HomeMy WebLinkAboutCapital Improvement Program 1988 CITY OF SAN BERNARDINO
CAPITAL IMPROVEMENT PROGRAM COMMITTEE
March , 1988
Roger G. Hardgrave......Director of Public Works/City Engineer
Ray Schweitzer. . . . City Administrator
Warren Knudson. . . . . . Finance Director
Craig Graves . . . . . . . City Treasurer
Annie Ramos. . . .Director of Parks, Recreation and Community
Services
Don Burnett. . . . . . . . . Police Chief
Gerry Newcombe . . . . . . Fire Chief
Steve Whitney. . . . . . .City Librarian
Ken Henderson. . . . . . .Director of Community Development
Glenda Saul . . . . . . . . . Executive Director, RDA
Wayne Overstreet. . . . Public Buildings Superintendent
Manuel Moreno. . . . . . .Director of Public Services
Harrel Moseley. . . . . .Civil Engineering Associate
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C I T Y O F S A N B E R N A R D I N 0
INTEROFFICE MEMORANDUM
TO : THE HONORABLE MAYOR AND MEMBERS OF THE
COMMON COUNCIL
FROM : ROGER G. HARDGRAVE , Director of Public Works/
City Engineer
SUBJECT: Five Year Capital Improvement Program --
1987-88 to 1991-92 Fiscal Year
DATE : March 8 , 1988
COPIES : FILE NO . 9 .021
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The first Capital Improvement Program ( CIP ) for the City of San
Bernardino was developed in 1975-76 . A new CIP has been prepared
during most of the intervening fiscal years, and the following
program is a continuation of that practice.
The basic purpose of the CIP is to provide a generally agreed upon
course of action for meeting anticipated future capital improve-
ment needs of the community. Since there are more needs than
available funds , priorities must be established and the projects
programmed in accordance with identified sources of funding.
Projects included in the CIP are those for which there is a reason-
able expectation the indicated funds will actually be available
during the listed year. The first year lists projects included
in the 1987/88 Budget. The subsequent four years represent anti -
cipated funding. Planning and coordination efforts of involved
City Departments is greatly enhanced by having a program of pro-
posed capital improvement projects .
It should be emphasized that the CIP is a guideline, and not a
commitment. Priorities and funding levels are subject to change ,
which necessitates an annual review of the programs and revisions
as deemed appropriate.
The Capital Improvement Program proposed for 1987-88 to 1991-92
represents the expenditure of $77 ,258 , 085 . Projects are grouped
in the following categories :
1 . General Buildings
2 . Street & Street Lighting
3. Sewers
4 . Storm Drains
5 . Traffic Controls
6 . Parks and Recreation
7 . Recreational Field Lighting
Mayor and Common Council
Five Year CIP
Page - 2 -
Scheduling of capital improvement projects is a policy decision of
the Mayor and Common Council . There may be an inclination on the
part of the Mayor and Members of the Common Council to adjust some
priorities. A workshop session has been scheduled with the Mayor
and Common Council , and the Capital Improvement Program Committee
on 3-21-88 to review the following listed projects and indicate any
desired adjustments .
Section 65101 of the California Government Code provides that one
of the functions of a local planning agency is to periodically re-
view the Capital Improvement Program to ensure compliance with the
General Plan. Copies of the prepared CIP have been provided to the
Planning Department, for review by the Planning Commission .
One added feature in this program is the indication of additional
operating costs that will be incurred as a result of the proposed
project. These costs are listed under the Division that will be
incurring the costs , and broken down to - number of additional
personnel , their salary cost, and Material , Services & Supplies
costs . Only additional costs are shown, which means that if the
project is a replacement in kind, no amount is listed. Costs shown
are not necessarily for the first year, since much of the equipment
will be under warrants.
Also shown are Tables 1 and 2 . Table 1 shows summary of expendi -
tures by year and category. Table 2 shows summary of additional
personnel and additional annual costs that will be incurred as a
result of the proposed Capital Improvement Program.
There is the possibility that a new State law , to go into effect
on 1-01-89 , will require a local agency to have an adopted program
in order to collect development fees . This law is being researched
by the City Attorney ' s office.
It is the intention of the Capital Improvement Program Committee
to have the final CIP adopted by the Mayor and Common Council .
Please advise if you have any questions .
ROGER G . HARDGRAVE
Director of Public Works/City Engineer
RGH ; rs
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INTRODUCTION
The City of San Bernardino ' s Capital Improvement Program was developed to
enable the coordinated and systematic programming of needed public improve-
ments. In prior years, Capital Improvements in San Bernardino lhaVerbeen
fragmented and decided upon in the absence of any long-range
plan . Many of the larger City departments have their own form of Capital
Improvement programming resulting from the scheduling of improvements for
which they are responsible. Foremost among these departments has been the
program prepared by the Department of Public Works , setting forth Capital
Improvement plans for streets, sewers, traffic controls and storm drains .
The Capital Improvement Program must be formulated on a realistic basis and
within the financial capabilities of the City. Since the City does not
have enough money to do all the things it would like , it is necessary to
carefully analyze the manner in which funds are programmed for improve-
ments . Fiscal analysis , aimed at minimizing the impact of projects on
local resources, is a significant element of the Program.
In planning for long-term Capital Improvements , it is necessary to analyze
the impact of each individual project on the operating budget. All capital
projects entail some operating and maintenance costs ( staff and/or equip-
ment) which will have to be carried as an on-going expense in future opera-
ting budgets . In the final analysis , the continuing operational costs must
be weighed against the public benefit to be received and the operational
savings from the replacement of substandard facilities ( such as water and
sewer mains ) .
Programming can reflect considerable savings through purchasing land and/or
materials in advance of actual need, at a time favorable to the City rather
than at the last moment. Pre-planning enables the City to take advantage
of favorable interest rates and other financing which may become available .
The impact and economic advantages of long- term City- programming also
affect the private sector. Private uti 1 i ties , developers , and other
investors are informed regarding the City ' s construction timetable and are
able to plan their developments accordingly .
The development of the Capital Improvement Program has had some significant
spin-off advantages for San Bernardino . With the advent of the Housing and
Community Development Act of 1914 , an increasing need for comprehensive
programming became evident. Job-ready plans , or planning , reduce the prep-
aration time when unexpected sources of funding become available . In order
for the City to be eligible for such Federal funding , the required Annual
Application to HUD must contain , among other things :
1 ) A three-year plan which. identifies community development
needs and objectives developed in accordance with area-
wide development planning and national urban growth policies
and which demonstrates a comprehensive strategy for meeting
those needs.
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2) Formulation of a program which :
includes activities to meet community development needs
and objectives ; and
indicates resources , other than assistance under the
Act, expected to be available to meet such needs and
objectives .
In summary , the Cap taI Improvement Program is designed to
provide a centralized and comprehensive mechanism for:
Forecasting and defining capital needs
Assigning priorities among capital projects
Budgeting projects in accordance with their priorities
and developing a projected revenue program for financing
improvements .
Scheduling the various projects on a fixed-time basis and
providing for appropriate planning implementation .
Coordinating the activities of the various departments in
meeting project schedules.
Monitoring and evaluating the progress of capital
projects.
Informing the general public and private developers of pro-
jected capital improvements .
D E F I N I T I O N S
CAPITAL IMPROVEMENT PROGRAM
A long-range schedule of proposed projects with their estimated costs and
sources of funding , normally projected over a 5-year period . The program
is composed of fiscal year increments and must be reviewed and updated
annually for the purpose of confirming or reorganizing projects to reflect
current year priorities , thereby determining the extent of the capital
improvements to be included in the coming year ' s budget.
CAPITAL IMPROVEMENT PROJECT
Any major non-recurring expenditure for physical facilities such as the c
of acquiring land or interest in land ; construction of buildings or other
structures , including additions or major alterations ; construction or re-
habilitation of streets or utility lines ; fi.xed equipment ; landscaping and
similar expenditures , including associated planning and design work relate
directly to an i ndi vi dual project, A Capital Improvement project has
useful life of five ( 5 ) years or more , and generally will cost more than
$50 ,000 .
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CAPITAL IMPROVEMENT BUDGET
r That portion of the annual budget encompassing the Capital Improvement
Projects to be funded that year. The Capital Improvement Budget serves as
the first year of the Capital Improvement Program.
OPERATING BUDGET
That portion of the annual budget covering expenditures for personnel ,
materials, services, supplies and small equipment.
DEFERRED PROJECTS
Projects considered for Capital Improvement funding but not scheduled for
development within the time-span of the current Capital Improvement Pro-
gram. These are meritorious projects which , for one or more reasons ,
( financial , requiring precedent action by other agencies, having a lower
priority , etc. ) cannot be accommodated during the subject program period .
The primary reason is no identified funding source .
FUTURE FINANCIAL TRENDS
Projection of financial trends , such as rate of inflation , interest, etc .
is difficult due to the many unpredictable factors . For this reason, all
costs are in 1987-88 dollars . The estimated costs will need to be up-
dated during the annual review of the program.
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POTENTIAL SOURCES OF FUNDING
The City' s General Fund is limited and cannot be relied upon to
finance all Capital Improvement Projects . A number of other sources ,
however, can be tapped to complete the high priority items . These in-
clude:
1 . Redevelopment Agency .
2 . Joint Powers Authority Bonds .
3 . Housing and Community Development Act of 1974 ( as amended ) .
4 . Parking and Business Improvement Fund.
5 . Sewer line Construction Fund ( 45 ) .
6 . Public Safety Authority .
7 . Underground Utilities - PUC Rule No . 20 .
8 . State Gasoline Tax.
9 . State Grade Crossing Fund.
10. State 325 Funding.
11 . Federal -Aid Highway Act ( FAU ) .
12 . Urban Park and Recreation Recovery Act.
13 . Land and Water Conservation Fund .
14 . Park Extension and Development Fund.
15 . Park Development Fee Fund .
16 . Local Drainage Facilities Fund ( 48 ) .
17 . Lease Purchase Financing .
18 . State Park Bond Act Funds .
19 . Special Assessment Districts .
20 . Loans to RDA.
21 . Library Services and Construction Act ( LSCA ) .
22 . Revenue Bonds .
23 . General Obligation Bonds .
24 . Enterprise Funds .
25 . Donations .
26 . County Funds .
27 . Parking Program.
28 . Highway Bridge Rehabilitation & Replacement ( HBRR ) Funds
29 . High Hazard Elimination Safety Funds ( HHES ) .
30 . Section 203 Federal -Aid Grade Crossing Funds
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The above sources of funding have limitations , which must be
recognized :
1 . Redevelopment Agency
1 Bonds may be issued by the Redevelopment Agency to construct capital
improvements within designated redevelopment project areas.
2 . Joint Powers Authority Bonds
Bonds for certain Capital Improvements could be obtained through
either Joint Powers agreement with the Public Safety Authority ,
or the Civic Center Authority . Utilization of this medium would
commit the City to annual lease payments for the amortization of
the Capital Improvement costs involved.
3. Housing and Community Development Act of 1974 , as Amended
1 The primary objective of this program is to develop viable urban
communities by providing decent housing, a suitable living environ-
ment and expanding economic opportunities , principally for persons
of low and moderate income. This may be achieved through the elim-
ination of slums , blight and detrimental living conditions ; conser-
vation and expansion of housing stock ; improved public services
and improved use of land.
I The 1983 amendments remove all previous restrictions on parks ,
playgrounds , flood and drainage, parking, fire protections and
solid waste disposal . All public facilities , except for "build-
ings for the general conduct of government" ( i .e . City Halls ) are
now eligible without restrictions .
4 . Parking and Business Improvement Fund
Monies for this fund are derived from a business license tax
imposed upon business conducted within the downtown area . The
tax is the equivalent of the amount of the business license fee .
The revenues collected are deposited in the General Fund and are
transferred from the General Fund to the Parking & Business
Improvement Fund. Revenue from this sources is to be used
principally for the improvement of off-street parking in
the central business district. However, other expenditures are
also eligible .
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5 . Sewer Line Construction Fund ( 245 )
Monies derived from sewer connection fees and a portion of the
monthly sewer service charge. These funds are used to extend the
City ' s sewer system into unsewered areas and construct relief line
for reaches that are overloaded.
6 . Public Safety Authority
Monies remain in the Sewage Treatment Plant Construction Fund
( excess Eond funds ) as a result of more money than anticipated
being received from the Federal Environmental Protection Agency
and State Water Resources Control Board. These funds can be used
for construction and/or alteration of facilities at the sewage
treatment plant.
7 . Underground Utility District _ PUC Rule No . 20
Rule No. 20 of the Public Utilities Commission requires Edison to
set aside a certain percentage of their revenues to finance the
cost of undergrounding their facilities, within districts designa-
ted by the City. Other utility companies , such as telephone and
cable television , have to finance the cost of placing their facil -
ities underground. About $300 ,000 is set aside per year by Edison
for undergrounding their facilities.
8 . State Gasoline Tax
About $ 1 . 75 million is received by the City each year, as their
share of the state taxes on gasoline . It has been the practice for
the past several years to transfer this entire amount to the
General Fund to help offset costs for maintenance of streets .
Therefore , none of the State Gasoline Taxes received by the City
is available for capital improvement projects .
9 . State Grade Crossing Fund
An amount of $ 15 million is allocated each year to the State
Grade Crossing Fund for the purpose of eliminating existing, or
proposed railroad grade crossings . These funds are allocated , to
the extent funds are available, to projects on the annual priority
list established by the Public Utilities Commission for projects
nominated by the California Department of Transportation and
eligible local agencies . Grade Crossing funds are normally pro-
vided to finance 80% of the cost for separating existing grade
crossings , with the remaining 20% shared equally by the railroad
and nominating agency . On new grade crossings, the cost is
normally borne equally by the Grade Crossing Fund and the nom-
inating agency, with no participation by the railroad.
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10 . Senate Bill 325 Funds ( SB 325 ) :
This bill provides funds for public transportation , but in the case
of rural counties, until the transit demand is high enough to re-
quire all the funds , the residue is given to cities for street
maintenance and/or construction . Normally, all of the money is
1 committed to OMNITRANS , Dial-A-Lift. The current transit budget
demands are such that it is not completely required, thus we are
able to utilize it for matching FAU funds .
11 . Federal -Aid Highway Act ( FAU )
The new Federal Aid Highway Act extended the Federal -Aid Urban
Program for another four years to 9-30-90 . Under this program, the
City will receive about $3 , 691 ,072 during the four years covered by
the Act. These funds are restricted to construction by contract on
Federal -Aid Urban Routes .
12 . Urban Park and Recreation Recovery Act
This Act seeks to restore facilities which have fallen into dis-
repair ; to encourage innovation in recreation programming ; to
stimulate and support local recreation system maintenance and
recovery ; and to improve the management and delivery of recrea-
tional services for urban residents . Funding for projects under
this Act requires local matching funds : Federal 70% . .City 30%
13 . Land and Water Conservation Fund
The purpose of this State fund is for acquisition and/or develop-
ment of basic outdoor park and recreational needs, with an em-
phasis on meeting region-wide requirements . Projects must appear
in the Parks and Recreation Element of the local General Plan and
must conform to the State outdoor recreational plan . The basis
for funding is a 50-50 match .
14 . Park Extension and Development Fund
This fund was created to assist with the Extension and Develop-
ment of San Bernardino ' s park system and for the construction
and reconstruction of recreational facilities . These funds may
be used for the acquisition of land , construction and furnishing
of buildings, installation of equipment, etc . Funding shall be
at least four cents tax per one hundred dollars assessed valuation .
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15. Park Development Fee Fund
This fund, established by the Mayor and Council in 1978 through
City Ordinance No . 3714, provides funds for the acquisition and
development of parks and recreational facilities through the
levying of a fee of 1 /2 of 1% of the cost of a single family
structure , or $175 , whichever is greater, and of 1/4 of 1% of the
total cost of apartments, condominiums and mobile homes of $125 ,
whichever is greater.
16. Storm Drain Construction Fund ( 248 )
New developments are required to pay a fee based upon area for
construction of storm drains. About $200 ,000 per year is
collected per year in fees .
17 . Lease Purchase Financing
This method is sometimes referred to as the "pay-as-you-use"
method. It allows for the expenditure to be made up front and
then payments ( plus interest) to be paid as you utilize the
capital improvement.
Some current examples of capital improvements paid for by this
method are City Hall , Cental Fire Station and the new Library .
18 . State Bond Act Funds
This Act is proposed by the State Legislature to aid municipali -
ties in the acquisition and development of Community parks . This
measure will be on the November, 1988 , ballot.
19 . Special Assessment Districts
Special assessment district can be formed to place a property ' s
proportionate share of the cost for construction of public works
improvements . In order for a property to be assessed, it must
receive a special benefit from installation of the improvements .
Districts can be established under the 1911 Act, 1913 Act or City
Municipal Code.
20 . Loans to RDA
Monies borrowed by RDA to finance capital improvement project.
21 . Library Services and Construction Act
Title II of this act offers construction funds for public
libraries allocated through the California State Library
for a percentage match toward the total cost of projects .
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22 . Revenue Bonds
Bonds whose debt service payments are financed by charges
placed exclusively on users. These charges are termed user
charges and may include service charges tolls, special taxes ,
admission fees, leases and rents . Revenue bonds are similar
to bonds issued by private enterprises .
23 . General Obligation Bonds ( G . 0 . Bonds ) :
Bonds whose debt service payments are financed by the taxpayers
as a whole. They are secured unconditionally by the " full
faith and credit" ( taxing power ) of the issuing government.
These bonds receive the most favorable rate.
24 . Enterprise Funds
Formerly termed Utility Funds . Now covers all types of govern-
ment user fees ( such as parking , transit, refuse, water, sewer ,
parks and recreation , etc . . ) Charges are based upon the cost of
providing the public services involved.
25 . Donations
Funds derived from individuals or corporations usually in order
to get a tax write-off. Normally, these funds are received in a
trust fund. These funds are usually restricted to specific
projects.
26 . County Funds :
Funds received from the County . Usually these funds are ear-
marked for a specific project. These will also be the County ' s
share of the Joint Powers Authority projects in the downtown
area.
27 . Paid Parking Program
In order to alleviate the impending parking shortfall , it has
been proposed that a fee be charged for all day parking in the
Central City Parking District. Funds collected under this pro-
gram would be used to develop additional parking facilities for
employees in the downtown area .
28 . Highway Bridge Rehabilitation and Replacement Program ( HBRR )
Funds are provided under this program to finance 80% of the cost
of rehabilitating or replacing bridges that are sufficiently
deteriorated to receive a priority within the funding range .
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29 . High Hazard Elimination Safety Funds ( HHES )
Projects with high accident rates are nominated to Caltrans .
Those with a sufficiently high priority are designated to receive
funds to finance 90% of the project cost.
30 . Section 203 Federal -Aid Grade Crossing Funds
Funds are provided under Section 203 of the Fededral -Aid Highway
Act to finance 90% of the cost of adding or upgrading crossing
protection devices at grade crossing on a priority list estab-
lished by the railroad. These funds cannot be used to finance
the cost for widening a crossing, which means that these costs
have to be borne by the City .
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CITY OF SAN BERNARDINO
CAPITAL IMPROVEMENT PROGRAM
SUMMARY OF 1986-87 PROJECTS
GENERAL BUILDINGS
Contract
No. Project Funding Cost
None
STREETS AND STREET LIGHTING
Contract
No. Project Funding Cost
1 . Widening 2nd Street from Street Construc- $ 88 , 259
I-215 Freeway to"G " St. tion Fund
2 . Cul -de-sac at Piedmont $ 254 ,980
and Victoria Avenue
3 . Pavement Rehabilitation of $ 100 , 091
40th Street between
Kendall Drive & Electric
4 . Street Lighting from Sierra Community Develop- $ 154 , 780
Way to Waterman Avenue and ment
3rd Street to 5th Street
5 . Bus Stop Renovation at Federal -Aid Urban $ 103 , 156
9 Locations
Parks and Recreation
Contract
No. Project Funding Cost
6 . Seccombe Lake - Phase I -A Special State $ 943 , 500
Legislation
7 . Delmann Heights Community Community Develop- $ 32 , 132
Center Running Track/ ment
Football Field
8 . John Fiscalini Field , Industrial Bonds $ 229 ,000
Perris Hill Park ,
Bleacher Additions
and Alterations
9 . Restroom/Concession/ Community Develop- $ 126 , 173
Storage Building at ment
Del Vallejo School
Park
10 . Resurface Perris Hill General Fund $ 59 , 533
Parking Lot
11 . Upgrade Ballfield Light- Industrial Bonds $ 71 ,880
ing at Fiscalini Field,
Perris Hill Park
12 . Clubhouse Building for Industrial Bonds $ 172 ,405
Fiscalini Ballfield,
Perris Hill Park
Storms Drains
No. Project Funding Cost Contract
13 . Storm Drain between Storm Drain Con- $ 239 , 952
Citrus Street and struction Fund
Mirada Road , East of
Victoria Avenue
TOTAL 2 , 5 41
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CITY OF SAN BERNARDINO
CAPITAL IMPROVEMENT PROGRAM
' 1987-88 to 1991-92
SUMMARY OF PROPOSED EXPENDITURES
CATEGORY TOTALS
I GENERAL BUILDINGS $ 26 ,423 ,059
' II STREETS & STREET LIGHTING 29 ,714 , 174
III SEWERS 3 ,281 ,050
IV STORM DRAINS 3 ,616 , 150
1 V TRAFFIC CONTROLS 2 ,862 , 100
VI PARK & RECREATION 10 ,898 , 952
VII RECREATIONAL FIELD LIGHTING 462 , 600
GRAND TOTAL $ (77 ,258 ,08 ,
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