Report to Mayor and City Council
Tuesday, June 21, 2016
Discussion
SUBJECT:
Title
CONSIDER ADOPTION OF THE FISCAL YEAR 2016-17 CAPITAL IMPROVEMENT PROGRAM (CITY COUNCIL)
Body
I. SUMMARY
The purpose of the Capital Improvement Program (CIP) is to provide for the orderly and systematic financing and implementation of public improvements within the City of Carson. For FY2016-17, a total of $47,320,405 in funding is needed in order to address several projects that are in varying stages of implementation. Of the total funding need, 84% (or $39,568,206) has been secured with no impact to the General Fund. Alternative funding sources, including grants, will be sought to address the remaining need of 16% (or $7,752,199).
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. ADOPT the FY2016-17 Capital Improvement Program
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III. ALTERNATIVES
TAKE one or more of the following actions:
1. DO NOT ADOPT the FY2016-17 Capital Improvement Program.
2. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The Capital Improvement Program (CIP) provides a framework for the orderly execution of individual projects. The importance of a CIP lies in its ability to clearly identify, fund and pace major projects. CIP projects require substantial lead-time for activities that precede actual construction including assessments, community input, securing funding, planning and design.
The Capital Improvement Program should not be considered as a final and fixed plan. It is formulated in 5 year spans, in this case FY2016-17 through FY2020-21, and projects are prioritized by a number of criteria. On an annual basis, an additional year is added to the CIP in order to maintain the full five-year period of the program. Those projects that are deemed highest in priority are scheduled for the first year of the CIP, and a recommendation is made for these projects to be adopted as the Capital Improvement Program for the coming year, in this case FY 2016-17. Throughout the fiscal year, the adopted CIP and the associated budget is routinely reviewed and revised.
To develop the CIP, a significant amount of input from internal and external constituents was collected, current and shelved projects were assessed, cost estimates were generated, potential funding sources were evaluated, and the initial prioritization was determined.
On June 6, 2016, staff reviewed the draft 5-year CIP, that included FY2016-17 through FY2020-21, with both the Budget and CIP Subcommittee and the Public Works Commission. The Budget and CIP Subcommittee requested that a few projects be reprioritized and that rehabbing the restrooms at the Parks be one of the top considerations. These changes are reflected in the attached exhibit.
V. FISCAL IMPACT
The entire Capital Improvement Program need for FY2016-17 totals $47,320,405. Of this amount, funding has already been secured for $39,568,206 with no impact to the General Fund. With respect to the remaining $7,752,199, staff will continue to pursue grants and other funding sources exclusive of the General Fund, and if necessary, projects will be reprioritized.
The proposed FY16-17 budget includes $17,084,333 of the proposed CIP. In September, Staff expects to propose adjustments to the FY16-17 budget to include project carryovers from FY15-16, as well as additional identified revenue.
VI. EXHIBITS
1. FY 2016-17 Capital Improvement Program Projects and Budget (pgs 3-4)
2. Funding included in proposed FY16-17 budget (page 5)
Prepared by: Maria Slaughter, Director of Public Works