HomeMy WebLinkAbout061725-08.2
ADMINISTRATIVE STAFF REPORT 8.2
TO: Mayor and Town Council June 17, 2025
SUBJECT: Resolution No. 45-2025, approving the 2025/26 through 2029/30 Capital
Improvement Program and appropriating funds for 2025/26 capital projects
SUMMARY
The Town’s Five-Year Capital Improvement Program (CIP) is a foundational component of
Danville’s long-term financial strategy. While the Operating Budget outlines the Town’s
annual service delivery plan, the CIP provides a multi-year roadmap for the design,
construction, and maintenance of public infrastructure. It identifies both current and future
capital needs and the associated funding sources necessary to meet those needs over time.
Each project in the CIP reflects the Town’s continued commitment to safety, preservation of
public assets, community enrichment, and economic vitality.
As proposed, the CIP recommends a total funding appropriation of $12,031,300 in 2025/26
for 43 projects. Unexpended appropriations of $30,727,969 remain for prior-year projects
that are in the planning, design, and construction phase. In combination with prior-year
projects that are underway, this results in a total of 77 capital projects to be undertaken in
the next five-year CIP cycle. These appropriation totals include asset-specific set-asides for
replacing major infrastructure at the end of its useful life. Funding for future years is
included for planning purposes only and is subject to annual review and appropriation.
Key considerations in developing the 2025/26 CIP:
• The proposed CIP continues to emphasize strategic financial management to preserve
Danville’s infrastructure and uphold its high quality of life.
• As previously projected, the 2026/27–2029/30 forecast years reflect mounting financial
pressures due to the aging of infrastructure built over the past three decades and flat
revenue growth, resulting in greater reliance on the General Fund.
• The recommended 2025/26 appropriation increases by $5.33 million over the prior
year, reflecting a proactive shift in capital funding strategy. General Purpose revenues
are being set aside now to prepare for future large-scale rehabilitation needs, allowing
the Town to continue investing in critical infrastructure while maintaining its long-
standing policy of debt-free capital financing.
2025/26 Capital Improvement Program 2 June 17, 2025
BACKGROUND
Since 1991, the Town has invested more than $214.6 million in capital projects - an average
of $6.31 million per year. When adjusted to today’s dollars, the net present value of this
cumulative investment is $430.7 million, or an average of $13.46 million annually. Danville’s
infrastructure - ranging from storm drains and roadways to parks and public buildings -
was largely constructed between the 1950s and the late 1990s, with many assets now
reaching 30 to upwards of 70 years old. The Town’s inventory includes:
• 16 public buildings totaling 140,000 square feet
• 16 parks and a trail network spanning 198 acres
• Street infrastructure: 158 centerline miles, 54 traffic signals, 17 bridges, 3,519 street
lights, and 60 acres of medians and roadside landscaping
• Storm drain system: 5,068 hydraulic structures, 44.7 miles of open channels, and
128.3 miles of underground pipe
The Town does not own or maintain fire protection facilities or utility infrastructure.
Project Selection Considerations
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 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.
In addition, the CIP applies a lifecycle-based approach to infrastructure management.
Projects are evaluated not only against the selection criteria outlined above, but also in terms
of the typical lifespan of infrastructure components and the anticipated cost of their future
replacement. Each project is assessed within the broader context of the Town’s
infrastructure network and its long-term fiscal impact.
2025/26 Capital Improvement Program 3 June 17, 2025
Project Categories and Types
CIP projects are organized into three functional categories: General Improvements (“A”
projects), Parks and Facilities (“B” projects), and Transportation (“C” projects).
Beginning in 2025/26, the CIP introduces a new classification system to better understand
the “maintenance load” carried by the program—that is, how much is being invested to
maintain or replace existing assets versus building new ones. Projects are now classified into
the following types:
• New/Modified Projects: Projects that add new assets to the Town’s infrastructure
inventory or significantly alter existing assets. This includes projects with scopes that
have evolved beyond their original intent.
• Rehabilitation/Replacement Projects: Projects involving substantial rehabilitation or
full replacement of existing assets such as arterial roadways, bridges, buildings, turf
fields, and playgrounds.
• Capital Maintenance Projects: Recurring annual maintenance efforts that preserve
asset functionality and extend useful life.
In 2025/26, 71% of CIP projects are maintenance or rehabilitation related efforts and
comprise 61% of the total budget.
DISCUSSION
Of the total 77 projects in the CIP, the priority focus for 2025/26 – reflecting Town Council
direction from the February 2025 Annual Planning and Goal Setting Workshop and
reaffirmed during the May 2025 Budget Study Sessions – include:
1. Townwide Storm Drain Master Plan - Phase 2 (A-330): Begin construction.
2. Fiber Optic Cable Interconnect - Sycamore Valley Road (A-620): Complete design.
3. Fiber Optic Cable Interconnect - Townwide Master Plan (A-620): Complete design.
4. Diablo Vista Park Playground Replacement (B-560): Complete construction.
5. Town Green and Arts District – Pavilion (B-628): Complete design.
6. Town Green and Arts District - Makers Space/Studio (B-629): Begin Construction.
7. Non-Functional Turf Replacement (B-643): Begin construction.
8. Diablo Road Trial (C-055): Begin construction.
9. Diablo Road Trail Crossing - HAWK signal (C-057): Complete design.
10. Iron Horse Trail Crossings - HSIP grant (C-305): Complete construction.
11. West El Pintado Road Sidewalk Improvements (C-521): Complete design.
12. La Gonda Way Bridge Improvements (C-599): Continue design.
13. Iron Horse Trail Crossings (Federal Earmark) (C-607): Complete construction.
14. 2025/26 Pavement Management Project (C-610): Begin construction.
15. Traffic Signal Modernization (C-634): Begin construction.
16. Sycamore Valley Road Improvements (C-635): Begin construction.
2025/26 Capital Improvement Program 4 June 17, 2025
Capital Funding Strategy
The CIP is funded through two primary revenue sources: General Purpose and Special
Purpose Revenues. General Purpose (i.e., General Fund revenues) can be allocated to any
type of project. In contrast, Special Purpose revenues are designated – usually a stipulation
of the funding source - for specific types of projects.
Historically, the Town successfully used General Purpose revenues as “local match” funding
to secure competitive grants, allowing Danville to deliver capital projects without relying on
special taxes, assessments, or debt. This approach was particularly effective for major
infrastructure projects that lacked dedicated funding streams.
However, in recent years, access to external funding - especially for large roadway
rehabilitation projects - has declined. Grant criteria have shifted to favor projects serving
designated “communities of concern” and those focused on non-motorized transportation.
As a result, the Town must now rely more heavily on General Purpose dollars to directly
fund capital maintenance and rehabilitation efforts.
With reduced access to special revenues and growing infrastructure demands, General
Purpose revenues have become the primary funding source for capital maintenance. This
reality has shaped the structure of the 2025/26 CIP, where the majority of projects focus on
preserving and rehabilitating existing assets.
Emphasis on Capital Maintenance
Over the next decade, maintaining the Town’s aging infrastructure at current service levels
will require an increasing share of the capital budget to be dedicated to maintenance - from
routine repairs to major rehabilitation and asset replacement. As the infrastructure portfolio
expands, so does the need to invest in preserving and extending the life of existing assets. A
high-level assessment of major infrastructure categories estimates that approximately $6.01
million per year will be needed to support ongoing capital maintenance and replacement,
as summarized below.
Project Type # of Assets Life Cycle Estimated Cost
Roadway: Arterials 18.04 centerline miles
(3,700,363 SF)
20 years $3.3 million per
centerline mile1
Roadway: Collectors 20.42 centerline miles
(3,514,730 SF)
20 years $440,000 per
centerline mile2
Roadway: Local Residential 119.92 centerline miles
(19,959,575 SF)
20 years $440,000 per
centerline mile2
Roadway: Pedestrian Safety
Enhancements (RRFBs, etc.)
16 sets 10 years $30,000 per set
Roadway: Bicycle Safety 45,000 SF 15 years $640,000 per
2025/26 Capital Improvement Program 5 June 17, 2025
(detection, green paint, etc.) centerline mile3
Park Feature: Playgrounds 7 playgrounds 15 years $1.5 million each
Park Feature: Turf Fields 3 fields 9 years $1 million per field
Park Feature: Sports Field Lighting 2 parks 20 years $1 million per set
Estimated Annual Commitment: $6.01 million
Note 1: Estimate based on San Ramon Valley Blvd Improvements project. Varies depending on pavement condition.
Note 2: Estimate based on 2022/2023 Pavement Management Report budget funding scenario.
Note 3: Estimate based on Diablo Road bicycle safety enhancement project (between I-680 and Green Valley Road).
Reflecting this growing need, capital maintenance, rehabilitation, and replacement projects
now comprise 71% of all CIP projects and 61% of the total CIP budget. Because nearly all of
these efforts rely on General Purpose revenues, the 2025/26 CIP appropriates asset-specific
reserves for replacing major infrastructure at the end of its useful life.
Pavement Management Program
The Town’s roadway network is one of its largest capital assets. It includes 158 centerline
miles - or approximately 27.17 million square feet - of paved roadway. The Town’s goal is to
maintain an average Pavement Condition Index (PCI) of 70 or higher across the network over
the next five-year CIP cycle.
The PCI is a standardized scale from 0 to 100 that measures pavement quality: a score of 100
reflects brand-new pavement, while a score below 10 indicates failed pavement at the end of
its life. Asphalt deteriorates due to both aging and fatigue, with maintenance needs and costs
increasing over time. Effective pavement management requires the application of the right
treatment, at the right time, with the right materials - extending pavement life and minimizing
long-term costs. This approach helps roadways reach their intended design life.
For 2025/26, a $3 million appropriation is recommended for the Pavement Management
Program. Completion of this work is expected to raise the Town’s average PCI from 79 to 81.
Additionally, because pavement rehabilitation is costly, the Town now sets aside asset-
specific reserves each year to fund the eventual replacement of all major arterial roadways as
they approach the end of their 20-year lifecycle.
Storm Drain Infrastructure
Danville’s storm drain system - constructed primarily between the 1960s and 1990s -
includes 5,068 hydraulic structures such as inlets, outlets, catch basins, manholes, and trash
racks. It also comprises 44.7 miles of open channels and 128.3 miles of piping, with some
segments maintained by the County and Caltrans.
The first phase of the Town’s Drainage Master Plan (DMP) was completed in late 2022.
Following the severe winter storms of early 2023, the next phase will involve a more
2025/26 Capital Improvement Program 6 June 17, 2025
detailed, Town-wide assessment of the drainage system. Several neighborhood-level storm
drain improvement projects are also planned for 2025/26.
Similar to roadways, storm drain replacement is both costly and complex. To prepare, the
Town is proactively setting aside asset-specific reserves annually to fund future upgrades
as system segments reach the end of their useful life.
Lighting and Landscape Assessment District (LLAD)
Since Danville’s incorporation in 1982, property owners have paid annual LLAD
assessments dedicated to maintaining public parks, landscaping, street lighting, and
community facilities. Until recently, the last voter-approved LLAD rate increase occurred in
2003 and did not include a cost-of-living escalator. As a result, while Bay Area consumer
prices (CPI) rose by approximately 78% over the past two decades, LLAD revenues
increased by just 3%. During the same period, operating costs - particularly for utilities and
contracted maintenance - grew by 84%, creating a significant funding gap.
In May 2025, property owners approved a new Town-wide LLAD (2025-1), the first rate
adjustment in over 20 years. While this approval provides meaningful budgetary relief, it
does not completely bridge the funding gap. Also, LLAD revenues are applied toward
operating expenses and do not currently fund capital improvements. As a result, capital
maintenance for these assets continues to rely on General Fund support.
Even with the new LLAD rates in place, ongoing General Fund contributions will still be
required to maintain service levels and fund capital rehabilitation of the Town’s parks,
landscaping, lighting, and community facilities. While the General Fund is no longer under
critical strain, pressure remains elevated due to its growing role in covering both capital
maintenance and other unfunded infrastructure needs.
SUMMARY
The 2025/26 – 2029/30 Capital Improvement Program recommends appropriation of
$12,031,300 in FY 2025/26. Together with prior-year unexpended appropriations, the CIP
represents the best use of available resources to address community needs and advance
Town Council priorities.
The CIP reflects a fiscally responsible, forward-looking plan for investing in Danville’s
infrastructure, consistent with the Town’s long-standing commitment to financial
stewardship, debt avoidance, and reserving funds in advance of major capital needs.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public. Notice of the public
hearing was published in a newspaper of general circulation. A draft of the Budget and CIP
2025/26 Capital Improvement Program 7 June 17, 2025
was posted on the Town’s website for public review on May 13, 2025.
FISCAL IMPACT
Sufficient revenues are available to fund all 2025/26 recommended capital expenditures
while maintaining adequate operating and capital reserves.
RECOMMENDATION Adopt Resolution No. 45-2025, approving the 2025/26 through 2029/30 Capital
Improvement Program and appropriating funds for 2025/26 capital projects.
Prepared by:
Tai J. Williams
Assistant Town Manager
Diane Friedmann
Development Services Director
Steven Jones
City Engineer
Attachment: Resolution No. 45-2025
The CIP is available on the Town website or from the City Clerk upon request.
RESOLUTION NO. 45-2025
APPROVING THE 2025/26 THROUGH 2029/30 CAPITAL IMPROVEMENT
PROGRAM AND APPROPRIATING FUNDS FOR 2025/26 CAPITAL PROJECTS
WHEREAS, Government Code Section 65401 requires the Town of Danville to make a
determination that the 2025/26 through 2029/30 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 2025/26 through 2029/30
Capital Improvement Program; and
WHEREAS, the Danville Planning Commission will review the 2025/26 through 2029/30
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 2025/26 through 2029/30 Capital
Improvement Program; now, therefore, be it
RESOLVED, that the Danville Town Council hereby:
1. Adopts the 2025/26 through 2029/30 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. Appropriates $12,031,300 for 2025/26 capital improvement projects as shown on
Table C in the 2025/26 Capital Improvement Program;
Docusign Envelope ID: A038CD87-4BD9-4404-98DC-50156D625E95
PAGE 2 OF RESOLUTION NO. 45-2025
3. Directs the Town staff to publish the 2025/26 through 2029/30 Capital
Improvement Program; and
4. Directs the Town Manager to implement the 2025/26 through 2029/30 Capital
Improvement Program.
APPROVED by the Danville Town Council at a regular meeting on June 17, 2025 by the
following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_____________________________
MAYOR
APPROVED AS TO FORM: ATTEST:
________________________________ ______________________________
CITY ATTORNEY CITY CLERK
Docusign Envelope ID: A038CD87-4BD9-4404-98DC-50156D625E95