HomeMy WebLinkAboutItem 5: FY2010-15 Draft CIP and attA
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UGENE ITY OUNCIL
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GENDA TEM UMMARY
Action: FY 2010-2015 Draft Capital Improvement Program
Meeting Date: February 23, 2009 Agenda Item Number: 5
Department: Central Services Staff Contact: Pavel Gubanikhin
www.eugene-or.gov Contact Telephone Number: 682-5512
ISSUE STATEMENT
This item is a request for the council to take action on the Draft FY 2010 – 2015 Capital Improvement
Program.
BACKGROUND
The Capital Improvement Program (CIP) is a planning document that forecasts the City's capital needs
over a six-year period based on various City-adopted long-range plans, goals and policies. The Capital
Improvement Program for the Airport, Parks and Open Space, Public Buildings and Facilities,
Stormwater, Transportation and Wastewater totals approximately $499.8 million in funded and
unfunded projects. The Financial Summaries on pages 29-47 of the document contain tables
summarizing all CIP projects in the plan and a two-year funding summary.
The goals of the CIP are to:
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Provide a balanced program for capital improvements given anticipated revenues over a six-year
planning period;
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Illustrate unmet capital needs which are beyond the capacity of anticipated funding levels, and;
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Provide a plan for capital improvements which can be used in preparing the capital budgets for
the coming two fiscal years.
The underlying strategy of the CIP is to plan for land acquisition, construction, and major preservation
of public facilities necessary for the safe and efficient provision of services. A critical element of a
balanced CIP is the provision of funds to preserve or enhance existing facilities and provide new assets
that will aid response to service needs and community growth.
Funded Projects
As drafted, projects with secured and identified funding in this CIP total approximately $182.2 million.
The Airport is expecting to complete significant improvements during the CIP period totaling almost
$44.6 million. A major project in FY10 is the construction of a replacement Aircraft Rescue and Fire
Fighting (ARFF) facility. Other major Airport projects include Preservation and Maintenance, and Site
and Facility improvements involving runway overlays, ramp rehabilitation and reconstruction, taxilane
extensions and ramp expansions.
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The Parks and Open Space program is anticipating about $11.2 million of improvements during the CIP
period. Several of the Parks and Open Space projects funded through System Development Charges
(SDC) have had their status changed from “Funding Secured” to “Funding Identified”, or had the SDC
portion of the project funding reduced, due to a projected shortfall in SDC revenues.
Several projects are also anticipated over the next six years in the Public Buildings and Facilities
category. The approximately $29.6 million of funded projects in this category are mainly for
preservation and maintenance of existing City facilities. This category also contains several placeholder
projects, including City Hall Replacement, the Police Patrol Facility and the Police Special Operations
Facility.
$13.3 million of improvements to the Stormwater system are planned in this CIP. Several of the
Stormwater projects funded through System Development Charges (SDC) have had their status changed
from “Funding Secured” to “Funding Identified”, or had the SDC portion of the project funding reduced,
due to a projected shortfall in SDC revenues.
$69.4 million of anticipated spending on Transportation projects represents the largest portion of the
CIP. Large projects with funding secured or identified include the Pavement Preservation Program,
Delta Ponds Overpass, Elmira Road/Maple Street and Bertelsen Road upgrades to City standards.
Several of the Transportation projects funded through System Development Charges (SDC) have had
their status changed from “Funding Secured” to “Funding Identified”, or had the SDC portion of the
project funding reduced, due to a projected shortfall in SDC revenues.
The City’s Wastewater system is scheduled for almost $14.1 million of improvements in the next six
years, with most of the capital spending designated for wastewater system rehabilitation. Several of the
Wastewater projects funded through System Development Charges (SDC) have had their status changed
from “Funding Secured” to “Funding Identified”, or had the SDC portion of the project funding reduced,
due to a projected shortfall in SDC revenues.
Unfunded Projects
Also included in the CIP are projects totaling $103.7 million for which funding has not been identified.
The CIP also contains $213.9 million in placeholder projects for which funding has not been identified
and which are still in the decision process.
Transportation projects continue to reflect significant need for additional funding. The CIP includes
approximately $59 million of unfunded projects that would upgrade and enhance capacity and preserve
and maintain existing assets, as well as build new bike paths, collectors and other improvements. The
Public Buildings and Facility category contains approximately $31 million in unfunded projects. The
Parks and Open Space category has $13.6 million in unfunded projects.
CIP Development and Review
During the summer and early fall of even-numbered years staff compiles the Draft CIP using input and
requests from a variety of sources, including neighborhood groups, individual citizens, adopted plans
and policies, etc.
The draft CIP document was made available on the City’s web site in early December of 2008. On
December 12, 2008, information about the draft FY 2010-15 CIP, capital projects specific to particular
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neighborhoods, and the information on opportunities for providing public input on the draft CIP was
mailed to all of the neighborhood association chairs and co-chairs, as well as the representatives of the
Neighborhood Leaders Council (NLC). A hyperlink to the draft CIP document on the City’s website
was sent to the neighborhood association leaders and NLC representatives during the week of December
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15. Neighborhood specific articles have been sent to each neighborhood newsletter editor with the
request that they be included in their December-February editions.
Printed copies of the draft FY 2010-15 CIP were sent to the members of the Budget Committee,
neighborhood leaders, NLC representatives and other community stakeholders on January 8, 2009. They
were also distributed to City libraries, and community and senior centers.
On January 28, 2009, the Budget Committee reviewed and discussed the draft CIP. The Budget
Committee approved a motion to recommend that the council adopt the Draft CIP with several staff-
recommended amendments as described in Attachment A.
A notice about the February 17, 2009, City Council Public Hearing on the CIP was sent via e-mail to all
of the neighborhood association chairs and co-chairs, representatives of the Neighborhood Leaders
Council (NLC), and citizens on the Budget Interested Parties e-mail group.
On February 17, 2009, the City Council held a public hearing on the CIP. The City Council received
public comments from three citizens regarding the draft FY 2010-15 CIP as summarized below:
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John Barofsky, Chairman of the City of Eugene Budget Committee, commented on the
importance of adequate funding for the preservation of existing buildings and facilities through
proactive repairs and maintenance. He also suggested that the annual year-end transfer of
$900,000 from the General Fund to the General Capital Projects Fund should be a part of the
adopted budget and not handled via a supplemental budget process.
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Mary Ann Holser, member of the City of Eugene Budget Committee, commented on the need to
preserve the existing City Hall and retrofit it for seismic safety, and on the proposed Police
Patrol Facility.
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Zachary Vishanoff seconded the comments made by the first two speakers.
RELATED CITY POLICIES
The City’s Financial Management Policies include a goal to have a capital improvement program that
adequately maintains and enhances the public’s assets over their useful life. In part, the policies state
that the City will plan for capital improvements over a multi-year period and the projects will directly
relate to the long-range plans and policies of the City.
COUNCIL OPTIONS
There are two options, should the council choose to take action on this item at this time.
1. The council may choose to adopt the FY10-FY15 CIP incorporating the recommendations of the
Budget Committee and City staff.
2. The council may choose to further amend the CIP by identifying changes in the projects and funding
sources and subsequently adopt the FY10-FY15 CIP.
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CITY MANAGER’S RECOMMENDATION
The City Manager recommends that the council adopt the FY10-FY15 CIP including the recommended
amendments of the Budget Committee and staff.
SUGGESTED MOTION
Move to adopt the FY10-FY15 Capital Improvement Program incorporating the recommendations
forwarded by the Budget Committee and staff.
ATTACHMENTS
A. Staff recommended changes to the CIP
FOR MORE INFORMATION
Staff Contact: Pavel Gubanikhin
Telephone: 682-5021
Staff E-Mail: pavel.e.gubanikhin@ci.eugene.or.us
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ATTACHMENT A
Staff Recommended Changes
Staff has compiled a list of recommended changes to the Draft FY 2010-15 CIP. These changes were
approved by the City of Eugene Budget Committee on January 28, 2009.
Section/Project Title Page Draft FY10- FY15 CIP Changes
Debt Capacity - Overview p. 27 Change the first sentence of the second paragraph to
read “The City has used only about 6% of its more
than $678 million of legal debt capacity for general
obligation bonds as of June 30, 2008.”
Debt Capacity - Overview p. 27 Change net direct debt as a percentage of real market
value (row 1 of the Debt Affordability Ratios table)
from 0.2% to 0.25%.
Debt Capacity - Overview p. 27 Change percent of net direct debt retired within 10
years (row 2 of the Debt Affordability Ratios table)
from 84% to 90%.
Debt Capacity - Overview p. 27 Change annual debt service on all General Fund-
backed debt as a percent of General Fund
expenditures (row 3 of the Debt Affordability Ratios
table) from 2.9% to 2.8%.
Debt Capacity – Projected p. 28 Change the first sentence of the first paragraph to
Debt Burden read “As of June 30, 2009, there will be about $165
million of additional capacity for debt issuance
within the policy limits.”
Financial Summaries Table of p. 29 Change page footer to read “City of Eugene 2010-
Contents 2015 Capital Improvement Program”.
Airport Table of Contents p. 61 Change page footer to read “City of Eugene 2010-
2015 Capital Improvement Program”.
Neighborhood and p. 98 Change the Parks SDC portion of the project funding
Community Park Acquisition as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$360 $330 $730 $735 $0 $0 $2,155
Ferndale Park Development p. 99 Change the Parks SDC funding for this project as
follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $0 $0 $438 $438
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Section/Project Title Page Draft FY10- FY15 CIP Changes
Royal/Danebo Park p. 100 Change project status from “Funding Secured” to
Development (Grasshopper “Funding Identified”.
Meadow)
Alton Baker Irrigation System p. 102 Change the Parks SDC funding for this project as
follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $212 $0 $0 $0 $0 $212
Alton Baker Park Renovations p. 103 Change the Parks SDC funding for this project as
follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $213 $0 $0 $213
Park Lighting Renovations p. 104 Change the Parks SDC funding for this project as
follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $213 $0 $0 $0 $213
PROS Priority 1 p. 106 Change the Parks SDC funding for this project as
Neighborhood Park follows ($ in thousands):
Renovations
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $0 $0 $192 $192
PROS Priority 1 Play Area p. 107 Change the Parks SDC funding for this project as
Renovations follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $0 $192 $0 $192
Eugene Depot Phase 3 p. 159 Change the first sentence of the Project Description
paragraph to read “The Depot Phase 3 project of $2.8
million is the City of Eugene’s portion of an
estimated $17.3 million project to provide a layover
facility for Amtrak trains”.
Echo Hollow/Sheldon Pool p. 163 Change picture captioning from “Having fun in the
Systems Preservation pool!” to “Echo Hollow Pool Deck”.
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Section/Project Title Page Draft FY10- FY15 CIP Changes
Streambank and Outfall p. 182 Change the Stormwater SDC portion of the project
Stabilization funding as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $0 $0 $0 $0
Services for New p. 187 Change project status from “Funding Secured” to
Development - Stormwater “Funding Identified”.
Street Lighting (Arterials & p. 196 Change project status from “Funding Secured” to
Collectors) “Funding Identified”.
Traffic Operations p. 197 Change project status from “Funding Secured” to
Improvement Program “Funding Identified”.
Traffic Signal Improvements p. 198 Change project status from “Funding Secured” to
and Upgrades “Funding Identified”.
Pavement Preservation p. 200 Change the Transportation SDC portion of the project
Program funding as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$530 $510 $500 $500 $500 $550 $3,090
Pavement Preservation p. 201 Change project status from “Funding Identified” to
Program – Funding for Project “Funding Secured”.
Backlog
Services for New p. 203 Change the Transportation SDC portion of the project
Development - Transportation funding as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$0 $0 $0 $0 $0 $0 $0
Bailey Hill Road, 450’ South p. 202 Change project name to “Bailey Hill Road, South of
of Warren to 1,100’ South of Warren to South of Bertelsen, Prelim. Design.”
Bertelsen Change project category from “Upgrades and
Capacity Enhancement” to “Upgrade to City
Standards”.
Wastewater Table of Contents p. 219 Change page footer to read “City of Eugene 2010-
2015 Capital Improvement Program”.
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Section/Project Title Page Draft FY10- FY15 CIP Changes
Wastewater Services for New p. 223 Change the Wastewater SDC portion of the project
Development funding as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$50 $70 $65 $60 $45 $45 $335
Wastewater System p. 226 Change the Wastewater SDC portion of the project
Rehabilitation funding as follows ($ in thousands):
2010 2011 2012 2013 2014 2015 Total
$30 $300 $270 $230 $300 $300 $1,430
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