CITY COUNCIL REGULAR MEETING AGENDA PACKET

DRAFT CIPPP-01 Page 12 of 16 is to ensure overall alignment of the Five-Year CIP to the city strategic goals and objectives. The cut-off line between funded and unfunded projects is based on the available budget allocated for the City’s capital improvement program every year. Due to the nature of restricted and non-restricted funds, the size of projects, and their respective resource needs, some projects below the cut-off line may move up the ranked and prioritized projects list. Any 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 the enterprise fund. 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 for the enterprise fund. Therefore, enterprise-funded Capital Improvement Program projects (water and sewer) are excluded from the aforementioned 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. Page 319 of 893