CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY AND STRUCTURE

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Beryl Austin
5 years ago
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1 CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY AND STRUCTURE Purpose: One of the primary responsibilities of local governments is the creation and preservation of the community s physical infrastructure including such things as; roads and bridges; water, electric, wastewater and stormwater systems; public buildings; parks and open spaces; and, communication and information management systems. Because these require a significant commitment of public resources, planning for capital improvements is a matter of prudent financial management. The Capital Improvement Policy provides the general principles under which the Biwabik Capital Improvement Program (CIP) is developed and implemented. Definitions: Capital Improvement Program (CIP) - is a five year plan that identifies the City s prioritized investments in capital assets and corresponding financial plans. Capital Improvement is a planned activity that: creates, improves, maintains, repairs or replaces a fixed asset; results in a permanent addition to the City s asset inventory valued at $10,000 or greater; and, has a useful life of more than 5 years. Capital improvements usually involve, but not limited to, one of the following actions: Acquisition of property, equipment, or debt financed assets; Construction of new facilities; Fleet rolling stock and equipment; and/or Rehabilitation, reconstruction, renovation or upgrade of an existing asset to a condition that extends its useful life and/or increases its capacity. Additional examples are specified in the CIP Structure shown below. CIP Review Committee a Special Committee that will review and project requests, additions/changes to CIP, financial assumptions, organizational capacity to complete the requests, and project plans. The Review Committee will consist of: A Member of the Budget Committee A PUC Member The City Administrator (ex-officio) The City Engineer (ex-officio) Executive Director of the ERJPB (ex-officio)

2 Policy: Annually, the City Council on advice from the Budget Committee, PUC, and CIP Review Committee will adopt a 5-Year CIP. Prior to adopting the CIP the Council will hold a public hearing on the CIP in conjunction with the Budget Development and adoption process. The City Administrator will be responsible for coordinating and producing the annual CIP. Projects proposed for the CIP will be reviewed and prioritized by the CIP Review Committee, Budget Committee, and PUC before being forwarded to the Council for approval. The City Administrator will be responsible for maintaining and updating on a quarterly basis the adopted CIP and provide reports to the PUC and City Council. The CIP will be organized according to the STRUCTURE contained in this policy. The CIP document shall, at minimum provide the following details on each capital project: o Project description o Estimated cost o Sources of funding o Operating budget impact (optional) o Justification Projects considered for inclusion will be evaluated by the Criteria displayed in the Evaluation Criteria Section below. The City will work to establish reserves for future maintenance/replacements in a reserve account (segregated by fund and program). Upon adoption of the CIP, projects identified in Year-1 of the adopted CIP will be included in the proposed budget for Council and PUC approval. Mid-year amendments to the CIP will be treated as amendments to the City s adopted budget.

3 5 - YEAR CAPITAL IMPROVEMENT PROGRAM STRUCTURE CATEGORY INFRASTRUCTURE PROJECTS PUBLIC BUILDINGS, FACILITIES, AND EQUIPMENT PARTNERING PROJECTS, SPECIAL, AND CONSULTANT STUDIES CATEGORY ELEMENTS AND SPECIFICATION Street Projects Shouldering Projects Alley Projects Storm Sewer Projects Street Signing Street Lighting Water Main Lift and Booster Stations Sewer Project Water Treatment Plant Sewer Treatment Plant Electric Distribution Sidewalks Trails Public Parks Parking Areas Acquisition of Property Public Works/Public Utilities facilities and buildings City Hall Projects Public Safety Buildings Snow and Ice Equipment Fire and Ambulance Equipment Police Equipment General Maintenance Equipment Office Equipment Removal/Blight Program Projects undertaken with Town of White IRRRB funded Projects Feasibility Studies ERJPB Studies for Future Development Consultant Project Studies

4 Infrastructure Projects City of Biwabik Project: City-Wide Street and Utilities Reconstruction Project Year: Description of Project: The project would call for the renovation of approximately 8 miles of streets, alleys, and utilities. Justification for Project: The project addresses a wide variety of health, safety, and regulatory issues as detailed in the WORK PLAN approved by the City Council and Public Utilities Commission. The project is eligible and likely to bring in outside grant funding from other agencies. The project will drastically decrease future maintenance and repair costs. The project will facilitate a better environment for attracting economic development. Cost Source Total Prof. Services 2,4,5,7,9 $358,854 $865,500 $292,500 $120,000 $1,666,854 Construction 2,4,5,7,9 $1,920,057 $5,972,500 $2,027,880 $1,200,000 $11,420,437 Total $2,278,911 $6,838,000 $2,320,380 $1,320,000 $12,757,000 Revenue

5 Infrastructure Projects City of Biwabik Project: Biwabik Street Repair and Renovation including Voyageurs Retreat, Residence Club and Woodlands Project Year: Description of Project: The project would call for the repair and renovation of the streets and utilities in areas of the City that are not included in the City-Wide Reconstruction as well as two City of Biwabik subdivisions, The Voyageurs Retreat on the east side of Wynne and Sabin Lakes, and the Woodlands on the Northwest Side of Wynne Lake. Justification for Project: This project is an efficiency improvement project The project is intended to improve the level of service Cost Source Total Prof. Services 2,4,5,7 $4,700 $15,000 $15,000 $15,000 $15,000 $64,700 Construction 2,4,5,7 $150,000 $150,000 $150,000 $150,000 $600,000 Total $4,700 $158,850 $158,850 $158,850 $158,850 $664,700 Revenue

6 Partnering Projects, Special, and Consultant Studies Project: Main Street Renovation Project Year: Description of Project: The project would call for the renovation of the City-owned utilities and assets located within Main Street in conjunction with a scheduled State of MN Department of Transportation project. Justification for Project: This project is an efficiency improvement project The project is intended to improve the level of service Cost Source Unscheduled Total Prof. Services 2,4,5 $225,000 $180,000 $405,000 Construction 2,4,5 $1,500,000 $1,200,000 $2,700,000 Total $1,725,000 $1,380,000 $3,105,000

7 Project: Replacement of Fire Department Pumper Truck (Engine 2) Project Year: 2020 Description of Project: Replace Engine 2 with a current up to date engine Justification for Project: The current engine is nearly 30 years old. Newer models are both more effective and safer to operate. : The cost for a new Fire Engine is estimated at $700,000. We will pursue a Federal Grant that will pay for 95% of the truck and we will have to come up with 5%. Cost Source Total Vehicle Purchase 1 $35,000 $35,000 Vehicle Purchase 5 $665,000 $665,000 Total $700,000 $700,000 Revenue

8 Partnering Projects, Special, and Consultant Studies Project: Lift Station Repairs and Upgrades Project Year: Description of Project: The Public Utilities Commission directed the City Engineer to analyze each of the lift stations and prepare a report on repairs and improvements needed in the near future. S.E.H. Engineering provided a detailed analysis of the system along with cost estimates which provides the basis for this project. Justification for Project: This project provides needed repairs and upgrades as identified in a through engineering study. Cost Source Unscheduled Total Prof. Services 3,4,5,11 $25,000 $10,000 $35,000 Construction 3,4,5,11 $150,000 $150,000 $300,000 Total $175,000 $160,000 $335,000

9 Partnering Projects, Special, and Consultant Studies Project: Relocation of Emergency Services Building Project Year: 2021 Description of Project: This project would create a new building to house the equipment for the Biwabik Fire and Ambulance Department. Justification for Project: The Fire and Ambulance Department is currently housed in a 1960s era addition to the former City Hall building which was constructed in The building is undersized and is not energy efficient. A new building would provide adequate space and Cost Source Unscheduled Total Prof. Services 12 $50,000 $50,000 Construction 12 $750,000 $750,000 Total $800,000 $800, Public/Private Partnership

10 Partnering Projects, Special, and Consultant Studies Project: Demolition of Former City Building Project Year: 2022 Description of Project: This project would remove the former City Hall building located at rd Avenue North which currently houses the Biwabik Fire and Ambulance Department. Justification for Project: This building is undersized for the current use and the cost to Cost Source Total Prof. Services 1,5 $10,000 $10,000 Construction 1,5 $290,000 $290,000 Total $300,000 $300,000

11 Project: Replacing our current SCBA s, which will include pack, two bottles and a face piece Project Year: 2020 Description of Project: Replace our current SCBA S which are due to become expired as of August of 2020 Justification for Project: Age of equipment and can no longer hydro test our current air bottles as of Aug : Cost for a new equipment will cost around $124, We will try and receive a Grant that will pay for 95% of the equipment and we will have to come up with 5%. Cost Source Total 1 $6, $6, $118, $118, Total $124, $124,800.00

CIP. February,

CIP. February, 2018-2022 CIP February, 21 2017 Agenda Biennial Budget 2018/2019 Budget Calendar 2018-2022 CIP Process Prioritized List of Projects Biennial Budgeting Strategic Culture in Olathe Strategic Culture in Olathe