REPORT TO THE CITY COUNCIL
FROM: Randall W. Morrison, PE, Director
Capital Projects Department
BY: ANTONIO M. bUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
JANESSA SELZER, Business Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
***RESOLUTION - Adopting the 15th Amendment to the Annual Appropriations Resolution No. 2024-122 appropriating $18,635,900 for the Capital Projects Department budget to allocate retained earnings from the Downtown Fresno Infrastructure Grant for the remaining fiscal year expenditures and reappropriate $4,254,100 from Public Works Department to Capital Projects Department. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council adopt the 15th Amendment to the Annual Appropriations Resolution (AAR) No. 2024-122 appropriating $18,635,900 of retained earnings for the Capital Projects Department (CPD) budget and reappropriate $4,254,100 from Department of Public Works (DPW) to CPD.
EXECUTIVE SUMMARY
On July 20, 2023, City Council adopted the 6th Amendment to the AAR No. 2023-185, which appropriated the $50,000,000 received from the State of California for the Downtown Fresno Public Infrastructure Improvement Projects and established the CPD. At the time the resolution was adopted, the projects to be funded by the Downtown Fresno Infrastructure Grant were not clearly defined. The capital project improvement funds were initially appropriated in the Department of Public Utilities (DPU) and DPW, with a small portion appropriated to the CPD for their initial operating budget.
The Fiscal Year 25 (FY25) City Budget includes two definitive projects: the Downtown Redevelopment Grant Water and Sewer Improvements Project and the H Street Parking Garage Project. Staff desires to transfer the appropriations for the parking garage project to the CPD budget, along with the remaining Downtown Fresno Infrastructure Grant funds. At the time of the FY25 budget build, the projects to commence in FY25 with the remaining, unallocated funds, were not fully defined, and therefore not included in the CPD FY25 budget. This amendment will transfer the H Street Parking Garage budget from the DPW budget to the CPD budget, as well as appropriate the retained earnings in the CPDs budget for other potential projects that will commence in the near future by the CPD project management staff.
BACKGROUND
The CPD serves other City departments such as DPW, DPU, Police, Fire, and PARCS to deliver the departments' capital programs. The CPD is actively managing hundreds of capital projects through the design, environmental, right-of-way, and construction phases for citywide parks, public safety facilities, street infrastructure, active transportation, wastewater, and water systems.
On July 20, 2023, the Council approved the 6th Amendment to the AAR No. 2023-185, appropriating $50,000,000 received from the State of California for the Downtown Fresno Public Infrastructure Improvement Projects and established the CPD initial budget. Of the $50,000,000 received from the State, $20,000,000 was appropriated to the DPU, $500,000 was appropriated in the CPD’s operating budget, and the remaining $29,500,000 was appropriated to the DPW capital budget. At the time of adoption, the actual projects that would be completed with the funding were not yet defined.
During FY24, the DPU identified a Downtown Redevelopment Grant Water and Sewer Improvements Project that would utilize the full $20,000,000 appropriated to the department. Several projects were evaluated, utilizing the DPW appropriations in FY24, but the only project that was identified and budgeted for in FY25 was the H Street Parking Garage Project. Staff now desire to move the appropriations from the DPW capital budget to the CPD budget for the H Street Parking Garage Project, as well as the retained earnings in the grant comprised of DPW’s and CPD’s unspent allocations in FY24. The remaining funding will be managed by the Capital Projects Department to utilize as potential projects are identified. The rollover funds in the Downtown Fresno Infrastructure Grant from FY24 are now sitting in the Capital Projects Retained Earnings Account. Potential projects currently under evaluation include complete streets improvements, storm drain improvements and other improvements that will support future housing in Downtown Fresno.
On August 15, 2024, Council approved the 6th Amendment to the AAR No 2024-122, appropriating $3,495,800 of the retained earnings from the Downtown Fresno Infrastructure Grant to the DPU capital budget to appropriate the funds needed for the Downtown Redevelopment Grant Water and Sewer Improvements Project in FY25.
The proposed 15th Amendment to the AAR No. 2024-122, will appropriate the remaining retained earnings in the CPDs budget to allow work to begin on the potential Downtown Fresno Infrastructure Capital projects, as well as reappropriate the FY25 capital budget for the H Street Parking Structure from DPW to the CPD. Detailed adjustments are in the Amendment to the AAR attached.
This item has been reviewed by the City’s Budget and Management Department.
ENVIRONMENTAL FINDINGS
This is not a project pursuant to CEQA guidelines Section 15378.
LOCAL PREFERENCE
Local preference is not applicable to this item.
FISCAL IMPACT
Adoption of the 15th Amendment to AAR No. 2024-122 will provide the necessary appropriations for the CPD to move forward on Capital Infrastructure projects funded by the Downtown Fresno Infrastructure Grant, with no impact to the General Fund.
Attachment:
15th Amendment to the AAR No. 2024-122