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Item 10ECITY OF SOUTHLAKE INITIALLY DISTRIBUTED AT THE FEBRUARY 4, 2003 MEETING M E M O R A N D U M January 31, 2003 TO: Honorable Mayor and Members of the City Council FROM: Bruce Payne, AICP, Planning Director SUBJECT: Revised FY 2002-03 to FY 2006-07 Capital Improvements Program ACTION REQUESTED : In accordance with the Texas Local Government Code and the Charter of the City of Southlake, the proposed Fiscal Year (FY) 2002-03 to FY 2006-07 Capital Improvements Program (CIP) is submitted for City Council consideration. BACKGROUND: 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 2002-03) 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 2003-04 through FY 2006-07) are approved for planning g purposes only and do not receive expenditure authority until they are part of the Capital Budet. The proposed CIP was developed by the staff technical committee. CIP SPREADSHEETS ATTACHED TO THIS MEMORANDUM: Attached are three (3) CIP spreadsheets. Attachment A (dated February 4, 2003) is a spreadsheet which summarizes all CIP projects being recommended for funding between FY 2002-03 through FY 2006-07 by fund type (i.e. General, Utility, Sewer Impact, Water Impact, TIF, Crime Control, and SPDC). The spreadsheet also includes a list of projects that were submitted by the various City departments but can not be funded over the next five (5) years due to fiscal limitations. Attachment B (dated February 4, 2003) is a summary of all CIP projects being recommended for funding between FY 2002-03 through FY 2006-07 by project type (i.e. drainage, traffic management bond, street, water and sewer, public safety and community services). This spreadsheet also includes a list of projects that were submitted by the various City departments but can not be funded over the next five (5) years due to fiscal limitations. On both of these spreadsheets (Attachments A & B), projects recommended to be funded over the next five (5) year period (FY 2002-03 to FY 2006-07) are shaded in yellow. Projects not recommended for funding over the next five years are not shaded. On both spreadsheets, the total dollar cost of the projects not recommended for funding are shown in a column shaded blue and titled “FY 2007 and Beyond”. Federally mandated projects are indicated in “red “ lettering and projects in which the city has committed funding over the next five (5) years are indicated in “green” lettering. Also, a column has been added to the spreadsheets entitled “Residual Funds”. This is due to some CIP projects that will be funded using residual funds carried over from previously approved CIP projects. Finally, a number a CIP projects that have been revised in terms of project scope and dollar amount since City Council’s initial meeting on the CIP on December 3, 2002. All CIP projects revisions are summarized later in this memo. Attachment C (dated December 3, 2002) is a copy of the initially proposed FY 2002-03 to FY 2006-07 CIP which was reviewed by City Council at its first meeting in December, 2002. OVERVIEW OF REQUESTED CIP DOLLAR AMOUNTS: The technical committee has recommended that thirty-one (31) projects totaling $21,239,698 be funded next fiscal year (FY 2002-03) and that forty-six (46) projects totaling $60,880,698 be funded over the next five years (FY 2002-03) through (FY 2006-07). Thirty-one (31) submitted CIP project requests totaling $57,650,000 are not recommended to be funded over the next five (5) fiscal years (FY 2002-03 to FY 2006-07). The table below summarizes the CIP funding request amounts (Table A). TABLE A YEAR # OF PROJECTS $ AMOUNT FY 2002-03* 31 $21,239,698 FY 2002-03 T0 FY 2006-07 47 $60,880,698 BEYOND FY 2007 31 $57,650,000 * Includes residual funds from previously approved CIP projects. The following table on the next page is a breakdown of FY 2002-03 and FY 2002-03 to FY 2006-07 expenditures by fund category (TABLE B-See Page 3). Honorable Mayor and City Council 2 January 31, 2003 TABLE B FUND TYPE FY 2002-03 FY 2002-03 to FY 2006-07 GENERAL FUND $7,903,000 $19,665,000 UTILITY FUND $4,516,000* $15,689,000 SEWER IMPACT FEE FUND $236,000 $436,000 WATER IMPACT FEE FUND $150,000 $350,000 TIF FUND $3,925,000 $3,925,000 CRIME CONTROL FUND $1,300,000 15,046,000 SPDC FUND $3,209,698 5,769,698 TOTAL 21,239,698 60,880,698 * Includes residual funds from previously approved CIP projects. DECEMBER 3, 2002 CITY COUNCIL MEETING: The proposed FY 2002-03 to FY 2006-07 CIP was initially presented to City Council at its December 3, 2002 meeting (ATTACHMENT C). At that meeting, three (3) primary issues were discussed. A summary of these issues were as follows: 1) The basis for staff including several projects for funding in the CIP that already had been initiated or had been completed. These were the following Public Works projects: a) Storm Water Phase II-Drainage Master Plan; b) Johnson Road Sewer; c) Pavement Management System; and d) the Traffic Signal at FM 1709/S.Nolen Drive. 2) The possibility of cost savings realized if the S. Kimball Avenue ultimate road construction from Heritage Business Park to FM 1709 (including the S. Kimball Avenue S-7 sewer line) was constructed under a one single contract versus completing this project in phases over a six year time period as being proposed. 3) The need to fund the Union Church/Pearson Roads reconstruction and drainage project in this fiscal year due to the current road conditions and persistent drainage concerns. STAFF RESPONSE TO ISSUES RAISED AT THE DECEMBER 3, 2002 MEETING: Issue #1-Proiects that had initiated construction or were completed but were still listed for CIP funding. Storm Water Phase II- Drainage Master Plan This project was approved by City Council for CIP funding in FY 2001-2002. This is a federally mandated project with a deadline of March 10, 2003. Lack of compliance would have exposed the City Honorable Mayor and City Council 3 January 31, 2003 to regulatory fines of $10,000-$25,000 per day. As a result, if staff had not began this project, it was very likely that the March 10, 2003 federal deadline would have not been met. The City Council, during both the 2001 and 2002 Council Retreats directed staff to complete the project on time. The fund amount indicated in the CIP in FY 2002-03 ($527,000) is the amount needed to complete the project and includes prior spending of $120,000 (See Attachments A & B). The $120,000 was transferred from the CIP FY 2000-01 “Miscellaneous Drainage Fund” project. Johnson Road Sewer The Johnson Road rehabilitation project was approved in FY 1999-2000 and did not include the sewer line. In late 2001, a large number of property owners living along Johnson Road appeared before the City Council and requested that the extension of sewer service be included within the scope of the Johnson Road rehabilitation road project. Council agreed and directed the staff to include sewer service as a part of the project. Due to limited right-of-way and a number of large trees along Johnson Road, the sewer had to be placed under the roadway. Therefore, it was necessary to construct the sewer line prior to road construction. In order to fund the sewer line (additional $230,000), a CIP project request was approved by City Council last year anticipating available funding due to bond sales. As a result of the economy, bonds were not issued and money was not available to cover the cost of the sewer. However, the road project including the sewer line was started. The dollar amount indicated in the CIP dated December 3, 2002 ($230,000) was the amount needed to pay for the sewer line only (Road construction was funded in an earlier approved CIP (FY2000-01) (See Attachment C). Since the December 3, 2002 City Council meeting, a review of the Utility Fund by staff has indicated that there are residual funds available to pay for the sewer project. As a result, the Johnson Road sewer project is indicated in the residual fund column in the “Utility Fund” (See Attachment A) and “Water and Sewer Projects (See Attachment B) sections. Traffic Signal at FM 1709 and S. Nolen Drive This project was approved by the City Council for CIP funding in FY 2001-2002. South Nolen Drive was completed in late 2001 and was ready for acceptance by the City. However, a traffic warrant study conducted in late 2001 indicated that the Nolen Drive/FM 1709 intersection would be dangerous if a traffic signal was not installed. Anticipating available project funding due to a bond issuance, City Council directed staff to complete the project to ensure the safety of the public. Due to the state of the economy there were no bonds issued in FY 2001-2002 and funds earmarked for the Dove Creek Drainage improvements had to be used to pay for the traffic signal. The traffic signal project was initially placed into the CIP dated December 3, 2002 to replace the Dove Creek Drainage funds (See Attachment C). After the December 3, 2002 CIP discussion, staff determined that there were positive balances on previously completed CIP projects. These funds will be used to pay for the traffic signal. As such, this project has been removed from the revised CIP dated February 4, 2003 (See Attachments A & B). Honorable Mayor and City Council 4 January 31, 2003 Pavement Management System This project was approved by the City Council for CIP funding in FY 2001-2002. Due to the increasing deterioration of City streets and the financial savings that would be realized through implementing the Pavement Management System program, the City Council, during its June 2001 retreat, directed staff to complete this project. Staff started the project with the anticipation that bonds would be issued to fund the project. When no bonds were issued in FY 2001-2002, funds were transferred from the Pavement Slurry Seal project in order to start this project. The project was initially placed into the CIP dated December 3, 2002 to replace those Slurry Seal funds (See Attachment C). After the December 3,2002 CIP discussion, staff determined that there were positive balances on previously completed CIP projects. These funds can be used to pay for the Pavement Management System project. As such, this project has been removed from the revised CIP dated February 4, 2003 (See Attachments A & B). Issue #2- S. Kimball Avenue (Ultimate Project) At the December 3, 2002 meeting, City Council requested that staff determine if a cost savings would be realized by consolidating the S. Kimball Avenue from FM 1709 to Heritage Business Park; including the installation of the Kimball/S-7 sewer line from 1200' south of Crooked Lane to 1400' north of Crooked Lane into one (1) construction project. Also, Council requested that if a cost savings was indeed realized that staff revised CIP to indicate the funding of the ultimate South Kimball Avenue road construction project (including the S-7 sewer line) in the upcoming Capital Budget Year (FY 2002-03). On December 12, 2002, the Public Works Department completed a cost estimate for the ultimate S. Kimball Avenue project. The cost estimate indicated that as much as a 10% cost savings would be realized if the S. Kimball project was completed under one (1) contract (See Attachment D-Memo from Pedram Farahnak to Billy Campbell dated December 12, 2002). As a result of the potential cost savings, the City staff revised the proposed CIP to indicate the funding of the ultimate South Kimball Avenue road construction project (General Fund), including the S-7 sewer line (Utility Fund) in the upcoming fiscal year (FY2002-03-See Attachment A & B). Issue #3- Union Church/Pearson Roads and Drainage Rehabilitation* City Council discussed the need to fund the Union Church/Pearson Roads and Drainage Rehabilitation project due to the poor condition of these roads and the persistent drainage problems. Staff initially believed that the funding of both the ultimate S. Kimball Avenue project and the Union Church/Pearson Road project in FY 2002-03 could not be achieved due to fiscal constraints. However, since the December 3, 2002 meeting, the Public Works Department has been involved in conversations with Tarrant County about possibly performing the construction work on Union Church/Pearson Roads, including all the drainage construction at no cost to the City Tarrant County has agreed to consider the construction project if the City of Southlake provides all necessary materials. As such, funding for this project has remained in FY 2002-03 (Materials Only-See Attachments A & B). The City will need to enter into an inter-local agreement with the County prior to construction. By allowing the County to conduct the construction work, the City will save approximately $1.0 million. Honorable Mayor and City Council 5 January 31, 2003 (*Note: The 12" water line was eliminated from the original project. The 12" water line will be resubmitted in next year's CIP as an individual project and ranked accordingly. It is likely that new development in the area may ultimately contribute toward the funding of the construction of the water line). SUMMARY OF CHANGES TO THE CIP PROJECTS SUBMITTED DECEMBER 3, 2002: Below is a summary of the changes that were made to the CIP project requests (FY2002-03 to FY 2006- 07- See Attachments A & B) since the December 3, 2002 City Council meeting. Also, some modifications have been made to the spread sheet format. TABLE C PROJECT CHANGES FROM THE DECEMBER 3, 2002 CIP 1. STORM WATER PHASE II Changed fund amount in FY 2002-03 from $647,000 to $527,000. The $527,000 is the amount needed to complete the project. Approximately $120,000 of the original $647,000 has been spent. This $120,000 is now indicated as a prior expenditure. Storm Red lettering water Phase II is now indicated as a mandated project (). Green lettering 2. FM 1938 RIGHT-OF-WAY Indicated as a project in which the City has committed funding ().Tarrant County will purchase the right-of-way and the City will reimburse the County for the cost. Green lettering 3. DOVE ROAD REIMBURSEMENT Indicated as a project in which the City has committed funding ().This project is near completion. Funds will be used to reimburse Verizon for constructing the road. Green lettering 4. TMB PROPOSITION TWO (SH 114 Indicated as a project in which the City has committed funding (). URBAN DESIGN) Project provides urban design and landscaping along SH 114. The City is obligated to repay TXDOT for the enhancement improvements that are currently being provided in conjunction with SH 114 construction. Honorable Mayor and City Council 6 January 31, 2003 5. TMB PROPOSITION ONE The project was moved into the five (5) year CIP due to cost savings realized from the (PEARSON INTERSECTION ONLY) Kimball Avenue and Union Church/Pearson Road projects. The TMB Proposition One project was ranked #1 in General Fund category in FY 01-02 CIP; however, many of the planned TMB # 1 projects will now be constructed using State funds instead of City funds. For example, the intersection of Randol Mill Avenue and FM 1709 will now be likely constructed by TXDOT in conjunction with the FM 1938 extension project. Also, the State Regional Transportation Commission (RTC) recently approved the City's application to be included in the 2002 Strategic Program Funding Initiative. This program allows the City to use Transportation Improvement Program (TIP) funds instead of City funds to construct all 16 deceleration lanes at minor intersections along FM 1709 from Jellico to Bank Street. As a result, the only TMB project remaining is the Pearson Lane intersection improvements. 6. UNION CHURCH ROAD The project cost was reduced from $2.4 million to $543,000 due to construction of this project now likely to be performed by Tarrant County (City provides all necessary materials). The City of Keller is expected to participate in the rehabilitation of Union Church and Pearson. The $543,000 indicated in FY 2002-03 includes a City of Keller Contribution of $130,000 for costs associated with materials (one-half of cost for cement and asphalt materials). The City of Keller will not participate in the drainage improvements portion of this project. Southlake will need to enter into an inter-local agreement with the County prior to construction. 7. N. WHITE CHAPEL Initial construction funds moved back from FY 2003-04 to FY 2004-05. 8. DOVE CREEK DRAINAGE Construction funds moved back from FY 2003-04 to FY 2004-05. 9. LOCALIZED DRAINAGE Construction funds increased $250,000 for FY 2002-03. Funds eliminated in FY 2003- 04 and FY 2005-06. 10. S. KIMBALL AVENUE Amended the Kimball Avenue project description to include the ultimate pavement (4- lanes) of the roadway from FM 1709 to Heritage Business Park. As a result project cost increased from $1.35 million to $3.80 million. Project was combined under one contract in order to realize a cost savings versus constructing the project in two (2) phases over time as originally proposed. S-7 sewer will be constructed in conjunction with this project (See S-7 project in the Utility Fund section). 11. TRAFFIC SIGNAL AT FM 1709 Removed from the CIP. AND NOLEN. 12. PAVEMENT MANAGEMENT Removed from the CIP. SYSTEM Honorable Mayor and City Council 7 January 31, 2003 13. OAK LANE DRAINAGE Added to the five (5) year CIP in FY 2003-04. City Council has committed to funding Green this project. Indicated as a project in which the City has committed funding ( lettering ). 14. RANDOL MILL AVENUE This is a newly added project. This project was added to take advantage of Tarrant REHABILITATION County’s willingness to perform the construction work in a manner similar to the Union Church/Pearson Road projects. The City will need provides all necessary materials for construction. 15. 12” WATER LINE ALONG N. Originally listed in the General Fund as part of the Carroll Avenue widening project. CARROLL Project now listed in the Utility Fund as a separate project. 16. S-7 ALONG KIMBALL AVENUE. Project cost was reduced from $387,000 to $250,000 as a result of cost savings associated with completing the project in conjunction with the road project. The S-7 sewer line must be installed in conjunction with the Kimball Avenue Road project (FY 2002-03) in order to realize cost savings. All available FY 2002-03 Utility Fund dollars are allocated towards the Redundant Water Supply project and no funds are available for other projects. However, a review of the Utility Fund by staff has indicated that residual funds from previous CIP projects are available to fund this request. Therefore, $250,000 is indicated in the residual fund column. 17. JOHNSON ROAD SEWER The Johnson Road Rehabilitation project was approved in FY 2000-01 and did not include a sewer line. In late 2001, residents living along the roadway requested that City Council include a sewer line within the scope of the road project. Council agreed and directed staff to include sewer as part of the road project. Due to limited right-of-way and a large number of trees along Johnson Road, the sewer had to be placed under the roadway. Therefore, it was necessary to construct the sewer line before the road reconstruction. In order to fund the sewer line, a CIP request was approved by City Council last year anticipating available funding due to the bond sale. As a result of the economy, bonds were not issued and money was not available to cover the cost of the sewer. However, the road project (including the sewer line installation) was started. All available FY 2002-03 Utility Fund dollars are allocated towards the Redundant Water Supply project and no funds are available for other projects. A review of the Utility Fund by staff has indicated that residual funds from previous CIP projects are available to fund the sewer project request. Therefore, $230,000 is indicated in the residual fund column. The cost of the Johnson Road reconstruction (not including sewer) is approximately $1.2 million. 18. 12” WATER LINE ON SH 114 Increased funding in FY 2004-05 from $45,000 t0 $245,000. Eliminated $200,000 from (KIMBALL TO BRAIRWOOD) FY 2005-06. 19. DEVELOPER Placed in both the sewer and water impact fee fund. Projects that the City has committed REIMBURSEMENTS FOR funds to are broken out separately (Green lettering). These projects are as follows: 1) N- OVERSIZING UTILITIES 1 Sewer; 2) Loch Meadows; 3) Sienna; 4) Clariden Ranch III, and 5) Triple C Ranch. Honorable Mayor and City Council 8 January 31, 2003 20. TOWN SQUARE TIF Developer reimbursement for public infrastructure costs. REIMBURSEMENT FOR OVER SIZING UTILITIES Green lettering 21. CISD AQUATIC CENTER Indicated as a project in which the City has committed funding (). Green lettering 22. MATCHING FUND GRANT Indicated as a project in which the City has committed funding (). Green lettering 23. JOINT-USE PROJECTS Indicated as a project in which the City has committed funding (). KMB/BP ATTACHMENTS (4) Honorable Mayor and City Council 9 January 31, 2003