03 - Transmittal&CIP Projects CombinedProposed
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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.
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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
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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
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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.
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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
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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 $15.9 million of additional street or intersection improvements over the next five years.
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Expenses & Funding Source
Expended
2005/06
thru
2010/11
Estimated
Carryforward to
2011/12
New Funding
2011/12
thru
2015/16
Total Funding
2011/12
thru
2015/16
GFAR1,756,342$ 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)
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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
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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.
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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
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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.