CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 6 of 8 request for changes in the ranking of the projects in the final ranked and prioritized project list must be reviewed and approved by the Public Works Engineering Division's City Engineer and must comply with the CIPPP guidelines. Phase 5: City Council Approval and Adoption of the Five-Year CIP With the approval of the Director of Public Works and the City Manager, the Public Works Engineering Division shall incorporate and establish the Five-Year CIP Program and seek City Council approval and adoption of the funded CIP projects list, the unfunded CIP projects list and the Five-Year CIP that will be delivered in the next CIP cycle. Annual Core Capital Improvement Projects The Annual Core Capital Improvement Program focuses on routine projects to replace critical City assets at the end of their service life. These safety-sensitive assets or those essential to core operations are funded to ensure timely repair and replacement, minimizing unplanned emergencies and meeting regulatory requirements. As recurring programs with fixed investments, these projects are excluded from the general prioritization process. For the City’s Five-Year CIP, detailed scopes and deliverables are defined for each approved annual core program project. Undefined projects will be defunded, with the funds redirected to the general CIP prioritization process. The recommended list of Annual Core Capital Improvement Program projects is outlined in Appendix A of Attachment 1. Enterprise Funded Capital Improvement Program The City’s water and sewer systems are supported strictly through enterprise funds. The Capital Improvement Program of the enterprise-funded program is defined and prioritized through the Water System Management Plan and the Sewer System Management Plan - both of which are approved and adopted by the City Council - and the City’s commitment and responsibility to sustain the enterprise fund. Therefore, enterprise-funded Capital Improvement Program projects (water and sewer) are excluded from the general prioritization program. Sunset Clause for Projects The CIPPP proposes a “sunset” clause for projects that do not progress within two CIP cycles (four years), automatically removing them from the CIP unless City Council has approved established reserves. Reserve projects, often partially funded through restricted sources like Developer Impact Fees, will be reviewed biennially, with unrestricted funds reallocated after four years. Unfunded projects are recommended for removal but can be resubmitted with updated scopes and priority assessments during the development of a new Five-Year CIP cycle. CIPPP Program Updates It is essential that the CIPPP be updated regularly to ensure that prioritization remains consistent with the City’s priorities and concerns. Staff recommends that the CIPPP be reviewed and updated as necessary at the beginning of the new CIP cycle or within one year of the adoption of an updated ONE Pleasanton Strategic Plan, whichever comes first. Changes and updates to the CIPPP require City Council review and approval. CIPPP Implementation Schedule December City Council adopts CIPPP with exclusion of Annual Core CIP and Enterprise CIP, and approves list of Annual Core CIP and its dedicated allocated funding Capital Improvement Program Prioritization Program Page 305 of 893