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CC 2024-04-23_12a CIP Considerations Presentation Consideration of the 5-Year Capital Improvement Program Budget and 5-Year Measure O 2006 Sales Tax Fund Expenditure Program 4/23/24 1 Background 5-year Capital Improvement Program Budget Allows for long-term capital and financial planning – FY 2024-25 through FY 2028-29 Accommodates multi-year projects 5-year Measure O 2006 Sales Tax Fund Expenditures Provides for both operating and capital needs All proposed expenditures in both programs are reviewed/prioritized annually every budget cycle 8/21/2024 2 Approach to Analysis and Prioritization of CIP CIP consideration factors include: Safety Community benefit Funding source Funding schedule - i.e., timeframe for completion before external funding expires Staff Capacity Urgency - consideration of deferred maintenance costs and/or end of useful life Number of Projects per department - i.e., water, streets, parks, fire, police etc. 8/21/2024 3 30+Unfunded CIP projects 8/21/2024 4 City’s Capacity to Complete CIP 8/21/2024 5 Projects Completed this Year Fair Oaks Waterline Replacement Permanent Parklets Program Lift Station #3 Stabilization Arroyo Grande Creek Debris Removal 2022 Pavement Management Project 2023 Concrete Repairs Project 191 Tally Ho Frontage Improvements Station 1 Generator Replacement Trenchless Sewer Rehabilitation Community Safety Camera Network 8/21/2024 6 Projects Completed this Year These multiyear CIPs completed major milestones during FY 2023-24: Swinging Bridge - construction begins in May 2024 2024 Street Repairs - in final design phase Traffic Way Bridge - in final design and right-of-way acquisition phase 8/21/2024 7 Projects Completed this Year 8/21/2024 10 projects completed this year (2023-24) Highlights include: Parklet regulations and installation Replacement of tile sidewalk bands This is a before and after overview of the West Branch dig out repairs. 8 Projects Completed this Year Large-scale Pavement Management Program 3.6 miles dig out/overlay treatments - 8.3 miles of slurry seal 8/21/2024 Equestrian Way dig out&overlay treatment 9 Projects Completed this Year Arroyo Grande Creek Debris Removal at several creek segments 8/21/2024 BEFORE AFTER 10 Projects Completed this Year Sediment removal at Tally Ho Creek 8/21/2024 BEFORE AFTER 11 Funding $46.7 million over the 5-year period $18.6 million in FY 2024-25 Mid-Cycle Budget Update Large reliance on grant funding, debt financing, and Measure O 2006 Sales Tax Fund, $10.7 million over the 5-year period Continue focus on maintaining current assets and infrastructure 8/21/2024 12 Funding Sources 8/21/2024 13 5-Year Capital Improvement Projects by Function 8/21/2024 14 Measure O 2006 Sales Tax Fund Proposed 5-year plan includes: $1.9 million for Transportation projects - Fair Oaks/Orchard Road Intersection Improvements and Traffic Way Bridge $5.6 million for Streets Improvements $814,000 for Storm drainage improvements $6.8 million for Continued funding for public safety enhancements $2.4 million for projects improving City Facilities 8/21/2024 15 American Rescue Plan Act (ARPA) Funding Re-allocation The City of Arroyo Grande received $4,300,241 in ARPA funds. Interim Final Rule stated - recipients may use funds for 5 specific allowable uses and a list of 3 ineligible expenditures. The Final Rule was issued and went into effect on April 1, 2022 and included a few major changes. 8/21/2024 16 ARPA Funding Re-allocation Continued 8/21/2024 17 ARPA Funding Re-allocation Continued 8/21/2024 ARPA Funded Projects: 18 Major Projects For the proposed 5-Year CIP: Public Safety Video Cameras - $546,500 Traffic Way Bridge improvements - $13.8 million $12.2 million from Highway Bridge Program, $1.6 million from Measure O 2006 Sales Tax Fund Halcyon Road Complete Streets – $7.9 million Pavement Management Program (over 5 years) - $10.3 million Sewer & Water infrastructure (over 5 years) - $4.1 million Mark M. Millis Community Center - $6 million 8/21/2024 19 Major Multiyear Projects Highlights include: Swinging Bridge Retrofit – construction begins in May 2024 8/21/2024 20 Major Projects Traffic Way Bridge Replacement Pavement Management Plan Scheduled construction start: April 2025 - FY 2024-25 budget $5 million Estimated completion: December 2025 - FY 2025-26 through 2028-29 estimated budgets of $1.5 million annually 8/21/2024 21 Major Projects 2024 Pavement Management Project $5million budget Still under design 8/21/2024 Trenchless Sewer Lining Cemetery area and under Hwy 101 22 Council Action Requested Provide direction on the proposed 5-year Capital Improvement Program Budget and the 5-year Measure O 2006 Sales Tax Fund Expenditure Program Both programs will be brought to the City Council for review and adoption along with the Mid-Cycle Budget Update in June 8/21/2024 23 8/21/2024 Questions? 24 ARPA Funding Re-allocation Continued Broader set of uses available to respond to the pandemic’s public health and economic impacts Major simplification of the revenue loss use, including an allowance for local governments to utilize a standard presumption of at least $10 million in revenue losses Greater flexibility in eligible broadband investments and addition of numerous eligible water and sewer infrastructure investments More streamlined options to provide premium pay 8/21/2024 25 ARPA Funding Re-allocation Continued Timeline and Reporting Requirements: December 31, 2024, to commit ARPA funds December 31, 2026, deadline to spend these monies 8/21/2024 26 Projects Completed this Year Trenchless Sewer Repair: Cemetery area and under Hwy 101 8/21/2024 Before After 27