CAPITAL IMPROVEMENT PROGRAM
Capital Improvement Planning Develop and maintain a five-year projection of capital improvement projects based on the General Plan, Specific Plans, and on City Council approved projects. The five-year projection will be presented as part of the annual budget process. The Capital Improvement Program (CIP) will be tied to projected revenue and expenditure constraints. Future planning should consider periods of revenue surplus and shortfall, and adjust projects and programs accordingly. The five-year projection will include new capital projects, rehabilitation needs and long-term maintenance. The City’s CIP is budgeted on a multi-year basis. As a result, monies are allocated to projects in the fiscal year the funding sources are identified and available even though actual construction may begin in later years. Annual appropriations for capital projects are contained in the appropriate special funds budget. The construction contingency shall be as approved by City Council together with the approval of Plans and Specifications. The construction contingency should represent approximately 10 percent to 25 percent of the estimated construction contract amount prepared by the project engineer (Engineer’s Estimate) based on the plans, specifications and / or condition of the project area. The City Council shall be advised during the approval of plans and specifications as to the Engineer’s Estimate for construction costs and the corresponding recommended construction contingency amount. Certain capital improvement projects require the acquisition of non-City property, on a temporary and/or permanent basis, to finalize the design and construct the improvements. The tasks necessary to acquire property include but are not limited to obtaining an appraisal, survey, environmental assessments, title services, and negotiations with property owners. Staff shall seek City Council approval prior to initiating negotiations with property owners. Contracts for property acquisition shall be prepared by the City Attorney and approved and executed in accordance with the City’s Fiscal Policies. CIP Projects Irvine places a high priority on infrastructure construction, rehabilitation, and maintenance. Projects are selected, planned, and designed emphasizing practices that prevent deterioration and costly remediation efforts. This strategy extends the useful life of infrastructure improvements and provides long-term savings. Rehabilitation Plans to manage rehabilitation concentrate on specific areas each year, enabling cost management through economies of scale. This permits the City to pay for current maintenance and rehabilitation, while anticipating and planning for future needs. The two-year CIP budget provides $37.4 million in rehabilitation projects to further the City Council’s strategic priority of allocating funding to maintain the City’s aesthetics and preserve its infrastructure assets at a high level. In addition to capital expenditures, Irvine spends millions of dollars from the operating budget each year for preventive maintenance, including storm drain inspection and cleaning; graffiti and litter removal; mowing; tree trimming; and regular upkeep of traffic signals. Proper attention to preventive maintenance extends the useful life of the City’s assets and prevents expensive structural problems. The City shall actively pursue outside funding sources for all capital improvement projects.
FY 2019-21 Proposed Budget
367
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