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- 407 - Capital Improvement Plan This section of the budget contains the City’s Five-Year Capital Improvement Plan (CIP). It also provides specific capital project details (including projected operating budget impacts) and a listing of carry forward projects. In conjunction with the annual budget process, the City prepares a CIP that identifies anticipated project expenditures greater than $25,000 over a multi-year timeframe. The CIP provides the City with a strategic planning document that guides near- and medium- term expenditures for preservation of City infrastructure; major investments in existing or new facilities; and other asset maintenance and investment expenditures, including technology and communications systems. Projects shown in the first year receive budgetary appropriations as part of the FY 11 budget approval process. Summary As shown below, the proposed FY 2011-15 CIP contains 13 projects of which two are new and eleven which have been previously included in the City’s adopted CIP. The two new projects that are funded from the CIPR are Police Handgun Replacements in Year 4 and End User Radios for Interoperability in Years 4 and 5, critical and large costs that have not yet been budgeted for. Other changes compared to last year’s CIP include a reduction in half of CIPR funding for the biennial ADA Transition Plan Improvements from $50,000 to $25,000 every other year and a 59% reduction in 5-year CIPR funding for Annual Street Maintenance from $2.9 million to $1.2 million. New Capital Projects Total Budget Timing Source of Funds End User Radios for Interoperability $600,000 Years 4 and 5 CIPR Replacement of Handguns $125,000 Year 4 CIPR Pre-existing Projects Total Budget Timing Source of Funds Accessibility Ramps $100,000 Years 2 and 4 CT ADA Transition Plan Improvements $75,000 Years 1, 3 and 5 CIPR Annual Street Maintenance $3,220,000 Annual CIPR/Grants/VIF Bike/Ped. Traffic Safety Improvements. $125,000 Annual CT/Grants Building Renovation $95,000 Year 1 CIPR Hacienda Ave. Rehabilitation $1,500,000 Year 1 CIPR/CT/Envtl. Services Hamilton/Hwy 17. SB Off-Ramp $1,200,000 Year 2 Private/Grants L.G. Creek W. Trail Expansion $2,500,000 Year 3 Grants Misc. Storm Drainage Improvements. $145,000 Years 1, 3 and 5 Envtl. Services Stojanovich Family Park (Additional) $65,000 Year 1 County OSA Winchester Blvd. Improvements $1,120,000 Year 1 Grants The CIP Committee is recommending the cancellation of the Campbell Park Restrooms project which was previously approved for funding in Year 3 for $250,000 in Park Dedication Fees, due to the uncertainty of this revenue source in the ensuing years. Instead, the Committee recommends focusing any available level of Park Fees towards the completion of the Stojanovich Family Park project. Staff has also altered the traditional ---PAGE BREAK--- - 408 - annual funding of Bike/Pedestrian projects and shifted to biannual funding of ADA ramps and storm drain projects. Year 1 projects recommended for budget appropriations for FY 2010 are: Year 1 Projects Year 1 Budget Source of Funds ADA Transition Plan Improvements $ 25,000 CT Annual Street Maintenance 700,000 Prop. 42 Bike/Pedestrian and Traffic Safety Improvements 25,000 Grants Building Renovation 95,000 Grants/RDA Hacienda Avenue Rehabilitation 1,500,000 Grants/CT Miscellaneous Storm Drainage Improvements 50,000 Grants/CT Stojanovich Family Park 65,000 Grants Winchester Blvd. Improvements 1,120,000 RDA TOTAL $ 3,580,000 Project Funding Sources Revenue for project expenditures comes from a number of funding sources, both restricted and discretionary. For the proposed FY 2011-15 CIP, the primary sources of funding for projects are the City’s Capital Improvement Plan Reserve (CIPR) at $1.4 million and Grants/Private Funds at $1.6 million. Other funding sources include Park Dedication Fees, RDA Bond Proceeds, Construction Tax, and Environmental Services Funds. The CIPR, which is part of the General Fund, is the City’s most flexible funding source and has historically been used for a wide range of project expenditures. By established Council Policy, the CIPR receives a portion of any available General Fund surplus at fiscal year- end. The availability of any funds for the CIPR is dependent on actual expenditures and revenues in a given fiscal year. In years where revenues are strong or expenditures are lower than anticipated, the CIPR increases. In years where revenues are lean and reserves are needed to balance the City’s budget, the CIPR does not increase and proposed projects are required to be deferred or placed on the City’s Unfunded Projects list. Due to the continued weak economy and the City’s ongoing budget challenges, no operating surplus is anticipated to be available for the CIPR for the foreseeable future leaving a funding gap for projects requiring funding from the General Fund. Accordingly, only those projects deemed most critical to the City, or projects that have other funding sources, such as grants or other restricted funds, are able to be recommended for the CIP. This is the predominant reason for the small number of projects being proposed as well as their timing over the ensuing 5-year period. Until such time as the General Fund begins to realize meaningful operating surpluses once again, the ability to fund needed capital projects will be severely constrained. Most significantly, there is not currently projected to be any available funding for projects from the CIPR beyond FY 2013/14. This does not take into account any possible transfer of existing funds in the CIP/CIPR to the operating budget to address the General Fund deficit. ---PAGE BREAK--- - 409 - Environmental Review On April 27, 2010, the Planning Commission held a Public Hearing to consider the proposed CIP. At this meeting, the Commission accepted the CIP, found it be consistent with the City’s General Plan, and recommended that the City Council find the projects in the CIP to be either categorically exempt under the California Environmental Quality Act (CEQA), or to have been considered under previous project approvals. Assumptions The 2011-15 CIP is prepared in accordance with certain assumptions about funding constraints, operating budget implications, City priorities, and work plans as summarized below: • Project and equipment costs, where applicable, are based on departmental estimates. Cost estimates are based on current market and contract experience on similar projects, where available, or order of magnitude cost estimates for larger projects in the early phases of design. Projects managed by Pubic Works include “soft costs” such as staff costs for project management, design, inspection and administration, and consultant services as necessary. • Ongoing operating costs for annual maintenance and technical support are projected for each capital project and as appropriate, are reflected in the operating budget. The only CIP project with significant new operating budget impacts is the development of Stojanovich Family Park. When completed and open to the public, it is estimated that the annual operating costs associated with maintaining this facility will be approximately $58,000 per year. These costs have been included in the City’s multi-year operating budget projections. • Existing work plans, ongoing programs and service level requirements were taken into consideration in project scheduling. Project Selection Criteria Criteria used in evaluating project requests include: • The project’s relationship to the City’s strategic goals and objectives. • The project’s impact on the operating budget (if any). • The nature of the project in terms of preservation of City assets versus new construction or acquisition. • Available financing. • Consequences of not completing the project employee and/or public safety, etc.) Exhibits: 1 CIP Summaries 2 CIP 5-Year Cash Flow Analysis 3 Capital Project Descriptions ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---