CITY COUNCIL REGULAR MEETING AGENDA PACKET

DRAFT CIPPP-01 Page 1 of 16 SUBJECT: CIP Process and Prioritization (CIPPP) Strategy EFFECTIVE DATE:December 17, 2024 Capital Improvement Program (CIP) Defined 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. The Capital Improvement Program (CIP) is defined as the City’s financial plan for the construction of the City’s capital improvements. Capital improvements are the addition of a permanent structure, structural change, or the restoration of the City’s assets that will either enhance the asset’s overall value, prolong its useful life, or adapt it to new uses. The City’s assets span a wide variety of categories, including streets and related right-of-way features; stormwater and drainage systems; water and sewer systems; public buildings such as the library, parks, recreational and community centers; and public safety facilities such as police and fire stations. Capital investments are necessary for the construction of all parts of the City’s infrastructure. The Importance of Infrastructure The importance of quality infrastructure cannot be overstated. Without functioning infrastructure, the City’s economic prosperity cannot be sustained. The quality of neighborhood infrastructure will directly determine the livability of the City’s neighborhoods. The community’s health, safety, and natural environment depend on available and quality infrastructure. Decisions about capital investments affect the availability and quality of most government services, as well as many private services. Infrastructure connects residents to opportunities for employment, healthcare, and education via extensive transportation, power, water, and telecommunication networks. Ongoing investments will enhance the quality of life for every neighborhood. In addition to legal mandates, the prioritization of CIP projects should also consider social, economic, and geographic factors. Purpose of this Prioritization Process 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 Page 308 of 893