Duarte workshop defers Huntington Drive paving to align with $3.1M pedestrian grant; staff outlines borrowing plan

Duarte City held a special Capital Improvement Plan workshop where staff detailed a five-year CIP and changes to the Huntington Drive schedule tied to grant timing. Stephanie Sandoval, public works manager, told the council the Huntington Drive PS&E traffic study and paving project were shifted one year to better align with grant dollars connected to the Duarte Town Center Greening and Traffic Calming Plan. "This project was originally programmed for the fiscal year 2627, but it has been deferred 1 year, to better align with grant funds," Sandoval said, adding the city used the Huntington Drive paving project as leverage to obtain a $3,100,000 grant for pedestrian improvements.

The timing change is part of a larger funding conversation. Brian (staff), who led the budget and cash-flow portion of the workshop, warned that if the Huntington Drive work is carried out in the years now programmed it will draw down transportation special funds substantially. "In order to do this, we're actually gonna be taking a—you could remember me talking about borrowing from the general fund," Brian said. Staff proposed a temporary cash-flow loan from the general fund—$1,700,000 in the first year and $95,000 in a later year—followed by repayments as special funds rebuild; the plan anticipates repayment by fiscal year 2033–34.

Why it matters: shifting Huntington Drive reduces the risk of starting construction without matched grant dollars and aims to maximize grant leverage, but it forces short-term cash-flow choices. Sandoval emphasized that the Huntington Drive features (sidewalks, pedestrian lighting, ADA ramps, landscaping, crosswalk improvements and signage) were integral to securing the pedestrian grant because they mirrored the 2018 Town Center plan and 2019 Duarte Town Center Greening and Traffic Calming Plan.

The workshop also flagged a related funding item: the Donald and Bernice Watson Recreation Trail came in higher than originally budgeted. Sandoval said the lowest responsive bid was $1,679,000 and staff proposed a $1,800,000 construction budget (including a 7% contingency). Because Caltrans administers the $1,600,000 grant and requires an 11.8% match, Sandoval said the city can request reimbursement for up to $190,000 of construction engineering/staff time and that the remaining city match would be about $216,000, with Measure M eligible to fill the gap.

Council reaction and next steps: councilmembers asked for more detail on the specific timing and repayment schedule for the proposed general-fund loan and asked staff to return with line-item numbers at the May 5 budget workshop. Brian summarized the city's current reserve position—about 109% coverage—and said a formal reserve policy (targeting a best-practice range of 60–80%) would help guide decisions on when to spend surpluses vs. hold them for stability.

The council made no formal motions or votes at the workshop; staff will refine the CIP tables and bring detailed budget worksheets back at the May 5 budget meeting ahead of the June budget and CIP adoption.