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03 - Transmittal&CIP Projects CombinedProposed A - 1 TOWN OF LOS GATOS CIVIC CENTER 110 E. MAIN STREET P.O. BOX 949 LOS GATOS, CA 95031 May 16, 2011 Honorable Mayor and Town Council: I am pleased to submit to you the Proposed FY 2011/12 – 2015/16 Five-Year Capital Improvement Program (CIP) for the Town of Los Gatos. The CIP is a comprehensive five-year capital improvement plan designed to identify projects to develop and maintain the Town’s infrastructure, which is consistent with the Town Council core value of maintaining the condition and availability of public facilities. Guidance for developing priorities for capital improvement projects is also derived from key plans, including the General Plan. In early 2011, the Town Council reaffirmed its Core Values and 2011-2013 Strategic Goals. One of the core values is to maintain the condition and availability of public facilities, transportation systems, and other public infrastructure. A strategic goal tied to this core value is to address funding needs for street maintenance, sidewalks, and retaining walls. FY 2011/12, the first year of the five-year plan, increases funds from these basic infrastructure needs including new public facilities and parks, street repair and reconstruction, street safety projects, retaining walls, sidewalk curb, and gutter projects, and park projects. Significant projects recommended for FY 2011/12 by category include: Street Program Projects: Blossom Hill Road street improvements, including roadway widening and sidewalk, bicycle lane, and crosswalk construction. Highway 9/University Avenue traffic system improvements, including dedicated left turn lanes, new traffic signal and sidewalks, and ADA improvements. Wedgewood Avenue street improvements, including the construction of sidewalks, bicycle lanes, and a storm drain system. Almond Grove Street Rehabilitation Project, including the design and multi-year reconstruction of neighborhood streets. Installation of a new traffic signal at University and Lark avenues. University Avenue Resurfacing will perform base repairs, storm drain improvements and new asphalt overlay from Shelbourne Way to the Vasona Dam. New funding of approximately $1.1 million for residential street repair and rehabilitation. New funding of $250,000 for curb, gutter, and sidewalk repairs throughout the Town. New funding allocation of $100,000 for retaining wall repairs. $25,000 additional funding for annual street restriping. Parks Projects: Implementation of Phase 2 of the Pageant Grounds Access Improvement Project, enhancing pedestrian access to the park area from the new Library. Construction of the new Los Gatos Creekside Sports Park, beginning in winter 2011/12. Construction of a new, ADA compliant pathway at Live Oak Manor Park. Public Facilities Projects: Completion of the new Library, including approximately $8 million of carry forward funds. Conceptual design and planned reuse of the existing Library space at the Civic Center. CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 2 In addition to the projects highlighted above, the FY 2011/12 includes other infrastructure projects as detailed in CIP summary documents and further described in the project detail pages by category. CIP FINANCIAL SUMMARY The proposed five-year plan totals $33.5 million. $26.2 million is proposed in the first year of the plan, comprised of approximately $12.4 million in carryover funds from FY 2010/11 and approximately $13.8 million in funding for new projects and/or additions to existing projects. The proposed five-year CIP reflects only $4 million in ongoing dedicated sources (Gas Tax) to help fund the proposed $33.5 million of planned capital improvements. The balance of CIP funding of $29.5 million is funded by: Accumulated operating budget savings/excess revenues from the General Fund ($15.7 million) Public Improvement Grants funding ($6.0 million) Sale of Vasona Land revenue to fund the construction of the Los Gatos Creekside Sports Park ($2.7 million) Grant Funds ($2.3 million) Redevelopment Agency financing ($38,280) Traffic Mitigation Funds ($2.4 million) Storm Drain Funds ($350,000) The primary source of funding for the Town’s capital program is the Town’s General Fund Appropriated Reserve (GFAR). By Council direction, this fund receives transfers from the General Fund’s designated Reserve for Future and Special Projects (current balance projection for July 1, 2011 is approximately $3.8 million) which receives 50% of the Town’s annual revenues above operating expenditures after funding all legally restricted reserves at their required levels. The transfer to GFAR is anticipated to be $650,000 for FY 2011/12. If current projections hold true, the CIP will continue to receive a transfer from the General Fund of approximately $650,000 for FY 2012/13 and $2.4 million for FY 2013/14 thru FY 2015/16. The funding capacity from this reserve greatly aids the Town’s ability to implement the CIP; however, the proposed new level of annual funding still falls short of the required funding necessary to support future annual infrastructure maintenance or construct new facilities. Establishing a reliable, dedicated source of funding for basic capital improvements beyond the use of accumulated reserves remains a long-term need and goal for the Town. Another source of funding for infrastructure improvements is long-term debt. In FY 2009/10 approximately $14 million in Certificate of Participation (COPs) were issued. This financing is secured by RDA tax increments, which will fund most of the $18.5 million new library project. In July 2002, the Town successfully issued approximately $10.7 million in COP’s to provide funding for eligible priority projects within the Redevelopment Agency project area. Notable improvements included the Town Plaza reconstruction, downtown streetscape and street reconstruction, and alleyway projects. The unspent bond proceeds remaining from the July 2002 COP’s (approximately $38,280) have been carried forward to FY 2011/12 to the Almond Grove Street Rehabilitation Project. The Town also receives funding from its Storm Drain Fund, which relies on a previously established charge of $75 cents per square foot of impervious surface created by development. Depending on the development activity, this fee produces approximately $100,000 in revenue annually. This fee has not been adjusted for several years and will need to be evaluated as part of the NPDES planning process. The Utility Undergrounding Fund serves as a funding source for activities generally undertaken in conjunction with street improvement projects. The Utility Undergrounding funding is derived from a Town construction tax of 18 cents charged for each square foot of building addition or alteration within the Town, and from Rule 20A funds allocated from a percentage of electric bills. The Town's allocation is CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 3 typically $15,000 annually. Total cash balances currently on hand from the utility undergrounding construction tax are approximately $2.4 million at FY 2010/11 year-end. No projects are proposed in 2011/12 thru 2015/16. The remaining sources are primarily one-time funds from State or Federal government or from special revenue funds that have often fluctuated in tandem with the economy and the state budget. Examples of one-time funds include Federal Stimulus funds and State Proposition 42 Gas Tax funds. PROPOSED FY 2011-16 CIP OVERVIEW The Capital Improvement Program is broadly grouped into: Street Program, which maintains and ensures functional streets, pedestrian, and bike systems. Park Program, which repairs or improves parks, park buildings, and urban forestry. Public Facilities Program, which constructs and repairs public buildings and purchases equipment. The proposed CIP projects represent carry-forward projects from the prior year as part of the multi-year programming of projects and new projects not previously programmed. Of the total estimated five-year CIP cost of $33.5 million, approximately $11 million (33%) is allocated to public facility projects, $18.9 million (57%) is allocated to the streets, retaining walls, sidewalks, and curbs category, $3.5 million (10%) is allocated to park projects. Allocations are summarized below by type of major improvements within the program categories. Carryfwd to 2011/122011/122012/132013/142014/152015/16 Total By Category Total By Program Streets Reconstruct/Resurfacing1,165,402 5,749,200 1,175,000 1,175,000 1,175,000 1,150,000 11,589,602 Maintenance & Safety710,780 585,000 475,000 435,000 435,000 435,000 3,075,780 Street Improvements1,350,000 2,460,000 74,516 30,000 174,299 65,000 4,153,815 Bridges123,730 - - - - - 123,730 18,942,927 Parks Park Improvements 638,749 2,825,024 - - - - 3,463,773 Trail Improvements- - - - - - - 3,463,773 Public Facilities Infrastructure Projects8,176,806 2,182,150 477,000 - - - 10,835,956 Equipment Projects242,968 - - - - - 242,968 11,078,924 TOTALS12,408,435 13,801,374 2,201,516 1,640,000 1,784,299 1,650,000 33,485,624 Five Year CIP Summary Total funding for street reconstruction and resurfacing for the next five years is planned at $11.6 million with approximately $6.9 million allocated in FY 2011/12 including carryovers. Over the five-year period, the CIP proposes $7.4 million for various other street-related infrastructure improvements including street maintenance and resurfacing; curb, gutter and sidewalk maintenance; street intersection improvements; retaining wall reconstruction; crosswalk ramps and safety devices; and storm drain improvements. The proposed funding and scope for the annual concrete curb, gutter, and sidewalk repair and replacement 56.7%maintenance program could be enhanced through cost-sharing with property owners. The Council has expressed interest in exploring this concept; however, due to workload priorities, this approach has not been pursued. Staff will restructure its workload to accommodate this request upon Council direction. Although the Proposed FY 2011/12-2015/16 CIP is a five-year plan, only the first year of the plan is formally adopted with funds appropriated by the Town Council as part of the budget process. Future year CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 4 projects are funded with designated cash reserves on hand, supplemented by estimated annual revenues for capital funding purposes such as Gas Tax funds and state transportation bond funds. The scope and funding estimates may change as the fiscal situation and evolving priorities dictate. As discussed earlier, the proposed FY 2011/12 CIP appropriation totals $26.2 million. Of this amount, $12.4 million represents carry forward funds available from the prior year. The following schedule lists the carryforward and new projects by fund and by program for appropriation in FY 2011/12. GFARGrants andGas TaxOtherTotal CARRYFORWARD PROJECTSAwards StreetsStreet Repair & Resurfacing1,626,322$ - 650,000 - 2,276,322$ * Annual Street Restriping 26,120 - - - 26,120 * Almond Grove Street Rehabiltation Project4,000,000 - - 38,280 4,038,280 * Traffic Calming Projects49,698 - - - 49,698 * Curb, Gutter & Sidewalk Maintenance328,035 - - - 328,035 * Hwy 9/University Intersection- 900,000 - - 900,000 Blossom Hill Road Improvements - 450,000 - 900,000 1,350,000 * Wedgewood Ave Improvements- - - 900,000 900,000 * Lark Avenue Traffic Signal Improvements- - - 375,000 375,000 * Retaining Wall Repairs691,927 - - - 691,927 * Quito Rd - Bridge Replacement123,730 - - - 123,730 ParksPageant Grounds Access Improvement Design315,284 - - - 315,284 Los Gatos Creekside Sports Park2,930,489 - - - 2,930,489 * Public FacilitiesTown Beautification Projects21,156 - - - 21,156 Energy Efficient Lighting Project- 132,712 - - 132,712 Library Facility Project7,903,852 - - - 7,903,852 Civic Center Reuse Project1,850,000 82,150 - - 1,932,150 * Audio / Video System Upgrade40,992 - - - 40,992 Information System Upgrade78,735 - - - 78,735 Town-wide Document Imaging Project70,741 - - - 70,741 Tiburon CAD / RMS Upgrade52,500 52,500 HVAC Upgrades19,086 - - - 19,086 TOTAL OF CARRYFORWARD PROJECTS 20,128,667$ 1,564,862$ 650,000$ 2,213,280$ 24,556,809$ NEW PROJECTS StreetsUniversity Avenue Guardrail200,000 - - - 200,000 Univ Ave Resurfacing (Shelbourne to Vasona)100,000 500,000 - - 600,000 Hicks & Philips Culvert Improvements- - - 285,000 285,000 ParksOMP Picnic Areas #1 & #2 Renovation78,000 - - - 78,000 Live Oak Manor Park ADA Upgrades32,000 108,000 - - 140,000- - - Public FacilitiesDowntown Improvements250,000 - - - 250,000 Adult Rec Center Roofing Project80,000 - - - 80,000 Plaza Bus Shelter Renovation Project20,000 - - - 20,000 TOTAL OF NEW PROJECTS760,000$ 608,000$ -$ 285,000$ 1,653,000$ TOTAL OF CARRYFORWARD & NEW PROJECTS20,888,667$ 2,172,862$ 650,000$ 2,498,280$ 26,209,809$ * These carryforward projects include new money for FY 2011/12 in the amount of $12,241,350 Carryforward & New FY 2011/12 CIP Projects All physical assets, such as road surfaces and buildings, have a useful life and must be refurbished, reconstructed, or replaced. A regular program of preventive maintenance and repair can extend the useful life of these assets. Despite the cyclical nature of some of the revenue sources outlined above, the Town is committed to maintaining its infrastructure assets utilizing the resources available. Approximately 56.7% of the proposed FY 2011/12-2015/16 CIP funding is allocated to street reconstruction and maintenance projects. These projects include: street base repairs and resurfacing, curb, gutter, and sidewalk replacement, retaining wall construction, and storm drain improvements. This emphasis reflects the Town Council’s priority to address street maintenance needs. The goal is for Town streets to be at an average Pavement Condition Index (PCI) of above 70 (100 being the highest rating possible). The Town’s cumulative investment in its streets has resulted in raising the PCI from a low of 64 in 2002 to the level of 75 in 2006. The current PCI value for Town streets as of spring 2010 is 69. This value is primarily driven by the condition of residential streets. The PCI for arterials and collector streets is 85 and 70 respectively. CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 5 One of the primary ways that the Town will begin to address the deteriorating condition of residential streets is by making a $4 million investment in streets and other related infrastructure in the Almond Grove district. The streets in this area are predominantly of concrete construction and most are in need of complete reconstruction. During FY 2011/12, several streets in this area will be reconstructed, thus increasing the Town’s overall PCI. While $4 million is a significant investment, it represents less than 25% of the resources needed to perform all of the repairs and maintenance activities required for the streets in this area. The decline in PCI from 75 to its current value of 69 confirms that a higher level of investment is required to maintain the PCI at a level of 75 over the next five year period. This funding requirement is based on criteria set forth in the Town-wide Pavement Management Program, utilizing the standard program established by Metropolitan Transportation Commission and is being used by all municipalities in the bay area coupled with inflationary factors and the current cost of materials. While the level of funding appropriated in FY 2010/11 and proposed in FY 2011/12 is anticipated to restore the Town’s PCI to 70 or above in the short term, additional investments will be required to maintain that level in the later years of the CIP. Potential Funding Sources As illustrated in the chart below, funding for street repair is based on revenue from a variety of sources, including gas tax, transfers from the General Fund Designated Reserve, and General Fund Appropriated Reserve Fund. Potential Funding Source Annual Estimated Amount Per Five-Year CIP Gas Tax Funds $832,290 Transfer from General Fund Designated Reserve $650,000 Road Impact Fee $375,000 Five-Year CIP Estimated Annual Total $1,857,290 Gas tax revenues ($832,290) and funding from the General Fund Designated Reserves account for the majority of the $1.9 million annual funds available for street maintenance. Other funds that help support street repair and maintenance are subject to a year-to-year allocation as part of the State budget process. Assuming that the proposed five-year CIP annual investment of $1.9 million in streets continues to be available, options to achieve an enhanced investment target of $2 million include: Further reducing the operating budget by another $100,000 and allocating it annually to the street program. Continuing the current method of allocating unexpended operating costs, assuming that sufficient funds will be available. This approach could involve increasing the percentage of funds allocated to street repair and reducing the amount allocated to other capital projects. Exploring the feasibility of new revenue sources, such as a voter-approved General Obligation Bond, the formation of an assessment district located in specific areas, or other variations of debt, fee or tax financing. Staff will continue to work within funding limitations to address the Town’s overall pavement conditions while ensuring the continue use of best practices in materials, selection, and construction/project management. Aside from the significant street infrastructure projects, the Town is also moving forward with several other major capital projects. The construction of the new Town Library will continue into FY 2011/12 CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 6 and is scheduled to be completed in early 2012. When completed, this new $18 million facility will provide Town residents with more than 30,000 square feet of Library space. In addition, the development of a new sports park, located at 930 University Avenue, is currently moving forward through the master planning and environmental review phases. The construction of this 2.5 acre facility, funded through the proposed FY 2011/12 Capital Budget using the proceeds of the Vasona land sale, will begin in the fall of 2011 and is scheduled to be completed during the summer of 2012. This facility will provide a large multi-use athletic field that can accommodate several different sports or activities. FY 2010/11 COMPLETED PROJECTS Several high priority projects are expected to be completed by the end of FY 2010/11. The schedule below outlines projects, corresponding funding source, and total expense of the completed projects, which is estimated to be $5.1 million. Prior YearsGFARGrant and RDAOther *Total AwardsEstimated ExpExpExpExpExp Street Program Univ Ave/BHR Intersection Imp- 26 - - - 26$ Kennedy/Englewood Improvements11,383 - - - - 11,383$ Roberts Road - Bridge Replacement1,570,864 266,269 1,800,000 - - 3,637,133$ New Fence at Winchester (Daves to Blanchard)- 25,000 - - - 25,000$ Hwy 9 Phase 111 Design- 27,761 - - - 27,761$ Bicknell Rd Storm Drain- - - - 25,000 25,000$ Improve Intersection Andrews/NSC- 32,756 - - - 32,756$ Improve Intersection Union/BHR- 12,721 - - - 12,721$ LG / Saratoga Speed Display Replacement- - - - 6,000 6,000$ Curbs, Gutters, Sidewalks 1B- - 436,565 - - 436,565$ Park Program La Rincanada Tennis Courts Resurface- - 13,250 - - 13,250$ BH Park Tennis Count Improvements- 5,000 35,520 - - 40,520$ Replace Wood Fiber-Multiple Park Sites- 20,000 - - - 20,000$ Oak Meadow Park Tot Lot Renovation- 18,000 - - - 18,000$ Bachman Park Playground Upgrades- 50 32,249 - - 32,299$ Belgatos Park Playground Upgrades- 11,572 15,173 - - 26,745$ Blossom Hill Park Upgrades- 6,650 46,141 - - 52,791$ Oak Meadow Park ADA Pathway Access- - 139,885 - - 139,885$ Public Facilities Program 123 Main Street Remodel- 69,554 - - - 69,554$ Civic Center Site Improvements435,087 - - - 4,707 439,794$ TOTAL OF COMPLETED PROJECTS2,017,334$ 495,358$ 2,518,783$ - 35,707$ 5,067,182$ * Other Funds include Storm Drain Fund, Gas Tax Funds, Utility Underground Funds and Traffic Mitiagtion Funds. PROJECTS COMPLETED IN FY 2010/11 PAST ACCOMPLISHMENTS The Town continues to make substantial investments in its transportation infrastructure and has completed a number of successful traffic circulations, pedestrian safety, and neighborhood traffic projects as briefly discussed below: Street Reconstruction and Maintenance The following table summarizes the funding sources of the high priority CIP street reconstruction and resurfacing projects expended by the Town since FY 2005/06 through the current year. The total value of this investment is approximately $5.7 million. Looking into the future, the proposed CIP includes approximately $15.9 million of additional street or intersection improvements over the next five years. CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 7 Expenses & Funding Source Expended 2005/06 thru 2010/11 Estimated Carryforward to 2011/12 New Funding 2011/12 thru 2015/16 Total Funding 2011/12 thru 2015/16 GFAR1,756,342$ 1,167,940$ 6,849,200$ 8,017,140$ Traffic Mitigation327,877 - 2,379,299 2,379,299$ Gas Tax3,549,691 - 3,250,000 3,250,000$ RDA41,720 38,280 - 38,280$ Grants- 1,350,000 500,000 1,850,000$ Storm Drains17,180 - 350,000 350,000$ TOTAL5,692,810$ 2,556,220$ 13,328,499$ 15,884,719$ Included with the $15.9 million dollars of street improvements are significant projects completed in recent years, including street reconstruction, repaving of major arterials and collectors, and neighborhood streets including: Rehabilitation of Hillside Streets Resurfacing of University Avenue from Mullen to Main Street Resurfacing Bachman Avenue between University and North Santa Cruz Avenue Winchester Blvd/Lark Ave Intersection Improvements University Avenue/Blossom Hill Road Intersection Improvements Railroad Crossing at Winchester Boulevard Prospect Avenue Resurfacing In addition to the substantial street reconstruction and repaving efforts, the Town has invested in other components of the Town’s transportation system infrastructure, including: Retaining Wall Replacement Several retaining walls were repaired and replaced including those on University Avenue, Cleland Avenue, Wooded View Drive, and along the Los Gatos Creek Trail near Lark Avenue. Enhanced Pedestrian Access and Safe Routes to Schools New sidewalks were installed and pathways were resurfaced at several locations throughout the Town, including: Winchester Boulevard between Daves Avenue and East Vineland Avenues Pollard Road lighted crosswalk adjacent to Jack Fisher Park Wedgewood Avenue from Wimbledon Drive to Mulberry Drive Mitchell Avenue, between Fisher Avenue and George Street Completion of the new Roberts Road bridge, including bike lanes and sidewalks School/pedestrian enhancements include: Upgrade of traffic control timing and re-striping of crosswalks near elementary schools Upgrade of neon green “pedestrian crossing” signs Installation of pedestrian countdown signals on Los Gatos Boulevard Installation of new speed radar signs on Oka Road and Pollard Road Installation of new traffic signals at the intersection of Daves Avenue/Winchester Boulevard and University Avenue/Blossom Hill Road to improve pedestrian safety and bicycle access Traffic Calming Projects Several projects were completed in recent years, including neighborhood projects focusing on: Massol Avenue Wraight Avenue Vista Del Monte Belwood Gateway (in progress) Short Road (in progress) CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 8 Park Improvement Projects Several projects have been successfully completed over the last several years, including: Resurfacing hard courts at Bachman, Blossom Hill, and La Rinconada parks Renovation of play lots at Bachman, Belgatos, and Blossom Hill parks Replacement of play lot equipment at Live Oak Manor park Construction of a new ADA compliant pathway at Oak Meadow park Safety enhancements to the decorative fountain at the Town Plaza CONCLUSION The challenge of finding a reliable ongoing revenue stream available for capital projects continues to be a Town priority. Recognizing the realties of funding challenges and uncertain local economic trends, the Town’s Proposed FY 2011/12 – 2015/16 Capital Improvement Plan continues a strategy of funding the Town’s most urgent capital needs. I wish to thank all of the departments, in particular, Department Directors and members of their management and support staff for their countless hours of work and tireless efforts to present this Capital Improvement Program to the Town Council as well as the following staff members: Pamela Jacobs, Assistant Town Manager Todd Capurso, Parks & Public Works Director Kevin Rohani, Town Engineer Wendie Rooney, Community Development Director Stephen Conway, Finance and Administrative Services Director Jenny Haruyama, Assistant Finance/Budget Director Linda Isherwood, Accountant/Finance Analyst Gitta Ungvari, Administrative Analyst Respectfully submitted, Larson Town Manager CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 9 FY 2011/12 – 2015/16 CAPITAL IMPROVEMENT PLAN BUDGET ADDENDUM The Council’s adoption of the Capital Improvement Plan will appropriate the first year of budgeted revenues, expenditures, and operating transfers as outlined in the budget document. The CIP’s out years reflect the established plan at the time of adoption. As appropriate, out-year plans will be reviewed and adjusted in following year’s Capital Improvement Plans. This budget addendum section, which follows the proposed budget’s Transmittal Letter, conveys Council directed revisions to the proposed budget as determined in May’s public hearing on the proposed CIP budget, as well as corrections and project revisions. Council did not direct any project changes, additions, deletions, or funding revisions for the FY 2011/12 – 2015/16 Capital Improvement Plan. CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 10 BUDGET PROCESS OVERVIEW he Town of Los Gatos adopts an annual Operating and Capital Budget and an annual budget update of the five-year Capital Improvement Plan for the Town of Los Gatos and the Los Gatos Redevelopment Agency (RDA). The budgets contain summary level information for revenue and expenditure appropriations for the fiscal year beginning July 1st and ending June 30th. The budget documents are prepared in accordance with generally accepted accounting principles (GAAP). Budget Purpose The Operating and Capital Summary Budget and the Capital Improvement Plan serve as the Town’s financial plan, as well as a policy document, a communications tool, and an operations guide. Developed with an emphasis on long range planning, service delivery, and program management, a fundamental purpose of these documents is to provide a linkage between the services and projects the Town and Redevelopment Agency intends to accomplish, and the resources committed to get the work done. The format of the budget facilitates this linkage by clearly identifying program purpose, key projects, and work plan goals, in relation to revenue and expenditures appropriations. CIP Purpose In particular, the CIP is designed to identify projects and funds required to adequately develop and maintain the Town’s infrastructure, which is consistent with the Town Council strategic goal of maintaining the condition and availability of public facilities. The following plans provide additional guidance in developing priorities for capital improvement projects: • General Plan • Street Improvement Program • Storm Drain Master Plan In addition, project prioritization criteria such as health and safety issues, infrastructure or system condition, short-term versus long-term impacts and availability of external funding sources are assessed as part of the process that staff uses to rank projects from high to low in preparing the proposed CIP. As it develops and matures in its application, the Town’s Infrastructure Assessment Program will further support the Town’s long-range Capital Improvement Program, focusing attention on the current and future infrastructure needs of the community and balancing the community’s needs with funding requirements and financial resources. Other technology tools used in CIP development include the use of the geographic information system, the traffic monitoring system, electronic files for tracking unfunded projects and replacement schedules, and an asset management program to track work requests. The Town’s capital projects are categorized as follows: The Streets Program provides funding for maintaining a functional street and pedestrian system. Proposed projects are consistent with the General Plan; provide for a safe and efficient traffic flow through intersections while minimizing unnecessary traffic movement and noise through residential neighborhoods; and provide street lighting for traffic safety at intersections and on public streets. Also included are sidewalk improvements. The Public Facilities Program includes projects for constructing and repairing public buildings, and purchasing equipment. Town buildings include the Civic Center, the proposed new library, Neighborhood Center, Service Center, Tait Avenue and Forbes Mill Museums and partial service to the Recreation Center, which is a Town-owned building leased to the Los Gatos- Saratoga Recreation District. Although the Town owns the three fire stations within the Town limits, the Santa Clara County Fire District maintains them per its contract with the Town. The Parks Program includes projects for parks, park buildings, urban forestry, and urban beautification. T PROPOSED CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 11 Basis of Budgeting and Accounting Developed on a program basis with fund level authority, the operating and capital budgets represent services and functions provided by the Town in alignment with the resources allocated during the fiscal year. The Town’s Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds for both the Town and the Redevelopment Agency (RDA). Basis of Accounting and Budget refers to the timing factor concept in recognizing transactions. This basis is a key component of the overall financial system because the budget determines the accounting system. For example, if the budget anticipates revenues on a cash basis, the accounting system must record only cash revenues as receipts. If the budget uses an accrual basis, accounting must do likewise. The Town’s budgeting and accounting systems both use a combination of modified accrual and full accrual basis in the accounting and budget systems. Governmental Fund types and RDA fund budgets are developed using the modified accrual basis of accounting. Under this basis, revenues are estimated for the period if they are susceptible to accrual, e.g. amounts can be determined and will be collected within the current period. Principal and interest on general long-term debt are budgeted as expenditures when due, whereas other expenditures are budgeted for liabilities expected to be incurred during the current period. Proprietary fund budgets are adopted using the full accrual basis of accounting whereby revenue budget projections are developed recognizing revenues expected to be earned during the period, and expenditures are developed for expenses anticipated to be incurred in the fiscal year. The Town maintains one type of proprietary fund: Internal Service Funds. The Town’s fiduciary funds are also budgeted under the modified accrual basis. The Town administers four trust funds and one agency fund. Trust funds are subject to trust agreement guidelines, and the Agency Fund is held in a purely custodial capacity involving only the receipt, temporary investment, and remittance of resources. Summary of Budget Development The Town develops it budgets with a team-based budgeting approach. Town Management and the Finance Department guide the process through budget development; however program budgets and workplans are developed with each department’s Director, Analyst and Program Manager’s oversight and expertise. This approach allows for hands-on planning and creates a clearer understanding for both management and staff of a program’s goals and functions to be accomplished in the next budget year. The Development Process Typically both the Operating and Capital Budget and Capital Improvement Plan (CIP) processes begin in the fall with the Town Council and Town Manager’s collaborative development and refinement of initiatives and directives for the upcoming budget year. In January the budget preparation process begins officially for staff with a budget kickoff meeting. Budget assumptions, directives and initiatives developed by Town Council and Management are provided to set the Town’s overall objectives and goals. Department and agency staff identify and analyze program revenue and expenditure projections in coordination with Finance/Budget staff and Town management. Capital improvement projects are assessed and refined, and CIP funding and appropriation requirements are finalized. Through rounds of budget briefings and revisions, staff’s final program budget and workplans are developed by the end of April; operational and capital workplans are finalized, and the Finance/Budget staff prepares financial summary information for Town Council review in addition to departmental budgets and workplans. PROPOSED CAPITAL IMPROVEMENT PROGRAM Introduction Section A - 12 CIP Development Process The long-term Capital Improvement Program (CIP) includes projects that have a value of $25,000 or more with a minimum useful life of 5 years at a fixed location. Equipment, operating and maintenance costs associated with the CIP projects are identified where feasible, and will be included in future operating budgets. Cost estimates for new projects are based on 2009 dollars; however, engineering estimates for carryover projects from the prior year are updated to reflect current industry costs. Under direction from the Town Manager’s Office, the Parks and Public Works Department took the lead in the preparation of the proposed projects for consideration in the FYs 2010-15 Capital Improvement Plan. In coordination with other Town departments, projects were reviewed to ensure that the Town’s priorities are addressed within available resources. In some cases, previously approved projects have been deferred due to reallocation of funding to other priorities and thus have been noted as unfunded projects in each program section of the CIP. The Town Manager’s Office reviews the prioritized list of proposed capital improvement projects and funding sources in conjunction with the preparation of the FY 2011/12 Operating Budget. The Proposed CIP is then presented by the Town Manager to the Town Council. The Proposed CIP is also submitted to the Planning Commission for review to ensure that the proposed projects are consistent with the Town’s General Plan. The Planning Commission reviewed the CIP on April 27, 2011. The CIP is reviewed during this time to determine funding capabilities, project priorities, and to refine project work plans. Although the CIP budget document is prepared separately from the Operating and Capital Budget, CIP program information is incorporated into the Operating and Capital Summary Budget document through the resulting financial appropriations and service level requirements. Budget Adoption During the month of May, the Town Council reviews the proposed Operating and Capital Summary Budget, and the Capital Improvement Plan for the five year period in a public hearing. Notice of the hearing is published in a local newspaper at least ten days prior to the Council’s public hearing date. The public is invited to participate and copies of the proposed budgets are available for review in the Clerk Department and at the budget hearing. Under requirements established in Section 65401 of the State Government Code, the Town’s Planning Commission also reviews the proposed Capital Improvement Plan and reports back to the Town Council as to the conformity of the plan with the Town’s Adopted General Plan or part thereof. Final council-directed revisions to the proposed budget are made and the budget documents are resubmitted to the Town Council for adoption, again in a publicized public hearing prior to the beginning of the fiscal year. Section 2.30.295(b) of the Los Gatos Town Code requires the Town Manager to annually prepare and submit a budget to the Town Council. This is accomplished in June, when the final proposed budget is formally submitted to the Town Council in the subsequent public hearing. The approved resolutions to adopt the CIP and operating budgets and the appropriation limitation (Gann Limit) follow this section. Budget Amendments During the course of the fiscal year, workplan changes and unanticipated needs will necessitate adjustments to the adopted budgets. The Town Manager is authorized to transfer appropriations between categories, departments, projects, and programs within a fund in the adopted budget, whereas the Town Council holds the authority for budget increases and decreases and transfers between funds. PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-13 PROJECT LOCATIONS A Roberts Road Bridge Replacement H Oak Meadow Park Tot Lot Improvements B Wall Repair at Winchester Boulevard (Daves to Blanchard) I Blossom Hill Park Playground Upgrades C Bicknell Road Storm Drain Improvements J Bachman Park Playground Upgrades D Andrews/North Santa Cruz Avenue Intersection Traffic Signal Improvements K Belgatos Park Playground Upgrades E Union/Blossom Hill Road Intersection Traffic Signal Improvements L 123 Main Street Remodeling Project F Curbs, Gutters, Sidewalks Replacement Project Funded by Prop. 1B M Wood Fiber Replacement at Multiple Park Sites G Oak Meadow Park ADA Pathway Access PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-14 A Roberts Road Bridge Replacement Roberts Road Bridge Replacement This project included replacement of an old bridge with a new single span bridge. The new bridge is seismically and structurally safe and has improved traffic safety. The single span structure without columns near the creek provides a clean look and eliminates erosion problems. The construction cost for this bridge was $2.2 million. B Wall Repair on Winchester Boulevard (Daves to Blanchard) Wall Repair on Winchester Boulevard (Daves to Blanchard) This project involved repairing the existing wall along Winchester Boulevard from Daves Avenue to Blanchard to enhance pedestrian safety. The total project cost was $5,000. C Bicknell Road Storm Drain Improvement Bicknell Road Storm Drain Improvements This project installed two storm drain inlets and underground pipes at end of Bicknell Road to enhance the capacity of the area storm drain system and reduce flooding. The total project cost was $25,000. PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-15 D Andrew Street/North Santa Cruz Avenue Intersection Improvements Andrews Street /North Santa Cruz Avenue Intersection Traffic Signal Improvements This project included the installation of a video camera system and LED lights at the intersection. The total project cost was $25,000. E Union Avenue/Blossom Hill Road Intersection Improvements Union Avenue/Blossom Hill Road Intersection Traffic Signal Improvements This project included the installation of a video camera system and LED lights at the intersection. The total project cost was $20,000. F Curbs, Gutters, and Sidewalks Improvements 1B Curbs, Gutter, Sidewalks Replacement Project Prop. 1B This project repaired and replaced damaged concrete curb, gutter, and sidewalk throughout the Town. Concrete curb, gutter, and sidewalk damage is largely due to tree root over growth. This project, in conjunction with other Town concrete repair and replacement projects, helps mitigate this problem. The total project cost was $440,000. PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-16 G. Oak Meadow Park ADA Pathway Access Upgrades Oak Meadow Park ADA Pathway Access Upgrades This project widened and reconstructed the pathway around the grass area at Oak Meadow Park, making it compliant with current ADA standards. The total project cost was $110,000. H Oak Meadow Park Tot Lot Improvements Oak Meadow Park Tot Lot Improvements To ensure compliance with safety standards, play structures at Oak Meadow Park were upgraded. The total project cost was $18,000. I Blossom Hill Park Playground Upgrades Blossom Hill Park Playground Upgrades To ensure compliance with safety standards, play structures at Blossom Hill Park were upgraded. The total project cost was $50,000. PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-17 J Bachman Park Playground Upgrades Bachman Park Playground Upgrades To ensure compliance with safety standards, play structures at Bachman Park were upgraded. The total project cost was $33,000. K Belgatos Park Playground Upgrades Belgatos Park Playground Upgrades To ensure compliance with safety standards, play structures at Belgatos Park were upgraded. The total project cost was $27,000. L 123 East Main Street Remodeling 123 East Main Street Remodeling Project This project involved remodel of a Town-owned building used by Los Gatos Saratoga Recreation Department. The project included the removal and construction of new interior walls, repairs to the ceiling, new windows and doors, installation of new carpets, and painting. The total project cost was $69,000 fully reimbursed by the Los Gatos Saratoga Recreation Department. PROPOSED COMPLETED CIP PROJECTS FY 2010/11 A-18 M Wood Fiber Replacement at Multiple Park Sites Wood Fiber Replacement at Multiple Park Sites This project involved replacement of wood fiber under play structures at multiple park sites. The total project cost was $20,000.