03 -Transmittal-Completed projects
A - 1
TOWN OF LOS GATOS
CIVIC CENTER
110 E. MAIN STREET
P.O. BOX 949
LOS GATOS, CA 95031
May 21, 2012
Honorable Mayor and Town Council:
I am pleased to submit to you the Proposed FY 2012/13 – 2016/17 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 2012, the Town Council reaffirmed its Core Values and 2012-2014 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. FY 2012/13, the first year of the five-year plan, increases funds for 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 2012/13 by category include:
Street Program Projects:
Blossom Hill Road street improvements, including roadway widening and sidewalk, bicycle lane,
and crosswalk construction between Cherry Blossom and Camino del Cerro.
Highway 9/University Avenue intersection 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, a storm drain
system, and new landscaping.
Almond Grove Street Rehabilitation Project, including the design and first phase of
reconstruction of neighborhood streets after funding has been allocated.
Installation of a new traffic signal at University and Lark avenues and ADA accessible
crosswalks.
University Avenue Resurfacing project, including base repairs, storm drain improvements,
sidewalk and retaining wall construction, and street resurfacing from Shelbourne Way north to
the Vasona Dam.
Funding of approximately $1.1 million for residential street repair and rehabilitation.
Funding of $250,000 for curb, gutter, and sidewalk repairs throughout the Town.
Funding allocation of $100,000 for retaining wall repairs.
$25,000 additional funding for annual street restriping.
Parks Projects:
Completion of Pageant Grounds Landscape Improvements.
Completion of the new Los Gatos Creekside Sports Park.
Construction of a new, ADA compliant pathway and bicycle trail at Live Oak Manor Park.
Public Facilities Projects:
Completion of LEED certification for the new Library.
Conceptual design and improvements for 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 2012/13 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 $27 million. Approximately, $18.6 million is proposed in the first year
of the plan, which is comprised of $14 million in carryover funds from FY 2011/12 and $4.6 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 $27 million of planned capital improvements. The balance of CIP funding of $23 million is
funded by:
Public Improvement Grants funding ($6 million)
Sale of Vasona Land revenue to fund the construction of the Los Gatos Creekside Sports Park
($2.7 million)
Grant Funds ($2.4 million)
Remaining 2002 COP Financing ($42,452)
Traffic Mitigation Funds ($3.6 million)
Storm Drain Funds ($367,000)
Accumulated operating budget savings/excess revenues from the General Fund
The primary source of funding for the Town’s capital program is the Town’s General Fund Appropriated
Reserves (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 $700,000
for FY 2012/13. If current projections hold true, the CIP will continue to receive a transfer from the
General Fund of approximately $750,000 for FY 2013/14 through FY 2016/17. The funding from this
reserve greatly enhances 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 important
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 tax increment reimbursements via the Redevelopment Property Tax Trust Fund (RPTTF), which funds
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 former 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 $42,452) have been carried forward to FY 2012/13 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 $0.75 per square foot of impervious surface created by new development. Depending on
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
CAPITAL IMPROVEMENT PROGRAM
Introduction Section
A - 3
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
typically $15,000 annually. Total cash balances currently on hand from the utility undergrounding
construction tax are approximately $2.4 million at FY 2011/12 year-end. No projects are proposed in
2012/13 through 2016/17.
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 2012-17 CIP OVERVIEW
The Capital Improvement Program is broadly grouped into:
Streets Program, which maintains and ensures functional streets, pedestrian, and bike systems.
Parks 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 $26.7 million, approximately $19.7 million (74%) is allocated to the streets, retaining walls,
sidewalks, and curbs category, $3.2 million (12%) is allocated to park projects and $3.8 million (14%) is
allocated to public facility projects,. Allocations are summarized below by type of major improvements
within the program categories.
Carryfwd to
2012/13 2012/13 2013/14 2014/15 2015/16 2016/17
Total By
Category
Total By
Program
Streets
Reconstruct/Resurfacing 5,143,606 1,331,245 1,327,073 1,327,073 1,327,073 1,327,073
11,783,143
Maintenance & Safety 1,019,455 425,000 435,000 435,000 435,000 435,000
3,184,455
Street Improvements 1,843,199 1,914,666 640,000 174,299 65,000 -
4,637,164
Bridges 123,730 - - - - -
123,730 19,728,492
Parks
Park Improvements 2,703,495 459,535 30,000 - - -
3,193,030
Trail Improvements- - - - - -
- 3,193,030
Public Facilities
Infrastructure Projects 2,937,187 477,000 125,000 - - -
3,539,187
Equipment Projects 223,083 - - - - -
223,083 3,762,270
TOTALS 13,993,756 4,607,446 2,557,073 1,936,372 1,827,073 1,762,073 26,683,793
Five Year CIP Summary
Total funding for street reconstruction and resurfacing for the next five years is planned at $11.8 million
with approximately $5.1 million allocated in FY 2011/12 including carryovers.
Over the five-year period, the CIP proposes $7.9 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
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.
CAPITAL IMPROVEMENT PROGRAM
Introduction Section
A - 4
Although the Proposed FY 2012/13-2016/17 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
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 based on the fiscal situation and evolving priorities.
As discussed earlier, the proposed FY 2012/13 CIP appropriation totals $26.7 million. Of this amount,
$14 million represents carry forward funds available from the prior year. The following schedule lists the
carryforward and new projects by fund and by program for appropriation in FY 2012/13.
GFAR Grants and Gas Tax Other Total
CARRYFORWARD PROJECTS Awards
Streets Street Repair & Resurfacing 526,880$ - - - 526,880$ *
Almond Grove Street Rehabiltation Project 4,000,000 - - 38,280 4,038,280 *
Univ Ave Resurfacing (Shelbourne to Vasona)78,446 500,000 - 578,446 *
Traffic Calming Projects 17,027 - - - 17,027 *
Curb, Gutter & Sidewalk Maintenance 285,855 - - - 285,855 *
Retaining Wall Repairs 688,716 - - - 688,716 *
Annual Street Restriping 27,857 - - - 27,857 *
ADA Upgrades to be allocated- - - - -
Hwy 9/University Intersection- 829,947 - 247,112 1,077,059
Blossom Hill Road Improvements - 200,000 - 215,414 415,414
Wedgewood Ave Improvements- - - 63,726 63,726
Hicks & Philips Culvert Improvements- - - 285,000 285,000
University Avenue Sidewalk / Creekside Sports Park 2,000 - - - 2,000 *
Lark Avenue / Los Gatos Boulevard Restriping Project- - - - -
Quito Road - Bridge Replacement 123,730 123,730
Parks Pageant Grounds Phase 3 Improvements 300,054 - - - 300,054 *
Los Gatos Creekside Sports Park 2,263,475 - - - 2,263,475
Live Oak Manor Park ADA Upgrades 31,990 107,976 - - 139,966
Public Facilities Town Beautification Projects 10,269 - - - 10,269
Library Facility Project 749,489 - - - 749,489
Civic Center Reuse Project 1,869,086 58,344 - - 1,927,430 *
Downtown Improvements 250,000 - - - 250,000
Information System Upgrade 75,175 - - - 75,175
Town-Wide Document Imaging Prj 19,748 - - - 19,748
Audio / Video System Upgrade 58,160 - - - 58,160
Tiburon CAD / RMS Upgrade 70,000 70,000
TOTAL OF CARRYFORWARD PROJECTS 11,447,957$ 1,696,267$ -$ 849,532$ 13,993,756$
NEW PROJECTS
Streets Pavement Rehabilitation - Crack Seal 152,073 - - - 152,073
Hicks/Shannon Guardrail 40,000 - - - 40,000
Winchester Blvd. / Knowles Intersection- - - 530,000 530,000
Northside Parking Lot Improvements 74,516 74,516
224 W. Main Street Property Acquisition (Parking Lot 6)1,200,000 1,200,000
Parks Turf Conversion & Water Conversation 25,000 - - - 25,000
Howe's Play Lot Pathway Improvements- 34,535 - - 34,535- - -
Public Facilities
TOTAL OF NEW PROJECTS 1,491,589$ 34,535$ -$ 530,000$ 2,056,124$
TOTAL OF CARRYFORWARD & NEW PROJECTS 12,939,546$ 1,730,802$ -$ 1,379,532$ 16,049,880$
* These carryforward projects include new money for FY 2012/13 in the amount of $2,551,322
Carryforward & New FY 2012/13 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 74% of the proposed FY 2012/13-2016/17 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
CAPITAL IMPROVEMENT PROGRAM
Introduction Section
A - 5
possible). The Town’s cumulative investment in its streets resulted in raising the PCI from a low of 64 in
2002 to the level of 75 in 2006. The PCI value for Town streets as of Spring 2011 is 71. This value is
primarily driven by the condition of residential streets. The PCI for arterials and collector streets is 80
and 70 respectively.
Potential Funding Sources
As illustrated in the chart below, funding for street repair is based on revenue from two primary sources:
gas tax, and transfers from the General Fund Designated Reserve.
Potential Funding Source Annual Estimated Amount Per Five-Year CIP
Gas Tax Funds $832,290
Transfer from General Fund Designated
Reserve
$700,000
Five-Year CIP Estimated Annual Total $1,532,290
Gas tax revenues ($832,290) and funding from the General Fund Designated Reserves account for the
majority of the $1.5 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 $1.5 million in streets continues to be
available, options to achieve the Town’s 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. The Council has already directed exploration of this potential revenue
sources as part of the 2012-14 Strategic Goals.
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. In addition, staff will present to Council in late 2012 or early 2013 an identification of
existing one-time funding opportunities for potential Council allocation to Almond Grove Street
Rehabilitation, Civic Center Reuse, or other capital project priorities.
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 2012/13 for
finish work and LEED certification. The new Library facility will provide Town residents with 30,000
square feet of space to provide library services.
In addition, the development of a new 2.5 acre sports park, located at 930 University Avenue, is funded
through the proposed FY 2012/13 Capital Budget using the proceeds of the Vasona Land sale. This
facility will provide a large multi-use athletic field that can accommodate several different sports or
activities and is expected to be complete in Fall 2012.
CAPITAL IMPROVEMENT PROGRAM
Introduction Section
A - 6
FY 2011/12 COMPLETED PROJECTS
Several high priority projects are expected to be completed by the end of FY 2011/12. The schedule
below outlines projects, corresponding funding source, and total expense of the completed projects, which
is estimated to be $1.3 million.
Prior Years GFAR Grant and RDA Other *Total
Awards Estimated
Exp Exp Exp Exp Exp
Street Program
University Avenue Guardrail- 171,342 - - - 171,342$
Hwy 9 Phase 111 Design 13,881 14,177 - - - 28,057$
Lark Avenue Traffic Signal Improvements- 402,409 - - - 402,409$
Park Program
Balzer Facility Upgrades- 1,390 - - - 1,390$
OMP Picnic Areas #1 & #2 Renovation- 128,000 - - - 128,000$
Oak Meadow Park Tot Lot Renovation 5,919 18,135 - - - 24,054$
Public Facilities Program
Civic Center Site Improvements 435,087 (100,089) - - 4,707 339,705$
Energy Efficient Lighting Project 1,110 - 161,602 - - 162,712$
Adult Rec Center Roofing Project- 71,336 71,336$
Plaza Bus Shelter Renovation Project- 20,000 20,000$
TOTAL OF COMPLETED PROJECTS 455,996$ 726,699$ 161,602$ - 4,707$ 1,349,004$
* Other Funds include Storm Drain Fund, Gas Tax Funds, Utility Underground Funds and Traffic Mitiagtion Funds.
PROJECTS COMPLETED IN FY 2011/12
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 2006/07 through the current year. The total value of
this investment is approximately $5.3 million. Looking into the future, the proposed CIP includes
approximately $14.9 million of additional street or intersection improvements over the next five years.
Expenses & Funding Source
Expended
2006/07
thru
2011/12
Estimated
Carryforward to
2012/13
New Funding
2012/13
thru
2016/17
Total Funding
2012/13
thru
2016/17
GFAR 1,580,760$ 4,650,210$ 3,560,365$ 8,210,575$
Traffic Mitigation 142,581 526,252 1,204,299 1,730,551$
Gas Tax 2,739,390 - 3,250,000 3,250,000$
RDA 41,720 38,280 4,172 42,452$
Grants 829,947 829,947 500,000 1,329,947$
Storm Drains 17,180 285,000 65,000 350,000$
TOTAL 5,351,578$ 6,329,689$ 8,583,836$ 14,913,525$
CAPITAL IMPROVEMENT PROGRAM
Introduction Section
A - 7
Included with the $14.9 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 of Bachman Avenue between University and North Santa Cruz Avenue
Reconstruction of Royce Street 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, near Highway 85
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 along University Avenue, Cleland
Avenue, Wooded View Drive, Kimble Avenue, and adjacent to 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,
Lark /University, 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
Short Road
Bella Vista
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
Renovation of Picnic Area 1 & 2 at Oak Meadow Park
Safety enhancements to the decorative interactive 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 2012/13 – 2016/17 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 2012/13 – 2016/17
CAPITAL IMPROVEMENT PROGRAM
BUDGET ADDENDUM
The Council’s adoption of the Capital Improvement Program 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 Programs.
This budget addendum section, which follows the proposed budget’s Transmittal Letter, conveys Council
directed revisions to the proposed budget as determined in the May 2012 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 2012/13 – 2016/17 Capital Improvement Program.
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 Program (CIP) for the
Town of Los Gatos and the Successor Agency of
the Town of 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 Program 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 new library, Adult
Recreation Center, Service Center, Tait Avenue
and Forbes Mill Museums, and partial service to
the Recreation Center, which is a Town-owned
building leased to Los Gatos-Saratoga
Community Education and Recreation.
Although the Town owns the three fire stations
within town limits, the Santa Clara County Fire
District maintains them under contract.
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 Successor Agency of the
Town of Los Gatos 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 Successor
Agency 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 five 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 Program 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
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 2011
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 2012-17 Capital
Improvement Program. 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 2012/13 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 25, 2012.
The CIP is reviewed during this time to
determine funding capabilities and 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
Program 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 Program 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.
COMPLETED CIP PROJECTS
FY 2011/12
A-13
L
O
S
G
A
T
O
S
-
S
A
R
A
T
O
G
A
R
D
LOS GATOS BLVD
E M AI N S T
HWY 17
H W Y 17
N SANTA CRUZ AV
WINCHESTE R BLVD
B
LOSSOM
HILL
RD
L O S G A TOS BLVD
H
W
Y 85
KENNEDY RD
SHANNON RD
L
A
R
K A
V
UNIVERSITY AV
WEDGEWOOD
P O L L A R D R D
D
C
"E" WAS A TOWN-WIDE PROJECT
F
B
A
G
PROJECT LOCATIONS
A University Avenue Guardrail E Energy Efficient Lighting Project
B Hwy 9 Phase III Design F Oak Meadow Park Picnic Areas 1 & 2 Renovation
C Lark Avenue Traffic Signal Improvements G Adult Recreation Center Roofing Project
D Plaza Bus Shelter Renovation Project
COMPLETED CIP PROJECTS
FY 2011/12
A-14
A University Avenue Guardrail
University Avenue Guardrail
This project included removal and replacement of an old
metal beam guard railing on University Avenue along
Vasona Lake up to the entrance of the new Los Gatos
Creekside Sports Park. The new guardrail is compliant with
State safety standards.
The total project cost was $171,300.
B Hwy 9 Phase III Design
Highway 9 Phase III
This project installed bicycle loop detectors on Highway 9 at
the Santa Cruz Avenue and University Avenue intersections.
A new bike lane and retaining wall will also be constructed
on Highway 9 and Los Gatos Boulevard intersection.
This project was partially funded by State Grants. The Los
Gatos portion of the project cost was $27,000.
C Lark Avenue Traffic Signal Improvements
Lark Avenue Traffic Signal Improvements
This project included a traffic engineering study to examine
the vehicular traffic movements at Lark Avenue from
Winchester Boulevard to Charter Oaks Drive. It also
included the design and construction of a new traffic signal
system at the Lark/University intersection.
The total project cost was $402,000.
COMPLETED CIP PROJECTS
FY 2011/12
A-15
D Plaza Bus Shelter Renovation Project
Plaza Bus Shelter Renovation Project
This project repaired the Town Plaza bus shelter roof and
added an electrical outlet to enhance access for the Town
Plaza Park Holiday Tree Lighting and other special events.
The total project cost was $20,000.
E Energy Efficient Lighting Project
Energy Efficient Lighting Project
This project replaced old outdoor lighting at Town parking
lots and parks with energy efficient induction and LED
lighting. A total of 176 energy efficient lighting fixtures and
bulbs were installed in 16 different Town-owned parking lots
and parks.
The total project cost was $163,000.
F Oak Meadow Park Picnic Areas #1 & #2 Renovation
Oak Meadow Park Picnic Areas #1 & #2 Renovation
This project involved the replacement of a concrete deck and
repair of a retaining wall in picnic areas 1 and 2.
Surrounding fences, benches, and barbeque pits were also
repaired and/or replaced.
The total project cost was $128,000.
COMPLETED CIP PROJECTS
FY 2011/12
A-16
G. Oak Meadow Park ADA Pathway Access Upgrades
Adult Recreation Center Roofing Project
This project involved replacing the roof at the Adult
Recreation Center. The existing roof was aging and in need
of replacement.
The total project cost was $80,000.