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CC - Item 1A - 5-year Capital Improvement Program WorkshopROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER '�* DATE: APRIL 14, 2015 SUBJECT: 5 -YEAR CAPITAL IMPROVEMENT PROGRAM WORKSHOP SUMMARY The City has been working to develop a 5 -Year Capital Improvement Program (CIP) to help identify the future funding needs of the City for infrastructure and facility improvements. Attached to the report is the draft 5 -Year CIP that has been developed by using resources such as the draft Parks and Facilities Master Plan, the Pavement Management Study, and a current needs assessment by staff. The draft 5 -Year CIP is sorted into three categories: Engineering (street and right -of -way projects), Buildings, and Parks. The intention of the workshop is to provide input on the projects outlined and to discuss the various funding shortfalls and needs. DISCUSSION Engineering Twenty -five projects have been identified on the 5 -Year CIP related to Engineering. While several of the projects are routine in nature and should take place annually, such as residential resurfacing, other projects are much larger in scope and have been listed as individual projects, such as Walnut Grove Resurfacing. Historically the City has relied on Community Development Block Grant, Redevelopment, Gas Tax, Prop. C, Measure R and grants to fund the cost of Engineering related projects. Since 2010, Community Development Block Grant and Redevelopment funding have been eliminated and are no longer a viable funding option. Additionally, Gas Tax funds have been reduced by approximately $300,000. In total, the City has lost more than $1 million in annual funding for Engineering projects over the past five years. For the 2015- 16 Fiscal Year, staff has estimated a total of $1.725 million in available funding; however, only $1.2 million of that is available on an ongoing basis. Based on these projections, the City has an annual funding deficit in excess of $725,000. This also does not take into account the $5.05 million in project needs in which a fiscal year has not been identified. ITEM NUMBER: I IN City Council Meeting April 14, 2015 Page 2 of 3 Buildings The Buildings category includes remodel and renovation projects of existing City -owned buildings. Many of these projects are routine in nature, but will require an outlay significant enough to consider them a capital improvement project rather than a maintenance project. Projects related to the Buildings category generally need to come from the General Fund as grant funds for these projects are rare and Development Impact Fees, if approved in the future, cannot be used for repair type projects. Staff has identified approximately $1.44 million in building related projects that should ideally be completed as soon as possible. Parks Similar to the Buildings category, many of the Parks projects are routine in nature but have a funding need in excess of a regular maintenance project. Additionally, many of these projects would normally need to be funded through the General Fund as grant funding is not available for routine maintenance type projects. Funding Based upon current revenue trends and future forecasts, the following ongoing revenue sources have been identified for Capital Improvement Projects: Gas Tax: $380,000 Prop C: $475,000 Measure R: $377,000 In addition to these ongoing funding sources, the City will continue to pursue grants whenever possible, especially for road and infrastructure improvements. Grant applications generally require matching funds from the City with more ranking points being awarded for increased match amounts. Therefore, the City will need to balance the grant application needs with the available funding. The City currently has an application submitted as part of the Metro Call for Projects program for the improvements on Garvey Avenue listed on the draft plan as items 19 -20. Additionally, the City has unsuccessfully applied for grants related to projects 22 and 23, but is continuing to look at new possibilities to make these projects more attractive to granting agencies. An additional funding option for General Fund related projects, especially the projects under the Buildings and Parks categories would be to issue private placement debt with a bank or capital financing corporation. Through the issuance of private debt, the City would generate the needed capital immediately and then pay it off over a 10 -20 year period. Currently, private placement debt is being offered in the 2 -4% rate for cities. For example, if the City were to issue $3 million in debt, the annual debt service payment would be approximately $351,000 on a 10 -year loan or $217,000 on a 20 -year loan. While the City has previously not issued debt to fund projects, it may be a viable source in lieu of taking from reserves or for future repayment with Development Impact Fees. City Council Meeting April 14, 2015 Page 3 of 3 PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted By: Matt* E. Ha ivkesworth Assistant City Manager /Acting Director of Public Works PU9Uf WGFN50EpgR1MEM /FNGINEFRINGOIVISION .VVAARY19, au .. CITY OF ROSEMEAD CAPITAL IMPROVEMENT PROGRAM FIVE YEAR PROGRAM 1: Funding per Fiscal Year - Item ': Project Title Protect Location i Funding ' 2015 -2016 2016-2017 2017-2018 j 2018-2019 Sourced) 2019-2020 Tentative -. .... .... En9meenn@ ._._ ---- _ --------- t._ -------------- 1 --- _ i _ ------------- I .__._. t.______ ---------- -.. 1 Annual Residential Resurfacng Protect Various IGas Tax $ 675000 $ 675000 $ 675000 $ 700000 �$ 700000 ........ . ............. Sidewalk Curb &Gutter 2 ....., Various ,... . , ..... ............. ........ .........._ $ 200000 $ 2000001 $ 200000. $ t .. ............. ......... ._.. 200000, $ 200,0001 Replacement Protect „ ... Gas Tax ........ 3 .City Signage Replacement” ....... Various .. .............. ........... _ $ 150000 { Project. ., Gas Tax ....... t ............... ................ ........... ....... .......... .... 4 : Walnut Grove Resurfacing :From Hellman Avenue to IGas Tax 1 �$ 875000 Project Garvey Avenue 1C,R 5 Walnut Grove Resurfacing From Valley Blvd to IGas Tax $ 6250001 r .., _ . -. -. ...... Project . ......... .......... Mission Drive iC,R .: ... ......... Walnut Grove Resurfacing 6 From Mission Drive to IGas Tax 1C,R ............................ ' 1 1 $ . 525 ,Protect ,North Qty Limit y... ........ .................. _ ....... jWalnut Grove Resurfacing 7 From Marshall Avenue ,Gas Tax ....... .. $ 350000: Project.... �VaIIeY Boulevard 1C.R : .. . ... . .. t 8 Traffic Si@nal Upgretle ,Various ..,. Lightng ........ .. ... ......... ... .... , $ 50,000 j $ 50000 $ ...... ._......... ...._. ............ 50000 , $ 50 000 • -G rant...... ....... ....... ...... .. ............ ................ 9 Valley Boulevard ;From City Limit to City IGas Tax, (Enhancement Project :Limit C, R, 1 $ 2,500,000 iLi9h .... ...... ......... i ............... , ....... ................. 10 !Bridge Maintenance Program ' Various i........ 1$ 75 1 ' .......... ......... 11 Traffic Signing and Striping Improvements ............ Various IGas Tax ..... ...... .......... ................ ,$ 50 1 $ 50,000 $ 50,000:$ ....... ...... ................... ................. 50000;$ 50 12 .Ramona South Storm Drain From Muscatel Avenue to $ 250 Installation Protect the Wash . In ....r 13 Wal Gove Undergro untl From Marshall Avenue to ..... .... ..... ......... ..... Project Valley Boulevard �.. N/A 14 ;Annual Slurry Seal Project (Various .. ,SCE CaRTax ,.,,. $ 300,000 $ 300 $ ..,,.,. ,_.,,.,, ,.,,,., 300,000 $ 300 i ........... ........ 'Temple City Boulevartl Be ...., From San ernardino t ............. ................ 1 $ ....... f. ...... .......... .... 15 !Resurfacing Project Freeway to North City IGas Tax 850 1 ` ...... ............ Limit ............. C, R _.... ; ......... ............. ., ......... ............ ........... .. 16 .San Gabriel Boulevard From Walnut Grove i Gas Tax $ 425,000 Resurtaang Protect ............... ............... Avenue to South City Limit�C, ......._ ...... R ........................ i ....... .... 17 San Gabriel Boulevard From Walnut Grove Gas Tax 500000: Resurfacing Protect .Avenue to West City Limit CR .$ .. ....... 18 San Gabriel Avenue Street ........... From Valley B lvd to South ..... -Gas Tax ............ ....... ..... $ Resurfzcin@ Protect .. .. ... Cdy, Limit C, R ... ............. 850 000 . ,Garvey Avenue Street From Walnut Grove CaRTax ....... ......... ...... ' 19 (Resurfacing Project to East City Limit :$ 800000; ; Avenue !Grant Garvey Avenue Street 20 From Walnut Grove Avenue San 'Gas Tax jC, R ........... .Resurfacing Project to Gabriel $ 550,000 ....... ..... i Blvd ...... Grant .. ..... ... ...... { .... ...... t ., ........ ....... 21 Catch Basin Upgrade Various i $ 200,000 i ....... .. .... .............. 'Temple City Boulevard & 22 Walley Boulevard Intersection- Intersection oNalley Blvd ;Gas Tax Improvement Protect and Temple Qty Blvd C, R -Grant .................. a .......... .......... ....... ........... ........ 000,000 Valley Boulevard & Rio of Valley BIVd 'IGas Tax 23 ; Hondo Intersection Im rovemenl Pro act i lntersection antl Rio Hondo Avenue C, R P . A 1 ............ _iGrenl j ....... ................ ............ .. ............. ............. ,$......... 24 Monument Installation .... ................. City Entrance ............ .t..... .... ' 200000 n 251 Sidewalk Replacement hA.Ils SL, Delta Avenue &y ................. ............. ........... ... ....... ................. Protec( Earle Avenue, I$ 350000 .._ I i t..... 2,4500001$2,175,000 $ 2,400,000 $ '2,625000 _ ..... $ 1 3 1$: X5050,000 26 iDII Hall Exterior Renovation qty Hall $ 210000 ....... ......... 27 Qty Hall Basement .... .j.._... , ...... Renovation Qty Hall $ 180,000 28 Qly Yard Building Interior .. Qty Yard I $ 500000 ........ .... ........ ........ , ..... 29 WOetl Floor and Carpet Garvey Center ... $ 50,000 ...... ..... ..... .... Recreation Building , ........ ..... 30 Refurbishment jGarvey Park , $ 50,000 ; Preschool Building Restroom ...... .... ..... ..... ...... ...... 31,Renovaticn .................. Rosemead Park ,$ 100,000 ... .. Snack Bar and Restroom ' ... 32 Renovation Project .. Rosemead Park .... - .. $ 200 000 .... .. .. .. .... 33 Restroom Renovations Garvey Park $ 150,000 ... t .. ... j. ... j ..., p .. ... ... $ 910,000 $ 530,000 $ $ $ $ ., `Parks I t. :.: ` ::. :: 34 Picnic Shelter Rehabilitation .. Rosemead Park _... .:..: .. ,$ 65,00000 ... , ... ..: _ . ...... ...... ... ........ 35 Picnic Shelter Rehabilitation Garvey Park $ 65,00000, j 36 Stage Trailer ._ $125,00000 ' 37 Skala Park ..... , ...... .... 450000 .. . ........... ,Resurfacing and Lighting :South Parking Lol , „ .........$_ �� 38 ;Project jRosemead Park :Lighting I $150.000.00 -- ---------- esurfacing and Lighting _ 39 'Project ;Tennis Court Garvey Park 1Lighting $15QOOD.00 I -4 $255,000.00 `$ 300,000.00 1 $ i $ $ $ '- 450,000.00 age