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HomeMy WebLinkAbout060424-08.2 ADMINISTRATIVE STAFF REPORT 8.2 TO: Mayor and Town Council June 4, 2024 SUBJECT: Resolution No. 33-2024: approving the 2024/25 through 2028/29 Capital Improvement Program and appropriating funds for 2024/25 capital projects. SUMMARY The Town’s Five-Year Capital Improvement Program (CIP) identifies current and future capital needs and sources of funding to be appropriated in order to meet those needs. Review and approval of the CIP includes appropriating funding for all 2024/25 projects. Future years 2025/26 through 2028/29 are included for planning purposes. Each project in the CIP supports the Town’s commitment to safety, maintenance of public facilities, community enrichment, and economic vitality. A total of 38 projects are recommended for 2024/25, with total appropriations of $6,697,319. Unexpended appropriations of $20,443,795 remain for prior-year projects that are in the planning, design, or construction phase. Current plus prior year appropriations total $27,141,114 for projects that are funded and awaiting completion. BACKGROUND The Town has invested over $180.7 million in capital projects - averaging $7.8 million annually - since 2000. Danville’s infrastructure, from storm drains to roadways and parks, was built primarily between the 1950s and late 1990s. The Town’s vast network of public infrastructure is now 30 to 60+ years old and includes 16 buildings (140,000 square feet), 16 parks and trail network (198 acres), street infrastructure (158 center lane miles, 54 traffic signals, 17 bridges, 3,519 street lights, and 60 acres of median and roadside landscaping), as well as storm drain infrastructure (5,068 hydraulic structures, 44.7 miles of open channel, and 128.3 miles of pipe). The Town does not own fire protection facilities or utilities. Capital Project Selection The recommended CIP is comprised of projects that best balance numerous objectives and maximize community benefits and value. The primary considerations for funding recommendations include whether the project is (a) mandatory to comply with legal requirements or address imminent health and safety issues, or (b) discretionary, those 2024/25 CIP Budget II June 4, 2024 that bring value to the community but are not required. Additional considerations in the selection process include: • Alignment with Vision and Mission: Ensuring projects are consistent with Danville’s vision, as outlined in the Town’s General Plan and other relevant plans. • Broad Public Benefit: Projects should offer widespread benefits to the community without adversely impacting the Town's operational budget. • Preventative Maintenance: Prioritizing projects that extend the useful life and functionality of assets, thereby minimizing long-term costs. • Leverage Outside Funding: Selecting projects that utilize external grants, which might otherwise be forfeited if not executed within a specific timeframe. • Staffing Resources: Adequate staffing is available to oversee the project’s design, construction, and inspection phases effectively. DISCUSSION The current year's list of 38 recommended projects in combination with prior-year projects that are underway result in a total of 75 capital projects to be undertaken in the next five- year CIP cycle. Summary of FY 2024/25 Revenues For FY 2024/25, General Purpose (unrestricted) and Special Purpose (restricted) revenues represent 41% and 59% of the total CIP funding appropriations, respectively. Revenue Types (FY 2024/25) Amount % General Purpose (Unrestricted) Revenues $2,731,004 41% Special Purpose (Restricted) Revenues $3,966,315 59% Total: $6,697,319 100% General Purpose revenues can be used to complete any project. In contrast, Special Purpose revenues are restricted to specific project types. Historically, General Purpose revenues are leveraged as the “local match” in competing for outside grant funding. Grant funding is a Special Purpose revenue source that is expected to diminish in future years. This is due to the depletion of American Rescue Plan Act (ARPA) grant funds and evolving criteria used by regional and state agencies to award transportation grants, which increasingly favor projects in more disadvantaged communities. As a result, future CIP budgeting strategies will reflect a reduced level of support from grant sources. In turn, CIP projects would rely more heavily on the General Fund. 2024/25 CIP Budget III June 4, 2024 Summary of FY 2024/25 Expenditures Consistent with Town Council direction from the Annual Planning and Goal Setting Workshop in February 2024, the following are the priority efforts for FY 2024/25. 1. Downtown Master Plan Catalyst Project (A-362): Complete construction. 2. San Ramon Valley Blvd Improvements (C-600): Complete construction. 3. Camino Tassajara Soundwall (A-513): Complete design, begin construction. 4. 2024 Pavement Overlay (C-610): Complete design, begin construction. 5. Diablo Vista Park Playground and Multi-Use Skate Park (B-616): Complete design, begin construction. 6. Diablo Road Trail (C-055): Complete re-design, secure regulatory permits. 7. Town Green and Arts District (B-628): Complete design, begin construction. 8. Traffic Signal Modernization (C-634): Complete design, begin construction. In addition, the Town Council places a high priority on the ongoing capital maintenance and rehabilitation efforts to extend the life of major infrastructure assets. These include: A. Pavement Management Program Danville maintains 158 center lane miles or 27.17 million square feet of pavement with a current Pavement Condition Index (PCI) rating of 78. The PCI is a scale from 0 to 100 that measures the quality of pavement. A PCI of 100 indicates pristine (new) pavement while scores below 10 indicate pavement that has failed or reached the end of its service life. The recommended appropriation of $3 million in FY 2024/25 for the Pavement Management Program would achieve the Town’s goal of maintaining a minimum average PCI of 70 Town- wide for the next 5-year CIP cycle. B. Storm Drain Infrastructure Danville's storm drain system, constructed primarily from the 1960s to the 1990s, encompasses 5,068 hydraulic structures, including inlets, outlets, catch basins, manholes, and trash racks. The system also includes 44.7 miles of open channels and 128.3 miles of piping, with certain segments under County and Caltrans ownership. The first phase of a Drainage Master Plan (DMP) was completed in late 2022. In the wake of severe winter storms in early 2023, a second phase of the DMP will be undertaken in FY 2024/25 to identify future priority projects. Continuous capital maintenance of our storm drain infrastructure will be an ongoing part of future CIP strategies. RESOLUTION NO. 33-2024 APPROVING THE 2024/25 THROUGH 2028/29 CAPITAL IMPROVEMENT PROGRAM AND APPROPRIATING FUNDS FOR 2024/25 CAPITAL PROJECTS WHEREAS, Government Code Section 65401 requires the Town of Danville to make a determination that the 2024/25 through 2028/29 Capital Improvement Program is in conformance with the Town of Danville General Plan; and WHEREAS, Government Code Sections 65302 et seq. require that the Town of Danville must take into consideration future capital facilities when planning for the development of the community; and WHEREAS, the Contra Costa Transportation Authority Growth Management Program requires that the Town develop a five-year capital improvement program; and WHEREAS, the Town of Danville staff has prepared the 2024/25 through 2028/29 Capital Improvement Program; and WHEREAS, the Danville Planning Commission will review the 2024/25 through 2028/29 Capital Improvement Program after adoption, as needed, and consider findings in conformance with the Town of Danville General Plan; and WHEREAS, the public notice of this action was given in all respects as required by law; and WHEREAS, the Town Council did hear and consider all reports, recommendations, and testimony submitted and presented at the hearing; and WHEREAS, the Town Council has determined that the additional funding requested is available from funding sources as shown within the 2024/25 through 2028/29 Capital Improvement Program; now, therefore, be it RESOLVED, that the Danville Town Council hereby: 1. Adopts the 2024/25 through 2028/29 Capital Improvement Program as recommended, including new projects, subject to the findings of conformance to the General Plan as determined by the Danville Planning Commission; 2.Transfers $240,943 from CIP Project No. B-597 – Village Theatre Parking Lot Improvements to CIP Project No. B-639 – Town Office Parking Lot Expansion and Solar Relocation and appropriates those funds for that project; DocuSign Envelope ID: 561EED06-1001-4B51-A2A7-40213FDC1751 ATTACHMENT A PAGE 2 OF RESOLUTION NO. 33-2024 3. Appropriates $6,697,319 for 2024/25 capital improvement projects as shown on Table A in the 2024/25 Capital Improvement Program; 4.Directs the Town staff to publish the 2024/25 through 2028/29 Capital Improvement Program; and 5.Directs the Town Manager to implement the 2024/25 through 2028/29 Capital Improvement Program. APPROVED by the Danville Town Council at a regular meeting on June 4, 2024 by the following vote: AYES: NOES: ABSTAINED: ABSENT: _____________________________ MAYOR APPROVED AS TO FORM: ATTEST: ________________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 561EED06-1001-4B51-A2A7-40213FDC1751