AgdaPkt 2020-04-27 Joint SA PFA - Laserfiche WebLink

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7.A. - Page 6 of 36 On January 23, 2020, the CIP Committee met to review all of the submitted CIP projects. During this meeting, the CIP Committee considered the potential changes in the bidding and construction environments; focused on projects that are ongoing and essential; and focused on projects with the objectives of resiliency, sustainability, and using clean technology. Every effort was made to ensure progress on high priority projects that fulfilled the City Council's Strategic Priorities and Guiding Principles, while considering citywide capital needs. The FY 2020-21 Recommended Capital Improvement Program Projects List (CIP List) prioritize projects which advance City Council policy objectives and address capital needs to the extent possible with available funds. The proposed total CIP budget for FY 2020-21 for the General Fund and Capital Outlay Fund includes $7.8 million in new funding for 22 projects and is included as Attachment B. Projects with funding requests that could not be met in FY 2020-21 have been deferred to future years. It should be noted that the City has numerous ongoing projects within the City that have been previously approved for funding by the City Council. These are not included in the proposed FY 2020-21 CIP budget. The Veterans Memorial Senior Center is an example of a project that isn't currently requesting funding from one of the CIP funding sources and therefore is not included in the proposed FY 2020-21 CIP budget. As part of the mid -year budget update on February 24, 2020, staff recommended allocating $2 million from the anticipated FY 2019-20 operating balance for transportation projects. The FY 2020-21 CIP List in Attachment B includes this funding and allocates it toward three recommended transportation projects: Hopkins Traffic Calming (phase 1)1 $ 1,400,000 Theater Way Street Closure $ 400,000 Traffic Safety Program $ 200,000 Given the sudden halt to economic activity in order to protect public health, staff now expect City revenues will be substantially less than projected in February. The Revised Preliminary Ten Year General Fund Forecast presented on April 13 indicated that there would be no operating balance in FY 2019-20 and a $9.8 million operating deficit in FY 2020-21, while recognizing that forecasting impacts to City revenues is very difficult at this time. In light of significantly changed economic climate, staff recommend that the City Council discuss the three projects that would be funded if a $2 million transfer from the General Fund proceeds, but direct staff to defer proceeding on these projects until January 2021. This would allow the City Council to affirm its direction later in 2020, when economic impacts to the General Fund and therefore impacts to City operations are more clearly understood. With an available balance in the Capital Outlay Fund of only $5.8 million, staff and department heads realize there were many tough trade-offs in prioritizing projects in this uncertain time. Overall, there is insufficient funding for all projects. The CIP Committee analyzed the total list of projects for FY 2020-21 and was able to earmark projects that could be deferred, partially funded, or reduced in scope this fiscal year. The FY 2020-21 Unfunded and Deferred Scope Projects list is included as Attachment C. 1 The total project cost is estimated at $4 million. Page 6 of 8 .AL . City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 191