City Council

Rico E. Medina, Mayor Marty Medina, Vice Mayor "The City With a Heart" Sandy Alvarez, Councilmember, District 1 Tom Hamilton, Councilmember, District 2 Michael Salazar, Councilmember, District 3 AGENDA SAN BRUNO CITY COUNCIL SPECIAL MEETING CITY COUNCIL RETREAT January 24, 2025 12:00 PM IN PERSON* MEETING LOCATION San Bruno Recreation & Aquatic Center, Community Room 251 City Park Way San Bruno, CA 94066 *Please turn off all electronic devices before the start of the meeting to prevent disruptions* PUBLIC COMMENT: In person attendees who want to provide public comment, will be asked to fill out a speaker card and turn it into the City Clerk. Public comment may also be emailed to CityClerk@sanbruno.ca.gov. Comments received via email will not be read aloud during the meeting. ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the City Clerk’s Office 48 hours prior to the meeting at (650) 616­7061 or CityClerk@sanbruno.ca.gov. *Any disclosable public writings related to an open session item on a regular meeting agenda and distributed by the City to at least a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at the City Clerk's Office at City Hall located at 567 El Camino Real, San Bruno, California during normal business hours. In addition, the City may also post such documents on the City’s Website at sanbruno.ca.gov/AgendaCenter. 1. CALL TO ORDER 2. ROLL CALL 3. STUDY SESSION Public comment will be requested after each topic in this section a. City Council’s Annual Strategic Initiatives & Prioritization Retreat 4. ADJOURNMENT – The next Regular City Council Meeting will be held on January 28, 2025 at 7:00 pm. POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on January 22, 2025, by 5:00 pm. 1 of 33 Memorandum To: Alex McIntyre, City Manager From: Nick Pegueros, Administrative Services Director & CFO Date: January 24, 2025 Subject: Annual Strategic Initiatives & Prioritization Retreat ____________________________________________________________________________ Attached, please find staff memos prepared for the City Council’s Annual Strategic Initiatives and Prioritization Retreat on January 24, 2025, as follows: 1. Preliminary General Fund Forecast 2. Draft Fiscal Year 2025-26 Budget Principles 3. FY25/Q2 City Council Strategic Initiatives Update 4. Capital Improvement Program Prioritization Preview 2 of 33 City Council Goal Setting Page 1 of 32 January 24, 2025  3 of 33 City Council Goal Setting Page 2 of 32 January 24, 2025 Memorandum To: Alex McIntyre, City Manager From: Nick Pegueros, Administrative Services Director & CFO Date: January 24, 2025 Subject: Preliminary General Fund Forecast ____________________________________________________________________________ This memo aims to transmit a preliminary financial forecast to provide an order of magnitude surplus or deficit for the General Fund. This initiative is a component of the City’s updated budgeting process, which kicked off in the later part of 2024 with the Capital Improvement Program. Forecasts are vital for effective fiscal planning and sustainability of the City's operations and services. The forecast will inform strategic decision-making, particularly in helping to identify “off-ramp” options if the City must alter operations due to a material shift in the major factors affecting City finances. Understanding External Factors and Their Impacts The forecast requires understanding external factors and their impacts on major revenues and expenditures. A comprehensive forecast also assumes resources and requirements beyond a single year’s revenue and expenditures as follows: Resources include current and pre-paid revenues, sale of assets, grants, and reserve funds, the vast majority outside the City’s direct control. We focus on analyzing current and future financial resources available to the City. This includes the City’s largest revenue sources, property and sales taxes, which are closely monitored and forecast by HdL Companies, the City’s revenue consultant. Resources such as user fees, intergovernmental and reimbursement revenues, and fines require more nuanced analysis, given that the revenues are based on activity levels tied to various inputs. Requirements reflect current operating, capital, and non-current expenditures, such as unfunded capital improvement program needs. Our forecast incorporates assumptions of employee wages, pension and fringe benefits, utilities, contract and professional services, and investments in capital infrastructure. Key factors and assumptions Within the forecast, City staff incorporated several key assumptions likely to have a material impact on either resources or requirements. These assumptions are early assessments and will be adjusted as new information is available, specifically as the budget process commences. Assumptions and the potential impact on the General Fund’s operations include: • Structural property tax questions. The forecast incorporates an assumption of continued growth, though at a slower rate than in recent years. This reflects growing indications that commercial property is undergoing a substantial change, along with the uncertainty around several funding sources. Two sources of funding are at risk, both due to the State’s obligations to local educational agencies. These sources – excess educational revenue augmentation fund, or excess ERAF, and in-lieu vehicle license fee, or VLF – are redirected from local agencies to school agencies to meet their required funding levels. The County has informed the City that VLF uncertainty continues, with the 4 of 33 City Council Goal Setting Page 3 of 32 January 24, 2025 Memorandum Preliminary General Fund Forecast January 24, 2025 ____________________________________________________________________________ funding shortfall in the immediate term becoming increasingly pronounced. The County is seeking legislative remedies and the VLF shortfall has been included in previous State budgets; however, the actual timing of the payments has lagged several years, serving as a signal of the endangered nature of this revenue stream. • Maintenance of current services. The forecast assumes providing largely the same services as those approved in the adopted budget. Service offerings over the period are not substantially changed; staffing levels and associated revenues and expenditures are assumed to continue operating under current conditions, except in cases where a known change is pending and reasonably quantifiable. One example is for transfers to other funds, such as to the Recreation and Aquatic (RAC) Fund – expenditures in the RAC Fund are expected to exceed revenues and require ongoing General Fund support. Additionally, staff recommends CityNet operations transfer to the General Fund during the current fiscal year, with the expectation that it will cease operations in the immediate- to near-term. • No service rollover. A critical distinction between budgeted services and services delivered is a function of staff capacity. The City currently has over 25 vacancies, which hinders staff’s ability to fulfill all service-level commitments in the adopted budget. In a given period, City staff will attempt to use other sources, such as contractors and outside vendors, to deliver services where unavailable through regular staff. The forecast attempts to incorporate capacity through use of historical data and treats any services undeliverable due to capacity constraints as foregone instead of deferred as in capital infrastructure projects. • No known one-time sources or needs. There are no substantial one-time revenues, either in resource availability or requirements included in the forecast. One-time sources, such as the now-expended American Rescue Plan Act (ARPA), are excluded as are one-time uses such as winter storm recovery, due primarily to uncertainty around them. The forecast assumes that these will happen at some point and incorporates them through sensitivity analysis to mitigate the impact of timing given the uncertainty. • Known and anticipated future events. Changes in revenue and expenditure streams, where known or reasonably anticipated, are included in the forecast in the respective years where impact is realized. Major drivers of this are sales and property tax changes due to stages of development or redevelopment. For instance, redevelopment of the Tanforan shopping center will result in a medium-term decrease to the associated baseline revenue level, followed by an increase in property and sales taxes once the property is fully redeveloped. The forecast anticipates an operating deficit in each of the projected years. Expenditures and transfers out are expected to exceed revenues and transfers in, with the difference growing throughout the forecast period. Most critically, however, is that the General Fund does not have sufficient resources to substantially contribute to deferred maintenance of City infrastructure and facilities. Next Steps City staff will present a refined forecast at the City Council’s February 11th meeting. The initial phase of our forecasting initiative will center around refining a linear best-fit model. This model will serve as a foundational baseline for our financial predictions. Following this: Page 2 of 3 5 of 33 City Council Goal Setting Page 4 of 32 January 24, 2025 Memorandum Preliminary General Fund Forecast January 24, 2025 ____________________________________________________________________________ • Identifying key revenue sources and historical seasonality patterns in order to identify material changes as soon as possible on an ongoing basis. Key considerations include: o Cannabis Tax. The City anticipates receiving the dispensary operator Embarc's first quarterly filing in February. o Use of Measure G and Measure Q in future budgets. Specifically, the Council will provide direction on how unrestricted Measure G revenues relate to the restricted bond-funded projects authorized under Measure Q. o Dedicating a greater share of sales tax revenues to operations, including enhancements to service levels. • Incorporating uncertainty (e.g., +/- 1% sales tax growth rate) to help identify ranges of potential outcomes rather than simple point estimates, as well as sensitivity analysis and scenario planning. Components subject to substantial volatility include: o Sales and hotel taxes (transient occupancy taxes) and investment income. These components are particularly sensitive to wider economic conditions, and an economic downturn is likely within the forecast window, even though its timing and magnitude are uncertain. o Impacts of labor negotiations. All contracts are up for negotiation in 2025, and the outcome will impact City finances' trajectory. As these contracts typically cover multi-year spans, this component reflects actual labor market changes in recent years and the anticipation of future changes. Page 3 of 3 6 of 33 City Council Goal Setting Page 5 of 32 January 24, 2025  7 of 33 City Council Goal Setting Page 6 of 32 January 24, 2025 Memorandum To: Alex McIntyre, City Manager From: Brian Adam, Assistant to the City Manager Date: January 24, 2025 Subject: Draft Fiscal Year 2025-26 Budget Principles ____________________________________________________________________________ Budget principles guide the development of the City Manager’s recommended budget and the City’s overall long-term financial sustainability. The principles serve as the backbone for prudent financial management and strategic planning, ensuring that resources are allocated in alignment with City Council priorities while achieving a balanced budget and focusing on long-term financial sustainability positions the City to navigate financial uncertainties. Furthermore, budget principles foster transparency and accountability. This strategic approach not only strengthens the City's financial health but also optimizes services to the community and promotes the City as an employer of choice. 1. Actively pursue revenue enhancements and strive to achieve full cost recovery for all fee-based services, except where the City Council establishes a public interest in providing a subsidy. 2. Enhance and maintain core City services and infrastructure by prioritizing City Council adopted initiatives and strategies that contribute to the quality of life in San Bruno. 3. Promote the City’s long-term financial sustainability through monitoring and reporting on changes in unfunded liabilities and including those changes in the City’s long-term forecast. 4. Evaluate one-time revenues for highest impact and best investment. 5. Improve productivity through continual review of City services, identifying new programs/ initiatives and enhancing, reducing, or eliminating existing programs. 6. Proactively manage the loss of institutional knowledge through succession planning efforts including the ability to provide for overlap in critical positions, at the discretion of the City Manager. 7. Manage staff capacity to efficiently deliver services to the community through investment in new technologies that drive efficiency and productivity. 8. Incorporate a budget assumption for employee vacancies and resulting salary savings into the forecast. 9. Develop programs and initiatives that strengthen San Bruno’s standing as an employer of choice to retain and attract highly qualified personnel. 10. Clearly define the cost and timing of all cash outlays associated with major projects, to allow investment of idle cash, while maintaining liquidity. Page 1 of 2 8 of 33 City Council Goal Setting Page 7 of 32 January 24, 2025 Memorandum Draft Fiscal Year 2025-26 Budget Principles January 24, 2025 ____________________________________________________________________________ 11. Communicate the City’s financial position by continuing to refine the budget document and provide comparison to actual results, while enhancing the public’s access to financial information. 12. Increase reserve funds, on an annual basis, as funds are available. Page 2 of 2 9 of 33 City Council Goal Setting Page 8 of 32 January 24, 2025 Memorandum To: Alex McIntyre, City Manager From: Nick Pegueros, Administrative Services Director & CFO Date: January 24, 2025 Subject: FY25/Q2 City Council Strategic Initiatives Update ____________________________________________________________________________ This memo transmits the FY25 City Council Adopted Strategic Initiatives and a high-level summary of progress on the initiatives. BACKGROUND On February 2, 2024, the City Council held its annual retreat to review the City’s Strategic Initiatives and determine priorities for the upcoming fiscal year. During the retreat, the Council identified: • Five (5) Top Priority Initiatives: Initiatives designated as top priorities allow the City Manager to reallocate resources from other initiatives, programs, or services to ensure meaningful progress. • Twelve (12) FY24 Initiatives Continuing into FY25: These are carryforward initiatives representing ongoing efforts that will extend into the new fiscal year. • Thirteen (13) FY24 Initiatives Placed on Hold: These initiatives are deferred due to limited resources, with minimal or no work expected during the fiscal year as staff focus on other priorities and operations. On February 13, 2024, the City Council formally adopted the FY25 Strategic Initiatives. These initiatives are in addition to the operating initiatives outlined in the annual operating and capital improvement budget. DISCUSSION City Council identified five top priority initiatives for Fiscal Year 2025 (FY25) to address key challenges and opportunities within the community. These initiatives represent critical areas of focus where dedicated efforts and resources are allocated to drive progress and achieve meaningful outcomes. Each initiative aims to improve infrastructure, enhance public services, or ensure fiscal sustainability. Below is a detailed overview of these initiatives, their objectives, and their current status. Top Priority Initiatives: • Assess the fiscal feasibility of the Transit Corridor Plan The Transit Corridor Pian (TCP), adopted in 2013, established a vision, development framework infrastructure needs, and an implementation plan for revitalizing the major corridors of El Camino Real, San Bruno, San Mateo and Huntington Avenues within San Bruno. The plan identified 26 implementation actions, which were to be implemented in the Short Term (1-3 years), Mid-Term (4-6 years), and Long Term (6-10 years). 11 years Page 1 of 5 10 of 33 City Council Goal Setting Page 9 of 32 January 24, 2025 Memorandum FY25/Q2 City Council Strategic Initiatives Update January 24, 2025 ____________________________________________________________________________ have passed since the TCP adoption, and the City should assess how many of the implementation actions were completed, and what kept other actions from being completed. Staff believes financial reasons were a key factor in why more implementation actions were not completed. While most actions were assigned to the City, achieving the vision relies on a combination of City and private efforts. There are significant costs associated with achieving the TCP vision for both the City and property owners. The proposed assessment of the fiscal feasibility would identify realistic funding options for the City to fund public improvements to fulfill the TCP vision, with analysis of case studies where other communities have made similar investments and how the tax base was strengthened. The assessment would also identify what new private development in the current market actually requires for the project to be financially feasible. This analysis would introduce the scope of changes in land use development regulations the City should consider adopting to facilitate development projects, as well as methods the City can utilize to incentivize owners and tenants to improve their properties. o Status: The City selected Economic & Planning Systems, Inc. (EPS) to prepare this analysis. EPS has provided the City with similar services for the Bayhill Specific Plan and Tanforan. The analysis is underway, and a presentation for the City Council is tentatively scheduled for Q4 of FY25. This analysis is the first step in a larger long-range planning and economic development effort that was introduced to the City Council and Planning Commission on July 23, 2024 and November 19, 2024. • Conduct a Comprehensive Employee Classification and Compensation Study An employee classification and compensation study is a comprehensive review of the City's current classification system (job descriptions) and comparable salaries for similar work in the City's comparative agencies. For San Bruno, a consultant will conduct a total compensation survey with the equivalent classification established in each comparative agency, which considers base pay, pay premiums, health and welfare benefits, pension/retirement benefits, vacation allowances, paid holidays, paid and unpaid closures, etc. The classification study can take up to 18 months to complete, given the level of data collection and the number of parties involved. A compensation study takes an additional six months. The resulting reports do not guarantee any impact on compensation, given that compensation is subject to negotiations with the applicable bargaining unit representatives. Estimated project completion is June 30, 2026. o Status: The Administrative Services Department was created at the start of the fiscal year (July 2024), and with the consolidation of several Divisions into one, staff worked on filling critical positions/roles within the Department. The positions have a role in initiating the work involved in this effort. The Department is currently preparing a compensation policy for City Council consideration. Once the policy is final, staff will begin the RFP process for a total compensation survey and a comprehensive classification study. Estimated completion remains June 30, 2026 for the entire project. Page 2 of 5 11 of 33 City Council Goal Setting Page 10 of 32 January 24, 2025 Memorandum FY25/Q2 City Council Strategic Initiatives Update January 24, 2025 ____________________________________________________________________________ • Finalize Downtown Park Improvement Plans: Centennial Plaza, Florida and Posy Parks The Downtown Park Projects are three independent projects that will improve the aesthetics, vitality, and public use of the Downtown. The Centennial Plaza provides residents with modern, accessible, and aesthetically pleasing gathering spaces. The groundbreaking ceremony will officially kick off the construction phase, which includes a range of enhancements designed to elevate the plaza's functionality and appeal. Contributions from the community partners including San Bruno Community Foundation and San Mateo County Measure K were instrumental in bringing this project to the construction phase. The Florida Park Project is currently under construction and is anticipated to be completed in Fall 2025. The project features a multi-use lawn, walkways and benches, a small adult fitness area, a fenced play area, a new fence, and heart themed seating. The Posy Park project scope of work includes an examination of improvements to the existing inoperable fountain, existing artwork that is in need of repair, improved landscaping, bike lockers, and benches. Staff is working with Waterworks and a leak detection company to obtain a scope of work for the leak repair and resurfacing of the fountains. Work may start in the spring and it is anticipated to be completed by the end of 2025 o Status: The newly renovated Centennial Plaza received a ribbon cutting ceremony on Friday, October 25, 2024. Florida Park’s groundbreaking ceremony was held on Friday, November 15, 2024. Posy Park improvements have not started yet, and therefore are being carried forward into the next Fiscal Year. • Initiate Downtown Beautification Efforts: Greening, Banners, and Marquee Sign This is a multifaceted project that includes the revitalization of the planters along San Mateo Avenue and the replanting of street trees on Jenevein Avenue and the southern end of San Mateo Avenue. This portion of the project will require identification and repair of the lateral irrigation lines, sidewalk work, excavation and replanting of planters, and ongoing maintenance. There are many unknowns with the under-sidewalk irrigation system that will not surface until work has begun. Along with the greening efforts, the north and south end medians will be addressed. A separate part of the project is to design and produce a new collection of custom- themed City street pole banners for various times of the year. These are under production currently and should be finished in the next few months. There would be three sets of new banners that would be rotated seasonally as follows: o Holiday/winter banners for mid-November through mid-January; o Patriotic/summer banners for Memorial Day through Labor Day; and, Page 3 of 5 12 of 33 City Council Goal Setting Page 11 of 32 January 24, 2025 Memorandum FY25/Q2 City Council Strategic Initiatives Update January 24, 2025 ____________________________________________________________________________ o General San Bruno theme banners for remaining times of the year. The final part of the project is the replacement of the damaged marquee sign at the southern end of San Mateo Avenue (at El Camino Real) with a scrolling digital/LED board. This will require additional study and coordination with the City’s Transit Corridors Plan. The San Bruno Community Foundation awarded a grant of $0.35 million to fund this project. o Status: These projects are underway or have not started yet, and therefore are being carried forward into the next Fiscal Year. • Stabilize CityNet's Fiscal Sustainability As of June 30, 2023, the CityNet Fund (Fund) had a negative equity balance of $21.5 million, comprised of negative cash and non-cash liabilities such as unfunded pension liabilities. The negative equity balance included $16.0 million owed to the General Fund due to multi-year reliance on advances from the General Fund to sustain operating expenditures, including franchise fees, internal service allocations, and general overhead allocations. The Fund has been experiencing annual operating losses, including losses of $0.79 million in FY23 and $0.86 million in the prior year. City staff is working to improve CityNet's revenue and subscription margins. One major step was increasing service rates between 9% and 12% effective August 1, 2023, which improved year-over-year operating Income for the first six months of Fiscal Year 2023-24 (FY24). For City Council Adopted Budget- Fiscal Year 2024-25 (FY25), additional rate increases, potentially between 2% and 5%, are being considered to further financial stability. In FY24, City staff will evaluate whether rate increases are sufficient to begin repayment of the amounts owed to the General Fund. The CityNet Enterprise may continue to be an ongoing concern if rate increases are insufficient to repay amounts owed to the General Fund. On April 29, 2024, City Council authorized Issuance of a formal request for proposal (RFP) for the Acquisition of San Bruno CityNet Services. RFPs are due on May 31, 2024, and staff wilI proceed judiciously to develop disposition plan for the enterprise. o Status: The City Manager’s Office is currently negotiating a sale of the CityNet Enterprise to Comcast. An update is scheduled for the January 28, 2025 City Council meeting. Staff has also initiated the meet and confer process with the represented groups to discuss critical workforce impacts. FY25 Strategic Initiatives Matrix Attached to this memorandum is a matrix of FY25 Strategic Initiatives, reflecting the status of each initiative as of December 31, 2024 (FY25/Q2). The matrix uses a color-coded system to provide a visual representation of progress. Each box represents approximately 20% of the work effort anticipated for the project. A complete project will have all five boxes in green. A yellow box indicates that staff is currently working on the project. A red box indicates that work is suspended pending resources or further direction from City Council. NEXT STEPS Page 4 of 5 13 of 33 City Council Goal Setting Page 12 of 32 January 24, 2025 Memorandum FY25/Q2 City Council Strategic Initiatives Update January 24, 2025 ____________________________________________________________________________ At the City Council’s retreat on January 24, 2025, staff recommend that City Council consider providing direction on the following topics: 1. FY26 top priority initiatives 2. FY25 initiatives carrying forward to FY26 3. Remove initiatives on hold pending resource allocation Page 5 of 5 14 of 33 City Council Goal Setting Page 13 of 32 January 24, 2025 City of San Bruno FY25 Strategic Initiatives - FY25/Q2 Update As of December 31, 2024 % Complete as of FY25 Top Priority Initiatives 12/31/24 0- 21- 41- 61- 81- Ref No. Initiative 20 40 60 80 100 1 Assess the fiscal feasibility of the Transit Corridor Plan 2 Conduct a comprehensive employee classification and compensation study 3 Finalize Downtown Park improvement plans: Centennial Plaza, Florida and Posy Parks 4 Initiate Downtown beautification efforts including greening, banners, and marquee sign 5 Stabilize CityNet’s fiscal sustainability % Complete as of FY25 Initiatives Carried Forward from FY24 12/31/24 0- 21- 41- 61- 81- Ref No. Initiative 20 40 60 80 100 6 Adopt an Affordable Housing Fund Implementation Plan 7 CAFE Age Friendly Certification Process 8 Cannabis Regulations and Permitting 9 CBC Governance and Workplan Review 10 City Offices Renovations Citywide Wildfire Mitigation Project & Public Education Programs Covering Fire Safety and 11 Emergency Preparedness 12 Climate Action Plan 13 Crestmoor Wildfire Mitigation Project 14 Expand and improve productivity for the Community Development Department 15 Explore alternative options to the regulated output (RO) streetlight system 16 HEART Committee, TSPC Committee, Culture & Arts Committee Review 17 Implement Online Permitting % Complete as of Initiatives On Hold Pending Resource Allocation 12/31/24 0- 21- 41- 61- 81- Ref No. Initiative 20 40 60 80 100 18 Adopt-a-Drain Program 19 Affordable housing, including development partnership 20 City of San Bruno sign/arch at Caltrain Station - Public Art 21 Citywide metrics 22 Citywide street sweeping 23 Community fiber upgrade 24 Designation of special parking zones downtown Develop an economic development initiative around attracting businesses and developers to 25 execute on the Transit Corridor Plan vision 26 Develop an economic development program focused on small, medium, and large businesses 27 Downtown Streetscape Plan Implementation 28 Establish a City Council ad hoc committee to examine solutions to address citywide parking 29 Expanded Citywide way finding signage (excludes Downtown parking lots way finding signage) 30 Summer Saturdays or Sundays for street closures Presented alphabetically, by category Complete In progress On hold 15 of 33 City Council Goal Setting Page 14 of 32 January 24, 2025 Memorandum To: Alex McIntyre, City Manager From: Nick Pegueros, Chief Financial Officer Date: January 31, 2024 Subject: Capital Improvement Program (CIP) Preview ____________________________________________________________________________ As part of the budget development process for Fiscal Year 2025-26 (FY26), staff will provide City Council with a presentation of projects identified for the FY26 capital improvement program. The presentation will focus on the pilot CIP prioritization process. Additional information about the prioritization process is attached. 16 of 33 City Council Goal Setting Page 15 of 32 January 24, 2025 Memorandum DATE: January 24, 2025 TO: Alex D. McIntyre, City Manager FROM: PR Matthew Lee, P.E., Public Works Director Ana Morales, Management Analyst SUBJECT: Proposed Implementation of the Capital Improvement Program (CIP) Prioritization Pilot Program for the Fiscal Year 2025-26 Capital Improvement Program Budget Process BACKGROUND: Like many communities, the City of San Bruno (City) takes into consideration various factors when implementing capital projects, including budgetary constraints, staffing resources, external pressures such as unfunded mandates, and economic factors such as inflation, among others. Capital Improvement Program (CIP) project selection is always a challenging balance, and rarely can all projects be fully funded in any given cycle. Therefore, the City’s goal is to develop an equitable and transparent process for selecting projects, which takes into account factors that most communities value when prioritizing projects, such as community equity, health and safety, asset condition, and economic impact. One of the key considerations in developing an equitable prioritization process is recognizing and addressing disparities in resource allocation across different neighborhoods. The City has made a commitment to ensuring that underserved and low-resource areas receive the infrastructure investments they need. This commitment is outlined in Program 16.a. of the adopted 2023-2031 Housing Element 1, which emphasizes the prioritization of capital improvements in low-resource areas, particularly neighborhoods east of El Camino Real. To guide these efforts, we utilize the California Tax Credit Allocation Committee/Housing and Community Development Opportunity Area Map (see Figure 1 below). This map categorizes areas within San Bruno based on access to opportunity and resource levels, ranging from Low Resource to Highest Resource. Prioritizing capital improvements in low-resource areas helps ensure that communities with historically limited access to services and opportunities are not overlooked in the City's infrastructure planning. The Equity criteria in Table 1 is directly informed by this map and plays a crucial role in ensuring that our CIP investments align with the City's goals for equitable development. By factoring in these geographic and social considerations, we aim to prioritize projects that directly support the needs of the most underserved areas in the City, fostering inclusive growth and improved living conditions for all residents. 1 https://www.sanbruno.ca.gov/DocumentCenter/View/5944/2023-2031-Housing-Element?bidId= 17 of 33 City Council Goal Setting Page 16 of 32 January 24, 2025  Figure 1: California Tax Credit Allocation Committee/Housing and Community Development Opportunity Area Map Given the multitude of factors that can impact the CIP project selection process each budget cycle, in January 2024, City Council approved a pilot program that refined the City's approach to CIP project recommendation to deliver CIP projects and infrastructure investments across the City in an equitable and efficient manner. The pilot takes into consideration a project’s priority ranking across the ten objective prioritization criteria as listed in Table 1, which then informs City staff’s recommended CIP budget to City Council after available funding and staffing capacity is applied to the prioritized and ranked list. Table 1: CIP Prioritization Criteria Criteria Points Definition Capital improvements in low resource areas, such as 1 Equity 13 neighborhoods east of El Camino Real 2, and/or proximity to a 100% affordable housing development(s). Provides health resources or opportunities specifically designed to reduce health and safety disparities; addresses an immediate life Health and Safety safety risk, imminent environmental hazard or health threat; and/or 2 13 Issues improves the public health, increases life expectancy, provides healthy living opportunities, or increases access to community services. The measure of the current state of a given asset and how well the asset can perform its intended function; and/or the level and quality 3 Asset Condition 11 of service of an asset and whether the project improves or expands resources or opportunities for residents. 2 https://www.treasurer.ca.gov/ctcac/opportunity.asp 18 of 33 City Council Goal Setting Page 17 of 32 January 24, 2025  Supports the economic growth, City fiscal sustainability, community 4 Economic Prosperity 11 economic vibrancy, and business attraction and retention. Promotes urban greening; improves the natural environment; promotes sustainability by integrating green infrastructure, low- 5 Environment 10 impact design, or other sustainable strategies; and/or promotes resilience by reducing the emergency impact of natural disasters, including large-scale effects of climate change. Council Strategic 6 10 Identified as a City Council Strategic Initiative 3. Initiative Regulatory mandates imposed by the State or Federal government Regulatory and 7 9 that, if not completed in a timely manner, may include varying Legal Mandates degrees of fines or lawsuit risk for the City. Availability of 8 External or 8 Existing funding sources outside of City funds. Dedicated Funding Collaboration with Existing collaborative opportunities with other agencies and/or Other Agencies/ projects with multiple asset category benefits; and/or level of 9 8 Community community support for the project (i.e., letters of support and/or Organizations funding commitment letters). Project design (as applicable: feasibility study completed, schematic design completed, CEQA completed, right of way 10 Shovel Ready 7 acquisition completed, regulatory compliance completed, and construction drawings completed) and/or planning phases are completed TOTAL 100 City Council retains full discretion to adopt the City’s recommended CIP as part of their budget deliberations. DISCUSSION: Next Phase of the Pilot Program The next phase of the pilot program will begin with the Fiscal Year 2025-26 budget process and will ensure that CIP projects are selected and recommended through a transparent, equitable, and data-driven approach, while continuing to incorporate community input and strategic alignment with City goals. Overview of CIP Project Recommendation Three factors dictate how a CIP project is recommended for an adopted CIP budget and are considered for all proposed CIP projects submitted through the online CIP Project Suggestion form. These factors include (in order of consideration): 1. CIP prioritization ranking 2. Funding availability 3. Staffing availability Once a project is prioritized, funding and staffing resources are then applied to the highest ranked projects. CIP projects are then recommended for the CIP budget based on the overall assessment of these collective factors, all of which contribute to priority decisions. 3 https://www.sanbruno.ca.gov/924/City-Council-Strategic-Initiatives 19 of 33 City Council Goal Setting Page 18 of 32 January 24, 2025 The fourth factor is: 4. City Council Approved CIP This fourth factor can be applied in two ways by City Council: 1) a CIP project already being recommended through the prioritization and ranking process can automatically be adjusted by majority council vote or 2) City Council may approve a new CIP project idea outside of the prioritization and ranking process, as long as the project qualifies as a capital improvement project (Attachment 1). As with previous years, City Council will determine the final list of projects that are incorporated into the adopted CIP budget each year. CIP projects that are not recommended for the upcoming budget are kept on the unfunded list of projects that will be prioritized and considered as funds and staffing availability becomes available. Figure 2 below depicts the order in which these four factors influence a CIP project’s inclusion in the CIP budget. All four factors are described in further detail in the Capital Improvement Program Project Policy & Procedural Guide (Attachment 2). Figure 2: CIP Project Selection Factors Sample Prioritized List In Spring 2024, staff internally launched the online CIP Project Suggestion form and had project managers complete the nomination form for new CIPs being introduced as part of the Fiscal Year 2024-25 CIP budget process. The sample prioritized list is as follows (ranked from most points (#1) to least (#10)): CIP Program Project Name 1 Parks Downtown Beautification Project Pavement Management Program - 2024-25 Street Rehabilitation 2 Streets Project 3 Technology Police Station - Radio System 20 of 33 City Council Goal Setting Page 19 of 32 January 24, 2025  4 Streets Sidewalk Repair Program - FY2024-25 Sidewalk Repair Project City Fleet EV Infrastructure Development and Implementation 5 Facilities Project 6 Parks Citywide Baseball Field Lighting & Fencing Upgrades 7 Technology Computerized Maintenance Management System 8 Parks Athletic Field Scoreboard Replacement 9 Parks City Hall and Library Irrigation and Landscape 10 Parks Crestmoor Fields CONCLUSION: Next Steps Project Submission Process Projects will be submitted by staff or City Councilmembers (including on behalf of residents) via an online CIP Project Suggestion form. In order for a City Councilmember to submit a project, a second Councilmember must concur with the nomination and be indicated on the submission form. The City’s online CIP Project Suggestion form can be accessed through: www.sanbruno.ca.gov/CIPNomination Nominators will be asked to log-in at the top-right corner of the page (via the following icon: ) using the following credentials: Account Name: CIPNomination Password: CIP_Survey_123! Each new proposed CIP project submitted through the online form will be evaluated against the factors listed in Overview Of CIP Project Recommendation above. CIP project submissions will now have a deadline of October 31. Any projects submitted after the October 31 deadline will be added to an unfunded list of projects that will be prioritized and considered as funds and staffing availability becomes available. Annual Schedule The CIP budget cycle now begins in the fall, with the final draft of the budget ready by end of March. The capital budget will still be adopted in June as in previous years. See Attachment 3 for the annual schedule. Staff Support Public Works staff will be available to provide individual support for City Councilmembers as they become familiar with the new process and submission website. Public Works staff will reach out shortly after this memo to see if a meeting needs to be scheduled to discuss the submission portal. ATTACHMENTS: • Attachment 1: Infrastructure Improvement Category Guidelines • Attachment 2: CIP Project Policy & Procedural Guide • Attachment 3: Annual CIP Schedule 21 of 33 City Council Goal Setting Page 20 of 32 January 24, 2025  ATTACHMENT 1 CITY OF SAN BRUNO INFRASTRUCTURE IMPROVEMENT CATEGORY GUIDELINES Guidance: 1. MAINTENANCE • Does not materially add value to the asset or facility. • Preserves the original condition through curative or preventive measures. Maintains and preserves the • Maintains operational abilities of city property. condition of an asset or facility, • Repairs can be routine and relatively minor. or building components, to • Repairs may be urgent due to unexpected damage. restore it to an operating • Anytime the work uses City crews, it should only be managed by Maintenance condition. Supervisors. Guidance: • Minor upgrades for regulatory or code-compliance purposes. • May be identified in the adopted CIP. 2. CAPITAL • Majority of work is performed by outside contractors and project should be MAINTENANCE managed by the Facilities Division. • Complexity … Multiple trades or multiple similar maintenance projects Replaces and extends the combined into one larger project. building or facility • Does not require significant design and/or development of plans. Plans can be components without extending provided for work to be done. the useful life of the asset or • Often does not require Council Authorization. facility. Typically, includes in- • Does not require extensive Community Outreach. kind repairs or replacements. • Does not require substantial additional investigation, evaluation, or engineering (e.g. structure seismic, structural integrity). • Maintenance Improvements can be combined to form a Deferred Maintenance Project. 3. CAPITAL Guidance: IMPROVEMENT • Identified in and/or funded through the CIP. • Must require Plans, Specifications and Estimate (PS&E). Extends the useful life of an • Managed by CIP Division. asset or facility, or creates a • Complexity... Multiple similar capital maintenance projects combined into one new asset, or increases the larger project. asset value of the entire facility • Capital Maintenance Projects can be combined to form a Capital through a multiphase Improvement Projects improvement. 4. OTHER DEFINITIONS Asset Owner The primary user of a City asset, typically the client department. An asset that is capitalized upon completion or when the asset is placed into service. This includes a project that builds, replaces or improves an asset Capitalized asset (asset) (buildings, roads, parks, sewer and drainage lines, etc.), has a useful design life of at least ten years and a minimum cost of $50,000. A short-range plan that identifies capital projects and equipment purchases, Capital Improvement Program provides a planning schedule, and identifies options for financing the plan. (CIP) The City of San Bruno updates and adopts its CIP every fiscal year. A building and/or park in which maintenance, minor capital and major capital Facility projects are done. 22 of 33 City Council Goal Setting Page 21 of 32 January 24, 2025  ATTACHMENT 2 City of San Bruno Capital Improvement Program Project Policy & Procedural Guide 23 of 33 City Council Goal Setting Page 22 of 32 January 24, 2025  CITY OF SAN BRUNO TABLE OF CONTENTS Definitions………………………….…………………………………………………………………….3 Introduction……………………….…………………..……..…………………………………………..4 Project Policy and Process……………………………………………………………………………4 Overview of CIP Project Recommendation.………..………………………………………………4 Project Development…………………...……………......…………………………………………….4 1. CIP Project Initiation…………...……………………………………………………………4 a. Staff Submission…………………………………………………………………5 b. City Councilmember Submission………………………………………….......5 c. Project Scope……………………………………………….……………………6 d. Project Considerations...…….………………………………………………….6 e. Other Considerations.….………………………………………………………..6 2. Prioritization Factors………………………………………………………………………...6 3. Proposed CIP Selection.……………………………………………………………………8 a. Funding Availability…..………………………………………………………….8 b. Staffing Availability…………..……………………………………………….....8 c. City Council Approved CIP……………………………………………………..8 4. City Manager Approval…………………..………………………………………………….8 Cip Project Review And Approval Meetings.…………………………..…………………………..9 1. CIP Project Review Meeting……………………………………………………..………...9 2. CIP Budget Study Session……………………..………………………………………......9 3. Budget Approval Meeting………………….………………………………………………10 4. Adopted CIP Budget…………………....………………………………………………….10 Attachments…………………………………………………………………………………………….10 2 24 of 33 City Council Goal Setting Page 23 of 32 January 24, 2025  CITY OF SAN BRUNO DEFINITIONS Term Definition A short-range plan that identifies capital projects and equipment Capital Improvement purchases, provides a planning schedule, and identifies options for Program (CIP) financing the plan. The City of San Bruno updates and adopts its CIP every fiscal year. Replaces and extends the building or facility components without Capital Maintenance extending the useful life of the asset or facility. Typically, includes in- kind repairs or replacements. A concept for a CIP project included in the Capital Plan and which has a Capital Need planning-level scope, schedule and cost estimate. The long-term list of unconstrained capital needs developed by the Capital Plan Public Works Department. The Capital Plan is a living document that is revised as needed by the Public Works Department. The City Council’s adopted list of financially constrained projects (1 year) prepared by the Public Works Department and Finance CIP Budget Department. Projects must be ranked as a prioritized project in order for it to be included in the CIP Budget. Extends the useful life of an asset or facility, or creates a new asset, or CIP Project increases the asset value of the entire facility through a multiphase improvement. CIP Project The online form containing the information required for a capital need to Suggestion Form be considered for inclusion as a CIP project. A living document that is revised as needed by the Public Works CIP Unfunded List Department, which reflects the list of ranked CIP projects, which have been identified as a project but not yet included in a CIP budget. Maintains and preserves the condition of an asset or facility, or building Maintenance components, to restore it to an operating condition. Describes the quantity, features or functions to be accomplished by Project Scope completing the project. 3 25 of 33 City Council Goal Setting Page 24 of 32 January 24, 2025  CITY OF SAN BRUNO INTRODUCTION The goal of the City of San Bruno (City) is to deliver Capital Improvement Program (CIP) projects and infrastructure investments across the City in an equitable and efficient manner, while taking into consideration funding availability and staffing resources. In order to achieve this goal, the City must develop a long-term capital plan (in development), a CIP prioritization process, and an annually adopted CIP budget. PROJECT POLICY AND PROCESS This document serves as a guide for the City’s CIP project selection process. It defines and details the lifespan of a CIP project’s administrative lifecycle: from CIP project initiation to, if prioritized, its inclusion into the adopted CIP budget as a funded project. OVERVIEW OF CIP PROJECT RECOMMENDATION Three factors dictate how a CIP project is recommended for an adopted CIP budget and are considered for all proposed CIP projects submitted through the CIP Project Suggestion form. These factors include (in order of consideration): 1. CIP prioritization ranking 2. Funding availability 3. Staffing availability Once a project is prioritized, funding and staffing resources are then applied to the highest ranked projects. The fourth factor is: 4. City Council Approved CIP This fourth factor can be applied in two ways by City Council: 1) a CIP project already being recommended through the prioritization and ranking process can automatically be adjusted by majority council vote or 2) City Council may approve a new CIP project idea outside of the prioritization and ranking process, as long as the project qualifies as a capital improvement project (Attachment 1). All four factors are described in further detail below. PROJECT DEVELOPMENT 1. CIP Project Initiation To ensure equitability among the City’s various capital needs, all CIP projects are initiated via the City’s online CIP Project Suggestion form: http://www.sanbruno.ca.gov/CIPNomination Nominators will be asked to log-in at the top-right corner of the page (via the following icon: ) using the following credentials: Account Name: CIPNomination Password: CIP_Survey_123! 4 26 of 33 City Council Goal Setting Page 25 of 32 January 24, 2025  CITY OF SAN BRUNO CIP projects can be nominated through two routes: 1) staff submission or 2) City Councilmember submission. Community requests will come through a City Councilmember’s submission. Once a form is submitted, each new proposed CIP project will be weighted between 0 to 100 using the criteria in Section 2. Prioritization Factors and ranked alongside all other CIP projects. The weighting system described in 2. Prioritization Factors will be determined at the discretion of the City Council and the weight assigned to any criteria may be subject to change. Any projects that are not prioritized for that year’s CIP budget will remain on the City’s Unfunded List with their assigned ranking and considered as funds and staffing availability becomes available. a. Staff Submission - As a function of staff’s day-to-day work, infrastructure improvements, large-scale repairs, and ongoing maintenance and replacement projects are identified as potential capital improvements. These are often highly visible and tangible public assets such as street repaving, retaining walls, City facility upgrades, or park improvements. However, many essential CIP projects are less noticeable, including storm drain repairs, master plans, or Americans with Disabilities Act (ADA) enhancements. Other projects are intangible administrative or technology improvements and, in most cases, invisible to the general public, such as software improvements. Staff should discuss CIP project ideas with the appropriate manager, Director or City Manager for feedback and refinement. Ultimately, projects need clearly defined boundaries to identify project requirements, specifications, and resources. While this is not always feasible in the initial stages of project development, the understanding that a project will eventually require a clear and specific scope will encourage better preparation for discussing the project idea and moving it through the approval process. After receiving initial approval, staff submits their CIP project via the City’s online CIP Project Suggestion form. b. City Councilmember Submission – Councilmembers are often the recipients of residents’ suggestions and requests for capital improvements or have their own ideas for projects. In these situations, Councilmembers should first verify that the project idea qualifies as a capital improvement project (see Attachment 1). Pending this confirmation, Councilmembers can take the opportunity to: 1) educate the resident on why a CIP project may not be feasible, 2) nominate a CIP project on behalf of the resident(s) using the City’s online CIP Project Suggestion form, or 3) nominate their own project idea for consideration through the CIP Project Suggestion form. However, in order for a Councilmember to submit a CIP project, a second Councilmember must concur with the nomination. When submitting a CIP project via the online submission portal, the submitter (e.g., staff member or City Councilmember) will be asked to provide details on the project’s scope, project considerations, and any other relevant factors to take into account. To be considered for the following fiscal year’s CIP budget, a CIP project must be nominated by October 31 of the current fiscal year (i.e., to be considered for the FY2024-25 CIP Budget a CIP project must be nominated by October 31, 2023). 5 27 of 33 City Council Goal Setting Page 26 of 32 January 24, 2025  CITY OF SAN BRUNO c. Project Scope – Project scope may include the description, project size and location parameters, project purpose, and goals or deliverables, such as products, services or results. Project justifications and assumptions should support the project’s purpose and definition, and may include cost-benefit analysis, risk assessments, funding availability, or even community desirability factors. The scope should clearly state if a project is to be funded and/or completed in phases rather than as a singular body of work. If a phased project, information regarding future phases and total costs should be included. For instance, a design project should include information on the intended project’s construction phases and total estimated cost. If the project is ongoing infrastructure maintenance such as facility upkeep, or a program project such as a Master Plan element update, this too should also be clearly noted. In the scope description, constraints or restrictions may help to identify project limitations. And in some cases, project scope may be clarified by exclusions – statements about what the project will not accomplish or produce. Project scope defines a commitment to produce a body of work or end-product with the resources provided under the stated assumptions. The written scope helps to manage expectations and provide clarity to the involved parties, reduce confusion and failure, prevent scope creep, and provide transparency. d. Project Considerations - During the CIP project initiation phase, certain considerations should be weighed, including but not limited to: o Knowledge of historical information of the project; o Determining whether the project has come up for consideration before, or why it was not completed previously, including whether circumstances changed, and what lessons are to be learned from a past project proposal? o Knowing whether a project might be controversial, including whether a segment of the community strongly opposes, or is strongly supportive of the specific project? o Determining whether the project will prompt demand for further funding or resources? o Knowing whether similar projects have been completed in another part of the City? o Determining why this project should be considered a priority over others, and whether the project’s cost or benefits would be supported by the community. e. Other Considerations - Each project will differ, meaning analysis is specific to the circumstances, and diligent research and thought should be put into developing the project’s scope and justification. In summary, the goal of the project initiation phase is to identify, quantify, and assess a project comprehensively. This effort is intended to ensure that a proposed project is well thought-out, developed, and articulated thereby enabling the City Manager and City Council to make educated and rational decisions. 2. Prioritization Factors Once a CIP project is submitted via the City’s online CIP Project Suggestion form, the project will be ranked according to the criteria listed in Table 1 below. Project priority is an 6 28 of 33 City Council Goal Setting Page 27 of 32 January 24, 2025  CITY OF SAN BRUNO important consideration in the CIP approval decision. Ultimately, recommended projects should be of higher priority than others since there will never be enough money or staff resources to do every project. Table 1: CIP Prioritization Criteria Criteria Points Definition Capital improvements in low resource areas, such as 1 Equity 13 neighborhoods east of El Camino Real 1, and/or proximity to a 100% affordable housing development(s). Provides health resources or opportunities specifically designed to reduce health and safety disparities; addresses an immediate life Health and Safety safety risk, imminent environmental hazard or health threat; and/or 2 13 Issues improves the public health, increases life expectancy, provides healthy living opportunities, or increases access to community services. The measure of the current state of a given asset and how well the asset can perform its intended function; and/or the level and quality 3 Asset Condition 11 of service of an asset and whether the project improves or expands resources or opportunities for residents. Supports the economic growth, City fiscal sustainability, community 4 Economic Prosperity 11 economic vibrancy, and business attraction and retention. Promotes urban greening; improves the natural environment; promotes sustainability by integrating green infrastructure, low- 5 Environment 10 impact design, or other sustainable strategies; and/or promotes resilience by reducing the emergency impact of natural disasters, including large-scale effects of climate change. Council Strategic 6 10 Identified as a City Council Strategic Initiative 2. Initiative Regulatory mandates imposed by the State or Federal government Regulatory and 7 9 that, if not completed in a timely manner, may include varying Legal Mandates degrees of fines or lawsuit risk for the City. Availability of 8 External or 8 Existing funding sources outside of City funds. Dedicated Funding Collaboration with Existing collaborative opportunities with other agencies and/or Other Agencies/ projects with multiple asset category benefits; and/or level of 9 8 Community community support for the project (i.e., letters of support and/or Organizations funding commitment letters). Project design (as applicable: feasibility study completed, schematic design completed, CEQA completed, right of way 10 Shovel Ready 7 acquisition completed, regulatory compliance completed, and construction drawings completed) and/or planning phases are completed TOTAL 100 1 https://www.treasurer.ca.gov/ctcac/opportunity.asp 2 https://www.sanbruno.ca.gov/924/City-Council-Strategic-Initiatives 7 29 of 33 City Council Goal Setting Page 28 of 32 January 24, 2025  CITY OF SAN BRUNO The severity of priority criteria is considered in the decision-making process. For instance, the “Council Strategic Initiative” criteria is assessed to determine whether a project is or is not listed as a City Council Strategic Initiative2. If it is, the project would receive 10 points and if it is not, the project would receive 0 points. Another example is the “Availability of External or Dedicated Funding” criteria. If 75% or more of a project’s budget is covered via external or dedicated funding outside of City funds, the project would receive 8 points. If 50- 74% of a project’s budget is covered, the project would receive 4 points. And if 49% or less of a project’s budget is covered, the project would receive 1 point. Once a CIP project is rated and ranked, projects will be recommended based on funding availability, staffing availability, and whether the project qualifies as an extraordinary circumstance. 3. Proposed CIP Selection Due to limited resources, once a CIP project is submitted and prioritized, the final list of CIP projects for City Manager approval will be recommended after the consideration of three additional factors: a. Funding Availability - Certain funding sources are allowed only for certain CIP projects such as enterprise funds (e.g., water or wastewater) and/or designated grant funding. Additionally, most grants require a City contribution (i.e., match) which needs to be readily available for the CIP project to be able to be recommended. In many cases, lower priority projects are approved ahead of higher priority projects simply because there is designated funding available for the lower priority projects. The ability to leverage designated funding with grant funding for a project proposal greatly increases the likelihood a proposed project will be approved. Overall, a project funded solely by General Fund Capital Reserve money needs to be more competitive due to funding limitations and the number of projects competing for the same pot of funds. b. Staffing Availability - Staff resources are an important consideration given that time spent working on one project prevents staff time being spent on another project. There have been situations in recent years in which there is significant CIP funding, however, staffing resources do not align. Therefore, this balance needs to be considered when planning each fiscal year’s CIP budget to ensure that the community can get focused delivery of projects. This can also be accomplished through consultant contracts, however, there are inherent limitations to engaging with consultants to deliver a CIP project. Project timing and staff time requirements are therefore an important component of the number and types of CIP projects recommended to City Council. c. City Council Approved CIP – This factor can be applied in two ways by City Council: 1) a CIP project already being recommended through the prioritization and ranking process can automatically receive an additional 25 points or 2) City Council may approve a new CIP project idea outside of the prioritization and ranking process, as long as the project qualifies as a capital improvement project (Attachment 1). 4. City Manager Approval Once all proposed CIP projects are submitted, ranked, and evaluated against staff resources, a priority list will be established by Public Works and Finance staff will 8 30 of 33 City Council Goal Setting Page 29 of 32 January 24, 2025  CITY OF SAN BRUNO consolidate all projects into a draft CIP budget that will be presented to the City Manager for consideration. Each year, the draft CIP budget will be presented to the City Manager for consideration by December 1 of the current fiscal year (i.e., the draft FY2024-25 CIP Budget will be presented by December 1, 2023). If approved for consideration, the City Manager will recommend the draft CIP budget to City Council for approval. Each year, the draft CIP budget will be recommended for City Council approval by mid- June of the current fiscal year (i.e., the draft FY2024-25 CIP Budget will be recommended for approval by June 11, 2024). CIP PROJECT REVIEW AND APPROVAL MEETINGS Finance staff will consolidate all projects into a draft CIP budget that will be presented to the City Manager for consideration. If approved for consideration, the City Manager will recommend the draft CIP budget to City Council for approval. As part of the City Manager’s and City Council’s decision-making process, three CIP-focused meetings will be held: 1. CIP Project Review Meeting The CIP Project Review meeting provides the City Manager with a forum to have an in- depth discussion with CIP stakeholders on: ● Funding availability ● Project scopes ● Priority criteria evaluation and resources ● Impacts of other considerations for CIP projects In preparation for the annual CIP Project Review stakeholder meeting, Finance staff will consolidate information on the proposed CIP projects, proposed changes to current CIP projects, and the current year’s CIP Unfunded List. The CIP Project Review package will include: ● Available funding ● Current year CIP projects ● Proposed changes to existing projects ● The current CIP Unfunded List ● Proposed changes to projects on the CIP Unfunded List ● Proposed new CIP projects ● Proposed additions to the CIP Unfunded List Each year, the CIP Project Review meeting will be held by January 31 of the current fiscal year. 2. CIP Budget Study Session After the CIP Project Review meeting, Finance staff will prepare a final draft of the CIP budget for the City Manager to present to the City Council at the CIP Budget Study Session. In preparation for the annual CIP Budget Study Session, Finance staff will prepare all 9 31 of 33 City Council Goal Setting Page 30 of 32 January 24, 2025  CITY OF SAN BRUNO accompanying Staff Reports, attachments, PowerPoints, and any other material needed or requested for this meeting. The CIP Budget Study Session agenda is to: • Remind City Council of the upcoming fiscal year’s funding availability • Recap the Proposed CIP budget and associated priority issues • Inform City Council of any changes or modifications to the current CIP budget • Answer questions City Council may have on proposed projects • Reach consensus on the Proposed CIP Funding Scenario and CIP Unfunded List City Council will conduct a final assessment and provide consensus direction to staff for CIP project funding to be included in the upcoming Budget Approval meeting to be held in mid- June, and modifications to the CIP Unfunded List, if any. NOTE: Deprioritized project ideas will be added to the CIP Unfunded List and will be ranked alongside all other unfunded CIP projects. Rejected project ideas may be brought back in following years dependent upon their priority and ranking on the CIP Unfunded List. Each year, the CIP Budget Study Session will be held by March 31 of the current fiscal year. 3. Budget Approval Meeting Staff will incorporate City Council’s direction from the CIP Budget Study Session into the proposed CIP budget brought to the Budget Approval meeting that occurs in mid-June. In preparation for the annual Budget Approval meeting, Finance staff will prepare all accompanying Staff Reports, attachments (i.e., Resolution), PowerPoints, and any other material needed or requested for this meeting. At this meeting, City Council may provide final comments or additional direction for budget adoption. City Council is asked to adopt the budget at this time, with budget funding effective on July 1st , at the start of the next fiscal year. Each year, the Budget Approval meeting will be held by mid-June of the current fiscal year. 4. Adopted CIP Budget Once the CIP budget is adopted, the final two steps to formalizing the budget will be: 1. Finance staff will post the adopted budget on the City’s website under Operating & Capital Improvements Program Budgets: https://www.sanbruno.ca.gov/Archive.aspx?AMID=36. 2. As needed per CIP project, Finance staff will update CIP project managers once all internal administrative functions are performed and funding is available for their approved CIP project, to ensure that the CIP project can move forward as soon as is feasible. ATTACHMENTS 1) Infrastructure Improvement Category Guidelines (Memo Attachment 1) 10 32 of 33 City Council Goal Setting Page 31 of 32 January 24, 2025  ATTACHMENT 3 CITY OF SAN BRUNO CAPITAL IMPROVEMENT PROGRAM ANNUAL SCHEDULE Month Milestone Activities • CIP budget posted and departments begin Adopted Capital Budget July incorporating the approved projects into their Implementation work plan for the fiscal year. • Projects are nominated by staff or City New Capital Project Councilmembers (including on behalf of October Submissions Due residents) via the online CIP Project Suggestion form. Draft Capital Budget December • Draft CIP budget prepared. Development Goals and Priorities • CIP Budget preview presented to the City January Study Session Council at their Annual Retreat. • City Manager’s Recommended CIP budget finalized. Capital Budget Study March • City Council Study Session on the Session recommended CIP budget with final input for inclusion in the full budget document. Operating and Capital • City Council considers adoption of the operating June Budget Approval and CIP budget for the upcoming fiscal year. 33 of 33 City Council Goal Setting Page 32 of 32 January 24, 2025