Title
Report regarding a resolution approving the proposed Capital Improvement Program for fiscal year 2026-27 (Eunejune Kim, Director of Public Works/City Engineer, and Matthew Ruble, Principal Engineer)
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RECOMMENDATION
It is recommended that the City Council of the City of South San Francisco:
1. Adopt a resolution approving the Capital Improvement Program (CIP) for Fiscal Year (FY) 2026-27, approving the appropriations request of $19.3 million, and authorizing City staff to prepare plans and specifications and to advertise for construction bids for the projects under this program; and
2. Adopt a resolution approving the formal closure, deferral, funding source adjustments, and deallocation of select prior-year CIP projects and approving Budget Amendment Number 26.066 for Fiscal Year 2025-26.
BACKGROUND/DISCUSSION
The Capital Improvement Program (CIP) outlines major capital expenditures and infrastructure improvement projects throughout the City, continuing investments in city streets, storm drains, sanitary sewers, facilities, parks, and traffic systems. Each year, City departments identify critical needs and prioritize project implementation when preparing the CIP to ensure resources are aligned with the City’s long-term goals.
City staff considers the following criteria when selecting projects for inclusion in the CIP:
• Grant-funded projects requiring a City contribution.
• Previously approved projects under construction or contract.
• Projects required for regulatory compliance.
• Projects to maintain or upgrade existing City infrastructure.
• Projects with no General Fund allocations.
• Projects requested by the community or City departments.
The FY 2026-27 CIP was first reviewed by the City Council's Budget Standing Committee, consisting of Mayor Addiego and Councilmember Coleman, on May 13, 2026, followed by a City Council study session on May 27, 2026. In accordance with Government Code Section 65401, the Planning Commission also reviewed the CIP on April 16, 2026, and adopted a resolution finding the CIP consistent with the General Plan. The proposed CIP incorporates the guidance and feedback provided by the City Council during these reviews, as well as project updates and administrative cleanup.
Administrative Updates
Several administrative enhancements have been incorporated into the FY 2026-27 CIP Budget Book to improve project organization and readability.
Beginning with the FY 2026-27 CIP, projects are organized by the City department responsible for managing and delivering the project. The revised organization provides clearer accountability for project delivery.
In addition, staff have updated the names of two recurring annual projects to improve consistency and avoid confusion associated with fiscal year-specific project titles. The following projects have been renamed:
• (tr2301) Misc Traffic Improvements - formerly titled Misc Traffic Improvements FY 2022-23
• (ss2601) Sanitary Sewer Rehabilitation - formerly titled FY 2026-27 Sanitary Sewer Rehabilitation FY 2025-26
These name changes are administrative only and do not affect project scope, funding, or project prioritization.
As part of the CIP team’s ongoing commitment to improving the City’s capital planning process, project titles will no longer include fiscal years. This approach establishes a clearer project-naming convention across the CIP Budget Book and financial systems.
FY 2026-27 CIP Summary
The proposed FY 2026-27 CIP budget totals approximately $581.03 million, including $19.3 million in new FY 2026-27 appropriations and approximately $561.73 million in previously authorized appropriations for continuing projects. The CIP includes 150 projects, comprising 15 new and 135 continuing projects. The CIP is comprised of six (6) project types:
• Public Facilities
• Parks
• Storm Drains
• Sanitary Sewer
• Streets
• Traffic
The following overview identifies proposed new projects and additional appropriation requests for continuing projects.
Parks Projects: These projects replace and improve playgrounds, renovate baseball fields, and expand parks at city-owned public spaces.
New appropriations requests:
• (pk2301) Playground (Fund 522) - OMP Main Playground Replacement - Surfacing and equipment replacement of main playground at Orange Memorial Park. Equipment to be replaced with inclusive elements for all abilities.
§ FY 26-27: $3,800,000
§ FY 26-27: ($840,511.40)
• (pk2302) Centennial Trail Improvements - Construct Park spaces along Centennial Trail.
§ FY 26-27: $600,000
• (pk2309) OMP Sports Field Renovation Bond Portion (Fund 522) - Bond portion of funding for Orange Park Sports Field Renovation (pk1402).
§ FY 26-27: ($12,281)
• (pk2310) Aquatic Center - Bond Portion (Fund 523) - Bond portion of funding for Aquatics Center (pk2201).
§ FY 26-27: $852,792.40
• (pk2404) Common Green Rehab Study & Implementation - Pre-design study and implementation of common greens rehabilitation.
§ FY 26-27 - $2,000,000
Total New FY 26-27 Parks Appropriation Requests = $6,400,000
Public Facilities Projects: These projects renovate, construct, and improve city buildings and infrastructure.
New appropriations requests:
• (pf2207) Library, Parks & Recreation - Phase II (Bonds) - Phase II of the construction of the Library, Parks & Recreation building site.
§ FY 26-27: $214,000
• New project (pf2701) Fire Station 61 Dorm Reconfiguration (480 North Canal Street) - Addresses the shortage of sleeping quarters for on-duty personnel during large-scale incidents by expanding and improving accommodations.
§ FY 26-27: $100,000
• New project (pf2702) Fire Station 65 Roof Replacement (1151 SSF Drive) - Replaces the aging, leaking roof at Fire Station 65 to prevent water damage and maintain facility integrity.
§ FY 26-27: $125,000
• New project (pf2703) Fire Station 65 HVAC Installation (1151 SSF Drive) - Replaces undersized HVAC system.
§ FY 26-27: $75,000
• New project (pf2704) EV Chargers at LPR and Orange Memorial Park Pool - Installation of replacement EV chargers at LPR and new charger installation at OMP Pool.
§ FY 26-27: $100,000
Total New FY 26-27 Public Facilities Appropriation Requests = $614,000
Sanitary Sewer Projects: Projects maintain the Water Quality Control Plant (WQCP), Collection System Pumps Stations, and sanitary sewer lines within the City.
New appropriations requests:
• (ss2601) Sanitary Sewer Rehab - Annual systematic rehabilitation of the sewer system gravity lines by sewer basins as determined by the sewer master plan and recent video inspection efforts prior to Surface Seal Area 2.
§ FY 26-27: $1,000,000
Total New FY 26-27 Sanitary Sewer Appropriation Requests = $1,000,000
Storm Drain Projects: Projects repair and improve storm drains and infrastructure to reduce pollution run-off into the San Francisco Bay.
New appropriations requests:
• (sd2201) Francisco Terrace Flood Protection Levy - Flood protection improvements in the vicinity of Terrace Drive. A floodwall is proposed to extend along the property line from Terrance Dr to the elevated bike/pedestrian trail with parallels the BART alignment.
§ FY 26-27: $100,000
Total New FY 26-27 Storm Drain Appropriation Requests = $100,000
Streets Projects: These projects repair bridges, resurface streets, improve medians and sidewalks, and study the feasibility of proposed roadway and rail extensions.
New appropriations requests:
• (st1004) South Linden Avenue Grade Separation - This project will provide coordination for the South Linden Grade Separation. This is the last remaining at-grade Caltrain/Union Pacific railroad crossing in South San Francisco. Separating vehicles and trains will prevent crossing accidents and improve traffic flow.
§ FY 26-27: $1,000,000
• (st2401) Complete Streets Improvement - Design & construct pedestrian and storm drain improvements at Elm Court, Hillside Blvd, Park Way, and Ponderosa Road.
§ FY 26-27: $200,000
• (st2601) Tanforan Avenue Reconstruction Project - Reconstruction of Tanforan Ave between San Mateo Ave and Railroad Place.
§ FY 26-27: $1,000,000
• (st2604) 2027 Surface Seal Project - Street surface treatments with base repairs in preparation of 2027 surface seal project.
§ FY 26-27: $3,000,000
• New project (st2701) 2028 Surface Seal Project - Street surface treatments with base repairs in preparation of 2028 surface seal project.
§ FY 26-27: $500,000
• New project (st2702) SSF Pedestrian Bridges Rehabilitation Project - This project will rehabilitate 7 pedestrian bridges.
§ FY 26-27: $500,000
• New project (st2703) 2028 Pavement Rehabilitation - This project will rehabilitate various City streets in accordance with the City's pavement management program.
§ FY 26-27: $100,000
Total New FY 26-27 Streets Appropriation Requests = $6,300,000
Traffic Projects: These projects focus on arterials, corridors, and key intersections within the City, including adaptive traffic signals to provide better traffic flow, improve pedestrian safety, traffic calming, and better bicycle rider safety on City streets.
New appropriations requests:
• (tr2301) Misc Traffic Improvements - Design & construct any traffic related improvements in the City, such as striping, signs, and other traffic calming measures from the Traffic Advisory Committee, Neighborhood meetings or as needed.
§ FY 26-27: $310,000
• (tr2405) Citywide School Traffic Calming Improvements - Design & construct traffic calming improvements at grades Kindergarten through 12 schools, including 15mph speed reduction.
§ FY 26-27: $15,000
• (tr2406) Traffic Studies & Grant Support - Support for any traffic-related studies from the Traffic Advisory Committee, neighborhood meetings or as needed, and support for grant applications.
§ FY 26-27: $200,000
• (tr2408) Signalized Intersection Battery Backup - Upgrade signalized intersection Citywide with Battery Backup Systems. Approx 50 intersections in the City are without BBS.
§ FY 26-27: $1,000,000
• New project (tr2701) Streetlight Replacement Project - Replacement of over 30 streetlight poles and their foundation in the Avalon and Brentwood neighborhoods.
§ FY 26-27: $600,000
• New project (tr2702) Corridor Signal Visibility, Capacity, and Operational Improvement Project - Replace and reconfigure median-mounted signal poles and mast arms to improve signal visibility, optimize signal operations, and support efficient traffic flow. Improvements may include pole relocation, mast arm extensions, and upgraded signal equipment to meet current operational standards. The project enhances intersection capacity, reduces delay, and supports safe and efficient movement of increased traffic volumes.
§ FY 26-27: $300,000
• New project (tr2703) Spruce & Canal Intersection Operational and Capacity Modernization - Modernize signal equipment and phasing at the Spruce Avenue and Canal Street intersection to improve safety and operational efficiency. Improvements may include updated signal controllers, revised phasing, and detection upgrades to reduce delay and improve throughput. The project supports increased traffic demand and maintains acceptable intersection performance.
§ FY 26-27: $200,000
• New project (tr2704) Priority Corridor Signal Detection and Operations Upgrade Program - Upgrade signal detection systems at key intersections along priority corridors to improve reliability and multimodal detection. Enhancements support signal coordination, reduce delay, and improve corridor progression. The project maintains system performance and accommodates additional travel demand on high-volume corridors.
§ FY 26-27: $250,000
• New project (tr2705) Orange Avenue Corridor Capacity, Circulation, and Multimodal Improvements - Implement multimodal and operational improvements along Orange Avenue, including signal coordination, intersection upgrades, and pedestrian/bicycle enhancements. The project improves circulation, reduces delay, and enhances corridor capacity to accommodate future development-related trips.
§ FY 26-27: $400,000
• New project (tr2706) Oyster Point / Airport Boulevard Interchange Capacity and Multimodal Access - Evaluate and advance intersection and interchange improvements to reduce congestion and improve safety and access between Oyster Point, Airport Boulevard, and surrounding employment areas. Improvements may include geometric modifications, traffic control changes, and multimodal access enhancements. The project improves system capacity, reduces delay, and supports regional travel demand.
§ FY 26-27: $400,000
• New project (tr2707) Downtown to the Bay Project - This project will support preliminary engineering and design for a direct, car-free connection between Downtown and the Bay Trail, advancing a key gap in the City’s active transportation network.
§ FY 26-27: $600,000
• New project (tr2708) Trains to Technology - This project will initiate preliminary engineering and design for a multimodal connection between the Caltrain station and major employment centers east of US-101, improving access to jobs and supporting mode shift.
§ FY 26-27: $600,000
Total New FY 26-27 Traffic Appropriation Requests = $4,875,000
Annual Project Review and Budget Cleanup
As part of the annual CIP development process, staff conducts a comprehensive review of all active capital projects to evaluate project status, funding availability, delivery schedules, and alignment with current City priorities. This review identifies projects that have been completed, those that should be deferred to future fiscal years, those requiring revised funding strategies, and those that are no longer necessary.
As a result of this review, staff identified approximately $12.3 million in prior-year appropriations associated with projects available for closure, reprogramming, funding source modification, or deallocation recommended for closeout during FY 2025-26. Attachment 3 provides a detailed summary of all proposed project closures and Budget Amendment Number 26.066 funding adjustments.
Project Closures
Staff recommends the formal closure of several completed projects. Because final expenditures and year-end accounting adjustments have not yet been completed, the exact amount available for deallocation by funding source may vary. However, the total remaining appropriations for the projects listed below are expected to be returned to their respective funding sources upon project closeout. The projects recommended for closure have total remaining appropriations of approximately $2.02 million.
The following projects are completed and eligible for closeout:
• (pf1704) Training Tower Maintenance - ($36,667)
• (pk2402) Dundee Park Remodel - ($109,859)
• (pk2403) Brentwood Park Irrigation Infrastructure Upgrade - ($13,889)
• (sd2401) Storm Drain Repairs - $0
• (ss2407) SB 1383 Organic Diversion Mandate - $0
• (st1403) Grand Boulevard Project (Chestnut Ave. to Arroyo Dr.) - ($678)
• (st1502) GBI Phase 2 (Kaiser Way to BART) - ($328,104)
• (st1702) UUD Rule 20A Antoinette Ln. - ($382,128)
• (tr1501) Junipero Serra Blvd./King Dr. Intersection Improvements - ($103,698)
• (tr1903) North Connectivity Bicycle Lanes Project - ($143,968)
• (tr1902) East of 101 Traffic Signal IDEA Grant - ($81,451)
• (tr1907) South Connectivity Bicycle Lanes - ($48,427)
• (tr2001) West Orange and Hillside Pedestrian Crossing Improvements - ($48,523)
• (tr2202) HSIP - Curb Ramp Improvements - ($477,343)
• (tr2203) East 101 Transit Shelter & Bulb Turnout-MTC - ($148,456)
• (tr2302) Right of Way Infrastructure Assessment & Upgrades - $0
• (tr2407) Bay Trail Centennial Way Trail Gap Closure - ($61,578)
• (tr2410) Spruce Ave Corridor Study Bike/Ped/Streets - ($14,181)
• (tr2502) Junipero Serra Blvd Buffered Bike Lanes - ($24,884)
Total FY 25-26 Project Closeouts (All Funds) = $2,023,834
Reprogrammed Funding
The (tr1404) US-101 Produce Avenue Interchange Project remains an active project; however, project implementation is anticipated to occur over a longer timeframe than originally programmed. As a result, $2.84 million in Impact Fee funding is proposed to be reprogrammed to future fiscal years.
|
Project No. |
Project Name |
Funding Source |
Amount |
|
tr1404 |
US-101 Produce Avenue Interchange (TIF #39) |
Citywide Transportation Impact Fee |
$727,029.00 |
|
|
|
East of US-101 Traffic Impact Fee |
$2,110,295.55 |
Total Reprogrammed Funding FY 2025-26: $2,837,324.55
Funding Source Adjustments
The (tr2408) Signalized Intersection Battery Backup Project remains active. Staff recommends reallocating $1.0 million from the Citywide Transportation Impact Fee to the East of 101 Traffic Impact Fee to better align the project with eligible funding sources.
|
Project No. |
Project Name |
Funding Adjustment |
Amount |
|
tr2408 |
Signalized Intersection Battery Backup |
Reallocate funding from Citywide Transportation Impact Fee to East of US-101 Traffic Impact Fee within the project budget |
$1,000,000 |
Funding Deallocations
Staff recommends the deallocation of approximately $6.49 million in prior-year appropriations from projects that are no longer advancing, dependent on future funding mechanisms, are being deferred pending future funding opportunities, or need to be realigned.
|
Project No. |
Project Name |
Funding Source |
Amount |
|
st1703 |
Bridge Preventive Maintenance Program |
Citywide Transportation Impact Fee |
$14,911.00 |
|
tr2101 |
Utah and Harbor Intersection Improvement |
East of US-101 Traffic Impact Fee |
$2,511,419.58 |
|
tr2201 |
Grand Avenue Off-Ramp Realignment |
Funding source(s) to be returned upon project closure |
$3,760,307.00 |
|
st2504 |
Reconnecting Communities: Highway to Boulevard |
Citywide Transportation Impact Fee |
$200,000.00 |
The Bridge Preventive Maintenance Program is recommended for deallocation because the Citywide Transportation Impact Fee was determined to be an ineligible funding source for the project.
The Utah and Harbor Intersection Improvement project is recommended for closure and deallocation pending future development activity and Community Facilities District (CFD) funding advance sufficiently to support project implementation.
The Grand Avenue Off-Ramp Realignment project is recommended for closure and deallocation as the project is not feasible and is not anticipated to move forward.
The Reconnecting Communities: Highway to Boulevard project is recommended for deallocation pending State funding and may be reconsidered in the future should funding be awarded.
Total Projects to be Deallocated in FY 2025-26: $6,486,637.58
Bond-Funded Project Reassignments
Certain capital projects are funded with bond proceeds that must remain appropriated to be eligible capital projects and cannot be returned to fund balance. Therefore, these funds are not included within the $12.3 million identified through the annual CIP review process.
Staff proposes reallocating the remaining bond-funded appropriations from the Orange Memorial Park Playground Replacement Project (PK2301), Fund 523, and the OMP Sports Field Renovation Project (PK2309), Fund 522, to the Aquatic Center Bond Portion Project (PK2310), Fund 524. This action includes the reassignment of approximately $852,792.40 in remaining bond proceeds and the corresponding transfer of appropriations between bond funding sources.
Because this action represents a transfer between eligible bond-funded projects rather than a deallocation of funds, the net fiscal impact is zero. These adjustments are included in the FY 2026-27 CIP appropriations resolution and are separate from Budget Amendment Number 26.066.
FUNDING
The proposed FY 2026-27 Capital Improvement Program (CIP) budget totals approximately $581.03 million. This includes $19.3 million in new appropriations and approximately $561.73 million carried forward from prior fiscal years for ongoing capital projects.
To support current and future capital funding needs, approximately $12.3 million in prior-year appropriations has been identified through the annual CIP review process for project closure, reprogramming, funding source modification, or deallocation. Specific projects recommended for closure and the associated funding actions are identified in Attachment 3: Proposed FY 2025-26 Project Closures and Budget Amendment Number 26.066 Adjustments. These actions allow the City to realign available funding with current project schedules, funding availability, and infrastructure priorities.
In addition, the FY 2026-27 CIP includes the reassignment of $852,792.40 in remaining bond proceeds from the (pk2301) Orange Memorial Park Playground Replacement Project, Fund 523, and the (pk2309) OMP Sports Field Renovation Project, Fund 522, to the (pk2310) Aquatic Center Bond Portion Project, Fund 524. These bond-funded transfers are reflected within the FY 2026-27 CIP Budget Book and have no net fiscal impact.
Attachment 1: CIP Proposed Budget Book FY 2026-27 includes the full set of proposed projects and appropriations. Attachment 2: Funding Source Report FY 2026-27 provides a detailed breakdown of funding allocations by project and funding source, including summaries of the proposed FY 2026-27 appropriations by funding source and project type.
These actions reflect the City's continued commitment to responsible fiscal management and strategic investment in infrastructure that serves South San Francisco residents, businesses, and visitors.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
Approval of this action will contribute to the City Council Priorities Action Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public.
CONCLUSION
Staff recommends that the City Council adopt a resolution approving the Fiscal Year 2026-27 Capital Improvement Program, including approximately $19.3 million in new appropriations, the reassignment of $852,792.40 in bond proceeds from Funds 522 and 523 to Fund 524 for the Aquatic Center Bond Portion Project (pk2310), and authorization for City staff to prepare plans and specifications and advertise for construction bids and related requests for proposals for projects included in the program.
Staff further recommends that the City Council adopt a second resolution approving the closure of select capital projects during FY 2025-26, funding source modifications, reprogramming of appropriations, project deallocations, and Budget Amendment Number 26.066. These actions will ensure that project budgets, funding sources, and appropriations accurately reflect current project status, implementation schedules, and City priorities while maintaining the City's long-term investment in critical infrastructure.
Associated Documents:
1. 1 - CIP Proposed Budget Book FY 26-27
2. 2 - Funding Source Report FY 26-27
3. 3 - Proposed Project Closures and Deferrals FY 25-26
4. 4 - CIP Presentation FY 2027-2031 - 6.10.26