Public Hearing Notice

2019-2020 to 2023-2024 CIP Review Committee Meeting Agenda April 24, 2019 3:00 p.m. City Hall - Conference Room 128 (Development) 903 W. Main Street AGENDA: 1. Opening Remarks 2. 2019-2020 to 2023-2024 CIP Budget Overview 3. 2019-2020 to 2023-2024 New Project Overview a. Parks and Recreation b. Public Safety c. Public Works 4. Questions/Comments from the Committee 5. Adjourn DATE: April 19, 2019 TO: CIP Project Departments; Councilmember Jerry Kaylor; Councilmember Chris Lievsay; Councilmember Susan Culpepper Planning Commissioner Lynn Banks; Planning Commissioner Mitchell Peil; Parks Commissioner Keith Hannaman FROM: Mike Mallon, Assistant Director of Community Development SUBJECT: 2019-20 to 2023-24 Capital Improvements Program (CIP) Review Committee April 24, 2019 City Hall – Conference Room CH - 128 (Development) Thank you for serving on the CIP Review Committee. The role of this Committee is an important one and marks the first public-facing step in the annual CIP process. Consistent with past practice, this Committee is charged with reviewing the proposed CIP Program. The proposed plan reflects the City’s improved position to address deferred parks maintenance needs while continuing to experience restricted capacity in other areas due to constrained funding and growing deferred maintenance needs. The projects follow the City Council’s priorities, and as you will see, most of the CIP projects are maintenance related. At this meeting staff will provide, an overview of the 2019-2020 CIP Budget, as well as an overview of newly proposed projects, and will be available to answer questions regarding any portion of the CIP. The following attachments are for your consideration and review: 1. CIP Review Committee Agenda 2. Draft 2019-2020 to 2023-2024 Capital Improvements Program 3. New CIP Project Sheets Thank you for your assistance with this year’s CIP. Please do not hesitate to contact me at 228- 0124 (x0124 internally) or at mmallon@bluespringsgov.com if you have any questions. Sincerely, Mike Mallon, AICP Assistant Director of Community Development 816-228-0124  City of Blue Springs Draft 2019-2020 to 2023-2024 Capital Improvements Program  TABLE OF CONTENTS INTRODUCTION 1 OVERVIEW OF 2019-2020 TO 2023-24 CIP 1 INVESTMENT CATEGORIES 2 PROGRAM CHANGES 3 SUMMARY OF FIVE-YEAR FUNDED AND UNFUNDED CAPITAL NEEDS 4 CAPITAL IMPROVEMENT PROJECT DEFINED 5 EVALUATION CRITERIA 5 PLAN REVIEW AND ADOPTION 6 INVESTMENT PRIORITY AREAS 8 DEBT MANAGEMENT 9 FUNDING SOURCES AND STRATEGIES 11 ALTERNATIVE FUNDING SOURCES 11 OPERATING BUDGET IMPACT 12 SUMMARY 13 ADOPTION OF ORDINANCE #### 18 APPENDICES APPENDIX A: FUNDED PROJECT SHEETS A1 LIST OF TABLES AND FIGURES TABLE 1: FUNDED PROJECTS BY CATEGORY-ALL YEARS 1 TABLE 2: CAPITAL IMPROVEMENT PROGRAMMING BY FUND-ALL YEARS 4 TABLE 3: CAPITAL INVESTMENT NEEDS BY CATEGORY-ALL YEARS 5 TABLE 4: PROJECTS BY STRATEGIC FRAMEWORK GOAL AREA ALL 7 YEARS FIGURE 1: CIP PROJECT EVALUATION CRITERIA 6 FIGURE 2: SUMMARY OF FUNDED CAPITAL IMPROVEMENT PROJECTS- 14 ALL YEARS FIGURE 3: SUMMARY OF UNFUNDED CAPITAL NEEDS BY DEPATMENT- 15 ALL YEARS  Introduction Capital improvement programming is a cornerstone of sound financial planning and local government fiscal policy. It also is an effective planning tool to assist communities identify and prioritize immediate and long-term needs in the context of existing capacity and resources and facilitates the formulation of long-term strategies to address trends and changes in service level demands. The Capital Improvement Program (CIP) provides a linkage between planning, budgeting, and implementation that maximizes efficiency and effectiveness. It enables the City to identify opportunities and constraints and leverage those opportunities to develop strategies that address priorities and demonstrates good stewardship of scarce public resources. The CIP covers a five-year planning period, but is re-evaluated and published each year to reflect changing needs, new opportunities and City Council priorities and goals. The CIP does not appropriate funds; rather it functions as a planning and budgeting tool, with support of the actual appropriations made through the adoption of the annual City budget in September. The CIP program continues to focus on maintenance-related items and replacement of mission- critical equipment with limited investment in new infrastructure, equipment, or programming. Overview of Fiscal Years 2019-2020 to 2023-24 The Fiscal Years 2019-2020 to 2023-2024 describes the City’s “Priority and Strategic Areas” for long-term maintenance, equipment replacement, and capital investment based upon available resources and the priorities, goals, and objectives of the City Council. Although individual projects are listed and funded by Department (e.g. Community Development, Information Technology, Parks, Streets, Stormwater), this document outlines how they are linked with priorities established within adopted plans and future capital resource and expenditure forecasting. Table 1 outlines funded projects over the five-year period by category. The Fiscal Year 2019-2020 CIP includes a significant increase in the maintenance category, almost double that of FY 2018-2019 CIP. This increase in the maintenance was anticipated in last year’s CIP Budget in order to address sewer and water infrastructure maintenance projects throughout the City. Table 1: Funded Projects by Category-All Years Project FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Area Total Maintenance $40,499,054 $14,358,693 $ 9,431,260 $ 6,568,900 $ 4,991,670 $5,148,531 Equipment $ 729,000 $ 513,701 $ 486,570 $ 295,000 $ 225,250 $ 2,249,521 Replacement Capital $ 1,702,500 $ 547,992 $ 475,000 $ 475,000 $ 475,000 $ 3,675,492 Improvements TOTAL $16,790,193 $10,492,953 $ 7,530,470 $ 5,761,670 $5,848,781 $46,424,067 1 As reflected in Table 3 on page 5, the City’s capital investment needs exceed the current level of available funding. Over the five-year plan period, 31 percent of the City’s infrastructure and equipment needs are addressed. Current resources are not sufficient to address the entirety of the City’s capital investment needs. This will result in a gap and will increase over time as City assets continue to age and deteriorate. This will result in increased maintenance and replacement costs in the future as the City’s infrastructure continues to age and deteriorate. Additionally, continued expansion in the City’s growth areas will place increased demands on the CIP to construct and maintain additional City assets. It will be critical to identify long-term solutions to address this gap in the future which is in- keeping with the Revenue Stability Goal of the Strategic Framework detailed on page 7 of this document. Investment Categories CIP projects are classified in one of three investment categories: Maintenance, Equipment Replacement, and Capital Improvements. These categories are further defined below as well as a listing of projects in each category for the 2019-2020 Fiscal Year. Table 3 (page 5) outlines Funded and Unfunded Capital Needs for all years by these categories. Maintenance The core of the five-year CIP Program relates to preventive measures or investments in order to keep the City’s existing infrastructure and assets functional and in good repair. Over the five- year plan period, 47 percent of all projects, funded and unfunded, are maintenance-related. For the 2019-2020 Fiscal year, $14,358,693 or 86 percent of the total CIP, is in the Maintenance category. This includes the following projects: • CD-03 Downtown Revitalization • PR-02-18 Wilbur Young Park Renovation • PR-04018 Adams Pointe Golf Club Improvements • PR-10-18 Adams Dairy Parkway Trail Replacement • PR-11-18 Rotary Park Trail Replacement • PR-40-18 Aquatics Facility – Aquatics Needs Study • ST-06 Pavement Management Program • ST-43 7 Highway Sidewalk Infill • ST-44 Concrete Repair and Maintenance • STM-06 Stormwater Maintenance • SAN-07 Citywide Maintenance • SNI-01 Sludge Removal • SNI-04-19 Reed Bed Sludge Drying Facility • WA-12 Miscellaneous Watermain Maintenance • WA-14 Water Tank Maintenance Contract • WA-19-20 South Outer Road Water Main Replacement Equipment Replacement While the City has a comprehensive maintenance program for all City equipment, it eventually reaches the end of its useful life. For the 2019-2020 Fiscal Year, $729,200, or approximately 4 percent of the total CIP is in the Equipment Replacement category. This includes the following projects: • IT-03 Upgrade MS Govern GEMS to Innoprise • PS-10-20 Police Department Security System Upgrade • PW-01 Public Works Asset Management Software • ST-26 1.5 Ton Dump/Snow Truck • SAN-20-19 Hydraulic Track Loader 2 Capital Improvements A Capital Improvement Project relates to any investment in new infrastructure (e.g. new water or sewer line, etc.), significant reconstruction (e.g. reconstruction of existing roadway, etc.), or adds capacity to existing infrastructure (e.g. widening of an existing street, etc.). While the City’s emphasis is on the maintenance of existing infrastructure, there are limited and strategic investments in new infrastructure over the plan period. For the 2019-2020 Fiscal Year, $1,702,500 or approximately 10 percent, of the total CIP is related to Capital Improvements, which is more in-line with the City’s historic investment in this area. The Capital Improvements category includes the following projects: • SAN-23-20 Sewer Flushing Truck • PR-70-19 Roscoe Righter Park – Conceptual Design • PR-71-19 Southwest Park – Conceptual Design • ST-53 7 Hwy and South Ave. Traffic Signal • SAN-19 Sewer Infrastructure Deployment • WA-17 Water Infrastructure Deployment Program Changes There are several changes in the 2019-2020 to 2023-2024 CIP program from the previous year’s program. These changes include: The addition of amounts in the new FY 2023-2024 of 13 previously funded projects and 7 new projects added to the unfunded list. o Funded  CD-01 Comprehensive Plan Update  CD-03 Downtown Revitalization  ST-06 Pavement Management Program  ST-24 Snow Plow/Dump Truck  ST-27 Street Difference  ST-44 Concrete Repair and Maintenance  STM-06 Stormwater Maintenance  SAN-07 Citywide Maintenance  SAN-19 Sewer Infrastructure Deployment  SAN-20-19 Hydraulic Track Loader  WA-12 Miscellaneous Watermain Maintenance  WA-14 Water Tank Maintenance Contract  WA-17 Water Infrastructure Deployment o Unfunded  BF-37-20 Adams Pointe Conference Center - Exterior Repairs  BF-38-20 Adams Pointe Conference Center - HVAC System Replacement  BF-39-20 Adams Pointe Conference Center - Roof Replacement  PS-10-20 Police Department Security System Upgrade  ST-58-20 ADP Street Lighting 2(Moreland School Road to Wyatt Road)  SAN-23-20 Sewer Flushing Truck  WA-19-20 South Outer Road Water Main Replacement 3 Table 2: CIP Programing by Fund FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 TOTAL General Fund $ 366,667 $ 247,992 $ 100,000 $ 100,000 $ 225,000 $ 1,039,659 Public Safety $ 145,000 $ - $ - $ - $ - $ 145,000 Sales Tax Fund Transportation $ 3,440,000 $ 3,131,981 $3,308,570 $ 3,244,000 $3,262,000 $16,386,551 Sales Tax Fund Parks Sales Tax $ 3,979,000 $ 4,501,200 $ 1,607,500 $ - $ - $10,087,700 Fund Fieldhouse Fund $ - $ - $ 190,000 $ - $ - $ 190,000 Water Fund $ 2,363,859 $ 1,230,380 $1,010,400 $ 1,093,670 $1,045,531 $ 6,743,840 Sewer Fund $ 5,443,667 $ 1,321,400 $1,254,000 $ 1,264,000 $1,256,250 $10,539,317 Other $ 1,052,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 1,292,000 TOTAL $16,790,193 $10,492,953 $7,530,470 $5,761,670 $5,848,781 $46,424,067 Summary of Five-Year Funded and Unfunded Capital Needs The priority and strategic investment areas for projects within the CIP are consistent with City Council priorities that include maintenance and reinvestment in critical infrastructure and assets, replacement of equipment that has reached the end of its useful life, and deployment of infrastructure to facilitate development and provides comprehensive service solutions:  Parks and Recreation maintenance projects: 19 Parks and Recreation maintenance projects are funded over the plan period with an additional 34 maintenance projects on the Unfunded list. FY 2022-2023 and FY 2023-2024 do not show funding under the Parks Sales Tax Fund as the tax sunsets in 2022.  ST-06: $13.7.M, or 29.5% of the five-year CIP is currently proposed for the annual Pavement Management Program • ST-44: The Concrete Repair and Maintenance Program (formerly Sidewalk Repair and Maintenance Program) reflects an approach adopted in late 2015 to address the sidewalk repair and replacement program that funds an in-house flatwork crew. $2,027,450 or 4.3%, is proposed over the plan period. • CD-03: Leverages CDBG funds to make strategic investments in the Downtown District to facilitate continued redevelopment of this critical area of the City. $300,00 is proposed over the plan period. • SAN-19 a n d WA-17: Provides ongoing funding to deploy sewer and water infrastructure solutions to facilitate the continued development of the City with comprehensive, long-term solutions. Development of the CIP continues to be informed by trends and priorities identified in the DirectionFinder citizen survey and the City Council Strategic Plan Framework. Consistent with past practice, the CIP reflects a balance between an ongoing emphasis on annual street rehabilitation without eliminating other important priorities and needs. However, the capacity to continue this balance on a sustained basis decreases with each year and any flexibility is virtually exhausted. The CIP reflects the City’s philosophy of sound fiscal policies and long-range financial planning. Projects are prioritized to address on-going maintenance, correct an existing deficiency, or replace key equipment necessary to meet the ongoing service level targets. Table 2 outlines CIP programming by fund. While the City is maximizing investments in CIP-related projects, there are unfortunately many 4  important projects that cannot be completed as a result of resource constraints, Unfunded Capital Needs total $102.4m and are broken out by category in Table 3 (page 5) and listed by Department in Figure 3 on pages 15. As Table 3 reflects, funded and unfunded Capital Needs brings the five-year CIP to approximately $148.7 million dollars. The Funded portion of the CIP represent approximately 31% of the total estimated project costs associated with the CIP budget; this means that nearly 69% of the City’s capital investment needs are not being met over the five-year period. Table 3: Capital Investment Needs by Category-All Years Funded Unfunded Capital Needs Project Type Total Maintenance $40,499,054 $29,990,500 $70,489,554 Equipment Replacement $2,249,521 $845,000 $3,094,521 Capital Improvements $3,675,492 $71,517,500 $75,192,992 TOTAL $46,424,067 $102,353,000 $148,777,067 Capital Improvement Project Defined In developing a CIP, it is important to distinguish between operating and capital expenses. Generally, these items are defined based on their cost and frequency of occurrence. Operating items are those that represent on-going operating expenses, such as maintenance, outside of one-time capital expenditures. Presented below are the definitions developed specifically for the City of Blue Springs for capital expenses that should be included in the CIP budget: • Any acquisition of land for public use. • Any construction of a new public facility (e.g., a public building, a public street, water and sewer lines, parks, play field, or the like) or an addition to, or extension of, such a facility. • A nonrecurring rehabilitation or replacement of existing public facilities, or major repair of all or a part of a public facility, provided that the cost is $50,000 or more. • Purchase of major equipment of $50,000 or more (either one item or a number of items with a cumulative one-time purchase of $50,000 or over) and a useful life of 5 years or more. • Planning, feasibility, engineering, or design studies and services immediately related to an individual capital improvement project. Evaluation Criteria A clear set of criteria has been established and is applied in the formulation of the CIP. These criteria reflect community values, priorities, and needs. It is important to note that the criteria, as listed in Figure 1 (page 6), are weighted as to level of importance—fiscally and developmentally. Each new or revised project was evaluated by staff in accordance with these criteria. When applying these criteria, projects related to maintenance, operational efficiency, and equipment replacement compare favorably to all projects submitted for consideration as part of the CIP. 5 Figure 1: CIP Project Evaluation Criteria Urgency of Need 1. Risk to Public Safety or Health 2. Protection of Property 3. Deteriorated Facility 4. Maintenance Cost Effectiveness 5. Backlog of Deferred Maintenance Relationship with Other 6. Coordination with Other Projects Established Priorities 7. Completes/Continues Existing Project 8. Priority of City Council/Community Group/Citizen Survey 9. Established Goals and Objectives of the Comprehensive Plan Fiscal Impact 10. Impact on Operating Budget 11. Impact on Operating Efficiency 12. Economic Development/Jobs Impact 13. Funding Sources Quality of Life Impact 14. Recreational and/or Community Amenity Opportunity 15. Protection and Conservation of Resources 16. Aesthetic/Design Impact on Community 17. Blight Removal Plan Review and Adoption Each year, a CIP Review Committee is convened to review all proposed Funded and Unfunded Capital Needs. The committee consists of two representatives of the Planning Commission, one Councilman from each Council District, and a member of the Parks Commission. The proposed CIP has been provided to the Planning Commission and conforms to the Comprehensive Plan. The preliminary draft of the CIP is then submitted to the City Council for a public hearing and is officially adopted by the City Council after all necessary adjustments have been made. The first year of the adopted CIP is incorporated into the annual budget adopted each year in mid-September by the City Council and made effective October 1. It should be noted that although the process accounts for the evaluation of projects against established criteria, available funds, and public comment, the City Council can, as they deem necessary and appropriate through the adoption process, change any recommended project or reallocate projects to achieve the goals of the City Council. The adopted CIP represents an annual plan of projects anticipated to be funded and completed in a given year. However, in the event priorities change between adoption of the CIP and the annual budget, the CIP can be amended by the Council to reflect these changes. There is a direct connection between the CIP and guiding community and organizational plans and documents (e.g. City Charter, 2014 Comprehensive Plan, Governing Body Strategic Framework and trends and priorities identified in the DirectionFinder citizen surveys, etc.). Each of the priority areas for the five-year CIP are described on pages 9-10. 6 Governing Body Strategic Plan Framework The City Council adopted the Governing Body Strategic Framework in 2015. This document outlines eight strategic priority areas over next five years: 1. Public Safety: Maintain high level of public safety for citizens as safe neighborhoods are the cornerstone of a quality community. 2. Infrastructure: Plan and invest in infrastructure to support neighborhoods and business activity. 3. Housing: Facilitate the development of housing for all ages. 4. Neighborhood Preservation: Preserve and strengthen neighborhoods and neighborhood centers. 5. Parks & Recreation: Increase access to open space and recreational amenities to promote a healthy community. 6. Revenue Stability: Create a sustainable revenue structure with adequate, stable and diverse revenue sources. 7. Development and Redevelopment: Grow & diversify Blue Springs' business sectors to achieve sustained economic prosperity and increase business tax base in key transportation corridors and downtown. 8. Internal Operations and City Workforce: Identify opportunities and develop strategies for enhancing the quality of service delivery to better meet citizen needs and expectations. The Framework was informed by resident and stakeholder feedback (e.g. 2014 DirectionFinder Survey, 2015 Economic Development Summit, etc.) and builds upon previous community visioning exercises. The CIP Program works to advance the stated goals of the Framework; each CIP project sheet indicates the relevant goal(s) targeted. Table 4 reflects CIP funding by Framework Goal Area. Table 4: Projects by Strategic Framework Goal Area-All Years Unfunded Strategic Frame Work Goal Funded Total Capital Needs Public Safety $0 $300,000 $300,000 Infrastructure $33,028,375 $78,827,500 $111,855,875 Housing $0 $0 $0 Neighborhood Preservation $0 $0 $0 Parks & Recreation $10,277,700 $23,225,500 $33,503,200 Revenue Stability $0 $0 $0 Development & Redevelopment $2,650,000 $0 $2,650,000 Internal Operations & City Workforce $467,992 $0 $467,992 TOTAL $46,424,067 $102,353,000 $148,777,067 Comprehensive Plan Adopted by the Planning Commission in February 2003, and updated in 2014, the Comprehensive Plan presents strategies and recommendations for future and existing development throughout the City and beyond. The plan was prepared in order to meet several local planning objectives, including delineating citywide, long-range planning goals and strategies. 7 The Comprehensive Plan specifies the growth and development goals and objectives for the City and the CIP is an important tool that assists in implementing those goals and objectives. Examples of projects proposed in the CIP for the 2019-2020 Fiscal Year that connect to the Comprehensive Plan include Downtown Revitalization (CD-03), Water and Sewer Infrastructure Deployment (SAN-19 and WA-17), and Concrete Repair and Maintenance (ST- 44). Area Plan In 2004, the City developed a future land use plan for the City’s growth areas. The Area Plan provides principles and policies to guide the City in its future growth. The CIP directly addresses many of these policies, especially those related to transportation enhancement, natural resources utilization, and provision of public services. In 2009 the Future Land Use Map portion of the Area Plan document was added to the Comprehensive Plan document. Projects in support of the Area Plan include Water and Sewer Infrastructure Deployment (SAN-19 and WA-17) and several Unfunded Capital Needs due to existing resource constraints. Investment Priority Areas Maintenance of Transportation Network The proposed 5-year CIP continues to place an emphasis on maintenance of the City’s existing transportation network. Approximately 10 years ago the City implemented a street rehabilitation program and funded the program with $2.5 million dollars annually. In 2011-12 fiscal year, a program was authorized to redirect $200,000 dollars from the Street Rehabilitation Program to a Sidewalk Repair and Rehabilitation Program, now called the Concrete Repair and Maintenance Program (S T - 4 4 ) . In 2015 City Staff proposed to continue to fund ST-06, Street Rehabilitation Program at $2.3M (annually) and make a strategic investment to create an ongoing, in-house program (ST-44: Concrete Repair and Maintenance) to address sidewalks and other concrete-relate assets. In the fall of 2016, the City commissioned Stantec, an international consulting engineering firm, to perform a comprehensive condition assessment of the City’s road network. The assessment rated each segment of road and assigned it a Pavement Condition Index (PCI) and a Pavement Quality Index (PQI) score. The average PCI/PQI throughout the City is 59.5 which is consistent with the average score among metro area cities. The scores will be used to select annual street maintenance projects and treatments. Going forward, the City will perform an assessment of its street network every three years to evaluate progress, condition and effectiveness of the program. The CIP provides enhanced funding to the Pavement Management Program (ST-06) beginning in 2019-2020 and maintains funding throughout plan period for concrete repair and maintenance (ST-44) by proposing $2.5M and $365,000 respectively. While the funding does not provide a solution to address the entire need, it demonstrates a long-term financial commitment on the part of the City to address street/sidewalk rehabilitation. Projects related to this priority include the Street Rehabilitation Program (ST-06) and Concrete Repair and Maintenance Program (ST-44). Sanitary Sewer and Water System Maintenance Improvements to the sanitary sewer and water systems will result in added reliability, efficiency, and safety for utility customers. Investments are funded through water and sewer user fees. In addition to a comprehensive maintenance program, the CIP includes two projects targeted for development and economic development purposes (SAN-19 and WA- 17). The projects in FY 2019-2020 related to the sanitary sewer and water systems include: 8  SAN-07 Citywide Maintenance SAN-19 Sewer Infrastructure Deployment SNI-01 Sludge Removal SNI-04-19 Reed Bed Sludge Drying Facility WA-12 Miscellaneous Watermain Maintenance WA-14 Water Tank Maintenance Contract WA-17 Water Infrastructure Deployment WA-19-20 South Outer Road Water Main Replacement SAN-20-19 Hydraulic Track Loader Parks System The Parks and Open Space Master Plan was completed in the Fall of 2016. The plan provides a 10-year vision for parks, recreation, open space and trails, as well as an action plan for implementing this vision. In April 2017, Blue Springs voters approved a 5-year sales tax dedicated to deferred maintenance of the City’s park system. 21 projects are funded over the next 5 years, totaling $13M. There are an additional 37 projects, totaling $23M that are currently shown as Unfunded. Public Area Maintenance and Rehabilitation Maintenance of public areas is a recurring capital expenditure for all communities and requires ongoing maintenance and upgrading. One of the primary purposes of the CIP is to plan when facilities need maintenance and forecast funding sources. The City Hall Complex renovation (BF-36) was an example of a funded project in this priority area in the 2017-2018 CIP. For the 5-year 2019-2020 to 2023-2024 CIP the following projects are anticipated: BF-19 Public Utilities Building - Phase II BF-37-20 Adams Pointe Conference Center - Exterior Repairs BF-38-20 Adams Pointe Conference Center - HVAC System Replacement BF-39-20 Adams Pointe Conference Center - Roof Replacement Debt Management The City of Blue Springs has a responsibility to its citizens to be good stewards of scarce public resources and exercise prudent fiscal judgment that is rooted in sound financial planning. Capital improvements must be structured by ability to pay in order to maintain fiscal stability. Like all municipalities, Blue Springs relies on a variety of resources to finance capital projects, such as locally generated revenues (sales and property taxes, fees, and user charges), intergovernmental revenue, grants, and debt issuance. Unlike pay-as-you-go sources of funding, the issuance of debt requires an ongoing revenue stream from which to repay the principal and interest on the debt. These traditional funding sources will continue to provide the majority of the resources for the CIP. Alternative funding and revenue sources will be needed to augment existing funds in order to meet the City’s deferred maintenance needs. The City’s level of capital investment is based on the mix and level of the financial resources available to the City. It is critical for the City to actively seek opportunities to broaden the tax base and increase assessed valuation, such as through new revenue-producing development to increase funding necessary to complete the public improvements desired by the community and to continue to successfully leverage grant opportunities. In determining the type of bond to issue, the following factors should be considered: • The direct and indirect beneficiaries of the project. A significantly large proportion of citizens 9  should benefit from projects financed from general obligation bonds. • The time pattern of the stream of benefits generated by the project. • The revenues that may be raised by alternative types of user charges. • The cost-effectiveness of user charges. • The effect of the proposed bond issue on the City’s ability to finance future projects of equal or high priority. • The true interest cost of each type of bond. • The impact on the City’s financial condition and credit ratings. General Policies for Long Term Debt: • Long-term borrowing will be confined to construction of capital improvements and acquisition of capital equipment too large to be financed from current revenues. • Proceeds from long-term debt should only be used for construction project costs, acquisition of other fixed assets, bond issue costs, debt service reserve requirements, and refunding of outstanding bond issues and will not be used for current, ongoing operations. • Debt will be extinguished within a period not to exceed the expected useful life of the capital project or equipment. • The City should actively monitor its investment practices to ensure maximum returns on its invested bond funds while complying with Federal arbitrage guidelines. • The Finance Department should continually monitor outstanding debt issues to verify compliance with debt covenants. • The City’s financial management policies should be oriented to maintain a balanced relationship between issuing debt and pay-as-you-go financing. Type of Debt The City of Blue Springs is authorized to issue General Obligation Bonds, Revenue Bonds, and annual appropriation of debt for Leasehold Revenue Bonds and Lease-Purchase Certificates of Participation. General Obligation Bonds: The City is authorized to issue General Obligation Bonds payable from ad valorem taxes to finance capital improvements and equipment upon a two-thirds majority vote, and on general election dates by a four-sevenths majority vote of the qualified voters. The Missouri State Constitution permits the City to incur general obligation indebtedness for City purposes not to exceed 10 percent of the assessed valuation of taxable tangible property; to incur general obligation indebtedness not to exceed an additional 10 percent for acquiring rights of way; to construct and improve streets, sanitary sewers, and storm sewers; and to purchase or construct waterworks plants. General obligation, property tax- supported bonding should be used to finance only those capital improvements and long-term assets which have been determined to be essential to the maintenance or development of the City. The City should maintain a General Obligation Debt Service Fund balance that is at least 50 percent of the average annual debt service. Revenue Bonds: The City is also authorized to issue Revenue Bonds to finance capital improvements for its water and sewer system. These types of Revenue Bonds require a simple majority vote. Revenue Bonds do not carry the full faith and credit of the City in servicing bond indebtedness, and such bonds are not considered in determining the legal debt margin resulting from the 20 percent limitation described above. However, if any taxes are pledged or dedicated to the payment of revenue bonds (e.g., sales taxes, property taxes, etc.) the bonds must be voted as general obligation bonds, the debt limit must be observed, and all bonds must be paid off within 20 years. Revenue supported bonds should be used to limit potential dependence on property taxes for those projects with available revenue sources, whether self- generated or dedicated from other sources. Adequate financial feasibility studies should be performed for each project to provide assurances as to the self-liquidating nature of the project or adequacy of dedicated revenue sources. 10 Certificates of Participation: Certificates of Participation (COPs) are tax exempt bonds issued by State entities usually secured with revenue from an equipment or facility lease. COPs enable governmental entities to finance capital projects without technically issuing long term debt. Funding Sources and Strategies General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial resources (assets, liabilities, revenues, and expenditures) except those required to be accounted for in another fund. The General Fund includes expenses attributed to governmental operations such as personnel and routine operating costs generally associated with Administration, Planning, Public Safety, Public Works/Engineering, Street Maintenance, and Parks and Recreation. Debt Service Funds: Debt Service Funds are used to account for the accumulation of resources for, and the payment of, principal, interest and other related costs of the City’s bonds, other than bonds payable from the operations of the Proprietary Fund Types. Capital Project Funds: Capital Project Funds are used to account for financial resources segregated for the acquisition or construction of major capital facilities other than those financed by enterprise operations. Enterprise Funds: Enterprise funds are used to account for operations that provide a service to citizens financed primarily by a user charge for the provision of that service, and activities where the periodic measurement of net income is deemed appropriate for capital maintenance, public policy, management control, accountability or other purposes. The City’s Enterprise Funds include the Water Utility Fund, Sewer Utility Fund, Fieldhouse Fund, and the Golf Course Fund. Internal Service Fund: An Internal Service Fund accounts for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost reimbursement basis. The City’s Fleet Maintenance Fund is used to account for all the expenses relating to motor vehicles, including replacement and routine maintenance and repairs. Account Groups: The General Fixed Assets Account Group is established to account for all fixed assets of the City, other than those accounted for in the Proprietary Fund Types. The General Long-Term Debt Account Group is established to account for all long-term debt of the City except that debt which is accounted for in the Proprietary Fund Types. Park Sales Tax Fund: Park Sales Tax Fund accounts for the accumulation and disbursement of the City’s ½ cent Park Sales Tas that is dedicated to deferred maintenance of the City’s park system. Public Save Sales Tax Fund: Public Safety Sales Tax Fund accounts for the accumulation and disbursement of the City’s ½ cent Public Safety Sales Tax that can only be used for Public Safety purposes. Alternative Funding Sources Special Grants from Federal or State Programs: Occasionally, special grants are available from the federal or state government in support of local development and improvement efforts. The City will continue to be aware of these grants to leverage resources to their fullest extent; unfortunately, such resources have declined significantly in recent years. 11 Federal Community Development Block Grant (CDBG): Federal Community Development Block Grant (CDBG): The City's most recent population estimate is 54,945 and therefore eligible for CDBG funding as an entitlement community through HUD. The City will receive $260,678 for the 2019-20 program year. The City was awarded $271,636 for the 2018-19 program year (and reprogrammed $69,438 of unexpended pre-2017 funds). These funds must be programmed for low-moderate income areas and activities within the City. These funds have historically been directed towards downtown infrastructure and building improvements, such as street lights, sidewalks, and façade rehabilitation. Programs funded in 2018-19 include: Minor Home Repair Program ($75,000), First Time Home Buyer Program ($48,000), and public services, including the Fieldhouse Recreation Passes Program and Downtown Alive. It is anticipated that there will be a balance of approximately $68,000 from unexpended pre-2018 funds that will need to be reprogrammed into the 2019-20 program year. Unexpended funds should be reprogrammed as soon as possible to meet timeliness requirements for expending funds. Tax Increment Financing (TIF): Establishment of a district within which additional sales taxes generated by any new development can be used to finance necessary infrastructure improvements. Special Districts: Establishment of special districts can provide the City with a means of separately financing and implementing improvements within a limited geographic area to meet the need for new or improved public facilities, especially in a developing part of the City. User Charges: There may be cases where a user fee can be implemented to pay for the improvement of facilities. Impact Fees: New developments that are expected to generate needs for new or expanded public facilities are required to pay an impact fee for the development or improvement of facilities. This will partially offset the costs associated with increased service level demands in growth areas. Operating Budget Impact The City’s operating budget provides for general service delivery including personnel costs, supplies, and services. Revenues are primarily derived from recurring taxes, charges for services, investments, and intergovernmental sources. Projected operating and maintenance costs related to capital investments are included in the operating budget. When new, enhanced, or expanded service levels are authorized in the operating budget, additional capital investments are sometimes required. Furthermore, because a portion of the capital budget is funded by current revenues in the operating budget, operating budget decisions have capital budget capacity implications and the City’s overall financial position. The continued development in the southern quadrant of the City (Chapman Farms, Chapman Woods, Chapman Ridge, Parkway Estates, and Eagles Ridge), has resulted in a number of new streets that either have been, or will be constructed. The construction of new streets increases the City’s service costs for items such as snow removal, street sweeping, street striping, repairs, and street lighting. The City’s storm water collection system continues to deteriorate with respect to repairs handled on a reactionary basis. There is no capacity within the operating budget or CIP for proactive or preventive maintenance programming or significant reconstruction projects. It will be important in the future to identify resources to adequately maintain the City’s stormwater system. Water and sanitary sewer construction and extension will not typically have a significant impact on the operating budget throughout the useful life of these assets. The five-year CIP includes projects that are considered improvements/maintenance to existing facilities and or operational improvements with equipment and metering and will not result in negative impacts to the operating 12 budget and in fact may drive efficiency of the systems. As identified with streets projects noted above, considerable development is occurring in the southern sector of the City and, with that development, comes sanitary sewer improvements that will eventually need to be maintained. The majority of the water system in the south area is provided by Water District 13 so the City will not be responsible for future maintenance. Summary The City carefully evaluates its revenue and spending, and forecasts future revenue trends on an annual basis. Capital improvement programming would not be possible without these projections. Table 2 on page 4 presents a summary of the projected available CIP funds for the plan period by fund types. The projected available funds for capital improvement projects are based on the total forecasted revenue of each type less the amount required for the annual operating budget, capital outlay, and existing debt service support. Each year, the CIP process begins with a list of needs, which is then compared to the projected available funding sources to determine which capital improvements can be accomplished in the upcoming fiscal year. Figure 2 (page 14) provides a list of the capital improvement projects recommended to be included in the FY 2019-2020 to 2023-2024 CIP. Appendix A (beginning on page A1) includes detailed project sheets for each funded project over the plan period. Only projects recommended for inclusion in 2019-2020 Fiscal Year CIP are incorporated into the operating budget for the upcoming fiscal year. Projects recommended to be included in the remaining years will continue to be evaluated during the annual CIP process. 13  Figure 2 – Summary of Funded Capital Improvement Projects 2019-2020 to 2023-2024 Project Name and Number FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 TOTAL CD-01 Comprehensive Plan Update $ - $ - $ - $ - $ 125,000 $ 125,000 CD-03 Downtown Revitalization $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 300,000 Community Development Subtotal $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 185,000 $ 425,000 IT-01 Document Archival, Retention and Retrieval $ - $ 147,992 $ - $ - $ - $ 147,992 IT-03 Upgrade MS Govern GEMS to Innoprise $ 175,000 $ - $ - $ - $ - $ 175,000 Information Technology Subtotal $ 175,000 $ 147,992 $ - $ - $ - $ 322,992 FH-01-18 Replacement of Fitness Cardio Equipment $ - $ - $ 190,000 $ - $ - $ 190,000 Fieldhouse Subtotal $ - $ - $ 190,000 $ - $ - $ 190,000 PS-10-20 Police Department Security System Upgrade $ 145,000 $ - $ - $ - $ - $ 145,000 Public Safety Subtotal $ 145,000 $ - $ - $ - $ - $ 145,000 PR-02-18 Wilbur Young Park Renovation $ 2,821,300 $ 678,700 $ - $ - $ - $ 3,500,000 PR-03-18 Vesper Hall Improvements $ - $ 370,000 $ - $ - $ - $ 370,000 PR-04-18 Adams Pointe Golf Club Improvements $ 500,000 $ - $ 500,000 $ - $ - $ 1,000,000 PR-07-18 Duncan Road Trail Replacement $ - $ - $ 171,000 $ - $ - $ 171,000 PR-10-18 Adams Dairy Parkway Trail Replacement $ 238,400 $ - $ 116,500 $ - $ - $ 354,900 PR-11-18 Rotary Park Trail Replacement $ 144,300 $ - $ - $ - $ - $ 144,300 PR-12-18 Keystone Park Trail Replacement $ - $ - $ 53,500 $ - $ - $ 53,500 PR-13-18 Keystone Park Improvements $ - $ 160,000 $ 450,500 $ - $ - $ 610,500 PR-14-18 Baumgardner Park Improvements $ - $ - $ 316,000 $ - $ - $ 316,000 PR-15-18 Blue Springs Park Improvements $ - $ 290,000 $ - $ - $ - $ 290,000 PR-16-18 Pink Hill Park Improvements $ - $ 1,724,000 $ - $ - $ - $ 1,724,000 PR-17-18 Rotary Park Improvements $ - $ 294,500 $ - $ - $ - $ 294,500 PR-18-18 Hidden Valley Park Improvements $ - $ 601,000 $ - $ - $ - $ 601,000 PR-19-18 Vesper Hall Parking Lot Improvement $ - $ 172,000 $ - $ - $ - $ 172,000 PR-20-18 Ward Park Improvements $ - $ 133,000 $ - $ - $ - $ 133,000 PR-21-18 Woods Chapel Park Improvements $ - $ 78,000 $ - $ - $ - $ 78,000 PR-40-19 Aquatics Facility - Aquatics Needs Study $ 125,000 $ - $ - $ - $ - $ 125,000 PR-70-19 Roscoe Righter Park - Conceptual Design $ 75,000 $ - $ - $ - $ - $ 75,000 PR-71-19 Southwest Park - Conceptual Design $ 75,000 $ - $ - $ - $ - $ 75,000 Parks Subtotal $ 3,979,000 $ 4,501,200 $ 1,607,500 $ - $ - $ 10,087,700 PW-01 Public Works Asset Management Software $ 91,667 $ - $ - $ - $ - $ 91,667 Public Works Subtotal $ 91,667 $ - $ - $ - $ - $ 91,667 ST-06 Pavement Management Program $ 2,500,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 2,800,000 $ 13,700,000 ST-24 Snow Plow / Dump Truck $ - $ 152,981 $ 157,570 $ 165,000 $ 169,000 $ 644,551 ST-26 1.5 Ton Dump / Snow Truck $ 82,000 $ - $ 85,000 $ - $ - $ 167,000 ST-27 Street Difference $ - $ - $ 75,000 $ 75,000 $ 75,000 $ 225,000 ST-43 7 Highway Sidewalk Infill $ 777,500 $ - $ - $ - $ - $ 777,500 ST-44 Concrete Repair and Maintenance $ 365,000 $ 384,000 $ 406,000 $ 425,450 $ 447,000 $ 2,027,450 ST-53 7 Hwy and South Ave Traffic Signal $ 902,500 $ - $ - $ - $ - $ 902,500 Streets Subtotal $ 4,627,000 $ 3,336,981 $ 3,523,570 $ 3,465,450 $ 3,491,000 $ 18,444,001 STM-06 Stormwater Maintenance $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Stormwater Subtotal $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 PW-01 Public Works Asset Management Software $ 91,667 $ - $ - $ - $ - $ 91,667 SAN-07 Citywide Maintenance $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5,000,000 SAN-17 12,000 lb. Hydraulic Excavator $ - $ 61,400 $ - $ 64,000 $ - $ 125,400 SAN-19 Sewer Infrastructure Deployment $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 1,000,000 SAN-20-19 Hydraulic Track Loader $ 52,000 $ - $ 54,000 $ - $ 56,250 $ 162,250 SAN-21-19 1.5 Ton Service Truck $ - $ 60,000 $ - $ - $ - $ 60,000 SAN-23-20 Sewer Flushing Truck $ 250,000 $ - $ - $ - $ - $ 250,000 Sanitary Sewer Utility Subtotal $ 1,593,667 $ 1,321,400 $ 1,254,000 $ 1,264,000 $ 1,256,250 $ 6,689,317 SNI-01 Sludge Removal $ 2,500,000 $ - $ - $ - $ - $ 2,500,000 SNI-04-19 Read Bed Sludge Drying Facility $ 1,350,000 $ - $ - $ - $ - $ 1,350,000 Sni-A-Bar Subtotal $ 3,850,000 $ - $ - $ - $ - $ 3,850,000 PW-01 Public Works Asset Management Software $ 91,666 $ - $ - $ - $ - $ 91,666 WA-03 Rubber Tire Front End Loader $ - $ 127,000 $ - $ - $ - $ 127,000 WA-04 18,000 lb. class Hydraulic Excavator $ - $ 112,320 $ - $ - $ - $ 112,320 WA-12 Miscellaneous Watermain Maintenance $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 2,000,000 WA-14 Water Tank Maintenance Contract $ 177,193 $ 186,060 $ 195,400 $ 206,220 $ 216,531 $ 981,404 WA-17 Water Infrastructure Deployment $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ 1,000,000 WA-18-19 1.5 Ton Service Truck $ - $ - $ - $ 66,000 $ - $ 66,000 WA-19-20 South Outer Road Water Main Replacement $ 1,300,000 $ - $ - $ - $ - $ 1,300,000 Water Utility Subtotal $ 2,168,859 $ 1,025,380 $ 795,400 $ 872,220 $ 816,531 $ 5,678,390 GRAND TOTAL ALL FUNDS $ 16,790,193 $ 10,492,953 $ 7,530,470 $ 5,761,670 $ 5,848,781 $ 46,424,067 14 Figure 3 – Summary of Unfunded Capital Needs by Category FY 2019-20 to 2023-24 15 New Projects Submitted by Department Parks and Recreation BF-37-20 Adams Pointe Conference Center - Exterior Repairs BF-38-20 Adams Pointe Conference Center - HVAC System Replacement BF-39-20 Adams Pointe Conference Center - Roof Replacement Public Safety PS-10-20 Police Department Security System Upgrade Public Works SAN-23-20 Sewer Flushing Truck SNI-04-19 Reed Bed Sludge Drying Facility ST-58-20 ADP Street Lighting 2 (Moreland School Road to Wyatt Road) WA-19-20 South Outer Road Water Main Replacement  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Adams Pointe Project Number: BF-37-20 Conference Center – Exterior Repairs Unfunded Project Type: Capital Improvement $250,000 Project Cost: Department: Parks and Recreation Funding Source: Unfunded Strategic Plan Building Maintenance Requested for 2024-25 Priority: Years: Description: Make improvements to the exterior of the building including EFIS repairs, painting, window seals and glass replacement where needed and door closers. Justification: Currently the building is aging, reaching 20-years old and many areas of the exterior are requiring maintenance such as painting, windows and doors. To maintain the building and keep it from requiring significant repairs, replacement and maintenance is required. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $0 $0 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $250,000 $250,000 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $250,000 $250,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $250,000 $250,000 Total $0 $0 $0 $0 $0 $0 $250,000 $250,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Adams Pointe Project Number: BF-38-20 Conference Center – HVAC System Replacement Unfunded Project Type: Capital Improvement $1,200,000 Project Cost: Department: Parks and Recreation Funding Source: Unfunded Strategic Plan Building Maintenance Requested for 2023-24 Priority: Years: Description: Replacement of existing 20-year HVAC roof top units. Justification: The current HVAC system is reaching its life cycle. Many repairs have been made over the years and the unit is experiencing more and more costly repairs to the point replacement is the best alternative. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $0 $0 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $1,200,000 $1,200,000 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $1,200,000 $1,200,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $1,200,000 $1,200,000 Total $0 $0 $0 $0 $0 $0 $1,200,000 $1,200,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Adams Pointe Project Number: BF-39-20 Conference Center – Roof Replacement Unfunded Project Type: Capital Improvement $500,000 Project Cost: Department: Parks and Recreation Funding Source: Unfunded Strategic Plan Building Maintenance Requested for 2023-24 Priority: Years: Description: Replacement of existing 20-year roof with new roof. Justification: The current roof has significant leaks that require patching to occur at a significant cost to make patch repairs with no warranty. The current roof has exceeded its life expectancy and needs to be replaced along with re- engineered to provide a better water tight envelope. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $0 $0 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $500,000 $500,000 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $500,000 $500,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $500,000 $500,000 Total $0 $0 $0 $0 $0 $0 $500,000 $500,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Police Department Project Number: PS-10-20 Security System Upgrade Unfunded Project Type: Buildings and Facilities $145,000 Project Cost: Department: Police Funding Source: Unfunded Strategic Plan Public Safety Requested for 2020-2021 Priority: Years: Description: The replacement of the security system controlling doors and cameras in the Police Department is the intent of this project. Migrating the AMAG system currently in place to Genetec will be the focus of the project. The original controlling system is proprietary and costly to service, when service can be obtained. The proprietary system controls the touchscreen interface located in communications and detention that it is used to operate doors, speakers, and other features of the system. When this system does not function the touchscreen interface does not operate as needed creating safety issues. It is important to have a system that can be maintained by a local vendor and is consistent with other operating systems within the City. Justification: The migration described above will bring the Police Department into the same operating system as other municipal facilities and will ensure that a local vendor is capable of servicing the system. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $0 $0 Equipment $0 $0 $0 $0 $0 $0 $145,000 $145,000 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $0 $0 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $145,000 $145,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $145,000 $145,000 Total $0 $0 $0 $0 $0 $0 $145,000 $145,000 DATE: March 26, 2019 TO: Christine Cates, Assistant City Administrator Lori Turner, Budget Analyst Mike Mallon, Assistant Director Community Development FROM: Chris Sandie, Director of Public Works SUBJECT: San-10 and SAN-23 Funding Notes The department currently performs all sewer flushing tasks with one combination flushing/vacuum truck that is scheduled to be replaced every 6 years. The recent surge in communication installations within the public rights of way have increased the need to reduce liabilities during excavations by using hydro-excavating practices. Higher demand for the vacuum truck is resulting in scheduling conflicts and a restricted ability to complete scheduled preventative maintenance flushing. In addition, during periods of down time the department must utilize contracted providers to perform emergency flushes for residents resulting in substandard response times and increased costs. The addition of this piece of equipment would eliminate these issues and enable the department to push the years of service for both pieces of equipment out to 12 years resulting in both lower annual costs and higher level of service to the community. The request to fund SAN-23 at $250,000 in 2019-2020 postpones the $400,000 in funding for SAN-10. The two pieces of equipment are similar, but not the same. SAN-23 funds the purchase of a flushing truck to be used for routine, annual preventive maintenance sewer flushing. This task is currently performed by the unit slated for replacement in 2019-20, SAN-10, which is a combination flusher/vacuum truck. SAN-10 has been included in the most recent rate study and is currently on a six-year rotation. The request will reduce the 2019- 20 budget impact to the Sewer Fund by $150,000. By introducing the flusher only truck into the fleet, the replacement schedule can be extended to 12 years for each piece of equipment. SAN-10, combination unit, will be requested in the 2025-26 CIP and SAN-23, flusher only unit, will return in the 2031-32 CIP. This will allow the equipment to impact the budget every six years rather than all at once. The rotation helps balance the CIP budget.  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Sewer Flushing Truck Project Number: SAN-23-20 Sewer System Unfunded Project Type: $250,000 Equipment Project Cost: Public Works Sewer Department: Funding Source: Unfunded Maintenance Strategic Plan Infrastructure Requested for 2019-2020 Priority: Years: Description: This request is for the addition of a sewer flushing truck to support both preventative maintenance activities and emergency response to customer back-ups. Justification: The department currently performs all tasks with one combination flushing/vacuum truck that is scheduled to be replaced every 6 years. The recent surge in communication installations within the public right of ways have increased the need to reduce liabilities during excavations by using hydro-excavating practices. This has placed a demand on the vacuum truck resulting in scheduling conflicts and a restricted ability to complete scheduled preventative maintenance flushing. In addition, during periods of down time the department must utilize contracted providers to perform emergency flushes for residents resulting in substandard response times and increased costs. The addition of this piece of equipment would eliminate these issues and enable the department to push the years of service for both pieces of equipment out to 12 years resulting in both lower annual costs and higher level of service to the community. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $0 $0 Equipment $0 $0 $0 $0 $0 $0 $250,000 $250,000 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $0 $0 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $250,000 $250,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $250,000 $250,000 Total $0 $0 $0 $0 $0 $0 $250,000 $250,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: Reed Bed Sludge Project Number: SNI-04-19 Drying Facility Current Project Project Type: Infrastructure $1,350,000 Cost: Funding Department: Public Works Sewer Utility Fund Source: Strategic Regulatory Plan Priority: Description: The project has been revised since it was submitted for inclusion in the 2018-19 CIP. This project provides for the engineering and construction of 28,450 square feet of all-weather surface drying area to be used in the final disposal process of the sludge from the wastewater treatment plants reed drying beds. This facility will include a drainage system to capture leachate from the area and return it to the head works of the treatment facility. Justification: The reed beds have been in operation for three years and have approximately two years of capacity left. At that time the sludge will need to be removed and placed in covered storage for one additional year to complete the pathogen reduction. Following this the dried material will be trucked and land applied on nearby City property with City equipment and forces resulting in substantial savings over contracted services. The requested timeline for funding and construction is critical in the continued operation of the reed beds to restore their capacity. In the original project a block wall foundation was proposed with a fabric over metal structure being built on top of the foundation. After further research it has been determined the structure will be much more durable with a poured foundation backed by earth fill. Due to the large size of the WWTP’s sludge reed bed system (4 acres total with about 1 acre per bed, 4 beds total), a sizeable amount of area is needed for the temporary storage of stabilized solids from 1 bed. Sludge should be removed from the beds every 7 to 10 years. Typically, a smaller system with 1 or 2 beds result in their sludge staging area being more temporary in nature and not used on a consistent basis. Since staff will have to rotate between beds by cleaning out only 1 bed every year, the storage area will be in use about 85% of the time. This results in the structure needing to be constructed in a manner that will make it serviceable and useable for a 20- year life span. As such, the use of concrete walls of precast or cast in place concrete are recommended as compared to a more temporary “Jersey Barrier” type of construction with liner membranes. Also, due to the volume of material requiring storage, it was determined during design that the use of two structures versus one large one was more suited to the site area available, including space needed for truck traffic into and out of the covered areas. Therefore, the use of concrete retaining walls and two smaller structures versus one larger one resulted in an updated project cost estimate being prepared during the design phase.  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $140,000 $0 $0 $0 $0 $0 $0 $140,000 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $1,350,000 $0 $0 $0 $0 $0 $1,350,000 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $140,000 $1,350,000 $0 $0 $0 $0 $0 $1,490,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Sewer Utility Fund $140,000 $1,350,000 $0 $0 $0 $0 $0 $1,490,000 Total $140,000 $1,350,000 $0 $0 $0 $0 $0 $1,490,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: ADP Street Lighting 2 Project Number: ST-58-20 (Moreland School Road to Wyatt Road) Unfunded Project Type: Street Construction $1,500,000 Project Cost: Funding Department: Public Works Unfunded Source: Strategic Infrastructure Requested for 2022-2023 Plan Priority: Years: Description: Continuation of the existing decorative street lighting along Adams Dairy Parkway to the southern city limits. Placement of additional street lighting infrastructure from Moreland School Road to Wyatt Road, being 1.6 miles. Justification: Provide a safer path of travel for motorists and pedestrians along this segment of Adams Dairy Parkway. With the recent land developments in the City’s southern portion traffic has increased. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $200,000 $200,000 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $1,300,000 $1,300,000 Contingency $0 $0 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 $1,500,000 $1,500,000 Op Expense $0 $0 $0 $0 $0 $0 $4,400 $4,400 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $1,500,000 $1,500,000 Total $0 $0 $0 $0 $0 $0 $1,500,000 $1,500,000  CAPITAL IMPROVEMENTS PROGRAM 2020 - 2024 Project Title: South Outer Road Project Number: WA-19-20 Water Main Replacement Water Main Unfunded Project Type: $1,300,000 Replacement Project Cost: Department: Public Works Water Funding Source: Unfunded Strategic Plan Infrastructure Requested for 2019-2020 Priority: Years: Description: This project provides for the replacement of 7,466 feet of 8-inch ductile iron water main with 12-inch PVC water main from 7 Hwy to McCarthy Auto along South Outer Road. Justification: The existing 8-inch ductile iron pipe water main was installed in 1980 without a polyvinyl liner to protect the main from the effects of corrosion. Over time the corrosion has resulted in many pipe failures with several resulting in lengthy repairs and reducing the reliability of the main to provide service. This main serves several businesses along the South Outer Road including restaurants, hotels, and medical buildings which are financially impacted each time this main fails. While this project is being identified as a stand- alone project, funding is being requested through the already approved WA- 12 Miscellaneous Water Main Maintenance project. WA-12 is generally used every 3-5 years to build up funds to maximize economies of scale. No funds have been utilized during the past 3 years in order to address this more urgent project. Projected Five-Year Cost Schedule Cost Breakdown Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Land $0 $0 $0 $0 $0 $0 $0 $0 Design $0 $0 $0 $0 $0 $0 $100,000 $100,000 Equipment $0 $0 $0 $0 $0 $0 $0 $0 Landscape $0 $0 $0 $0 $0 $0 $0 $0 Construction $0 $0 $0 $0 $0 $0 $1,000,000 $1,000,000 Contingency $0 $0 $0 $0 $0 $0 $200,000 $200,000 Total $0 $0 $0 $0 $0 $0 $1,300,000 $1,300,000 Op Expense $0 $0 $0 $0 $0 $0 $0 $0 Cost Savings $0 $0 $0 $0 $0 $0 $0 $0 Projected Five-Year Funding Schedule Source Prior 2019-20 2020-21 2021-22 2022-23 2023-24 Beyond Total Unfunded $0 $0 $0 $0 $0 $0 $1,300,000 $1,300,000 Total $0 $0 $0 $0 $0 $0 $1,300,000 $1,300,000