HomeMy WebLinkAboutStaff Report 167-05/
City of Palo Alto
City Manager's Report
TO:
ATTN:
FROM:
DATE:
HONORABLE CITY COUNCIL
POLICY AND SERVICES
FINANCE
CITY MANAGER
MARCH 15, 2005
DEPARTMENTS: PUBLIC WORKS
UTILITIES
CMR:167:05
SUBJECT: APPROVAL OF CRITERIA THAT WOULD IDENTIFY WHICH
CAPITAL IMPROVEMENT PROJECTS REQUIRE POLICY
DIRECTION FROM THE CITY COUNCIL BEFORE THEY ARE
INCLUDED IN THE ADOPTED CAPITAL IMPROVEMENT BUDGET
RECOMMENDATION
Staff recommends that the City Council approve project screening criteria to be used to identify
proposed Capital Improvement Projects that require Council policy direction before they are .
included in the Capital Improvement Budget each fiscal year.
BACKGROUND
On November 15, 2004 the City Council reviewed a colleagues memo authored by Council
Members Freeman and Ojakian recommending that staff develop criteria that would identify
which Capital Improvement Program (CIP) Project have or have not received policy approval or
direction from the City Council and which are "place holders". Once applied, these criteria
would help distinguish between CIP projects (both General Fund and Enterprise Fund) that
already have Council policy direction or approval (e.g. annual street program, new park
improvements) and those that have "place holder" funding in the five-year Capital Improvement
Budget but do not have general policy direction or approval by the Council (e.g., new power
plant). At its November 15 meeting'the Council unanimously approved the colleagues memo
recommendation.
DISCUSSION
Each year the Council Finance Committee reviews the proposed Capital Improvement Program
for adoption by the City Council in June. Most CIP projects (both General Fund and Enterprise
Fund) have been identified previously in prior year budgets or in the ten-year Infrastructure
Management Plan (IMP). The IMP Committee consisting of staff from all City departments
reviews all proposed IMP projects and recommends projects to the City Manager for inclusion in
the City Manager's proposed CIP budget. The IMP Committee also reviews proposed Utility
Department CIPs to coordinate planned work; and ensures that all CIP projects are in compliance
with applicable City requirements including the Comprehensive Plan and any Council adopted
master plans. The IMP Committee would screen the list of proposed projects (both General
Fund and Enterprise Fund) using the Council-approved criteria and bring forward those projects
CMR.:165:05 Page 1 00
needing policy direction (if any) as the CIP budget is reviewed by the Finance Committee each
year.
Following are the recommended criteria to be used to determine when a CIP project needs to be
brought forward for policy direction:
• Project would require an amendment to the Comprehensive Plan or other master plans.
• Project would require a change in land use.
• Project involves a significant change in service levels requiring additional staffing or
other resources.
• Project is not in planned General Fund IMP and/or does not have an identified funding
source.
• Project requires acquisition or disposition of property.
• Project will probably require an Environmental Impact Review.
• Project requires the diversion of staffing andlor City funds due to outside funding
opportunity (e.g., grants).
• Project may require voter andlor property owner approval (e.g., libraries and storm
drains).
Using the above criteria, staff will be able to readily identify projects needing City Council
policy direction with Finance Committee and Council approval during the budget process, staff
would then agendize such projects during the upcoming fiscal year prior to expending any
resources on them.
RESOURCE IMPACT
The approval of the recommended project screerung criteria reqUIres no additional City
expenditures.
POLICY IMPLICATIONS
The recommended project screening criteria, if approved, will result in City Council policy
direction for projects meeting any of the criteria prior to their inclusion in the Adopted CIP
Budget.
ENVIRONMENTAL REVIEW
Council approval of proj ect screening criteria does not constitute a proj ect as defined by the
California Environmental Quality Act (CEQA).
CMR:165:05 Page 2 of3
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PREPARED BY:
DEP ARTlvIENT HEAD:
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CMR:165:05
JOHN ULRICH
Director 0 Utilities
E
Assistant City Manager
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