Title
Public Works Department Capital Improvement Program for Fiscal Years 2026-31 - Citywide
Description
This report provides the Transportation, Infrastructure, and Planning Subcommittee with an overview of the Public Works Department Capital Improvement Program (CIP) for Fiscal Years (FY) 2026-31.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The Public Works Department annually updates a comprehensive five-year CIP (Attachment A) to address critical infrastructure, aging equipment, and facility needs that support solid waste services, facilities management, and fleet services. The five-year preliminary CIP for FY 2026-31 includes authorized funding for capital projects financed through general, special revenue, enterprise, bond, and capital project funds. The CIP addresses the most critical capital projects to maintain adequate infrastructure and ensure operational service capacity for future growth and development.
The business process for evaluating capital projects begins in July of each year for solid waste operations and in September of each year for the facilities management program. Solid Waste conducts capital planning and an evaluation process to review capital projects for funding authorization. The capital planning rate-setting process is used to develop the Preliminary CIP using a 10-year forecast model.
Five-year project planning is crucial for maintaining facilities, critical infrastructure, business systems, and equipment effectively, ensuring seamless service delivery and operations. The department has identified capital projects in the Preliminary CIP to support facilities management and infrastructure construction needs at the landfills, transfer stations, and Material Recovery Facilities (MRF).
Solid Waste Program
The five-year preliminary CIP for the Solid Waste Program is approximately $112.3 million. Capital projects are proposed to ensure environmental compliance, maintain operational capacity, and support infrastructure upgrades. Projects are funded through Solid Waste operating funds, bonds, capital reserves, grants, and remediation funds.
Major capital projects include:
- SR 85 Landfill Infrastructure Improvements and Expansion
- 27th Avenue MRF, Transfer Station, and Composting Facility Infrastructure Improvements and Expansion
- 27th Avenue Resource Innovation Campus Water, Sewer, and Electrical Infrastructure Improvements
- 27th Avenue Solar Installation
- North Gateway MRF and Transfer Station Infrastructure Improvements and Expansion
The Solid Waste Division applied for up to $185,000 in grants from the Arizona Department of Environmental Quality (ADEQ) through its Recycling Grant Program’s Waste Reduction Assistance Grant and is pending final approval. If awarded, the grant funding will be used to install a camera system at the 27th Avenue Materials Recovery Facility (MRF), pilot an initiative that will help Green Business Leaders (GBL) design and implement customized waste reduction projects, and pilot an education, outreach, and collection program for lithium-ion batteries.
Critical Unfunded Project Needs
Staff are coordinating with the Finance Department, Budget and Research, and the City Manager's Office to develop a financial plan that provides funding for required Solid Waste projects, that address critical infrastructure construction and truck/vehicle needs at the landfills, material resource facilities and transfer stations. The proposed plan, which continues to be refined, includes a recommended solid waste rate adjustment and future bond sales beginning in 2026.
Facilities Management Program
The five-year preliminary CIP for the Facilities Management Program is approximately $143.2 million and supports the repair and replacement of critical equipment and infrastructure at City-owned facilities maintained by the Public Works Department. Funding supports major facilities maintenance, fuel infrastructure improvements, and energy efficiency projects, and is provided through general, special revenue, enterprise, bond, and capital project funds.
Major capital projects include:
- Citywide Facility Rehabilitation
- Citywide Facility Assessments
- Citywide Energy Conservation Projects
- Facility Asset Management System
- Security and Access Control
- Fuel and Infrastructure Improvements
Citywide Facility Rehabilitation
Working with the Budget and Research Department, Public Works prioritizes capital projects by working with General Fund departments to survey and assess projects eligible for major maintenance funding. Projects submitted by facility assessments or self-identified by partner City departments are evaluated for apparent systems risk or end-of-life conditions. The resiliency of building systems and the preservation of existing assets are prioritized. Major projects include the sanitary sewer system and roof drain replacement project at Phoenix Municipal Court, the fire sprinkler system at Burton Barr Library, and emergency generator replacement projects at various sites citywide.
Citywide Facility Assessments
The citywide facility assessment program conducts formal evaluations of major building systems by third-party engineers to identify necessary system replacements and develop strategies to maximize the asset's life while minimizing the facilities' long-term costs. The department allocates $1 million annually to complete Facilities Site Assessments, and the City is in the fourth year of a multi-year effort to evaluate sites for compliance with the Americans with Disabilities Act.
Citywide Energy Conservation Projects
The Facilities Project and Planning Division Energy Management Section develops and supports projects that provide long-term energy savings in City buildings. Projects such as LED lighting retrofits, building automation, solar, emerging technologies, and energy savings investment-grade audits contribute to the City’s overall sustainability goals.
Facility Asset Management System
To effectively maintain approximately 1,000 buildings at 450 sites throughout the City, funds are programmed in the CIP to purchase and implement a Facility Asset Management System to manage existing and newly acquired assets. The system will enable decision-makers to evaluate facility strategies by allowing them to forecast budgets proactively, ensure compliance with maintenance schedules, plan and prioritize labor resources, and conduct a strategic evaluation of asset procurement programs. The system will integrate with the existing City accounting program, SAP, and will provide an intuitive, user-friendly online submission and portfolio to track requests.
Badging System - Security and Access Control
The Public Works Department is managing the replacement of the City's 20-year-old security and access control systems. These systems, which manage badge access and security controls, will be replaced to maintain current industry standards and security requirements at more than 250 City locations.
Fuel, Infrastructure Improvements, and Electric Vehicles (EV)
The CIP supports citywide improvements to fuel infrastructure, including the management of oil and fuel tanks. The Public Works Department has 26 oil and fuel tanks, which are nearing the end of their 30-year estimated useful life. Additionally, Public Works is diligently working toward the City's goal of 200 electric vehicles by 2030.
New Projects
Public Works was authorized by Budget and Research for almost $20 million in excise tax bond funding for City Hall chilled water pipe replacement, chiller replacements at the John F. Long and Sunnyslope Family Service Centers, and Police Academy roof replacement projects for FY2025-26.
Critical Project Needs
The department continues to address critical project needs such as roof repairs, mechanical deficiencies, and infrastructure rehabilitation across the Downtown Corridor, service centers, and other City facilities. Fiscal Year 2025-26 projects are moving forward contingent upon procurement capacity limitations.
Additionally, several fuel and product tanks are nearing the end of their estimated 30-year useful life, raising concerns about safety and environmental impact. These fuel tanks need to be replaced to comply with Environment Protection Agency standards. Funding for these projects will be requested through the annual General Fund Facility Major Maintenance Project submittal process, which will facilitate the evaluation and prioritization of funding. A detailed list of unfunded projects is available upon request.
Remaining Water Infrastructure Finance Authority of Arizona (WIFA) grant funding has been programmed pending project completion by year-end. The original $2,935,000 grant supports installation of nine mixed oxidant generator (MIOX) water softeners for cooling towers at multiple sites in FY 2025-26, with the City’s 25 percent match funded through GO Bonds. The project is expected to save approximately 29.2 million gallons of water annually.
The Phoenix City Hall Fire Alarm project funded through GO bond funds is substantially complete. As part of the 2023 GO Bond program, Public Works was approved by Budget and Research for three projects totaling $25.3 million starting in FY2024-25, which include $10 million for City Facility ADA Improvements, $14 million for Energy and Water Efficiency and Renewable Energy, and $1.3 million for City Facility Vehicle Electrification Stations.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Public Works Department.