CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 8 Item #14 CITY COUNCIL AGENDA REPORT December 17, 2024 Public Works - Engineering Division TITLE: ADOPT A CIP PROCESS AND PRIORITIZATION STRATEGY SUMMARY The Capital Improvement Program (CIP) guides the City’s long-term, strategic decision-making regarding the construction, repair, and replacement of the City’s assets, including facility buildings, parks, streets, miscellaneous City facilities, stormwater, water, and sewer systems. The Capital Improvement Program is essential for strategic infrastructure planning, ensuring reliable asset management, financial efficiency, regulatory compliance, and risk mitigation; it supports community development, aligns projects with organizational goals, enhances operational efficiency, and fosters transparency with stakeholders. A CIP prioritization process using a systematic approach to rank projects is intended to help the City allocate resources effectively and make data-driven decisions on capital investments. A CIP Process and Prioritization (CIPPP) strategy that aligns with the ONE Pleasanton Strategic Plan and community input is an essential step in ensuring resources are effectively allocated to the most critical projects, helping to address urgent needs, optimize funding, and meet regulatory deadlines, while acknowledging local priorities. The proposed prioritization evaluation is developed around six key categories, each with a weighted scoring system, to assess the relative importance of various projects. The process also establishes procedures for excluding annual core and enterprise-funded programs from prioritization and introduces a sunset clause to remove outdated or stalled projects from the CIP. Notably, the CIP prioritization aligns with Pleasanton's broader strategic goals, particularly in sustainability and environmental impacts, ensuring necessary capital investments and supporting the City’s long- term vision for growth and improvement. The adopted CIPPP strategy and guidelines will be used to establish the City’s future Five-Year Capital Improvement Program. RECOMMENDATION 1. Adopt the CIP Process and Prioritization (CIPPP) strategy 2. Approve a list of Annual Core Capital Improvement Program Projects 3. Approve excluding CIP prioritization strategies on the “Annual Core Capital Improvement Program Projects” and enterprise-funded Capital Improvement Program (water and sewer) BACKGROUND With the City facing financial challenges and constrained staff resources, it is critical to have a structured, well-defined, and organized strategy that is data-driven and aligned with the ONE Pleasanton Strategic Plan and other relevant quantitative and qualitative community input. A well-defined CIP process and project prioritization strategy will assist the City with decision- making regarding resource allocation. The proposed methodology for prioritization is intended to guide an objective process, removing subjectivity when making decisions on investments to Page 300 of 893