Item 10H MemoCITY OF SOUTHLAKE
MEMORANDUM
January 14, 2004
TO: Honorable Mayor and Members of the City Council
FROM: Bruce Payne, Planning Director
SUBJECT: Approval of the Technical Committee Recommend FY 2002 -03 To FY 2006 -07
Capital Improvements Program
In accordance with the Texas Local Government Code and the Charter of the City of
Southlake, the proposed Fiscal Year (FY) 2003 -04 to FY 2007 -08 Capital Improvements
Program (CIP) is submitted for City Council consideration.
The CIP establishes a five (5) year funding schedule for the purchase, construction or
replacement of physical assets of the City. Capital improvements typically have a useful life
of over ten (10) years and value greater than $10,000. The first year (FY 2003 -04) of the
Capital Improvements Program is called the Capital Budget, and is appropriated in the same
manner as the annual operating budget. Funds for projects are appropriated on an annual
basis. Projects approved for subsequent years (FY 2004 -05 through FY 2007 -08) are
approved for planning purposes only and do not receive expenditure authority until they are
part of the Capital Budget.
CIP Technical Committee
Each year the CIP Technical Committee prepares a recommended five (5) year CIP and
presents it to City Council. The CIP Technical Committee is a staff committee and consists of
the Assistant City Manager (Shang Yelverton) and the directors for each of the city's
departments (Rick Black, Sharen Elam, Pedram Farahnak, Kevin Hugman, Malcolm Jackson,
Greg Last and Bruce Payne).
In September 2003, the CIP Technical Committee began the process of evaluating the FY
2003 -04 to FY 2007 -08 CIP project requests. This year the committee only evaluated projects
requesting the utilization of general fund or utility fund dollars. The committee did not evaluate
projects utilizing Southlake Parks and Development Corporation (SPDC) funds, Crime Control
and Prevention District (CCPD) funds, or Water /Sewer Impact Fee funds. The SPDC & CCPD
projects are indicated in the CIP spreadsheet as approved by City Council last year. The
Public Works Department only submitted one (1) project that was eligible for water /sewer
impact fee dollars (Developers Reimbursement for Oversizing Utilities) and the project request
matched the dollar amount available in the fund. Therefore, there was no need for the
committee to evaluate the project request (Technical Committees Recommended CIP -See
Attachment A).
Methodology for reviewing general and utility fund CIP projects requests
The methodology for the review of CIP projects by the Technical Committee involved the
following:
1) a detailed presentation of each CIP project request by a staff member from the
submitting department;
2) Technical Committee members asking questions to the submitting department
regarding the project request;
3) discussing the merits of the CIP project request; and
4) scoring the CIP project request based on criteria outlined on the Project Ranking
Form (See Sample Project Ranking Form — Attachment B).
Once scored, the CIP project was ranked in the appropriate funding category (i.e. general fund
or utility fund) based on the score received. The resulting project list was then reviewed by
the technical committee to ensure that there were no obvious flaws in the ranking system.
The Technical Committee then reviewed the dollar amount available in each of the fund
categories for each of the next five (5) fiscal years and then recommended projects to be
funded in the upcoming fiscal year (FY 2003 -04) and the other four (4) out -years (FY 2004 -05
to FY 2007 -08).
Technical Committee's Review Process Expedited
During this the development of this year's CIP, the Technical Committee's review process was
expedited as a result of the following:
1) The Planning Department in conjunction with each submitting department pre -
scored each CIP project request; and
2) The Planning Department in conjunction with each submitting department
thoroughly reviewed the content and merit of each project request prior to
submission to the Technical Committee.
Pre - scored CIP Proiects
During last year's review it was discovered that the CIP project ranking form had a number of
questions (criteria) which could be answered simply with a "yes" or "no ". This year, these
questions were answered in advance and a pre -score numerical value was assigned to the
project prior to submission of the request form to the Technical Committee. This resulted in a
CIP Technical Committee Memo
January 15, 2004
Page 2
reduction of eight (8) questions on the ranking form and substantially reduced the amount of
time required for the Technical Committee to score the submittals.
Pre - review of the CIP Proiects
By reviewing the CIP project request form prior to submission to the Technical Committee
resulted in a more thorough project request form and minimized needed revisions.
Technical Committee's Recommended FY 2003 -04 to FY 2007 -08 CIP
Attached is the FY 2003 -04 to FY 2007 -08 CIP spreadsheet. Unfortunately, the funds
available over the next five (5) years do not provide for all the CIP requests submitted. As a
result, there are 27 projects ($28,402,000) that can not be funded during the next five (5)
fiscal years.
General Fund
The General Fund is the largest city fund and supports all municipal operations with the
exception of water /wastewater utility operations, parks development operations, crime control
operations and the Tax Increment Financing District. The major revenues of the General
Fund include property taxes, sales taxes, franchise fees, license and permit fees, and fines.
The General Fund is typically used to fund capital projects such as road and trail construction
and major drainage projects.
The General Fund CIP expenditure for FY 2003 -04 is anticipated to be $3,000,000. The
expenditures for the remaining four (4) years are also anticipated to be approximately
$3,000,000 per year. The following is a summary of the General Fund projects recommended
by the Technical Committee for approval in FY 2003 -04.
• N. CARROLL AVENUE WIDENING (FEDERAL WAY TO SH 114) - ($2,172,000).
Designing and constructing ultimate 4 -lane section from SH 114 to Federal Way. The 12"
water line & 8" sewer line projects along Carroll Avenue are companion projects to this
request (See Utility Fund).
• PIN OAK CIRCLE (FORMERLY KNOWN AS OAK LANE) PAVING AND DRAINAGE —
250 000. Reconstruction of roadway and limited drainage improvements. City Council
has committed to fund this project via a 380 Agreement between the City and developer.
• SIDEWALKS ALONG VARIOUS ROADWAYS —($110,000) Construction of sidewalks
near schools or in other areas where pedestrian traffic is high. Project may or may not be
part of the trail system. Possible projects include S. Peytonville Ave. from Carroll High
School to Stonebury Ct.; Dove St. near Carroll Middle School; Carroll Ave. and Highland
Ave. near Johnson Elementary & Carroll Intermediate; and on Shady Oaks Dr. near
Durham.
CIP Technical Committee Memo
Januan 15, 2004
Page 3
• CARROLL AVENUE - CONTINENTAL ROUNDABOUT - ($150,000). Construct roundabout
to replace the existing four -way stop and increase intersection capacity to 20,000 vehicle
trips per day.
• FLORENCE ROAD REHABILITATION (N. PEARSON TO RANDOL MILL) — ($218,000)0
Rehabilitation of 6,000' of existing pavement. Tarrant County has agreed to
construct this project in late 2004, resulting in a $769,000 cost savings to the city.
The city will use the $218,000 to purchase materials.
• T.W. KING REHABILITATION (SH 114 TO SOUTH OF BOB JONES) —($100,000).
Rehabilitation of pavement and necessary drainage improvements. Tarrant County
has agreed to construct this project in late 2004, resulting in a $395,000 cost savings
to the city. The city will use the $100,000 to purchase materials.
Utility Fund
The Utility Fund is a proprietary fund established to separately account for the City's water,
wastewater and sanitation services. The primary source of revenue is derived from residential
and commercial water sales. Other sources of revenue are sewer sales, sanitation sales and
tap fees. The Utility Fund supports the construction of capital projects such as water,
wastewater and sanitation systems. The Utility Fund CIP expenditure for FY 03 -04 is
anticipated to be $2,939,000. The expenditures for the remaining four (4) years are
anticipated to be approximately $3,000,000 per year. The following is a summary of the Utility
Fund projects recommended for approval in FY 2003 -04.
• REDUNDANT WATER SUPPLY (THROUGH KELLER ALONG FLORENCE TO PUMP
STATION #2) — ($2,268,000). Redundant water supply from Fort Worth to Southlake. 42"
line from Caylor tank to Pump Station #1. 24" line from Pearson to SH 114; 24" line on SH
114 to T.W. King; and associated pumping equipment. The current 36730" transmission
line is overloaded. Further delay will result in serious water shortages.
• N -2 SEWER INTERCEPTOR — ($336,000). N -2 Interceptor is essential for the
development of the DPS North facility and Aventerra property. Funds are needed to
reimburse developers who are constructing the line and complete unfinished portions of the
line.
• 8" SEWER LINE ALONG N. CARROLL AVE. (DPS East to SH 114) (IN CONJUNCTION
WITH N. CARROLL ROAD WIDENING) ($90,000). Project in conjunction with road
widening. Replace 1250 linear feet of existing 6" line with new 8" line.
• 12" WATER LINE ALONG N. CARROLL AVE.(FEDERAL WAY TO STATE SH- 114 -IN
CONJUNCTION WITH N. CARROLL ROAD WIDENING) ($200,000). Project in
CIP Technical Committee Memo
Januan 15, 2004
Page 4
conjunction with the widening of N. Carroll Avenue from Federal Way to SH 114. The
project replaces 1,900 linear feet of existing 6" water line with a 12" main along this section
of N. Carroll.
• 12" WATER LINE ALONG T.W. KING FROM PS #2 TO SABRE ($45,000). Construct 700
linear feet of 12" pipe. Without this line the system will not receive adequate water.
Other CIP Project Requests to Consider
Southlake Corners Cross Connect Drive
As a condition of approval of the Southlake Corners (Archon Retail) site plan, City Council
required the developer to enter into an agreement with the city to design and build a private
drive across a drainage area from its site (old Wal -Mart location) to the Kroger Center site
(Village Center). Under the agreement, Archon Retail would initially fund the total project cost
($210,000), and then be reimbursed $70,000 by the city and $70,000 Kroger Center developer
once the project was completed. However, the Kroger Center developer expressed no
interest in funding 1/3 of the project cost ($70,000). This resulted in the city's contribution
towards the project to increase from $70,000 to $140,000 (See Southlake Corners Cross
Connect Drive Reimbursement - General Fund).
The CIP Technical ranked this project low and as a result it is not recommended for funding
during the next five (5) years. This means that the bridge between the Southlake Corners site
and Kroger Center site will not be built unless City Council desires to fund the project. If the
City Council desires to move forward with this project, it is recommended that the project be
funded in FY 03 -04 to allow the construction of the bridge in conjunction with the
redevelopment of the old Wal -Mart site. This would require that a project now recommended
for funding in FY 2003 -04 be moved to a later year.
Miscellaneous Concrete Pavement Rehabilitation /T.W. Kina Rehab /Bob Jones Rehab
The city is in the process of implementing a pavement management system. This system
involves the development of an inventory and condition report for Southlake's entire street
network utilizing a computerized system. The condition report generated by the computerized
system is used to determine which roads are in need of preventive maintenance. If
preventative maintenance is performed in a timely manner, costly reconstruction can be
prevented or delayed, resulting in considerable cost savings to the city. However, all the CIP
road rehabilitation projects submitted were scored low by the CIP technical committee. Due to
limited funding, these projects are not recommended for the next five (5) years. If City Council
desires to fund road rehabilitation projects, a project recommended for funding would need to
be moved to an out year.
BCP /kmb
CIP Technical Committee Memo
Januan 15, 2004
Page D
CIP Technical Committee Memo
January 15, 2004
Page 6