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Department of Transportation recommending the Board authorize changes outlined in Items 1 through 4 listed below to the proposed 2026 Capital Improvement Program (CIP), with a return to the Board in June 2026 for adoption of the 2026 CIP:
West Slope Road and Bridge Program:
1) Approve additions and changes to the West Slope Road/Bridge CIP projects for inclusion in the 2026 CIP as described in Attachment A;
2) Add new project Silva Valley Parkway at Appian Way Intersection Improvements, CIP 36105087, to the 2026 CIP;
3) Remove El Dorado Hills Blvd Overlay - Saratoga to Harvard Way, CIP 36105049, from the 2026 CIP; and
Tahoe Environmental Improvement Program (EIP):
4) Approve changes to the Five-Year Tahoe EIP as described in Attachment A.
FUNDING: Federal, State, and Local Sources. Local funding sources may include any combination of the following: Traffic Impact Fee Program, Missouri Flat Area Master Circulation and Financing Plan, Road Fund, Tribe Fund, Accumulative Capital Outlay, Developer Advanced Funds, Sacramento Municipal Utility District Funds, and/or General Fund.
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DISCUSSION / BACKGROUND
The Capital Improvement Program (CIP) is the long-range plan for all Department of Transportation's (Transportation) individual capital improvement projects, including cost estimates, schedules, and funding sources. It provides strategic direction for capital projects for the current year, and the 5-, 10-, and 20-Year horizons. The CIP is used as a planning tool and is updated annually as new information becomes available regarding Board priorities, funding sources, project cost estimates, and timing.
In order to ensure that growth consistent with the General Plan does not exceed available roadway capacity, the County is required to implement General Plan Policy TC-Xb and Implementation Measure TC-A. General Plan Policy TC-Xb and Implementation Measure TC-A requires the County to prepare and adopt an annual CIP for the West Slope Road/Bridge Program specifying expenditures for roadway improvements within the next ten (10) years.
General Plan Policy TC-Xb and Implementation Measure TC-A also require a Major CIP and Traffic Impact Fee (TIF) Program update every five (5) years, in line with the major review of the General Plan, specifying expenditures for roadway improvements within the next 20 years. The Board approved the Major Update to the CIP and TIF Program on December 3, 2024, Legistar file 24-1686. The Adjusted 2025 Update to the CIP and TIF Program was adopted on June 10, 2025, Legistar file 25-0517. As part of the Major Update, the Board approved a reduction in the annual growth rate from 0.70% per year to 0.62% per year. This modification resulted in changes to the CIP, but no changes to the unfunded project list as indicated in Attachment A, Project Change Table, and Attachment B, Overall Unfunded CIP.
CIP projects can have multiple funding sources, including TIF Program funding. General Plan Implementation Measure TC-B and County Ordinance 5144 require traffic impact fees to be updated annually to reflect changes in project costs for CIPs funded by the TIF Program. The last annual update was adopted by Resolution 079-2024 on May 21, 2024, Legistar file 24-0594. Per Ordinance 5144, “TIF amounts shall be adjusted for inflation no later than the end of the third fiscal quarter of each year in accordance with the percentage change published by the Engineering News Record (ENR) Construction Cost Index...No fee adjustment shall be effective until approved by the Board. Any fee adjustment approved by the Board shall be effective on July 1st of the year in which the action is taken, or at such other time as is provided by law.” TIF Program updates are based on actual changes in projects’ cost estimates, or as adjusted for inflation using the current 3.6% increase to the ENR Construction Cost Index. The TIF Program will remain fully funded regardless of the cost index used for annual adjustments. The 2026 TIF annual update will reflect the 2026 CIP.
The proposed 2026 CIP Book will include the following two (2) programs:
• West Slope Road/Bridge CIP
• Tahoe Environmental Improvement Program (EIP)
Staff will return to the Board for adoption of the 2026 CIP book in June 2026.
Taking into consideration the two programs, Transportation’s goals for the 2026 CIP Book are to:
1) Include new projects or changes to existing projects, as directed by the Board.
2) Make any other necessary revisions per Board direction.
Projects listed in Attachment A have had changes in construction start date, or cost changes of over 10% of total project cost or $250,000, whichever is greater, since the 2025 CIP was adopted on July 15, 2025, Legistar file 25-0504. Cost or schedule modifications have been made as a result of refinements made during the FY 2026-27 budget process. Transportation recommends the Board direct staff to include the changes specified in Attachment A in the 2026 CIP Book.
Additional Project Changes for the 2026 West Slope Road/Bridge CIP
1) The Silva Valley Parkway at Appian Way Intersection Improvements Project will construct intersection improvements, including but not limited to, minor roadway widening, re-striping of lanes, installation of Americans with Disabilities Act (ADA) curb ramps and crosswalks, and the installation of a traffic signal. It is funded by TIF - Zone C funds.
2) The El Dorado Hills Blvd Overlay - Saratoga to Harvard Way Project is being removed from the CIP due to an inability to secure construction funding. The Maintenance Division of Transportation is planning to utilize the completed design for this project to improve the roadway with surface treatment and overlay funded by SB1.
ALTERNATIVES
The Board could choose to prioritize projects that differ from staff’s recommendation.
PRIOR BOARD ACTION
See Background/Discussion Section.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding for projects in the 2026 CIP comes from various Federal, State, and Local Fund sources and will be included in the FY 2026-27 Budget. Please see the Project Change table (Attachment A) for a summary of each project's cost and schedule changes.
Impact of Austin v. El Dorado County Litigation:
Transportation has identified a fiscal impact resulting from the Austin v. El Dorado County lawsuit. Following the court's ruling, the County is required to issue refunds totaling approximately $9.5 million to affected residents and pay approximately $5 million in attorneys' fees and costs.
This unprogrammed $14 million expense directly impacts the available balance within the TIF Program funds. Consequently, while the TIF Program remains fully funded over the 20-year horizon, this immediate reduction in liquidity may require the deferral of certain non-safety-critical projects to maintain a balanced 10-year West Slope Road/Bridge Program.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Priority: Enhance communication about funding and resources for transportation-related capital improvement plans (CIP).
Action Item: Complete a needs assessment, project cost update, prioritization, and funding needs.
CONTACT
Rafael Martinez, Director
Department of Transportation