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HomeMy WebLinkAbout1987-10-21; Planning Commission; ; CITY'S CAPITAL IMPROVEMENT PLANMEMORANDUM DATE: OCTOBER 21, 1987 TO: PLANNING COMMISSION FROM: PLANNING DEPARTMENT SUBJECT: CITY'S CAPITAL IMPROVEMENT PLAN Attached is a copy of the Agenda Bill to the City Council describing the City's Capital Improvement Plan (CIP). The City Council has indicated that they would like the Planning Commission to review this report and make recommendations. A resolution is also attached for the Commission to review which recommends approval of the CIP. The Executive Summary and Technical Appendices for the CIP have been previously distributed. ATTACHMENTS 1) Planning Commission Resolution No. 2696 2} Agenda Bill with attachments CG:bjn z 0 b c( ..J 0 z :::, 0 0 AB# ____ _ MTG. 10/27 /87 DEPT. __ F_I_N __ Cl~,, OF CARLSBAD -AGENl . BILL TITLE: CAPITAL IMPROVEMENT PROGRAM -PUBLIC HEARING RECOMMENDED ACTION: DEPT. HD.\~ CITYATTY_V_ CITY MGR. __ Adopt Resolution No. adopting the Capital Improvement Program and ----appropriating funds. ITEM EXPLANATION: The City of Carlsbad's Capital Improvement Program (CIP) is one of the most important planning tools available to the City. The GIP provides a long range picture of how the City will allocate available resources to a variety of projects that will affect the safety, environment and quality of life for Carlsbad residents. This year's GIP has been enhanced by the addition of the following features: -Complete lists of all capital projects needed through buildout. -Expanded project descriptions and location maps. -Implementation of growth management standards in GIP planning and scheduling. The proposed GIP includes 142 projects totaling $227 million spanning the years between 1987-88 and buildout. The entire program is funded from a combination of sources depending heavily on development-related fees. Tbe City Library, Las Palmas acquisition, development of Macario Canyon Park, and the ultimate construction of a City Hall facility have been funded using debt. All other projects are included in the program on a pay-as-you-go basis. Growth management standards have been used as the driving force in the development of a phasing plan for this GIP. Each project included in the GIP was weighed against the Growth Management Program standards to determine approximate timing. The majority of projects included in the Capital Improvement Program are funded from development fees. Of the $227 million in capital projects scheduled between today and buildout, $208 million or 92% are funded by fees. Only 8% will be funded by tax supported bond issues or other funds. The GIP has been phased to allow projects to be constructed as early as possible within funding limitations. However, long range funding problems appear in the sewer construction fund by late in the GIP. A revision of the sewer connection fee should be considered to properly finance the construction of sewer lines and waste water treatment plants. The operating costs of projects shown in the GIP have been projected and compared with available operating revenue. These projections show that the City could face an operating deficit of $2 million in 1988-89, using a worst case scenario. This deficit declines to $400,000 by 1990-91. Relatively normal conditions should return by 1991-92. The problem of funding operating costs will force the City into a conservative operating mode for the next three to five years. -2- Following the public hearing, the City Council should consider adopting the Capital Improvement Program as presented or modified as necessary, based on public input. FISCAL IMPACT: The fiscal impact of the GIP is very broad and pervasive. The funding for the majority of projects depends on development revenue. If, however, development does not occur the City may, in most cases, defer a project. There are several cases where the City has committed to the construction of a project, such as the Library and some park projects. For these projects to proceed, a flow of funds will be necessary. A small amount of development activity will be necessary to support these committed projects. A more serious funding problem faces the City in the area of operations. The projected general fund operating revenue for 1988-89 may be as much as $2 million below the amount necessary to fund all operations at full staffing. Although this problem is not caused by the construction of projects in the early part of the GIP, these projects add about $1 million in costs, increasing the deficit position. Actual operating costs added during the year will depend on project timing. The City will have to continue hiring restrictions and emphasis on fee collection to even begin to meet this challenge, The sewer construction fund also appears to have some funding problems in years three through five in the GIP. A change may be required in the timing of the Encina Phase IV project to meet the City's cash flow position. EXHIBITS: 1. GIP Summary Capital Improvement Program -1987 to Buildout. 2. Resolution No. , adopting the Capital Improvement Program and ----appropriating funds, Goals CITY OF CARLSBAD CAPITAL IMPROVEMENT PROGRAM SUMMARY The 1987-88 Capital Improvement Program has been built around four basic goals that set the tone for prioritization of projects, sequence of funding and allocation of resources. These goals are as follows: 1. Growth Management Program -Projects required to meet service level standards set by the Growth Management Program should be included in the CIP based on the timing of projected demand. The order of importance is A) City-wide needs, B) quadrant-wide needs, and C) zone needs. 2, CoD111Unity Needs -Projects required to satisfy a general community need that are not covered as part of the Growth Management Program should be included in the CIP and ranked according to the relative importance of each facility. 3. Opportunity -When possible, the City should take advantage of funding, timing or other opportunities related to the construction of capital projects. 4. Total Prograa -The CIP should provide information on the total City program from the present to buildout, showing the phasing and funding of each project to allow the Council to understand the relationship between all projects within the CIP. CIP Prograa -Years 1 to 5 The CIP covers a period of thirty or more years (through buildout) in three blocks of time: years 1 to 5, years 6 to 10 and years 11 to buildout. The projects scheduled in years 1 to 5 have been broken down into a year-by- year phasing plan which details the progress and funding of each project. The highlights of the first five years of the CIP are swnmarized in the following pages grouped by project type. Issues 1. Project Priority and Phasing -The scheduling of the capital projects has been based on the priorities and demands outlined in the goals listed above. The City Council may find that projects should be scheduled differently to meet various needs that may not have been considered. As this rescheduling occurs, consideration must be given to the City's funding capabilities. As some projects are moved forward, other projects must be moved back in time to allow proper use of existing resources. RecoDD11ended Action -Council should review project timing for consistency with existing needs and demands. 2, Funding -The City appears to be able to fund the proposed GIP based un current projections, with the exception of the Sewer Program. The rate of development will control the flow of funds available to support GIP projects. The Sewer Master Plan is being reviewed by the City Engineer and will be available to the City Council in the near future. Recommendeq Action -1) No action should be taken at this time to revise sewer fees. The City Engineer will include a recommendation on sewer connection fees with the Sewer Master Plan report. 2) Council should be aware that the GIP schedule depends heavily on development- related revenues. Changes in the CIP may become necessary if revenues fall below projected levels. 3. Operating Budget Considerations -The operating costs associated with the CIP provide the biggest challenge to the City. If projects are completed on schedule, the City faces a deficit in the General Fund of $2 million in 1988-89 and $1.5 million in 1989-90. This deficit is linked directly to the combined effect of reducing development-related revenues while increasing the completion rate of major capital projects. The City may have funds available to build projects that cannot be maintained or properly operated once complete. The budget forecast shown in the Executive Swrunary of the GIP provides a graphic description of this problem. The City has three alternatives available to reduce this deficit: 1) Reduce operating costs by continuing the current hiring freeze or eliminating additional programs. 2) Delay the construction of capital projects until operating fwids become available. 3) Consider new sources ot' operating revenue. Recommended Action -Council should consider a combination of alternatives. First, the City might consider new sources of revenue. The Fee Study approved by Council on September 8, 1987, will provide some useful information in this area. Both fee revisions and new fees for services should be developed from the data produced by this study. The Council should also direct staff to report on the possibility of increasing existing taxes or imposing new taxes, Taxes controlled by the City include the Transient Occupancy Tax, Business License Tax, and Utility Users Tax. A prior report to Council indicated that these sources could provide substantial revenue to the City if voter approval could be obtained. Second, the reduction of operating costs can be accomplished by continuing existing hiring freeze policies and rejection of any non- essential new programs. This produces less than optimum working conditions and places external pressure on the Council to consider many programs as essential. The hiring freeze policy has been an effective reduction technique for 1987-88 at the expense of efficiency in some areas. Third, the construction of some projects could be delayed or phased to push operating costs into later years. The projections indicate a worst case picture and can be improved by allowing project timing to follow a slower construction track. Some projects will naturally follow this pattern due to delays in design, right-of-way acquisition, etc. Council should be aware that the operating budget effects of the GIP as presented cannot be accepted without corrective action. Staff recommends that Council direct staff to return with reports on: 1) Possible tax increases 2) City Fees (this study is underway) 3) Refined construction schedule for the first three years of the CIP. Council may then formulate a comprehensive course of action. CIVIC PROJECTS Below is a summary of noteworthy projects occurring within the Civic Project's category. Fire Station #5 at the Safety Center, has been scheduled during 1987-88 as two of the three standards for an industrial location are deficient. A new s~ation wi~l ensur~ a five-minute response time and 1,000 gallon-per-minute fire flow in ten minutes. It is estimated that the third standard, a workforce greater than 12,000, will occur in 1989. Fire Station #6 will begin construction in 1988-89 and be completed in 1989-90. This project needs to be completed in order to permit building within Zone 6 of the Growth Management Plan. Earlier completion is not feasible due to the current uncertainties involving the Rancho Santa Fe Road realignment. Fire Stations /H and lt2 need remodeling due to the new paramedic unit added in the 1987-88 operating budget. Additionally, administrative staff is no longer working in Staton l~l, as they are now occupying space in the Safety Center. This remodeled space can be utilized more efficiently. Funds for the purchase of Las Pal.mas have been committed and appear as such throughout the life of the debt payments. The Public Safety and Service Center Phase 2 is currently scheduled for sometime between 1992-1997. The City's standards for administrative office space are currently being met and probably will not be deficient witil the 1992-97 time period. Preliminary work is currently underway for the Library in South Carlsbad. Funding for land puchase and construction is slated for 1988-89 with additional funds needed for 20 more years for debt service payments. This library has received attention as the City currently falls short of the established standard for City-wide library services. Remodel of the North Carlsbad Library and Library space for Buildout Population can occur as established standards become deficient. Suaaary of Major Projects Title Fire Station #1 & #2 Remodel Fire Station #5 & Apparatus (Safety Center) Fire Station #6 & Apparatus Las Palmas Purchase Library South Carlsbad Library Remodel North Carlsbad Library for Buildout Population Public Safety & Service Center-Phase 2 Year 1987-88 1987-88 1988-89 & 1989-90 1987-88 thru 1996-97 1988-89 thru 2008-09 1997+ 1997+ 1992-97 DRAINAGE PROJECTS The City is compiling information to hire a consultant to revise the Drainage Master Plan, It is expected that the study and compilation of projects will take approximately one year. Presently, only one drainage project is scheduled for 1987-88, the Ela Avenue Storm Drain. The existing 24'' storm drain needs to be replaced with a 30" storm drain to adequately handle flow, Scheduling of this project is intended to ensure completion of the storm drain prior to the proposed Streetscape Program. PARR PROJECTS The first five years of the CIP includes park projects which satisfy the demands of growth management. Remaining park projects will not be needed until indicated on the Project List. There are several salient projects occurring within the first five years of the GIP. Alta Mira Park consists of purchasing 10 acres of land during 1987-88. In conjunction with the land puchase, 10 acres will be dedicated, and 12 acres currently exist, yielding a 32-acre park. The park is slated for development during 1990-91. Alta Mira Park will satisfy park acreage needs in the Southwest quadrant over the next five years. Several improvements are docketed for Holiday Park in 1987-88. These consist of installing a park surveillance lighting system and constructing a washbasin area. A roofed picnic area is also included and will contain water, electrical outlets, and cooking area. The Senior Citizen Center is scheduled for construction during 1988-89. Planning for the Center is currently underway. The land purchase is scheduled for 1997-98 in accordance with the lease agreement between the City and the School District. Public demand has been the overriding factor behind embarking on the Senior Citizen Center. No standards have been established for such a facility, Growth demands will be met in the Northeast quadrant during 1991-92 with the development of Larwin Park. Southeast quadrant demands will begin to be met in 1991-92 with the purchase of 22.5 acres of land, the site yet to be identified. Sl.llllllary of Major Projects Title Alta Mira Land Acquisition Alta Mira Development Holiday Park Improvements Larwin Park Improvements Senior Citizen Center Swim Complex Deck Repairs Unidentified Park Site Acquisition Year 1987-88 1990-91 1987-88 1991-92 1988-89 1987-88 1991-92 SEWER PROJECTS The City is currently involved in rev1s1ng the Sewer Master Plan. Many of the projects identified within this category will still occur, however, fund availability and demand will vary. It is anticipated that this category of CIP projects will vary significantly as the Sewer Master Plan is completed. TRAFFIC SIGNAL PROJECTS Most of the traffic signals contained in the CIP were identified in the PFF. The Traffic Engineer has assisted in scheduling these traffic signals over the life of the CIP, Three traffic signals contained in the PFF are not within the CIP. First, the traffic signal at Elm and Madison was deemed as unnecessary. Second, the signal at Rancho Santa Fe and Calle Barcelona is complete and operating. Last, the signal at Cannon Road and Carlsbad Boulevard is included in another project funded by GCC. Several new signals have been included in the CIP which are not part of the PFF. These were deemed necessary by the Traffic Engineer in concurrence with known and estimated traffic volumes, and recommendations of the Traffic Safety Commission. These signals will be funded with available General Capital Construction funds. Four traffic signals and the Elm Avenue Interconnect scheduled for 1987-88 will occur in conjunction with the Redevelopment Streetscape Project. These signals include Elm and Jefferson, Elm and Roosevelt, Grand and Jefferson,and Grand and Roosevelt. Also included within the scope of the Streetscape Project is interconnecting 12 signals in the downtown area. STREET PROJECTS Segments of several major arterials are contained within the GIP. Several improvements are scheduled for Carlsbad Boulevard during 1987-88. Street light and sidewalk installation along Carlsbad Blvd from Ocean to Cherry Avenue will enhance the use of this popular beach-front area. Lighting will be of benefit not only to the street, but to the seawall as well. Carlsbad Blvd, Phase II, entails road widening from the Agua Hedionda Bridge south to Cannon Road. Contractual obligations with Caltrans have stimulated this project. The Intersection a·t Cannon Road and Carlsbad Blvd will be signalized and improved as part of the Cannon Road improvements' project. Cannon Road improvements from the railroad to Carlsbad Blvd are scheduled for 1987-88. The south side of Cannon Road will be receiving street improvements. Cannon Road from I-5 to Faraday consists of constructing one lane in each direction, and will provide access to Macario Canyon Park. This project entails an assessment district and is scheduled for 1989-90. La Costa Avenue is currently undergoing intersection improvements at El Camino Real. Widening of La Costa Avenue fro■ I-5 to El Caaino Real is scheduled for somewhere between 1992 and 1997. The Traffic Impact Mitigation Study indicated that current traffic volwnes during morning and afternoon peak levels is acceptable. The I-5 freeway interchange and bridge improve■ents are also slated for 1992 through 1997, Two projects during the five-year CIP deal with Palomar Airport Road. Design of Pal011ar Airport Road improvements east of El Camino Real will enable the County to fulfill its obligation to improve this road segment to prime arterial standards. The design funds are requested during 1987-88. Palomar Airport Road from College to Paseo del Norte is slated to receive funds during 1987-88. This segment of road is an assessment district and is currently under design. co~struction is scheduled to begin in 1988. Funds requested are required as the City's contribution to the assessment district. The I-5/Palomar Airport Road Interchange is slated for the 1992-1997 time period. SU1111ary of Major Projects Title Carlsbad Blvd Sidewalk & St. Light Install. Carlsbad Blvd -Phase II Cannon Road Improvements-Carlsbad Blvd to R.R. Cannon Road-I-5 to Faraday (Assmt. District) Palomar Airport Road & El Camino Real Palomar Airport Road-College to Paseo del Norte Streetscape-Elm & Carlsbad Blvd La Costa Avenue Widening La Costa/I-5 Interchange Palomar Airport Road/I-5 Interchange Poinsettia/I-5 Interchange Year 1987-88 1987-88 1987-88 1989-90 to 1999-2000 1987-88 1987-88 1987-88 1992-1997 1992-1997 1992-1997 1992-1997