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Home My WebLink About24. 15-300 JUNE 9, 2015 15-300 RESOLUTION (CARRIED__7-0_____ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: APPROVE CAPITAL IMPROVEMENT PROGRAM (CIP) POLICY INITIATED BY: CITY ADMINISTRATION LONG RANGE FINANCE COMMITTEE RECOMMENDATION: Approved WHEREAS, the establishment of a formal policy setting forth the purpose and parameters for a Capital Improvement Program and setting forth the process for adoption of such a program is an effective contribution to the financial management practices of the City of Oshkosh; and WHEREAS, this policy will provide a clear and transparent decision making process; and a format to manage and plan capital spending for multiple years; and WHEREAS, the Long Range Finance Committee for the City of Oshkosh has reviewed and recommended the adoption of the attached Capital Improvement Program (CIP) Policy. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached Capital Improvement Program (CIP) Policy is hereby approved. BE IT FURTHER RESOLVED that this policy shall be effective beginning on or after the date of passage of this resolution. CITY OF OSHKOSH Capi[al Improvemeot Program(CIP)Policy Policv Statemeut The establishment of a formal policy governing the purpose and aceeptable pazameters of a Capital Improvement Program(CIP) is an effective wntribution to the financial management prac[ices of the City of Oshkosh. A formally adopted policy will provide a decision making process based on evalua[ioq selection,and multi-year scheduling of capi[al projects. Puroose The puryose of this policy is[o manage and plan capital spending for multiple years and maintain adequate debt service capaciTy for curtent and future needs. This will also ensure the city is able to deliver services for citizens, and maintain and improve adequate infrastmcmre. In addition it is importan[[o minimize tax spikes and avoid large rnte increases related to capi[al spending while maintaining a reliable infrastructure for our citizens and employees. S[rateeic Plan The City of Oshkosh adopts a new S[ra[egic Plan every two years that provides a"roadmap"for the City's future. Depending o� intemal and external circumstances,the Shategic Plan contains several priority goals for the CiTy[o undertake.Each goal is intended to support the larger vision for the CiTy and to point[he way of progress[oward that visioa The goals of the Strategic Plan are incorporated in the annual Capital Improvemen[Program development process, providing City staff the framework in which[o allocate resources to meet the goals. Defiui[ions Capital Outlav—Individual items with minimum value of at leas[$5,000 and life grea[er than one year(Included in opera[ions budget). Caoital Projec[—Individual items wi[h minimum value of at leut$1Q000 and has expected life of a[least ten years (Nu[ included in operations budget). C�a ital Improvement Proeram(CIP)—A comprehensive schedule of approved capital improvement projects. The program shall be for a five-year period. The program shall be annually revised and shall meet borrowing guidelines provided by the Common Council for the Frs[two years of Ihe program. The remaining[hree years will provide an es[imate of the financial resources needed [o complete the program. Useful Life Policv All CiTy asse[s will be assigned a useful life as a means[o plan for capital projec[expendi[ures,as well as meet Govemmental Accounting S[andards Board's(GASB) Statemen[34 which requires State a�d Local govemments [o depreciate their exhaustible capital assets, including inftas[rucmre. The term "useful life'will be determineA by ei[her accep[ed standards &practices and/or best estimate bued on industry or prior experience(s). Recommended es[imates for"useful liFe°are as follows: Buildings and Building Improvements Parking Lots 25 years Buildings Foundation/Frame/Stmc[ure 40 years Pa[hs and Trails 25 years Building Improvements 20 years Ae[aining Walls 20 years Tennis& Basketball Courts 20 years Infrastructure ' Roads& Highways(includes curb&gutter) Machioery and Equipment Sealcoats 3 years Business/Office Equipment 8 years Asphalt(Cold-Mixed) 5 years Cus[odial Equipment 5 years Asphal[(Ho[-Mixed) l2 years Fire Department Equipment 7 years Concrete Pavement 25 years Fumiture l5 years Sewer Mains, Lift Stations 50 years Grounds Equipment—Mowers 7 years Sani[aryMains 50years KitchenEquipment—Appliances 10years S[orm Mains 40 years Mounted Equip w/Truck Chassis 8 years Sidewalks 20 years Outdoor Equipment—Playgrounds 20 years Street Lights 30 yeazs Plazas and Pavilions 40 years Water Mains � 95 years Radio Communications 7 years Wa[er System 40 years Wa[er Meters 20 years Wells& Pump Houses 30 years Vehicles Land/Land Improvemeuts Squad Cars 4 years Land No Deprecia[ion Transit Buses 10 years Athletic Fields, Bleachers 15 years Cazs, Light Tmcks&Vans 10 years Benches, I'ables, Grills 5 years Heavy tmeks(more than 13,OOOIbs) 10 years Fencing,Gates 20 years Fire Trucks I S years Landscaping, Ball Park 25 years Heary Equipment-Loaders,Graders 10 years Ou[door Equipment 20 years Outdoor Lighting 20 years CIP Development Process The Capital Improvemen[Program will be developed on an annual basis and follow [he process below as much as possible. Major Milestones Time Frame Process Step Delivereble/Output Partici aots Review of CIP Policy January Long Range Finance Possible recommendation to Council Analysis of available and February[o March Director of Finance Established parame[ers for boaowing accep[able funding levels for Long Range Finance levels and expec[ed expenditure limi[ for ro�ects in the CIP. C�. Major Milestoues Time Frame Process Step Deliverable/Ootpot Participants Submission of projec[requests Mon[h of April Departmen[Heads All requests sent to ClP documen[ covering five-year period by Staff Members developer. departmen[dirutor on CIP requestform and scoring sheet Preliminary CIP document Month of June Dep[.of Public Works Draft CIP document. crea[ed Finance De artmen[ Department directors review of Mid]une CiTy Manager Preliminary CIP document. project reques[s wi[h CiTy Direc[or of Finance Manager and Finance Director. Department Heads and S[aff City Manager evalua[ion of July City Manager Recommended CIP document. projects based on review criteria Direc[or of Finance and boaowin limits. Presentation of the proposed August City Manager Comple[ed review ensuring alignment five-year CIP to Hie Plan Planning Department with Compreheusive Plan. Commission for consideration. Presentation of[he proposed Mon[h of Oc[ober Ciry Manager Receive commeuts and direc[ion from five-year CIP[o Common Direc[or of Finance Common Council regarding projec[s for Council for consideration. Departmen[Heads and tinal recommendation. Staff Recommendation to Ihe November City Manager Adopred five-year CIP Common Council for final ado tion. CIP Rankine Process ' Thirteen evaluation criteria have been developed to assis[with prioritizing ini[ial project reques[s. Each project included in[he CIP will be evaluated against this criterion.This ensures[he mos[objective process possible and leads[o consis[en[decision making. The scoring which is derived from the tools below will assist the City Manager in priori[izing and preparing the final CIP plan. Every projec[is evaluated against each criterio�and assigned points on a scale of 15, IQ 5, or 0.The projec[review cri[erion consis[s of the following ca[egories: • Confortnity to Approved City Strategic Plan • Projectlltem Life or Department Plan(s) • Hs[ima[ed Frequency of Use(Average Per • Financial Commitments and Leverage of Year) Outside Funding • Service Level • Manda[es • Linkages to Other CIP Projects or Other • Public Heal[h and Safety Organiza[ion Projects • Implementation Feuibility • Infrastructure Inveshnentl Pro[ection • Operating Budget Impact • Encouragemen[of Economic Developmen[ • Percentage of Popula[ion Served , The CiTy Manager also reserves[he right[o assess an exva 5 points per project. 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