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Memo- Initial Review- 1999-2003 Capital Improvement PlanMemorandum Office of the City Manager To: Honorable Mayor and Members of the City Council From: Steven C. Mielke, City Manager Date: June 5, 1998 Subject: Initial Review - 1999 -2003 Capital Improvement Plan Each year the city reflects on the communities needs for capital improvements, and establishes a plan for the implementation of projects determined necessary and appropriate. The five -year Capital Improvements Plan is the vehicle the city uses for the planning of major purchases, primarily in the area of utilities, transportation systems, parks, and buildings. Attached is the draft plan for the 1999 -2003 Capital Improvements Plan. There are two segments to this plan, one being expenditures and the other being revenue sources. The Capital Improvement Plan currently indicates expenditures equaling almost $22 million over the next five years, from a variety of funding sources. The largest proportionate share of expenditures fall in the area of transportation, with several major roadways slated for reconstruction over the next five years. There are several projects that draw attention and should be considered for discussion by the City Council: • Radio read water meters Staff has explored for a number of years, the concept of installing radio read water meters in homes and potentially commercial properties as well. The concept behind radio read water meters is that of efficiency and effectiveness on reading meters, using radio transmitters in mobile vehicles that are able to "wake up" water meters, read those meters, and put them back to sleep. There are many reasons to consider radio read water meters, but some of the major reasons would include: the ability to read all meters within a mater of hours versus weeks; the ability to increase our billing cycle from quarterly to monthly or bimonthly, thus making our bills more affordable and easier to plan for by consumers; the ability to reduce time spent on meter reading and dedicating that time to other uses or reducing staff time completely, better cash flow by increasing our billing periods. Initial review CIP Page 2 • Public Works Storage Facility initreviewcip Parking lot improvements It was previously identified to the City Council that the fund used for the maintenance and upkeep of city parking lots will be depleted in the next few years. A dialogue on the potential revenue sources to maintain the city lots will need to begin as we expend the remaining dollars The public works site has need for additional storage space. The Capital Improvement Plan calls for a new storage facility, built on the existing site to accommodate that need. Revenue sources are somewhat limited for this expense, but could include things like a bond referendum, or a lease purchase option. Fire Storage Facility The fire department has been leasing space for a number of years to store equipment and a fire vehicle off - site. The fire department wishes to construct a facility in the future to house some of its storage needs. • Utility rates Our studies indicate that the sanitary sewer fund is a very healthy fund, compared to the level of expenses projected in the next five years. While additional study is necessary, it is clear that no immediate need exists to raise rates. Conversely, the water and storm water accounts will need rate adjustments in the coming years in order to complete the list of items identified in the Capital Improvements Plan. Some thought should be given to adjusting rates in all three areas, to accommodate expenses in their appropriate expense area. Staff will present an outline of the Capital Improvements Plan at the work session, along with a review of the funding sources. We would appreciate any initial feedback or questions that may arise, as well as ideas or suggestions for other areas to consider. A copy of the calendar for the CIP adoption is attached. �eriuesGerie - �\ � \�! E PROD flints ea/ \/ �.. . .. . .. .._ o _ t d \\ \ . \ \ \\ 1 A) s.. . .. . . . S.F. % nt t S.F. § /� \ d} //7 0 0 �.� x© a r\ «dam ad6E2 «- TOTAL < «22\ 2: 85°#0 500 ..�»� ��� � «- ilk « « . �. � . . .. ... .. � � � 9C /0 \ y 5 0 Q /5 9f0 2 000 <275, O 2001.:-, 002