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Home My WebLink About12-10-18 City Commission Packet Materials - C7. Adopt the Public Works Admin Internal Service Fund CIP for FY 2020-2024 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adopt the Public Works Administration Internal Service Fund Capital Improvement Plan (CIP) for Fiscal Years 2020-2024. AGENDA ITEM TYPE: Consent MEETING DATE: December 10, 2018 RECOMMENDATION: Adopt the Public Works Administration Internal Service 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. 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. The Public Works, City Manager, and other city staff met in October and November to develop the attached Capital Plan for the equipment and capital needs of Public Works from an administrative level. This includes Administration, Engineering and GIS, which are then charged to the public works fund based on needed activity from these functions. Relationship to the Strategic Plan: • Software investment in this fund works towards 4.1 c GIS Land Use & Infrastructure Development Tracking. Specifically, Asset Management software, aerial photography and performance management and civic engagement system investment. 69 • 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. • 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 $25,000 threshold. This will align us with best practices and allow us to make better capital decisions by focusing on true capital items and less maintenance and operational expenses. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY20. Report compiled on: November 27, 2018 Attached: Public Works Admin CIP Section 70 PUBLIC WORKS ADMINISTRATION INTERNAL SERVICE FUND FINANCIAL SUMMARY Financial Summary Current YearFY19 FY20 FY21 FY22 FY23 FY24UnscheduledProjected Beginning Reserve Balance Dedicated to CIP ‐$ 71,444$ 19,316$ 2,976$ 2,976$ 80,309$ ‐$ Plus: 71,444$ 72,873$ 148,660$ ‐$ 77,333$ ‐$ ‐$ Less: Scheduled CIP Project Costs ‐$ (125,000)$ (165,000)$ ‐$ ‐$ (65,000)$ ‐$ Projected Year‐End Cash Dedicated to CIP 71,444$ 19,316$ 2,976$ 2,976$ 80,309$ 15,309$ Assumptions Made for Revenue Estimates Current YearFY19 FY20 FY21 FY22 FY23 FY24Estimated Annual Public Works allocation 2,381,457$ 2,381,457$ 2,429,086$ 2,477,668$ 2,527,221$ 2,577,766$ Estimated Annual Increase 0.0% 2% 2% 2% 2% 2%Total Estimated Revenues 2,381,457$ 2,429,086$ 2,477,668$ 2,527,221$ 2,577,766$ 2,629,321$ Current Revenues Dedicated to CIP % 3.0% 3.0% 6.0% 3.0% 3.0% 3.0% Plus: Increase Dedicated to Water Capacity Expansion CIP 0.0%0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 3.0% 3.0% 6.0% 3.0% 3.0% 3.0%Total Estimated Revenues Dedicated to CIP 71,444$ 72,873$ 148,660$ 75,817$ 77,333$ 78,880$ Note: The Public Works Administration Fund is an internal service fundthat operates entirely from cost recovery paid by City Departments, specifically Public Works Departments. Capital items are funded as needed, withoutthe accumulation of any reserve.ProjectedProjectedCURRENT$(125,000)$(165,000)$‐$‐$(65,000)FY19 FY20 FY21 FY22 FY23 FY24PUBLIC WORKS INTERNAL SERVICE PROJECTS 71 PUBLIC WORKS ADMINISTRATION INTERNAL SERVICE FUND PROJECT SUMMARY Project # Project Name FY2020 FY2021 FY2022 FY2023 FY2024GIS03 ASSET MANAGEMENT SOFTWARE 75,000 ‐ ‐ ‐ ‐ GIS04AERIAL PHOTOGRAPHY ‐ 65,000 ‐ ‐ 65,000 GIS16 PERFORMANCE MANAGEMENT AND CIVIC ENGAGEMENT SYSTEM INVESTMENTS‐ 100,000 ‐ ‐ ‐ Fiscal Year totals 75,000 165,000 ‐ ‐ 65,000 72 PUBLIC WORKS ADMINISTRATION INTERNAL SERVICE FUND DETAIL BACKGROUND Public Works Administration internal service fund was created in FY19 to allocate the Public Works Administration, GIS, and Engineering to the enterprise funds based on the use of these functions. The charges to the other funds provides the funding for the three divisions. CAPITAL PLAN SUMMARY The plan contains requests for GIS. This includes Asset Management software, aerial photography and performance management and civic engagement system investment, which all work towards the Strategic Plan 4.1 c GIS Land Use & Infrastructure Development Tracking. 73 Project Name YearDescription AmountTotal Project #DESCRIPTION OF PROJECT: 50,000 MANAGING THE LIFE‐CYCLE COST OF INFRASTRUCTURE ‐ INVESTMENTS IS RECOGNIZED IN THE STRATEGIC PLAN ‐ UNDER THE VISION OF A WELL‐PLANNED CITY (4.3). ‐ THIS PROJECT WILL INCLUDE THE PURCHASE AND ‐ IMPLEMENTATION OF SPECIALIZED ASSET MANAGEMENT ‐ SOFTWARE TO LEVERAGE EXISTING DATA TO ASSIST IN ‐ DELIVERING THE DESIRED LEVEL OF SERVICE FOR THE ‐ LOWEST LIFE‐CYCLE COST. DETAILED CONDITION ‐ INFORMATION ALONG WITH PREDICTIVE BUDGET ‐ ANALYSIS WILL PROVIDE FOR A RISK BASED APPROACH ‐ TO PRIORITIZING INFRASTRUCTURE NEEDS. ‐ ALTERNATIVES CONSIDERED: ‐ CONTINUE MANAGING DATA AND EXISTING WORKFLOW ‐ USING A MANUAL PROCESS WITH LIMITED POTENTIAL ‐ FOR EFFECTIVE LONG‐RANGE ANALYSIS. ‐ ADVANTAGES OF APPROVAL: ‐ THIS PROJECT WILL RESULT IN THE LOWEST POSSIBLE ‐ LIFE‐CYCLE COST FOR MAJOR INFRASTRUCTURE ‐ IMPROVEMENTS BY INCLUDING THE LIKELIHOOD AND ‐ CONSEQUENCE OF FAILURE TO ENSURE A SUSTAINTABLE ‐ APPROACH TO REHABILITATION, REPAIR, AND ‐ REPLACEMENT. ‐ ADDITIONAL OPERATING COSTS: ‐ REQUIRED ANNUAL MAINTENANCE WILL BE DEPENDENT ‐ UPON THE CHOSEN SOFTWARE APPLICATION. ‐ NOTE: ‐ ADDITIONAL FUNDING BEYOND THE PREVIOUS 25,000 RECOMMENDATION IS NECESSARY TO FULLY ‐ IMPLEMENT A SOLUTION FOR BOTH DETAILED RISK ‐ ASSESSMENT AND PREDICTIVE BUDGET ANALYSIS. ‐ ASSET MANAGEMENT SOFTWARE202075,000 GIS03 74 Project Name YearDescription AmountTotal Project #PROJECT DESCRIPTION: 65,000 AERIAL PHOTOGRAPHY IS USED ON A DAILY BASIS TO ‐ SUPPORT A WIDE VARIETY OF CITY OPERATIONS, ‐ INCLUDING PUBLIC ACCESS TO HISTORICAL ARCHIVES. ‐ CURRENT AERIAL PHOTOGRAPHY ENABLES TIMELY ‐ DECISIONS BASED ON ACCURATE INFORMATION AND ‐ CONTINUES TO EXPERIENCE UNPRECEDENTED DEMAND. ‐ ALTERNATIVES CONSIDERED: ‐ LOWER RESOLUTION SATELLITE IMAGERY ALONG WITH ‐ EXTERNAL PARTNERSHIPS MAY RESULT IN A LESS ‐ DESIRABLE OUTCOME. ‐ ADVANTAGES OF APPROVAL: ‐ THIS PROJECT BENEFITS BOTH THE ORGANIZATION AND ‐ THE COMMUNITY BY PROVIDING A CLEAR AND ACCURATE ‐ REPRESENTATION OF CURRENT CONDITIONS IN ADDITION ‐ TO SERVING AS AN IMPORTANT HISTORICAL RECORD ‐ DURING TIMES OF HIGH GROWTH. MEASURESMENTS AND ‐ LAND USE DETERMINATIONS CAN BE MADE WITHOUT ‐ REQUIRING EXTENSIVE TIME IN THE FIELD. ‐ ADDITIONAL OPERATING COSTS: ‐ THERE ARE NO RECURRING COSTS OR ANNUAL OPERATING ‐ EXPENSES ASSOCIATED WITH THIS PROJECT. ‐ AERIAL PHOTOGRAPHY 202165,000 GIS04 (FY21)75 Project Name YearDescription AmountTotal Project #PROJECT DESCRIPTION: 65,000 AERIAL PHOTOGRAPHY IS USED ON A DAILY BASIS TO ‐ SUPPORT A WIDE VARIETY OF CITY OPERATIONS, ‐ INCLUDING PUBLIC ACCESS TO HISTORICAL ARCHIVES. ‐ CURRENT AERIAL PHOTOGRAPHY ENABLES TIMELY ‐ DECISIONS BASED ON ACCURATE INFORMATION AND ‐ CONTINUES TO EXPERIENCE UNPRECEDENTED DEMAND. ‐ ALTERNATIVES CONSIDERED: ‐ LOWER RESOLUTION SATELLITE IMAGERY ALONG WITH ‐ EXTERNAL PARTNERSHIPS MAY RESULT IN A LESS ‐ DESIRABLE OUTCOME. ‐ ADVANTAGES OF APPROVAL: ‐ THIS PROJECT BENEFITS BOTH THE ORGANIZATION AND ‐ THE COMMUNITY BY PROVIDING A CLEAR AND ACCURATE ‐ REPRESENTATION OF CURRENT CONDITIONS IN ADDITION ‐ TO SERVING AS AN IMPORTANT HISTORICAL RECORD ‐ DURING TIMES OF HIGH GROWTH. MEASUREMENTS AND ‐ LAND USE DETERMINTATIONS CAN BE MADE WITHOUT ‐ REQUIRING EXTENSIVE TIME IN THE FIELD. ‐ ADDITIONAL OPERATING COSTS: ‐ THERE ARE NO RECURRING COSTS OR ANNUAL OPERATING ‐ EXPENSES ASSOCIATED WITH THIS PROJECT. ‐ AERIAL PHOTOGRAPHY 202465,000 GIS04 (FY24)76 Project Name YearDescription AmountTotal Project #PROJECT DESCRIPTION: 100,000 PERFORMANCE MANAGEMENT AND CIVIC ENGAGEMENT ARE ‐ LISTED AS HIGH PRIORITIES WITHIN THE STRATEGIC ‐ PLAN (7.4 & 1.1, RESPECTIVELY). THIS PROJECT ‐ WILL LEVERAGE EXISTING INVESTMENTS IN CITYWORKS, ‐ GIS AND OTHER ENTEPRISE SYSTEMS TO IMPROVE THE ‐ WAY WE MEASURE AND REPORT PROGRESS. A MODERN ‐ SOFTWARE PLATFORM ALONG WITH IMPLEMENTATION ‐ SERVICES ARE NECESSARY TO PROVIDE A CITYWIDE ‐ APPROACH. ‐ ALTERNATIVES CONSIDERED: ‐ CUSTOM SOLUTIONS DEVELOPED USING BASIC ‐ TECHNOLOGY WILL LIMIT THE CITY'S ABILITY TO ‐ MEET STAFF AND CITIZEN EXPECTATIONS. ‐ ADVANTAGES OF APPROVAL: ‐ THE USE OF KEY PERFORMANCE INDICATORS WILL HELP ‐ IDENTIFY OPPORTUNITIES FOR INCREASED EFFICENCY ‐ THROUGHOUT THE ORGANZIATION WHILE PROVIDING A ‐ PERFORMANCE MANAGEMENT AND CIVIC ENGAGEMENT SYSTEM INVESTMENTS2021100,000 GIS16 77