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HomeMy WebLinkAbout12-10-18 City Commission Packet Materials - C4. Adopt the Building Inspection CIP for FY 2020-2024 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adopt the Building Inspection Capital Improvement Plan (CIP) for Fiscal Years 2020-2024. AGENDA ITEM TYPE: Consent MEETING DATE: December 10, 2018 RECOMMENDATION: Adopt the Building Inspection 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 Building Inspection, City Manager, and other city staff met in October & November to develop the attached Capital Plan for the equipment and capital needs of the Building Inspection Division. 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 resulted in a different report “look-and-feel,” and we are working to evolve and refine how the CIP reports appear. 43 • 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 $25,000 threshold. This will align us with best practices and allow us to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: November 27, 2018 Attached: Building Inspection CIP Section 44   BUILDING INSPECTION FUND FINANCIAL SUMMARY  Financial Summary Current YearFY19 FY20 FY21 FY22 FY23 FY24 UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 224,600$            18,621$              29,751$           41,216$       53,024$        65,186$         Plus:  Building Inspection Revenues Dedicated to CIP 10,702$              11,130$              11,464$           11,808$       12,162$        12,527$        ‐$               Less:  Scheduled CIP Project Costs (216,681)$           ‐$                    ‐$                 ‐$             ‐$              ‐$             (325,000)$        Projected Year‐End Cash Dedicated to CIP 18,621$              29,751$              41,216$           53,024$       65,186$        77,713$       Assumptions Made for Revenue Estimates: Current YearFY19 FY20 FY21 FY22 FY23 FY24Estimated Annual Building Inspection Revenues 1,783,700$             1,783,700$              1,855,048$         1,910,699$     1,968,020$      2,027,061$       Estimated Growth in Revenues 0% 4% 3% 3% 3% 3%Total Estimated Revenues 1,783,700$             1,855,048$              1,910,699$         1,968,020$     2,027,061$      2,087,873$     Current Revenues Dedicated to CIP % 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%  Plus:  Increase Dedicated to Capital Improvements % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%Total Estimated Revenues Dedicated to CIP 10,702$                  11,130$                   11,464$               11,808$          12,162$            12,527$          ProjectedProjectedCURRENT$‐$‐$‐$‐$‐$(325,000)FY19 FY20 FY21 FY22 FY23 FY24 UNSCHEDULEDBUILDING INSPECTION PROJECTS & EQUIPMENT45   BUILDING INSPECTION FUND PROJECT SUMMARY  All projects are unscheduled     46   BUILDING INSPECTION FEE FUND DETAIL BACKGROUND The Building Inspection Fund is a special revenue fund and is supported entirely by the revenue from building fees and permits.  Revenues and expenditures are statutorily restricted to amounts that support the division. This fund is dependent on construction in the City and therefore is monitored based on economic conditions.  CAPITAL PLAN SUMMARY The replacement of Building Inspection vehicles are unscheduled. 47 Unscheduled Project NameUnscheduled Project Description  Amount Project #STAFF VEHICLE ‐ REPLACEMENTSThis item is for the scheduled replacement of Building Inspection vehicles based on age and use of the vehicle. Vehicles will be replaced according to the City's Vehicle Replacement policy; generally, 150,000 miles/20 years before replacement of non‐emergency vehicles. This program will address the long term vehicle needs of the Building Division by allowing careful replacement of vehicles as vehicle conditions and department needs warrant. Right now, all vehicles are in use by Department staff, averaging approximately 5,000 miles per year. Vehicle Mileage updated October 2015. There are no maintenance issues or significant problems to report. We do regular maintenance and service all of our vehicles and always fix small stuff before it becomes a big problem.                             325,000 BI01Total Building Inspection Unscheduled325,000                            UNSCHEDULED48