ITEM NO. 8
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Sheryl Garcia, Administrative Services Director/City Clerk |
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| DATE: |
01/14/2026 |
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| SUBJECT: | Approve the Establishment of a Facilities Maintenance/Capital Improvement Program (CIP) Contingency Account Within the City Manager’s FY 2025/26 Budget
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Recommendation:
Adopt Resolution No. 2026-07 establishing a Facilities Maintenance/CIP Contingency account in the City Manager’s budget and appropriate $135,000 in one-time revenue for expenditures.
Background/Analysis:
The City received a one-time monetary settlement from a vendor who terminated a contract and paid a penalty totaling $160,000. Of this amount, $135,000 will be received during the current fiscal year. Staff recommends establishing a Facilities Maintenance/CIP Contingency account to allocate these funds toward priority facilities maintenance, capital improvement, and other critical needs such as IT infrastructure and software. The settlement payment schedule is as follows:
- $85,000 received to date
- An additional $50,000 to be received within the current fiscal year
- $25,000 to be received in FY 2026/27
The proposed Facilities Maintenance/CIP Contingency account would be funded with $135,000 received in FY 2025/26 and will:
- Transparently track the one-time settlement funds; and
- Provide flexibility to address facility maintenance, capital improvements, and critical needs such as IT hardware, software, and other system upgrades.
At this time, Staff recommends allocating approximately $85,475 to the following identified needs:
| Deferred Maintenance 31600 RRC | $8,300 |
| Deferred Maintenance 31542 RRC | $25,300 |
| Employee Assistance Program | $1,075 |
| GovCloud | $6,000 |
| IT Switch/Firewall | $5,000 |
| Memorial/Veterans Wall | $25,000 (NTE) |
| NeoGov | $7,300 |
| Tech Fee Study | $7,500 |
| TOTAL | $85,475 |
The remaining approximately $49,525 will be retained in the contingency account and held for future allocation as additional facilities, capital, technology, or other needs are identified. It is recommended that the $25,000 to be received in FY 2026/27 be included in the Facilities Maintenance/CIP account for FY 2026/27.
- Fiscal Impact Yes/No:
- No
Additional Fiscal Information:
This action has no impact on current or future general fund balances beyond receipt and appropriation of one-time settlement revenue. While certain software expenditures involve multi-year agreements, only the current fiscal year costs are being appropriated, and any future-year obligations remain subject to annual appropriation.