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HomeMy WebLinkAboutItem 4: FY14-19 Capital Improvement Program ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: FY 2014-2019 Capital Improvement Program Meeting Date: March 11, 2013 Agenda Item Number: 4 Department: Central Services Staff Contact: Pavel Gubanikhin www.eugene-or.gov Contact Telephone Number: 541- 682-5512 ISSUE STATEMENT This item is a request for the City Council to adopt the Capital Improvement Program (CIP) for fiscal years 2014 through 2019 (FY 2014-2019). 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 FY 2014-2019 CIP for the Airport, Parks and Open Space, Public Buildings and Facilities, Stormwater, Transportation and Wastewater totals approximately $329.9 million, of which $177.1 million is funded and $152.8 million is unfunded. The Financial Summaries section of the CIP document contains tables summarizing all CIP projects, a six-year funding summary, and maps indicating the geographic location of funded CIP projects. The primary goals of the CIP are to: • Provide a balanced program for capital improvements given anticipated funding revenues over a six-year planning period; • Illustrate unmet capital needs based on anticipated funding levels, and; • Provide a plan for capital improvements which can be used in preparing the Capital Budget for the coming two fiscal years. Capital projects are generally large-scale endeavors in terms of cost, size and benefit to the community. 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 Projects with funding identified or funding secured in this CIP total approximately $177.1 million. Approximately $69.6 million of anticipated spending on Transportation projects represents the largest portion of the CIP. The Pavement Preservation Program projects account for $67.3 million of the Transportation projects. S:\CMO\2013 Council Agendas\M130311\S1303114.doc Airport is the second largest category with $39.5 million in proposed projects. Terminal Building Expansion accounts for $11.4 million in this category. Other significant projects include Concourse C Addition, Automated Car Wash Facility, Access Road Improvements and Taxiway Rehabilitation. Public Buildings and Facilities projects include significant improvements during the CIP period totaling $30.3 million. Projects include preservation and maintenance of existing City facilities and future phases of the City Hall project. The Stormwater system is planning to invest $14.8 million on improvements in this CIP. The FY 2014-19 CIP includes continuation of drywell removal, various streambank and outfall stabilization projects, restoration and enhancement of the wetlands in West Eugene, and ongoing stream corridor acquisition. The City’s Wastewater system is scheduled to spend $13.9 million on capital projects in the next six years. Included in these improvements is $12.8 million to preserve and rehabilitate the aging wastewater system, decrease inflow and infiltration and address increased wet weather flows. Parks and Open Space section of the draft CIP contains $9.1 million in funded projects. Parks preservation and maintenance and neighborhood and community park acquisition are the two largest projects in the category. The vast majority of funding for the CIP projects comes from sources that are restricted to a particular use, such as the 2008 and 2012 Street Bonds, FAA funding for airport projects, wastewater and stormwater charges, local motor vehicle fuel tax, system development charges (SDC), airport passenger facility charges, and other restricted sources. Out of $177.1 million in funded CIP projects, $23.1 million, or 13 percent of the total, comes from the General Capital Projects Fund, which derives most of its revenue from the annual interfund transfer from the City’s General Fund. The recommended use of this transfer in the draft FY 2014-2019 CIP is facilities and parks capital preservation projects. Unfunded Projects Also included in the CIP are projects totaling $152.8 million for which funding has not been identified. The Transportation category includes $66.3 million of these unfunded projects, primarily funding for the Pavement Preservation Program project backlog and Franklin Boulevard multiway improvements. The Public Buildings and Facilities category includes $57 million in unfunded projects, Stormwater - $15.9 million, and Parks and Open Space category - $9.9 million in unfunded projects. CIP Development and Review Process In the fall of even-numbered years, City staff compiles the draft CIP using input and requests from a variety of sources, including adopted City policies and plans, neighborhood groups, individual citizens, and other stakeholders. The draft CIP document was made available on the City’s web site in January of 2013. Information about the draft FY 2014-19 CIP was also sent electronically to interested citizens via the City S:\CMO\2013 Council Agendas\M130311\S1303114.doc Council newsletter, Neighborhood Services newsletter, Budget Interested Parties e-mail list, and Public Works Department’s InMotion newsletter. Hard copies of the draft CIP document were made available to the public at the Downtown Public Library, the Finance Division, and the City Manager’s Office. The Budget Committee conducted a public hearing on the draft FY 2014-2019 CIP on February 21, 2013. The committee passed a motion to recommend that the City Council adopt the FY 2014- 2019 CIP as proposed. The City Council conducted a public hearing on the draft FY 2014-2019 CIP on February 25, 2013. 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 The City Council may exercise one of the following two options: 1.The council may choose to adopt the FY 2014-2019 CIP as recommended by the Budget Committee. 2.The council may choose to amend the CIP by identifying changes in the projects and/or funding sources and adopt the FY 2014-2019 CIP that includes those changes. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the council adopt the FY 2014 -2019 CIP as recommended by the Budget Committee. SUGGESTED MOTION Move to adopt the FY 2014-2019 Capital Improvement Program as recommended by the Budget Committee. ATTACHMENTS None. Draft FY 2014-2019 CIP was previously distributed to the Mayor and City Council in hard copy, and is available for review at www.eugene-or.gov/CIP. FOR MORE INFORMATION Staff Contact: Pavel Gubanikhin Telephone: 541- 682-5512 Staff E-Mail: Pavel.E.Gubanikhin@ci.eugene.or.us S:\CMO\2013 Council Agendas\M130311\S1303114.doc OR Staff Contact: Mia Cariaga Telephone: 541- 682-5408 Staff E-Mail: Mia.Cariaga@ci.eugene.or.us S:\CMO\2013 Council Agendas\M130311\S1303114.doc