HomeMy WebLinkAbout0489.093G) • 0 .., .,,' 't, ",'
September 16, 1993
HONORABLE CITY COUNCIL
City of Palo Alto
Attention: Finance committee
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euXTNo IMPROVENII!T PROGJIAK (CIP) II!7R.ASTRUCTURE BODG21 P1l0l( 19B..1.=.
82 THROOGI 1"3-"
Hembe~s of the Council:
This is an informational report and no Council action is necessary~
I.port: in Briaf
In an etfort to address questions about the City's long-term
commitment to its capital infrastructure, staff has analyzed the
past thirteen years of capital budgets~ Budgeted capital ~xpendi
tures have been categorized to provide insight into the levels and
trends for infrastructure and non-infrastructure spending.
Comparisons of real dollar capital budgets over the past decade
reveal that public infrastructure projects as a whole have. kept
pace with inflation~ This is chiefly a result of the dedication of
utility users tax monies for streets and sideWalks and shifting
~tOrD drain proJects to enterprise funding~ Othar infrastructu~e
categories, such as public buildings and parks facilities improve
aents, that are dependent upon the Ceneral FUnd, have. either not
kept pace with inflation or experienced inconsistent levels of
funding over the years~
Background:
During recent budget hearings, as well as in reviewing the Economic
Future study, council has expressed concern about long-term funding
for the. City's infrastructure. ·One of the principal questions
frequently asked is whether the City, over time, has devoted fewer
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Capital Improvement Program (CIP) dollars in this area~ This
quest.ion leads to .~ more. compleX' one. Staff interprets Council ts
concern as not simply being over the absolute level of the capltal
infrastructur:!: budget, but whether there is a backlog of infra
structure improvements and whether that backlog is increasing or
decreasing over time: in ~ther words~ what is the condition ot our
buildings, roads, sidewalks and parks? Is the City's basic
infrastructure deterioratinq, improving or being maintained, and at
what level?
categories of capital Expenditures
As a first st~p in addressing Council's questions on the heal~~ of
the City's infrastructure, statr exa.mi11ed budgeted capital expendi
tures over the last 13 years. Projects were divided into three
cateqories:
PulI.lic lntr.st.~ctur.; The term .. infrastructurer. has several
definitions. A prej9:ct is defined as infrastructure in this
analysis if it is capital intensive (high cost), has a long public
facility (qenerally 10 years or longer), and generates a public
service. This definition has been refined further to include the
acquisition, construction, and extension of the life of a physical
entity. Thus~ this category includes public buildings, facilities
and buildinq systems; streets ~nd ~idewalks; intersection, traffic
and bike lane improvements; parks, qelf and open space improve
aents; and stor)!;: drains. Storm drains, noll/' an enterprise fund
item, have been included in this analysis because they were part of
the General Fund CIP in past years.
Exa.ples of CIP projects included in this category and other
categories are listed on pages 3 through 5 of the attached
worksheet. Budgeted dollars displayed or. the attached worksheet
exclude rei~rsements from the Utilities.
Note that some budqeted projects for buildings, an infrastructure
category, may be for reasons other than extending the useful life
of the capital as~et. Such expenditures are not included in this
cateqory. Ml example would be projects related to making facili
ties accessible to ci tiz.ans with disabilities. The purpose of
these projects is to promote public access, not to extend the life
of the modified structures.
BOn-Infrastructure: This category includes projects for such it~ms
as environmental and access improvements, communication and
informational systems, and miscellaneous projects. Examples of
these projects are provided on pages 4 through 5 of the attached
worksheet.
CHR:489:93 2
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Bztraor4inary/On.-Time CIP Project.: This cateqory includes one
t ille projec1:s fully funded by non-General Fund sourCeS~ 'rhese are,
arquably, exceptional projects that miqht skew the level and trend
ot budqeted capital expenditures included in the Public Infrastruc
ture catelJory.
ThirtatD-X.ar capital prograp Treud.
The VClrksheet on pages 1 through 2: of the attachment shows the
capital budget for the last 13 years, organized into the three
cateqories discussed above~ It is important to note that fundinq
by category can vary considerably Y2ar to year, depending upon the
size of one or more projects. Therefore, in addition to comparing
a "base year-to current year funding, it is instructive to t,rack
tunding over the 13-year period. In t~e right-hand columns of page
2 or the attachment, buageted capital expenditures in 1981-82 are
co.pared to budgeted capital expenditures in 1992-93. Adjustinq
for in~lation# the tollowinq tentative conclusions appear:
o The overall tot~l public inf~astructure budget has
increased by 109 percent in real dollars from 1981-82
through 1992-93.
o Public
capital
dollars
Buildings, Facilities and Building
projects have decrea6ed by 73 percent
from 1981-82 through 1992-93~
systems
in real
o streets and Sidewalk elP capital budqets have increased
by 140 percent in real dollars froll 1981-82 through 1992-
93.
o Intersection, Traffic and Bike Lane Improvements cepital
budqets have increased by 454 percent in real dollars
from 1983-84 thrcugh 1992-93 (this category did not have
a budget until 1983-84).
o Storm Drainage capital budgets have increased by over
4000 percent in real dollars from 1982-83 throuqh 1992-
93. (This category did not have a. budget until 1982-83.)
o Parks, Golf, Open Space and School Site Improvements
capi tal budgets have increased by 12 percent in real
dollars from 1981-82 through 1992-93.
o The cityrs non-infrastructure CIP project budgets have
increased by 595 percent in real dollars from 1981-82
th~ouqh 1992-93.
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Overall, the City has been able to keep pace ~ith inflation for its
total infrastructure budget. 'l'his has been accomplished through
dedication of the "Utility users tax monies to fund str-e.et and
sidewalk projects. by shifting storm drainaqe rrojects to enter
prise funding, and by the application of qas tax tunds, federa.l
funds and traffic mitigation fees for intersection, traffic and
bike lane improvements.
PUblic Ipil~inq.
FUndil\9 for improvements to public bu.5.1dings, facilities, and
building systems has decreased, when adjusted fo~ inflation, since
1981-92. The type of projects in this catlP-gory include root
repairs, seismic improvements, major remodeling of buildings,
building system improvements, dam repairs, and building new
facilities. In the main, these projects are supported by the
General Fund ~
Park. &ad Op.p Space Facilities
The public and council have expressed concerns regarding the level
of CIP funding for the City's parks and playgrounds. Within the
category ·Parke r Golf, Op&n Space and School Sites,· fundinq ~etail
is provided for park facility improvements over time. Funding for
infrastructure improvements such as playground equipment, park
a.enitiea such as benches and fences. and irrigation repair& has
been inconsistent since 1981-82. The 1993-94 park facility budget
of $344, SOO represents the highest level of funcling tor infrastruc
ture improvements over the lJ-year period. From 1981 through 1992-
93 the city has spent an average of $84,000 per year (adjusted for
inflation) on park infrastrUcture improvelllents. The 1993-94
fundinq or $344,500 for parks facility improvements reflects the
level of annual fundinq necessary to implement major components of
Community Services' Parks Master Plan (scheduled for the next five
years}. As with public building projects, parx prcjects have been
deper.dent upon the level of General Funds available for crp
projects.
BoD-Xlfra'~ctur. Project.
The City's non-infrastructure eIP budget has increased Significant
ly since 1981-82. This is a result of federal mandates. such as
the Americans with Disabilities Act and environmental mandates.
such as underqround tank removals. Projects such as Police and
Fire communication systems have been added to the elF budget. The
City has increased funding tor management information systeros t such
as Geographic Information Systems, Information Systems Development,
and Computer Aided Mapping. There has also been an increase in a
variety of miscellaneous, non-infrastructure projects, such as Art
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in Public Places, printing Services equipment upq~ades. MUnicipal
Service center security improvements, and fire station dormitory
lI.odificaticns~
COpplll.ioB
overall, capital budqet dollars devoted to public infrastructure
projects have kept pace with inflation and have not declined over
tiae. This is a consequence, hOlrr'ever, of dedication of the utility
users tax JU.onies to fund street and siaewalk project£l. and the
shiftlnq ot storm drain projects to enterprise tunding. Other
project categories, more dependent upon the availability of General
Fund finanCing, such as iaprcvements to public buildings and park
infrastructure t have experienced declines ia real dollar terms or
inconsistent funding over ti~e. Non-infrastructure projects have
experienced steady qrOYth based on regulatory changes, enhanced
public sat"ety systems, and the emergen~e of new computer technoloqy
to increase productivity and satisfy the demand for more informa
tion.
Respectfully submitted,
\ I.. ., \r.. ~..J'J."' ...
JOE SACCZO
S~~ior Financial Analyst
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Page J of 5
examples of projects ift Each CIP cateqory
public Buildings. structures and Facilit~and Systems
• Foothill and Arastradero Dam Repairs
• Childt"en's and Community Theatre and Cult,ural Center
~4ilding and Auditorium Improv~ents
• Correct structural Deficiencies in Lucie Stern Building
• Architectural and St.n!ctural Investigation of Public
Assembly Buildings
• Main Library Building Remodeling' and Structural
Deficiency correction
• Roof Repairs and Replacements at City Facilities
• Public Buildings: structural Improvements
• Foothills Fire Facility
• Civic center Fire Sprinkler System
• Lucie Stern Mechanical System Improvements
• HVM Energy conservation Retrofit
• Civic Center Energy Management System
• Rinconada Pool Renovation and Improvements
• Civic Center Air Intake Modification
• Heating and ventilation Systems at Lucie Stern
• CUbberley Roof Repairs
• celifornia Avenue Underpass Improvements
Parks and Playgroynds
• Renovation of Mitchell Parx Tot Lot
• Downtown Park North
• Greer Park Development
• Tennis and Sasketball Co~rt Resurfacings
• Renovation of Irrigation Systems and Installation of
Backflow Devices
• Playground Furniture and Equip~ent Replacement
• Baylands Reclaimed water System
• Parks Facilities Improvements and Repairs
• Baylands Athletic Center Circuit Replacement
Golf CQurse
• Maintenance Building Improvements
• Service Yard and storage Pad Improvements
• Golf cart Path Improvements
• Golf Course Perimeter Fence and Driving Ran.ge Fence
Installation and Repair
• Water Reclamation
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Page 4 of 5
~Space, Yacht Harbor. and San f'rilDci~guito Cr€elc:
• Erosion control on San Francisquito Cre~k
• yacht Harbor Rastoration and Improvements
• Baylands Duck Pond Filtration System
• Boronda Lake ¥..tblic Doc.k Replacement
• Foothills Park Picnic Facility Heplacement
SOhool Site Acquisition and Improvements
• Terman School Site Development
• Surplus school site Purchase
• school site Improvements
Environwenta~~vements
• Hazardous Materials storage
• Hazardous Materiels Underground Tank Removal
• Airport Tank Removal and Cleanup
• Ta~~ Investigation and Removal
• Fuel storage Tank Upgrades
Copunications
• Police Mobile Radio System Upgrade
• Dispatch Console Replacement
• Tel~phone System Replacement
• Microwave Radio system
• police and Fire communications computer System
• PBX Software and Hardware Upqrade
• Voice Processing System
Management and Information ~ystems
• Information systems Development
• Library computerization
• Financial Data Base Upgrade
• computer Aided Happing
• Geographic Information Systems
• wide Area Networkinq
• Warehouse Inventory Control System
• Personal Computer Upgrades
• payroll/Personnel System
Miscellaneous projects
• city Facilities carpet Replacement and painting
• Art in Public Places
• Facilities Maintenance
• Replacement ot Reproduction Equipment
G Garage Hoise and Equipment Overhaul
• Vehicular Washing Facility
,
Page 5 of 5
• Communications center Remodel
• Hearinq ru:paired Systems
• Civic Canter Conservation Lighting Improvements
• Fire station CVe~head Door Modification
• Fire station Dormitory Modifications
• Sign Replacement in Downtown parking Lots
• Records Management
• Evidence storaqe Expansion
• computer Room and Finance Vault Remodel
• Fire Apparatus Hearinq Protection
• Cable Television Equipment
• Printing Services Equipment Upq~ade