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Home My WebLink About2019-03-27; Administrative Order No. 50 Update; Chadwick, ScottTb the members of the: CITY COUNCIL A~~ I CA ✓ CC Date~}~ CM _IL COO / · Council Memorandum March 27, 2019 To: From: Re: Honorable Mayor an Scott Chadwick, City M n Administrative Order ("""r...'U ate (°'City of Carlsbad This memorandum provides an update on AO 50, Capital Improvement Program (CIP)-Project Initiation, Prioritization, Budgeting and Adoption Procedure (see Attachment). Background The previous AO 50 was dated July 5, 1990. Consistent with the City Manager's authority under Carlsbad Municipal Code section 2.12.035, and to ensure continuous improvement of processes and procedures through which capital projects are initiated, prioritized, budgeted and adopted, AO 50 was revised with an effective date of March 1, 2019. Next Steps Staff will present an update to City Council in May, prior to presentation of the Fiscal Year 2019- 20 CIP budget, so as to solicit Council policy direction on the current list of 270 outstanding CIP projects. Specifically, we will be asking Council to prioritize this list to ensure we are meeting Council expectations. Attachment: Administrative Order 50, Capital Improvement Program -Project Initiation, Prioritization, Budgeting and Adoption Procedure cc: Elaine Lu key, Chief Operations Officer Gary Barberio, Deputy City Manager, Community Services Paz Gomez, Deputy City Manager, Public Works Laura Rocha, Deputy City Manager, Administrative Services City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 Memo ID #2019025 Administrative Order 50 (revised March 1, 2019) This order supersedes Administrative Order No. 50, dated July 5, 1990 Date: March 1, 2019 To: All City Departments From: Scott Chadwick, City Manager {cityof Carlsbad Subject: Capital Improvement Program -Project Initiation, Prioritization, Budgeting and Adoption Procedure A. PURPOSE AND BACKGROUND 1. To establish processes and procedures through which capital projects are initiated, prioritized, budgeted and adopted in the City of Carlsbad (city) Capital Improvement Program (CIP). 8. POLICY 1. Asset management is lifecycle management of an infrastructure asset to provide the required level of service in the most cost-effective manner. Activities include project concept development or planning, design and construction, commissioning, operations and maintenance (sustainment), repair, replacement, upgrade, restoration, modernization or refurbishment and decommissioning or disposal. 2. All proposed capital improvement projects shall be consistent with: a. Public health and safety b. City mission, vision and organizational values c. Community values and City Council goals d. City's governing and policy documents, such as Growth Management Plan, General Plan, Climate Action Plan, Habitat Management Plan and others e. Cash flow projections and funds available in various funding sources f. Environmental review process, per the California Environmental Quality Act 3. Development of the CIP is a team effort involving all operational departments, the City Manager's office and the City Council. C. ' ROLES AND RESPONSIBILITIES 1. The Public Works and Administrative Services Departments are responsible for implementation of this Administrative Order. 2. Asset-Managing Departments/Divisions (AMDs) are responsible for lifecycle management of their infrastructure assets. Current AMDs are as follows: City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 I 760-720-9461 fax I www.carlsbadca.gov • Public Works (PW) Department-Utilities Division/Carlsbad Municipal Water District (CMWD) -Water, recycled water and wastewater assets • PW Department-Transportation Division -Streets, streetlights, traffic signals, traffic control devices and storm water assets • PW Department-General Services Division -Maintenance of streets, storm water and facilities assets • Parks & Recreation Department -Parks, recreation facilities, trails and open space assets 3. It is the AM D's responsibility to identify project needs and define operational requirements to propose a project for inclusion in the CIP. 4. Sponsoring departments for city-owned facilities include Fire, Police, Information Technology (IT) and Library & Cultural Arts (L&CA) Departments. 5. Public Works municipal projects managers will work with sponsoring departments to develop CIP projects' scopes of work and cost estimates for facilities as needed. 6. Public Works will coordinate with sponsoring departments and L&CA on public art in CIP projects. 7. Public Works will work with applicable staff to ensure compliance with the current master plans, General Plan, Climate Action Plan and other governing documents. 8. Utilities undergrounding projects will be completed per the prioritized list that has been approved by City Council, subject to funding availability or when associated with street widening projects per City Council Policy No. 41. 9. Public Works will present applicable transportation and/or mobility projects to the Mobility Safety Commission per City Council direction. 10. The CIP Steering Committee will review proposed CIP projects from a citywide perspective and advise the city manager and chief operations officer on the CIP priorities. Members of the CIP Steering Committee include: • Public Works director-Chair • Transportation director • Utilities director • General Services division manager • Parks & Recreation director • Library & Cultural Arts director • Police chief • Fire chief • Administrative Services director • Chief innovation officer • Others as designated by the Chair 11. The CIP Development Team will propose and develop CIP projects for the city's infrastructure assets. Members of the CIP Development Team include: • Transportation director -Chair • Utilities director • General Services division manager • Utilities division engineering manager • Parks services manager • Parks planning manager • City traffic engineer 2 • Transportation engineering manager • Municipal projects manager (representing sponsoring departments' requirements) • Finance director-advisory • Information Technology (IT) director -advisory • City engineer -advisory • Fire marshal -advisory • Community & Economic Development (CED) associate planner-advisory • Environmental manager-advisory • Construction Management & Inspection (CM&I) engineering manager -advisory • Facilities superintendent -advisory • Public Works senior management analyst -advisory • Finance budget manager-advisory • Finance senior accountant -advisory • Others as designated by the Chair 12. The CIP Budget Support Team will provide support in developing the CIP budget, including providing revenue estimates for all CIP funding sources and preparing the CIP budget schedules, technical appendices and summaries. Members of the CIP Budget Team include: • Finance budget manager • Finance manager for Enterprise Funds • Finance senior accountant • Public Works senior management analyst • Others as designated by the Administrative Services director D. PROJECT PRIORITIZATION AND SCORING AMDs and sponsoring departments will determine project scores using the table below. Project scores will be updated when necessary. Additional guidance on project prioritization and scoring will be provided separately to staff who will be determining project scores. Factors Points Risk to Health, Safety and Environment and 35 Regulatory or Mandated Requirements Community Values 25 Asset Condition, Annual Recurring Costs and 20 Asset Longevity Multiple Category Benefit and Bundling 10 Opportunities Project Readiness 5 Funding Availability 5 Total 100 E. PROJECT FUNDING 1. After project prioritization, timing of projects will be compared to the projected cash flow and forecast of funds available. Where there is insufficient available funding (regardless of funding source), lower priority projects will be deferred to later years. High-priority projects will be funded as soon as possible based on funding availability. 3 2. When possible, design, environmental review and land acquisition should be scheduled and funded in advance of the construction need date to ensure the project will be ready for construction when needed, thereby avoiding project delays, and to use funds more efficiently by not encumbering funds for construction while waiting on the design and environmental review process. F. PROJECT REQUEST FORM (PROJECT CHARTER) 1. Project request forms, or project charters, will identify the AMO and sponsoring department, if applicable; define the project scope of work including project description, location, summary of need, project objectives and justification including any legislative or policy citations; provide cost estimates; identify the project number; identify regulatory agencies, if applicable; and include City Council District Number(s). · 2. A sample project charter form is shown in Attachment 1. G. TIMELINE The CIP Steering Committee will meet quarterly. A call for new CIP projects to AMDs and sponsoring departments will occur annually in December, which will be initially discussed during the January CIP Steering Committee meetirig and further discussed during the April CIP Steering Committee meeting. Ongoing CIP projects will be reviewed quarterly for any additional funding requirements. Community workshops will be scheduled as part of the budget development process. Other public input and outreach will occur as part of the project development process (e.g., during design and prior to construction). December-January AMDs will prepare CIP project request forms (project charters) for new projects, including project scores. Sponsoring departments will work closely with AMDs to prepare project charters, including project scores, for new projects. The CIP Budget Support Team will refresh ongoing CIP project charters for additional funding and project scores based on AMO requests. February -March The CIP Development Team will meet to review proposed projects, including funding requests and project scores/priorities. April The CIP Steering Committee will review projects proposed by the CIP Development Team. Public Works and Administrative Services directors, along with the CIP Budget Support Team, will brief the city manager and chief operations officer on the proposed CIP budget. Consistency findings per the General Plan and the Climate Action Plan will be completed for new projects. May Public Works and Administrative Services directors, along with the CIP Budget Support Team, will conduct City Council Member briefings and will present the initial budget to City Council. 4 June Public Works and Administrative Services directors will request City Council action for final adoption of the proposed CIP budget. The CIP Budget Support Team will update budget allocations in the city's financial accounting system upon City Council adoption of the proposed budget. July The CIP Steering Committee will review ongoing CIP projects' funding status and project scores/priorities as well as discuss any proposed CIP projects that AMDs and/or sponsoring departments may be considering. August The CIP Budget Support Team will prepare CIP technical appendices and summaries. October The CIP Steering Committee will review ongoing CIP projects' funding status and project scores/priorities as well as discuss any proposed CIP projects that AMDs and/or sponsoring departments may be considering. December The CIP Development Team chair will send out a call for new CIP projects for upcoming fiscal year. H. CONTINUOUS IMPROVEMENT Public Works and Administrative Services departments will continuously look for opportunities to improve and streamline the CIP process and will review this Administrative Order as needed to ensure it is updated. Both departments will also review business systems to utilize the latest technology available for project scheduling and budgeting, as applicable. Attachment: Sample Project Charter Form I. ACTION inistrative Order becomes effective immediately on March 1, 2019. City Manager 5 CAPITAL IMPROVEMENT PROGRAM PROJECT CHARTER FISCAL YEAR 2019-20 PROJECT INFORMATION .. PROJECT SCORE I Enter total score . . . □ New Project Project Number Enter here Council District Number(s) Check all that apply: □ 1 D 2 D 3 D 4 Project Name Use naming convention: Location Item Action Asset-Managing Dept/0iv Select. .. AMD Contact Name . . Enter here ·sponsoring Department Select... Sponsoring Dept. _Contact Name Enter here Locati<m Enter here _ Project Description Enter here Total ProJect Cost -···· ~-.. ·-"""' --.. _.,._~•-·•--.•.. · ···• ·-· -------~-$ Round to nearest thousand Budget R~quested (FY) $Round tQ nearest thousand, □ Cost Estimate Attached ~unding Source(s) Enter here JUSTIFICATIOI\I □ No ·change from prior year □ Change in Cost .Explain: Provide reason for change □ Change in Scope Explain: Provide reason for change □ Change in Schedule Explain: Provide reason for change . Compliance with (check alJ that apply) . . D Growth Management Plan □ General Plan □ Council Goal D Master Plan: □ Report/Study: □ Other: Cite reference document Cite reference document Cite reference document REGULATORY ' □ CEQA Review □ CAP Review D City-issued Permit D Agency-issued Permit D Coastal Commission Review D Negative Declaration □ Mitigated Negative Declaration D Environmental Impact Report D Exemption PROJECT SCORING •· " •. - .. . . Factors ... Possible Points Sc;o,:e Risk to Health, Safety and Environment and Regulatory or Mandated Requirements 35 Community Values 25 Asset Condition, Annual Recurring Costs and Asset Longevity 20 Multiple Category Benefit and Bundling Opportunities 10 Project Readiness 5 Funding Availability 5 . --, Totai 1.00 100 . . . . . -· . -•· . -. --. P::,ac 1 nf1 Project Name: r AMO / Project Manager J COST ESTIMATES: Object Code Job Ledger Aclivtties 9080 Studies & Reports-Consultants 9081 Studies & Reports-Staff Labor 9082 Studies & Reports-Miscellaneous Subtotal Studies & Reports 9072 Environmental-Consultants 9073 Environmental-Staff Labor 907 4 Environmental-Miscellaneous 9075 Environmental-Maintenance Subtotal Environmental 9063 Design-Consultants 9064 Design-Slaff Overhead 9065 Design-Miscellaneous Subtotal Design 9076 Acquisttion-Consultants 9077 Acquisttion-Staff Labor 9078 Acquisition-Miscellaneous 9079 Acquisition-Purchase Subtotal Real Prope 9066 Construction-Contract 9067 Construction-Consultants 9068 Construction-Staff Labor 9069 Construction-Miscellaneous 9070 Construction-Maintenance Subtotal Construction (Attach Detailed Cost Esttmate) 9083 Furniture, Fixtures & Equipment 9085 Communications/Public Outreach 9031 Public Art Other Subtotal Miscellaneous PROJECT TOTAL FINANCING SOURCES: FUNDING TOTAL Capital Project Budget Worksheet $ $ CIP PROJECT BUDGET WORKSHEET: FY 2019-20 Current Approp 1 1 $ $ FY 19-20 FY20-21 $ $ I Project Number: r I Project Score: r FY21-22 FY22-23 FY23-24 $ $ $ $ $ $ , l FY25-28 FY29-33 Project Total ! $ $ $ $ $