CITY COUNCIL SPECIAL MEETING AGENDA PACKET (5:00 PM)

Page 6 of 7 and R&R budgets necessary to keep City infrastructure and facilities in a basic state of repair. Next Steps/Conclusions Staff is seeking direction from the City Council regarding the prioritization of General Fund- dependent capital needs and other capital/infrastructure priorities for FY 2025/26 and FY 2026/27 to inform the development of the two-year Capital Budget and five-year Capital Improvement Program. The recommended project list is included as Attachment 1 and the submitted unfunded projects list in Attachment 2. As noted, if all available fund reserves and anticipated General Fund contributions were expended, the General Fund could not address all requested Capital Improvement and R&R projects. Given this funding gap, staff recommends deferring most identified CIP projects until the AMP is complete to ensure the City does not spend resources on projects that might not ultimately be the most necessary. In the interim, staff recommends prioritizing only the most urgent/critical projects totaling $16.6 million. Staff also recommends allocating $2.0 million to the Repair and Replacement (R&R) program to extend the service life of assets on the deferred project list, with funds suggested to be allocated to three critical maintenance projects. Staff will present the complete draft CIP with the City Manager’s initial Operating budget recommendation to the City Council on May 20, 2025. City Council direction in May will be incorporated into a complete budget recommendation, including CIP, for adoption in June. EQUITY AND SUSTAINABILITY Ensuring the long-term fiscal sustainability of the City organization ensures that the City is able to continue to provide programs and services into the future to serve all of Pleasanton’s diverse community. OUTREACH All City departments were asked to submit “high-priority” projects to be included in the upcoming CIP as outlined in the Capital Improvement Program Prioritization Process. Review and adoption of the Capital Improvement Plan will be considered by the City Council at future public meetings. STRATEGIC PLAN ALIGNMENT Update and alignment of the 5-Year CIP aligns with ONE PleasantonStrategic Plan goal of Investing in Our Environment, including to "Promote effective use of existing facilities through maintenance and repair, and plan for future facilities, amenities, and infrastructure to benefit the community with a focus on environmental stewardship." And, ensuring the long-term fiscal sustainability of the City aligns with the goal of Funding Our Future to support financial health and sound fiscal policies through long-term planning, cost recovery, increased revenue, and cost-containment. FISCAL IMPACT There is no direct fiscal impact by the City Council providing direction on Capital Improvement Program. The direction will be used by staff to finalize the FY 2026 -2030 City Manager Recommended Capital Improvement Program to be presented to the City Council in May. Page 36 of 40