CITY COUNCIL MEETING AGENDA PACKET

Page 8 of 9 analysis of the last three years and the current approved budgets, an estimated $5.5 million from the R&R program and $13.5 million from the CIP are allocated annually toward the replacement of existing general fund assets. The remaining funds support repairs that do not extend asset life, as well as enhancements or the addition of new assets. Of the $13.5 million in CIP funding, $7 million comes from restricted transportation-related funding sources such as Gas Tax and Measure BB. When adding programmed expenditures from enterprise programs, based on their 20-year CIPs and anticipated to be fully funded through rates, the total annual asset replacement projection for the City is approximately $97 million. This is slightly higher than earlier staff estimates of $90 million per year, reflecting the comprehensive data from the AMP. Next Steps — Phase 3 Phase 3 of the project (asset financial needs assessment) involves validating the risk scoring and reviewing the prioritization results to ensure they align with staff experience and expectations. Financial analysis is also underway to evaluate funding options and budget scenarios. In the Spring of 2026, staff will present the asset risk assessment, prioritized asset replacement needs, and associated budget scenarios that will be used to establish the long- term 20-year CIP. This will include a review of how different funding levels impact service outcomes and the optimal allocation of replacement funding across asset categories. This work will be used to inform the upcoming 2-year CIP budget cycle, which will start in fiscal year (FY) 2027/28. EQUITY AND SUSTAINABILITY The asset management program advances the City’s Climate Action Plan (CAP 2.0) by supporting the Buildings and Energy Strategy. By identifying assets approaching end-of-life, the program enables the City to plan for upgrades that enhance energy efficiency and resilience, creating opportunities to implement Strategies BE-1 (Advance the decarbonization of buildings) and BE-2 (Improve energy consumption and efficiency). OUTREACH No public outreach was conducted, as this item is a routine matter of City business. STRATEGIC PLAN ALIGNMENT The report advances the ONE Pleasanton five-year strategic plan City Council priority strategy, Investing in Our Environment, C.2. to develop an Asset Management Plan (AMP) and support comprehensive long-term planning for the maintenance, renovation, repair, and/or replacement of infrastructure and public facilities to meet current and future needs. FISCAL IMPACT The Asset Management Plan Project, CIP No. 24460, is funded for a total of $1 million. The AMP project expenditures with MaintStar, Inc. and Kayuga Solution, Inc. total $954,417, leaving a project balance of $45,583. Prepared by: Submitted by: Approved by: Page 340 of 373