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CONSIDERATION OF AMENDING THE CAPITAL IMPROVEMENT PROGRAM BUDGET; AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN; AND MAKING VARIOUS AMENDMENTS TO THE OPERATING AND CIP PROGRAM BUDGETS
RESOLUTION NO. 2017-174 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 2017-18 CAPITAL IMPROVEMENT PROGRAM BUDGET BY ESTABLISHING NEW CIP PROJECTS, “CITYWIDE NETWORK REPLACEMENT (MEASURE P)” (GG236) AND “CITYWIDE TELECOMMUNICATIONS (MEASURE P)” (GG237); AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN TO INCLUDE SAID PROJECTS; AND MAKING VARIOUS AMENDMENTS TO THE FY 2017-18 OPERATING AND CIP PROGRAM BUDGETS TO APPROPRIATE FUNDS FOR ELIGIBLE MEASURE P SALES TAX EXPENSES (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
On November 8, 2016, Chula Vista voters approved Measure P, authorizing a one-half cent sales tax increase on retail sales within the City for a period of ten (10) years to repair failed or failing assets thorough out the city. On June 6, 2017, by Resolution 2017-089, City Council approved the issuance of Bonds by the Chula Vista Municipal Financing Authority (Authority) to fund approximately $71,000,000 in Measure P projects. This amount exceeds the adopted budget approved for the FY 2017-18 Operating and Capital Improvement Programs. Staff requests (1) creating new capital improvement projects “Citywide Network Replacement (Measure P)” (GG237) and Citywide Telecommunications (Measure P)” (GG237), (2) amending the Infrastructure, Facilities, and Equipment Expenditure Plan to include said projects, and (3) amending the FY 2017-18 Operating and Capital Improvement Program budgets to add the additional Bond proceeds to the amended Infrastructure, Facilities and Equipment Expenditure Plan, accelerating the repair of critical assets.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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BOARD/COMMISSION RECOMMENDATION
At the Citizens’ Oversight Committee (COC) meeting held on July 27, 2017, City staff presented the amended Infrastructure, Facilities and Equipment Expenditure Plan which reflected year-to-date allocations and highlighted the Information Technology programs. This plan included the proposed allocation of the additional $18.7 million of bond proceeds that had not been included in Measure P projects in the FY 2017-18 Adopted City Budget. The COC provided input and provided consent on the amended plan and proposed allocations and recommended it be taken to the City Council for approval.
DISCUSSION
The City Council adopted an Infrastructure, Facilities and Equipment Expenditure Plan (Plan) on December 6, 2016, relating to the expenditure of the Measure P Sales Tax. The amended Plan (see Attachments A and B) adds the Citywide Network Replacement and Telecommunications projects separately to improve monitoring and accountability. On June 6, 2017, City Council approved the issuance of Bonds to fund approximately $71,000,000 in Measure P projects. This amount represents an increase of $18,685,973 from the original amount approved in the FY 2017-18 Adopted Operating and Capital Improvement Program Budgets. At this time, staff is requesting that the increased funding be appropriated, as summarized in the table below, to projects that were included in the FY 2017-18 CIP budget or derived from the amended Plan.
Many of the projects are currently in the early design stages. Attachment C provides a summarized list of current and future projects based upon the amended expenditure plan as well as targeted completion dates. Additionally, the proposed allocation will allow accelerating delivery of projects that include efficiencies to reduce future utility costs (energy, water, etc.) in the project scope. The utility efficiency scope is generally lighting, irrigation and Heating Ventilation & Air Conditioning (HVAC) related and is included in the projects associated with police facility repairs, sports courts and fields, park infrastructure, recreation and senior centers, libraries, and other public buildings repairs.
The projects and work associated with these budget adjustments is generally summarized as follows:
Various City Building Facilities.
Complete a general renovation of identified facility assets including: roof replacements or repairs, plumbing repairs or replacements, bathroom upgrades and/or renovations, repair or replace HVAC systems, flooring repairs or replacements, repainting or resurfacing (interior and exterior), and make electrical repairs and lighting efficiencies. All work will strive to meet water and energy efficiency goals and repair critical assets.
Sports Courts & Fields.
Improve field conditions and upgrade the irrigation systems to a smart system allowing for efficient and effective water use. Field work includes: renovating, re-seeding, aerating, fertilizing, and in some cases replacing sod. In addition to the fields, many of the sports courts (tennis, basketball, etc.) throughout parks are in need of a variety of repairs. All work will strive to meet water and energy efficiency goals and repair critical assets.
Park Infrastructure.
Repair or replace park assets that have failed or reached the end of their life cycle including: smart irrigation systems, play structures, playground surfacing, barbeque grills, tables, benches, trash receptacles, drinking fountains, lighting, signage, and gazebos. All work will strive to meet water and energy efficiency goals and repair critical assets.
Street Pavement & Sidewalk.
Based on recommendations from the City's Pavement Management System, residential streets that are in the worst condition will be repaired and repaved. Failed residential streets with a Pavement Condition Index (PCI) rating from 0 to 25 have been identified for repair. Additionally, damaged sidewalk throughout the city will be repaired based on prioritization recommendations provided by the Pedestrian Connectivity Plan currently under development.
Drainage.
Complete rehabilitation, replacement, or lining of failed and damaged city-owned Corrugated Metal Pipe (CMP) that is located beyond the public roadway right-of-way.
Citywide Network.
The overall computer network which provides all the connectivity between PC’s, servers, phones and other network attached devices throughout the City is obsolete, no longer supported by the manufacture and vulnerable to security breaches. A Baseline Assessment Report of the network was completed by NCI Partners in April 2017 and found that the majority of the network equipment was no longer available for sale and 20% was beyond the “end of support” date and surmised that this was a “dangerous state to be in”. Replacement of the network equipment will restore the security of the system as well as increasing the efficiency in operations and providing the capability to deploy emerging “Smart City” technologies/solutions to benefit the community. A redundant communications network will also provide a more reliable backbone in the event of breakage, damage or outages. The Citywide network supports projects that reduce traffic congestion on streets, reduce associated carbon emissions, enable enhanced energy savings in City buildings, provide advanced citizen engagement through data sharing and capabilities of virtual City Hall, and enable enhanced security at City parks and other locations.
Citywide Telecommunications.
The citywide telecommunications system is nearly 20 years old and replacement components are no longer manufactured. Refurbished parts are becoming increasingly difficult to secure. The system is analogue based and has significant limitations in functionality compared to current systems that utilize computer networks (voice over internet protocol (VOIP)). VOIP systems allow for video conferencing, computer screen sharing, call following (“desk phone” can be accessed regardless of location), and other features which increase productivity and responsiveness for employees to the public.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council of the City of Chula Vista members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City of Chula Vista City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the Operational Excellence goal by communicating the City’s projected financial position for the current fiscal year in an open and transparent manner. This transparency supports City Initiative 1.3.1. - “Foster public trust through an open and ethical government.”
CURRENT YEAR FISCAL IMPACT
By Resolution 2017-089, City Council approved the issuance of Bonds to fund approximately $71,000,000 in Measure P projects.
Approval of the resolution will (1) create new capital improvement projects “Citywide Network Replacement (Measure P)” (GG237) and Citywide Telecommunications (Measure P)” (GG237), (2) amend the Infrastructure, Facilities, and Equipment Expenditure Plan to include said projects, and (3) amend the FY 2017-18 Operating and Capital Improvement Program budgets to add the additional Bond proceeds to the amended Infrastructure, Facilities and Equipment Expenditure Plan, accelerating the repair of critical assets.
ONGOING FISCAL IMPACT
The Expenditure Plan anticipates that the one-half cent sales tax increase would generate between $16.6 million in FY 2018-19 and $14.6 million in three (3) quarters of the final FY 2026-27. As part of the City’s annual budget process, annual allocations to the Measure P Sales Tax Fund would be brought forward for City Council consideration and action. Prior to City Council consideration of the City’s annual budget, staff will prepare and present to the Citizens’ Oversight Committee for its review a spending plan for Measure P revenues.
ATTACHMENTS
Attachment A - Proposed Amended Measure P Spending Plan
Attachment B - Infrastructure, Facilities and Equipment Plan (10-Year Period)
Attachment C - Project Status Updates
Staff Contact: Bob Beamon, Engineering & Capital Projects