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Home My WebLink AboutAdoption of the Storm Water Fund Capital Improveme_10.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Storm Water Fund Capital Improvement Plan (CIP) for FY14-18. AGENDA ITEM TYPE: Action MEETING DATE: November 26, 2012 RECOMMENDATION: Adoption of the Storm Water Fund Capital Improvement Plan (CIP) for FY14-18. 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. This represents the first time the Storm Water Fund CIP has been a part of our annual CIP process. The Public Works and other city staff met on November 1st to develop the attached Capital Plan for the equipment and capital needs of the Storm Water Fund. We worked from the capital plan that was developed this spring when the utility was created. As is noted on the schedule, many capital items are listed as "unscheduled" until our Utility method for charging customers is refined to be more equitable, anticipated in approx FY15. UNRESOLVED ISSUES: None. 292 ALTERNATIVES: As suggested by the City Commission. If the Commission is 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 FY14. Report compiled on: November 19, 2012 Attached: Storm Water Fund CIP 293 Storm Water Utility Capital Improvement PlanFinancial Summary Current YearFY13 FY14 FY15 FY16 FY17 FY18UnscheduledProjected Beginning Reserve Balance Dedicated to CIP‐$ (49,000)$ 32,810$ 118,711$ 208,906$ 38,492$ Plus: Storm Water Utility Fees Dedicated to Capital 81,000$ 81,810$ 85,901$ 90,196$ 108,886$ 115,419$ Less: Scheduled CIP Project Costs (130,000)$ ‐$ ‐$ ‐$ (279,300)$ ‐$ (300,000)$ Projected Year‐End Cash Dedicated to CIP (49,000)$ 32,810$ 118,711$ 208,906$ 38,492$ 153,911$ (300,000)$ Assumptions Made for Revenue Estimates: Current YearFY13 FY14 FY15 FY16 FY17 FY18Estimated Annual Storm Water Utility Revenue 225,000$ 225,000$ 227,250$ 238,613$ 250,543$ 265,576$ Estimated Annual Increase ‐ Attributed to Growth 1% 1% 1% 2% 2% Estimated Annual Increase ‐ Rate Increase 4% 4% 4% 4% 4%Total Estimated Revenues 225,000$ 227,250$ 238,613$ 250,543$ 265,576$ 281,510$ Current Revenues Dedicated to CIP % 36.0% 36.0% 36.0% 36.0% 36.0% 41.0% Plus: Increase Dedicated to Capital 0.0% 0.0% 0.0% 0.0% 5.0% 0.0% Total % Dedicated to CIP 36.0% 36.0% 36.0% 36.0% 41.0% 41.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP 81,000$ 81,810$ 85,901$ 90,196$ 108,886$ 115,419$ Note: Many Capital Items are listed as "unscheduled" until our Utility method for charging customers is refined to be more equitable for Storm Water customers, anticipated in approx FY15.350,000300,000250,000200,000150,000100,00050,0000FY14 FY15 FY16 FY17 FY18 UnscheduledStorm Water Projects 294 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY14FY16UnscheduledFY15FY17FY18Storm Water FundSTRM01Storm WaterVALLEY UNIT PARK$80,000STRM02Storm WaterROCKY CREEK STORM WATER IMPROVEMENTS$20,000STRM04Storm WaterGENERAL TREATMENT SYSTEMS, REHABILITATION, AND REPLACEMENT$200,000STRM08Storm WaterROUSE AVENUE STORM DRAIN UPSIZING$186,300STRM09Storm WaterROUSE AVENUE STORM WATER TREATMENT$93,000Summary for Storm Water Fund (5 items)Totals by year:$300,000FY14FY15FY16UnscheduledFY18$279,300FY17295 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM01 DEPARTMENT Storm Water PROJECT NAME Valley Unit Park FY14 FY15 FY16 Unscheduled $80,000 DESCRIPTION OF PROJECT Improvements to the detention pond at Valley Unit Park, as described on page 6-5 in the Storm Water Facility Plan. This item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Will reduce flooding along Meagher Avenue and Durston Road ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, possible Grants. New Replacement Equipment Project FY17 FY18 296 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM02 DEPARTMENT Storm Water PROJECT NAME Rocky Creek Storm Water Improvements FY14 FY15 FY16 Unscheduled $20,000 DESCRIPTION OF PROJECT Improvements to increase and restore the native vegitation cover and diversity, thereby reducing sedimentation and improving water quality in Rocky Creek, as described on page 6-7 of the Storm Water Facility Plan. This item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Reduced sedimentation and improved water quality. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Fund, possible grants. New Replacement Equipment Project FY17 FY18 297 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM04 DEPARTMENT Storm Water PROJECT NAME General Treatment Systems, Rehabilitation, and Replacement FY14 FY15 FY16 Unscheduled $200,000 DESCRIPTION OF PROJECT General repairs and infrastructure maintenance were recommended in the Facility Plan at $200,000 per year. After mapping and condition assessments are complete, the utility will begin a systematic program of infrastructure repair and replacement, including installation of Storm Water Treatment systems. In the future, specific projects and project areas will be defined. Until then, this item acts as a financial indicator of that work program. When specific projects are scheduled in the CIP, those amounts will reduce the $200,000 scheduled in this item each year. One year's allocation of this item is listed as unscheduled until our Utility method for charging customers is refined to be more equitable for Storm Water customers. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Fund, grants when available. New Replacement Equipment Project FY17 FY18 298 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM08 DEPARTMENT Storm Water PROJECT NAME Rouse Avenue Storm Drain Upsizing FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This project is in coordination with the MDOT improvements to Rouse Avenue. It entails the upsizing of Stormwater Infrastructure on Rouse. We will need to be prepared to fund this project in according the construciton timelines established by MDOT, which are fairly fluid at this point. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, TSEP Grant, other grants. New Replacement Equipment Project FY17 $186,300 FY18 299 CIP Project Fund Storm Water Fund PROJECT NUMBER STRM09 DEPARTMENT Storm Water PROJECT NAME Rouse Avenue Storm Water Treatment FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This project is in coordiantion with the MDOT improvements to Rouse Avenue. It will provide Storm Water treatment facilities for run-off on Rouse Avenue. We will need to be prepared to fund this project in according the construciton timelines established by MDOT, which are fairly fluid at this point. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Storm Water Utility, TSEP Grant, other grants. New Replacement Equipment Project FY17 $93,000 FY18 300