| | | | | | | |  | STAFF REPORT
For Meeting of January 28, 2019
MAYOR AND MEMBERS OF THE CITY COUNCIL | Agenda Item # 7.A.
TITLE: Public Works Capital Improvement Plan (CIP) Adoption |
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| | | | | | | | Subject
This action will adopt a comprehensive Capital Improvement Plan for the Water, Sewer, and Street departments to assist in more efficiently planning and budgeting resources.
Summary and Background
Development of a “master infrastructure plan” has been identified as a City Council goal each of the past three years. That has evolved into a Capital Improvement Plan for the Water, Sewer, and Street departments. Naturally, creating a cohesive plan for three related, but independent, systems featuring 83 miles of water main, 72 miles of sewer pipe, and 161 lane-miles of roadway, has proven to be very complex and challenging. The challenge has not been in identifying capital needs through the various systems, but how best to triage those needs, and end up with a product which is financially realistic for current users, and does not leave future users holding the bag of deferred maintenance.
Although much work has gone in to producing a plan which is financially realistic, it is also important to understand that the Capital Improvement Plan is just that; a plan for how to prioritize and allocate resources within these departments over the next 5-6 years. Unforeseen impacts are sure to arise, both positive and negative, which will require some changes to projects ‘penciled in’ to years 4, 5, and 6. Outside funding opportunities may arise, global; regional; and local economic changes outside of our control will occur, and we will need to be flexible in order to address these issues. Therefore, it is the stated intention within the CIP itself, that the plan be revisited and updated at least every two years.
Work to develop the CIP first began in mid-2016 by compiling as many known capital needs as possible amongst the three Public Works Departments, and the results were sobering. A refined initial project list was presented to the City Council’s Public Infrastructure Committee (PIC) in early 2017, at which point the work began to further refine the project need/scope in to something more financially realistic. After the initial PIC feedback, staff split the CIP in to two project inventories, one which showed a 5-year plan of potential projects, and one which was simply listed as department appendices. The appendices are where it was decided to, rather than lose track of known needs which are currently infeasible to pay for, retain those and begin building a library of potential projects which may be pulled forward in to the 5-year plan as time passes. Therefore, the CIP presented here shows projects which are generally considered to be financially viable to be completed by fiscal year 2023-24. The projects listed in the department appendices are currently unfunded within that time frame.
Although this document feels like a budget document, the CIP is not the same as the adopted budget for each of these departments. The CIP is intended to provide substantial context and cost estimates for use in developing the annual budgets for each department, which will still be reviewed by the Budget Committee and adopted by the City Council each year. Therefore, although a project is shown to be completed in a specific fiscal year in the CIP, the Council may still choose to defer that project to a future budget.
Tie-In to Council Goals:
Fiscal Information
Adoption of this CIP does not commit any funds toward the completion of these projects, but rather provides policy direction to City Administration to develop actual budget recommendations for future adoption.
Projects anticipated to be funded and completed by FY ’23-’24 are anticipated to cost:
• Water: $4.4M.
• Sewer: $6.5M
• Streets: $7.95M
The total un-funded project lists included in the appendices are estimated to cost:
• Water: $7.4M
• Streets: $13.4M
• Sewer: $n/a – No projects were included in the Sewer appendix because a major portion of annual sewer costs in the CIP are annual savings to go toward several projects beyond FY ’24. Additionally, the current collection system master plan is nearing the end of its shelf-life, with plans to update that document as part of the CIP. The update of the collection system master plan will result in a long list of specific pipe/pump replacement projects.
Alternatives and Recommendation
Alternatives
1. Approve the proposed CIP as presented.
2. Send the proposed CIP back to the Public Infrastructure Committee with specific recommendations for change.
Recommendation
1. Approve the proposed CIP as presented.
Requested Action/Motion
Motion to approve the proposed CIP as presented.
Submitted By: Mark Morgan |
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