HomeMy WebLinkAbout01-16-2018 Item 11 Review of the 10-Year Capital Improvement Plan (CIP) & Potential Funding Options
Meeting Date: 1/16/2018
FROM: Daryl Grigsby, Public Works Director
SUBJECT: REVIEW OF THE 10-YEAR CAPITAL IMPROVEMENT PLAN (CIP) AND
POTENTIAL FUNDING OPTIONS
RECOMMENDATION
Receive a presentation on the 10-Year CIP, including potential funding options, and direct staff
to:
1. Continue to adjust and refine the 10-Year CIP project list, identify priority projects
and themes, and clarify level of General Fund support, based on City Council
priorities and other factors, including the results of the Capital Facilities Fee Program
(AB 1600) project; and
2. Continue to evaluate potential funding options to support the 10-Year CIP, including
Community Facilities District formations, General Obligation Bonds, and additional
tax measures such as sales tax and/or transient occupancy tax (TOT); and
3. Return to the City Council in April 2018 with a more refined 10 Year project list and
detailed recommendations for funding all or a portion of those projects.
DISCUSSION
Report in Brief
This report analyzes the 10-year CIP need for the City. The 10-year CIP is preliminary and is
based on 1) Maintenance of Existing (assets), 2) Enhancement of Existing (assets) and 3) New
Projects. The list of New Projects is preliminary and is based on adopted plans to implement key
community goals. This report concludes that existing resources are only barely adequate to fund
Maintenance of Existing and that new revenues will be required to fund Enhancement of
Existing or New Projects. The report summarizes potential revenue sources that could fill the
gap.
Capital Project Lists and Categories
At the December 12, 2017 Council meeting, the City Council received a high-level report on the
first 10-Year look at specific capital projects as identified in several policy and planning
documents approved over the last several years. That review was a component of both the Fiscal
Health Response Plan and the Major Council Goal of Fiscal Sustainability and Responsibility.
Specifically, that Major Council Goal had two objectives relative to infrastructure financing. The
first was the development of a creative financing plan to replace critical public safety facilities
(i.e. Police Stations and Fire Stations). The second is to develop creative infrastructure financing
options (grants, land-based funding, local revenues) for Council consideration and implement as
directed. The due dates for these objectives are summer 2018 for the first objective and spring
2018 for the second objective.
As discussed at the December meeting, the 10-Year Capital Improvement Plan (CIP) is currently
under review and is different from the 5-Year CIP included in each Financial Plan in that it
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includes projects beyond the existing General Fund allocations for capital projects. The 10-Year
CIP, therefore, enables the City Council to see the costs and timeframe for those projects
identified in planning documents.
The planning documents utilized in developing the 10-Year CIP included, but were not limited
to:
1. Land Use and Circulation Element
2. Bicycle Transportation Plan
3. Downtown Concept Plan
4. Mission Plaza Concept Plan
5. Area Specific Plans for Margarita, Airport, and Orcutt
6. Saving Special Places Forever: A Vision Plan to Complete and Sustain the San Luis
Obispo Greenbelt
7. Anticipated projects in the ADA Transition Plan, Park and Recreation Element and
Facilities Plan
An important consideration is that the 10-Year CIP is a very preliminary summary. While staff
has included projects from the planning documents listed above, the list has not yet undergone
the standard staff, advisory body, community or Council review and discussion. Therefore, it is
important to keep in mind this list is a preliminary look at the 10-Year CIP, and, it is possible
that projects could be deleted, modified or added to this list. In addition, cost estimates could be
revised based upon better future information1. One example is the Parks and Recreation Element
General Plan update that is currently underway and could identify additional projects. The
purpose of this preliminary review of the 10-Year CIP is to provide Council and the community
with an order of magnitude projection of the City’s future capital needs and the starting point for
answering the question, ‘how will the City fund future capital needs to accomplish the
community’s vision?’
All the cost estimates for the projects shown in Attachments A and B are derived from the
Planning documents noted above. In addition, where the Planning document did not specify a
cost, or the project did not arise from a Planning document, city engineering staff made a rough
estimate of the project cost based on best available information. It is anticipated that as Council
reviews project costs from the 10-Year CIP at future meetings, the cost estimates will be further
refined.
Another factor that could modify General Fund assumptions are the policy adjustments or other
changes to the amount of funding generated for projects that are included in the City’s Capital
Facilities Fee Program (AB 1600). The City Council will conduct a second study session on
January 9, 2018, to discuss these projects. Adjustments that may be directed by the City Council
to support development feasibility and increase housing production could increase the necessary
General Fund commitment for various projects included in the 10-Year CIP. If direction was
provided on January 9th that will impact the 10-Year CIP, that information will be provided to
Council in April 2018.
1 It is important to note that the project list does not reflect anticipated financing costs. Staff has engaged our
outside financial advisor, PFM to provide details on the anticipated financing costs for larger projects.
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Another important consideration is that, the information presented in this report, is focused on
General Fund projects or only a General Fund component cost of a project. For example, the
some of the transportation projects includes Traffic Impact Fees, Developer Contribution,
Grants, Debt Financing, and General Funds. The only cost shown is the General Fund share of
the total project cost. The rationale for this method is that the General Fund represents the
largest discretionary funding source to accommodate community needs and Council priorities. It
is also important to note that the majority of the City’s General Fund contribution to Capital
projects is derived from the Local Revenue Measure.
Council may recall that in December staff categorized all capital projects into the following three
categories
1. Annual Maintenance: Projects included in every Financial Plan which maintain existing
infrastructure.
2. Rehabilitation and Replacement: Replacement projects which occur as needed, such as
Marsh St Bridge replacement.
3. New Project: Projects which add a facility or asset to the existing city inventory.
After further consideration and review of best practices in other agencies, staff is recommending
the following framework for reviewing capital projects. Staff recommends this format not just
for the 10-Year CIP, but for all future Financial Plans. The proposed structure is as follows:
1. Maintenance of Existing: Projects that maintain existing City infrastructure.
2. Enhancement of Existing: Projects that substantially enhance existing City infrastructure;
an example would be the implementation of the Mission Plaza Concept Plan.
3. New Projects: Projects that provide a new facility or asset.
This framework serves two purposes. First, this approach more clearly conveys the project types.
Staff has also reviewed best practices in other municipalities and found the above three
categories are utilized in other agencies. Using the new categories, a project either maintains
what exists, enhances what exists, or, is providing something new for the community. The
second benefit is that this framework could serve as a fundamental ranking system for projects.
For example, projects which maintain existing city assets would generally be prioritized over
those which enhance city assets. In addition, maintaining or enhancing existing facilities would
generally be prioritized over new projects. Lastly, the framework helps show when funding
limitations or opportunities can help advance types of projects.
Maintenance of Existing
Based on prior Council direction, this category of projects is considered top priority for General
Fund allocations. Funds allocated to projects in this category avoid costlier future repairs, reduce
liability and provide for safer facilities. It is important to note that the 10-Year Project list does
not dramatically increase funding for maintaining existing infrastructure in the near term. For
example, pavement maintenance does not include funding to dramatically improve the City’s
Pavement Condition Index (PCI), or increase the frequency of re-investments to replace storm
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drains or sidewalks. Currently, the only added level of service in the 10 Year CIP for
Maintenance of Existing is funding for Urban Forest Maintenance.
The increases to the Maintenance of Existing baseline from Years 2022-27 is due to anticipated
expansion of the storm drain replacement program from CMP (Corrugated Metal Pipe) only, to
all the pipe types in the system. CMP is a material that was used for storm drain installations in
the 1960s and 1970s. This material comprises approximately 25% of the City’s storm drain
infrastructure and is at the end of design or useful life. The City funds storm drain infrastructure
maintenance at a level that is adequate to address CMP removal from the storm drain system and
does not address the remaining 75% of the storm drain network. This proposed funding would
increase the maintenance efforts to the entire storm drain network. In addition, it is possible that
in future years this expense could be allocated to a potential storm water utility fee. Aside from
the expansion of the storm drain replacement program to include the entire system, the City’s
Maintenance of Existing 10 Year need is essentially funded from existing city General Fund
resources.
The Maintenance of Existing chart above confirms that if this is the City’s priority, the $6 M
annual average CIP allocation funds all or part of this category over the 10 – Year horizon.
Therefore, those projects in the other two categories, Enhancement of Existing and New Projects,
are dependent upon new funding sources for construction and implementation. The charts below
provide a rough order of magnitude of future needs above and beyond existing financial
resources.
Maintenance and Enhancement of Existing, and New Projects
The charts below provide a graphic look at all three categories in the 10-Year CIP. The chart
below indicates that, if Maintenance of Existing is the top priority and essentially funded, then
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that 15% of the total city need is met with existing resources. Therefore, all projects in
Enhancement of Existing and New Project list, 85% of the total need, requires additional
funding. The specific projects can be found in Attachment A to this staff report.
Enhancement of Existing and New Projects To clarify the types of projects in the
Enhancement of Existing and New Projects categories, staff developed the following
subgroupings:
a. Transportation: Transportation and Multi-Modal projects which provide new or
enhanced mobility opportunities
b. Community Enhancements: Projects that improve community health, safety or
recreational opportunities)
c. Public Facilities: Projects that primarily improve or provide new City buildings
including Public Safety facilities
The chart below, therefore, puts all the potentially unfunded projects in Enhancement of Existing
and New Project in the above three subgroupings.
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As the table demonstrates, the categories of Transportation, Community Enhancements or Public
Facility enables the possible grouping of projects into theme of projects for a funding package.
For example, a Transportation funding package could include the Broad Street and 101 Ramp
Closure, and completion of the Railroad Safety Trail. A Public Facility/Public Safety measure
could include a New Police Headquarters and replacement of Fire Stations Nos. 2 and 3.
Community Enhancements could include Parks and Recreation Master Plan projects and the
Mission Plaza and Downtown Concept Plan projects.
Looking at the total of projects needs and with community input and Council direction to
accomplish these projects within the next 10 years would suggest that alternative funding or
enhanced General Funds are needed. See Attachment B for a complete listing of Enhancement
of Existing and New Projects by grouping.
Funding Options
As Council considers funding options, it should be noted that the total need over the 10-year
period is either all or a portion of the Enhancement of Existing and New Project categories.
As shown in the report above, based on the various approved plans and previous Council
direction, in order for the City to achieve the objectives, alternative funding sources will need to
be secured. The General Fund fiscal forecast assumes a leveled contribution toward the Capital
Improvement Plan with a modest increase based on the Local Revenue Measure sales tax
contribution.
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As staff refines the project list and recommendations for Strategic Budget Direction in April
2018, funding options will be explored.
Funding options will be developed based on the need. When considering funding options, staff
will evaluate whether a project can be funded on a pay-as-you go basis or debt financing. Both
options will require additional revenues above current levels.
Options to raise revenue will continue to be developed prior to April 2018 and a full-analysis of
factors will be presented for revenue options such as Community Facilities Districts formation,
General Obligation Bond and sales tax and TOT revenue measures. Staff will include in the
analysis revenue options for Council consideration that can raise the required dollar amount.
Staff will also analyze the likelihood of voter or other approval and the risk factors through
survey analysis and case studies.
Next Steps
1. January – February. Staff respond to Council questions and directions from January 16
meeting. Staff begin preliminary review and analysis of project list. Staff further analyze
funding options based on Council Direction
2. February 20, 2018. Mid-Year Budget discussion. Staff provide Council additional
information on project list and funding options
3. February – April 2018. Staff follow-up on Council direction with refinement of projects
and funding options
4. April 17, 2018. Strategic Budget Direction.
5. June 2018. Supplemental Budget Review
CONCURRENCES
Community Development Department, Police, Fire, Finance, Parks and Recreation,
ENVIRONMENTAL REVIEW
The review of the 10-year Capital Improvement Plan (CIP ) and consideration of potential
funding options is exempt from environmental review as a Statutory Exemption under Section
15262, Feasibility and Planning Studies (CEQA Guidelines). Each project lis ted as part of the
10-year CIP will need future authorization and environmental review prior to actual funding and
construction.
FISCAL IMPACT
The report presents and identifies funding needs to achieve Capital Improvement Program
projects embedded within planning documents approved by the Council. There is no fiscal
impact action at this time.
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ALTERNATIVES
Do not direct staff to propose funding options for future projects.
Attachments:
a - Project Types
b - Project Groupings
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#General Fund Projects by Type 10 Year Total Timeframe
Enhancement of Existing
1 919 Palm Renovations $255,000 2
2 ADA Transition Plan Implementation $800,000 8
3 Bicycle Facility Improvements $1,220,000 10
4 Broad Street & US 101 Ramp Closures $190,000 2
5 City Hall Annex Renovation $15,900,000 3
6 City Hall Renovation $9,550,000 3
7 City/County Library Major Maint. & ADA Compliance $405,300 1
8 Corporation Yard TI $600,000 2
9 Downtown Renewal $1,110,000 7
10 DTC - Broad Street Bridge Replacement with Creek Walk Expansion $3,500,000 5
11 Emerson Park Rehabilitation $250,000 1
12 Emerson Park Restroom $350,000 1
13 Emerson Park Safety Enhancements (Lighting/Gates)$50,000 1
14 Intersection Control Upgrades $1,000,000 4
15 Jennifer Street Bridge: Improved access to Bill Roalman BB $150,000 2
16 Laguna Lake Dredging and Sediment Management Project Implementation $15,040,000 10
17 Library Community Room & Conference Room Renovation $60,000 1
18 Ludwick Community Center Retrofit $270,000 2
19 Marsh & Higuera 2-Way Conversion $1,800,000 3
20 Mission Plaza Restroom Replacements and Enhancements $1,270,000 4
21 Neighborhood Traffic Improvements $1,275,000 10
22 Park Usability Improvements $45,000 1
23 Parks and Recreation Interior Office Rehabilitation $116,000 2
24 Police Department Space Improvements $824,000 5
25 Police Station Replacement $44,765,000 5
26 Rebuild Fire Station 2 (at current location)$10,100,000 3
27 Rebuild Fire Station 3 (at current location)$9,700,000 3
28 Rebuild Fire Station 4 (at current location)$9,300,000 3
29 Security - Bus System $360,000 7
30 Security - Corporation Yard $385,000 3
31 Security - Council Chambers $25,000 1
32 Security - Farmers Market $1,075,000 1
33 Security - Fire Department HQ $125,000 2
34 Security - Mission Plaza $50,000 1
35 Security - Parking Front Counter $62,500 2
36 Security - Police Department HQ $50,000 1
37 Senior Center Rehabilitation & Air Conditioning $400,000 2
38 Street Light Replacements & Efficiency Upgrades $200,000 8
39 Transit to Trails Implementation $35,000 2
40 Water Bottle Filling Station Implementation $450,000 3
41 Waterway Management Plan Implementation $17,500,000 8
Enhancement of Existing Total $150,612,800 145
Maintenance of Existing
42 Breathing Apparatus Sets, Bottles, Regulators and Air Compressor $400,000 1
43 Bridge Maintenance $850,000 9
44 Bridge Replacement - Chorro Street $283,027 3
45 Bridge Replacement - Madonna Road $365,500 3
46 Cardiac (EKG) Monitors/AEDs $230,000 1
47 City Facility Parking Lot Maintenance $1,720,000 8
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48 DTC - Downtown Tree Pruning and Tree Well Replacement $1,600,000 8
49 Extrication Equipment $55,000 1
50 Fire Station 4 Emergency Backup Generator $79,500 2
51 Fleet Replacement $7,738,000 0
52 Golf Course Driving Range Nets $15,000 1
53 Golf Course Major Maintenance $80,000 1
54 Hoses, Nozzles & Equipment $95,000 1
55 IT Replacement $10,509,273 10
56 Major Facility Replacement $4,314,700 12
57 Meadow Park Building Assessment and Rehabiliation $125,000 2
58 Mission Plaza Railing Upgrade $255,000 8
59 Ongoing Open Space Maintenance $675,000 10
60 Park Major Replacement & Repairs $2,458,500 10
61 Pedestrian and Bicycle Pathway Maintenance $785,000 10
62 Plan & Policy Development $700,000 7
63 Playground Equipment Replacement $1,610,000 9
64 Sidewalk Replacement and Installation $1,525,000 10
65 Silt Removal $525,000 10
66 Storm Drain System Replacement $11,551,993 10
67 Street Reconstruction & Resurfacing $16,800,000 10
68 Swim Center Safety and Equipment Replacement $30,000 1
69 Traffic Safety Report Implementation $860,000 9
70 Traffic Signs & Striping Maintenance $575,000 9
71 Transportation Safety & Operations $325,000 10
72 Turnout Sets $140,000 1
73 Urban Forest Maintenance $2,300,000 8
74 Water Resource Recovery Facility Project $209,000 1
Maintenance of Existing Total 69,784,493$ 196
New Project
75 AB 1600 Transportation Infrastructure Expansion Non-Development Obligation $36,000,000 8
76 Active Transportation Plan $90,000 2
77 ADA Extension at Laguna Lake Trail $250,000 1
78 Add Operational Area to Fire Station 1 $2,200,000 3
79 Artifical Turf Installation at Emerson Park $1,050,000 1
80 Bishop Street Extension $10,150,000 4
81 Bob Jones Trail Prefumo Creek Connection to Oceanaire $219,000 4
82 Broad Street Bicycle Boulevard $450,000 2
83 Build Fire Station 5 (Airport Area)$8,770,000 4
84 Community Gardens $25,000 1
85 Community Services Equipment $15,000 1
86 Dog Park(s)$250,000 1
87 DTC - Downtown Lighting $500,000 5
88 DTC - Marsh/Higuera Intersection and Bike Connections $3,800,000 4
89 DTC - Multimodal Street Conversion Study (Traffic & H&H)$300,000 3
90 DTC - Multimodal Street Conversion Type A $64,350,000 6
91 DTC - Multimodal Street Conversion Type B $26,400,000 6
92 DTC - Multimodal Street Conversion Type C $9,900,000 6
93 DTC - Multimodal Street Conversion Type D $13,200,000 4
94 DTC - SLO Creekwalk Expansion Study $1,150,000 4
95 DTC - SLO Creekwalk Safety Improvements $100,000 4
96 DTC - Wayfinding Signs in Downtown $200,000 4
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97 Golf Course Maintenance Wash Station $85,000 1
98 Green Fleet Vehicle Charging Stations $350,000 7
99 Mission Plaza Concept Plan Implementation $8,800,000 4
100 New Maintenance Buildings and EOC at Fire Station 1 $7,850,000 3
101 New Park Amenities $300,000 3
102 New Restrooms at identified parks (TBD re: Master Plan)$745,000 3
103 New Street Lights $215,000 10
104 Open Space Acquisition $1,650,000 10
105 Parks & Recreation Master Plan Implementation $25,000,000 7
106 Parks and Recreation Strategic Plan Implementation $125,000 5
107 Railroad Safety Trail (RRST) - Pepper Street to the Train Station $170,000 2
108 Ranger Station/Interpretative Center $185,000 2
109 Safe Routes to School Implementation Foothill Crossing $300,000 2
110 Stormwater Resource Plan Implementation $925,000 8
New Project Total 226,069,000$ 145
Grand Total 446,466,293$ 486
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#Project Groupings 10 Year Cost Timeframe
Community Enhancement
1 ADA Extension at Laguna Lake Trail 250,000$ 1
2 ADA Transition Plan Implementation 800,000$ 8
3 Artifical Turf Installation at Emerson Park 1,050,000$ 1
4 Community Gardens 25,000$ 1
5 Community Services Equipment 15,000$ 1
6 Dog Park(s)250,000$ 1
7 Downtown Renewal 1,110,000$ 7
8 DTC - Broad Street Bridge Replacement with Creek Walk Expansion 3,500,000$ 5
9 DTC - Downtown Lighting 500,000$ 5
10 DTC - Multimodal Street Conversion Study (Traffic & H&H)300,000$ 3
11 DTC - Multimodal Street Conversion Type D 13,200,000$ 4
12 DTC - SLO Creekwalk Expansion Study 1,150,000$ 4
13 DTC - SLO Creekwalk Safety Improvements 100,000$ 4
14 DTC - Wayfinding Signs in Downtown 200,000$ 4
15 Emerson Park Rehabilitation 250,000$ 1
16 Emerson Park Restroom 350,000$ 1
17 Emerson Park Safety Enhancements (Lighting/Gates)50,000$ 1
18 Laguna Lake Dredging and Sediment Management Project Implementation 15,040,000$ 10
19 Library Community Room & Conference Room Renovation 60,000$ 1
20 Ludwick Community Center Retrofit 270,000$ 2
21 Mission Plaza Concept Plan Implementation 8,800,000$ 4
22 Mission Plaza Restroom Replacements and Enhancements 1,270,000$ 4
23 New Park Amenities 300,000$ 3
24 New Restrooms at identified parks (TBD re: Master Plan)745,000$ 3
25 New Street Lights 215,000$ 10
26 Open Space Acquisition 1,650,000$ 10
27 Park Usability Improvements 45,000$ 1
28 Parks & Recreation Master Plan Implementation 25,000,000$ 7
29 Parks and Recreation Strategic Plan Implementation 125,000$ 5
30 Ranger Station/Interpretative Center 185,000$ 2
31 Security - Farmers Market 1,075,000$ 1
32 Security - Mission Plaza 50,000$ 1
33 Senior Center Rehabilitation & Air Conditioning 400,000$ 2
34 Stormwater Resource Plan Implementation 925,000$ 8
35 Street Light Replacements & Efficiency Upgrades 200,000$ 8
36 Water Bottle Filling Station Implementation 450,000$ 3
37 Waterway Management Plan Implementation 17,500,000$ 8
Community Enhancement Total 97,405,000$ 145
Public Facility
38 919 Palm Renovations 255,000$ 2
39 Add Operational Area to Fire Station 1 2,200,000$ 3
40 Build Fire Station 5 (Airport Area)8,770,000$ 4
41 City Hall Annex Renovation 15,900,000$ 3
42 City Hall Renovation 9,550,000$ 3
43 City/County Library Major Maint. & ADA Compliance 405,300$ 1
44 Corporation Yard TI 600,000$ 2
45 Golf Course Maintenance Wash Station 85,000$ 1
46 New Maintenance Buildings and EOC at Fire Station 1 7,850,000$ 3
47 Parks and Recreation Interior Office Rehabilitation 116,000$ 2
48 Police Department Space Improvements 824,000$ 5
49 Police Station Replacement 44,765,000$ 5
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50 Rebuild Fire Station 2 (at current location)10,100,000$ 3
51 Rebuild Fire Station 3 (at current location)9,700,000$ 3
52 Rebuild Fire Station 4 (at current location)9,300,000$ 3
53 Security - Corporation Yard 385,000$ 3
54 Security - Council Chambers 25,000$ 1
55 Security - Fire Department HQ 125,000$ 2
56 Security - Parking Front Counter 62,500$ 2
57 Security - Police Department HQ 50,000$ 1
Public Facility Total 121,067,800$ 52
Transportation
58 AB 1600 Transportation Infrastructure Expansion Non-Development Obligation 36,000,000$ 8
59 Active Transportation Plan 90,000$ 2
60 Bicycle Facility Improvements 1,220,000$ 10
61 Bishop Street Extension 10,150,000$ 4
62 Bob Jones Trail Prefumo Creek Connection to Oceanaire 219,000$ 4
63 Broad Street & US 101 Ramp Closures 190,000$ 2
64 Broad Street Bicycle Boulevard 450,000$ 2
65 DTC - Marsh/Higuera Intersection and Bike Connections 3,800,000$ 4
66 DTC - Multimodal Street Conversion Type A 64,350,000$ 6
67 DTC - Multimodal Street Conversion Type B 26,400,000$ 6
68 DTC - Multimodal Street Conversion Type C 9,900,000$ 6
69 Intersection Control Upgrades 1,000,000$ 4
70 Jennifer Street Bridge: Improved access to Bill Roalman BB 150,000$ 2
71 Marsh & Higuera 2-Way Conversion 1,800,000$ 3
72 Neighborhood Traffic Improvements 1,275,000$ 10
73 Railroad Safety Trail (RRST) - Pepper Street to the Train Station 170,000$ 2
74 Safe Routes to School Implementation Foothill Crossing 300,000$ 2
75 Security - Bus System 360,000$ 7
76 Transit to Trails Implementation 35,000$ 2
Transportation Total 157,859,000$ 86
Grand Total 376,331,800$ 283
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10-Year Capital Improvement Plan (CIP) for the General Fund & Potential Funding Options101-16-2018. Item 11 - Presentation
Staff Recommendations1)Continue to adjust and refine the 10-Year CIP project list,identify priority projects and themes, and clarify level ofGeneral Fund support, based on City Council prioritiesand other factors, including the results of the CapitalFacilities Fee Program (AB 1600) project; and2)Continue to evaluate potential funding options to supportthe 10-Year CIP, including Community Facilities Districtformations, General Obligation Bonds, and additional taxmeasures such as sales tax and/or transient occupancytax (TOT); and3)Return to the City Council in April 2018 with a morerefined 10 Year project list and detailed recommendationsfor funding all or a portion of those projects.01-16-2018. Item 11 - Presentation
Prior Displays of Capital Needs1)Financial Plan included 5 Year Capital Improvement Plan (CIP)2)Long – Term CIP01-16-2018. Item 11 - Presentation
Benefits of 10 Year CIP1)One document that includes projects identified multiple plans (planning documents, area specific plans, concept plans, etc.) 2)Includes maintenance projects along with expansions or new projects as identified in long-term planning documents3)Includes projects beyond existing financial resources4)Identifies total project costs and allocates costs to funding source (i.e. grants, impact fees, general fund, etc.). This report is on the General Fund portion.01-16-2018. Item 11 - Presentation
Included in the General Fund 10-Year CIPAll projects in planning documents that have a General Fund contribution (the General Fund has the most discretion and faces the biggest financial challenge). Projects beyond the City’s existing financial capacity.Preliminary project list and project costs. Not Included in the General Fund 10-Year CIPFunding from other sources (grants, developer contributions, etc.). This is compiled but not shown in detail in this presentation.Enterprise Funds 10-Year CIP will be part of the their fund review as part of the Financial Plan.Final project list and project costs.01-16-2018. Item 11 - Presentation
Old vs. New CIP FrameworkOld CategoriesNew CategoriesAnnual Maintenance Maintenance of ExistingRehabilitation and ReplacementEnhancement of ExistingNew Projects New Projects01-16-2018. Item 11 - Presentation
New CIP FrameworkMaintenance of Existing Assets• Projects that maintain existing City infrastructure; such as street paving, storm drain replacement, play field restoration, etc.Enhancement of Existing Assets• Projects that substantially enhance existing City infrastructure, such as the Mission Plaza Restroom Renovation.New Projects• Projects that provide a new facility or asset, such as the Downtown Concept Plan: Multi-Modal ConversionGD101-16-2018. Item 11 - Presentation
Slide 7GD1 hey betz - on this slide for our beloved new project categories - love the 1st pic - those next 2 rep controversial projects - lets use other pics - thanks man this PP is great!Grigsby, Daryl, 1/16/201801-16-2018. Item 11 - Presentation
10-Year CIP01-16-2018. Item 11 - Presentation
Maintenance of Existing (General Fund) $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,0002017‐18 2018‐19 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27Maintenance of ExistingTotal Cost for 10 Years = $70 MMaintenance of Existing$6 M Avg. Forecasted01-16-2018. Item 11 - Presentation
10-Year CIP(General Fund) JD [2]1BR301-16-2018. Item 11 - Presentation
Slide 10JD [2]1 please reorder pie so that it follow the same logic, 1) maitnenace 2) enahancement and then eNew Projects. Please use same exact terms.Johnson, Derek, 1/11/2018BR3 DoneBetz, Ryan, 1/12/201801-16-2018. Item 11 - Presentation
Enhancement of Existing Assets & New Projects Community Enhancements• Projects that improve community health, safety or recreational opportunities Transportation• Transportation and Multi-Modal projects which provide new or enhanced mobility opportunitiesPublic Facilities• Projects that primarily improve or provide new City buildings including Public Safety facilities01-16-2018. Item 11 - Presentation
Enhancement of Existing & New Projects12AB 1600AB 160010 Year Total -$420 MJD [2]2BR201-16-2018. Item 11 - Presentation
Slide 12JD [2]2 Use same order again so that the framework sticks.Johnson, Derek, 1/11/2018BR2 DoneBetz, Ryan, 1/12/201801-16-2018. Item 11 - Presentation
Community Enhancement Projects: Total $97 M-Four projects make up 73% of the total cost13Parks & Recreation Master Plan Implementation Downtown Concept Plan Community EnhancementsWaterway Management Plan ImplementationLaguna Lake Dredging & Sediment Management01-16-2018. Item 11 - Presentation
14Transportation Projects: Total $158 M-Four projects make up 86% of the total costGeneral Fund Contribution towards AB 1600 ProjectsDowntown Concept Plan: Multi-Modal Conversion ADowntown Concept Plan: Multi-Modal Conversion B & CBishop Street Extension01-16-2018. Item 11 - Presentation
15Public Facilities Projects:Total $121 M-Four projects make up 86% of the total costPolice Station ReplacementFire Station # 2 RenovationsFire Station # 3 RenovationsFire Station # 4 RenovationsJD [2]3BR101-16-2018. Item 11 - Presentation
Slide 15JD [2]3 The pictures do not match. First station 2 is actually #1.Johnson, Derek, 1/11/2018BR1 I've update the photosBetz, Ryan, 1/12/201801-16-2018. Item 11 - Presentation
Funding OptionsRecommendations to be presented with Fiscal Health Response Plan Strategic Direction in April 20181601-16-2018. Item 11 - Presentation
Funding OptionsFunding options feasibility varies:Size of projectUseful life of project1701-16-2018. Item 11 - Presentation
Funding OptionsFunding OptionsPay as you go Financing1801-16-2018. Item 11 - Presentation
Funding OptionsFinancing Options –Requires new revenue source1901-16-2018. Item 11 - Presentation
Funding OptionsFinancing Mechanisms:General Obligation BondCommunity Improvement DistrictCitywide parcel or special tax bondMunicipal Credit2001-16-2018. Item 11 - Presentation
Funding OptionsNew Revenue OptionsSales TaxParcel TaxTransient Occupancy TaxUtility User’s Tax2101-16-2018. Item 11 - Presentation
Next Steps221)January – March: Refine project list and costs2)January – March: Insure consistency with Council’s direction on AB 16003)January – March: Refine funding options4)February - March: Advisory body review of project list5)March –City Council Hearing on AB 16006)April- Strategic budget direction - Council review of funding options and project lists01-16-2018. Item 11 - Presentation
Questions?2301-16-2018. Item 11 - Presentation
Staff Recommendations241)Continue to adjust and refine the 10-Year CIP project list,identify priority projects and themes, and clarify level ofGeneral Fund support, based on City Council prioritiesand other factors, including the results of the CapitalFacilities Fee Program (AB 1600) project; and2)Continue to evaluate potential funding options to supportthe 10-Year CIP, including Community Facilities Districtformations, General Obligation Bonds, and additional taxmeasures such as sales tax and/or transient occupancytax (TOT); and3)Return to the City Council in April 2018 with a morerefined 10 Year project list and detailed recommendationsfor funding all or a portion of those projects.01-16-2018. Item 11 - Presentation
End of Presentation01-16-2018. Item 11 - Presentation
Downtown Concept PlanStreet Type AStreet Type BStreet Type CStreet Type D01-16-2018. Item 11 - Presentation
Downtown Concept Plan (Street Type Location)01-16-2018. Item 11 - Presentation