Industrial Area
#2 5,000,000 218,184 - - - - - - 523 - Wastewater Capital 34,900,000 8,807,465 - - - - - - 74084 WW Lines Upgrade, East Side 354 - Industrial SP, South 756,000 721,013 - - - - - - Fix existing bottleneck on East Side Sewer
mains south of Grant Line Road and
MacArthur intersection. Install 4,000 LF of
parallel 24 inch line or replace existing line
30 inch line south of Grant Line Rd 523 - Wastewater Capital 29,732,868 24,830,699 - - - - - - 364 - TIMP Wastewater 1,226,311 - - - - - - - 74159 Wastewater Master Plan 364 - TIMP Wastewater 781,200 273,429 - - - - - - Update to Wastewater Master plan 74162 Lincoln Avenue Sewer
Connection 523 - Wastewater Capital 200,000 200,000 - - - - - - 74163 Lincoln Blvd Sewer Main &
Lateral Replacement 523 - Wastewater Capital 320,000 317,251 - - - - - - 74164 Primary Clarifier Effluent
Pumping System 523 - Wastewater Capital 450,000 450,000 - - - - - - 337 - Ellis Area
Wastewater 400,000 400,000 - - - - - - 364 - TIMP Wastewater 2,600,000 2,600,000 - - - - - - 74XXX Clean up of Pond 1 and Berm 523 - Wastewater Capital 1,750,000 - - - - - - 1,750,000 The pond Receives wastewater which is rich
in solids; the pond has not been cleaned for
a long time
74XXX WWTP and lift station PLC
Replacement 523 - Wastewater Capital 650,000 - - - - - - 650,000 Programmable Logic Controllers, PLCs, are
critical to the many 'controlled' components
of the treatment plant.
74XXX Digester Flare Gas upgrade 523 - Wastewater Capital 1,000,000 - - - - - - 1,000,000 The digester flare system needs to be repaired and replaced.
74XXX Relocate Old Chlorine Building
Generator to Headworks 523 - Wastewater Capital 450,000 - - - - - - 450,000 74XXX Replace Turblex Blowers 523 - Wastewater Capital 1,800,000 - - - - - - 1,800,000 The air blowers supply essential air to the
aeration basins where much of the
treatment of the waste is performed.
74XXX Replace Primary Effluent
Pumps 523 - Wastewater Capital 1,100,000 - - - - - - 1,100,000 Essential pumps to transport primary settled
wastewater to the next step in treatment,
i.e., the aeration basins
74XXX Relocate Electrical System from
Basement to Electrical Room 523 - Wastewater Capital 1,000,000 - - - - - - 1,000,000 74XXX HVAC & Roof Replacement -
WWTP - LAB/Admin Building
523 - Wastewater Capital 450,000 - - - - - - 450,000 Life Cycle replacement strategy requires replacing these units.
74XXX Sewer Main and Lateral Annual
Replacements
523 - Wastewater Capital 6,000,000 - - - - - - 6,000,000 Funding
Request
FY22/23
< - - - Projected - - - >
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
74165
Second Outfall Pipeline - WW
Treatment Plant
WWTP Expan Phase II
Sewer Capacity Upgrade
Construction of a second wastewater
effluent discharge pipeline to the Old River.

Expansion of treatment capacity to handle
the additional inflow resulting from new
74107
74083
Group 74: Wastewater Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Funding
Request
FY22/23
< - - - Projected - - - >
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover

74XXX Asset Management - CMMS
Program Expansion 523 - Wastewater Capital 100,000 - - - - - - 100,000 This will help refine and develop budget
costing for replacement of utility equipment
and will enable a more effective
maintenance practice. Split between
513/523)
74XXX
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
252 - ARPA 1,900,000 - 216,000 1,684,000 - - - -

Grant Line: Replace water, sewer and storm
drain mains, water and sewer laterals,
remove and replace pavement, sidewalks,
curbs and curb ramps, and street trees (as
necessary)
74106 Larch Rd Pump Station Repairs 523 - Wastewater Capital 2,461,306 - - - - - - 2,290,000 74127 Aeration Diffuser Replacement 523 - Wastewater Capital 430,248 - - - - - - 400,000 Existing diffusers have run out of life and need replacement
74128 Security System Cameras
WWTP 523 - Wastewater Capital 407,793 - - - - - - 400,000 Fencing, Cameras, lighting upgrades,
parking, paving. Project includes various
plant improvements to improve safety and
security of the facility. The improvements
include installtion new fence at the property
boundaries, grading property, security
cameras lighting and parking within the
74138 FOG Removal & Septage Rec
Systm 523 - Wastewater Capital 730,000 - - - - - - 600,000 Install new FOG removal integerated with
sewer receiving station at headwork.

Evaluate and rehabilitate existing system
and structures at headworks to modify and
provide for new systems
74139 Screen & Grit Removal 523 - Wastewater Capital 730,000 - - - - - - 600,000 Replace screens with a 1) Low maintenance
more efficient screens with effective
removal of rags and debris 2) Without
delicate side-plates or similar weaknesses
and install a grit removal system to prevent
any grit from reaching the screens
74160 Chemical Disinfection System
Replacement & Expansion 523 - Wastewater Capital 1,875,887 - - - - - - 1,800,000 Replace existing Chemcial Disenfection
system with the new Chlorine Bleach and
Sodium BiSulphate system. The system will
accommodate existing and near future
chemical disenfiction needs. Sphere of
Influence under a fully developed condition
99,201,613 38,818,041 216,000 1,684,000 - - - 20,390,000 Group 75: Water Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
75130 Replace SCADA System - Water
Treatment Plant 513 - Water Capital 675,000 310,535 - - Upgrades of Supervisor Control and Data
Acquisition (SCADA) System - software and
hardware which monitors and controls
plant equipment and processes to maintain
regulatory compliance, including necessary
modifications and integration with Plant
Programmable logic Controllers (PLC).
75153 Luis Manner Well Rehab 513 - Water Capital 964,973 526,148 - - Remove pump, shaft, clean, replace casing
screens, testing sleeve as required and
reinstall pump.
75155 Up Flow Clarifier Rehab 513 - Water Capital 400,000 400,000 - - 75156 WTP UV Upgrade 513 - Water Capital 400,000 253,622 - - The UV system needs a complete upgrade
to achieve State Validation for disinfection
credit.
75159 Water Master Plan 365 - TIMP Water 659,767 242,779 - - Update Water Master Plan 75160 Water Lines Lammers Rd 365 - TIMP Water 5,840,000 4,563,257 1,200,000 - - - - - Construction of new water transmission
main along Lammers Road to enable a
connection from City-side Zone 3 in the Ellis
Subdivision to the Cordes Ranch Specific
Plan area.
75161 HACH WIMS eSMT Report Auto
Generator 513 - Water Capital 120,000 120,000 Upgrade HACH WIMS Software 75162 Well Improvements 513 - Water Capital 1,500,000 1,500,000 Well Improvement Project: In order to meet
the additional water demand during the
peak periods and drought conditions- This
funding needs to come out of development
funds. We can supply the current rate
payers without this funding. This is an
upgrade to the existing system to support
new development during drought.
75163 Tracy Hills Zone 5 Water
Booster Station 513 - Water Capital 3,800,000 3,800,000 In order to serve the development of
Vesting Tentative Subdivision Map
completion of the Tracy Hills Zone 5
Booster Pump Station at John Jones Water
Treatment Plant is required. This pump
station and associated work are depicted in
the Improvement Plans titled “Tracy Hills
Zone 5 Pump Station” prepared by West
Yost Associates and approved by the City
on October 2021.
75XXX Los Vaqueros Reservoir 513 - Water Capital 10,000,000 - 10,000,000 75XXX Filter Valves Replacement at
JJWTP
513 - Water Capital 600,000 - 600,000 Replace 48 filter valves at JJWTP in two years (24 in each year)
< - - - Projected - - - >
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
Group 75: Water Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
< - - - Projected - - - >
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
75XXX Water Intake Pump Station
Rehabilitation at DMC - JJWTP 513 - Water Capital 200,000 - 200,000 Replace existing pumps, mag meters and
accessories at Water Intake Pump Station
located at DMC - JJWTP
75XXX Wells (1, 2, 3 4 and Lincoln)
Study and Mitigation 513 - Water Capital 400,000 - - 400,000 Study the existing wells (1,2,3,4 and
Lincoln) Well to identify existing conditions
of Bacteriological and PFOS and PFAS
containment levels and initiate mitigations
to address these issues. - Addition to
project- Well 3 casing has a recent hole in
it. The wells need to be assesed for
replacement
75XXX
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
252 - ARPA 1,750,000 - 192,000 1,558,000 - Bessie Avenue Rehabilitation from Lowell to
Grant Line: Replace water, sewer and storm
drain mains, water and sewer laterals,
remove and replace pavement, sidewalks,
curbs and curb ramps, and street trees (as
necessary)
75XXX Larch Rd 12" Water Line
Replacement 513 - Water Capital 2,500,000 - - 2,500,000 Replace 5400 LF of 12" water line and 58
services on Larch Rd. between Tracy Blvd.
and Corral Hollow.
75XXX Annual Water Service/Line
Replacement
513 - Water Capital 700,000 - - 700,000 Annual Water Line Replacement Program 75XXX Water Valve Replacement 513 - Water Capital 100,000 - - 100,000 Annual - Replace Water Distribution Valves in various parts of the City.
75XXX Flow-meter Replacements 513 - Water Capital 500,000 - - 500,000 75XXX
Security System
Implementation for City's
Water Facilities
513 - Water Capital 1,000,000 - - 1,000,000 75XXX Asset Management - CMMS
Program Expansion 513 - Water Capital 100,000 - - 100,000 This will help refine and develop budget
costing for replacement of utility
equipment and will enable a more effective
maintenance practice. (Split between
513/523)
32,209,740 11,716,341 1,392,000 1,558,000 - - - 16,100,000 Group 76: Drainage Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
322 - Plan C Drainage 54,000 54,000 - - - - - - 352 - South MacArthur 500,007 446,547 - - - - - - 76087 Eastside Channel Lining from
Grant Line Road to MacArthur 350 - NEI Storm Drain 2,500,000 2,500,000 - - - - - - Concrete line the bottom and sides 2500
feet of the Eastside Channel from from 400
feet north of Pescadero (downstream end
of CHP channel improvements) to
MacArthur
76XXX Eastside Channel Desilting 541 - Drainage 700,000 - - - - - - 700,000 Eastside Channel Desilting from Pescadero Road to Arbor Road.
76XXX
Trash Capture devices for
storm water conveyance
system
541 - Drainage 8,000,000 - - - - - - 8,000,000 The State Regional Water Quality Control
Board implemented regulations in 2019 that
require NPEDS MS4 storm water permit
agencies begin the implementation of for
trash capture systems in all storm water
conveyance systems. The period of time to
complete the construction of these systems
is 10 years so they must be in place in 2029.

The requirement is intended to prevent the
flow of any trash particles larger than 5mm
into waters of the US.
11,754,007 3,000,547 - - - - - 8,700,000 Unfunded
Amount Description
76059 South MacArthur, Ph 2-From
Northern Boundary of
Project
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
Improve capacity of 6800 LF of existing V-
ditch channel completed under CIP 7634.

Group 77: Airport and Transit Improvements
FY2023/24 FY2024/25 FY2025/26 FY2026/27
77564 Transit Station Security
Cameras 242 - Transp Sales Tax 140,000 138,296 - - - - - - Installation of additional cameras at the Tracy Transit Station.
77583 Airport Layout Plan/Geospatial 563 - Airport Capital 241,200 79,216 - - - - - - The Airport Layout Plan shows in Transit Station Rehab 241 - TDA Funds 2,441,024 2,385,367 - - - - - - Transit Station Rehab 573 - Transit Capital 400,000 296,387 - - - - - - 77585 Tracer Bus Stop Improvements 573 - Transit Capital 500,000 500,000 - - - - - - Various improvments to bus stops
throughout the City, including but not
limited to installation of concrete
pads, benches, shelters, trash cans,
signs, pullouts, etc.
77586 Transit Maintenance & Storage
Yard (Land Acquisition) 573 - Transit Capital 1,000,000 1,000,000 - - - - - - Land Acquisition - Development of
storage and maintenance facility for
the Tracer bus system.

ITS infrastructure Planning &
Construction 241 - TDA Funds 280,000 280,000 - - - - - - ITS infrastructure Planning &
Construction 573 - Transit Capital 1,120,000 1,120,000 - - - - - - 77XXX Airport Masterplan Update 563 - Airport Capital 250,000 - - - - - - 250,000 This project consists of a master plan
update that will encompass both
Tracy Municipal Airport and New
Jerusalem
6,372,224 5,799,266 - - - - - 250,000 Funding
Request
FY22/23
< - - - Projected - - - >
Unfunded
Amount DescriptionProject
Number Project Name Proposed Funding
Source
Estimated
Cost/Budget Carryover
77584
77587
Expansion of office facilities at the
Transit Center into the Lobby area.

This project will create a plan for the
Tracer bus system to implement
Intelligent Transportation System
(ITS) technology within the City of
Tracy.

Group 78: Parks and Recreation
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Developer Contribution 8,000,000 - - - 8,000,000 - - - 301 - General Projects 2,000,000 697,109 - - - - - - 307 - Measure V 53,000,000 958,152 - - 52,000,000 - - - 324 - Gen Fac Plan "C" 1,645,946 1,645,520 - - - - - - 354 - Industrial SP, South 231,500 231,500 - - - - - - 355 - Presidio Area 114,700 114,700 - - - - - - 378 - Core Area Parks 4,098,878 3,049,901 1,000,000 - - - - - 361 - TIMP Parks 1,501,122 670 1,000,000 - - - - - 78171 Bikeways Master Plan 241 - TDA Funds 100,000 5,591 - - - - - - Update Bikeways Master Plan 307 - Measure V 21,000,000 3,909,991 17,000,000 - - - - - Design and construction of the multi- generational recreation center.

Grant 5,000,000 - 5,000,000 - - - - Developer Contribution 4,000,000 - 4,000,000 - - - - 78183 CW Bikeways Mainenance 241 - TDA Funds 155,000 141,691 75,000 - - - - - In addition to the restriping of faded
bike lanes, staff is also working to
implement a plan for green bikeways
striping in high traffic areas
throughout the city. (Annual
Program)
78184 Hoyt Park - Per Capita
Improvements 301 - General Projects 363,956 352,618 - - - - - - The City of Tracy has the opportunity
to rehabilitate existing infrastructure
at Hoyt Park through the Proposition
68, Per Capita Program.
78185 Legacy Field Site Phase 1E 307 - Measure V 21,000,000 19,360,577 - - - - - - Improvements would include: paving
parking lots, slurry sealing existing
asphalt, alternative exit south of the
complex, build-out of the Eastern
Wagon Wheel to closely resemble
the Western Wagon Wheel, and
wayfinding & signage.
78XXX Ritter Family Ball Park
Renovation 307 - Measure V 25,000,000 3,000,000 - - - - - 22,000,000 The first step in updating this dated
facility is a master planning process,
including public outreach, to
establish a modern vision for this
much needed infill project.

This project is a 4.7-acre expansion of
Gretchen Talley Park. Scope of work
will include: a new park restroom,
new small & large dog park,
tennis/pickleball courts, a 2nd
basketball court, fitness area, nature
play area, pollinator garden,
landscaping and open lawn area.
78054 Aquatics Center
Project
Number Project Name Unfunded
Amount
78170 Gretchen Tally Park Phase III
78178 Multi-Generational Rec Center
DescriptionProposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
Group 78: Parks and Recreation
FY2023/24 FY2024/25 FY2025/26 FY2026/27

Project
Number Project Name Unfunded
Amount DescriptionProposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
78XXX Nature Park Phase 1 307 - General Projects 8,371,000 1,371,000 - - - - - 7,000,000 Based on the Council-approved
Master Plan, Phase 1 of this project
will include: site preparation and
earthmoving to create various
habitats, over 2 miles of hiking paths
including a walking loop with bridget
and ADA accessible trails with seating
and an overlook, elevated walkway
and viewing platform, pre-fabricated
restroom, dedicated traffic
intersection with parking lot,
interpretive signage and educational
opportunities, wayfinding signage,
windbreak trees and native
understory plantings, seeding and
erosion control.
242 - Transp Sales Tax 75,000 - 75,000 - - - - - 271 - LMD 475,000 - 475,000 - - - - - 78XXX A.R. Glover Park Improvement 301 - General Projects 875,000 - 875,000 - - - - This project would include renovation
of the playground, a new picnic area,
renovation of the sport court
including addition of court lighting,
pathway lighting throughout park,
ADA barrier removal, landscaping and
site furnishing replacements.
78XXX BMX Pump Track 301 - General Projects 1,000,000 - 1,000,000 - - - - Construct a new 1/2 acre BMX pump
track (bike park) in an existing City
park. The project would create a
looped asphalt track with a sequence
of rollers and berms for bike riders.

Associated improvements would
include: earthwork, drainage,
accessibility, shaded seating as well
as related site furnishings, and
landscaping. Staff is recommending
the City Council select one of the
following preferred sites to develop
this amenity: Frank Hoyt Park or
Edgar Thoming Park.

Renovation of the playground, rehab
of the sport court including
replacement of equipment and
addition of lighting, pathway lighting
throughout greenway, replacement
of site furnishings, landscape
enhancements, and drought tolerant
conversions, ADA barrier
Florence Stevens Park &
Greenway Improvement78XXX
Group 78: Parks and Recreation
FY2023/24 FY2024/25 FY2025/26 FY2026/27

Project
Number Project Name Unfunded
Amount DescriptionProposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
78XXX Edgar Thoming Park
Improvement 301 - General Projects 525,000 - 525,000 - - - - This project would include renovation
of the tennis and basketball courts
including surfacing, lighting and
fencing upgrades.
78XXX Tracy Sports Complex
Improvement 301 - General Projects 3,250,000 - - 3,250,000 - - - - Renovation and upgrades to the
concession building and meeting
room. Site improvements including:
new restroom for east side of park,
playground renovations, parking lot
renovations, removal of ADA barriers,
landscaping, site furnishing
replacements, fencing and major
renovation of existing protective
netting including replacement of
short poles, repainting and
replacement of netting.
78XXX Veterans Park Improvement 301 - General Projects 500,000 - - 500,000 - - - Veterans Park is a 15.8 acre
community park located in south
Tracy. This project would renovate
the existing parking lot, address ADA
barriers, lighting upgrades including
sport court and pathway lighting,
minor renovations
78XXX Robert Kenner Improvements 301 - General Projects 2,100,000 - - 2,100,000 - - Project to install sport court lighting
at basketball and tennis courts
including rehab of the courts.
78XXX Alden Park Improvement 301 - General Projects 900,000 - - 900,000 - - - This project would include rebuilding
the entire walking loop within the
park that is failing, a new shaded
picnic area near the new playground,
replacement of site furnishings, a
new open lawn area within the
walking look, strategic turf reduction
with drought tolerant plantings, and
area/pathway lighting for improved
safety in the park.

Group 78: Parks and Recreation
FY2023/24 FY2024/25 FY2025/26 FY2026/27
Project
Number Project Name Unfunded
Amount DescriptionProposed Funding
Source
Estimated
Cost/Budget Carryover
Funding
Request
FY22/23
< - - - Projected - - - >
78XXX William Larsen Park
Improvements 301 - General Projects 450,000 - - - 450,000 - This project will address the park
comprehensively after the
playground was just renovated. This
includes installation of sport court
lighting at tennis courts, a new
fitness equipment area, and
landscape improvements including
enhancements around the public art
sculpture and turf reduction
strategies for water conservation
78XXX Flag Poles City Hall Memorial 301 - General Projects 75,000 - - - - 75,000 - - This project will install six (6) new flag
poles at the Tracy War Memorial in
Civic Center Plaza to represent the six
(6) branches of the United States
Military.
78XXX Dry Climate Dog Park Project 301 - General Projects 350,000 - - - 350,000 - The project would include demolition
of certain existing features, fencing
for large and small dog areas, a
shaded seating area w/ drinking
fountain, landscaping and ADA
accessibility improvements.
78XXX Sport Court Lighting Project 301 - General Projects 1,800,000 - - - 1,800,000 - - Installation of lighting for various
sport courts to expand hours of use
and promote safety within the
General Fund parks.
78XXX Annual Park Maintenance 301 - General Projects 3,000,000 - - - - - 3,000,000 - 147,582,102 34,839,020 31,025,000 3,250,000 55,500,000 2,675,000 3,000,000 29,000,000

A CITY COUNCIL WORKSHOP TO REVIEW THE
PROPOSED FY 2022-23 CAPITAL BUDGET AND THE
PROPOSED FIVE YEAR FY 2022-2027 CAPITAL

IMPROVEMENT PLAN (CIP) OUTLOOK
Finance Department
March 22, 2022

ATTACHMENT B
Agenda
❑CIP Outlook
▪ Overview
▪ Definitions
▪ Funding Sources
▪ Categories
❑Proposed FY 2022-23 CIPs and 2022-2027 CIP
Outlook by Category
❑City Council Measure V Projects
❑Proposed General Fund Projects
❑ARPA Update
❑Next Steps
2 CIP Outlook
3 CIP Outlook Overview
➢The CIP Outlook is a planning tool to assist in
budget decisions and the allocation of resources
required to meet the City’s strategic goals that are
critical to core services.
➢The CIP Outlook is not static, but can and should be
modified as new funding, regulations, priorities,
urgency, and demands arise.
4 5
CIP Outlook Overview
The purpose of the Capital Improvement
Plan (CIP) Outlook is to:
✓Identify capital expenditures which are
anticipated to be requested over a five-year
period;
✓Determine a source of funding for the
requests;
✓Provide an opportunity for long-term
planning.
• The CIP Outlook should be monitored,
updated, and reported at least annually
to the City Council.

CIP Outlook Key Definitions
6 • A capital project has specific objectives:
✓Detailed scope of work,
✓Schedule and budget,
✓Estimated total cost in excess of $50,000,
✓Useful life expectancy of 10 or more years.

CIP Outlook Definitions

CAPITAL

MAINTENANCE
• To maintain capital
assets in fully
functioning form
• To rehabilitate or
replace existing
infrastructure/facilities
➢Examples:
✓ Roadway or sidewalk
rehabilitation
✓ HVAC replacement
✓ Utility line maintenance and
replacement

CAPITAL

IMPROVEMENTS
• To expand existing
infrastructure and/or
capital assets
• To construct new
infrastructure/facilities
➢Examples:
✓ Expand utility plants or city
buildings
✓ Widen or construct new
roadways, sidewalks,
bikeways to allow for more
users
✓ Build or improve parks for
more usage
7 CIP Outlook Definitions
CIP Outlook is comprised of three overlapping
timelines related to the availability of funding.

Active:

These are current projects that have been approved by the City Council in prior years but may cross over multiple fiscal years in the CIP Outlook.

New:

These are new or planned projects that are ready for appropriations through either the annual adoption of the Operating and Capital budget or during one of the four quarterly updates of the Operating and Capital budget.

Projected:

These are projects expected to be completed in future years (FY 2023-24 and beyond).
➢ They may include “Un-funded” portions of future or existing CIPs. 8 CIP Overview of Funding Source
• The CIP Outlook is not a budget; nor are funds
appropriated when adopting the CIP Outlook.
• Funding for Capital Improvements is almost
exclusively from City revenues:
o General taxes
o Special taxes
▪ Designated through law
▪ Requires voter approval
o Rates and user fees
▪ Needs rate study to demonstrate nexus to improvement
▪ Some require ballot action
9 CIP Outlook Funding Sources
• Revenues from General Fund committed to City
Council priorities
• Examples: Measure V Capital Projects for amenities
General Fund
• Revenues dedicated for special purpose through tax
or fees
• Examples: Gas Tax for street and roads
Special
Revenues Funds
• Revenues dedicated for special purpose through tax
or fees
• Examples: Development Impact fees established for
specific new infrastructure
Capital Projects
Funds
• Revenues collected through customer user fees
• Examples: Utilities or Transportation Funds rates to
maintain, repair or replace existing capital assets
Enterprise
Funds
10 Proposed FY 2022-23 CIPs
and 2022-2027 CIP Outlook
By Category
11 CIP Outlook Estimates by Categories
• The CIP is organized into groups by the type
of project.
✓Group 71: General Government and Public Safety
Facilities
✓Group 72: Traffic Safety
✓Group 73: Streets and Highways
✓Group 74: Wastewater Improvements
✓Group 75: Water Improvements
✓Group 76: Drainage Improvements
✓Group 77: Airport and Transit Improvements
✓Group 78: Parks and Recreation
12 Group 71: General Government and
Public Safety Facilities
13 New
Carryover FY 2022/23 FY
2022/23
FY
2023/24
FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
12,723,530 4,300,000 930,000 550,000 - - - - 18,503,530 Active < - - - - - Projected - - - - - >
Project Name Fund FY2022/23 FY2023/24
Police Headquarters Cooling
System Study
301 - General
Projects 80,000 -
Central Garage Carport
Enclosure
301 - General
Projects 50,000 550,000
Grand Theatre Audio Visual
Upgrades
301 - General
Projects 800,000 -
Total 930,000 550,000
New Proposed Projects (3)
Group 71: General Government and
Public Safety Facilities
• Police Headquarters Cooling System Study:

Engineering study of the existing closed loop water
system that is experiencing frequent failures. Once
the study is complete, this will determine funding
needed for HVAC overhaul.
• Central Garage Carport Enclosure: Enclose carport
area that is located to the north of central garage.

Request is to fund for design, once complete request
for construction funding in FY2023/24.
14 Group 71: General Government and
Public Safety Facilities
• Grand Theatre Audio Visual Upgrades : This
project will replace outdated audio and lighting
equipment, including replacement of the existing
older audio system with modern line array speakers
and change the stage lighting in the Eleni
Kounalakis Theatre to energy efficient LED stage
lighting.
15 Group 72: Traffic Safety
16 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY
2024/25
FY
2025/26
FY
2026/27
Un-
Funded Total
4,774,781 - 2,350,000 1,725,000 - - - - 8,849,781 Active < - - - - - Projected - - - - - >
Project
Number Project Name Fund FY2022/23
72125 IS & TS: Installation at Valpico
& CH
375 - Core Area
Traffic 2,000,000
72126 Street Light Installation Project245 - Gas Tax 150,000 72127 Traffic Signal Equipment
Replacement 245 - Gas Tax 200,000
Total 2,350,000
New Proposed Projects (3)
Group 72: Traffic Safety
• CIP 72125, Intersection Improvements & Traffic
Signal Installation at Valpico & Corral Hollow: This
project will involve the complete roadway
improvements at the intersection of Valpico & Corral
Hollow Road, including roadway widening, curb,
gutter and sidewalk installation, drainage, addition of lanes, and installation of traffic signal poles and
equipment.
• CIP 72126, Street Light Installation Project: This
project will install new streetlights at residential,
collector and arterial streets which are lacking
sufficient street lighting.
17 Group 72: Traffic Safety
• CIP 72127, Traffic Signal Equipment
Replacement: This project will assist in upgrading
the existing 170 signal controllers to 2070 signal
controllers, replace signal cabinets and/or meter
pedestals, and install battery-backups and
supporting equipment at certain high priority
signalized intersections.
18 Group 73: Streets and Highways
19 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 53,288,609 - 18,417,000 6,133,000 6,025,000 6,025,000 6,025,000 30,002,290 125,915,899 Active < - - - - - Projected - - - - - >
Project
Number Project Name Fund FY2022/23 FY2023/24
242 - Transp
Sales Tax 540,000
245 - Gas Tax 135,000
248 - SB1 RMRA 1,300,000
73187 Annual Slurry Seal Project 261 - ISTEA 600,000 73188 Annual Sidewalk, Curb, and
Gutter Repair 245 - Gas Tax 250,000
73189 Street Repair Program (PW) 245 - Gas Tax 200,000 73190 Valpico Road Widening -
Tracy Blvd to MacArthur Drive
375 - Core Area
Traffic 10,000,000
73191 Grant Line Road Widening
Project
375 - Core Area
Traffic 5,000,000
73192
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
301 - General
Projects 400,000 3,000,000
Total 18,425,000 3,000,000
Annual Pavement
Rehabilitation Project 73186
New Proposed Projects (7)
Group 73: Streets and Highways
• CIP 73186, Annual Pavement Rehabilitation:

Pavement rehabilitation by overlays or
reconstruction is essential to reach the City's goal of achieving higher overall Pavement Condition Index
(PCI) value for the roadway network.
• CIP 73187, Annual Slurry Seal: Performing Slurry
Sealing of various street segments as preventative
maintenance.
20 Group 73: Streets and Highways
• CIP 73189, Annual Street Repair Program: This
project will be an ongoing funding amount allocated
for contracted medium-term repairs of roadways.

The program is intended to fill a gap in services that
will allow PW crews to continue making short-term,
and some mid-term repairs, and provide relief prior
to the initiation of large, CIP reconstruction of
roadways.
21 Group 73: Streets and Highways
• CIP 73190, Valpico Road Widening: Tracy Blvd to
MacArthur Drive, this project will involve the
roadway widening of Valpico Road from Tracy
Blvd to MacArthur Drive, with two lanes in each
direction, complete with all necessary
improvements like curb, gutter, sidewalk, median,
irrigation facilities, landscaping, drainage facilities, street lighting, signage and striping.
22 Group 73: Streets and Highways
• CIP 73191, Grant Line Road Widening Project:

This project will involve the roadway widening of
Grant Line Road from Bryon Road to Lammers
Road, with two lanes in each direction, complete
with all necessary improvements like curb, gutter,
sidewalk, median, irrigation facilities, landscaping,
drainage facilities, street lighting, signage and
striping, and any modifications to the signals in
this corridor.
23 Group 73: Streets and Highways
• CIP 73192, Reconstruction Bessie Avenue Between
Lowell Avenue and Grant Line Road: Bessie
Avenue Rehabilitation from Lowell to Grant Line:

Replace water, sewer and storm drain mains, water
and sewer laterals, remove and replace pavement,
sidewalks, curbs and curb ramps, and street trees
(as necessary). Combined with CIP 74166 & 75164.

Request is to fund for design, once complete request
for construction funding in FY2023/24.
24 Group 74: Wastewater Improvements
25 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 38,818,041 - 216,000 1,684,000 - - - 20,390,000 61,108,041 Active < - - - - - Projected - - - - - >
Project
Number Project Name Fund FY2022/23 FY2023/24
74166
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
252 - ARPA 216,000 1,684,000
Total 216,000 1,684,000
New Proposed Projects (1)
Group 74: Wastewater Improvements
• CIP 74166, Reconstruction Bessie Avenue Between
Lowell Avenue and Grant Line Road: Bessie
Avenue Rehabilitation from Lowell to Grant Line:

Replace water, sewer and storm drain mains, water
and sewer laterals, remove and replace pavement,
sidewalks, curbs and curb ramps, and street trees
(as necessary). Combined with CIP 73192 & 75164.

Request is to fund for design, once complete request
for construction funding in FY2023/24.
26 Group 75: Water Improvements
27 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 11,716,341 1,200,000 192,000 1,558,000 - - - 16,100,000 30,766,341 Active < - - - - - Projected - - - - - >
Project
Number Project Name Fund FY2022/23 FY2023/24
75164
Reconstruction Bessie Avenue
Between Lowell Avenue and
Grant Line Road
252 - ARPA 192,000 1,558,000
Total 192,000 1,558,000
New Proposed Projects (1)
Group 75: Water Improvements
• CIP 75164, Reconstruction Bessie Avenue Between
Lowell Avenue and Grant Line Road: Bessie
Avenue Rehabilitation from Lowell to Grant Line:

Replace water, sewer and storm drain mains, water
and sewer laterals, remove and replace pavement,
sidewalks, curbs and curb ramps, and street trees
(as necessary). Combined with CIP 73192 & 74166.

Request is to fund for design, once complete request
for construction funding in FY2023/24.
28 Group 76: Drainage Improvements
29 There are no new proposed projects for FY2022-23
for Drainage Improvements due to lack of funding.

New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 3,000,547 - - - - - - 8,700,000 11,700,547 Active < - - - - - Projected - - - - - >
Group 77: Airport and Transit
Improvements
30 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 5,799,266 - - - - - - 250,000 6,049,266 Active < - - - - - Projected - - - - - >
There are no new proposed projects for FY2022-23
for Airport and Transit Improvements.

Group 78: Parks and Recreation
31 New
Carryover FY 2022/23 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 Un-Funded Total 34,839,020 28,075,000 3,400,000 3,250,000 55,500,000 2,225,000 3,000,000 29,000,000 159,289,020 Active < - - - - - Projected - - - - - >
Project Name Fund FY2022/23
242 - Transp
Sales Tax 75,000
271 - LMD 475,000
Edgar Thoming Park
Improvement
301 - General
Projects 525,000
A.R. Glover Park Improvement 301 - General
Projects 875,000
BMX Pump Track 301 - General
Projects 1,000,000
Total 2,950,000
Florence Stevens Park &
Greenway Improvement
New Proposed Projects (4)
Group 78: Parks and Recreation
• Florence Stevens Park & Greenway Improvement,
will rehabilitate existing infrastructure at Hoyt Park
through the State of California’s Proposition 68, Per
Capita Program. The project includes resurfacing
and re-stripping the parking lot, replacing bench
and table furnishings in the park, and addressing
other amenities, pending available funds.
• Edgar Thoming Park Improvement - This project
would include renovation of the tennis and
basketball courts including surfacing, lighting and
fencing upgrades.
32 Group 78: Parks and Recreation
• A.R. Glover Park Improvement - This project
would include renovation of the playground, a new
picnic area, renovation of the sport court including
addition of court lighting, pathway lighting
throughout park, ADA barrier removal, landscaping
and site furnishing replacements.
• BMX Pump Track - Construct a new 1/2-acre BMX
pump track (bike park) in an existing City park.
33 Measure V Projects List
34 Measure V Projects
35 Project Estimated
Cost
Measure V
Committed Other Funds
Legacy Fields (Final Phase 1) 21,000,000 21,000,000 - Debt Financing Multi-Gen Recreation Center
(Includes Library & Skate Park) 30,000,000 21,000,000 9,000,000 Debt Financing, Grant,
Developer Contribution
Aquatic Center 65,000,000 53,000,000 12,000,000
Impact Fees, Developer
Contribution
Nature Park 8,000,000 1,000,000 - Council Direction 2/22/22 Ritter Family Ball Park 25,000,000 3,000,000 -
Council Direction 2/22/22 to
Fund Design
Multi-Court Tournament-Sized
Gymnasium
Airport
Animal Shelter (Expansion)
Community Center Renovation (Phase 2)
Senior Center 950,000 950,000
Legacy Fields (Prior Phases) 6,135,668 6,135,668
Tier 1
Tier 2
Tier 3
Completed
Proposed General Fund Projects
36 Proposed General Fund FY2022/23
Project Name FY2022/23 FY2023/24 FY2024/25 FY2025/26 FY2026/27 Multipurpose Reality
Based Training Facility 2,800,000 - - - - BMX Pump Track 1,000,000 - - - - Reconstruction Bessie
Avenue Between Lowell
Avenue and Grant Line
Road
400,000 3,100,000 - - - A.R. Glover Park
Improvement 875,000 - - - - Grand Theatre Audio
Visual Upgrades 800,000 - - - - Edgar Thoming Park
Improvement 525,000 - - - - Central Garage Carport
Enclosure 50,000 550,000 - - - Police Headquarters
Cooling System Study 80,000 - - - - Parks Deferred
Maintenance - 3,000,000 3,000,000 3,000,000 3,000,000 Streets Deferred
Maintenance - 3,000,000 3,000,000 3,000,000 Totals 6,530,000$ 6,650,000$ 6,000,000$ 6,000,000$ 6,000,000$ 37 Future Proposed General Fund
Projects
38 Project Name Description Estimated
Cost
Flag Poles City Hall Memorial
This project will install six (6) new flag poles at the Tracy War Memorial in Civic Center Plaza to represent the six (6) branches of the United States Military.
75,000
Dry Climate Dog Park Project
Demolition of certain existing features, fencing for large and small dog areas, a shaded seating area w/ drinking
fountain, landscaping and ADA accessibility improvements. 350,000
Sport Court Lighting Project
Installation of lighting for various sport courts to expand hours of use and promote safety within the General Fund parks.
1,800,000
Veterans Park Improvement
Renovate the existing parking lot, address ADA barriers, lighting upgrades including sport court and pathway
lighting, minor renovations.
500,000
Tracy Sports Complex
Improvement
Renovation and upgrades to the concession building and
meeting room and site improvements. 3,250,000
Robert Kenner Improvements Install sport court lighting at basketball and tennis courts including rehab of the courts. 2,100,000
Alden Park Improvement
Rebuild the entire walking loop within the park that is failing, a new shaded picnic area near the new playground, replacement of site furnishings.
900,000
Airport Masterplan Update
Master pan update that will encompass both Tracy
Municipal Airport and New Jerusalem, contingent on
Airport layout plan completion.
250,000
Total $ 9,225,000
ARPA Update
Update on American Rescue Plan Act
Funding Allocation
Eligible Programs
(In Millions)
Revised
Funding
Allocation
Update
Provide Government Fiscal
Response
(Homeless Programs)
$4.5 Homeless shelter in design; developing warming center contract
Hazard Pay
(2% of salary)
$1.5 Complete: Paid in August 2022
Address Economic Effects
(Aid to Households,
Businesses, Non-Profits) $4.5
$0.5 M to downtown parklets; $0.5 contract services for business survey and development; remaining funding
will be split between business, non-profits, and aid to households impacted by COVID-19.

Investments in Infrastructure
(Support for Water, Wastewater,
Broadband)
$3.0 Proposed FY22/23 CIP for Bessie Road reconstruction and utility infrastructure
Total Estimated Funding $13.5 (funds must be spent by 2024)40 Next Steps
• May 11th - CIP Chapter presented to Planning
Commission.
• May 17th - CIP included with FY22/23 Budget for
adoption.
41 Summary
• The Capital Improvement Plan (CIP) Outlook is not
intended to provide for precise budgeting
assumptions.
• The adoption of the CIP Outlook does not provide
for appropriations of funds into the City’s budget.
• It is recommended that the City Council receive this
report and provide feedback on the Proposed FY
2022-23 Capital Improvement Program (CIP)
Budget.
42