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Home My WebLink About12-03-18 City Commission Packet Materials - C2. Adopt the Library Depreciation Fund CIP for FY 2020-2024 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adopt the Library Depreciation Fund Capital Improvement Plan (CIP) for Fiscal Years 2020-2024 AGENDA ITEM TYPE: Consent MEETING DATE: December 3, 2018 RECOMMENDATION: Adopt the Library Depreciation Fund Capital Improvement Plan (CIP) for Fiscal Years 2020-2024. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The Library, City Manager, and other city staff met in October to develop the attached Capital Plan for the equipment and capital needs of the Library. This plan was proposed to and approved by the Library Board at their meeting on November 14, 2018. Similar to recent years past, we are bringing the various parts of the plan forward as items on the Consent agenda. We will be prepared to address questions, if they arise, at the public meeting. Relationship to the Strategic Plan: • This year we worked towards item 7.1 b -Create a Culture of Innovation by changing our CIP database system for project tracking and plan development. We are now using our city-wide budgeting system’s project module for all CIP items. This will make it easier to merge approved projects into the recommended budget, begin tracking projects in their initial stages, and give us increased project cost reporting. The change has 11 resulted in a different report “look-and-feel,” and we are working to evolve and refine how the CIP reports appear. • We are also recommending that we continue to innovate the plan for next year by increasing the CIP threshold from its current level of $10,000 to a new minimum level of $25,000. Currently, the $10,000 threshold causes many maintenance and other operational budget items to be included in the capital plan. For the FY21 to FY25 CIP we recommend using a $25,000 threshold. This will align us with best practices and allow us to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: November 16, 2018 Attached: Library Depreciation Fund CIP Section 12 LIBRARY DEPRECIATION FUND FINANCIAL SUMMARY Financial Summary Current YearFY19 FY20 FY21 FY22 FY23 FY24UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 337,527$ 257,584$ 20,902$ (9,913)$ 35,155$ 81,125$ Plus: Estimated Annual Unspent Appropriations 42,057$ 43,318$ 44,185$ 45,068$ 45,970$ 46,889$ ‐$ Less: Carryover FY18/17 Capital Projects (90,000)$ Less: Scheduled CIP Project Costs (32,000)$ (280,000)$ (75,000)$ ‐$ ‐$ ‐$ ‐$ Projected Year‐End Cash Dedicated to CIP 257,584$ 20,902$ (9,913)$ 35,155$ 81,125$ 128,014$ Assumptions Made for Revenue Estimates: Current YearFY19 FY20 FY21 FY22 FY23 FY24Estimated Annual Library Budget 2,213,510$ 2,279,915$ 2,325,514$ 2,372,024$ 2,419,464$ 2,467,854$ Estimated Amount of Budget left Unused 1.9% 1.9% 1.9% 1.9% 1.9% 1.9%Estimated Annual Unspent Appropriations 42,057$ 43,318$ 44,185$ 45,068$ 45,970$ 46,889$ Current Budget Amount Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Capital Improvements % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP 42,057$ 43,318$ 44,185$ 45,068$ 45,970$ 46,889$ ProjectedProjectedCURRENT$(280,000)$(75,000)$‐$‐$‐$‐FY19 FY20 FY21 FY22 FY23 FY24 UNSCHEDULEDLIBRARY DEPRECIATION FUND PROJECTS & EQUIPMENT13 LIBRARY DEPRECIATION FUND PROJECT SUMMARY Project # Project Name FY2020 FY2021 FY2022 FY2023 FY2024LIB22New Carpet Public Area 230,000 ‐ ‐ ‐ ‐ LIB27Reconfigure 2 Customer 50,000 ‐ ‐ ‐ ‐ LIB26Materials Conveyor System ‐ 75,000 ‐ ‐ ‐ Fiscal Year totals 280,000 75,000 ‐ ‐ ‐ 14 LIBRARY DEPRECIATION FUND DETAIL BACKGROUND Any unspent budget authority within the Library’s departmental budget in the General Fund is transferred to this fund at year‐end. The amount transferred each year fluctuates greatly; especially when personnel positions remain vacant for extended periods of time. Our estimate for the coming years of the plan are that approximately 1.9% of the annual budget will remain unspent – to be transferred to this fund. CAPITAL PLAN SUMMARY The largest project is planned for FY20 with LIB22, the replacement of carpet in the Public Area. This project will be done over time to avoid shutting down the Library for extended amounts of time. The other project slated for next year is a customer service desk reconfiguration that will help realign staff and create efficiency. 15 Project Name Year Description Amount Total Project #NEW CARPET FOR THE PUBLIC AREA OF THE LIBRARY. 230,000 DESCRIPTION: ‐ REPLACE WORN CARPETING IN LIBRARY ON BOTH FLOORS, ‐ IN PUBLIC AREAS. ‐ ALTERNAITVES CONSIDERED: ‐ LIBRARY PATRONS AND STAFF WILL CONTINUE TO WALK ‐ ON WORN CARPET. ‐ ADVANTAGES OF APPROVAL: ‐ THE 10‐YR. OLD CARPET IS BEGINNING TO SHOW A ‐ GREAT DEAL OF WEAR FROM THE 1000‐1500 PEOPLE ‐ A DAY WHO COME THROUGH THE LIBRARY. IT WILL HAVE ‐ TO BE REPLACE AT SOME POINT FOR BOTH AESTHETIC ‐ REASONS AND AS A SAFETY PRECAUTION. ‐ ADD OPERATING COSTS: ‐ NONE ‐ MATERIALS CONVEYOR SYSTEM FOR CIRCULATION DPT 75,000 DESCRIPTION: ‐ AUTOMATED CONVEYOR SYSTEM FOR RETURNED BOOKS ‐ AND MATERIALS WILL PRE‐SORT MATERIALS FOR STAFF ‐ AND SAVE ON STAFF TIME. ‐ ALTERNATIVES CONSIDERED: ‐ CONTINUE TO HANDLE RETURNED MATERIALS MANUALLY ‐ ADVANTAGES OF APPROVAL: ‐ GREATER EFFICIENCY IN CIRCULATION DEPARTMENT, ‐ SAVE STAFF TIME ‐ ADD OPERATING COSTS: ‐ NONE ‐ 230,000 Materials conveyor system 202175,000 LIB26 2020New Carpet Public Area LIB22 16 Project Name Year Description Amount Total Project #RECONFIGURE 2 CUSTOMER SERVICE AREAS 50,000 DESCRIPTION: ‐ WE ARE COMBINING TWO SERVICE POINTS INTO ONE ON ‐ BOTH THE FIRST FLOOR AND SECOND FLOOR OF THE ‐ LIBRARY. THIS WILL INVOLVE CREATING A SERVICE ‐ AREA IN THE MIDDLE OF THE SECOND FLOOR, INSTEAD ‐ OF HAVING SEPARATE REFERENCE AND COMPUTER SERVICE ‐ DESKS. WE WILL GET RID OF THE CURRENT INFORMATION ‐ DESK , HAVE BOTH CIRCULATION AND INFO FUNCTIONS ‐ AT ONE CUSTOMER SERVICE POINT ON THE FIRST FLOOR, ‐ AND ADD SELF‐SERVICE CHECK MACHINES AND DIFFERENT ‐ SEATING IN THE MIDDLE OF THE FIRST FLOOR. (THE ‐ CHILDREN S AND TEEN SERVICE DESK STAYS THE SAME.) ‐ ALTERNATIVES CONSIDERED: ‐ CONTINUE WITH THE CURRENT CONFIGURATION OF TWO ‐ STAFFED SERVICE DESKS ON THE FIRST FLOOR AND THE ‐ SAME ON THE SECOND FLOOR. (THE CHILDREN S AND ‐ TEEN SERVICE DESK STAYS THE SAME.) ‐ ADVANTAGES OF APPROVAL: ‐ THIS CHANGE WILL ALLOW US TO USE OUR EXISTING ‐ STAFF AS EFFICIENTLY AS POSSIBLE. WE WILL HAVE ‐ TWO STAFF ON THE DESKS DURING BUSY PERIODS BUT CAN ‐ HAVE ONE PERSON BE ON CALL DURING SLOWER PERIODS; ‐ THE STAFF PERSON CAN DO OTHER WORK THEN. WE ALSO ‐ THINK THIS WILL MAKE IT LESS CONFUSING AND ‐ SIMPLER FOR OUR PATRONS. THEY DON T THINK IN ‐ TERMS OF THE DIFFERENCE BETWEEN REFERENCE AND ‐ INFORMATION DESKS, THEY JUST WANT TO KNOW WHERE ‐ TO GO TO GET HELP FROM LIBRARY STAFF ON A VARIETY ‐ OF QUESTIONS. THE GOAL THIS YEAR IS TO CROSS‐ ‐ TRAIN MORE STAFF TO WORK MULTIPLE DESKS. THIS ‐ WILL HELP WHEN PEOPLE ARE ILL OR ON VACATION. ‐ ADD OPERATING COSTS: ‐ Reconfigure 2 Customer 202050,000 LIB27 17