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City reports $1.04B in FY24 CIP spending, cites emergency stormwork and contractor capacity limits
Summary
Engineering and Capital Projects reported that FY24 capital spending exceeded $1 billion for the first time, highlighted emergency storm projects (~$40M), and warned of bidding challenges and contractor capacity constraints affecting delivery.
The city's Engineering and Capital Projects department told the council on Oct. 28 that fiscal year 2024 saw record capital spending and delivery but persistent operational challenges.
Assistant Director Karen McGriff said the FY24 adopted CIP budget was $704.1 million but, after council actions and project activity, the city expended about $1.04 billion on capital projects across 1,388 active projects. Public utilities comprised about 65 percent of activity, driven largely by the Pure Water program.
"For the first time in city history, the capital program expenditures have exceeded $1,000,000,000," McGriff said, adding that nearly 40 percent year‑over‑year spending growth resulted in $1.04 billion invested in citywide infrastructure during FY24.
ENCP highlighted a set of emergency projects after the January storms: 17 distinct emergency projects, 15 tied to stormwater and valued at nearly $40 million, plus other emergencies. The department said some projects had no bids or higher-than-expected bids, a symptom of regional contractor capacity and workforce constraints.
Program manager Samira Palisayed said the project pipeline included large investments (e.g., West Mission Bay Drive bridge replacement, nearly $200 million) and community projects now entering advertising phases (Oak Park Library, Fire Station 48). ENCP emphasized outreach to small local contractors and adjusting project sizes to broaden bidder participation.
Councilmembers pressed staff on whether more work should be performed by in‑house crews versus outside contractors for certain stormwater and right‑of‑way tasks. ENCP said it was evaluating a balance of in‑house and contracted work and continuing industry outreach to increase capacity.
The department also highlighted award recognition for several projects and said it would continue efforts to improve transparency and customer service for CIP delivery.
