...Title
Department of Transportation recommending the Board authorize changes outlined in Items 1 through 5 listed below to the proposed 2023 Capital Improvement Program (CIP), with a return to the Board in June 2023 for adoption of the 2023 CIP:
West Slope Road and Bridge Program:
1) Approve additions and changes to the West Slope Road/Bridge CIP projects for inclusion in the 2023 CIP as described in Attachment A; and
2) Remove the project Latrobe Road Widening - Investment Boulevard to Golden Foothill Parkway South/Clubview Drive, CIP 36105055, from the unfunded list and add it back into the 2023 CIP.
Tahoe Environmental Improvement Program (EIP):
3) Approve changes to the Five-Year Tahoe EIP as described in Attachment A.
Capital Overlay and Rehabilitation Program:
4) Approve changes to the Capital Overlay and Rehabilitation Program (CORP) as described in Attachment C. Continue to use external funds as they become available for the CORP projects listed in Attachment C.
Airport Capital Improvement Program:
5) Approve changes to the Airport Capital Improvement Program as shown in Attachment A and continue to fund Fiscal Year 2023/24 Airport Capital Improvement Program projects with Federal Aviation Administration grants and local matching funds.
6) Authorize the Chair to sign a Budget Transfer adjusting the CIP budget for Fiscal Year (FY) 2022/23 to accommodate newly approved projects in the 2022 CIP and increased 2022/23 expected expenses for previously approved projects (4/5 vote required).
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, and Sacramento Municipal Utility District Funds.
...Body
DISCUSSION / BACKGROUND
The Capital Improvement Program (CIP) is the long-range plan for all Department of Transportation (Transportation) individual capital improvement projects, including cost estimates, schedules, and funding sources. It provides strategic direction for capital projects over a current year, 5-, 10- and 20-Year horizon. 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 8, 2020, Item 39, Legistar 20-1585. The approved annual growth rate of 0.7% per year for residential growth is being assumed for this update.
CIP projects can have multiple funding sources, including TIF Program funding. General Plan Implementation Measure TC-B and County Ordinance 5144 requires traffic impact fees to be updated annually for changes in project costs for CIP that are funded by the TIF Program. The last annual update was adopted by Resolution 072-2022 on May 17, 2022, Item 28, Legistar 22-0276. 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 ENR Construction Cost Index. The TIF Program will remain fully funded regardless of the cost index used for annual adjustments. The 2023 TIF annual update will reflect the 2023 CIP.
The proposed 2023 CIP Book includes the following four programs:
• West Slope Road/Bridge CIP
• Tahoe Environmental Improvement Program
• Capital Overlay and Rehabilitation Program
• Airport Capital Improvement Program
Staff will return to the Board for adoption of the 2023 CIP book in June 2023.
Taking into consideration all four programs, Transportation’s goals for the 2023 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 2022 CIP was adopted on June 14, 2022, Item 48, Legistar 22-0521. Cost or schedule modifications have been made as a result of refinements made during the FY 2023/24 budget process. Staff recommends the Board direct staff to include the changes specified in Attachment A in the 2023 CIP Book.
New Project for the 2023 West Slope Road/Bridge CIP
The Latrobe Road Widening - Investment Boulevard to Golden Foothill Parkway South/Clubview Drive, CIP 36105055, is being added to the 2023 CIP. This project was previously in the 2020 CIP; however, it was placed on the unfunded list in 2021 due to the reduction in the annual growth rate. This project is being added back into the CIP at this time to address anticipated increases in traffic from proposed business developments. This project will widen Latrobe Road for approximately a 0.6 mile segment between Investment Boulevard and Golden Foothill Parkway (south)/Clubview Drive from two lanes to a four-lane divided roadway with curb, gutter, and Class II bike lanes. This project will be added back into the TIF Program project list and TIF - Zone C funds will increase with the addition of this project.
Changes to 2022 CIP Projects for FY 2022/23
On November 8, 2022, Item 18, Legistar 22-1882, the Board approved several new projects to be added to the 2022 CIP due to new grant funding obtained for them. The Board also approved funds to advance two other projects using local Road Fund and TIF - Zone C funds. This has allowed Transportation to begin the environmental and design phases for these projects. On June 21, 2022, Item 16, Legistar 22-0757, the Board authorized the Director of Transportation to amend the Reimbursable Agreement with the Federal Highway Administration, Central Federal Lands Highway Division, for the Ice House Road Pavement Rehabilitation Phase 2 Project and designate additional Sacramento Municipal Utility District (SMUD) funds for the grant match and bridge barrier work. A budget transfer is now being pursued to accurately represent the budgetary needs for the adoption of these projects.
The FY 2022/23 budget will be increased by $1,118,000 in Congestion Mitigation and Air Quality (CMAQ) funding, $200,000 in RSTP funding, $462,071 in TIF - Zone C funding, $374,905 in TIF - HWY 50 funding, $1,419,941 in SMUD funding, which includes budget adjustment amounts from previous FY 2021/22, $593,695 in RSTP Exchange Funding, and $220,561 in RSTP/ Surface Transportation Block Grant Program (STBGP) funding. The funding increases will be offset by an increase to object 4300 Professional Services and 4302 Construction and Engineering Contracts. Attachment D lists the projects, their revenue sources, and transfer amounts into the various accounts that represent the budget transfer paperwork (Attachment E).
ALTERNATIVES
1) The Board could choose to prioritize projects that differ from staff’s recommendation.
2) The Board could choose not to approve the Budget Transfer into the 2022 CIP and postpone their inclusion to the 2023 CIP Budget; however, this will delay the work on these projects and jeopardize the timely use of the awarded funds.
PRIOR BOARD ACTION
See Background/Discussion Section.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
The Planning and Building Department, the El Dorado County Transportation Commission, and the Chief Administrative Office, Community Development Services Administration and Finance Division.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no net County cost associated with this item. Funding for projects in the 2022 and 2023 CIP comes from various Federal, State, Local, and Accumulative Capital Outlay funding sources and will be included in the FY 2023/24 Budget. Please see the Project Change table (Attachment A) for a summary of each project's cost and schedule changes. Approval of this item would update the budgeted amounts to reflect the adjustment of Transportation’s budget for FY 2022/23 by $1,118,000 in CMAQ funding, $200,000 in RSTP funding, $462,071 in TIF - Zone C funding, $374,905 in TIF - HWY 50 funding, $1,419,941 in SMUD funding, $593,695 in RSTP Exchange Funding, and $220,561 in RSTP/ STBGP funding.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
The CIP is a vital part of the infrastructure component of the County Strategic Plan. Adequate infrastructure is necessary for the Economic Development component and a requirement of the County General Plan. Safe roads are a crucial factor in the Public Safety component of the County Strategic Plan.
CONTACT
Rafael Martinez, Director
Department of Transportation