Section H. Capital Improvement Program. Table of Contents

Section H. Capital Improvement Program Table of Contents Introduction... H-1 Project Summary... H-13 Individual Project Sheets... H-21 Six-Year Fund Statements... H-129

Introduction Capital Improvement Program The two plans that make up the 2013-2014 Capital Improvement Program (CIP) the Capital Reinvestment Plan (CRP) and Capital Facilities Plan (CFP) have been developed according to the guidelines set forth in the CIP budget policy (see Section C) and the City s Comprehensive Plan. Each biennium, Council provides direction through its regular meetings, semi-annual planning discussions, and various budget policies. Adoption of comprehensive planning documents, including the Transportation Improvement Plan (TIP) in June 2012, the Pedestrian and Bicycle Facilities Plan in June 2010, the Park and Recreation Plan in February 2007, the Open Space Vegetation Plan in 2004, the Luther Burbank Park Master Plan in April 2006, the Ballfield Use Analysis in October 2007, the Water System Plan in July 2008, the General Sewer Plan in February 2003, and the Comprehensive (Storm) Basin Review in December 2006 give more specific project direction. In the case of the TIP, the Council approves the street and other related projects, which are then simply inserted into the capital budget. Staff has been developing the 2013-2018 CIP since March 2012. A preview of the proposed CIP was presented to Council in June 2012. Since then, staff has refined revenue and expenditure estimates and incorporated the direction provided by Council at the June CIP preview meeting. The capital budget is made up almost entirely of reinvestment projects (CRP) to maintain our existing infrastructure. The most significant reinvestments are for Residential Street Improvements ($1.2 million) and Luther Burbank Park Improvements ($0.9 million). The most significant capital facilities project is the construction of a new Fire Station 92 ($4.7 million excluding preliminary design). 2013-2014 Proposed CIP Table 1 compares planned spending for specific categories of projects in the 2013-2014 CIP with the actual costs of the 2009-2010 biennium and the forecasted costs of the 2011-2012 biennium. (Actual spending varies from budget due to factors such as permitting delays, bids which vary from project cost estimates and added projects.) Note that indirect overhead costs for CIP projects are not included in the following totals (for example, time spent by the City Attorney reviewing construction contracts). Table 1 Comparison of Proposed Budget by Project Category Project Category 2009-10 2011-12 2013-14 Actual Forecast Budget Parks, Recreation and Open Space $2,302,815 $2,402,036 $2,591,000 Streets, Pedestrian and Bicycle Facilities [1] $3,233,104 $4,876,552 $2,765,000 Buildings, Equipment and Technology [2] $3,951,421 $4,166,366 $8,475,000 Utilities [3] $25,039,586 $6,715,948 $5,869,000 $34,526,925 $18,160,902 $19,700,000 [1] Includes both ICW Resurfacing Phase 1 ($1.5M) and Town Center Signals ($1.0M) in 2011-2012. [2] Includes replacement of Fire Station 92 ($4.7M) in 2013-2014. [3] Includes Sewer Lake Line construction ($21.7M) in 2009-2010. City of Mercer Island 2013-2014 Budget H-1

Capital Improvement Financing Strategy Each biennial capital budget is part of a broader CIP financing plan that looks into the future to match capital reinvestment and capital facility needs with realistic financing strategies. (Please refer also to the CIP budget policy in Section C for additional detail.) Consistent with established budget policies and past Council financing strategies, CIP funding for the next two years relies heavily on existing, available fund balances and projected revenues from Real Estate Excise Taxes (REET), Fuel Taxes (State shared revenues), and Utility rates. The General Fund continues to be the sole source for capital investments in technology and equipment. Most revenues for capital projects come with restrictions. Utility rates may only be used for projects of the respective utility; fuel taxes may only be used for street and trail projects; and REET is reserved for capital projects to help develop a community s public infrastructure (e.g., parks, open space and streets). The City s capital financing strategy has been to use these restricted revenues on a pay as you go basis for needed improvements. This strategy remains unchanged, except for costly utility and public building projects for which debt financing is utilized to smooth utility rate spikes or to more equitably match the costs of the project to the benefit period. REET is the 0.5% tax paid by the seller in property transactions. State law restricts the use of REET for specific capital purposes. REET-1 (the 1 st quarter of 1% of the sales price) may be used for streets, parks, facilities, or utilities. REET-2 (the 2nd quarter of 1% of the sales price) may be used for streets, parks, or utilities, but may not be used for facilities. Neither REET-1 nor REET-2 may be used for equipment or technology. REET is the largest revenue source for the projects in the Street and Capital Improvement Funds. REET revenue can vary significantly from year to year as its base (property sales) is highly dependent on economic conditions and interest rates. As the Great Recession took root, REET revenues declined in 2008, then declined further in 2009 due to a significant drop in the number of home sales from 603 homes in 2004 to a low of 260 homes in 2008 and 267 homes in 2009. Average home prices also declined from a high of $1.24 million in 2008 to $854,000 a year later. REET has recovered slowly in 2010-2012, mostly due to lower home prices. It is anticipated that home sales will continue to recover, although at a moderate rate, in 2013 and 2014. Continuing the City s CIP financing strategy, REET-1 revenues are used to fund parks, open space, and public building maintenance projects and to pay the debt service on the Mercer View property and the Community Center. REET-2 revenues continue to be used for infrastructure needs, namely construction and maintenance of streets, pedestrian and bicycle facilities. Because they cannot rely upon REET revenues, expenditures for new vehicles, equipment, and technology come from general purpose revenue, reserve, or grant funding sources. An example is the purchase of Firefighting Equipment, including technical rescue tools, which is planned for this biennium. Consistent with their financial policies, utility capital improvements are funded from utility rates, primarily on a pay-as-you-go basis. Table 2 below shows an overview of the CIP financing strategy. H-2 City of Mercer Island 2013-2014 Budget

Table 2 - Capital Improvement Program Financing Strategy REET 1 REET 2 General Purpose Revenues Utilities Parks Streets Equipment Sanitary Sewer Construction Construction Vehicle Replacement Construction Maintenance Maintenance Public Safety Items Maintenance Open Space Pedestrian / Bike Facilities Technology Storm Water Property Acquisition Construction Computers Construction Planning Maintenance Software Maintenance Improvements Communications Water Public Buildings Construction Repair Maintenance Maintenance Planning and Design Real Estate Excise Tax (REET) Forecast The REET forecast for 2012-2018 was presented as part of the CIP Preview in June 2012. In September 2012, staff revised its 2012 REET forecast down to $1.78 million, which is $200,000 less than the March 2012 forecast. The revised forecast was based on a lower average sales price of $900,000 (down from the $925,000 forecast for the CIP Preview in June 2012). The number of forecast home sales (400) was unchanged for 2012. No change has been made to the REET forecast for 2013-2018. The REET forecast will be reviewed again for the final CIP budget review (in November). Historical home sales (2001-2011) equal to or less than $5.0 million and the forecasted number of home sales (2012-2018) are shown in the chart below. # Sales 700 Number of Home Sales = $5.0 Million 600 603 579 545 500 400 358 433 486 429 318 367 400 435 470 500 500 500 500 300 260 267 200 100-2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fcst 2013 Fcst 2014 Fcst 2015 Fcst 2016 Fcst 2017 Fcst 2018 Fcst City of Mercer Island 2013-2014 Budget H-3

Historical home sale prices (2001-2011) as well as forecasted home sale prices (2012-2018) are shown in the chart below. $ Millions Average Home Sale Price 1.40 1.20 1.00 0.80 0.60 0.64 0.69 0.74 0.80 0.90 0.96 1.07 1.24 0.85 0.99 0.92 0.90 0.97 1.02 1.06 1.11 1.17 1.23 0.40 0.20-2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fcst 2013 Fcst 2014 Fcst 2015 Fcst 2016 Fcst 2017 Fcst 2018 Fcst The historical trend for REET Revenue (shown in millions) as well as the forecast for REET used in developing the Preliminary Budget is presented in the chart below. Note that the spike in 2010 revenue reflects the sale of Shorewood Heights Apartments in September 2010, generating about $500,000 in REET. The spike in 2005 represents the sale of 4 commercial properties, which generated about $1.0 million in REET. $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $2.50 $1.51 $1.82 $3.71 $2.77 $2.93 $2.35 $2.21 $1.83 $1.98 $2.24 $2.78 $2.52 $2.91 $3.05 $3.19 $1.00 $1.17 $1.26 $0.50 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fcst 2013 Fcst 2014 Fcst 2015 Fcst 2016 Fcst 2017 Fcst 2018 Fcst H-4 City of Mercer Island 2013-2014 Budget

Fund Balance Trends The six-year capital plan draws down fund balances, with the Street Fund going negative beginning in 2016, the Water Fund going negative beginning in 2015, and the Sewer Fund temporarily going negative beginning in 2013. For the most part, this is a calculated risk to take advantage of a continuing favorable bid environment. Projected fund balances (shown in thousands), excluding reserves dedicated for specific purposes (e.g. all-weather field sinking fund in the Capital Improvement Fund), are presented in the following table for all CIP-related funds. 2012 2013 2014 2015 2016 2017 2018 Forecast Forecast Forecast Forecast Forecast Forecast Forecast Street Fund 1,440 767 1,398 593 (856) (1,232) (1,876) Capital Improvement Fund 1,474 1,454 1,290 537 479 124 (338) Technology and Equipment Fund 398 249 148 95 69 25 (77) Water Fund 2,183 1,836 1,356 (555) (980) (1,399) (1,498) Sewer Fund 456 (315) (37) (247) (2) (155) 45 Storm Water Fund 1,968 1,729 1,081 941 754 403 48 The available fund balance in the Street Fund is projected to be completely used in 2016, given the current REET revenue forecast and planned projects. To maintain the planned level of spending, new revenues, such as a Transportation Benefit District, will be needed. Planned capital reinvestment projects for 2013-2018 will draw the available Capital Improvement Fund balance into a negative position in 2018, given current revenue forecasts. While the available Technology and Equipment Fund balance is projected to decline during the 6 year plan, it is not projected to go negative until 2018. This is due to the MICEC Sinking Fund, which needs $200,000 in additional, one-time funding by 2016. Rates are generally set for the Water, Sewer, and Storm Water Funds at levels to support daily operations, routine maintenance, and capital reinvestment planned for the 6 year period (2013-2018). Available fund balances are used in conjunction with new revenues generated from rates and occasional debt proceeds to meet the funding needs of each utility. The Water Fund and Sewer Fund are projected to go negative in 2015 and 2013 respectively, because the Council directed staff to push two major capital projects out of the 2013-2014 biennium to the 2015-2016 biennium and to significantly reduce the Utility Board recommended water and sewer rate increases in 2013-2014. The reason that the fund balance of the Water Fund and the Sewer Fund is negatively impacted is that the two projects were not eliminated from the six year CIP, which was the primary driver of the Utility Board recommended water and sewer rates for 2013-2014. As a result, significant water and sewer rate increases will be needed beginning in 2015 or planned capital projects in 2015-2018 will need to be pushed out beyond 2018. See Section F (Utility Funds Summary) and Section I (Recap by Fund) for more details on fund balances. Project Management Project Management staff costs are built into the budget of each capital project. Of note for 2013-2014, one position (Storm Water Project Manager) has been a contract position since 2007, and has been converted to a regular FTE. For several positions (Information and Geographic Services (0.45 FTE), Facilities Team Member (0.17 FTE), Parks Maintenance (0.20 FTE) and Parks Arborist (0.10 FTE)), this budget recognizes time actually spent on projects and reduces time budgeted in the General Fund by almost a full position (0.92 FTE). Much of the time spent on capital projects by these positions was charged to projects in 2011-2012, but the full position was still shown in the General Fund budget. City of Mercer Island 2013-2014 Budget H-5

The time spent on project management was reduced slightly (0.05 FTE) for one position (Assistant City Engineer) to recognize time spent on transportation management and neighborhood traffic issues. Finally, two positions were increased by 0.25 FTE each (Parks Arborist and Natural Resources Specialist, which is a contracted position) to recognize additional CIP work. The increase was made by reducing a budgeted Parks Manager position in the General Fund which was vacant during 2011-2012, by 0.5 FTE. Historical (2007-2012) and planned (2013-2014) staffing levels are as follows: DEPARTMENT POSITION 2007 2008 2009 2010 2011 2012 2013 2014 Regular FTE's Development Services City Engineer 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 IGS Team Various - - - - - - 0.45 0.45 Maintenance Assistant City Engineer 1.00 1.00 0.60 0.60 0.60 0.60 0.55 0.55 Maintenance Street Engineer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maintenance Utilities Engineer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maintenance Storm Water Project Mgr - - - - - - 1.00 1.00 Maintenance Facilities Team Member 0.50 0.50 0.50 0.50 0.50 0.50 0.67 0.67 Parks & Recreation Parks Maintenance - - - - - - 0.20 0.20 Parks & Recreation Parks Arborist - - - - - - 0.35 0.35 Regular FTE 3.75 3.75 3.35 3.35 3.35 3.35 5.47 5.47 Ongoing Contract FTE's Maintenance Storm Water Project Mgr 1.00 1.00 0.75 0.75 0.75 1.00 - - Parks and Recreation Natural Resource Specialist - - 0.75 0.75 0.75 0.75 1.00 1.00 Contract FTE 1.00 1.00 1.50 1.50 1.50 1.75 1.00 1.00 TOTAL CIP FTE 4.75 4.75 4.85 4.85 4.85 5.10 6.47 6.47 In addition to the listed staffing, a small percentage of Finance, City Attorney s Office, Communications Coordinator, Maintenance Director, Parks and Recreation Director, and City Manager s Office support is provided to capital projects. Accordingly, their time is charged through a CIP Overhead Charge to the Capital Project Funds (Streets, Water, Sewer, Storm Water, and CIP) and credited back to the General Fund. Summary of Changes to Proposed CIP On June 18, 2012, the Council was given a preview of the proposed 2013-2018 CIP. At that meeting, the Council asked questions and voiced some concerns, but did not modify any projects. Changes made in response to Council comments were removal of the proposed Mercerdale Spray Park and addition of a mini-master planning process for Mercerdale Park and the Thrift Shop. Changes by staff included elimination of the Island Crest Park South Infield Synthetic Turf project (since grant funds were not awarded) and the EOC Incident Management project (to allow time for a regional plan to be developed). Two projects were postponed, City Hall bathroom remodel until 2015-2016 and Maintenance Management System update until 2015. Two project budgets were increased based on possible grant funding (Luther Burbank Shoreline Phase II and Calkins Point Street End). A timing correction was made to the Preservation IMS Curve project (this was shown in 2015 during the preview, but should have been shown in 2014). The Fire Station 92 Replacement cost estimate was adjusted based on preliminary design. Finally, refined cost estimates were made to eight other project budgets. Table 3 summarizes the changes made since the June preview for the 2013-2014 Preliminary Budget. H-6 City of Mercer Island 2013-2014 Budget

Table 3 Summary of Changes to the 2013-2014 Preview CIP in 000s June Prelim Project Preview Budget Change Notes Changes in Response to Council: Mercerdale Spray Park 375 - (375) Council not ready to move forward w/o a master plan Mercerdale Park & Thrift Shop Master Plan - 25 25 Council expressed need for a mini-master plan Council Changes 375 25 (350) Staff Changes: Luther Burbank Shoreline Phase II 315 350 35 Added design cost in 2013 funded with KCD Grant Island Crest Park S. Infield Synthetic Turf 338 - (338) Did not receive grant (funding for project) Small Parks, Street Ends 228 385 157 Add Calkins Landing project funded by Grant Preservation - IMS Curve - 100 100 Shown in 2015 in Preview - should have been 2014 City Hall Building Repairs 197 97 (100) Delay bathroom remodel to 2015-2016 Fleet Replacements 869 939 70 Refine cost estimates Mobile Asset Data Management 63 60 (3) Remove Utility elements / refine cost estimates Document Management 154 158 4 Refine cost estimates Financial System Upgrades 132 137 5 Refine cost estimates Server Software Updates 140 173 33 Refine cost estimates Permitting System Upgrades 24 30 6 Refine cost estimates Maintenance Management System 165 - (165) Postpone until 2015 EOC Incident Management 60 - (60) Remove - wait for regional plan Police in-car Video System 83 77 (6) Refine cost estimates Utility Billing System Upgrade 36 39 3 Refine cost estimates Fire Station 92 Replacement 4,590 4,703 113 Refine cost estimate based on preliminary design Staff Changes 7,394 7,248 (146) Plus All Other Projects 16,139 16,139 - No change TOTAL 23,908 23,412 (496) City of Mercer Island 2013-2014 Budget H-7

During the Council s review of the Preliminary Budget, additional modifications were made to the proposed CIP. Table 4 summarizes the changes directed by the Council and made by staff for the 2013-2014 Final Budget. Table 4 Summary of Changes to the 2013-2014 Preliminary CIP in 000s Prelim Final Project Budget Budget Change Notes Council Directed Changes: ICW Resurfacing Phase 2 1,178 100 (1,078) Pushed out because ICW water project was pushed out ICW & 85th Ave Water Sys Impvts 1,596 - (1,596) Pushed out to lower water rates EMW Sewer Replacement 500 - (500) Pushed out to lower sewer rates First Hill Drainage System Extension 425 - (425) Pushed out to lower storm water rates Thrift Shop/Mercerdale Site Planning 25 25 - Narrowed scope to focus on Thrift Shop & adjust funding Council Changes 3,724 125 (3,599) Staff Changes: South Fire Station Repairs 113 - (113) Not needed with passage of levy lid lift for S. Fire Station Staff Changes 113 - (113) Plus All Other Projects 19,575 19,575 - No change TOTAL 23,412 19,700 (3,712) Note that the following 2 projects have been pushed out of the 2013-2014 biennium, leaving significant negative fund balances in 2014-2018 in the Street and Water funds. The 6 year plans for these 2 funds will be revised during the first half of 2013 as part of the Transportation Planning process and Water System Plan development, potentially pushing out other projects from the later years of the 2013-2018 six year period. Island Crest Way Resurfacing Phase 2 This project is to resurface Island Crest Way (Merrimount Drive to SE 40th Street.). The project design is still scheduled for 2013-2014 ($100,000), but construction (just over $1.0 million) has been pushed out to 2016. ICW & 85 th Ave. Water System Improvements This project will replace 6-inch asbestos cement (AC) water mains with 8-inch ductile iron (DI) water mains. This project ($1.6 million) was planned for 2013, but has been pushed out to 2015. In order to make reduce Sewer rates in 2013-2014, the East Mercer Way (5600 block) Sewer Replacement project ($500,000) was postponed from 2014 to 2015. This change in turn resulted in the elimination of Sewer Lake Line Clean-Out work planned for 2015 ($500,000). The 6-year plan for Sewer reflects that the first Sewer Lake Line Clean-Out would be constructed in 2017 ($550,000). In order to make reduce Storm Water rates in 2013-2014, the First Hill Drainage System Extension project ($425,000) planned for 2013 was eliminated from the 2013-2018 capital plan. H-8 City of Mercer Island 2013-2014 Budget

Project Highlights Residential Streets The biennial allocation for residential overlays is $1.2 million, which includes both standard hot mix overlays and the use of cost effective chip seals. East Mercer Way Shoulders (Phase 8) This project would extend shoulder improvements on East Mercer Way south from the 6200 block to the 7400 block of East Mercer Way. Additional Phases of shoulder work (Phases 9 and 10) are anticipated in 2016 and 2018 also. Pedestrian and Bicycle Facilities A North-South bike route from Southeast 62nd Street south of Island Crest Park to Island Park Elementary will be installed in 2013. In addition, the Safe Routes to School program will continue at $100,000 of funding, and other small PBF Plan projects will be implemented ($45,000). Sewer Modernization of Pump Station 14 is planned for 2013 at an estimated cost of $375,000. The pump station is antiquated (parts are no longer available) and safety concerns exist about operating the station in compliance with current safety regulations. In addition, staff will continue to focus on telemetry improvements, pump station repairs and emergency generator replacements. An update to the 20-year capital plan in the General Sewer System Plan is scheduled for 2014. Storm Water In 2013-2014, the City will begin a program of installing two or three water quality treatment devices per year to reduce pollutants entering Lake Washington. The City will also undertake a systematic investigation to identify and remedy sources of dissolved copper and zinc in Basins 10 and 32b. The City plans to construct improvements for Sub-Basins 4, 6, and 27 at an estimated cost of $1.04 million. In addition, the City plans to undertake replacement of the aging/undersized portions of the East Seattle drainage system. Water The City will continue with its annual water main upsizing, pressure reducing valve, meter and hydrant replacement programs. Projects include system improvements and/or main replacements at Sandy Cove, Mercerwood Drive, and 88th Ave. and 86th Ave. An update to the Water System Plan is scheduled for 2014. Sustainability Investment Initial seed funding ($50,000) will be utilized to further the City s sustainability goals. Operation and maintenance savings from funded projects (i.e. reduced energy costs) will be tracked and re-invested in additional sustainability projects. Fire Station 92 A levy lid lift was approved by voters on November 6, 2012 to fund the replacement of Fire Station 92. Final design will be completed in 2013, and construction will be completed by early 2015. Thrift Shop Expansion Plan An analysis of Thrift Shop retail sales indicates that sales could be significantly increased if the Thrift Shop had additional physical space (remodel or expansion). The Thrift Shop experiences heavy use year round. In order to thoughtfully develop a proposed capital project that serves the needs of the Thrift Shop a plan is needed. Technology Technology projects for the biennium include completing computer equipment replacements and implementing necessary server software and financial system upgrades. City of Mercer Island 2013-2014 Budget H-9

Partially or Unfunded Capital Needs Reflected in the 6 Year Plan (2013-2018) Seven of the projects included in the proposed 2013-2018 CIP are only partially funded or unfunded. For three of the projects, full funding depends on receipt of a grant. Two of the projects are funded from sinking funds which are not fully funded to meet the planned expenditures for 2013-2018. The funding status for these projects is summarized in the table below. Funded Unfunded Cost Funding Source Project 2013 2018 2013 2018 Estimate for Unfunded Portion Island Crest Park Ballfield Lights Replacement 338,000 45,000 383,000 PSE or Energy Grant Luther Burbank Playground Replacement 303,000 25,000 328,000 Private Contributions Luther Burbank Shoreline Phase II 161,000 189,000 350,000 Grant Funding Small Parks, Street Ends (Calkins Landing) 1,238,000 307,000 1,545,000 KC Flood Control Grant MICEC Technology & Equipment 341,000 200,000 541,000 Sinking Fund not fully funded Fire Apparatus Replacements 415,000 1,083,000 1,498,000 Sinking Fund not fully funded s 2,796,000 1,849,000 4,645,000 Of particular note are the following projects: Luther Burbank Shoreline Phase II Calkins Point in Luther Burbank Park has suffered from significant erosion due to its close proximity to high boat traffic and wakes. A defined beach access and protected shoreline will address this erosion and preserve the park. King Conservation District funding will be applied to design work. Following design, staff will apply for grant funding for a portion of the construction costs. The Washington Recreation and Conservation Office (RCO) or Salmon Restoration Funding are possible grant sources. Small Parks, Street Ends (Calkins Landing) Improvements to the street end at Calkins Landing ($307K) are planned for 2014. This project includes repairs associated with the storm drain outfall at this location. Staff hopes to pay for construction with KC Flood Control District funding. MICEC Technology and Equipment A sinking fund was established in 2011-2012 using MICEC rental revenues. However, this will not fully fund the purchases planned for the 6 year period. An additional transfer of $200,000 will be needed by 2016 to fully fund planned equipment replacements in 2016-2018. Fire Apparatus Replacements The sinking fund balance is projected to go negative in 2016 even though the Fire Station and Fire Rescue Truck levy passed on November 6, 2012. As a result, there is not adequate funding for the planned replacement of one mini pumper in 2015 and one maxi pumper in 2017. To keep the sinking fund positive for the next 20 years (through 2032), $50,000 in annual funding is needed beginning in 2014. Not reflected in the 6 Year Plan (2013-2018) In addition to the projects planned above, there are significant capital improvements that are not included in the 2013-2018 plan and for which a funding source has not yet been determined. The following projects continue to be unfunded or partially funded: Luther Burbank Master Plan Implementation Design and construction costs to implement master plan improvements identified in the 2005-2006 planning process were estimated at $8.0 H-10 City of Mercer Island 2013-2014 Budget

million. Two master plan elements were addressed in 2007-2008 (Shoreline Restoration Phase I and Off-Leash Area Improvements) at a cost of $1.25 million. In November 2008, a $12.0 million parks bond levy to fund park capital improvements, including master plan elements for Luther Burbank Park, was put to a vote and failed. A new funding source for these improvements has not been identified. Open Space Acquisition (5-6 acres) This consists of one-time purchases of open space property as opportunities arise at a cost of approximately $2.0 million per acre. The preferred funding source identified is voted debt (20 years). REET-1 and other fund balances could also be used. Utility Projects there is a long list of Utility reinvestment projects (undersized water mains, sewer lake line clean-outs, aging sewer pipe, storm water basins, and conveyance pipe), which could be tackled at a faster pace with higher rate increases. Reader s Guide to the CIP The CIP section of the budget attempts to satisfy various interests, ranging from a high level overview to detailed specifics of each project planned for the upcoming biennium. The 2013-2018 CIP Project Summary provides the most succinct presentation of project costs, timing, and funding sources. In this summary, projects are organized by plan (CRP vs. CFP) first and then by project category: A. Parks, Recreation and Open Space B. Streets, Pedestrian and Bicycle Facilities C. General Government (Equipment, Public Buildings, and Technology) D. Sewer Utility E. Storm Water Utility F. Water Utility Readers who are interested in project details will want to focus on the Individual Project Sheets. The project sheets include a detailed project description, identifying the business need and existing conditions. Detailed expenditure information and revenue sources are described as well. Finally, an overview of each project s schedule is presented. On both the CIP Project Summary and Individual Project Sheets, revenues and expenditures are expressed in thousands of dollars, rounded to the nearest $1,000. For the long-range view, Six-Year Fund Statements show projects planned for future years (2013-2018) and the long-term funding plan. Understandably, predictions about projects in the last four years of the period are not as precise as for the projects the Council formally approves for implementation in 2013-2014. Six-year funding plans are presented for the following City Funds: 1. Street Fund 2. Capital Improvement Fund 3. Technology and Equipment Fund 4. Water Fund 5. Sewer Fund 6. Storm Water Fund City of Mercer Island 2013-2014 Budget H-11

H-12 City of Mercer Island 2013-2014 Budget

CAPITAL IMPROVEMENT PROGRAM Project Summary This section includes a listing of projects by Plan (Reinvestment or New Facilities) and a listing of projects by Functional Category.

H-14 City of Mercer Island 2013-2014 Budget

CIP Project Summary Capital Reinvestment Plan Parks, Recreation and Open Space Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 23 Open Space - Vegetation Management Open Space 378 410 421 509 524 539 555 2,958 2,106 0 0 0 0 0 0 0 852 0 0 24 Recurring Park Projects Parks Repairs and Maintenance 120 120 120 120 120 120 120 720 720 0 0 0 0 0 0 0 0 0 0 25 Luther Burbank Minor Park Improvements Parks Improvements 110 110 110 110 110 110 110 660 0 0 0 0 0 0 0 0 660 0 0 Funded - Modified 26 I-90 Lid Park Improvements Parks Repairs and Maintenance 0 0 0 0 0 285 158 443 443 0 0 0 0 0 0 0 0 0 0 27 South Mercer Playfields Park Improvements Parks Repairs and Maintenance 0 0 0 0 641 0 0 641 93 0 0 0 0 0 0 0 0 0 548 28 Mercer Island Community and Event Center Grounds Parks Repairs and Maintenance 0 0 0 17 0 50 0 67 50 0 0 0 17 0 0 0 0 0 0 Funded - New Project 29 Island Crest Park North Outfield Improvements Parks Improvements 0 97 0 0 0 0 0 97 97 0 0 0 0 0 0 0 0 0 0 Unfunded or Partially FundedModified 30 Small Parks, Street Ends and Other Improvements Parks Improvements 0 50 335 400 0 150 610 1,545 1,188 0 0 0 50 0 0 307 0 0 0 31 Island Crest Park Ballfield Lights Replacement Parks Repairs and Maintenance 0 0 0 383 0 0 0 383 338 0 0 0 0 0 0 45 0 0 0 Unfunded or Partially FundedNew Projec 32 Luther Burbank Playground Replacement Parks Improvements 0 328 0 0 0 0 0 328 0 0 0 0 303 0 25 0 0 0 0 33 Luther Burbank Shoreline Phase II Parks Improvements 0 35 315 0 0 0 0 350 161 0 0 0 0 0 0 189 0 0 0 Parks, Recreation and Open Space costs 608 1,150 1,301 1,539 1,395 1,254 1,553 8,192 Streets, Pedestrian and Bicycle Facilities Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 34 Arterial Preservation Program Annual Street Maintenance Program 70 80 80 70 70 70 70 440 0 440 0 0 0 0 0 0 0 0 0 35 Pavement Marking Replacement Annual Street Maintenance Program 35 45 47 49 51 53 55 300 0 300 0 0 0 0 0 0 0 0 0 36 Island Crest Way Resurfacing Phase 2 Arterial Street Improvements 0 50 50 0 1,078 0 0 1,178 0 1,178 0 0 0 0 0 0 0 0 0 Funded - Modified 37 Residential Street Overlays Annual Street Maintenance Program 471 690 496 746 537 807 581 3,857 0 3,857 0 0 0 0 0 0 0 0 0 38 Town Center Streets - South Town Center Street Reconstruction 0 0 0 172 215 0 0 387 0 387 0 0 0 0 0 0 0 0 0 39 Arterial Street Improvements (2015-2018) Arterial Street Improvements 0 0 0 698 400 620 1,484 3,202 0 3,202 0 0 0 0 0 0 0 0 0 40 Town Center Streets - North Town Center Street Reconstruction 0 95 0 433 0 0 0 528 0 528 0 0 0 0 0 0 0 0 0 41 Mercerwood Drive Arterial Street Improvements 0 255 0 0 0 0 0 255 0 255 0 0 0 0 0 0 0 0 0 Funded - New Project 42 Town Center - Crosswalk Needs Analysis Pedestrian and Bicycle Facilities 0 0 20 0 0 0 0 20 0 20 0 0 0 0 0 0 0 0 0 43 Mercer Ways Fog Line Pedestrian and Bicycle Facilities 0 50 0 0 0 0 0 50 0 50 0 0 0 0 0 0 0 0 0 44 Preservation - West Mercer Way (SE 24th to SE 28th) Arterial Street Improvements 0 100 0 0 0 0 0 100 0 100 0 0 0 0 0 0 0 0 0 45 Preservation - IMS Curve (SE 72nd and 84th Ave) Arterial Street Improvements 0 0 100 0 0 0 0 100 0 100 0 0 0 0 0 0 0 0 0 Streets, Pedestrian and Bicycle Facilities costs 576 1,365 793 2,168 2,351 1,550 2,190 10,417 City of Mercer Island 2013-2014 Budget H - 15

CIP Project Summary General Government Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 46 Computer Equipment Replacements Technology 70 240 207 181 168 168 168 1,132 0 0 0 0 0 1,132 0 0 0 0 0 47 High Accuracy Orthophotos Technology 45 0 0 25 0 0 26 51 0 0 0 51 0 0 0 0 0 0 0 48 Firefighting Equipment Small Technology/Equipment 35 33 29 36 25 32 30 185 0 0 0 185 0 0 0 0 0 0 0 49 Mobile Asset Data Collection Technology 0 60 0 0 0 0 60 120 0 120 0 0 0 0 0 0 0 0 0 50 Fuel Clean Up Other Equipment 75 77 79 0 0 0 0 156 0 0 0 0 0 0 0 0 0 0 156 51 Document Management Technology 65 79 79 79 79 79 79 474 0 0 0 474 0 0 0 0 0 0 0 Funded - Modified 52 City Hall Building Repairs Public Buildings 52 32 97 187 185 114 188 803 803 0 0 0 0 0 0 0 0 0 0 53 Maintenance Building Repairs Public Buildings 12 23 35 60 62 213 102 495 123 0 372 0 0 0 0 0 0 0 0 54 Thrift Shop Repairs Public Buildings 22 59 55 50 45 41 33 283 0 0 0 0 0 0 283 0 0 0 0 55 North Fire Station Repairs Public Buildings 54 40 58 66 58 68 63 353 353 0 0 0 0 0 0 0 0 0 0 56 South Fire Station Repairs Public Buildings 15 0 0 25 25 28 28 106 106 0 0 0 0 0 0 0 0 0 0 57 Luther Burbank Admin Building Repairs Public Buildings 48 138 103 149 41 40 36 507 507 0 0 0 0 0 0 0 0 0 0 58 Community Center Building Repairs Public Buildings 88 86 110 88 187 166 166 803 803 0 0 0 0 0 0 0 0 0 0 59 Website Redesign Technology 15 0 0 30 0 0 0 30 0 0 0 30 0 0 0 0 0 0 0 60 Financial System Upgrades Technology 0 70 67 10 0 30 0 177 0 0 35 142 0 0 0 0 0 0 0 61 Server Software Updates Technology 0 53 120 0 0 60 71 304 0 0 47 257 0 0 0 0 0 0 0 62 Permitting System Upgrades Technology 0 30 0 0 0 0 0 30 0 0 0 30 0 0 0 0 0 0 0 63 Maintenance Management System Technology 10 0 0 180 0 0 0 180 0 0 135 45 0 0 0 0 0 0 0 64 City Information via Web Based GIS Technology 0 0 0 0 30 0 0 30 0 0 0 30 0 0 0 0 0 0 0 65 Fleet Replacements Other Equipment 616 525 414 471 1,123 650 399 3,582 0 0 0 0 0 3,582 0 0 0 0 0 Funded - New Project 66 Self Contained Breathing Apparatus Replacement Other Equipment 0 0 0 0 0 0 306 306 0 0 0 306 0 0 0 0 0 0 0 67 Police In-Car Video System Replacement Technology 0 77 0 0 0 0 0 77 0 0 0 77 0 0 0 0 0 0 0 68 City Hall Camera System Update Small Technology/Equipment 0 0 9 0 0 0 0 9 0 0 0 9 0 0 0 0 0 0 0 69 Utility Billing System Upgrade Technology 0 0 39 0 0 0 0 39 0 0 39 0 0 0 0 0 0 0 0 Unfunded or Partially FundedNo Change 70 Fire Apparatus Replacements Other Equipment 630 415 0 338 0 745 0 1,498 0 0 0 0 0 0 0 0 0 1,498 0 Unfunded or Partially FundedModified 71 MICEC Technology & Equipment Replacement Small Technology/Equipment 31 40 69 56 146 82 148 541 0 0 0 541 0 0 0 0 0 0 0 General Government costs 1,883 2,077 1,570 2,031 2,174 2,516 1,903 12,271 Sewer Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 72 Sewer System Emergency Repairs Sewer System Rehabilitation 50 50 50 50 50 50 50 300 0 0 300 0 0 0 0 0 0 0 0 73 Sewer System Pump Station Repairs Sewer System Rehabilitation 55 60 60 65 65 65 65 380 0 0 380 0 0 0 0 0 0 0 0 74 East Mercer Way Sewer Replacement Sewer System Improvements 0 0 0 500 0 0 0 500 0 0 500 0 0 0 0 0 0 0 0 H - 16 City of Mercer Island 2013-2014 Budget

CIP Project Summary Sewer Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - Modified 75 General Sewer System Improvements Sewer System Improvements 515 0 0 350 400 400 400 1,550 0 0 1,550 0 0 0 0 0 0 0 0 76 Sanitary Sewer System Telemetry Sewer System Improvements 0 263 0 0 0 0 0 263 0 0 263 0 0 0 0 0 0 0 0 77 Sewer System Generator Replacement Sewer System Rehabilitation 137 95 0 0 160 0 170 425 0 0 425 0 0 0 0 0 0 0 0 Funded - New Project 78 Street Related Sewer CIP Projects Sewer System Improvements 0 50 50 50 50 50 50 300 0 0 300 0 0 0 0 0 0 0 0 79 Backyard Sewer System Improvements Sewer System Improvements 0 0 0 25 175 25 175 400 0 0 400 0 0 0 0 0 0 0 0 80 General Sewer Plan - 20 year Capital Plan Update Sewer System Improvements 0 15 35 0 0 0 0 50 0 0 50 0 0 0 0 0 0 0 0 81 Pump Station 14 Modernization Other Sewer System Projects 0 375 0 0 0 0 0 375 0 0 375 0 0 0 0 0 0 0 0 Sewer Utility costs 757 908 195 1,040 900 590 910 4,543 Storm Drainage Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 82 Neighborhood Spot Drainage Improvements Neighborhood Drainage Improvements 70 80 80 85 85 90 90 510 0 0 510 0 0 0 0 0 0 0 0 83 Watercourse Condition Assessments Watercourse Projects 25 10 25 15 25 15 25 115 0 0 115 0 0 0 0 0 0 0 0 84 Sub-Basin 4 Watercourse Stabilization Project Watercourse Projects 0 327 0 0 0 0 0 327 0 0 327 0 0 0 0 0 0 0 0 85 Sub-Basin 29.2 Watercourse Stabilization Project Watercourse Projects 0 0 10 103 0 0 0 113 0 0 113 0 0 0 0 0 0 0 0 Funded - Modified 86 Watercourse Stabilization Projects (2015-2018) Watercourse Projects 0 0 0 10 215 391 186 802 0 0 802 0 0 0 0 0 0 0 0 87 Drainage System Replacements (2015-2018) Other Storm Drainage System Projects 0 0 0 0 100 125 150 375 0 0 375 0 0 0 0 0 0 0 0 88 Minor Watercourse Improvements Watercourse Projects 0 144 52 0 0 0 0 196 0 0 196 0 0 0 0 0 0 0 0 89 Sub-Basin 27 Watercourse Stabilization Project Watercourse Projects 0 0 193 0 0 0 0 193 0 0 193 0 0 0 0 0 0 0 0 90 Sub-Basin 42 Watercourse Stabilization Project Watercourse Projects 0 0 15 303 0 0 0 318 0 0 318 0 0 0 0 0 0 0 0 91 East Seattle Drainage System Replacement Other Storm Drainage System Projects 0 40 220 0 0 0 0 260 0 0 260 0 0 0 0 0 0 0 0 Funded - New Project 92 Watercourse Minor Repairs/Maintenance Watercourse Projects 0 15 15 20 20 20 20 110 0 0 110 0 0 0 0 0 0 0 0 93 Sub-Basin 6 Ph. 2 Watercourse Stabilization Project Watercourse Projects 0 40 483 0 0 0 0 523 0 0 523 0 0 0 0 0 0 0 0 94 Drainage System Video Inspection Program Other Storm Drainage System Projects 0 60 30 0 0 0 0 90 0 0 90 0 0 0 0 0 0 0 0 95 Drainage System Emergency Repairs Other Storm Drainage System Projects 0 15 15 15 15 15 15 90 0 0 90 0 0 0 0 0 0 0 0 Storm Drainage Utility costs 95 731 1,138 551 460 656 486 4,022 Water Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 96 Water Model Updates/ Fire Flow Analysis Other Water System Projects 20 0 25 0 20 0 25 70 0 0 70 0 0 0 0 0 0 0 0 97 Water System Plan Update Other Water System Projects 0 70 60 0 0 0 0 130 0 0 130 0 0 0 0 0 0 0 0 98 Meter Replacement Program Other Water System Projects 40 45 45 45 45 50 50 280 0 0 280 0 0 0 0 0 0 0 0 99 88th Ave. & 86th Ave. Water System Improvements Undersized Main Replacement Program 0 131 619 0 0 0 0 750 0 0 750 0 0 0 0 0 0 0 0 City of Mercer Island 2013-2014 Budget H - 17

CIP Project Summary Water Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other 100 Mercerwood Neighborhood Water System Improvemts Water System Improvements 0 0 0 205 1,502 0 0 1,707 0 0 1,707 0 0 0 0 0 0 0 0 101 Street Related Water CIP Projects Water System Improvements 65 0 200 200 150 150 150 850 0 0 850 0 0 0 0 0 0 0 0 Funded - Modified 102 Hydrant Replacements Water System Improvements 60 60 0 80 0 85 0 225 0 0 225 0 0 0 0 0 0 0 0 103 Sandy Cove Water System Improvement Undersized Main Replacement Program 20 374 0 0 0 0 0 374 0 0 374 0 0 0 0 0 0 0 0 104 ICW & 85th Ave. Water System Improvements Water System Improvements 112 0 0 1,596 0 0 0 1,596 0 0 1,596 0 0 0 0 0 0 0 0 105 EMW 5400 to 6000 Block Watermain & PRV Stations Water System Improvements 0 0 0 0 0 188 1,102 1,290 0 0 1,290 0 0 0 0 0 0 0 0 106 Mercerwood Drive Water Main Replacement Undersized Main Replacement Program 0 442 0 0 0 0 0 442 0 0 442 0 0 0 0 0 0 0 0 107 Water Main Replacement - 93rd, 89th, & 90th Ave SE Undersized Main Replacement Program 0 0 166 971 0 0 0 1,137 0 0 1,137 0 0 0 0 0 0 0 0 108 Water System Components Replacement Water System Improvements 0 20 30 35 35 35 35 190 0 0 190 0 0 0 0 0 0 0 0 Funded - New Project 109 Madrona Crest West Addition Water Sys Improvements Undersized Main Replacement Program 0 0 0 0 228 1,728 0 1,956 0 0 1,956 0 0 0 0 0 0 0 0 110 3838 WMW Water System Improvements Undersized Main Replacement Program 0 0 0 0 0 0 497 497 0 0 497 0 0 0 0 0 0 0 0 111 83rd Ave off SE 40th St Water System Improvements Undersized Main Replacement Program 0 0 230 0 0 0 0 230 0 0 230 0 0 0 0 0 0 0 0 Water Utility costs 317 1,142 1,375 3,132 1,980 2,236 1,859 11,724 Capital Reinvestment Plan 4,236 7,373 6,372 10,461 9,260 8,802 8,901 51,169 H - 18 City of Mercer Island 2013-2014 Budget

CIP Project Summary Capital Facilities Plan Parks, Recreation and Open Space Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 112 Regional Trail Connections (KC Prop 2 Levy) Parks Improvements 73 80 60 0 0 0 0 140 0 0 0 0 0 0 0 0 0 0 140 Parks, Recreation and Open Space costs 73 80 60 0 0 0 0 140 Streets, Pedestrian and Bicycle Facilities Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 113 Pedestrian and Bicycle Facilities Plan Implementation Pedestrian and Bicycle Facilities 45 45 45 45 45 45 45 270 0 270 0 0 0 0 0 0 0 0 0 114 Safe Routes to School Pedestrian and Bicycle Facilities 0 100 0 100 0 100 0 300 0 300 0 0 0 0 0 0 0 0 0 Funded - Modified 115 East Mercer Way Roadside Shoulders, Phases 8-10 Pedestrian and Bicycle Facilities 0 332 0 0 372 306 0 1,010 0 1,010 0 0 0 0 0 0 0 0 0 Funded - New Project 116 North-South Bike Route near Island Crest Park Pedestrian and Bicycle Facilities 0 85 0 0 0 0 0 85 0 85 0 0 0 0 0 0 0 0 0 117 SE 53rd Place - New PBF Pedestrian and Bicycle Facilities 0 0 0 0 260 0 0 260 0 260 0 0 0 0 0 0 0 0 0 Streets, Pedestrian and Bicycle Facilities costs 45 562 45 145 677 451 45 1,925 General Government Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - No Changes 118 Small Technology/Equipment Items Small Technology/Equipment 50 25 25 25 25 25 25 150 0 0 0 150 0 0 0 0 0 0 0 Funded - New Project 119 Thrift Shop Expansion Plan Planning and Design 0 25 0 0 0 0 0 25 0 0 0 0 0 0 0 0 0 0 25 120 Sustainability Project Investment Public Buildings 0 50 0 0 0 0 0 50 0 0 0 50 0 0 0 0 0 0 0 Unfunded or Partially FundedNew Projec 121 Fire Station 92 Replacement Public Buildings 0 2,603 2,100 0 0 0 0 4,703 0 0 0 0 0 0 0 0 0 0 4,703 General Government costs 50 2,703 2,125 25 25 25 25 4,928 Sewer Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - New Project 122 Sewer Lake Line Clean-Outs Other Sewer System Projects 0 0 0 0 0 550 0 550 0 0 1,050 0 0 0 0 0 0 0 0 Sewer Utility costs 0 0 0 0 0 550 0 550 Storm Drainage Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - New Project 123 Basins 10 & 32b Dissolved Metals Source Identification Other Storm Drainage System Projects 0 40 40 0 0 0 0 80 0 0 80 0 0 0 0 0 0 0 0 124 Water Quality Treatment Improvements Other Storm Drainage System Projects 0 75 75 75 0 75 0 300 0 0 300 0 0 0 0 0 0 0 0 City of Mercer Island 2013-2014 Budget H - 19

CIP Project Summary Storm Drainage Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other 125 Basin 32b Stormwater Treatment Improvements Other Storm Drainage System Projects 0 0 0 20 125 20 125 290 0 0 290 0 0 0 0 0 0 0 0 126 Street Related Drainage Improvements Other Storm Drainage System Projects 0 75 75 80 80 80 80 470 0 0 470 0 0 0 0 0 0 0 0 127 Drainage System Extensions (2015-2018) Other Storm Drainage System Projects 0 0 0 0 100 0 100 200 0 0 200 0 0 0 0 0 0 0 0 Storm Drainage Utility costs 0 190 190 175 305 175 305 1,340 Water Utility Project Costs Source of Funds Project 2012 2013 2014 2015 2016 2017 2018 REET Street Utilities General Beautif Fees Contrib's Grants Levy Debt Other Funded - New Project 128 New Pressure Reducing Valve (PRV) Station Installatio Other Water System Projects 0 0 0 0 0 0 250 250 0 0 250 0 0 0 0 0 0 0 0 Water Utility costs 0 0 0 0 0 0 250 250 Capital Facilities Plan 168 3,535 2,420 345 1,007 1,201 625 9,133 Grand 4,404 10,908 8,792 10,806 10,267 10,003 9,526 60,302 H - 20 City of Mercer Island 2013-2014 Budget

CAPITAL IMPROVEMENT PROGRAM Individual Project Sheets

H-22 City of Mercer Island 2013-2014 Budget

Open Space - Vegetation Management Project Manager: P. West Approved ID: WP122R Exp (thousands): $ 2,958 Project : Provide vegetation management and minor trail improvements in existing open space areas consistent with the 2004 Open Space Vegetation Plan and Pioneer Park Forest Management Plan (updated in 2009). Revenues and expeditures reflect the 2008 Parks Levy which contributes $142,000 each year for these programs. Meet Plan's goals for removal of invasive species and restoration of parks and open spaces; improve recreation; address tree liabilities. Forty-three percent (43%) of open space is heavily invaded by non-native plants that will cause loss of the forest. Tree canopy is declining in certain areas because of competition from invasive plants, root disease and normal attrition. Prior Council Review: AB 3818, AB 3922, AB 4053, AB 4173, AB 4399, AB 4611 2012 2013 2014 2015 2016 2017 2018 Parks Repairs 268 350 359 444 457 469 482 2,561 Project Management 110 60 62 65 67 70 73 397 378 410 421 509 524 539 555 2,958 2012 2013 2014 2015 2016 2017 2018 Levy 142 142 142 142 142 142 142 852 REET 1 236 268 279 367 382 397 413 2,106 Staff Responsible: Paul West Start Date: 01/03/2013 End Date: 12/31/2014 Labor Hours: 2,400 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 23

Recurring Park Projects Project Manager: J. Kintner Approved ID: WP720R Exp (thousands): $ 720 Project : Construct kiosks, replace signage, perform emergency repairs, purchase park furnishings, trail improvements, building and other repairs to City parks. Park infrastructure must be maintained to ensure safety and functionality. On a recurring basis equipment, facilities and amenities must be repaired or replaced as they reach the end of their useful lifecycle. Prior Council Review: 2009-2010 Budget; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Parks Repairs 110 110 110 110 110 110 110 660 Project Management 10 10 10 10 10 10 10 60 120 120 120 120 120 120 120 720 2012 2013 2014 2015 2016 2017 2018 REET 1 120 120 120 120 120 120 120 720 Staff Responsible: Parks Maintenance Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 270 Public Involvement: Not Applicable H - 24 City of Mercer Island 2013-2014 Budget

Luther Burbank Minor Park Improvements Project Manager: J. Kintner Approved ID: XP710R Exp (thousands): $ 660 Project : Repairs and minor improvements to Luther Burbank Park infrastructure, equipment and amenities consistent with the 2008 Parks Levy, and the 2006 Luther Burbank Park Master Plan. Plan for improvements to Amphitheatre. On a recurring basis, equipment, facilities and amenities must be repaired or replaced as they reach the end of their useful lifecycle. Roads, sports courts, turf areas, restrooms, off-leash area, facilities, parking lots, trails and shoreline have suffered from extended deferred maintenance. These areas need ongoing minor repair. Prior Council Review: AB 3796 (9/2/03); 2009-2010 Budget; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Parks Repairs 100 100 100 100 100 100 100 600 Project Management 10 10 10 10 10 10 10 60 110 110 110 110 110 110 110 660 2012 2013 2014 2015 2016 2017 2018 Levy 110 110 110 110 110 110 110 660 Staff Responsible: Jason Kintner Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 200 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 25

I-90 Lid Park Improvements Project Manager: J. Kintner Approved ID: WP701R Exp (thousands): $ 443 Project : Bike/Pedestrian trail repair and overlay at high use areas along the Lid Park corridor. Design Sculpture Park improvements in conjunction with Sound Transit construction. High use areas along the Lid corridor need to be repaired and overlayed to meet increasing demands. Areas of the Lid corridor are in need of repair and overlay to support the different user groups. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 0 265 150 415 Design Services 0 0 0 0 0 15 0 15 Project Management 0 0 0 0 0 5 8 13 0 0 0 0 0 285 158 443 2012 2013 2014 2015 2016 2017 2018 REET 1 0 0 0 0 0 285 158 443 Staff Responsible: Jason Kintner Start Date: 02/01/2017 End Date: 12/31/2018 Labor Hours: 150 Public Involvement: As Needed H - 26 City of Mercer Island 2013-2014 Budget

South Mercer Playfields Park Improvements Project Manager: J. Kintner Approved ID: Exp (thousands): $ 641 Project : IMS (Islander Middle School) synthetic turf replacement. Playground equipment replacement. IMS turf will be at the end of it's warranty in 2015. Playground Equipment is at the end of its useful life cycle. IMS synthetic turf will be at the end of it's warranty in 2015. Non compliant playground equipment needs replacing. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 604 0 0 604 Project Management 0 0 0 0 37 0 0 37 0 0 0 0 641 0 0 641 2012 2013 2014 2015 2016 2017 2018 Other - Reserves 0 0 0 0 548 0 0 548 REET 1 0 0 0 0 93 0 0 93 Staff Responsible: Jason Kintner Start Date: 01/01/2016 End Date: 12/31/2016 Labor Hours: 150 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 27

Mercer Island Community and Event Center Grounds Project Manager: J. Kintner Approved ID: Exp (thousands): $67 Project : Develop a Master Plan for the MICEC site and construct a fence along the west property boundary. Develop a guiding document for future MICEC site improvements. Address security and inconsistent fencing border to the west. The property lacks a cohesive community vision for future site developments and inconsistent border along the west property boundary. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Other 0 0 0 17 0 0 0 17 Parks Repairs 0 0 0 0 0 50 0 50 0 0 0 17 0 50 0 67 2012 2013 2014 2015 2016 2017 2018 Beautification 0 0 0 17 0 0 0 17 REET 1 0 0 0 0 0 50 0 50 Staff Responsible: J. Kintner Start Date: 03/01/2015 End Date: 12/14/2015 Labor Hours: 100 Public Involvement: Combination H - 28 City of Mercer Island 2013-2014 Budget

Island Crest Park North Outfield Improvements Project Manager: J. Kintner Approved ID: WP301R Exp (thousands): $97 Project : Extensive natural turf rehabilitation on the North outfield at Island Crest Park. Extensive turf rehabilitation is needed to support underground drainage and improve playability. "Organic layer" prevents field drainage from performing properly. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 87 0 0 0 0 0 87 Project Management 0 10 0 0 0 0 0 10 0 97 0 0 0 0 0 97 2012 2013 2014 2015 2016 2017 2018 REET 1 0 97 0 0 0 0 0 97 Staff Responsible: J. Kintner Start Date: 01/01/2013 End Date: 06/30/2013 Labor Hours: 100 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 29

Small Parks, Street Ends and Other Improvements Project Manager: J. Kintner Approved ID: WP310C Exp (thousands): $ 1,545 Project : Develop and publish the Parks & Recreation 6-Year Plan. Design and construct street end improvements. Plan for improvements to Groveland Beach. Replace playground equipment at the end of its useful life cycle and install Healthy Living Wellness equipment within the parks system. An updated Parks & Recreation Plan is REQUIRED in 2013 to be eligible to apply for GRANTS. Plan for improvements to deteriorating facilities and address hardened bulkheads to improve recreation and habitat. The current Parks & Recreation plan expires in 2012. Worn and outdated equipment which requires repair and improvements. Hardened bulkheads at street ends to be improved for recreation and habitat. Healthy Living Wellness Equipment currently does not exist. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 270 334 0 120 500 1,224 Design Services 0 27 37 38 0 20 50 172 Project Management 0 23 28 28 0 10 60 149 0 50 335 400 0 150 610 1,545 2012 2013 2014 2015 2016 2017 2018 Beautification 0 50 0 0 0 0 0 50 Grant 0 0 307 0 0 0 0 307 REET 1 0 0 28 400 0 150 610 1,188 Staff Responsible: Jason Kintner Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 570 Public Involvement: As Needed H - 30 City of Mercer Island 2013-2014 Budget

Island Crest Park Ballfield Lights Replacement Project Manager: J. Kintner Approved ID: Exp (thousands): $ 383 Project : Replace the field lights at Island Crest Park, possible grant funding from Puget Sound Energy for lighting components. Island Crest Park supports baseball, football and soccer under lights. Upgrading the existing 27 year old system will provide for reduced energy consumption and less impact to park neighbors from light 'spillage'. A 2005 consultants report recommended "Replacement of the sports lighting, controls and underground distribution with a new system that features steel poles, more user-friendly controls and neighbor-friendly luminaires...within five years." Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 318 0 0 0 318 Design Services 0 0 0 15 0 0 0 15 Project Management 0 0 0 50 0 0 0 50 0 0 0 383 0 0 0 383 2012 2013 2014 2015 2016 2017 2018 Grant 0 0 0 45 0 0 0 45 REET 1 0 0 0 338 0 0 0 338 Staff Responsible: Jason Kintner Start Date: 01/15/2015 End Date: 12/31/2015 Labor Hours: 600 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 31

Luther Burbank Playground Replacement Project Manager: J. Kintner Approved ID: WP302R Exp (thousands): $ 328 Project : Replace playground equipment that is at the end of its useful life cycle and make improvements to meet existing demand at the park. Playground equipment is at the end of its useful life cyle. Playground equipment no longer in compliance with American Society for Testing Standards (ASTM) and Consumer Product Safety Commission (CPSC) guidelines. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 275 0 0 0 0 0 275 Design Services 0 30 0 0 0 0 0 30 Project Management 0 23 0 0 0 0 0 23 0 328 0 0 0 0 0 328 2012 2013 2014 2015 2016 2017 2018 Beautification 0 303 0 0 0 0 0 303 Private Contributions 0 25 0 0 0 0 0 25 Staff Responsible: J. Kintner Start Date: 01/31/2013 End Date: 04/01/2014 Labor Hours: 300 Public Involvement: Various H - 32 City of Mercer Island 2013-2014 Budget

Luther Burbank Shoreline Phase II Project Manager: J. Kintner Approved ID: WP303R Exp (thousands): $ 350 Project : Phase II of the LBP shoreline restoration will include a defined beach access at Calkins Point while taking protective measures to preserve the shoreline and park property. Calkins Point in Luther Burbank Park has suffered from significant erosion due to its close proximity to high boat traffic and wakes. A defined beach access and protected shoreline will address this erosion and preserve the park. Due to its location and proximity to boat traffic, Calkins Point has suffered from significant erosion. Prior Council Review: AB 3796 (9/2/03) 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 251 0 0 0 0 251 Design Services 0 25 36 0 0 0 0 61 Project Management 0 10 28 0 0 0 0 38 0 35 315 0 0 0 0 350 2012 2013 2014 2015 2016 2017 2018 Grant 0 35 154 0 0 0 0 189 REET 1 0 0 161 0 0 0 0 161 Staff Responsible: J. Kintner Start Date: 04/01/2013 End Date: 12/31/2014 Labor Hours: 450 Public Involvement: Various City of Mercer Island 2013-2014 Budget H - 33

Arterial Preservation Program Project Manager: C. Morris Approved ID: WR110R Exp (thousands): $ 440 Project : This program repairs distressed and failing pavement segments of arterial streets to extend their service lives. Repairs include square cut patching and crack sealing. Arterial streets develop localized pavement failures that need permanent repair. Some of the Island's arterial streets have developed segments of pavement fatigue and failure that need to be repaired. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 65 75 75 65 65 65 65 410 Project Management 5 5 5 5 5 5 5 30 70 80 80 70 70 70 70 440 2012 2013 2014 2015 2016 2017 2018 Street Fund 70 80 80 70 70 70 70 440 Staff Responsible: C. Morris Start Date: 02/01/2013 End Date: 10/31/2014 Labor Hours: 600 Public Involvement: As Needed H - 34 City of Mercer Island 2013-2014 Budget

Pavement Marking Replacement Project Manager: B. Sansbury Approved ID: WR111R Exp (thousands): $ 300 Project : Replacing worn or missing street markings such as crosswalks, stop bars, arrows, RPM's (buttons) and other forms of delineators. To provide guidance and information to the road user while meeting the standards set forth in the Manual on Uniform Traffic Control Devices (MUTCD). Overall conditions are satisfactory. On-going maintenance is needed to maintain visibility of street markings. Prior Council Review: 2013-2018 Transportation Improvement Program, 2009-2010 Budget 2012 2013 2014 2015 2016 2017 Construction 35 45 47 49 51 53 55 300 2018 35 45 47 49 51 53 55 300 2012 2013 2014 2015 2016 2017 2018 Street Fund 35 45 47 49 51 53 55 300 Staff Responsible: B. Sansbury Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 25 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 35

Island Crest Way Resurfacing Phase 2 Project Manager: C. Morris Approved ID: WR120S Exp (thousands): $ 1,178 Project : This project will complete design for repair and resurface the existing asphalt roadway from Merrimount Drive to SE 40th Street. Existing pedestrian facilities will be repaired and upgraded as needed. Island Crest Way is the City's main arterial, serving the entire Island. This portion of roadway is nearing the end of its pavement life and will need resurfacing. This four-lane portion of Island Crest Way was last resurfaced in 1991. It is currently showing pavement fatigue. Phase 1 resurfacing work from SE 53rd Street to Merrimount Drive was performed in 2012. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 1,078 0 0 1,078 Design Services 0 40 40 0 0 0 0 80 Project Management 0 10 10 0 0 0 0 20 0 50 50 0 1,078 0 0 1,178 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 50 50 0 1,078 0 0 1,178 Staff Responsible: C. Morris Start Date: 08/01/2013 End Date: 10/01/2014 Labor Hours: 900 Public Involvement: As Needed H - 36 City of Mercer Island 2013-2014 Budget

Residential Street Overlays Project Manager: C. Morris Approved ID: WR101R Exp (thousands): $ 3,857 Project : This annual program repairs and resurfaces public residential streets on the Island through hot mix asphalt overlays. Chip sealing has been added to this program after a pilot project in 2011. The program also includes upgrades to substandard residential streets, at the rate of about one per year. Many of the Island's residential street pavements are 25 to 35 years old. Numerous streets are in need of repair and resurfacing. A pavement condition index (PCI) is used to track the condition of streets and helps determine which segments of the 52 miles are most in need of repair. Current planning allows for a 35 year life cycle for residential hot mix asphalt pavements. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 371 557 400 604 433 651 470 3,115 Design Services 50 69 50 74 54 81 58 386 Project Management 50 64 46 68 50 75 53 356 471 690 496 746 537 807 581 3,857 2012 2013 2014 2015 2016 2017 2018 Street Fund 471 690 496 746 537 807 581 3,857 Staff Responsible: C. Morris Start Date: 01/01/2013 End Date: 10/31/2014 Labor Hours: 3,000 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 37

Town Center Streets - South Project Manager: C. Morris Approved ID: Exp (thousands): $ 387 Project : Repair and resurfacing of several streets in the southern part of the Town Center, including 80th Avenue (SE 28th to SE 32nd St) and portions of SE 29th and SE 32nd Streets. Work will include a slurry seal of the pavement, minor curb repairs, and sidewalk repairs. Project construction is proposed to be split in 2015 and 2016. These arterial streets are nearing the end of their pavement life and will need resurfacing. Arterial streets are currently resurfaced on a 20 to 25 year life cycle. These streets are reaching the end of their useful life and are in need of resurfacing and rehabilitation. These roadways were last resurfaced in the mid 1980's. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 142 183 0 0 325 Design Services 0 0 0 15 16 0 0 31 Project Management 0 0 0 15 16 0 0 31 0 0 0 172 215 0 0 387 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 0 0 172 215 0 0 387 Staff Responsible: C. Morris Start Date: 02/01/2015 End Date: 10/01/2015 Labor Hours: 250 Public Involvement: Combination H - 38 City of Mercer Island 2013-2014 Budget

Arterial Street Improvements (2015-2018) Project Manager: C. Morris Approved ID: Exp (thousands): $ 3,202 Project : Repair and resurfacing of existing arterial streets that have reached the end of their pavement life. Roadways planned for these future years include portions of SE 40th Street (2015), SE 53rd Place (2016), East Mercer Way (2017 and 2018), and the northernmost portion of Island Crest Way (2018). Some arterial streets are approaching the end of their pavement life and will need resurfacing. Arterial streets are the primary segments of the City's transportation network. As sections of arterials wear and age, they need resurfacing. The Island's arterial pavements are planned to last 20 to 25 years. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 558 320 496 1,224 2,598 Design Services 0 0 0 70 40 62 140 312 Project Management 0 0 0 70 40 62 120 292 0 0 0 698 400 620 1,484 3,202 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 0 0 698 400 620 1,484 3,202 Staff Responsible: C. Morris Start Date: 01/01/2015 End Date: 10/01/2016 Labor Hours: 2,500 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 39

Town Center Streets - North Project Manager: C. Morris Approved ID: WR321R Exp (thousands): $ 528 Project : Repair and resurfacing of several streets in the northern part of the Town Center impacted by development projects and pavement fatigue, including SE 27th Street and portions of 76th, 78th, and 80th Avenues. Work will consist of grinding and hot mix asphalt overlay of existing roadways. construction is split in 2013 and 2015. The Town Center has experienced a surge of redevelopment in recent years. There is an expectation for streets in the Town Center to be well constructed and of good quality. The streets in the north end of the Town Center are showing signs of age and wear. Additionally, these street segments have numerous utility cuts resulting from multiple redevelopment projects. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 75 0 347 0 0 0 422 Design Services 0 10 0 43 0 0 0 53 Project Management 0 10 0 43 0 0 0 53 0 95 0 433 0 0 0 528 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 95 0 433 0 0 0 528 Staff Responsible: C. Morris Start Date: 01/01/2013 End Date: 10/01/2013 Labor Hours: 250 Public Involvement: As Needed H - 40 City of Mercer Island 2013-2014 Budget

Mercerwood Drive Project Manager: C. Morris Approved ID: WR323R Exp (thousands): $ 255 Project : This project will resurface Mercerwood Drive from Gallagher Hill Road to East Mercer Way with a chip seal over the full width of the roadway. Mercerwood Drive's pavement is over 25 years old and will need resurfacing in the near future. Chip sealing is a cost effective method to extend this road's life for another 8 to 10 years. Mercerwood Drive was last repaved in the mid 1980's. It has significant pavement cracking and has been crack sealed twice in recent years. This asphalt pavement is reaching the end of its life. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 205 0 0 0 0 0 205 Design Services 0 25 0 0 0 0 0 25 Project Management 0 25 0 0 0 0 0 25 0 255 0 0 0 0 0 255 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 255 0 0 0 0 0 255 Staff Responsible: C. Morris Start Date: 02/01/2013 End Date: 09/01/2013 Labor Hours: 250 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 41

Town Center - Crosswalk Needs Analysis Project Manager: A. Tonella-Howe Approved ID: WR322R Exp (thousands): $20 Project : Develop a pedestrian circulation plan for the Town Center, identifying walking routes and crossing locations including wayfinding signing and treatment options for mid-block crossings. The Town Center has experienced a surge of redevelopment in recent years. Goal 3 of the PBF Plan supports enhanced and improved pedestrian circulation within the Town Center Redevelopment in the Town Center has created a need for a pedestrian circulation plan that includes wayfinding signage and identified mid-block crossing locations. Prior Council Review: 2013-2018 TIP 2012 2013 2014 2015 2016 2017 2018 Other 0 0 18 0 0 0 0 18 Project Management 0 0 2 0 0 0 0 2 0 0 20 0 0 0 0 20 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 0 20 0 0 0 0 20 Staff Responsible: A. Tonella-Howe Start Date: 01/02/2014 End Date: 12/31/2014 Labor Hours: 35 Public Involvement: As Needed H - 42 City of Mercer Island 2013-2014 Budget

Mercer Ways Fog Line Project Manager: B. Sansbury Approved ID: WR140G Exp (thousands): $50 Project : Remove fogline buttons delineating the shoulder area on the Mercer Way's and replace with 4-inch stripe Removal of the fogline buttons supports the PBF Plan and enhances the shoulder use for bicyclists Fogline buttons delineate the shoulder area on the Mercer Way's Prior Council Review: 2013-2018 TIP 2012 2013 2014 2015 2016 2017 Construction 0 50 0 0 0 0 0 50 2018 0 50 0 0 0 0 0 50 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 50 0 0 0 0 0 50 Staff Responsible: B. Sansbury Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 2 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 43

Preservation - West Mercer Way (SE 24th to SE 28th) Project Manager: C. Morris Approved ID: WR110V Exp (thousands): $ 100 Project : This project will resurface West Mercer Way from SE 24th to SE 28th Streets at its current width. Work will consist of grinding and a hot mix asphalt overlay. This arterial's pavement has reached the end of its useful life and needs to be resurfaced. This roadway recieved a thin HMA overlay in 1994 by WSDOT. This pavement is beginning to fail and has been patched several times. Prior Council Review: 2013-2018 Transportation Imporvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 80 0 0 0 0 0 80 Design Services 0 10 0 0 0 0 0 10 Project Management 0 10 0 0 0 0 0 10 0 100 0 0 0 0 0 100 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 100 0 0 0 0 0 100 Staff Responsible: C. Morris Start Date: 06/01/2012 End Date: 09/01/2013 Labor Hours: 100 Public Involvement: As Needed H - 44 City of Mercer Island 2013-2014 Budget

Preservation - IMS Curve (SE 72nd and 84th Ave) Project Manager: C. Morris Approved ID: WR110X Exp (thousands): $ 100 Project : This project will resurface the SE 72nd Street/84th Avenue curve near Islander Middle School from 82nd Avenue to SE 71st Street. Work will consist of grinding and hot mix asphalt overlay of the existing roadway. This roadway segment provides bus access to and from Islander Middle School and Lakeridge Elementary School. This asphalt pavement is nearing the end of its life and will need resurfacing. This roadway was last resurfaced in 1998 and has developed extensive pavement cracking. This area was crack sealed in 2011. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 80 0 0 0 0 80 Design Services 0 0 10 0 0 0 0 10 Project Management 0 0 10 0 0 0 0 10 0 0 100 0 0 0 0 100 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 0 100 0 0 0 0 100 Staff Responsible: C. Morris Start Date: 06/01/2015 End Date: 09/01/2015 Labor Hours: 150 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 45

Computer Equipment Replacements Project Manager: M. Kaser Approved ID: WG110T Exp (thousands): $ 1,132 Project : Scheduled replacement of desktop computers, printers and associated equipment. Routine replacement of outdated desktop computers and associated equipment. Departments schedule replacement of desktop computers (generally every 4 years) and contribute a predetermined amount to the Computer Equipment Replacement Fund. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 70 240 207 181 168 168 168 1,132 2018 70 240 207 181 168 168 168 1,132 2012 2013 2014 2015 2016 2017 2018 Dept Fees 70 240 207 181 168 168 168 1,132 Staff Responsible: IGS Team Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 1,064 Public Involvement: Not Applicable H - 46 City of Mercer Island 2013-2014 Budget

High Accuracy Orthophotos Project Manager: M. Kaser Approved ID: WG920T Exp (thousands): $51 Project : High resolution aerial photography that supports the maintenance of GIS layers for above ground features and infrastructure such as roadways, property and building information, and utilities. High accuracy digital orthophotography is the primary low cost tool to obtain an "on the ground" picture of island-wide property and infrastructure changes from which accurate measurements and analysis can occur. New photography is required periodically to capture changes over time. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Technology & Equipment Acquisition 45 0 0 25 0 0 26 51 45 0 0 25 0 0 26 51 2012 2013 2014 2015 2016 2017 2018 General Fund 45 0 0 25 0 0 26 51 Staff Responsible: Mike Kaser Start Date: 01/01/2015 End Date: 12/01/2015 Labor Hours: 120 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 47

Firefighting Equipment Project Manager: S. Heitman Approved ID: WG131E Exp (thousands): $ 185 Project : Replacement of firefighting equipment and continued work on our pre-fire drawing program (shown in map pictured below). Provide the fire department with safe and dependable equipment, and increase the safety of firefighters when they respond to calls from Mercer Island businesses. 4" supply hose has reached the end of its useful life. Development of pre-fire information for emergency responses has lagged behing other Fire Districts. Prior Council Review: 2007-2008 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 35 33 29 36 25 32 30 185 2018 35 33 29 36 25 32 30 185 2012 2013 2014 2015 2016 2017 2018 General Fund 35 33 29 36 25 32 30 185 Staff Responsible: Steve Heitman Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 155 Public Involvement: Not Applicable H - 48 City of Mercer Island 2013-2014 Budget

Mobile Asset Data Collection Project Manager: M. Kaser Approved ID: WG922T Exp (thousands): $ 120 Project : A camera system mounted on a van is used to collect video images of infrastructure elements visible from a public right of way. Geographic elements will be imported into the City's GIS database and maintenance management system for planning of infrastructure maintenance. Users will be able to view and measure items through the City's online mapping system. Collecting information about assets such as pavement condition is a normal component of City operations and asset and infrastructure maintenance. As part of ongoing maintenance of critical infrastructure such as streets and utilities the City needs to collect information in the field to conduct further planning of maintenance activity. Prior Council Review: 2009-2010 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 0 3 0 0 0 0 0 3 Technology & Equipment Acquisition 0 57 0 0 0 0 60 117 0 60 0 0 0 0 60 120 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 60 0 0 0 0 60 120 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 40 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 49

Fuel Clean Up Project Manager: G. Boettcher Approved ID: WG550R Exp (thousands): $ 156 Project : Soil remediation and monitoring following clean-up of a fuel release from underground tanks at the Maintenance Shop that spread to what was known as the Honeywell Property. Clean-up of the Honeywell site began in 2005. Continue remedial action and monitoring of the site until the City receives formal notification from DOE that no further action is necessary. Results of remedial action to date are generally encouraging. It is likely that another two years of groundwater treatment, followed by two years of additional monitoring will be needed. Prior Council Review: AB 4270 (Feb 2008) 2012 2013 2014 2015 2016 2017 Other 75 77 79 0 0 0 0 156 2018 75 77 79 0 0 0 0 156 2012 2013 2014 2015 2016 2017 2018 Other 75 77 79 0 0 0 0 156 Staff Responsible: Glenn Boettcher Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 20 Public Involvement: Not Applicable H - 50 City of Mercer Island 2013-2014 Budget

Document Management Project Manager: M. Kaser Approved ID: WG702T Exp (thousands): $ 474 Project : Document Management refers to the management of all public and private records as described in RCW 40.41 and RCW 42.56 and other applicable local, state, and federal laws. The City generates public and private records as a function of City business. A system to manage these records in accordance with business need, state, and federal law is required. The City has implemented an electronic document management system and has deployed it to several departments. Additional work is needed to continue further deployment. Prior Council Review: 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 65 79 79 79 79 79 79 474 65 79 79 79 79 79 79 474 2012 2013 2014 2015 2016 2017 2018 General Fund 65 79 79 79 79 79 79 474 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 250 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 51

City Hall Building Repairs Project Manager: M. Olson Approved ID: WG101R Exp (thousands): $ 803 Project : Projects include: HVAC unit replacements, updated signage, restroom refurbish, and kitchen improvements. To maintain the functions of the building for customers and employees. The reinvestments are intended to enhance the life of the building and its systems. Replace final 4 HVAC units to conclude temperature conditioning upgrades. The signs are old and in need of replacement. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 39 28 74 171 169 100 166 708 Project Management 13 4 23 16 16 14 22 95 52 32 97 187 185 114 188 803 2012 2013 2014 2015 2016 2017 2018 REET 1 52 32 97 187 185 114 188 803 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 480 Public Involvement: Not Applicable H - 52 City of Mercer Island 2013-2014 Budget

Maintenance Building Repairs Project Manager: M. Olson Approved ID: WG102R Exp (thousands): $ 495 Project : Projects include resealing of a skylight, door, window assembly in the hallway, interior paint and hazard and preventative maintenance to the trees on the property. To maintain and enhance the safety and functionality of the facility. Skylight and door assembly in the hallway downstairs is leaking. Interior paint is needed throughout. There are several hazardous trees and preventative maintenance needed on many other trees. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 8 20 31 53 55 190 90 439 Project Management 4 3 4 7 7 23 12 56 12 23 35 60 62 213 102 495 2012 2013 2014 2015 2016 2017 2018 REET 1 3 6 9 15 15 53 25 123 Utilities 9 17 26 45 47 160 77 372 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 220 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 53

Thrift Shop Repairs Project Manager: M. Olson Approved ID: WG104R Exp (thousands): $ 283 Project : Projects include retail space modification, HVAC unit, flat roof replacement, signage upgrade, and fixture replacements. Comfort and safety for customers and volunteers, and to prolong the life of the building. More retail space is needed. The HVAC unit for the top floor is at the end of its life expectancy. The flat portion of the roof needs to be replaced. Some electrical work is needed on the show room floors and addtional carts and fixtures are needed. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 21 52 48 44 40 36 29 249 Project Management 1 7 7 6 5 5 4 34 22 59 55 50 45 41 33 283 2012 2013 2014 2015 2016 2017 2018 Private Contributions 22 59 55 50 45 41 33 283 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 120 Public Involvement: Not Applicable H - 54 City of Mercer Island 2013-2014 Budget

North Fire Station Repairs Project Manager: M. Olson Approved ID: WG106R Exp (thousands): $ 353 Project : Projects include HVAC replacement, installation of a handicap opener for the front door, electrical upgrades in the apparatus bay, and replacement of some furnishings. To keep the building functional for customers, firefighters, and to maintain the public asset. Front door for patrons lacks a handicap door opener. Additional electrical upgrades are needed to accommodate new fire equipment requirements. 2 HVAC units need to be replaced. Mattresses and meeting room furniture are in need of replacement. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 40 35 51 58 51 60 56 311 Project Management 14 5 7 8 7 8 7 42 54 40 58 66 58 68 63 353 2012 2013 2014 2015 2016 2017 2018 REET 1 54 40 58 66 58 68 63 353 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 405 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 55

South Fire Station Repairs Project Manager: M. Olson Approved ID: WG103R Exp (thousands): $ 106 Project : This project is a placeholder for building repairs required following completion of construction of a new South Fire Station. To protect and prolong the life of the newly built South Fire Station. Citizens approved a levy lid lift to replace Fire Station 92 in November 2012. Final design will be completed in 2013. Construction would be completed by early 2015. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 13 0 0 22 22 25 25 94 Project Management 2 0 0 3 3 3 3 12 15 0 0 25 25 28 28 106 2012 2013 2014 2015 2016 2017 2018 REET 1 15 0 0 25 25 28 28 106 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 90 Public Involvement: Not Applicable H - 56 City of Mercer Island 2013-2014 Budget

Luther Burbank Admin Building Repairs Project Manager: M. Olson Approved ID: WG107R Exp (thousands): $ 507 Project : Projects include HVAC installation to condition main and basement floors, repair of interior stairs, and replacement of old galvanized pipes and upgrading of restroom fixtures. To provide a safer environment for building users, make further progress towards energy conservation and prolong the life of the building. Heating is by steam boiler, old piping and registers. Cooling is by window air conditioning units. Domestic water pipes are galvanized and deteriorating, causing rusty water and leaks. There is a risk of pipes bursting within walls. Interior paint is needed. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 42 122 91 131 36 35 32 447 Project Management 6 16 12 18 5 5 4 60 48 138 103 149 41 40 36 507 2012 2013 2014 2015 2016 2017 2018 REET 1 48 138 103 149 41 40 36 507 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 270 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 57

Community Center Building Repairs Project Manager: M. Olson Approved ID: WG105R Exp (thousands): $ 803 Project : Interior paint, HVAC repairs/replacement in the Annex, gym and dance floor refinishing, roof maintenance, parking lot seal coating and restriping, and landscaping enhancements. To make the facility safe and comfortable for class and program users and to prolong the life of the building. Heat registers in Annex building have high energy use. Parking lot needs to be seal coated. HVAC repairs are needed for increased efficiency. Gym and dance room floors need recoating. Landscaping and exterior repairs are needed. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Building Repairs 77 76 97 77 165 146 146 707 Project Management 11 10 13 11 22 20 20 96 88 86 110 88 187 166 166 803 2012 2013 2014 2015 2016 2017 2018 REET 1 88 86 110 88 187 166 166 803 Staff Responsible: Marcy Olson Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 580 Public Involvement: Not Applicable H - 58 City of Mercer Island 2013-2014 Budget

Website Redesign Project Manager: M. Kaser Approved ID: WG711T Exp (thousands): $30 Project : Update and enhance the City's website to stay current with web technologies. The City's website is a primary form of communication with the public and provides access to many City services. Web technology and services change rapidly and the website needs to be updated periodically to stay current. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 15 0 0 30 0 0 0 30 2018 15 0 0 30 0 0 0 30 2012 2013 2014 2015 2016 2017 2018 General Fund 15 0 0 30 0 0 0 30 Staff Responsible: A. Spietz Start Date: 01/01/2015 End Date: 12/31/2015 Labor Hours: 100 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 59

Financial System Upgrades Project Manager: M. Kaser Approved ID: WG113T Exp (thousands): $ 177 Project : Implement additional software enhancements to the Financial system. Facilitate production of budget and ongoing improvements to financial accounting and reporting capabilities. The software vendor has released the next major version of the software. A new reporting system has also been developed by the vendor which must be migrated to. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 0 10 9 0 0 0 0 19 Technology & Equipment Acquisition 0 60 58 10 0 30 0 158 0 70 67 10 0 30 0 177 2012 2013 2014 2015 2016 2017 2018 General Fund 0 56 54 8 0 24 0 142 Utilities 0 14 13 2 0 6 0 35 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 240 Public Involvement: Not Applicable H - 60 City of Mercer Island 2013-2014 Budget

Server Software Updates Project Manager: M. Kaser Approved ID: WG921T Exp (thousands): $ 304 Project : Update server operating system software and server database software to current versions. Servers run all of the business systems and major applications supporting City business. Maintaining a current version of operating system and database level is necessary for a stable and secure environment and is necessary to work with our software vendors. Software is out of date and requires updates to the latest version. This will include SQL Server 2012, Office 2010, and Windows Server and Desktop 8 Migrations. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 0 12 33 0 0 0 0 45 Technology & Equipment Acquisition 0 41 87 0 0 60 71 259 0 53 120 0 0 60 71 304 2012 2013 2014 2015 2016 2017 2018 General Fund 0 26 120 0 0 51 60 257 Utilities 0 27 0 0 0 9 11 47 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 1,600 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 61

Permitting System Upgrades Project Manager: M. Kaser Approved ID: WG314T Exp (thousands): $30 Project : To implement the permitting system chosen by ecitygov Alliance. To continue to streamline permitting, DSG business practices, and integrate with regional ecitygov Alliance initiatives for Mercer Island and regional constituents. Online permitting and electronic plan review enhancements are being implemented to better serve Mercer Island permitting customers. Prior Council Review: 2009-2010 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 0 8 0 0 0 0 0 8 Technology & Equipment Acquisition 0 22 0 0 0 0 0 22 0 30 0 0 0 0 0 30 2012 2013 2014 2015 2016 2017 2018 General Fund 0 30 0 0 0 0 0 30 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 160 Public Involvement: Not Applicable H - 62 City of Mercer Island 2013-2014 Budget

Maintenance Management System Project Manager: M. Kaser Approved ID: XG118T Exp (thousands): $ 180 Project : Replace existing Maintenance Management System. Maintenance of City assets and infrastructure in compliance with public needs and City policy requires a system to track current operations and conduct future planning. Ex: work orders track labor, equipment and materials used for customer response. The current system is significantly out of step with current industry standards and software. The vendor does not show the ability to support the existing system and update its software to current market and industry standards. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Technology & Equipment Acquisition 10 0 0 180 0 0 0 180 10 0 0 180 0 0 0 180 2012 2013 2014 2015 2016 2017 2018 General Fund 10 0 0 45 0 0 0 45 Utilities 0 0 0 135 0 0 0 135 Staff Responsible: M. Kaser Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 2,000 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 63

City Information via Web Based GIS Project Manager: M. Kaser Approved ID: WG926T Exp (thousands): $30 Project : Enhance the City's Geographic Information System with additional layers for public use such as trails. To provide City data to the public and City staff to support decision making and information sharing in a user friendly manner. This software system requires investment to take advantage of new features and funtionality. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 0 0 0 0 30 0 0 30 2018 0 0 0 0 30 0 0 30 2012 2013 2014 2015 2016 2017 2018 General Fund 0 0 0 0 30 0 0 30 Staff Responsible: M. Kaser Start Date: 01/01/2016 End Date: 12/31/2016 Labor Hours: 240 Public Involvement: Not Applicable H - 64 City of Mercer Island 2013-2014 Budget

Fleet Replacements Project Manager: G. Boettcher Approved ID: WG130E Exp (thousands): $ 3,582 Project : Procurement of equiment and vehicles scheduled for replacement through Fleet Services, including police patrol vehicles, marine patrol boats and engines, heavy equipment and administrative staff vehicles. Equipment and vehicles that have reached the end of their useful lives need to be replaced in a timely and cost-effective manner to minimize fuel use, reduce emissions, and provide the desired services. The Equiment Rental Fund is used to manage replacement and M & O funds to ensure that the City's fleet meets the needs and demands of public service. Funds are collected over the life of the vehicle and spent as the useful life is reached. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Vehicle Replacements 616 525 414 471 1,123 650 399 3,582 616 525 414 471 1,123 650 399 3,582 2012 2013 2014 2015 2016 2017 2018 Dept Fees 616 525 414 471 1,123 650 399 3,582 Staff Responsible: Glenn Boettcher Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 300 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 65

Self Contained Breathing Apparatus Replacement Project Manager: S. Heitman Approved ID: Exp (thousands): $ 306 Project : Replacement of Self Contained Breathing Apparatus (SCBA) including aire tanks, packs, and masks. In order to maintain safety and the ability to perform duties in a Immediately Dangerous to Life and Health (IDLH) environment, SCBA Equipment is needed. Current SCBA equipment will reach the end of it's useful life in 2018. Prior Council Review: AB 4189 (June 2007), 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 0 0 0 0 0 0 306 306 2018 0 0 0 0 0 0 306 306 2012 2013 2014 2015 2016 2017 2018 General Fund 0 0 0 0 0 0 306 306 Staff Responsible: S. Heitman Start Date: 01/01/2018 End Date: 12/31/2018 Labor Hours: 50 Public Involvement: Not Applicable H - 66 City of Mercer Island 2013-2014 Budget

Police In-Car Video System Replacement Project Manager: M. Kaser Approved ID: WG317T Exp (thousands): $77 Project : Equipment used to record police officer activity near and in police vehicles has reached the end of its useful life and needs to be replaced. In-car video systems provide for Officer and public safety as well as prosecution requirements. The existing equipment has reached the end of its useful life and needs to be replaced. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Project Management 0 7 0 0 0 0 0 7 Technology & Equipment Acquisition 0 70 0 0 0 0 0 70 0 77 0 0 0 0 0 77 2012 2013 2014 2015 2016 2017 2018 General Fund 0 77 0 0 0 0 0 77 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 80 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 67

City Hall Camera System Update Project Manager: M. Kaser Approved ID: WG316T Exp (thousands): $9 Project : Replace several security cameras at City Hall for Police, Court, and City Hall security. Police, Court, and City Hall security requires video camera security systems. Several cameras have reached their useful end of life and need to be replaced. Prior Council Review: None 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 0 0 9 0 0 0 0 9 2018 0 0 9 0 0 0 0 9 2012 2013 2014 2015 2016 2017 2018 General Fund 0 0 9 0 0 0 0 9 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 30 Public Involvement: As Needed H - 68 City of Mercer Island 2013-2014 Budget

Utility Billing System Upgrade Project Manager: M. Kaser Approved ID: WG315T Exp (thousands): $39 Project : Upgrade the utility billing system to the most current version. The City bills for the use and maintenance of three utilities and requires a sophisticated software system to manage this process. The existing system vendor has released a major new software version. The City maintains major software systems at the current software release to ensure support and take advantage of new features. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Project Management 0 0 7 0 0 0 0 7 Technology & Equipment Acquisition 0 0 32 0 0 0 0 32 0 0 39 0 0 0 0 39 2012 2013 2014 2015 2016 2017 2018 Utilities 0 39 0 0 0 0 0 39 Staff Responsible: M. Kaser Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 40 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 69

Fire Apparatus Replacements Project Manager: S. Heitman Approved ID: XG710E Exp (thousands): $ 1,498 Project : Replacement of one rescue truck (2013), one mini pumper (2015) and one maxi pumper (2017). Fire apparatus (fire trucks, the rescue truck, and equipment) are a fundemental part of responding to fires and emergencies. Started a staggered replacement schedule for fire apparatus in 2007, with a maxi-pumper to be replaced every 5 years, and a mini-pumper replaced every 8 years. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget 2012 2013 2014 2015 2016 2017 Property Acquisition 630 415 0 338 0 745 0 1,498 2018 630 415 0 338 0 745 0 1,498 2012 2013 2014 2015 2016 2017 2018 Debt 630 415 0 338 0 745 0 1,498 Staff Responsible: S. Heitman Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 200 Public Involvement: As Needed H - 70 City of Mercer Island 2013-2014 Budget

MICEC Technology & Equipment Replacement Project Manager: J. Raasch Approved ID: WG141E Exp (thousands): $ 541 Project : Begin normal replacement cycle of MICEC equipment that has reached the end of useful life. Examples include fitness room equipment, janitorial machines, electronics, and furniture. To ensure desired quality and safety standards are met at MICEC when offering services to the public. Replacement cycles range from 5 to 20 years (based on average useful life of equipment). In 2013-2014 most MICEC equipment will be eight and nine years old. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Technology & Equipment Acquisition 31 40 69 56 146 82 148 541 2018 31 40 69 56 146 82 148 541 2012 2013 2014 2015 2016 2017 2018 General Fund 31 40 69 56 146 82 148 541 Staff Responsible: Jana Raasch Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 20 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 71

Sewer System Emergency Repairs Project Manager: T. Smith Approved ID: WS901E Exp (thousands): $ 300 Project : Repair or replace sewer system infrastructure on an emergency basis. This project is necessary for continuing reliable and cost-effective sewer system operation. With an aging sewer system infrastructure, emergency response is inevitable to administer repairs to failing sewer system components. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 50 50 50 50 50 50 50 300 2018 50 50 50 50 50 50 50 300 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 50 50 50 50 50 50 50 300 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: As Needed H - 72 City of Mercer Island 2013-2014 Budget

Sewer System Pump Station Repairs Project Manager: T. Smith Approved ID: WS901D Exp (thousands): $ 380 Project : Ongoing capital repairs to sewer pump stations. Sewer Pump Stations are necessary for continuing reliable and cost-effective sewer system operation. Four aging pump stations are in need of capital repair that can no longer be deferred. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 53 57 57 61 61 61 61 358 Project Management 2 3 3 4 4 4 4 22 55 60 60 65 65 65 65 380 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 55 60 60 65 65 65 65 380 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 73

East Mercer Way Sewer Replacement Project Manager: A. Tonella-Howe Approved ID: WS310R Exp (thousands): $ 500 Project : Replace 680 linear feet of sewer main in the 5600 block of East Mercer Way between manhole 31-25 to 31-5. Ongoing sewer system improvements will ensure continued reliable and cost-effective sewer system operation. This section of sewer main is settling and has developed a low spot or 'belly' requiring frequent flushing and maintenance to prevent backups. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 353 0 0 0 353 Design Services 0 0 0 90 0 0 0 90 Project Management 0 0 0 57 0 0 0 57 0 0 0 500 0 0 0 500 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 0 500 0 0 0 0 500 Staff Responsible: A. Tonella-Howe Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 400 Public Involvement: As Needed H - 74 City of Mercer Island 2013-2014 Budget

General Sewer System Improvements Project Manager: T. Smith Approved ID: WS710R Exp (thousands): $ 1,550 Project : Collection system improvements. Add manholes or cleanouts to existing inaccessible sewer mains to provide for cleaning and inspection. Repair or replace existing lines and manholes as needed. Continued reliable and cost-effective sewer system operation. Many components of the sewer system are aging and failures occur periodically. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 480 0 0 325 375 375 375 1,450 Design Services 25 0 0 20 20 20 20 80 Project Management 10 0 0 5 5 5 5 20 515 0 0 350 400 400 400 1,550 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 515 0 0 350 400 400 400 1,550 Staff Responsible: T. Smith Start Date: 01/01/2015 End Date: 12/30/2018 Labor Hours: 315 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 75

Sanitary Sewer System Telemetry Project Manager: T. Smith Approved ID: WS330T Exp (thousands): $ 263 Project : Replace and upgrade equipment and software that provides monitoring and control of the sanitary sewer pump stations. This work in 2013 will complete the remaining 5 sewer stations; PS 14, 18, 19, 21, and 24. An effective telemetry system is necessary for efficient sewer pumping without impacting public health or water quality. The telemetry system for sewage pump stations has been updated at 12 stations. Five are outdated, deteriorating, and do not meet minimum reliability requirements. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 146 0 0 0 0 0 146 Design Services 0 117 0 0 0 0 0 117 0 263 0 0 0 0 0 263 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 263 0 0 0 0 0 263 Staff Responsible: T. Smith Start Date: 05/01/2013 End Date: 12/31/2013 Labor Hours: 50 Public Involvement: As Needed H - 76 City of Mercer Island 2013-2014 Budget

Sewer System Generator Replacement Project Manager: T. Smith Approved ID: WS901G Exp (thousands): $ 425 Project : Continue the systematic replacement of sewer pump station generators that provide emergency power. An effective sewer system is necessary for continuing reliable and cost-effective sewer system operations. Several of the sewer pump station generators are outdated and past the end of their useful life. They do not meet minimum reliability requirements. Prior Council Review: 2007-2008 Budget, 2009-2010 Budget, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 137 95 0 0 160 0 170 425 2018 137 95 0 0 160 0 170 425 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 137 95 0 0 160 0 170 425 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 77

Street Related Sewer CIP Projects Project Manager: T. Smith Approved ID: WS160R Exp (thousands): $ 300 Project : Replace sewer system components including sewer manhole lids and castings, within the Street resurfacing project boundary's ahead of the street resurfacing. Completing sewer system improvement prior to street projects is a cost effective way to coordinate street overlay and sewer system improvements. The condition of the sewer system varies through out the Island and will be assessed prior to overlay of streets. Prior Council Review: None 2012 2013 2014 2015 2016 2017 Construction 0 50 50 50 50 50 50 300 2018 0 50 50 50 50 50 50 300 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 50 50 50 50 50 50 300 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: As Needed H - 78 City of Mercer Island 2013-2014 Budget

Backyard Sewer System Improvements Project Manager: A. Tonella-Howe Approved ID: Exp (thousands): $ 400 Project : Repair or replace existing sewer mains located in the 'backyards' of homes. Add manholes and cleanouts to existing inaccessible mains to provide for cleaning and inspection activities in the future. Proactive reinvestment in sewer mains located along the back property line of some homes will ensure continued reliable and cost effective sewer system operation. These 'backyard' mains are aging and failures occur periodically. Many mains are inaccessible but still require maintenance, cleaning or replacement and repairs. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 175 0 175 350 Project Management 0 0 0 25 0 25 0 50 0 0 0 25 175 25 175 400 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 0 0 25 175 25 175 400 Staff Responsible: A. Tonella-Howe Start Date: 01/01/2015 End Date: 12/30/2018 Labor Hours: 250 Public Involvement: Combination City of Mercer Island 2013-2014 Budget H - 79

General Sewer Plan - 20 year Capital Plan Update Project Manager: A. Tonella-Howe Approved ID: WS103P Exp (thousands): $50 Project : Update chapters of the General Sewer Plan to include a current 20-year Capital Improvement Plan, criteria for prioritizing improvements, assessment of pump station conditions and discussion on sustainability. The City is required by state law to maintain a current and accurate Sewer System Comprehensive Plan. The last update of the Sewer System Comprehensive Plan was completed in 2002. Prior Council Review: General Sewer Plan Adoption 2002 2012 2013 2014 2015 2016 2017 2018 Other 0 9 29 0 0 0 0 38 Project Management 0 6 6 0 0 0 0 12 0 15 35 0 0 0 0 50 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 15 35 0 0 0 0 50 Staff Responsible: A. Tonella-Howe Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 200 Public Involvement: As Needed H - 80 City of Mercer Island 2013-2014 Budget

Pump Station 14 Modernization Project Manager: G. Boettcher Approved ID: WS320R Exp (thousands): $ 375 Project : Replace the pumping system and controls which are obsolete and unreliable at Sewer Pump Station 14. Sewer Pump Stations are necessary for continuing reliable and cost-effective sewer system operation. The pumping system in Pump Station 14 is the only one of its kind among the Sewer Utility's 19 pump stations. Parts for the pumping system no longer are available. There are safety concerns about operating the system, which does not meet current L & I standards. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 360 0 0 0 0 0 360 Project Management 0 15 0 0 0 0 0 15 0 375 0 0 0 0 0 375 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 375 0 0 0 0 0 375 Staff Responsible: A. Tonella-Howe Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 200 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 81

Neighborhood Spot Drainage Improvements Project Manager: C. Morris Approved ID: WD101C Exp (thousands): $ 510 Project : This annual program makes improvements to the public stormwater system by correcting neighborhood drainage problems. An effective stormwater system is essential to prevent property and infrastructure damage and protect water quality in Lake Washington. Deficiencies develop in the public stormwater system due to a variety of factors, including lack of drainage systems, increased demand on the system, and failure of older components of the system. Prior Council Review: Comp. Basin Review; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 60 70 70 75 75 80 80 450 Project Management 10 10 10 10 10 10 10 60 70 80 80 85 85 90 90 510 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 70 80 80 85 85 90 90 510 Staff Responsible: Clint Morris Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 200 Public Involvement: As Needed H - 82 City of Mercer Island 2013-2014 Budget

Watercourse Condition Assessments Project Manager: P. Yamashita Approved ID: WD104D Exp (thousands): $ 115 Project : This biennial assessment evaluates the physical condition and rate of erosion in key watercourses. The assessments are used to prioritize watercourse restoration projects in the 6 year stormwater CIP and biennial budget. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's ravines/basins have watercourses with downcutting/erosion in various locations. These must be monitored in order to property plan and prioritize watercourse improvement projects. Prior Council Review: Comprehensive Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Design Services 22 8 22 12 22 12 22 98 Project Management 3 2 3 3 3 3 3 17 25 10 25 15 25 15 25 115 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 25 10 25 15 25 15 25 115 Staff Responsible: P. Yamashita Start Date: 09/01/2013 End Date: 05/01/2014 Labor Hours: 50 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 83

Sub-Basin 4 Watercourse Stabilization Project Project Manager: F. Gu Approved ID: WD310C Exp (thousands): $ 327 Project : Channel and bank stabilization in the Sub-Basin 4 ravine within the Gallagher Hill Open Space. Project limits include Sub-Basins 4.2, 4.3c and 4.4. Construction will utilize sustainable practices through minimizing trucking of materials to/from the site, minimize use of mechanically manufactured quarry rock, and use large woody debris and other natural practices where possible. Disturbed areas will be replanted with native vegetation. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's ravines/basins have watercourses causing downcutting/erosion in various locations. Prior Council Review: Comp. Basin Review; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 231 0 0 0 0 0 231 Design Services 0 43 0 0 0 0 0 43 Project Management 0 53 0 0 0 0 0 53 0 327 0 0 0 0 0 327 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 327 0 0 0 0 0 327 Staff Responsible: F. Gu Start Date: 01/11/2013 End Date: 12/31/2013 Labor Hours: 700 Public Involvement: As Needed H - 84 City of Mercer Island 2013-2014 Budget

Sub-Basin 29.2 Watercourse Stabilization Project Project Manager: F. Gu Approved ID: WD314C Exp (thousands): $ 113 Project : Given the steepness of the existing channel, the project scope involves installation of a short butt-fused HDPE pipeline from WMW down the steep bank to the ravine bottom approximately 140 feet. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. A steep channel in Sub-basin 29.2 has eroded a 15 foot head cut incised into the east bank of the main channel. This damage is in need of repair. Prior Council Review: Comp Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 83 0 0 0 83 Design Services 0 0 8 7 0 0 0 15 Project Management 0 0 2 13 0 0 0 15 0 0 10 103 0 0 0 113 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 10 103 0 0 0 113 Staff Responsible: F. Gu Start Date: 01/01/2014 End Date: 12/31/2015 Labor Hours: 200 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 85

Watercourse Stabilization Projects (2015-2018) Project Manager: P. Yamashita Approved ID: Exp (thousands): $ 802 Project : Projects associated with stabilization and protection of eroded ravine watercourses in 2015-2018 include Sub-Basins 23.2, 45b.1, 46a.3, and 49b.4. Protecting Lake Washington from siltation and water quality issues while safely conveying storm water to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's ravines/basins have high flowing watercourses causing downcutting/erosion in various locations. Prior Council Review: Comp. Basin Review; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 0 0 0 10 215 391 186 802 2018 0 0 0 10 215 391 186 802 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 0 10 215 391 186 802 Staff Responsible: F. Gu Start Date: 01/01/2015 End Date: 12/31/2018 Labor Hours: 750 Public Involvement: As Needed H - 86 City of Mercer Island 2013-2014 Budget

Drainage System Replacements (2015-2018) Project Manager: P. Yamashita Approved ID: Exp (thousands): $ 375 Project : Replacement of aging and poorly functioning piped conveyance systems in 2015-2018 in neighborhoods such as Mercerwood, Dawn Terrace, and Tarrywood; 30" flume replacement (74th to 75th Ave. SE, sub-basin 11); and 12" culvert replacement (east of EMW in sub-basin 39a). Maintaining proper operation of the drainage system and protecting Lake Washington from siltation and water quality issues while safely conveying stormwater to the Lake are primary responsibilities of the Storm and Surface Water Utility. Several of the Storm and Surface Water Utility's drainage systems are aging and in need of replacement. Prior Council Review: Comp. Basin Review; 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 0 0 0 0 100 125 150 375 2018 0 0 0 0 100 125 150 375 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 0 0 100 125 150 375 Staff Responsible: F. Gu Start Date: 01/01/2016 End Date: 12/31/2018 Labor Hours: 750 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 87

Minor Watercourse Improvements Project Manager: F. Gu Approved ID: WD106R Exp (thousands): $ 196 Project : This project will restore and protect small sections of watercourses in Basins 46a.6 ($47,000) and 52.1 ($97,000) in 2013 and Basin 27a.6 ($52,000) in 2014. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's ravines/basins have watercourses causing downcutting/erosion in various locations. The locations identified in this project are in need of minor repairs. Prior Council Review: Comp. Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 111 36 0 0 0 0 147 Design Services 0 18 10 0 0 0 0 28 Project Management 0 15 6 0 0 0 0 21 0 144 52 0 0 0 0 196 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 144 52 0 0 0 0 196 Staff Responsible: F. Gu Start Date: 01/01/2013 End Date: 11/01/2014 Labor Hours: 500 Public Involvement: As Needed H - 88 City of Mercer Island 2013-2014 Budget

Sub-Basin 27 Watercourse Stabilization Project Project Manager: F. Gu Approved ID: WD311C Exp (thousands): $ 193 Project : The watercourse will be stabilized and restored utilizing sustainable practices through minimizing trucking of materials to/from the site, minimize the use of mechanically manufactured quarry rock, and use large woody debris and other more natural practices where possible. Disturbed areas will be replanted with native vegetation. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. The watercourse channel is deeply incised and has near vertical banks in spots. Sub-Basin 27 has experienced erosion and is in need of stabilization and restoration of the watercourse channel. Prior Council Review: Comp. Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 135 0 0 0 0 135 Design Services 0 0 23 0 0 0 0 23 Permitting & Environment 0 0 3 0 0 0 0 3 Project Management 0 0 32 0 0 0 0 32 0 0 193 0 0 0 0 193 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 193 0 0 0 0 193 Staff Responsible: F. Gu Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 420 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 89

Sub-Basin 42 Watercourse Stabilization Project Project Manager: F. Gu Approved ID: WD313C Exp (thousands): $ 318 Project : The watercourse will be stabilized and restored utilizing sustainable practices through minimizing trucking of materials to/from the site, minimize use of mechanically manufactured quarry rock, and use large woody debris, log weirs and other natural practices where possible. Disturbed areas will be replanted with native vegetation. Preliminary design is scheduled for 2014 and construction in 2015. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. The temporary watercourse protection measures (sandbags and geotextile fabric check dams) installed in the 1990s are in need of replacement with permanent, sustainable improvements. The watercourse flow is also eroding stream banks. Prior Council Review: Comp. Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 303 0 0 0 303 Design Services 0 0 11 0 0 0 0 11 Project Management 0 0 4 0 0 0 0 4 0 0 15 303 0 0 0 318 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 15 303 0 0 0 318 Staff Responsible: F. Gu Start Date: 10/01/2014 End Date: 12/31/2014 Labor Hours: 80 Public Involvement: As Needed H - 90 City of Mercer Island 2013-2014 Budget

East Seattle Drainage System Replacement Project Manager: P. Yamashita Approved ID: WD120V Exp (thousands): $ 260 Project : Replacement of aging/undersized portions of the East Seattle drainage system bounded by SE 24th St., SE 32nd St., WMW, and Lake Washington. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the island's stormwater drainage systems are comprised of pipes that are aging and in need of replacement. Portions of the East Seattle drainage system are in need of replacement due to condition, age, and/or capacity. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 184 0 0 0 0 184 Design Services 0 30 0 0 0 0 0 30 Project Management 0 10 36 0 0 0 0 46 0 40 220 0 0 0 0 260 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 40 220 0 0 0 0 260 Staff Responsible: F. Gu Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 500 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 91

Watercourse Minor Repairs/Maintenance Project Manager: F. Gu Approved ID: WD105R Exp (thousands): $ 110 Project : Over the years, many watercourses have been restored on Mercer island. This project will provide a modest annual budget to make minor repairs to these watercourses, remove invasive vegetation, and/or enhance native vegetation in the watercourse corridor. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's ravines/basins have watercourses causing downcutting/erosion in various locations. Some have been restored but require minor repair or removal of invasive vegetation. Prior Council Review: Comp. Basin Review 2012 2013 2014 2015 2016 2017 2018 Construction 0 12 12 16 16 16 16 88 Project Management 0 3 3 4 4 4 4 22 0 15 15 20 20 20 20 110 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 15 15 20 20 20 20 110 Staff Responsible: Fred Gu Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 120 Public Involvement: Combination H - 92 City of Mercer Island 2013-2014 Budget

Sub-Basin 6 Ph. 2 Watercourse Stabilization Project Project Manager: F. Gu Approved ID: WD312C Exp (thousands): $ 523 Project : The watercourse will be stabilized and restored utilizing sustainable practices through minimizing trucking of materials to/from the site, minimize use of mechanically manufactured quarry rock, and use large woody debris, log weirs and other natural practices where possible. Disturbed areas will be replanted with native vegetation. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Parts of this sub-basin were stabilized in the 1990s but are in need of additional stabilization due to ongoing erosion and failure of some of the 20 year old improvements. Additionally, the west branch of the watercourse has also eroded and is in need of stabilization. Prior Council Review: Comp. Basin Review 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 367 0 0 0 0 367 Design Services 0 33 35 0 0 0 0 68 Project Management 0 7 81 0 0 0 0 88 0 40 483 0 0 0 0 523 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 40 483 0 0 0 0 523 Staff Responsible: F. Gu Start Date: 09/01/2013 End Date: 12/31/2014 Labor Hours: 1,140 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 93

Drainage System Video Inspection Program Project Manager: B. Sansbury Approved ID: WD321R Exp (thousands): $90 Project : A focused effort on video inspections of public drainage system pipes is necessary to determine the condition of key segments of the system to prioritize future system replacements. Protecting Lake Washington from siltation and water quality issues while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the Island's stormwater drainage systems are comprised of pipes that are aging and in need of replacement. Staff doesn't have a comprehensive record of the condition of the entire system. Such records will aid in planning and prioritizing the replacement of the system. Prior Council Review: Comp Basin Review 2012 2013 2014 2015 2016 2017 Project Management 0 60 30 0 0 0 0 90 2018 0 60 30 0 0 0 0 90 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 60 30 0 0 0 0 90 Staff Responsible: F. Gu Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 180 Public Involvement: Not Applicable H - 94 City of Mercer Island 2013-2014 Budget

Drainage System Emergency Repairs Project Manager: B. Sansbury Approved ID: WD320R Exp (thousands): $90 Project : Repair or replacement of drainage system infrastructure on an emergency basis. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Occasionally as a result of heavy rains and severe weather conditions, there are localized failures in pipes, ditches, and watercourses that require emergency repairs to restore operation of the system quickly to minimize potential flooding and property damage. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 15 15 15 15 15 15 90 0 15 15 15 15 15 15 90 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 15 15 15 15 15 15 90 Staff Responsible: P. Yamashita Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 95

Water Model Updates/ Fire Flow Analysis Project Manager: R. Lin Approved ID: WW102P Exp (thousands): $70 Project : Update the hydraulic model of the water system every two years to incorporate improvements and changes to the water system through the completion of capital improvement projects, private development and maintenance activities. Maintaining current information in the water model is essential for planning water system improvements and fire flow analysis. Public water system improvements and private development both rely on up to date model data to provide design criteria for construction. The water model becomes out of date if as improvements and changes are made to the water system. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Design Services 16 0 21 0 16 0 21 58 Project Management 4 0 4 0 4 0 4 12 20 0 25 0 20 0 25 70 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 20 0 25 0 20 0 25 70 Staff Responsible: Rona Lin Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 150 Public Involvement: Not Applicable H - 96 City of Mercer Island 2013-2014 Budget

Water System Plan Update Project Manager: R. Lin Approved ID: WW101P Exp (thousands): $ 130 Project : Update of the Water System Plan in 2014. Tasks include re-examining policies, criteria, and water use data since the last plan update in 2008. Provide plans and strategies to prepare the water system to handle the Islands' future water demands. Update the Water System Plan in accordance with WAC-246-490. The current plan will expire in July 2014. An updated plan must be submitted to the Washington State Department of Health by July 2014 for review and approval. Prior Council Review: 2008 Water System Plan Adoption (AB 4329) 2012 2013 2014 2015 2016 2017 2018 Design Services 0 60 50 0 0 0 0 110 Project Management 0 10 10 0 0 0 0 20 0 70 60 0 0 0 0 130 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 70 60 0 0 0 0 130 Staff Responsible: Rona Lin Start Date: 01/01/2013 End Date: 07/31/2014 Labor Hours: 200 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 97

Meter Replacement Program Project Manager: T. Smith Approved ID: WW120C Exp (thousands): $ 280 Project : Outdated and malfunctioning compound water meters and larger residential water meters will be replaced systematically under this annual program. A systematic annual replacement program is necessary to ensure accuracy and accountability of water usage throughout the Island and prevent revenue loss. A large number of the existing meters are outdated and malfunctioning, contributing to high, unaccountable water loss and lost revenue. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 40 45 45 45 45 50 50 280 2018 40 45 45 45 45 50 50 280 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 40 45 45 45 45 50 50 280 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 0 Public Involvement: As Needed H - 98 City of Mercer Island 2013-2014 Budget

88th Ave. & 86th Ave. Water System Improvements Project Manager: R. Lin Approved ID: WW311R Exp (thousands): $ 750 Project : Replace the 2-inch PVC water main and the 4-inch Cast Iron (CI) with 8-inch ductile iron (DI) water mains. Fire hydrants, valves, and water services will be replaced as well. Improving the water system is necessary to ensure cost-effective distribution of drinking water and adequate fire protection for the neighborhood. This existing 2-inch and 4-inch water mains are aging and undersized. Work Orders indicate breakage in recent years. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 528 0 0 0 0 528 Design Services 0 100 0 0 0 0 0 100 Project Management 0 31 91 0 0 0 0 122 0 131 619 0 0 0 0 750 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 131 619 0 0 0 0 750 Staff Responsible: Rona Lin Start Date: 06/03/2013 End Date: 09/30/2014 Labor Hours: 850 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 99

Mercerwood Neighborhood Water System Improvemts Project Manager: R. Lin Approved ID: Exp (thousands): $ 1,707 Project : Replace the 4-inch and 6-in water mains. Fire hydrants, valves, and water services will be replaced as well. Investment in these improvements will provide a safe and cost effective water distribution system. The 4-inch and 6-inch Asbestos Cement (AC) water mains are aging and have experienced breaks in the past. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 1,236 0 0 1,236 Design Services 0 0 0 154 0 0 0 154 Project Management 0 0 0 51 266 0 0 317 0 0 0 205 1,502 0 0 1,707 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 0 205 1,502 0 0 1,707 Staff Responsible: Rona Lin Start Date: 06/01/2015 End Date: 08/31/2016 Labor Hours: 750 Public Involvement: As Needed H - 100 City of Mercer Island 2013-2014 Budget

Street Related Water CIP Projects Project Manager: R. Lin Approved ID: WW117R Exp (thousands): $ 850 Project : Replace water main, fire hydrants, and water services within the Street projects' boundary ahead of the street construction. Completing the water system improvements prior to street projects is a cost effective way to coordinate street overlay and water system improvement priorities. The condition of the water system varies through out the Island and will be assessed prior to overlay of streets. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 65 0 189 189 141 141 141 801 Design Services 0 0 4 4 3 3 3 17 Project Management 0 0 7 7 6 6 6 32 65 0 200 200 150 150 150 850 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 65 0 200 200 150 150 150 850 Staff Responsible: Rona Lin Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 80 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 101

Hydrant Replacements Project Manager: R. Lin Approved ID: WW130R Exp (thousands): $ 225 Project : This biennial program is to replace the aging and undersized fire hydrants in various locations throughout the Island. A systematic, biennial improvement program is necessary to ensure all components of the water system are functioning properly and effectively. Undersized and/or aging hydrants are in need of replacement. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 57 57 0 77 0 82 0 216 Project Management 3 3 0 3 0 3 0 9 60 60 0 80 0 85 0 225 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 60 60 0 80 0 85 0 225 Staff Responsible: R. Lin Start Date: 01/01/2013 End Date: 12/31/2013 Labor Hours: 40 Public Involvement: As Needed H - 102 City of Mercer Island 2013-2014 Budget

Sandy Cove Water System Improvement Project Manager: R. Lin Approved ID: WW113R Exp (thousands): $ 374 Project : Replace the 2-inch and 4-inch steel water mains with an 8-inch ductile iron (DI) water main. Fire hydrants, valves, and water services will be replaced as well. Investment in these improvements will provide a safe and cost effective water distribution system. These undersized water mains have experienced numerous breaks in recent years. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 297 0 0 0 0 0 297 Design Services 20 0 0 0 0 0 0 0 Project Management 0 77 0 0 0 0 0 77 20 374 0 0 0 0 0 374 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 20 374 0 0 0 0 0 374 Staff Responsible: Rona Lin Start Date: 01/01/2012 End Date: 07/31/2013 Labor Hours: 450 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 103

ICW & 85th Ave. Water System Improvements Project Manager: R. Lin Approved ID: WW312R Exp (thousands): $ 1,596 Project : Replace the 6-inch asbestos cement (AC) water mains with 8-inch ductile iron (DI) water mains, disconnect/abandon a segment of a 6-in AC water main, extend a 14-inch water main (with 8-in or 12-in water main), and complete the water main loop at SE 44th St/86th Ave SE. Fire hydrants, valves, and water services will be replaced as well. Investment in these improvements will provide a safe and cost effective water distribution system. Replace aging pipe in advance of the resurfacing of Island Crest Way and 85th Ave SE. Prior Council Review: 2011-2012 Budget and 2012 TIP Updates 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 1,290 0 0 0 1,290 Design Services 75 0 0 0 0 0 0 0 Project Management 37 0 0 306 0 0 0 306 112 0 0 1,596 0 0 0 1,596 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 112 0 0 1,596 0 0 0 1,596 Staff Responsible: Rona Lin Start Date: 06/01/2012 End Date: 08/30/2013 Labor Hours: 900 Public Involvement: As Needed H - 104 City of Mercer Island 2013-2014 Budget

EMW 5400 to 6000 Block Watermain & PRV Stations Project Manager: R. Lin Approved ID: Exp (thousands): $ 1,290 Project : Replace the aging 4-inch Cast Iron (CI) watermain. Install pressure reducing valve (PRV) stations at the three individual locations on East Mercer Way to provide adequate water pressure. Pressure Reducing Valves will help prevent high water pressures and prevent damage to service lines and other water system components. Investment in these improvements will ensure a safe and cost effective water distribution system. The undersized watermain is aging and problematic. Currently there are no PRV's protecting these East Mercer Way neighborhoods from the potential impacts of high water pressure. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 0 0 906 906 Design Services 0 0 0 0 0 150 0 150 Project Management 0 0 0 0 0 38 196 234 0 0 0 0 0 188 1,102 1,290 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 0 0 0 188 1,102 1,290 Staff Responsible: R. Lin Start Date: 01/01/2017 End Date: 12/31/2018 Labor Hours: 900 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 105

Mercerwood Drive Water Main Replacement Project Manager: R. Lin Approved ID: WW313R Exp (thousands): $ 442 Project : Replace the aging 4-in water main and extend the water main from 4222 Mercerwood Drive to E Mercer Way to complete the watermain loop. Improving the water system is necessary to ensure cost-effective distribution of domestic water supply. This 4 inch asbestos Cement (AC) water main is aging and has experienced breaks in recent years. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 364 0 0 0 0 0 364 Project Management 0 78 0 0 0 0 0 78 0 442 0 0 0 0 0 442 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 442 0 0 0 0 0 442 Staff Responsible: Rona Lin Start Date: 01/01/2013 End Date: 07/31/2013 Labor Hours: 600 Public Involvement: As Needed H - 106 City of Mercer Island 2013-2014 Budget

Water Main Replacement - 93rd, 89th, & 90th Ave SE Project Manager: R. Lin Approved ID: WW314R Exp (thousands): $ 1,137 Project : Replace the 4-inch Cast Iron (CI) water mains with 8-inch ductile iron (DI) water mains. Fire hydrants, valves, and water services will be replaced as well. Investment in these improvements will provide a safe and cost effective water distribution system. This 4 inch CI water mains are aging and have experienced breaks in the past. Prior Council Review: 2011-2012 Budget & 2008 Water System Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 799 0 0 0 799 Design Services 0 0 133 0 0 0 0 133 Project Management 0 0 33 172 0 0 0 205 0 0 166 971 0 0 0 1,137 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 166 971 0 0 0 1,137 Staff Responsible: Rona Lin Start Date: 06/02/2014 End Date: 08/31/2015 Labor Hours: 800 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 107

Water System Components Replacement Project Manager: T. Smith Approved ID: WW131R Exp (thousands): $ 190 Project : This annual program is to replace components of the water system including air-vacuum release valves, blow-offs, in-line valves, and pressure reducing valves. A systematic, annual improvement program is necessary to ensure all components of the water system are functioning properly and effectively. Undersized and/or aging valves, blow-offs and other system components are in need of replacement. All components of the distribution system will eventually fail if not replaced. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 0 20 30 35 35 35 35 190 2018 0 20 30 35 35 35 35 190 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 20 30 35 35 35 35 190 Staff Responsible: T. Smith Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 20 Public Involvement: Not Applicable H - 108 City of Mercer Island 2013-2014 Budget

Madrona Crest West Addition Water Sys Improvements Project Manager: R. Lin Approved ID: Exp (thousands): $ 1,956 Project : Replace the 4-in and 6-in Cast Iron (CI) water mains with 8-in Ductile Iron (DI) water mains. Fire hydrants, valves, and water services will be replaced as well. Improving the water system is necessary to ensure cost-effective distribution of drinking water and adequate fire protection for the neighborhood. The 4-in and 6-in Cast Iron water mains are extremely corroded and could restrict the flow for domestic water supply and fire flow. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 0 1,432 0 1,432 Design Services 0 0 0 0 171 0 0 171 Project Management 0 0 0 0 57 296 0 353 0 0 0 0 228 1,728 0 1,956 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 0 0 228 1,728 0 1,956 Staff Responsible: Rona Lin Start Date: 06/01/2016 End Date: 08/31/2017 Labor Hours: 950 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 109

3838 WMW Water System Improvements Project Manager: R. Lin Approved ID: Exp (thousands): $ 497 Project : Replace the 4-inch Cast Iron (CI) water main with an 8-inch Ducitile Iron (DI) water main. Fire hydrants, valves, and water services will be replaced as well. Improving the water system is necessary to ensure cost-effective distribution of drinking water and adequate fire protection for the neighborhood. The water main is aging, undersized, and has experienced breakage in the past. Prior Council Review: 2008 Water System Plan Adoption 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 0 0 347 347 Design Services 0 0 0 0 0 0 60 60 Project Management 0 0 0 0 0 0 90 90 0 0 0 0 0 0 497 497 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 0 0 0 0 497 497 Staff Responsible: R. Lin Start Date: 01/01/2018 End Date: 12/31/2018 Labor Hours: 400 Public Involvement: As Needed H - 110 City of Mercer Island 2013-2014 Budget

83rd Ave off SE 40th St Water System Improvements Project Manager: R. Lin Approved ID: WW315R Exp (thousands): $ 230 Project : Replace the 4-inch Cast Iron (CI) water main with an 8-inch Ducitile Iron (DI) water main. Fire hydrants, valves, and water services will be replaced as well. Improving the water system is necessary to ensure cost-effective distribution of drinking water and adequate fire protection for the neighborhood. The water main is aging, undersized, and has experienced breakage in the past. Prior Council Review: 2008 Water System Plan Adoption 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 155 0 0 0 0 155 Design Services 0 0 26 0 0 0 0 26 Project Management 0 0 49 0 0 0 0 49 0 0 230 0 0 0 0 230 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 230 0 0 0 0 230 Staff Responsible: R. Lin Start Date: 01/01/2014 End Date: 12/31/2014 Labor Hours: 250 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 111

Regional Trail Connections (KC Prop 2 Levy) Project Manager: P. West Approved ID: XP720R Exp (thousands): $ 140 Project : Construct trails that connect City trails or the Town Center to the regional trail system in King County. Acquire easements where needed. Funding from the KC Levy continues through 2013. Available funds allow continuation of program through 2014. Trails have been identified in several planning processes to improve transportation and recreation for Mercer Island residents. Trails are one of the City's sustainability goals because they provide a non-motorized alternative to getting around the island. Trails need to be designed and built to fill in gaps in the City's existing trail system. The 2007 King County Parks levy revenue will be used to pay for improvements. Prior Council Review: Mid-Biennial Budget Review AB 4236 (11/19/07), 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Parks Repairs 60 72 55 0 0 0 0 127 Project Management 13 8 5 0 0 0 0 13 73 80 60 0 0 0 0 140 2012 2013 2014 2015 2016 2017 2018 Other - Reserves 73 80 60 0 0 0 0 140 Staff Responsible: Paul West Start Date: 08/03/2009 End Date: 12/31/2014 Labor Hours: 120 Public Involvement: As Needed H - 112 City of Mercer Island 2013-2014 Budget

Pedestrian and Bicycle Facilities Plan Implementation Project Manager: A. Tonella-Howe Approved ID: WR140C Exp (thousands): $ 270 Project : Work includes planning, design and construction of projects identified in 2010 Pedestrian and Bicycle Facilities (PBF) Plan update. On going effort to build new or improve existing facillities for pedestrians and bicyclists as defined in the PBF Plan. In some ares, the City's existing transportation system does not provide adequate facilities for non-motorized uesrs. PBF facilities need to be designed and built to fill in gaps in the existing PBF system. Prior Council Review: 2012-2017 Transportation Improvement Program 2012 2013 2014 2015 2016 2017 2018 Construction 39 39 39 39 39 39 39 234 Design Services 4 4 4 4 4 4 4 24 Project Management 2 2 2 2 2 2 2 12 45 45 45 45 45 45 45 270 2012 2013 2014 2015 2016 2017 2018 Street Fund 45 45 45 45 45 45 45 270 Staff Responsible: A. Tonella-Howe Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 75 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 113

Safe Routes to School Project Manager: C. Morris Approved ID: XR320R Exp (thousands): $ 300 Project : In partnership with the Mercer Island School District, identify and construct safe walk routes within the walking zone to the Island's elementary schools. The 2013 project focus is Island Park Elementary. West Mercer Elementary was the focus in 2011/2012 and Lakeridge Elementary was the focus in 2009/2010. There is a growing interest in providing school children and their parents with safe non-motorized routes to school. Parents often drive their children to school because there is a lack of safe walking routes to school. Fifty percent of students living in the walk zone of one elementary school traveled to school by automobile in 2008. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 80 0 80 0 80 0 240 Design Services 0 10 0 10 0 10 0 30 Project Management 0 10 0 10 0 10 0 30 0 100 0 100 0 100 0 300 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 100 0 100 0 100 0 300 Staff Responsible: C. Morris Start Date: 01/01/2013 End Date: 10/31/2013 Labor Hours: 200 Public Involvement: As Needed H - 114 City of Mercer Island 2013-2014 Budget

East Mercer Way Roadside Shoulders, Phases 8-10 Project Manager: C. Morris Approved ID: XR310R Exp (thousands): $ 1,010 Project : This program continues the construction of paved shoulder along the southbound side of East Mercer Way. Phases 8, 9, and 10 propose to construct shoulders from the 6200 Block to the 7400 block. Pedestrians and bicyclists regularly use East Mercer Way, but lack of shoulders can make the roadway hazardous for these users. Paved roadside shoulders exist along East Mercer Way from I-90 to the 6200 block. A roadside shoulder development program for the Mercer Ways was implemented in 2002. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 254 0 0 283 238 0 775 Design Services 0 48 0 0 56 42 0 146 Project Management 0 30 0 0 33 26 0 89 0 332 0 0 372 306 0 1,010 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 332 0 0 372 306 0 1,010 Staff Responsible: C. Morris Start Date: 01/01/2013 End Date: 11/01/2013 Labor Hours: 300 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 115

North-South Bike Route near Island Crest Park Project Manager: A. Tonella-Howe Approved ID: XR140D Exp (thousands): $85 Project : Provide bicycle improvements adjacent to Island Crest Way between SE 63rd Street and Island Park Elementary. PBF Plan identifies completing connectivity of ped/bike facilites as a high priority, including identifying a route parallel with and adjacent to, Island Crest Way. The west side of ICW does not provide adequate facilities for non-motorized uesrs. The east side has adequate facilites that requires some vegetation management and signage. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 Construction 0 85 0 0 0 0 0 85 2018 0 85 0 0 0 0 0 85 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 85 0 0 0 0 0 85 Staff Responsible: A. Tonella-Howe Start Date: 05/01/2013 End Date: 08/30/2013 Labor Hours: 200 Public Involvement: As Needed H - 116 City of Mercer Island 2013-2014 Budget

SE 53rd Place - New PBF Project Manager: C. Morris Approved ID: Exp (thousands): $ 260 Project : In conjunction with the street resurfacing project, construct new bicycle facilities on SE 53rd Place in accordance with the PBF Plan. On-going effort to build new or improve existing facillities for pedestrians and bicyclists as defined in the PBF Plan. Existing shoulder area exists on the south side (downhill) for pedestrian and bicycle use. No facility exists on the north side for uphill bicycle use. Prior Council Review: 2013-2018 Transportation Improvement Plan 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 250 0 0 250 Project Management 0 0 0 0 10 0 0 10 0 0 0 0 260 0 0 260 2012 2013 2014 2015 2016 2017 2018 Street Fund 0 0 0 0 260 0 0 260 Staff Responsible: C. Morris Start Date: 01/01/2016 End Date: 10/30/2016 Labor Hours: 150 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 117

Small Technology/Equipment Items Project Manager: C. Corder Approved ID: XG150T Exp (thousands): $ 150 Project : Set aside funds for purchase of small items of office equipment and technology. Ability to respond to unanticipated needs for new technology components and small office equipment items. Planned replacement of technology items and office equipment is budgeted in the CRP and operating budgets. From time to time, new products become available to improve staff efficiency. Prior Council Review: 2009-2010 Budget 2012 2013 2014 2015 2016 2017 2018 Technology & Equipment Acquisition 50 25 25 25 25 25 25 150 50 25 25 25 25 25 25 150 2012 2013 2014 2015 2016 2017 2018 General Fund 50 25 25 25 25 25 25 150 Staff Responsible: C. Corder Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 0 Public Involvement: Not Applicable H - 118 City of Mercer Island 2013-2014 Budget

Thrift Shop Expansion Plan Project Manager: N. Treat Approved ID: XG305P Exp (thousands): $25 Project : An analysis of Thrift Shop retail sales indicates that sales could be significantly increased if the Thrift Shop had additional physical space (remodel or expansion). In order to thoughtfully develop a proposed capital project that serves the needs of the Thrift Shop a plan is needed. Thrift shop sales need to increase in order to eliminate the General Fund subsidy of Youth and Family Services starting in 2015. The Thrift Shop experiences heavy use year round. The Thrift Shop has fully utilized its existing physical space and could increase sales with additional physical space (remodel, expansion, or a new facility). Prior Council Review: 2012 2013 2014 2015 2016 2017 Design Services 0 25 0 0 0 0 0 25 2018 0 25 0 0 0 0 0 25 2012 2013 2014 2015 2016 2017 2018 Other 0 25 0 0 0 0 0 25 Staff Responsible: N. Treat Start Date: 01/31/2013 End Date: 12/31/2013 Labor Hours: 100 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 119

Sustainability Project Investment Project Manager: N. Treat Approved ID: XG152C Exp (thousands): $50 Project : Provide seed funding for projects that further City sustainability policies. Operation and maintenance savings (i.e. reduced energy costs) from sustainability projects will be tracked and the savings will be dedicated to funding additional sustainability projects. The City can achieve ongoing operations and maintenance savings by capital investments in sustainability projects. For example, replacing street lights with energy efficient LED lights. Prior Council Review: The City has funded numerous projects over time that further sustainability goals but the City has not established a specific sustainability capital project. The City has not tracked savings resulting from sustainability projects nor ear-marked such savings for reinvestment in additional projects. None 2012 2013 2014 2015 2016 2017 Construction 0 50 0 0 0 0 0 50 2018 0 50 0 0 0 0 0 50 2012 2013 2014 2015 2016 2017 2018 General Fund 0 50 0 0 0 0 0 50 Staff Responsible: NRT Start Date: 01/13/2013 End Date: 12/31/2013 Labor Hours: 40 Public Involvement: Focus Group H - 120 City of Mercer Island 2013-2014 Budget

Fire Station 92 Replacement Project Manager: C. Tubbs Approved ID: XG300R Exp (thousands): $ 4,703 Project : Replacement of Fire Station 92 is at a preliminary cost estimate of $4.7 million. The pre-design study by Miller Hull Architects (June 2012) was presented to Council at the June 16th mini-planning session. A levy lid lift waw approved by the voters in November 2012. Final design will be completed in 2013. Construction would be completed by early 2015. The assessment of the facility is concerned with the construction of the facility, structural observation, systems, and the programmatic function of the station as a modern fire station. Fire Station 92 was built in 1962, with sleeping quarters added in 1984. It houses three firefighters, who staff an engine, midi pumper, and aid car. The building does not meet existing codes, regulations and program needs. Structural integrity during a seismic event is a concern. Prior Council Review: AB4476 2009; AB4717 2012 2012 2013 2014 2015 2016 2017 2018 Construction 0 2,113 2,100 0 0 0 0 4,213 Design Services 0 490 0 0 0 0 0 490 0 2,603 2,100 0 0 0 0 4,703 2012 2013 2014 2015 2016 2017 2018 Other 0 2,603 2,100 0 0 0 0 4,703 Staff Responsible: C. Tubbs Start Date: 01/01/2012 End Date: 12/31/2014 Labor Hours: 300 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 121

Sewer Lake Line Clean-Outs Project Manager: G. Boettcher Approved ID: Exp (thousands): $ 550 Project : Provide access points for cleaning and other routine maintenance of older sections of the Sewer Lake Line. Pump station monitoring in 2010 found grease concentrations at high levels. There have been three documented plug-ups in the Lake Line due to grease over the past several years. A major plug-up causing sewage backups in waterfront homes could result in claims exceeding the cost of installing clean-outs to allow preventative maintenance. Older sections of the Sewer Lake Line were constructed without access points for cleaning and other routine maintenance. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 Construction 0 0 0 0 0 550 0 550 2018 0 0 0 0 0 550 0 550 2012 2013 2014 2015 2016 2017 2018 Utilities - Sewer 0 0 0 500 0 550 0 1,050 Staff Responsible: G. Boettcher Start Date: 01/01/2015 End Date: 12/31/2015 Labor Hours: 200 Public Involvement: As Needed H - 122 City of Mercer Island 2013-2014 Budget

Basins 10 & 32b Dissolved Metals Source Identification Project Manager: P. Yamashita Approved ID: XD310C Exp (thousands): $80 Project : Systematic investigation of the drainage systems in Sub-Basins 10 & 32b to identify any significant sources of dissolved copper and zinc entering the drainage system. A subsequent phase will involve source control and treatment of stormwater from the sources identified through this project. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Mercer Island staff have monitored water and sediment quality within five to six selected basins over the past decade. The results reflect elevated levels of dissolved copper and zinc in sub-basins 10 and 32b. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Project Management 0 40 40 0 0 0 0 80 0 40 40 0 0 0 0 80 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 40 40 0 0 0 0 80 Staff Responsible: P. Yamashita Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 50 Public Involvement: Not Applicable City of Mercer Island 2013-2014 Budget H - 123

Water Quality Treatment Improvements Project Manager: B. Sansbury Approved ID: XD311C Exp (thousands): $ 300 Project : Installation of two to three water quality treatment devices per year to reduce pollutant loads in stormwater runoff before entering watercourses and/or Lake Washington Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Many of the island's basins have watercourses causing downcutting/erosion in various locations. Some drainage systems may be conveying illicit polluted discharges to Mercer Island's streams and the Lake. One source may be sediment laden runoff from streets. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 69 69 69 0 69 0 276 Project Management 0 6 6 6 0 6 0 24 0 75 75 75 0 75 0 300 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 75 75 75 0 75 0 300 Staff Responsible: B. Sansbury Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 240 Public Involvement: Not Applicable H - 124 City of Mercer Island 2013-2014 Budget

Basin 32b Stormwater Treatment Improvements Project Manager: P. Yamashita Approved ID: Exp (thousands): $ 290 Project : Implementation of stormwater treatment improvements in Sub-Basin 32b following the completion of the Sub-Basin 10 & 32b Dissolved Metals Source Identification Project. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Staff has monitored water and sediment quality in five to six selected basins over the past decade. Elevated levels of dissolved copper and zinc have been found in sub-basins 10 and 32b. A source identification effort is planned for 2013-2014 to identify sources of these metals. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 20 125 20 125 290 0 0 0 20 125 20 125 290 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 0 20 125 20 125 290 Staff Responsible: F. Gu Start Date: 01/01/2015 End Date: 12/31/2018 Labor Hours: 60 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 125

Street Related Drainage Improvements Project Manager: C. Morris Approved ID: XD312C Exp (thousands): $ 470 Project : Annual program that provides drainage improvements ahead of residential roadway overlays. Protecting Lake Washington from siltation and other water quality problems and safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. Some of the Island's residential streets do not have formal or adequate drainage systems. Prior to repaving residential streets, drainage improvements are constructed to provide adequate drainage. Prior Council Review: 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 68 68 80 80 80 80 456 Project Management 0 7 7 0 0 0 0 14 0 75 75 80 80 80 80 470 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 75 75 80 80 80 80 470 Staff Responsible: C. Morris Start Date: 01/01/2013 End Date: 12/31/2014 Labor Hours: 230 Public Involvement: As Needed H - 126 City of Mercer Island 2013-2014 Budget

Drainage System Extensions (2015-2018) Project Manager: P. Yamashita Approved ID: Exp (thousands): $ 200 Project : Storm drainage system extensions in areas lacking drainage systems. For 2016, the neighborhood north of Clise Park bewteen 84th & 86th Ave. SE and SE 36th & SE 39th St. For 2018, the neighborhood south of Shorewood Apts. between 88th & 90th Ave. SE and SE 36th & SE 39th St. Protecting Lake Washington from siltation and water quality problems while safely conveying stormwater to the Lake is a primary responsibility of the City's Storm and Surface Water Utility. The Island's drainage system is largely complete. However, some localized areas are not served by a formal public drainage system. These areas are in need of improvments. Prior Council Review: Comp Basin Review, 2011-2012 Budget 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 100 0 100 200 0 0 0 0 100 0 100 200 2012 2013 2014 2015 2016 2017 2018 Utilities - Storm Drainage 0 0 0 0 100 0 100 200 Staff Responsible: F. Gu Start Date: 01/01/2016 End Date: 12/31/2018 Labor Hours: 100 Public Involvement: As Needed City of Mercer Island 2013-2014 Budget H - 127

New Pressure Reducing Valve (PRV) Station Installation Project Manager: R. Lin Approved ID: Exp (thousands): $ 250 Project : Install new PRV Station(s) to regulate the water pressure so that water supply pressure are within the acceptable range. Investment in these improvements will provide a safe and cost effective water distribution system. Many water mains, most of them on dead-ended streets, have pressure exceeding 80 pounds per square inch (PSI). PRV Stations can control the discharge pressure so it stays within the acceptable range. Prior Council Review: None 2012 2013 2014 2015 2016 2017 2018 Construction 0 0 0 0 0 0 240 240 Project Management 0 0 0 0 0 0 10 10 0 0 0 0 0 0 250 250 2012 2013 2014 2015 2016 2017 2018 Utilities - Water 0 0 0 0 0 0 250 250 Staff Responsible: R. Lin Start Date: 01/01/2018 End Date: 12/31/2018 Labor Hours: 250 Public Involvement: As Needed H - 128 City of Mercer Island 2013-2014 Budget

CAPITAL IMPROVEMENT PROGRAM Six-Year Fund Statements This section includes six year capital spending plans for the following funds: Street Fund CIP Fund Technology and Equipment Fund Water Fund Sewer Fund Storm Water Fund