TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Anna Luke-Jones, Public Works Senior Management Analyst
SUBJECT:Title
Presentation of the Proposed Fiscal Year 2016-2017 to Fiscal Year 2020-2021 Five- Year Capital Improvement Plan (Public Works Director Olmos).
RECEIVE REPORT
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive the Proposed Fiscal Year 2016-2017 to Fiscal Year 2020-2021 Five-Year Capital Improvement Plan (CIP).
Body
FISCAL IMPLICATIONS:
Depending on City Council feedback, resources from transportation, water, sewer, stormwater, parking, and general funds may be impacted. The five-year 2017-2021 CIP includes 91 projects totaling $110,672,596 from a variety of funding sources. There are $47,957,596 in carryover funds and proposed new funds of $9,459,2000 for FY 2016-2017 from a number of funding sources. It is important to note that the availability of funds and timing of new projects depends largely upon the development of the budget and the five year forecast, which will be accomplished in the coming weeks.
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 ($17,728,120), water system projects ($33,306,850), and Sepulveda Bridge Widening Project ($20,180,435) are a combined total $71,215,405. 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 ($110,672,596).
EXECUTIVE SUMMARY:
The attached five-year CIP includes a total of 91 projects: 63 carryover projects which have already been funded by City Council, 17 new projects proposed to be funded for first time in FY16-17, and 11 future projects for the remaining four years (FY 2018-2021). These projects have varied costs, public interest, and impacts, and can be referenced on the attached Projects by Type spreadsheet (Attachment No. 1). This report includes descriptions of each funding source and a tentative timeline of the remainder of the CIP adoption process. A Power Point Presentation highlighting the City’s CIP process, funding sources and a summary of proposed funding for FY16-17 is attached to this report (Attachment No. 2).
BACKGROUND:
City Council
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.
Planning Commission
On April 27, 2016, the Planning Commission will review the proposed Fiscal Year 2017-2021 CIP. The Planning Commission’s role is to evaluate the Capital Improvement Plan’s General Plan conformance.
Parking and Public Improvements Commission (PPIC)
On April 28, 2016, the Parking and Public Improvements Commission (PPIC) will review the proposed Fiscal Year 2017-2021 CIP. The PPIC’s role in the CIP is to provide comments for City Council’s consideration.
DISCUSSION:
The proposed five-year CIP includes 91 projects. There are 63 carryover projects, 17 new projects proposed to be funded for first time in FY16-17, and 11 future projects for the remaining four years (FY 2018-2021). These projects have varied costs, public interest, and impacts that are listed on the attached Projects by Type spreadsheet (Attachment No. 1). Projects involve carryover funding for various reasons including planning and funding for larger, long-term projects, multiple-phase projects, grant programming of fund expenditures, coordination with other CIPs, and outside agency review/approval. Staff will present an overview of the projects considered for the CIP and will be prepared to answer questions from City Council or members of the public.
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 may be used for project reference during the presentation and is listed as Attachment No. 1.
Overview of FY 2017-2021 Capital Improvement Plan Funding Sources
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.
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
The following summary addresses each “type” of project. Attachment 1, 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 eleven (11) Wastewater projects (5 carryover, 1 new, and 5 future projects), with $2,778,120 in carryover funds and $100,000 in requested funding for FY2016-2017.
- Proposed new projects will focus on continuation of sewer main repairs/replacements and lift station upgrades, emergency storage, and force main replacements.
Water Projects
The five-year CIP includes eleven (11) Water projects (6 carryover, 2 new, and 2 future projects), with $5,601,850 in carryover funds and $3,835,000 in requested funding for FY2016-2017.
- Plan includes a proposed new project to allow for automated water meter reading is proposed for FY 2016-2017 and FY 2017-2018.
Stormwater Projects
The five-year CIP includes two (2) Stormwater projects (2 carryover), with $1,152,700 in carryover funds and $712,700 in requested funding for FY2016-2017.
- The current stormwater fee (from the Utility Service Charge) only funds a portion of operational costs. Current allocations are not sufficient to fund needed infrastructure replacements and are not expected to meet the future needs of the system improvements based on the NPDES permit requirements.
- Drainage projects on Laurel and at 14th / Magnolia have been added to the scope-of-work for the Storm Drain Repair project.
Streets/Transportation
The five-year CIP includes forty (40) Streets/Transportation projects (27 carryover, 11 new, and 2 future project), with $31,346,491 in carryover funds (including $19,680,435 for the Sepulveda Bridge project) and $3,230,000 in requested funding for FY2016-2017.
- Scheduled projects are categorized as Capacity Enhancements, Pedestrian and Safety Improvements, and Street Repairs/Rehabilitation.
- Grant and one-time funded projects that are currently scheduled are primarily capacity related (Sepulveda Bridge, traffic signal intersection improvements) or pedestrian improvements.
- Annually funded projects include multiple funding sources. These funds are restricted to certain uses and represent reliable sources of revenue. These funds are dedicated to annual slurry seal projects, annual concrete repair projects, and street resurfacing projects.
Facilities (CIP Fund and Special Revenues Fund)
The five-year CIP includes twenty-two (22) Facilities projects (20 carryover and 2 new projects), with $6,291,230 in carryover funds and $727,000 in requested funding for FY2016-2017. Eighteen of the twenty-two facility projects are solely funded from the CIP fund; the remaining four projects include funding from special revenue sources such as the State Pier Fund, other enterprise funds, or private contributions.
- Previously approved and proposed projects are consistent with the 2013 Facilities Assessment Study. The CIP is based on a 10-year expenditure forecast for the combined facilities with a total anticipated combined expenditure over the study period of $10,500,000 and an average annual expenditure of $1,000,000. To catch-up on construction of improvements, no additional funds are requested in FY2016/2017.
- Proposed new projects include the Village Field turf replacement and the Ceramics Studio Renovation.
Parking Projects
The five-year CIP includes six (6) Parking projects (3 carryover, 1 new project, and 2 future projects), with $787,205 in carryover funds and $854,500 in requested funding for FY2016-2017.
- Scheduled projects are consistent with the 2013 Parking Structures Assessment study. The CIP is based on a 10-year expenditure forecast with a total anticipated combined expenditure over the study period of $2,100,000.
- Identified parking structures work has been prioritized based on deficiencies found during the 2013 assessment.
Tentative FY 2017-2021 Capital Improvement Plan Schedule
The following tentative schedule reviews the actions which will need to occur and suggests a general schedule so that the effective date of funding appropriations are realigned with the approval of the City Operating Budget.
- February 16, 2016: CIP City Council Review
- April 5, 2016: CIP City Council Review
- April 27, 2016: Planning Commission Adoption
- April 28, 2016: Parking and Public Improvements Commission Review
- May 2016: City Council Study Session (If Requested)
- June 21, 2016: Consideration of CIP Adoption
- July 1, 2016: Adopted FY 2016-2017 CIP Effective Date
ENVINRONMENTAL REVIEW:
Environmental review will be performed for each project before award of construction contracts per the California Environmental Quality Act (CEQA) to document and consider any environmental impacts.
Attachments:
1. FY 2017-2021 Proposed Projects by Type Spreadsheet (Excerpt from Capital Improvement Program)
2. Powerpoint Presentation