TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Prem Kumar, City Engineer
Anna Luke-Jones, Public Works Senior Management Analyst
SUBJECT:Title
Conduct Public Hearing Regarding Resolution No. 16-0034 to Consider the Fiscal Years 2017-2021 Capital Improvement Plan (Public Works Director Olmos).
CONDUCT PUBLIC HEARING; ADOPT RESOLUTION NO. 16-0034
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council adopt resolution no. 16-0034, approving Fiscal Years 2017-2021 Capital Improvement Plan (CIP) projects.
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EXECUTIVE SUMMARY:
The five-year 2017-2021 CIP includes 90 projects totaling $107,793,940 from a variety of funding sources. The funding appropriation request for FY2016-2017 is $9,906,500, and is included in the City’s Operating Budget. The draft CIP has been reviewed at several public meetings including two City Council meetings, a Planning Commission meeting, a Parking & Public Improvements Commission meeting and a Study Session. Upon adoption, the effective date of the Capital Improvement Plan would be July 1, 2016.
FISCAL IMPLICATIONS:
Funding for the expected expenditures for FY2016-2017 and FY2017-2018 projects, the first and second year of the five-year Capital Improvement Plan, are included in the City’s Operational Two-Year Budget (presented separately from this report). The second year is included in the two-year budget as a place holder and will be re-evaluated once the FY 2018-2022 CIP is developed later this calendar year.
The five-year 2017-2021 CIP includes 90 projects totaling $107,793,940 from a variety of funding sources. The funding appropriation request for FY2016-2017 is $9,906,500. Finance has confirmed that sufficient funds are available to finance these projects based on the preliminary Five Year Forecast.
While the total funding (carryover funds and new funds) represents a significant investment in the City’s infrastructure, it is important to note that the wastewater (sewer) system projects ($16,622,835), water system projects ($32,751,780), and Sepulveda Bridge Widening Project ($19,450,710) are a combined total $68,825,325. Therefore, the wastewater projects, water projects, and Sepulveda Bridge Widening Project together make up approximately 64% of the overall (carryover funds and new funds) five-year Capital Improvement Plan.
BACKGROUND:
The Capital Improvement Plan is a tool to assist the City Council to make capital project decisions. Most capital projects are long-term design-construction projects, and may require funding beyond one fiscal year. This is why a five-year plan is proposed to the City Council each year, so that long-term planning may be considered. The document is dynamic and may change as the City’s priorities and needs change. The Capital Improvement Plan allows for multiyear systematic scheduling of local physical improvements based on sound planning, public demand for improvements, and the City’s ability to fund the improvements.
Annually, the City Council considers and approves projects to be funded in the upcoming fiscal year. In addition, projects for the subsequent four years are listed, but funding is not approved until the appropriate fiscal year. However, review of subsequent year projects allows for the planning and budgeting of the improvements, communicates City Council intent, and assists in organization of capital and maintenance projects in future CIP work.
The following is a summary of City Council’s most recent review of this item along with the upcoming PPIC and Planning Commission meetings that are important in the CIP approval process.
February 16, 2016 City Council Meeting
At their February 16, 2016 meeting, the City Council reviewed the first draft list of proposed projects for the FY17-21 Capital Improvement Plan.
April 19, 2016 City Council Meeting
At their April 19, 2016 meeting, the City Council reviewed the draft list of proposed projects for the FY17-21 Capital Improvement Plan before it was presented to the Planning Commission and PPIC.
Planning Commission
At their April 27, 2016 meeting, the Planning Commission reviewed the proposed Fiscal Year 2017-2021 CIP. The Planning Commission’s role was to evaluate the Capital Improvement Plan’s General Plan conformance, and on April 27th they found the proposed CIP to be in conformance of the City’s General Plan.
Parking and Public Improvements Commission (PPIC)
At their April 28, 2016 meeting, the PPIC reviewed the proposed Fiscal Year 2017-2021 CIP. The PPIC’s role was to provide comments for City Council’s consideration.
The Commission expressed concerns regarding the condition of the residential pavement at some locations and inquired as to how improvement recommendations are developed. Staff responded that the streets are evaluated individually by staff with the guidance of the City’s Pavement Management Program (PMP), but in the near future, the PMP will be the primary tool to develop CIP pavement improvement recommendations. Staff agreed to provide an overview of the PMP to PPIC in the future as background and education.
May 5, 2016 Study Session
At their May 5, 2016 Study Session, the City Council reviewed the final draft of the proposed projects for the FY17-21 Capital Improvement Plan.
DISCUSSION:
The proposed five-year CIP is provided as Attachment 4 and Resolution 16-0034 is provided as Attachment 5. The 5-year plan includes 90 projects. This is one more than was reported at the May 5, 2016 Study Session because the Skate Spot was added to the Facilities project list after its recent approval by City Council. Of the 90 total projects, seventeen (17) are brand new projects to the proposed five-year CIP (Attachment 1). In addition, there are seventeen (17) existing CIP projects that are in need of additional funding in FY2016-2017 (Attachment 2).
Projects in the City’s Capital Improvement Plan are typically presented in two formats; projects are organized by project type and projects are organized by fund source. There are overarching considerations in each of the funding areas (Wastewater, Water, Stormwater, Streets/Transportation, Facilities, and Parking) that require discussion and direction. The Projects by Type spreadsheet is an excerpted section of the proposed Capital Improvement Plan and shows the entire five-year plan (Attachment No. 3).
Changes to Capital Improvement Plan since May 5, 2016 Study Session
Changes that have been made to the Capital Improvement Plan since the May 5, 2016 Study Session may be reviewed in Attachment 6 and are listed as follows:
- The Parkview sidewalk improvement has been added to the project description in the Annual Curb, Gutter & Ramp Replacement Project summary sheet. The Parkview work was carried over from a previous fiscal year. A map for this improvement has been added to the project summary sheet.
- The Skate Spot project has been added to the CIP after funding was appropriated by City Council at the June 7, 2016 meeting. The City has been awarded a reimbursable grant. The funds are shown under the "Previously Committed Unspent Funds" column since the project funding is approved in the FY15-16 year.
Overview of FY 2017-2021 Capital Improvement Plan Funding Sources
There are multiple sources by which a project may be funded.
Water and Wastewater Funds
The Water and Wastewater Funds are used for repairs and improvements to the City’s water and wastewater infrastructure. Proposed water and sewer projects were identified through Utility Master Plans completed in 2010. These plans indicated significant investment is required to assure the long-term dependability of the water and sewer systems.
Stormwater Funds
The Stormwater Funds are used for repairs and improvements to the City’s storm drain system. The City’s General Fund will subsidize the Stormwater Fund in FY16-17 due to a lack of revenue. With the new NPDES permit, the City’s responsibility to create or improve solutions for storm drain pollution prevention is greatly increasing.
Current allocations are not sufficient to fund needed infrastructure replacements and are not expected to meet the future system improvements.
Capital Improvement Fund
Capital Improvement Funds are generated from General Funds and are distinguished from other funds as being more discretionary and not restricted to certain uses such as Water Funds or funds reserved in various dedicated fund types.
Gas Tax Fund and Measure R (Local Return Fund)
The City funds street improvement projects with the dollars it receives from various sources including State and County Gas Tax Funds. These funds are restricted and may only be used for street-related improvements. Annual street improvements typically include the Slurry Seal Program, the Concrete Curb, Gutter and Ramp program and arterial and collector pavement rehabilitation projects.
Beginning in 2009, the City began receiving Measure R Local Return funding. The funding is available, on a per-capita basis, through a Los Angeles County measure passed by voters in 2008. Funds may be used for street and transit purposes.
Parking Funds
The Parking Funds are used for repairs and improvements to the City’s parking lots and meters. Funding is obtained through the city’s parking meter program.
Overview of the FY2017-2021 Capital Improvement Plan
Changes Since the May 5, 2016 Study Session
Changes made to the CIP document since the May 5, 2016 Study Session are as follows:
- The Skate Spot project ($300,000) was added as a Facilities
The following summary addresses each “type” of project. Attachment 3, the Projects by Type Spreadsheet, provides a five-year plan with project titles and individual costs of each project.
Wastewater Projects
The five-year CIP includes ten (10) Wastewater projects with $100,000 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for the design for the Spot Repairs of Gravity Sewer Mains in Areas 5, 6 & 7.
Water Projects
The five-year CIP includes eleven (11) Water projects with $3,835,000 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for Painting the Block 35 Elevated Tank, the Peck Ground Level Reservoir Replacement, Redrilling and Equipping Well 15 and a proposed brand new project to allow for Water Meter Upgrade and Automation.
Stormwater Projects
The five-year CIP includes one (1) Stormwater project with $210,000 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for continued funding for Stormwater Quality Improvement Catch Basin Inserts and Storm Drain Repairs. Drainage projects on Laurel and at 14th / Magnolia have been added to the scope of work for the existing Storm Drain Repair project.
Streets/Transportation
The five-year CIP includes forty-one (41) Streets/Transportation projects with $4,030,000 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for capacity enhancements, pedestrian and safety improvements, concrete repairs, asphalt pavement projects and traffic signal improvements.
Facilities (CIP Fund and Special Revenues Fund)
The five-year CIP includes twenty-four (24) Facilities projects with $877,000 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for workspace modifications, design for the Village Field Turf Replacement Project, the Ceramics Studio Renovation, and the Fiber Master Plan.
Parking Projects
The five-year CIP includes six (6) Parking projects with $854,500 in requested funding for FY2016-2017.
- The FY2016-17 requested funding is for Parking Structure Rehabilitation and Reinvestment and Pier Lot Safety Lighting.
PUBLIC OUTREACH/INTEREST:
City staff has engaged in conversations with the public over several issues that became capital projects. The draft CIP project list has been presented and public comment has been provided for this document at two public City Council meetings, a public Planning Commission meeting, a public PPIC meeting, and a public Study Session.
ENVIRONMENTAL REVIEW
Environmental impacts will be evaluated and assessed on a project-by-project basis before construction commences.
LEGAL REVIEW
City Attorney reviewed and approved Resolution 16-0034 as to form.
ATTACHMENTS:
1. Projects Brand New to the CIP
2. Existing CIP Projects Needing FY 2016-17 Funding
3. Projects by Type Spreadsheet CIP 17-21
4. Five Year CIP 2017-2021 for Adoption
5. Resolution No. 16-0034
6. Adjustments to the CIP Since May 5, 2016