CITY COUNCIL REGULAR MEETING AGENDA PACKET 10-6-26

Page 2 of 5 condition. However, the AMP analysis identifies specific assets that will require investment in the near and mid-term to maintain reliable and functional service levels. To help align available funding with the highest-priority infrastructure needs, staff developed an asset investment approach that considers both asset condition and risk. Assets are evaluated based on their condition, ranging from excellent and good to fair, poor, and failed, as well as their probability of failure and consequence of failure. Because available funding is substantially less than the total replacement value of the City’s infrastructure, the approach focuses investment on assets where the need and potential service impacts are greatest. For the near-term CIP, staff identified high-risk assets in poor or failed condition for priority programming. For the mid-term CIP, staff identified high-risk assets in fair condition that are expected to require investment before their condition deteriorates further. The current analysis identifies approximately $23.6 million in assets that are both high risk and in poor or failed condition and may require near-term replacement. An additional approximately $66.0 million in assets are both high risk and in fair condition, representing assets that may require mid-term investment to reduce the likelihood of future failure and service impacts. This risk-based approach provides a framework for translating AMP findings into a prioritized, financially sustainable CIP while recognizing that not all assets can or should be replaced at the end of their useful life. This allows the City to focus limited capital resources on the assets where timely investment can best preserve service reliability, reduce risk, and avoid higher future costs. Assets are grouped into five main categories: transportation and streets, parks, facilities, miscellaneous and stormwater, and fleet. Cemetery and stormwater assets are currently tracked as non-enterprise-funded assets, as they are supported by the General Fund until dedicated funding sources and revenues are identified. Fleet assets were excluded from this analysis because they are programmed separately and are not funded through the City's deferred maintenance or CIP funding. To further streamline the next CIP programming effort, Civic Center assets were also excluded because the City plans to undertake a comprehensive Civic Center Master Plan during the next CIP cycle. After applying these exclusions, the resulting preliminary asset list includes approximately $14.3 million in estimated asset replacement value for assets in poor or failed condition with high risk, and approximately $61.0 million in estimated asset replacement value for assets in fair condition with high risk. This is a high-level estimate that includes only assets in poor, failed, or fair condition within the high-risk category. It does not include assets in moderate- or low-risk categories. The estimate reflects the cost to replace the assets themselves and excludes project soft costs, such as engineering, design, project management, construction management, and administration. Depending on project type and complexity, soft costs could increase total project costs by an additional 30 to 50 percent. This estimate also does not include overall CIP program contingency allocations or planning for future projects. Page 36 of 46