Discussion and possible action to adopt RES. 2025-54 approving the Fiscal Years 2026-2035 Capital Improvement Program.

The Capital Improvement Program is the City’s budget for financing capital projects. This is an essential part of the City’s plan to extend services and facilities to the community. This 10-year funded program aligns with the City’s General Plan, and incorporates the facility and infrastructure master plans prepared and maintained by various departments throughout the organization. Each year, the City reexamines this program to ensure projects align with current requirements to preserve levels of service provided.

The proposed CIP is a $1,906,439,153 plan to support various projects through FY 2035. The FY 2026 capital budget of $572,026,263 reflects the first year of the plan, which includes $293,922,247 carryover requests from FY 2025. The 10-year capital plan is fiscally balanced, meaning that the capital costs of each project have an identified funding source based on reliable revenues. The CIP addresses projects that are needed—or will be needed—across a broad spectrum of areas, including drainage, economic development, operational facilities, parks, public safety, streets, traffic control, and water and wastewater systems. The City has also added an additional project category to be able to monitor all projects related to the Peoria Innovation Core (PIC).

At the March 26, 2025, Budget Study Session, Mayor and Council received a presentation and supporting project details on the proposed FY 2026-2035 CIP. As follow-up to this review and discussion of various projects included in said program, the following adjustments have taken place: 

Adoption of the CIP establishes the City’s plan for infrastructure development over the next 10 years; it does not provide the legal appropriation needed to expend public funds on the projects included in the program. Adoption of the City’s final budget (scheduled for City Council action on May 20, 2025) appropriates the first year of the CIP, providing the budget authority required to expend money on projects scheduled for FY 2026.

Notable projects planned for the next five years are summarized herein.

Drainage Projects

•  The 67th Avenue and Pinnacle Peak Road Regional Drainage Improvements project includes coordination with the Flood Control District of Maricopa County (FCDMC) to implement a regional storm drain system in the area of 67th Avenue and Pinnacle Peak Road. The project includes storm water basins, channel improvements, box culverts, storm drains, laterals, and catch basins that are an extension of the overall drainage system.

• The 75th Avenue and Olive Avenue Regional Basin project provides for the design and construction of a regional storm drain basin and other facilities to provide 100-year storm drain protection for Section 35, complete the west half-street improvements along 75th Avenue between Olive Avenue and Golden Lane and the north half-street improvements on Golden Lane between 75th Avenue and the Peoria Industrial Park.

• The 83^rd Avenue, Peoria Avenue and Grand Avenue Drainage Improvement project will provide for the drainage study to identify drainage improvements and the future design, land acquisition and construction phases for the drainage improvements identified by the drainage study.

Economic Development Projects

•  The Downtown Redevelopment project entails four distinct projects that improve the City's Downtown Streetscape and Redevelopment, focusing on creating a 'place to be' for families while improving the economic vitality of the Downtown area.
• The City of Peoria has entered into a development agreement to support public infrastructure for two half-streets as part of an economic development incentive strategy for Project Amkor and Project Concept Companies.
• The Economic Development Agreement project accounts for financial commitments as identified in those agreements for the upcoming fiscal years.

Operational Facilities Projects

•  The Municipal Complex Entry Plaza Improvements project is a continuation of a prior phase where the decommissioned fountain structure and pertinent utilities on the north side of the Peoria Municipal Complex were demolished and the project area (aka 'the front yard') made ready for the next phase of improvements.  This phase entails the design and construction of fully accessible hardscape, drought mindful landscape, irrigation and shade improvements to support public events/festivals and passive recreation.
• The Fleet Shop Replacement project entails the design and construction of a new fleet maintenance facility sized and equipped to meet the needs of the City's fleet growth and changes in the delivery of fleet maintenance services. This new facility will be located at the Municipal Operations Center (MOC), allowing for phased construction and the transition of fleet operations from the outdated 28-year-old facility into the new. A new facility will remedy Arizona Division of Occupational Safety and Health (ADOSH) and Arizona Department of Environmental Quality (ADEQ) compliance challenges.
• The City Hall Renovation project includes improvements to the Council Chambers, which will enhance public and occupational functionality. Construction is scheduled to begin in FY 2026.

Parks & Recreation Projects

•  The Sports Complex Improvements project will provide enhancements to the Stadium facility, playing field surfaces, baseball amenities, and team clubhouses. This will ensure that it retains its attractiveness and first choice for residents and out of state visitors.
• The Pioneer Park 2-Acre Parcel project provides funding for the design and development of a 2-acre parcel of land adjacent to and directly west of Pioneer Community Park.  Potential improvements may include lighted hard-court surfacing, social event spaces, picnic shelter, etc.
• The Mountain, Open Space, and River Ecosystems project will provide funding for the design and implementation of opportunities and amenities for significant active and passive mountain, desert, and river open space conservation areas that provide wildlife habitat, scenic vistas, recreational access, and cultural opportunities.

Peoria Innovation Core (PIC)

•  The Peoria Innovation Core (PIC) Transportation Feasibility Study will provide for a transportation feasibility study for the 6,700 acres area known as the Peoria Innovation Core ("PIC"). The study will allow staff to better understand transportation needs required to support projected growth and guide future improvements as development progresses in the PIC  (Core 1, 2, and 3).
• The Lake Pleasant Pkwy; L303 to CAP (Core 2) project will provide for the design, land acquisition and construction for the extension of the water system, wastewater system, reclaim water, interconnect, dry utilities, traffic control, bridge over CAP and widening of Lake Pleasant Pkwy between L303 and CAP.
• The Ashler Hills; LPP to 96th Av Roadway Improvements (Core 2) project will provide for design, land acquisition and construction of Ashler Hills from Lake Pleasant Pkwy to 96th Av to an arterial cross section.

Public Safety Projects

•  The Multipurpose Police Facility project allows for improvements to a recently purchased building that will accommodate several needs, including vehicle impound evidence storage, physical evidence storage, forensic analysis and processing of vehicles, and tactical training and classroom space. This project will replace the need for several previously funded capital projects.
• The Fire Station No. 8 project provides funding to construct a new fire-medical station on a 2.5 acre parcel in the northwest portion of the city. The estimated 13,500 square feets, single story, 4-bay station will serve residents in the Vistancia, Saddleback, and Mystic communities.
• The Public Safety Helicopter request will add a second helicopter to the Public Safety Aviation program.Benefits of an additional aircraft include increased mission capabilities, increased overall longevity of air fleet and reduction of downtime during maintenance of a single aircraft.A second aircraft will also increase the timeline of costly maintenance overhaul by splitting operational hours between multiple aircraft delaying mandatory maintenance further into the operation of the program.

 Streets Projects

•  The 67^th Avenue Widening project extends from Pinnacle Peak Road to Happy Valley Road adding travel lanes, converting a portion of the above ground utilities underground but also includes the installation of bike lanes, raised medians, curb, gutter, sidewalk, streetlights, and landscaping.
• The El Mirage Rd; L303 to Jomax Rd project provides for the pre-design, design, land acquisition and construction of El Mirage Rd between L303 and Jomax Rd.
• The Westward Skies Extension to Vistancia Blvd & Traffic Signal project will provide for the design, land acquisition and construction of the Westward Skies extension 1,650 feet to the south boundary of Five North at Vistancia. Improvements for this 5-lane road include drainage facilities, street lighting, landscaping, and a full traffic signal at the intersection of Vistancia Blvd and Westward Skies.

Traffic Control Projects

•  The Vistancia Blvd & Lone Mtn Pkwy Intersection Improvements project will provide for the design, land acquisition, and construction of the roundabout and intersection improvements at Vistancia Boulevard and Lone Mountain Parkway.
• The 107th Av & Rose Garden Ln Traffic Signal project includes intersection improvements and installation of a traffic signal at the intersection of 107th Avenue and Rose Garden Lane.
• The School Flashing Signals project will provide for the design, construction, and operation and maintenance of school flashing lights to be installed at schools located on arterial streets and parkways.

Water Projects

•  The CAP/LPP Intersection Wellfield project provides for the project coordination, public involvement, pre-design studies, design, land acquisition, construction, materials testing, construction administration, utility coordination, and all related site work for the construction of five new potable water wells, approximately 9,200 linear feet of new 16-inch waterline, 1,200 linear feet of 24-inch waterline, and 3,100 linear feet of 36-inch waterline in the vicinity of Lake Pleasant Parkway and the Central Arizona Project (CAP) Canal.
• The Zone 5E/6E Reservoir & Booster Pump Station will serve as a regional storage and booster pump facility for a large geographical area near Lake Pleasant Parkway between Loop 303 and State Route 74. This facility is needed to serve expected commercial and residential growth in the Lake Pleasant Parkway corridor, as well as to provide possible treatment of water produced at multiple area wells.
• The Patterson Reservoir Well Connections & Well Site Improvements will provide pre-design, design, utility coordination, permitting, construction administration, and construction services for improvements of aging infrastructure at the well site located at 104th Avenue and Deer Valley Road (W210), the well site at 105th Avenue and Rose Garden Lane (W209) and the Patterson well, reservoir, and booster pump station site at 107th Avenue and Williams Road (W211).

Wastewater Projects

•  The Reclaimed Water Transmission Main project will design and construct approximately five miles of new 24-inch reclaimed water transmission main that will connect the Jomax Water Reclamation Facility (WRF) to the Beardsley WRF.
• The Butler WRF PLC Replacements project includes the design, procurement, installation, programming, testing, and startup of the programmable logic controllers (PLC) at the Butler Water Reclamation Facility (WRF).
• The Butler WRF Odor Control System Upgrades project provides for the project coordination, public involvement, design, construction, materials testing, and construction administration for the installation of a biological odor control system at the Butler Water Reclamation Facility (WRF).

Mayor and Council reviewed and discussed the proposed Fiscal Years 2026-2035 Capital Improvement Program at the March 26, 2025, Study Session.

Staff recommends approval of the resolution to adopt the Fiscal Years 2026-2035 Capital Improvement Program.