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Report regarding the proposed Capital Improvement Program for the fiscal year 2025-26. (Eunejune Kim, Director of Public Works/City Engineer, and Matthew Ruble, Principal Engineer)
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RECOMMENDATION
Staff recommends that the City Council review and provide feedback on the proposed Capital Improvement Program for the fiscal year 2025-26.
BACKGROUND/DISCUSSION
The Capital Improvement Program (CIP) outlines large capital expenditures and infrastructure improvement projects throughout the City. City departments identify necessary improvements and prioritize project implementation when preparing the CIP.
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
• Projects that can be reasonably delayed, are complete, or are no longer necessary
Based on the established guidelines, staff proposes the following fiscal year (FY) 2025-26 CIP budget appropriations. The proposed FY 2025-26 CIP budget is $232.82 million, which includes $24.03 million of new appropriations and approximately $208.79 million of in carryover appropriations from previous years for continuing projects.
Additionally, the City continues its efforts to identify projects within Infrastructure Reserves and Sewer Enterprise Funds to be reprogrammed or redirected back to the City’s budget to support CIP funding needs for FY 2025-26 and out-years. These projects are detailed in a separate attachment, along with other identified funding sources and projects recommended for fund release, permanent closure or deferral to a future fiscal year.
Projects anticipated to be eliminated or deferred are not included in the FY 2025-26 Budget Book.
This staff report also incorporates updates based on the recommendations from the Budget Subcommittee since its meeting on May 20, 2025.
CIP Project Summary
The FY 2025-26 CIP includes 184 projects: 10 new projects and 174 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.
Public Facilities Projects - These projects renovate, construct, and improve city buildings and infrastructure.
New appropriations request:
There are no new public facilities appropriation requests for Fiscal Year 2025-26.
Total New Public Facilities Appropriation Requests = $0
Parks Projects - These projects replace and improve playgrounds, renovate baseball fields, and expand parks at city-owned public spaces.
New appropriations request:
• (pk2301) Orange Memorial Park Main Playground Replacement (BONDS) - Surfacing and equipment replacement of main playground at Orange Memorial Park. Equipment to be replaced with inclusive elements for all-abilities. - $865,073.24
• (pk2302) Centennial Trail Improvements - Construct park spaces along Centennial Trail. - $1,666,279
• (pk2305) Linden Park Project - Project to transform two adjacent vacant lots into a vibrant neighborhood park and cultural plaza for our community to enjoy. - $300,000
• (pk2501) Dedicated Pickleball Courts - Addition of Pickleball courts to Orange Park; additional costs to add noise attenuation and improved surfacing. - $400,000
• New project (pk2601) Cypress and Pine Park Renovation Project - Improve and rehabilitate the existing Cypress and Pine Park with new play features, furnishings, landscape, and other improvements. - $3,000,000
• New project (pk2602) Playground Surfacing City Hall Tot Lot, Avalon Park, Westborough Park - Replacement of rubberized surfacing that has reached end of life and is degraded beyond patch repairs. - $180,000
Total New Parks Appropriation Requests = $6,411,352
Storm Drain Projects - Projects repair and improve storm drains and infrastructure to reduce pollution run-off into the San Francisco Bay.
New appropriations request:
(sd1801) Orange Memorial Park Stormwater Capture Project - Design and construct a storm water capture device including pre-treatment system. - $20,000
Total New Storm Drain Appropriation Requests = $20,000
Sanitary Sewer Projects - Projects maintain the Water Quality Control Plant (WQCP), collection system pumps stations, and sanitary sewer lines within the City.
• (ss2202) Oyster Point Pump Station - The project will design and construct a new pump station to support the development at Oyster Point. - $2,850,000
• New project (ss2601) Sanitary Sewer Rehab FY 2025-26 - 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. - $5,800,000¹
• New project (ss2602) Harbor Way Sewer Main Upsize - Upgrade of sewer main due to capacity constraints. - $500,000
• New project (ss2603) Sanitary Sewer Pump Station Master Plan - Condition and Capacity assessment of all Pump Stations and associated force mains. - $500,000
Total New Sanitary Sewer Appropriation Requests = $9,650,000
Streets Projects - These projects repair bridges, resurface streets, improve medians and sidewalks, and study the feasibility of proposed roadway and rail extensions.
New appropriations request:
• (st1703) Bridge Preventative Maintenance Program - This project will conduct preventative maintenance on nine (9) city-maintained bridges including: Colma Creek Bridge at Produce Avenue, Canal Bridge at Linden Avenue, two (2) bridges over San Bruno Channel over North Access Road, Colma Creek Bridge at Spruce Avenue, Colma Creek Bridge at Utah Avenue, Grand Ave. and San Bruno Channel over North Access Road. - $200,000
• (st1904) Underground Utilities District (UUD) Rule 20A for Mission Road - Establish an Underground Utility District on Mission Road from Grand Avenue to connect with underground utilities at the South San Francisco BART south entrance. Additional funding is required to replace city-owned street lighting. - $1,500,000
• (st2301) Junipero Serra Boulevard/Westborough Boulevard Corridor Feasibility Project - To fund the planning of the Junipero Serra Blvd and Westborough Blvd Bike and Ped improvements as identified in the Active South City Plan - $200,000
• (st2505) 2026 Surface Seal Project - This project will provide asphalt pavement maintenance from design through construction in Area 2 (Sierra Highlands neighborhood) of the Pavement Management Program (PMP). - $3,300,000
• New project (st2601) Tanforan Ave Reconstruction - Reconstruction of Tanforan Ave between San Mateo Ave and Railroad Place. - $100,000
• New project (st2602) Citywide Misc Striping - This project includes the installation, replacement, and maintenance of roadway striping and pavement markings at various locations citywide. - $300,000
• New project (st2603) Citywide Trip Hazard - Funds to be used to mitigate trip hazards identified as part of the trip hazard assessment. - $150,000
• New project (st2604) 2027 Surface Seal - Street surface treatments with base repairs in preparation of 2027 surface seal project. - $200,000
• New project (st2605) 2026 Pavement Repair and Crack Seal - A preventive maintenance program that includes repairs to localized defective pavement areas and crack sealing - $1,000,000
Total New Streets Appropriation Requests = $6,950,000
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 request:
• (tr2002) Smart Corridor - Implementation of Intelligent Transportation System (ITS) along segment of 101 corridor north of I-380. - $350,000
• (tr2301) Miscellaneous 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. - $250,000
• (tr2406) Traffic Studies and Grant Support - Support for any traffic-related studies from the Traffic Advisory Committee, Neighborhood meetings or as needed, and support for grant applications as needed. - $100,000
• (tr2415) Colma/SSF ECR Bicycle & Ped Improvement - Part of Bike/Ped master plan - $300,000
Total New Traffic Appropriation Requests = $1,000,000
Infrastructure Reserve Refund: To release financial resources for urgent needs, the City has decided to release Infrastructure Reserves previously allocated to four projects, three of which will be closed. This action will enable the City to redirect funds toward projects that require immediate attention.
• (st1803) Street Lighting Enhancement - ($200,000) RELEASE
• (st1805) ECR Gateway Sign & Median Improvement (Noor/Spruce) - ($42,985.38) CLOSED
• (st2002) Survey Monument - ($125,000) RELEASE
• (st2305) CDBG Curb Ramp Replacement - ($150,025.86) CLOSED
TOTAL REFUND TO Infrastructure Reserve = $518,011.24
Sewer Enterprise Fund Refund: To support sustainable resource management, the City has thoroughly reviewed current and upcoming projects dependent on Sewer Enterprise Funds. As a result, four projects are recommended for closure and nine for deferral. Additionally, two projects will be reclassified and moved to the Capital Outlay Fund. These actions will release a total of $11.87 million back into the Sewer Enterprise Fund to support critical needs in FY 2025-26 and future years.
• (ss1301) WQCP Wet Weather and Digester Imprvmts - ($564,441.59) CLOSED
• (ss1601) Sodium Hypochlorite Tank Replacement - ($57,201.08) CLOSED
• (ss1703) WQCP Secondary Clarifiers #1 & #2 Rehab - ($1,316,576.22) CLOSED
• (ss1704) WQCP Effluent Storage Basin Liner Rplmnt - ($855,993.07) CLOSED
• (ss1307) Plant Wide Industrial Re-Coat - ($2,000,000) RELEASE
• (ss2302) WQCP Sludge Dewatering Improvements - (1,393,290) RELEASE
• (ss1205) WQCP Solar PV - ($270,356.94) DEFER
• (ss1901) Pump Station Industrial Re-Coating Prog - ($2,125,266.56) DEFER
• (ss2301) WQCP Diffused Air Flotation Thickener Re - ($548,100) DEFER
• (ss2404) Programmable Logic Controller Repl-WQCP - ($1,498,140) DEFER
• (ss2407) SB1383 Organic Diversion Mandate Comp - ($73,080) DEFER
• (ss2408) Biosolids Drying & Recycling- Proj #2 - ($73,080) DEFER
• (ss2501) Sanitary Pump Stations 5, 6, 7 Upgrade - ($219,240) DEFER
TOTAL REFUND to Sewer Enterprise Fund = $10,994,765.46
Additional Project Closures/Refunds:
The City has also identified three additional projects for adjustment across other funding sources. One project will be closed, resulting in an additional release of $1,165,073.24. These actions are intended to align remaining project balances with evolving capital priorities and funding needs.
• (pf2205) Oyster Pt Phase 2C Parking Lot Improve - ($150,000) RELEASE
• (pf2206) Oyster Pt Phase 2C Landscape Improvement - ($150,000) RELEASE
• (pk2309) OMP Sports Field Renovation (BONDS 522) - ($865,073.24) CLOSE
TOTAL REFUND to Other = $1,165,073.24
FUNDING
The staff report outlines the proposed FY 2025-26 CIP budget allocations, totaling $232.82 million. This amount includes $24.03 million in new appropriations and approximately $208.79 million carried over from prior years for ongoing projects.
To further support CIP needs in the current and future fiscal years, the report identifies opportunities to reallocate funds from Infrastructure Reserves and the Sewer Enterprise Fund. Projects identified for fund release, closure, or deferral are detailed in Attachment 3: Proposed Project Closures and Deferrals. These actions allow the City to redirect funding to higher-priority needs. Projects identified for closure or deferral are not included in the FY 2025-26 Budget Book. Projects that are deferred at this time may be reconsidered and submitted as new project requests in future CIP cycles, as priorities and funding availability evolve.
Attachment 1: FY 2025-2026 Funding Source Summary for All Appropriation Requests provides a detailed breakdown of funding allocations by project and funding source. Attachment 2: Excerpts from the FY 2025-2026 One-Year CIP Proposed budget further illustrate these allocations and include pie charts showing the distribution of the new $24.03 million in appropriation by funding source and by project type.
This strategic financial planning reflects the City’s ongoing commitment to responsible fiscal management and ensures continued investment in infrastructure improvements that sever South San Francisco residents, business and visitors.
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public.
CONCLUSION
Staff will amend the FY 2025-26 CIP based upon direction received and will present the revised CIP at the June 25, 2025, City Council meeting for adoption.
Attachments:
1. FY 2025-2026 Funding Source Summary for All Appropriation Requests
2. Excerpts from the FY 2025-2026 One-Year CIP Proposed Budget
3. Proposed Project Closures and Deferrals