2021-07-07 City Council Item No. 11.4 5-Year CIP Program Regular MEETING - Additional Meeting MaterialsCITY OF MENIFEE
SUBJECT: Five-Year Capital Improvement Program Fiscal Year 2021-
2022 through 2025-2026
MEETING DATE: July 7, 2021
TO: Mayor and City Council
PREPARED BY: Carlos Geronimo, Principal Engineer
REVIEWED BY: Rochelle Clayton, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1.Conduct Public Hearing of the Proposed Five-Year Capital Improvement Program and Funding
Plan FY2021-22 to FY2025-26
2. Approve by Resolution the Proposed Five-Year Capital Improvement Program and Funding
Plan FY2021-22 to FY2025-26
DISCUSSION
The Capital Improvement Program (CIP) is a division of the City’s Public Works and Engineering
Department and tasked to plan, budget, manage, and deliver critical infrastructure projects
throughout the City.
Capital Improvements are major physical projects undertaken by the City that are generally not
recurring on an annual basis. They typically include acquisition of right-of-way, the construction
and modification of buildings or facilities, public infrastructure construction or modifications, the
purchase of major equipment and vehicles, the preparation of studies and plans associated with
capital projects, and those projects funded with debt obligations. The projects in the CIP must be
in conformance with the City’s General Plan goals and objectives. The projects proposed by the
CIP consist of eight (8) major categories:
-Transportation Projects
-Traffic Signal Projects
-Street Improvement Projects
-Pavement Management Projects (resurfacing)
-Street Light Projects
-Drainage Projects
Item No. 11.4
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 2 of 7
-Public Facilities
-Parks, Trails, and Recreation Projects (Community Services Department)
Recognizing the importance of proactively addressing the traffic needs of the growing Menifee
community, the annual CIP program reflects a concerted investment of funding towards traffic
related projects (transportation, traffic signals, pavement management, and street
improvements). Over the past three (3) years the City’s CIP program has included between 79%
and 91% of the total respective fiscal year adopted budget (representing between $12 to $25
million in new funding allocations per year, and an average $39 million in adjusted budget
(incorporating mid-year budget adjustments (additional funding allocations) and/or carried forward
funding for multi-year projects).
The table below provides a three (3) year summary of the CIP Program budget by Traffic Related
Projects & All Other Project Categories.
TABLE 1: 3 Year CIP Program Traffic Related Projects & All Others Project Categories
The following tables provide a three (3) year historical summary by annual adopted budgets &
updated adjusted budgets reflecting mid-year adjustments and budget carry forwards for multi-
year funded projects as well as by CIP Project Category.
TABLE 2: 3 Year Adopted & Adjusted CIP Program Budget
$27,905,083
$15,881,468
$27,983,341
$49,267,925
$56,760,843
$27,983,341
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Fiscal Year 2019/20 Fiscal Year 2020/21 Fiscal Year 2021/22
Adopted Annual Budget Adjusted Annual Budget
$39,294,177
(79%)$39,071,601
(69%)
$25,518,341
(91%)
$9,973,748
(21%)
$17,689,242
(31%)
$2,465,000
(9%)
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
FY2019/20 Adjusted Budget FY2020/21 Adjusted Budget FY2021/22 Adopted Budget
Traffic Related Projects All Other Projects
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 3 of 7
TABLE 3: 3 Year CIP Program Budget by CIP Project Category
Project Category
FY2019/20
Adjusted
Budget
Percent
(%) of
Total
FY2020/21
Adjusted Budget
Percent (%)
of
Total
FY2021/22
Adopted
Budget
Percent
(%) of
Total
Drainage $0 - $150,000 0.26% $0 0.00%
Parks, Trails & Recreation 4,801,709 9.75% 10,207,855 17.98% 375,000 1.34%
Pavement Management 6,773,138 13.75% 6,259,391 11.03% 2,922,662 10.44%
Public Facilities 5,172,039 10.50% 7,331,387 12.92% 2,090,000 7.47%
Street Improvements 1,682,113 3.41% 2,151,169 3.79% 410,000 1.47%
Traffic Signals 5,372,015 10.90% 4,780,611 8.42% 1,740,000 6.22%
Transportation 25,466,911 51.69% 25,880,430 45.60% 20,445,679 73.06%
$49,267,925 100.00% $56,760,843 100.00% $27,983,341 100.00%
The California Government Code Section 65401 requires the City to prepare a coordinated
program (i.e., Capital Improvement Program) identifying projects recommended for planning,
initiation or construction during the ensuing fiscal year.
$4,801,709
$10,207,855
$375,000
$6,773,138
$6,259,391
$2,922,662
$5,172,039
$7,331,387
$2,090,000
$1,682,113
$2,151,169
$410,000
$5,372,015
$4,780,611
$1,740,000
$25,466,911
$25,880,430
$20,445,679
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
FY2019/2020 Adjusted Budget FY2020/21 Adjusted Budget FY2021/22 Adopted Budget
Drainage Parks, Trails & Recreation Pavement Management Public Facilities
Street Improvements Traffic Signals Transportation
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 4 of 7
Each year, the CIP division prepares and updates a comprehensive budget plan of proposed
capital improvement projects for the upcoming fiscal year and the four years thereafter, which
makes the Five-Year Capital Improvement Program. This document is a budgeting and fiscal
planning tool used to determine the extent of future funding needs and existing sources of funding
for City capital projects.
The five-year CIP provides a list of future capital improvements with detailed project descriptions,
cost estimates, and the anticipated means and sources of financing for each project. The CIP has
identified a total of 23 projects for the 2021-2022 Fiscal Year and 137 projects for the five-year
period.
Below is a summary of changes since adoption of the FY 20/21 Five Year Capital Improvement
Program and Funding on June 15, 2020:
TABLE 4: Summary of Changes to FY20/21 5 Year CIP Program
Project Name
FY 2020/21 CIP Book
Approved + Proposed
FY 2020/21 Changes/
Corrections*
FY 2020/21 Ending
Total
FY 2021/22 CIP Book
Funding to Date
Holland Road
Overpass $ 17,658,470 $ 3,046,773 $ 20,705,243 $ 20,705,243
Bradley Road
Bridge $ 1,647,732 $ (102,406) $ 1,545,326 $ 1,545,326
McCall Bvld/I-215
Interchange $ 852,230 $ 2,596,271 $ 3,448,501 $ 3,448,501
*These include Mid-Year Adjustments, Signed TUMF Agreements, Rolled Purchase Order Timing
Differences and Calculation Corrections
Staff has reviewed the new projects identified within the proposed five-year CIP for conformance
with the City’s General Plan. The projects identified in the CIP are consistent with the City of
Menifee’s General Plan policy and further the implementation of the General Plan.
Fiscal Year 2021/22 Budget Process:
In preparation for the recommendation of approval of the FY2021/22 CIP Program Budget
included in this staff report, the following key steps were completed:
• (JANUARY-FEBRUARY 2021) FY2021/22 through 2025/26 CIP Program Budget
Process Kick-off: Key interdepartmental meetings reviewing funding sources &
identifying project needs.
• (MARCH 2021) FY2021/22 through 2025/26 Draft CIP Budget: Proposed budget &
projects compiled in preparation for workshops.
• (APRIL 19, 2021) FY2021/22 through 2025/26 CIP Program Workshop #1: A dedicated
public workshop was held to present the draft proposed CIP Program and related budget
and projects, as well as provide an opportunity for Council and public input and
participation.
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 5 of 7
• (MAY 11, 2021) FY2021/22 through 2025/26 CIP Program Workshop #2: A secondary
dedicated public workshop was held to present the updated FY2020/21 CIP Program and
related budget and projects, incorporating the feedback received from Workshop #1.
• (MAY 12, 2021) FY2021/22 through 2025/26 CIP Program presented to Planning
Commission: The Five-Year CIP plan was taken before the Planning Commission on
May 12th 2021 and was found to be in conformance with the General Plan goals and
policies per resolution PC21-532 (attached).
• (JULY 7, 2021) FY2021/22 through 2025/26 CIP Program Adoption
Recommendation: CIP Program presented to Council as a publicly noticed Public
Hearing for Council adoption.
This year’s budgetary process faced the challenge of social distancing requirements, resulting in
public meetings, including Council meetings, required to be held virtually and/or as a hybrid of
virtually and on site. To address these temporary restrictions, and maximize community
participation and awareness of the CIP Program budget process, the City expanded the annual
workshop from one to two (2) total workshops.
To be consistent and clear with the numbering system shown in the CIP book, staff is proposing
revisions that will be implemented in FY 22-23.
Currently, the future projects listed in the CIP book, which are the projects proposed beyond the
current Fiscal Year, are given a temporary number in the following format: PW-TR-01, where the
first two letters (PW) correspond to the city department responsible for the project implementation,
the next two letters (TR) correspond to the project category (there are a total of eight project
categories), and the last two digits correspond to the order the project is listed (01 to 99).
As future projects become funded, they are given a specific project number as assigned by the
Finance department in the following format: CIP 13-03, where CIP = Capital Improvement Project,
the next two digits correspond to the fiscal year the project becomes funded (2012/2013 = 13),
and the last two digits correspond to the order the project was entered into the financial tracking
system (01 to 99). Once a future project is funded and is assigned a CIP number, its
corresponding temporary numbering system is recycled, and the entire list of projects re-
numbered.
This numbering system has created confusion when tracking future projects as the numbering
from one fiscal year do not correspond to the same projects in the next fiscal year. To avoid this
confusion, staff will make the following revisions:
The future projects will be renumbered in the following format: TR-20-01; where:
- The first two letters correspond to the project category:
▪ TR = Transportation
▪ TS = Traffic Signal
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 6 of 7
▪ SI = Street Improvement
▪ SD = Strom Drain
▪ SL = Street Lighting
▪ PM = Pavement Management (resurfacing)
▪ PF = Public Facilities
▪ CS = Community Services (Parks, Trails, and Recreation)
- The next two digits correspond to the Fiscal Year the project is added to the program
(i.e. 2019/2020 = 20, 2020/2021=21); and
- The last two digits correspond to the order in which the project is added (01 to 99).
The future projects numbering will not be recycled and re-used, as it currently is, but will stay
with the project until the project is funded, and a corresponding CIP number, provided by the
Finance department, is given in the format stated above.
Capital Project Cost Estimates:
A capital project cost estimate is the forecasted cost associated with labor (staff, consultant,
management, and construction), acquisitions, materials, and equipment that are required to
complete the work within a specific schedule according to a scope of work defined by design
documents.
When a project is first included in the CIP book, it is in a planning stage; the project goes through
an assessment to determine a general scope of work that will accomplish the project need based
on the information available at the time. Once the general scope of work is established, an
estimate is prepared that considers consultant design services, construction, construction
management, ROW acquisition, etc. using the parameters that are shown in the CIP book; the
estimates are very general and conservative.
Once the project progresses to the design phase, estimates are prepared at different stages of
the design process, typically at 30% (Preliminary design), 60%, 90% and 100% (final). With each
revision, the estimate becomes more refined and detailed showing costs that are more
representative of the actual scope of the work and current construction costs. There are other
factors that affect construction estimates such as the COVID-19 pandemic, which has seen
construction prices dramatically increase due to shortages of supply and large demands for those
products.
The estimates shown in the CIP book are constantly updated to reflect the most current estimates
and to account for other issues that affect construction costs as explained above. The reliability
of capital project cost estimates at every stage of the project delivery process is vital for
responsible project, program, and fiscal management.
ENVIRONMENTAL REVIEW
Staff has reviewed the list of projects identified in the CIP and determined that a number of
projects will likely involve the need for preparation of environmental documentation in accordance
City of Menifee Staff Report
Capital Improvement Program Budget. FY 2021-2022 through 2025-2026
June 16, 2021
Page 7 of 7
with the California Environmental Quality Act (CEQA).
The CIP is a prioritizing and funding allocation program and does not have the potential to cause
a significant effect on the environment. No physical activity will occur until all required
environmental review is conducted at the time the physical improvements prioritized in the Capital
Improvement Plan are undertaken at a future unspecified date.
Accordingly, the adoption of this CIP is therefore exempt from the environmental review
requirements of the California Environmental Quality Act (“CEQA”) pursuant to Section
15061(b)(3) of Title 14 of the California Code of Regulations.
In addition, adoption of the CIP is exempt from CEQA pursuant to Section 15262 of Title 14 of the
California Code of Regulations which covers feasibility or planning studies related to possible
future actions.
STRATEGIC PLAN OBJECTIVE
Accessible and Interconnected Community
FISCAL IMPACT:
There is no fiscal impact to the City from approving the Five-Year CIP plan. Individual CIP projects
will be funded, as appropriate, at the time the project moves forward towards approval and
implementation. The funding for the current fiscal year (FY 2021/2022) capital projects was
included in the FY 2021/2022 Budget that was adopted by City Council on June 2, 2021.
ATTACHMENTS
1. Approved PC21-532 Resolution
2. FY 2021-2026 Council Resolution
3. City of Menifee 5 Year CIP plan (Draft)