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Item 19 Staff Report Adopt Resolution Approving the 2001-2006 Capital Improvement ProgramCOUNCIL AGENDA REPORT DATE: JUNE 15, 2001 TO: MAYOR AND TOWN COUNCIL FROM: TOWN MANAGER SUBJECT: MEETING DATE: 6/18/01 ITEM NO. f ADOPT RESOLUTION APPROVING THE 2001-2006 CAPITAL IMPROVEMENT PROGRAM RECOMMENDATION: Adopt resolution approving the 2001-2006 Capital Improvement Program BACKGROUND: The 2001-2006 Capital Improvement Program (CIP) is presented to the Council for adoption. The CIP was previously presented to Council on May 7, 2001. DISCUSSION: Staff presented on May 7, 2001 a Summary Schedule of Source and Use of Funds for FY 2001-06 for all proposed capital projects. Staff has made no changes to the amounts presented in the proposed budget as reviewed by Council on May 7, 2001. Proposed 2001-02 Capital Improvement Plan : During the review of proposed Capital Improvement Plan by Council on May 7, 2001 a number of questions were raised regarding certain capital projects and their implementation plans including: Project Priority and Scheduling - Council asked about the scheduling of the proposed project plan. Staff is in the process of reviewing all proposed projects and anticipates delivering an update to Council in the fall. The update will include planning assumptions and prioritization/scheduling of all projects in the proposed plan. As discussed during the proposed CIP budget with the Town Council, staff envisions the CIP projects listed for 2001-02 to be implement during the next 2 fiscal years rather than be fully completed by the end of 2001-02. In addition, staff was asked to research unfunded projects from previous years IP's. This research is underway. PREPARED BY: f IJAMES W. PIPER Assistant Town Manager N:\FINANCE\Steven\00-006CIP. TCRPT.wpd Reviewed by: % Attorney E'r` NCO ' AY Finance & Admin Serv''rector Revised: 6/15/01 2:45 pm Reformatted: 7/14/99 PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING THE 2001-2006 CAPITAL IMPROVEMENT PROGRAM June 18, 2001 Santa Cruz Avenue Funding and Scheduling of Underground Utility Work - Council inquired about details of the North Santa Cruz Avenue resurfacing and potential underground utility work that may be needed. Staff advises that the RDA budget for FY 2001-02 includes a $1,560,000 allocation for Downtown Beautification Improvements to provide certain Streetscape Master Plan improvements on North Santa Cruz. Staff believes these improvements can be implemented without any negative impact prior to any potential underground utility line work beneath Santa Cruz Avenue. Additionally, funding is provided in the Town's Capital Improvement Plan for future resurfacing of North Santa Cruz. A discussion with the various utility companies will occur regarding their plans to improve infrastructure under Santa Cruz Avenue and other major downtown streets. Staff will coordinate with the various utility agencies regarding any need for the repair/replacement of underground utilities prior to beginning the street resurfacing. Plans will be reported to Council prior to implementation of this work. Underground Utility Funding. Council raised a question about the availability of underground utility funds for the potential under -grounding of utilities in the community. The town currently collects a fee for utility under -grounding on building permits for new construction. The estimated fund balance in the Underground Utility fund as of June 30, 2001, is approximately $1.4 million. Additionally, the Town is allocated under Public Utilities Commission Rule 20 A approximately $195,000 annually by PG&E who holds those funds for future under -grounding projects in Los Gatos. The current balance set aside by PG&E is approximately $390,000. The Town can continue to accumulate funds in this set aside until a project is identified and authorized by the Town and PG&E. The also may receive an advance of three year's of Rule 20 A funding for an approved project. For planning purposes, PG&E estimates the cost to be between $200-$500 per foot for under -grounding depending upon the exact details of the project. Potentially the Town could underground approximately one to two miles based upon current funding availability and current project costs. Staff advises at this time there are no definitive plans for any utility under grounding projects. Staff will review this situation and recommend to Council a proposed strategy in addressing this issue in the near future. Proposition 12 Funding. Council asked about the status of Proposition 12 funding. Staff advises that based upon its preliminary information, the Town is anticipating grant funds in the amount of $276,000 from Proposition 12 funds and $88,000 from the Z-Berg-Harris Block Grant Program (this program has a 30% local match requirement) that is also a part of Proposition 12. The State is currently developing a distribution process for Proposition 12 funds, but staff anticipates that the Town may be eligible for these funds by July 1, 2001. Staff intends to assess by the fall of 2001 the types of parks and related capital projects will qualify for these funds and bring recommendations forward to the Council at that time. Policy on Alleys. Council inquired about the Town's policy regarding alley maintenance in the Town. Staff in the Parks and Public Works Department are preparing a report on alleys, including policy implications. The report is expected to be completed and presented this summer to Council. This report will review miles of alleys, considerations such as potential reconstruction and maintenance costs, and other associated alley issues. PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT RESOLUTION APPROVING THE 2001-2006 CAPITAL IMPROVEMENT PROGRAM June 18, 2001 Capital Improvement Plan Communication. The Council asked about the extent of communications that had been made to the public regarding the Town's proposed Capital Improvement Plan. Staff advises that the Parks and Public Works Department along with the Town Manager's Office and Chamber of Commerce have held a number of strategy meetings to address the best methods to communicate the proposed Capital Improvement Plan. Staff believes that better communication can result in reduced disruptions for residents and businesses resulting from the capital improvement work It may also serve as a way to better inform community members about how the Town spends its available funds for capital projects. Staff is currently reviewing a number of initiatives, including articles in the local press, telephone hot line for residents, flyers and door hangers, website information including maps of the location of capital projects, and meeting with groups such as the local Chamber of Commerce to inform and receive input regarding planned capital project work. Staff intends to have the new Parks and Public Works Administrative Analyst coordinate this effort in the coming fiscal year. ENVIRONMENTAL ASSESSMENT: Adoption of the 2001-2006 Capital Improvement Program is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: Upon adopting the 2001-06 Capital Improvement Plan, the Town will proceed with its authorized capital appropriations and funding sources as detailed in the Proposed Capital Improvement Plan - Summary Schedule of Source and Use of Funds. Attachments: 1. Resolution Approving the 2001-2006 Capital Improvement Program RESOLUTION RESOLUTION OF THE TOWN OF LOS GATOS APPROVING 2001-2006 CAPITAL IMPROVEMENT PROGRAM WHEREAS, Section 2.30.295 of the Los Gatos town code requires the Town Manager to annually prepare and submit a budget to the Town Council and be responsible for its administration; and WHEREAS, the Town Manager did submit a proposed Capital Improvement Program for 2001-2006 fiscal years to the Town Council; and WHEREAS, the Town Council has considered and reviewed said proposed budget during a public hearing on May 7, 2001 NOW, THEREFORE, BE IT RESOLVED, AND IT IS HEREBY RESOLVED that the Council hereby adopts as the CIF for the Town of Los Gatos for fiscal years 2001-2006. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 18th day of June, 2001 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA MGR 186 a:\Budget Reso CIP.wpd Page 1 of 1 RESOLUTION 2001- 75 RESOLUTION OF THE TOWN OF LOS GATOS APPROVING 2001-2006 CAPITAL IMPROVEMENT PROGRAM WHEREAS, Section 2.30.295 of the Los Gatos town code requires the Town Manager to annually prepare and submit a budget to the Town Council and be responsible for its administration; and WHEREAS, the Town Manager did submit a proposed Capital Improvement Program for 2001-2006 fiscal years to the Town Council; and WHEREAS, the Town Council has considered and reviewed said proposed budget during a public hearing on May 7, 2001 NOW, THEREFORE, BE IT RESOLVED, AND IT IS HEREBY RESOLVED that the Council hereby adopts as the CIP for the Town of Los Gatos for fiscal years 2001-2006. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 18`h day of June, 2001 by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Sandy Decker, Steve Glickman, Mayor Joe Pirzynski. NAYS: None ABSENT: Steven Blanton ABSTAIN: None SIGNED:/s/ Joe Pirzynski MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Town Council Minutes June 18, 2001 Redevelopment Agency Los Gatos, California Jim Piper, Assistant Manager, gave the following brief update: Adjustments to PERS rates for Safety Employees rose rom 9.48% to 12.154% causing an increase to the budget of $83,000; Booking Fees are now shown in the Police Department budget more accurately reflecting the total cost of Public Safety; Carry Forward of funds are noted for Council's approval of projects currently in progress; Schedule of Fund Balance from the Proposed Budget of $430,000 in the Unallocated Fund Balance is now reflected in Reserve for Future Capital Improvements which is consistent with Town's Fiscal Policies. REDEVELOPMENT AGENCY BUDGET 2001-2006/RESOLUTION 2001-5RD (18.09 & 27) Motion by Mrs. Decker, seconded by Mr. Attaway, that the Agency adopt Resolution 2001-5RD entitled, RESOLUTION OF REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS APPROVING FISCAL YEAR 2001-2006 REDEVELOPMENT AGENCY BUDGET. (Joint Action) Carried by a vote of 4 ayes. Mr. Blanton absent. CAPITAL IMPROVEMENT PROGRAM FY 2001-2006/RESOLUTION 2001-75 (19.09) Motion by Mr. Attaway, seconded by Mr. Glickman, that Council adopt Resolution 2001-75 entitled, RESOLUTION OF THE TOWN OF LOS GATOS APPROVING 2001-2006 CAPITAL IMPROVEMENT PROGRAM. " (Joint Action) Carried by a vote of 4 ayes. Mr. Blanton absent. Sandy Decker, spoke of under grounding utility projects along Los Gatos Boulevard and asked that Council/Agency use appropriate monies when there are opportunities to do so such as partnering with developers along the Boulevard. COUNCIL COMMITTEE REPORTS (20.28) Steve Glickman spoke of the letter from the League of California Cities as to support of the draft ballot measure they are working on involved with the Grassroots Network. Their request is for full support of the ballot measure. TOWN MANAGER REPORTS (21.28) Ms Figone alerted Council that there are four or five additional study sessions anticipated over the next few months. Staff will be working on those agendas and will be discussing them with the Mayor who sets the agendas. Staff will be sensitive to Council members' schedules. ADJOURNMENT Motion by Mr. Glickman, seconded by Mrs. Decker, to adjourn this evening's meeting at 10:48 p.m. Carried by a vote of 4 ayes. Mr. Blanton absent. ATTEST: Marian V. Cosgrove Town Clerk 10