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HomeMy WebLinkAbout7.2 Five-Year Capital Improvement Program 2024-2029 – General Fund Projects Fiscal Year 2025-2026 Revisions STAFF REPORT CITY COUNCIL Page 1 of 5 Agenda Item 7.2 DATE: June 3, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Five-Year Capital Improvement Program 2024-2029 – General Fund Projects Fiscal Year 2025-2026 Revisions Prepared by: Michael Boitnott, CIP Manager EXECUTIVE SUMMARY: The City Council will receive a report and provide direction on Fiscal Year 2025-26 revisions to the Five-Year Capital Improvement Program 2024-2029 (CIP) projects funded partially or wholly by the General Fund. Direction provided will be incorporated into an update of the CIP to be considered for City Council adoption on June 17, 2025. STAFF RECOMMENDATION: Receive the report and provide direction on Fiscal Year 2025-26 revisions to the Five-Year Capital Improvement Program 2024-2029. FINANCIAL IMPACT: The financial impact will be determined based on direction of the City Council on revisions to projects. DESCRIPTION: On April 15, 2025, the City Council considered the preliminary update to the Five-Year Capital Improvement Program (CIP) 2024-2029, which included $1,950,000 in requests for new funding. Of that amount, $950,000 was proposed from the General Fund, $500,000 from the Equipment Replacement Fund, and $500,000 from the Information Technology Fund. At the meeting, the City Council also received a report on General Fund revenues, which reflected a reduction in Sales Tax (primarily from the Autos sector) of $3.8 million over Fiscal Year 2025-26. In response, the City Council asked that Staff reanalyze the preliminary CIP with a focus on projects funded fully or partially by the General Fund, and propose adjustments that would alleviate the burden on the General Fund . Specifically, Staff was asked to consider whether projects were “need to haves” versus “nice to haves”. 503 Page 2 of 5 In the current CIP there are 39 projects that are funded wholly or partially by the General Fund (Attachment 1). This includes projects that were funded in Fiscal Year 2024-25 and years prior, but that are still active projects and have remaining budget. In categorizing those projects for potential deferral or elimination, Staff considered the following factors:  Whether the project directly relates to City Council Strategic Plan Objectives.  Current project status.  Whether the project has a grant allocation or other funding obligations.  Whether the City is mandated to complete the project.  Deferred maintenance impacts.  Cost impacts due to project deferral. Based on the factors above Staff categorized the 39 projects into the following three groups:  Tier 1 – Projects tied to external funding obligations and mandates or necessary to maintain assets in operational condition. No change recommended.  Tier 2 – No change recommended at this time.  Tier 3 – Candidates for postponement, deferral, scaling back, or elimination. If future financial projections for the General Fund necessitate adjustments to the funding plan for the CIP, Staff recommends City Council consider revisions to Tier 3 projects first and move to Tier 2 projects if needed. Staff does not recommend changes to the General Fund budgets for Tier 1 projects because those projects are already in construction, have grant funding obligations, or are linked to specific objectives of the City Council Strategic Plan. It should be noted that the impacts of delaying a project include potential cost increases due to inflation, labor shortages, supply chain disruptions, import taxes, and construction material price volatility. Public Works Staff consulted construction management firms regarding the current market conditions and the near-term outlook for project cost escalation. At this time, the consensus is that projects should plan for price escalation of between 3% and 5% annually. This is similar to the escalators over the last two years, and it is Staff’s opinion that such a level of price escalation should not be a primary determining factor for considering whether to delay a project in the near term. Staff identified the following projects as Tier 3 (listed with a project description and the total General Fund amount budgeted):  Shade Structures at Various Facilities and Parks (GINEW01) - $200,000 proposed for FY 2025-26. This project provides for the planning, environmental review, design, and construction of permanent shade structures (i.e. sails, canopies, etc.) at various City facilities and parks. The first phase of the project will be to evaluate where there is a deficiency and need for shade and the type of structure required to meet the needs, with The Wave Sports Pool and Aqua Play Pool being the first location identified . 504 Page 3 of 5 Delaying or eliminating this project would mean that Staff would continue the practice of to only evaluating the need for shade when there is another project at that location, rather than having a comprehensive evaluation and implementation plan in place focusing on providing shade citywide. There is no anticipated cost escalation for the planning phase of the project.  Fallon Sports Park – Field G Upgrades (PK0225) - $650,000 ($500,000 proposed for FY 2025-26). The project provides for the project management, construction management, and the construction of a 60-foot flagpole at the Field G baseball field. Future improvements may include field fence screening/padding with advertising, a wi-fi system (to facilitate streaming games), bleachers/seating for 250-350 people, a new scoreboard, and gate/fence access control. The first $150,000 allocated to the project was for flagpole and sound system installation (completed May 2025) and various smaller improvements planned for the current season. The future improvements (using the balance of $500,000 and potentially more, depending upon the level of upgrades to the stadium seating) may be delayed to future years or moved to the Future Projects category. Staff anticipates a construction cost escalation between 3% and 5% for every year of delay.  Kolb Park Renovation (PK0224) - $2,900,000 ($450,000 in Prior Years; $2,450,000 proposed for FY 2025-26). This project will provide for the planning, design, and construction to renovate the 4.86-acre Kolb Park. The improvements will be consistent with the Parks and Recreation Master Plan and may include the replacement of the restroom building, play equipment, site furnishings, picnic areas, drinking fountains, tot lot fencing, parcourse equipment stations, signage, refreshing of the shade structure, relevelling the existing paver and decomposed granite pathways, and refreshing the landscaping. Staff will also look for opportunities to incorporate Green Stormwater Infrastructure within the park as a part of the renovation. Delaying the start of this project to FY 2026-27 will require additional maintenance of an estimated $10,000 per year until the renovation. This is primarily due to the bathrooms being in general disrepair, and minor additional maintenance/upkeep to other park amenities. Staff anticipates a construction cost escalation between 3% and 5% for every year of delay.  Sunday School Barn Improvements (PK0125) - $385,000 ($125,000 in Prior Years; $260,000 proposed for FY 2025-26). This project provides for the design and construction to renovate the existing wood floor inside the Sunday School Barn at Heritage Park. The original wood floors are not adequate for the types and frequency of use that the building is experiencing. The project is intended to preserve the look and historic fabric of the original wood that is believed to be from the late 1800’s while ensuring the structural integrity and finish of the floor are adequate for the current and planned uses of the barn. 505 Page 4 of 5 Moving this project to the Future Projects category will require additional maintenance ($5,000 per year) and potential weight limitations on the existing wooden floors until replacement, which may also require restrictions on the use of the facility. Staff anticipates a construction cost escalation between 3% and 5% for every year of delay.  Citywide Storm Drain Improvements (ST0124) - $217,500 ($30,000 in Prior Years; $30,000 proposed for FY 2025-26; $157,500 proposed for FY 2026-27). This project will provide for the planning, design, maintenance, and construction of various improvements to citywide storm drainage facilities that may be located outside the public street rights-of-way, such as v-ditches and culverts on City-owned properties or public easements, such as the large G-3 box culvert running parallel to I-580. The first phase of the project will include a storm drainage master plan and/or condition assessment report with recommendations for maintenance or improvements. Future phases will include design and maintenance and/or construction to implement the recommendations from the Master Plan. This project can be removed from the current five-year CIP. Staff anticipates that the master plan and condition assessment phase of this project can be accomplished through funds available in the operating budget in the current and next fiscal year. If any of the recommendations resulting from the master plan are beyond maintenance work, Staff will return to the City Council with a new project for the design and construction phases.  San Ramon Landscape Renovation (ST0218) - $239,065 in Prior Years. This project provides for design and construction to renovate the landscaping along San Ramon Road between Silvergate Drive and Alcosta Boulevard. Proposed renovation includes the removal of failing plants, soil amendment, and installation of new plants, with an emphasis on Bay Friendly and water conserving plant species. Much of the existing landscaping in this area was installed between 1993 and 1995, and some of the planting has reached the end of its life expectancy. Potential funding for Bay Friendly landscaping may be available from Measure D. Removing this project from the current five-year CIP or moving it to the Future Projects category will require the continuation of the current level of maintenance and operation of the existing landscape improvements. Delaying or removing the Tier 3 projects could achieve General Fund savings of up to $1.4 million over three fiscal years, as summarized in Table 1 below. Where a project was deferred and added back, a 5% escalator was applied. 506 Page 5 of 5 Table 1. Potential CIP Adjustments Name Note FY 2024-25 FY 2025-26 FY 2026-27 Project Change Shade Structures at Various Facilities and Parks Move to Future Projects (200,000) (200,000) Fallon Sports Park - Baseball Field G Upgrades Move the future improvements to Future Projects. (500,000) (500,000) Kolb Park Renovation Move to FY 2026-27. (448,999) (2,450,000) 3,043,949 144,950 Sunday School Barn Improvements Move to Future Projects, use maintenance budget for upkeep. (125,000) (260,000) (385,000) Citywide Storm Drain Improvements Remove; use operating budget for first phase (Master Plan). (30,000) (30,000) (157,500) (217,500) San Ramon Road Landscape Renovation Remove; use operating budget for maintenance of existing. (239,065) (239,065) Total (843,064) (3,440,000) 2,886,449 ($1,396,615) Next Steps Direction provided by the City Council to revise the CIP projects funded by the General Fund will be incorporated into the Fiscal Year 2025-26 Budget Update and Five-Year CIP, scheduled for adoption at the June 17, 2025, City Council meeting. STRATEGIC PLAN INITIATIVE: The Preliminary Five-Year Capital Improvement Program 2024-2029 reflects priorities established in the City’s Two-Year Strategic Plan. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) 2024-2029 Capital Improvement Program – Categorization of General Fund Projects 507 2024-2029 Capital Improvement Program - General Fund Projects Attachment 1 Project Number Project Name Prior Years All Funds 2025-2026 2026-2027 2027-2028 2028-2029 Category GI0421 Audio Visual System Upgrade 1,244,040$ -$ -$ -$ -$ Tier 2 GI0121 Citywide Energy Improvements 24,514,270$ 400,000$ -$ -$ -$ Tier 1 GI0122 Civic Center Rehabilitation 2,236,730$ -$ -$ -$ -$ Tier 2 GI0225 Condition Assessment of Water Features 50,000$ -$ -$ -$ -$ Tier 2 GI0120 Dublin Arts Center 14,397,035$ 250,000$ -$ -$ -$ Tier 1 GI0123 Dublin Standard Plans & Details Update 142,500$ -$ -$ -$ -$ Tier 2 GI0219 Electric Vehicle (EV) Charging Stations 427,459$ -$ -$ -$ -$ Tier 1 GI0325 Facilities Parking Lot Resurfacing 500,000$ 500,000$ -$ -$ -$ Tier 1 GI0319 Financial System Replacement 2,515,000$ -$ -$ -$ -$ Tier 1 GI0224 Irrigation System Upgrades 1,840,000$ -$ -$ -$ -$ Tier 1 GI0117 IT Infrastructure Improvement 1,243,600$ -$ -$ -$ -$ Tier 1 GI0521 Library Tenant Improvements 4,835,665$ -$ -$ -$ -$ Tier 2 GI0124 Marquee Signs 845,000$ -$ -$ -$ -$ Tier 2 GI0323 Municipal Fiber 140,000$ -$ -$ -$ -$ Tier 2 GI0221 Resiliency and Disaster Preparedness Imp.1,379,189$ 1,375,000$ -$ -$ -$ Tier 1 GINew01 Shade Structures as Various Facilities and Parks -$ 200,000$ -$ -$ -$ Tier 3 GI0523 Situational Awareness Camera Program 585,000$ -$ -$ -$ -$ Tier 2 GI0425 Waste Enclosures Upgrades 325,000$ -$ -$ -$ -$ Tier 1 PK0122 Alamo Creek Park and Assessment District - Fence Replacement 850,000$ -$ -$ -$ -$ Tier 2 PK0221 Downtown Dublin Town Square Park 111,565$ -$ -$ -$ -$ Tier 2 PK0225 Fallon Sports Park - Baseball Field G Upgrades 150,000$ 500,000$ -$ -$ -$ Tier 3 PK0322 Forest Park 3,538,947$ -$ -$ -$ -$ Tier 1 PK0422 Iron Horse Nature Park and Open Space 6,900,305$ -$ -$ -$ -$ Tier 1 PK0224 Kolb Park Renovation 450,000$ 2,450,000$ -$ -$ -$ Tier 3 PK0124 Parks Playground Replacement 1,109,560$ -$ -$ -$ -$ Tier 2 PK0321 Restrooms Replacement 1,000,000$ -$ -$ -$ -$ Tier 2 PK0125 Sunday School Barn Improvements 125,000$ 260,000$ -$ -$ -$ Tier 3 ST0117 Annual Street Resurfacing 20,133,863$ 2,086,900$ 1,750,000$ 1,850,000$ 1,850,000$ Tier 1 ST0319 City Entrance Monument Signs 485,000$ -$ -$ -$ -$ Tier 2 ST0517 Citywide Bicycle and Pedestrian Improvements 7,130,045$ -$ -$ -$ -$ Tier 1 ST0713 Citywide Signal Communications Upgrade 5,085,427$ -$ -$ -$ -$ Tier 1 ST0124 Citywide Storm Drain Improvements 30,000$ 30,000$ 157,500$ -$ -$ Tier 3 ST0221 Downtown Dublin Street Grid Network 228,020$ -$ -$ -$ -$ Tier 2 ST0216 Dublin Boulevard Extension - Fallon Road to North Canyons Parkway 30,991,710$ -$ -$ -$ -$ Tier 2 ST0121 Green Stormwater Infrastructure 2,573,375$ -$ 450,000$ -$ -$ Tier 1 ST0118 Iron Horse Trail Bridge at Dublin Boulevard 13,454,439$ -$ -$ -$ -$ Tier 1 ST0218 San Ramon Road Landscape Renovation 238,660$ -$ -$ -$ -$ Tier 3 ST0514 San Ramon Road Trail Lighting 173,461$ -$ -$ -$ -$ Tier 2 ST0323 Village Parkway Reconstruction 1,600,000$ 8,450,000$ -$ -$ -$ Tier 1 Total 16,501,900$ 2,357,500$ 1,850,000$ 1,850,000$ General Fund Only 508 2024-2029 Five-Year Capital Improvement Program General Fund Projects June 3, 2025 509 Capital Improvement Program •The Preliminary Five-Year Capital Improvement Program (CIP) 2024-2029 Update was presented on April 15, 2025. •Staff was asked to reanalyze the preliminary CIP with a focus on projects funded fully or partially by the General Fund. 39 projects were identified. •Staff categorized 39 projects into 3 Tiers. Tier 1 –Projects tied to external funding obligations and mandates or necessary to maintain assets in operational condition. No change recommended. Tier 2 –No change recommended at this time. Tier 3 –Candidates for postponement, deferral, scaling back, or elimination. 510 Capital Improvement Program Tier 1 –No change recommended GI0121 Citywide Energy Improvements PK0322 Forest Park GI0120 Dublin Arts Center PK0422 Iron Horse Nature Park and Open Space GI0219 Electric Vehicle (EV) Charging Stations ST0117 Annual Street Resurfacing GI0325 Facilities Parking Lot Resurfacing ST0517 Citywide Bicycle and Pedestrian Imp. GI0319 Financial System Replacement ST0713 Citywide Signal Communications Upgrade GI0224 Irrigation System Upgrades ST0121 Green Stormwater Infrastructure GI0117 IT Infrastructure Improvement ST0118 Iron Horse Trail Bridge at Dublin Boulevard GI0221 Resiliency and Disaster Preparedness Imp.ST0323 Village Parkway Reconstruction GI0425 Waste Enclosures Upgrades No. Project Name No. Project Name 511 Capital Improvement Program Tier 2 – No change recommended at this time GI0421 Audio Visual System Upgrade PK0122 Alamo Creek Park and Ass. Dist.- Fence Rep. GI0122 Civic Center Rehabilitation PK0221 Downtown Dublin Town Square Park GI0225 Condition Assessment of Water Features PK0124 Parks Playground Replacement GI0123 Dublin Standard Plans & Details Update PK0321 Restrooms Replacement GI0521 Library Tenant Improvements ST0319 City Entrance Monument Signs GI0124 Marquee Signs ST0221 Downtown Dublin Street Grid Network GI0323 Municipal Fiber ST0216 Dublin Blvd. Ext. - Fallon Rd. to N. Canyons Pky. GI0523 Situational Awareness Camera Program ST0514 San Ramon Road Trail Lighting No. Project Name No. Project Name 512 Capital Improvement Program Tier 3 – Potential CIP Adjustments Name Note FY 2024-25 FY 2025-26 FY 2026-27 Project Change Shade Structures at Various Facilities and Parks Move to Future Projects (200,000) (200,000) Fallon Sports Park - Baseball Field G Upgrades Move the future improvements to Future Projects. (500,000) (500,000) Kolb Park Renovation Move to FY 2026-27. (448,999) (2,450,000)3,043,949 144,950 Sunday School Barn Improvements Move to Future Projects, use maintenance budget for upkeep. (125,000) (260,000) (385,000) Citywide Storm Drain Improvements Remove; use operating budget for first phase (Master Plan). (30,000) (30,000) (157,500) (217,500) San Ramon Road Landscape Renovation Remove; use operating budget for maintenance of existing. (239,065) (239,065) Total (843,064) (3,440,000) 2,886,449 ($1,396,615) 513 Staff Recommendation •Receive the report and provide direction to Staff on revisions to the Five-Year Capital Improvement Program. 514