Public Works lays out $33M operating plan and multi-year capital pipeline; crews rolling out grinders and dig-outs

Public Works Director Eric Gustafson presented the department’s proposed 2025–26 operating budget and highlighted capital projects and maintenance initiatives tied to the city’s ongoing capital-improvement pipeline. Gustafson said the department’s total budget request is roughly $33 million with about $14 million in personnel costs; the department is operating at about 103 full-time equivalents and continues multi-division work that spans parks, streets, wastewater, fleet and facilities.

Key initiatives - Pavement management: Gustafson described a more permanent repair strategy using an asphalt grinder (Wirtgen grinder) and a sequence of dig-outs followed by surface treatment to extend pavement life. The city has purchased a grinder and two large dump trucks to handle millings, and crews plan targeted dig-outs in neighborhoods including Forest Avenue and Third Street near the transit center. - Vegetation and wildfire risk reduction: staff highlighted Lindo Channel hazard-mitigation work, ongoing pile reductions, goat grazing contracts and new corridor pruning to protect neighborhoods on the eastern wildland interface. - Wastewater and airport work: wastewater upgrades (primary/secondary clarifier scoping) and Phase 3 sustainable energy projects were noted; the airport continues lease and commercial-air-service planning and minor capital work.

CIP scale and schedule Engineering and capital staff reported historic contract delivery levels (over $60 million in construction contracts in the preceding year and a multi-year projection exceeding $100 million across cycles). Council discussed one delayed project — the East Twentieth Street scope was scaled back due to constrained resources — and asked about the implications of delaying projects, inflation and grant/leverage strategies. Gustafson and Engineering Director Hanabani said grant seeking remains a priority and that multiple funding streams mix with Measure H and one-time sources (for example, Fire Victims Trust funding used to accelerate select capital work).

Ending Council members praised the grinder/dig-out approach and asked staff to continue seeking grants to stretch local dollars. Staff said projects will continue to be prioritized in the capital plan and more detailed schedules and funding options will be provided to council in the coming weeks for budget decisions.