Tempe Mayor & City Council Hugh Hallman Mayor Shana Ellis Vice Mayor Mark Mitchell Council Member Onnie Shekerjian Council Member P. Ben Arredondo Council Member Joel Navarro Council Member Corey Woods Council Member Capital Improvements Program Budget FY 2010-11 Charles W. Meyer City Manager Jerry Hart Financial Services Manager Cecilia Velasco-Robles Deputy Financial Services Manager Tom Mikesell Lead Budget and Finance Analyst Mark Day Senior Budget and Finance Analyst Adam Williams Senior Budget and Finance Analyst Natalie Winger Accounting Supervisor Anita Erspamer Executive Assistant About the cover: Photo: Newly Renovated Tempe History Museum The Tempe History Museum was founded by the Tempe Historical Society and opened to the public in 1972. In 1984, the museum became a division of the City of Tempe’s Community Services Department. In 2006, Tempe voters approved a bond issuance that would fund a major renovation of the museum. The new "Tempe History Museum" opened to the public in February 2010. Table of Contents Introduction CIP Message ...................................................................................................................................... Resolution of Adoption ........................................................................................................................ Capital Budget Incremental Impact on FY 2010-11 Operating Budget................................................ Capital Budget Strategic Focus........................................................................................................... Capital Improvements Projects Map ................................................................................................... Page 1 4 5 6 7 Schedules and Summaries 2010-15 Capital Improvements Program Summary ............................................................................ 2010-15 Capital Improvements Program Source of Funds ................................................................. 2010-11 Capital Improvements Program Fund Balances.................................................................... Remaining General Obligation Bond Authorizations & Long-Term Outstanding Debt................................ Legal Bonded Debt Limits .................................................................................................................. City Capital Budget and Debt Policies ................................................................................................ Ten Year Historical Trends ................................................................................................................. 8 9 10 11 12 13 14 Enterprise ................................................................................................................................................. Water .................................................................................................................................................. Wastewater ......................................................................................................................................... 15 16 25 Special Purpose ....................................................................................................................................... Transit ................................................................................................................................................. Rio Salado .......................................................................................................................................... 29 30 34 General Purpose ...................................................................................................................................... Police Protection ................................................................................................................................. Fire Protection..................................................................................................................................... Park Improvements / Recreation......................................................................................................... General Governmental ............................................................................................................................... 37 38 40 42 44 Transportation.......................................................................................................................................... Transportation and R.O.W. Improvements.......................................................................................... Traffic Signals/Street Lighting ............................................................................................................. 51 52 55 Office of Management and Budget Staff ................................................................................................ 57 CIP Message June 30, 2010 To the Honorable Mayor and Members of the City Council: Pursuant to the Tempe City Charter, the City Manager prepares and submits a Capital Improvements Program (CIP) annually to the Council. The CIP is a five-year financial plan for the acquisition, construction, expansion, or rehabilitation of infrastructure and capital assets. Capital Projects typically have one or more of the following characteristics: (1) expenditures which take place over two or more years, requiring continuing appropriations beyond a single fiscal year; (2) funding with debt because of significant costs to be shared by current and future beneficiaries; (3) a systematic acquisition over an extended period of time, and; (4) scheduled replacement or maintenance of specific elements of physical assets. CIP PROCESS In September 2009, the CIP process began with the CIP Coordinating Committee meeting to review and discuss guidelines, budget request forms, and availability of funds. This Committee consisted of City department heads, departmental capital project managers, and Financial Services staff. Based on guidance provided at this meeting, City departments submitted requests for projects to be included in the Capital Improvements Program. After all project submissions were received, a follow-up ‘discovery’ meeting was held in early December 2009 to discuss changes to previously approved projects and to review new project requests. Through meetings with department managers and other key department representatives held over the ensuing months, the total requested program was extensively reduced to meet the available resources. Based on these meetings, a balanced five-year capital program was recommended to the City Manager. Although capital projects are scheduled throughout the five-year plan, only those projects during the first year of the plan are adopted as part of the City's annual budget. The first year of the CIP constitutes the Capital Budget. The remaining years within the CIP serve as a guide for future planning and are subject to annual review and modification in subsequent years. ANNUAL BUDGET PROGRAM SUMMARY On March 25, 2010, the City Council held a public Special Budget Session to examine the capital program including funding sources, debt service implications, operating budget impacts, and project priorities. Recognizing severely limited City revenues and financing options produced by the economic downturn, the City Council held several subsequent meetings in April and May to further evaluate CIP project priorities. The process culminated with Council adoption of the Capital Improvements Program on June 10th 2010. As shown in the following chart, the City of Tempe’s Financial Program for fiscal year (FY) 2010-11 totals $418 million. Of this amount, approximately $48 million is for projects included in the Capital Budget. FY 2010-11 Total Financial Program Operating Budget Capital Budget Total ($ millions) $371.4 CAPITAL BUDGET OVERVIEW $48.3 The Capital Budget consists of the following program areas: Enterprise, General Purpose, Special Purpose, and Transportation projects. The Enterprise program totals $43.6 million and includes Water and Wastewater projects, which as shown in the table on the following page, account for 90% of the total Capital Budget in FY 2010-11. The General Purpose program includes Police, Fire, Parks, and General Governmental projects and totals $3.6 million. $419.7 Operating Budget, 88% CIP, 12% 1 CIP Message ‚ Continued pay-as-you go funding for the Municipal Arts FY 2010-11 CIP by Program $ Millions Enterprise Program ($440 thousand) % of Total ‚ Continued pay-as-you go funding for the repair, 43.6 90% General Purpose 3.6 7% replacement and maintenance of various City facilities ($510 thousand) Special Purpose .8 2% ‚ New federal grant funding to enhance the City’s Energy Transportation .3 1% Total Conservation Program ($375 thousand) $48.3 Special Purpose Program Funding for the Transit program ($446 thousand) including: The Special Purpose program includes Transit and Rio Salado projects, and represents $800 thousand or 2%, of funded projects in FY 2010-11. The Transportation program traditionally includes new funding for a variety of street and sidewalk construction, traffic signals, and lighting projects; however, due to reduced financing capacity (as discussed below), the FY 2010-11 program includes only one (1) project which amounts to less than 1% of the Capital Budget. ‚ New federal grant funding for the design and construction of a new section of the Tempe Rio Salado multi-use path system ($446 thousand) Funding for the Rio Salado Program ($327 thousand) including: ‚ Continued funding to complete repairs to the Town CAPITAL BUDGET HIGHLIGHTS Lake's downstream dam area as required by Arizona Department of Water Resources ($227 thousand). Following are highlights from the Capital Budget for FY 2010-11: CAPITAL IMPROVEMENTS PROGRAM FINANCING Enterprise Program As shown in the chart below, Tempe's capital program has historically been funded through a combination of bonds and other sources, including pay-as-you-go financing, outside revenues, grants and capital project fund balances. City Water system projects ($31 million) including: ‚ Continued bond funding for required water quality improvements to meet current and future water quality regulations at the South Tempe Water Treatment Plant (STWTP) ($18.7 million) The availability of these various revenue sources and the capacity to use them are principal factors in determining the overall size of each annual Capital Budget and has contributed to the decreasing size of the Capital Budget over the past three years for various reasons. ‚ Continued bond funding for the design and construction of a new Environmental Laboratory Facility ($5 million). City Wastewater system projects ($12.6 million) including: CIP Funding FY 2006-07 to FY 2010-11 st ‚ Continued bond funding for 91 Avenue Wastewater $250 $Millions Treatment Plant capacity expansion ($12.5 million) General Purpose Program Funding for the City’s Police and Fire Protection Programs ($1.5 million) including: $200 $150 $100 $50 federally mandated radio conversion to 800 Megahertz. ($600 thousand) Bonds Funding for the General Governmental Program ($1.9 million) including: ‚ Continued bond funding to complete the Tempe Public Library renovation ($115 thousand) 2 20 10 -1 1 20 09 -1 0 ‚ Continued bond funding for the Fire Departments 20 08 -0 9 20 06 -0 7 System Replacement ($890 thousand) 20 07 -0 8 $0 ‚ Continued bond funding for the Police / City Radio Other Sources Because FY 2008-09 included the final phase of large appropriations of City transit tax and federal grants as the main funding sources for the completion of the City’s share of the metropolitan Light Rail system, CIP funding sources other than bonds saw a sharp decline between FY 200809 and 2009-10. CIP Message ongoing basis to estimate the extent to which the City may issue additional tax supported debt. This active debt management ensures the City can efficiently analyze information such as declining property tax revenues and assess the long term implications for our debt portfolio in order to make proactive decisions about how much new debt capacity is available today. Bond appropriations between the same two years also decreased as a result of project progress and completions in the Enterprise Program which translated into declining funding requirements. The most significant factor decreasing FY 2010-11 capital funding availability, and the overall size of the Capital Budget, is the steep decline in local property values that resulted from the economic downturn. The City is projecting an estimated 35% decline in property values within the City which will negatively effect property tax revenue collections from FY 2010-11 through 2012-13. Debt management led to the decision to dramatically reduce the FY 2010-11 Capital Budget as projections indicated our current debt portfolio does not have the capacity to sustain new property tax supported debt service. Moreover, in accordance with the City’s debt management projections, the five year Capital Improvements Program allows for only $5.8 million of new property tax supported debt through FY 2014-15. The City will continue to monitor this condition as the economy improves. Since the majority of property tax revenue the City collects is the source of funding used to pay debt service on bonds, the City’s ability to bond finance new projects under the General Governmental and Transportation Programs in FY 2010-11 is critically diminished. This is the primary reason the FY 2010-11 Capital Budget is 50% smaller than the Capital Budget in FY 2009-10 Debt management is also a key financial practice contributing to the maintenance of the City’s favorable bond ratings. Tempe’s current G.O. bond ratings are shown below. In contrast, the City maintains the capacity to issue bonds to finance ongoing and new projects under the Enterprise Program because the funding source used to pay these bonds is revenue collected from user fees for water and wastewater services; not property tax revenue. In the FY 2010-11 Source of Funds table below, only $1.6 million of the $38.4 million in general obligation bonds is appropriated to finance projects under the General Governmental Program; the remainder is for water and wastewater projects. Notable is the recent May 2010 upgrade in Moody’s rating of the City’s creditworthiness from Aa1 to Aaa. The AAA rating from each rating agency is the highest credit rating possible and is a testament to the City’s prudent financial management practices. Fitch Moody’s Standard & Poor’s FY 2010-11 Sources of Funds $ Millions % of Total General Obligation Bonds Capital Projects Fund Balance Outside Revenue Pay-as-You-Go Financing $38.4 7.8 1.7 .4 Total $48.3 79% 16% 4% 1% AAA Aaa AAA CONCLUSION The five-year capital program serves as an excellent guide for future planning. In combination with the debt management plan, the capital program will ensure the City’s capital needs are met in a timely fashion with no impact to the City’s continued financial stability. FY 2010-11 Capital Budget funding sources other than bonds total $10 million which is approximately 60% less than were appropriated in FY 2009-10. This year over year decrease is almost solely attributable to reduced receipts and associated appropriations of federal grants and other outside revenue. Due to tremendous economy related Operating Budget problems faced over the last two years, pay-as-you-go financing has remained anemic. In closing, the completion of a budget requires the effort of many people. To the Mayor, City Council, City Manager, departmental managers and staff, and to the Budget Division whose efforts provided invaluable assistance to me in its preparation, I express my sincere appreciation. Respectfully Submitted, The FY 2010-11 funding sources are described in further detail in the Capital Improvements Program Source of Funds table in the Schedules and Summaries section, as well as in the individual project descriptions. DEBT MANAGEMENT PLAN In addition to the management of existing debt and associated reserves, the City also forecasts future debt within a framework of policy priorities and financial capacity. Current and anticipated capital improvement objectives, available operating revenue, tax base fluctuations, and reserve levels are all evaluated on an Jerry Hart, C.P.A. Financial Services Manager 3 4 Capital Budget Incremental Impact on FY 2010-11 0perating Budget The table below lists the two projects in the Enterprise Program with identified operating impacts, and includes the projected fiscal impact on the FY 2010-11 operating budget in the Water Fund. Although the City of Tempe prepares a Capital Budget separate from the Operating Budget, the two budgets are linked. These links include operating and maintenance costs associated with new facilities, debt service payments for new debt financed projects, new capital outlay appropriations, and pay-as-you-go financing from operating revenues. As shown in the diagram and table below, these incremental impacts total $7.7 million in FY 2010-11. Operating Budget $371.4 M CIP Impact $7.7 M FY 2010-11 Detailed Operating and Maintenance Impacts of Capital Improvements Capital Budget $48.3 M FY 2010-11 New Debt Service General Purpose Capital Outlay $2,940,600 128,870 4,060,742 New Operations and Maintenance 160,000 Water / Wastewater Fund Pay-As-You-Go Financing 436,463 Total $Amount Fund JGMWTP Water Quality Upgrades STWTP Improvements $110,000 50,000 Water Water Total Operating Impacts $160,000 Between the two projects, $75,000 is attributable to additional electricity costs from the two plant expansions, and $85,000 is associated with new equipment maintenance and waste disposal costs. Incremental Impact of Capital Budget on Operating Budget - All Funds Enterprise Program / Project Enterprise $7,726,675 As part of the Capital Improvements Program, departments are asked to identify those capital projects that have an impact on the operating budget, and quantify the impact in terms of operation and maintenance. Due to the severe adverse impact the economy has had on the City’s Operating Budget, the City continued to engage in extensive Operating Budget balancing efforts throughout FY 2009-10. This process not only coincided with the Capital Budget development process, but had a direct influence on the extent to which additional operating budget impacts from capital projects could be considered. This translated into whether or not a particular capital project could / would be approved based on whether or not it entailed additional operating budget impacts. Ironically, it was the negative effect the economy had on property tax revenues (as discussed on the preceding page), which had a more powerful influence over which projects could be approved. The combination of the stress the economic downturn caused to the City’s Operating Budget, along with dramatically reduced property tax revenue projections, eliminated the approval of any FY 2010-11 operating budget impacts except to the Water Fund. 5 Capital Budget Strategic Focus Because of the limiting effect the economy has had on the City’s capital finance options other than in the Enterprise Program, the FY 2010-11 Capital Budget is almost entirely centered on water and wastewater projects. The City establishes strategic issues, goals, and objectives to provide long range focus for resource allocation choices. The strategic issues, goals, and objectives are aligned to Council and community committees as follows: Water and wastewater projects fall under the strategic area of Community Sustainability, and as such they dominate all CIP projects by strategic concentration. This is representative of the City’s continuing reinvestment in water and sewer infrastructure to support new and existing development. • Community Sustainability • Education Partnerships • Housing • Mill & Lake District • Neighborhood Parks Rehabilitation & Maintenance • Quality of Life • Sports, Recreation, Arts & Cultural Development • Technology, Economic & Community Development • Transportation The Quality of Life strategic area is mainly represented by projects under the General Governmental Program that address the maintenance and appearance of City facilities and neighborhoods. Continued capital investment in the Police and Fire Departments’ radio systems contribute to the Technology, Economic & Community Development strategic area; and continued pay-as-you-go funding for the Municipal Arts program supports the City’s focus on Sports, Recreation, Arts & Cultural Development. The objective of each strategic team is to delineate longrange goals, formulate a cohesive strategy for each of the defined areas, and develop action plans to advance the City towards those strategic goals. The FY 2010-11 Capital Program organized by strategic issue is shown in the chart. Community Sustainability 90% Quality of Life 4% Sports, Recreation, Arts & Cultural Development 1% Technology, Economic & Community Development 3% Transportation 1% 6 Capital Improvements Projects Map 4 5 6 3 7 8 2 1 Location Project Description 1. South Tempe Water Treatment Plant Improvements 2. Environmental Laboratory Facility 3. Water Line Upgrade / Replacement on Rural Rd. (University - Apache) 4. Rio Salado Multi-use Path: Tempe – Phoenix (Priest Drive to SR 143) 5. Town Lake Downstream Dam Repairs - ADWR 6. Police / City Radio System Replacement 7. Fire Radio Replacement for Conversion to 800 MHZ 8. Tempe Public Library Renovation 7 2010-11 Capital Improvements Program Summary 2010-11 Funded Program 2011-12 31,046,338 8,255,001 11,114,001 7,218,000 6,687,000 64,320,340 12,600,000 43,646,338 15,234,000 23,489,001 25,300,000 36,414,001 12,250,000 19,468,000 17,417,800 24,104,800 82,801,800 147,122,140 446,000 530,000 1,220,000 2,462,000 - 4,658,000 327,000 773,000 4,480,000 5,010,000 960,000 2,180,000 27,040,000 29,502,000 7,520,000 7,520,000 40,327,000 44,985,000 Police 890,954 1,053,267 879,604 861,316 900,000 4,585,141 Fire 600,000 - - - - 600,000 Park Improvements 150,000 - - - - 150,000 Community Relations 250,000 - - - - 250,000 Community Services 551,463 234,890 364,140 194,680 241,048 1,586,221 - - - 200,000 1,323,000 1,523,000 1,028,000 535,828 - - - 1,563,828 100,000 3,570,417 1,823,985 1,243,744 1,255,996 2,464,048 100,000 10,358,190 275,000 - - 1,582,400 - 1,857,400 Traffic Signals / Street Lighting Total Transportation 275,000 425,000 425,000 350,000 350,000 1,582,400 - 775,000 2,632,400 Total General / Transportation 3,845,417 2,248,985 1,593,744 2,838,396 2,464,048 12,990,590 48,264,755 30,747,986 40,187,745 51,808,396 34,088,848 205,097,730 Program Additional Projected Needs 2012-13 2013-14 Total 5-Year Program 2014-15 Enterprise Program Water Wastewater Total Enterprise Special Purpose Program Transit Rio Salado Total Special Purpose General Purpose Program Community Development Public Works Water Utilities Total General Purpose Transportation Program Transportation and R.O.W. TOTAL PROGRAM 8 2010-11 Capital Improvements Program Source of Funds Program 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2011-12 Total 5-Year Program 2014-15 Enterprise Supported Water/Wastewater General Obligation Bonds Excise Tax Bonds 36,646,338 22,197,001 2,400,000 - - 61,243,339 - - 27,464,001 18,468,000 23,104,800 69,036,801 Capital Projects Fund Balance 6,000,000 - - - - 6,000,000 Development Fees 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 43,646,338 292,000 23,489,001 5,550,000 36,414,001 19,468,000 24,104,800 5,842,000 147,122,140 46,000 - - - - 46,000 400,000 287,000 1,100,000 2,394,000 - 4,181,000 City of Mesa Total Enterprise Supported Special Purpose Transit Capital Project Fund Balance Federal Grants Transit Tax Revenues Total Transit - 243,000 120,000 68,000 - 431,000 446,000 530,000 1,220,000 2,462,000 - 4,658,000 327,000 - - - - 327,000 - 2,000,000 960,000 7,040,000 - 10,000,000 Rio Salado Capital Improvements Reserve Mondrian Agreement Federal Grants Total Rio Salado Total Special Purpose - 2,480,000 - 20,000,000 7,520,000 30,000,000 327,000 773,000 4,480,000 5,010,000 960,000 2,180,000 27,040,000 29,502,000 7,520,000 7,520,000 40,327,000 44,985,000 1,605,954 1,173,267 916,604 90,197 - 3,786,022 General Purpose & Transportation General Obligation Bonds Unauthorized G.O. Bonds - - 70,000 1,061,316 900,000 2,031,316 Capital Projects Fund Balance 425,000 - - - - 425,000 Capital Improvements Reserve 1,038,500 196,328 - - - 1,234,828 436,463 234,890 364,140 194,680 241,048 1,471,221 339,500 3,845,417 644,500 2,248,985 243,000 1,593,744 1,492,203 2,838,396 1,323,000 2,464,048 4,042,203 12,990,590 48,264,755 30,747,986 40,187,745 51,808,396 34,088,848 205,097,730 WWW Fund Federal Grants Total General / Transportation TOTAL PROGRAM 9 Capital Improvements Program Fund Balances Program Enterprise Water/Wastewater Subtotal Enterprise Special Purpose Transit Rio Salado Subtotal Special Purpose General Purpose Police Protection Fire Protection Park Improvements General Governmental Subtotal General Purpose Transportation Transp. & R.O.W. Improvements Traffic Signals/Street Lighting Subtotal Transportation Total Program Estimated Fund Bal. 06-30-10 9,650,700 9,650,700 140,500 (40,300) Transfers from Other Funds 0 Outside Revenue 1,000,000 1,000,000 Appropriation 400,000 43,646,338 43,646,338 0 446,000 327,000 773,000 94,500 (40,300) (46,000) 890,954 600,000 150,000 1,929,463 3,570,417 36,490 0 6,000 (472,450) (150,000) 890,954 600,000 1,474,963 1,474,963 339,500 339,500 115,000 1,605,954 421,300 3,650,700 3,650,700 275,000 146,300 275,000 $48,264,755 164,800 $3,619,500 18,500 439,800 $10,090,500 Estimated Fund Bal. 06-30-11 36,646,338 36,646,338 400,000 327,000 327,000 36,490 156,000 (472,450) Bond Proceeds 18,500 0 $1,801,963 0 $1,739,500 10 0 $38,252,292 Remaining General Obligation Bond Authorizations Original Authorization Prior Issues 2010-11 Issue Remaining Authorization 2006 Program Water / Wastewater Police Protection Fire Protection Community Services / Park Improvements / Library Streets / Transportation Subtotal 172,000,000 172,000,000 14,000,000 14,000,000 2,500,000 1,620,000 14,000,000 14,000,000 0 0 600,000 280,000 0 8,000,000 7,765,000 210,500,000 209,385,000 600,000 515,000 235,000 113,300,000 52,025,302 36,646,338 24,628,360 10,900,000 5,855,000 890,954 4,154,046 115,000 36,775,000 2008 Program Water / Wastewater Police Protection Fire Protection 21,110,000 Community Services / Park Improvements / Library 51,800,000 14,910,000 Streets / Transportation / Storm Drains 44,200,000 75,000 241,310,000 72,865,302 37,652,292 130,792,406 $451,810,000 $282,250,302 $38,252,292 $131,307,406 2007 2008 2009 $243,265,000 $282,520,000 $285,735,000 $305,177,545 29,255,000 32,085,000 43,675,000 49,120,000 Fire Protection 8,855,000 8,695,000 11,010,000 10,785,000 Storm Drains 3,970,000 3,775,000 3,600,000 3,495,000 25,665,000 27,575,000 32,960,000 36,688,500 Subtotal TOTAL 21,110,000 44,125,000 Long-Term Outstanding Debt Summary June 30 2010 General Obligation Bonds Water / Wastewater Police Protection Park Improvements Library/Museum Streets/Transportation Total G.O. Debt Outstanding 1,455,000 1,395,000 4,940,000 11,721,500 47,300,000 51,550,000 60,080,000 60,855,000 359,765,000 407,595,000 442,000,000 477,842,545 1,220,000 625,000 1,220,000 625,000 0 0 0 0 16,720,000 16,175,000 Tempe Sports Authority Corp. Bonds / COP Certificates of Participation (COP) Total Tempe Sports Authority Corp. Bonds/COP Excise Tax Bonds Water / Wastewater Performing Arts 50,895,000 47,340,000 43,640,000 39,780,000 109,785,000 138,065,000 135,480,000 132,745,000 Rio Salado 33,810,000 32,320,000 30,760,000 29,130,000 General Governmental 23,990,000 23,400,000 29,680,000 28,815,000 2,130,000 2,050,000 1,965,000 1,875,000 $581,595,000 $651,395,000 $700,245,000 $726,362,545 Transit Cemetery Enterprise Total Long-Term Outstanding Debt 11 Legal Bonded Debt Limits Cities may also issue general obligation bonds for any purpose up to an amount not exceeding 6% of the secondary assessed value. Bonds issued under the 20% limit are subject to authorization by a majority vote at a city bond election. Under Article 9, Section 8 of the Arizona State Constitution, cities may issue general obligation bonds for purposes of water, wastewater, artificial light, open space preserves, parks, playgrounds and recreational facilities, public safety, law enforcement, fire and emergency services facilities and streets and transportation facilities up to an amount not exceeding 20% of the secondary assessed value. FY 2010-11 Bonded Debt Limits July 1, 2010 FY 2010-11 6% Bond Limit (1) Outstanding Bonded Debt-Previously Issued 20% $150,779,728 $502,599,094 (8,215,000) (469,627,545) Proposed Bonds to be Sold in FY 2010-11 Water/Wastewater 36,646,338 Park Improvements Public Safety / Law Enforcement 890,954 Fire and Emergency Services 600,000 Transportation Community Services 115,000 Debt Margin Available $105,803,390 (1) $31,480,595 The FY 2010-11 Bond Limit is based upon an estimated secondary assessed value of $2,512,995,468 compared to the FY 2009-10 secondary assessed value of $2,767,488,865. 12 City Capital Budget and Debt Policies Capital Budget Policy ƒ ƒ Estimated costs, potential revenue and funding sources shall be identified prior to any project being submitted for Council approval. A department which anticipates a capital project exceeding its adopted budget shall submit a plan to Council addressing the issue for its prior approval. A five-year capital improvements program, as required by City Charter, will be developed and updated annually including anticipated funding sources. In addition, a prior year capital project status report shall be presented to the Council for information purposes when the capital improvement budget is considered. ƒ The annual operating budget will provide for the adequate maintenance and the orderly replacement of the capital plant and equipment from current revenue where possible. ƒ Capital improvement operating budget impacts will be coordinated with the development of the Operating Budget. Future operating, maintenance, and replacement costs will be forecast as part of the City's annual long range financial capacity study. ƒ The City may provide for internal, pay-as-you go financing for its capital improvement program. Funding may come from fund balance reserves or any other acceptable means of funding. Debt Policy ƒ Debt will only be used to finance long term capital improvements and not be used to finance recurring operating expenses. ƒ In accordance with state law, the total value of General Obligation bonds issued for the purposes of water, wastewater, artificial light, open space preserves, parks, playgrounds, and recreational facilities, public safety, law enforcement, fire and emergency services facilities, and streets and transportation facilities cannot exceed 20% of assessed valuation. The total value of General Obligation bonds issued for all other purposes other than those listed above cannot exceed 6% of assessed valuation. ƒ ƒ Debt term should match the useful life of the capital project funded. ƒ Debt service schedules will be based upon level annual principal and interest payments. ƒ Overlapping debt issuances shall be included in the City’s financial reports. ƒ 13 Authorized debt shall be limited as follows unless authorization is obtained from the City council to exceed these limits - General obligation bonds shall follow the guidelines established in the Debt Management Plan - Excise tax bonds shall maintain revenue coverage limits of at least 3 times debt service - Improvement District bonds shall not exceed 5% of the City’s secondary assessed valuation - Short-term borrowing or lease/purchase contracts must be budgeted within the Operating Budget Benchmark ratios of per capita debt, debt service to operating revenue, and outstanding debt as a percent of full cash value will be updated regularly and incorporated into the Debt Management Plan. Ten Year Historical trends Fiscal Year 2001-02 Budgeted Capital Improvements Program Outstanding Principal FY End Debt Service Requirements P&I 85,541,430 205,950,000 26,675,235 Net Secondary Assessed Value % Change Property in Secondary Tax Rate ($) Assessed Valuation Primary Secondary Total 1,456,361,617 7.4 .53 .82 1.35 2002-03 95,318,794 252,480,000 23,996,164 1,556,492,294 6.9 .52 .83 1.35 2003-04 117,968,707 280,525,000 27,243,978 1,688,452,415 8.5 .55 .80 1.35 2004-05 177,118,222 362,225,000 27,696,707 1,768,877,385 4.8 .53 .82 1.35 2005-06 189,971,703 452,490,000 35,620,916 1,904,426,188 7.7 .52 .88 1.40 2006-07 196,728,491 581,595,000 44,105,855 2,006,703,332 5.4 .52 .88 1.40 2007-08 212,706,469 651,395,000 52,988,091 2,401,898,465 19.7 .51 .89 1.40 2008-09 168,033,325 700,245,000 59,795,499 2,656,948,194 10.6 .51 .89 1.40 2009-10 96,310,568 726,362,545 68,975,861 2,767,488,865 4.2 .49 .91 1.40 2010-11 48,264,755 730,950,082 69,753,500 2,512,995,468 -9.2 .52 .88 1.40 The budgeted CIP reached a historical peak in FY 200708 primarily due to increased spending in the Transit Program to fund the City's portion of design and construction of the metropolitan area light rail transit system. The FY 2008-09 CIP included the City's final contribution to light rail funding as the project was completed in December 2008. Outstanding Principal includes all forms of City debt, including general obligation, excise, and enterprise supported debt. Assuming minimal property tax supported bond sales in the next few years, and depending on the amount of new bonds issued to finance Enterprise program projects; annual outstanding principal may begin to decline for the first time in twelve (12) years due to the scheduled repayment of existing obligations. While the reduction in the FY 2009-10 CIP is largely due to the decreased spending in the Transit Program, bond appropriations between FYs 2008-09 and 2009-10 also decreased as a result of project progress in the Enterprise program which reduced funding requirements. Secondary Property Tax Revenue $26,000,000 Severe local property value declines caused by the economic downturn are the principal reason the FY 201011 CIP is 50% less than the 2009-10 CIP. The City estimates property values will have declined 35% as of FY 2010-11. $25,000,000 $24,000,000 $23,000,000 Because of an approximate two (2) year lag between when property is valued, and when property tax is collected based on that value, the -9.2% decline in secondary assessed property valuation in FY / tax year 2010-11 (shown in the table above) represents the first of three (3) fiscal years in which the City is projecting the property value declines which will negatively impact property tax revenue collections. $22,000,000 $21,000,000 $20,000,000 2009-10 2010-11 The -9.2% decrease in Tempe’s FY 2010-11 Secondary Assessed Property Valuation is estimated to result in a reduction of $3 million in Secondary Property Tax collections when compared to the prior fiscal year. Since revenue collected through the secondary component of the property tax is the source of funding to pay debt service on General Obligation bonds, the City's capacity to issue new property tax supported bonds to finance capital projects is projected to be extremely compromised for several years. On the other hand, the City retains the ability to issue bonds for water and wastewater projects (Enterprise program bonds) because the funding source used to pay these bonds is revenue collected from user fees for water and wastewater services; not property tax revenue. 14 Enterprise Water and Wastewater projects total $43.6 million in FY 2010-11 and account for 90% of the 2010-11 appropriated CIP budget The Enterprise component of the Capital Improvements Program consists of the Water and Wastewater programs. Combined, they constitute $43.6 million of the $48.3 million Capital Improvements Program for FY 2010-11. The City's capital budget for this area is driven largely by federal and state compliance requirements and associated plant capacity expansions. A total of $36.6 million of Water / Wastewater Bonds will be sold to fund these projects in FY 2010-11. These bonds are repaid by user charges for service delivery in both programs. The remaining program funding will come from development fees, and fund balances. Major Water Program projects in FY 2010-11 include continued upgrades at the South Tempe Water Treatment Plant (STWTP), the design and construction of a new Environmental Laboratory Facility, and numerous waterline improvements. Funding for continued expansion at the 91st Avenue Wastewater Treatment Plant dominates the FY 2010-11 Wastewater Program. 15 2010-11 CIP Projects - Water Program Project Name & Number Distribution System Fittings: 3299999 Funding Source 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2014-15 2011-12 Total 5-Year Program General Obligation Bonds Excise Tax Bonds Project Total 400,000 400,000 230,000 230,000 230,000 230,000 230,000 230,000 230,000 230,000 630,000 690,000 1,320,000 Environmental Laboratory Facility: 3203499 General Obligation Bonds 5,059,780 540,000 - - - 5,599,780 HVAC Replacement at all Three Water Wastewater Plants: 3209369 General Obligation Bonds 28,000 51,000 - - - 79,000 General Obligation Bonds Excise Tax Bonds Project Total 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 500,000 750,000 1,250,000 General Obligation Bonds Excise Tax Bonds Project Total - 300,000 300,000 6,080,000 6,080,000 - - 300,000 6,080,000 6,380,000 General Obligation Bonds Excise Tax Bonds Project Total 376,998 376,998 377,001 377,001 377,001 377,001 279,000 279,000 1,855,000 1,855,000 753,999 2,511,001 3,265,000 General Obligation Bonds 875,000 - - - - 875,000 General Obligation Bonds Excise Tax Bonds Project Total 100,000 100,000 100,000 100,000 100,000 100,000 - - 200,000 100,000 300,000 General Obligation Bonds Excise Tax Bonds Project Total 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 500,000 750,000 1,250,000 15,220,000 3,000,000 500,000 18,720,000 1,980,000 500,000 2,480,000 - - - 17,200,000 3,000,000 1,000,000 21,200,000 2,378,900 - - - - 2,378,900 - - - 2,107,000 - 2,107,000 General Obligation Bonds Development Fees Excise Tax Bonds Project Total 850,000 850,000 850,000 850,000 500,000 1,500,000 2,000,000 500,000 3,500,000 4,000,000 500,000 3,500,000 4,000,000 1,700,000 1,500,000 8,500,000 11,700,000 General Obligation Bonds Excise Tax Bonds Project Total - 2,725,000 2,725,000 1,725,000 1,725,000 - - 2,725,000 1,725,000 4,450,000 General Obligation Bonds 1,655,660 - - - - 1,655,660 General Obligation Bonds Excise Tax Bonds Project Total 102,000 102,000 102,000 102,000 102,000 102,000 102,000 102,000 102,000 102,000 204,000 306,000 510,000 31,046,338 8,255,001 11,114,001 7,218,000 6,687,000 64,320,340 JGMWTP Capital Equipment Replacement: 3200089 JGMWTP Water Quality Upgrades: 3201099 New Production Wells: 3200019 SCADA Field Site Improvements Phase II: 3202031 Small Meter Replacement Program 2" and under: 3209319 STWTP Capital Equipment Replacement: 3200079 STWTP Improvements: 3203219 General Obligation Bonds Capital Projects Fund Balance Development Fees Project Total STWTP Security Lighting: 3204149 General Obligation Bonds Undergrounding of Water Aqueduct at the JGMWTP: NA Excise Tax Bonds Water Line Replacement and Repair: 329989 Water Quality Enhancements of the Water Transmission Grid: 3203529 Waterline Upgrade / Replacement Rural Rd. (University - Apache): 3203539 Well Rehabilitation: 3203549 Program Total 16 Distribution System Fittings Project Description Estimated Project Costs This Project provides for the acquisition, assembly and installation of water works infrastructure including meters, valves, fire hydrants and water lines. This project assures that all water distribution appurtenances are maintained and replaced in accordance with all State, Federal and Industry Standards. This will make certain our residents’ health and well being is protected and that we are realizing all possible revenue from our meters. 2010-11 Source of Funds General Obligation Bonds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $400,000 $0 Other Project Costs $1,320,000 Total $1,320,000 Project Number: 3299999 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $400,000 $230,000 2012-13 2013-14 2014-15 Total 5 Year $230,000 $230,000 $230,000 $1,320,000 Environmental Laboratory Facility Project Description Estimated Project Costs This project involves the design and construction of a LEED certified environmental laboratory facility necessary to continue to analyze the quality of drinking water and reclaimed water supplies as required under federal and state environmental laws, and to ensure the safest possible water supply. Rapidly emerging regulations governing drinking water and reclaimed water supplies have created a nearly 5-fold increase in the last 8 years in the number of analyses that Tempe must conduct to ensure compliance with Clean Water Act and Safe Drinking Water Act requirements. Technological changes necessary to detect pollutants at much lower concentrations have also increased our laboratory footprint. Additionally, the Water department has launched a process control analytical program that will allow us to use analytical data to better ensure that our processes for water and wastewater treatment are effective and sustainable. Legal / Administration $46,420 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $324,940 Furnishings / Equipment $540,000 Construction / Improvement $4,642,000 Geotech / Material Testing 2010-11 Source of Funds General Obligation Bonds $5,059,780 $46,420 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $5,599,780 Project Number: 3203499 Estimated Start Date: 07/01/09 Estimated Completion Date: 06/30/12 New Appropriations by Fiscal Year 2010-11 2011-12 $5,059,780 $540,000 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $5,599,780 17 HVAC Replacement at all three of the Water/Wastewater Facilities Project Description Estimated Project Costs This project replaces City owned air conditioning equipment and carpet located within the three water and wastewater plants that has been identified as being ineffective, inefficient or has exceeded its life span according to the Public Works Facility Maintenance division. Replacement schedule is as follows: 2009-10: replace 14 air conditioning units and heat pumps at Johnny G. Martinez Water Treatment Plant (JGMWTP), South Tempe Water Treatment Plant (STWTP) and Kyrene Water Reclamation Facility (KWRF). 2010-11: replace 1 heat pump and other equipment at JGMWTP, STWTP & KWRF. 2011-12: replace 8 heat pumps and air conditioning units at JGMWTP, STWTP & KWRF. $0 $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $79,000 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds Legal / Administration Land Acquisition $28,000 $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $79,000 Project Number: 3209369 Estimated Start Date: Estimated Completion Date: 07/01/08 Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $28,000 $51,000 2012-13 2013-14 2014-15 Total 5 Year $0 $0 $79,000 $0 JGMWTP Capital Equipment Replacement Project Description Estimated Project Costs This project provides an annual funding mechanism to address equipment failures at the Johnny G. Martinez Water Treatment Plant (JGMWTP) that have not been specifically budgeted. Every year there are unexpected failures of pumps, valves, and other operating equipment due to fatigue, wear, structural failure and many other reasons. Comprehensive preventative maintenance programs and procedures are in place to help minimize equipment failures. 2010-11 Source of Funds General Obligation Bonds $250,000 Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $1,250,000 Total $1,250,000 Project Number: 3200089 Estimated Start Date: Ongoing Estimated Completion Date: Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $250,000 $250,000 2012-13 2013-14 2014-15 Total 5 Year $250,000 $250,000 $250,000 $1,250,000 18 JGMWTP Water Quality Upgrades Project Description Estimated Project Costs This project addresses additional improvements required to meet water quality regulations. This project includes improvements to solids handling facilities (plate settlers and sludge holding tank), chemical feed systems and sedimentation basin improvements. Treatment alternatives to GAC (Granular Activated Carbon) for control of disinfection byproducts will be studied and implemented. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $300,000 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $6,030,000 Geotech / Material Testing 2010-11 Source of Funds NA $50,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $6,380,000 3201099 Project Number: In Progress Estimated Start Date: 06/30/11 Estimated Completion Date: New Appropriations by Fiscal Year 2010-11 $0 2011-12 $300,000 2012-13 $6,080,000 2013-14 2014-15 Total 5 Year $0 $0 $6,380,000 New Production Wells Project Description Estimated Project Costs This project will connect three Salt River Project wells located along the Western Canal and drill and outfit one new City of Tempe well. The SRP wells will be connected during FY's 09-10, 10-11 and 11-12. The new Tempe well will be permitted during FY 12-13 and constructed during FY 13-14 and 14-15. These additional wells provide groundwater as a backup supply during drought or plant shut down and for blending to improve water quality for the City of Tempe municipal service area. Legal / Administration $26,000 Land Acquisition $0 $75,000 Permit Fees Design and Engineering $480,000 Survey / Staking $26,000 Construction Management $150,000 Furnishings / Equipment $0 Construction / Improvement $2,500,000 Geotech / Material Testing 2010-11 Source of Funds General Obligation Bonds $376,998 $8,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $3,265,000 Project Number: 3200019 Estimated Start Date: Ongoing Estimated Completion Date: Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $376,998 $377,001 2012-13 2013-14 2014-15 Total 5 Year $377,001 $279,000 $1,855,000 $3,265,000 19 SCADA Field Site Improvements Phase II Project Description Estimated Project Costs The Water Utilities Department continuously monitors the entire water and wastewater system for storage, flow, pressure, and quality using a network of remote telemetry units at remote facilities throughout the city as well as at the treatment plants. Replacement and upgrades to monitoring and control equipment in the treatment plants have been completed in other projects. To ensure the reliability of the equipment at the field sites (wells, pump stations, metering stations, etc.) and to keep pace with changes in technology, the control systems located at these sites must be replaced. Existing Remote Terminal Units (RTU) and radios at remote Water and Wastewater sites have been in service for over 15 years. Replacement parts are no longer available and technological advancements have rendered our equipment obsolete. As these units fail, we can no longer monitor facilities that include wells, reservoir sites, sanitary sewer metering stations and wastewater pump stations. Phase I of this project covered 8 of the 19 sites that require new equipment. Phase II will replace the RTU's and radio network at the remaining 11 sites. Legal / Administration $0 Permit Fees $15,000 Design and Engineering $50,000 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $10,000 Land Acquisition $875,000 $800,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $875,000 Project Number: 3202031 Estimated Start Date: Estimated Completion Date: 07/01/08 12/31/10 New Appropriations by Fiscal Year 2010-11 2011-12 $875,000 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $875,000 Small Meter Replacement Program - 2" and under Project Description Estimated Project Costs This Project provides for the replacement of revenue generating water meters that are 15 years or older. This will help Increase water conservation through accurate metering. Legal / Administration $0 Land Acquisition $0 By replacing these meters the City will realize increased revenue and accurate water accounting from meters that have reached the end of their useful life Permit Fees $0 Design and Engineering $0 Replace approximately 11,000 small meters that are 15 years or older: Year 1: 5,500 meters Year 2: 5,500 meters Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Ongoing replacement program: Year 3: 850 meters Year 4: 850 meters Year 5: 850 meters Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $100,000 $300,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $300,000 Project Number: 3209319 Estimated Start Date: 07/01/08 Estimated Completion Date: Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $100,000 $100,000 2012-13 $100,000 2013-14 2014-15 Total 5 Year $0 $0 $300,000 20 South Tempe Water Treatment Plant Capital Equipment Replacement Project Description Estimated Project Costs This project provides an annual funding mechanism to address equipment failures at the South Tempe Water Treatment Plant (STWTP) that have not been specifically budgeted. Every year there are unexpected failures of pumps, valves, and other operating equipment due to fatigue, wear, structural failure and many other reasons. Comprehensive preventative maintenance programs and procedures are in place to help minimize equipment failures. 2010-11 Source of Funds General Obligation Bonds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $250,000 $0 Other Project Costs $1,250,000 Total $1,250,000 Project Number: 3200079 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $250,000 $250,000 2012-13 2013-14 2014-15 Total 5 Year $250,000 $250,000 $250,000 $1,250,000 South Tempe Water Treatment Plant Improvements Project Description Estimated Project Costs This project includes improvements required to replace aging equipment, and to meet current and future water quality regulations. This project includes a comprehensive study of treatment alternatives. Improvements include enhanced coagulation, new powdered activated carbon system, improved coagulant dosing, reservoir chlorine dosing system, additional sludge drying beds, well water discharge structures, reservoir drains and replacement of the finished water pump station. Major operating impacts to this project include additional electrical and chemical use. Legal / Administration $400,000 Land Acquisition $0 $200,000 Permit Fees Design and Engineering $1,100,000 Survey / Staking $600,000 Construction Management $1,200,000 Furnishings / Equipment $0 Construction / Improvement $17,500,000 Geotech / Material Testing 2010-11 Source of Funds General Obligation Bonds $15,220,000 Capital Projects Fund Balance $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $3,000,000 Development Fees $200,000 Utility Relocation Fees $0 Total $500,000 $21,200,000 Project Number: 3203219 Estimated Start Date: Ongoing Estimated Completion Date: 12/31/11 New Appropriations by Fiscal Year 2010-11 $18,720,000 2011-12 $2,480,000 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $21,200,000 21 South Tempe Water Treatment Plant Security Lighting Project Description Estimated Project Costs This project is a continuation of the security improvements as recommended by the assessors who conducted the vulnerability assessment as per the Department of Homeland Security. The lighting proposed for this site would be of both free standing poles and wall mounted fixtures that would provide sufficient illumination for deterrence and detection of unauthorized persons. The additional lighting would also enhance our safety related issues that exit in low light areas. Legal / Administration The primary focus of lighting would be along the southern, western and northern perimeters of the site where there is minimal to nonexistent lighting. The southern portion of the property becomes more critical for security lighting with the newly established multi use path along the canal bank immediately adjacent to our property. The wall mounted fixtures would replace and supplement existing lighting on critical structures inside the perimeter. The project would also be replacing metal halide lighting with high pressure sodium. The high pressure sodium is a less intrusive lighting system for the environment. Survey / Staking $0 Permit Fees $39,900 Design and Engineering $50,000 $21,000 Construction Management $126,000 Furnishings / Equipment $0 Construction / Improvement $2,100,000 Geotech / Material Testing 2010-11 Source of Funds General Obligation Bonds $21,000 Land Acquisition $2,378,900 $21,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,378,900 Project Number: 3204149 Estimated Start Date: Estimated Completion Date: 07/01/10 06/30/11 New Appropriations by Fiscal Year 2010-11 $2,378,900 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $2,378,900 Undergrounding of Water Aqueduct at the JGMWTP Project Description Estimated Project Costs This project will replace the water aqueduct or flume that supplies raw water to the Johnny G. Martinez Water Treatment Facility with an underground pipe. Legal / Administration $17,000 Land Acquisition The vulnerability assessment of the Water Utilities Department indicated that this piece of infrastructure needed addressing. Recently extensive repairs to the leaking joints in the flume have been performed and the expected life of these repairs is 7-10 years. The project need should be addressed within this parameter. $0 $33,000 Permit Fees Design and Engineering $206,000 Survey / Staking $17,000 Construction Management $103,000 Furnishings / Equipment $0 Construction / Improvement $1,714,000 Geotech / Material Testing 2010-11 Source of Funds NA $17,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,107,000 Project Number: NA Estimated Start Date: 07/01/15 Estimated Completion Date: 03/31/17 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $2,107,000 $0 $2,107,000 22 Water Line Replacement and Repair Project Description Estimated Project Costs The WUD Integrated Master Plan identifies most of the specific waterlines that need to be replaced to meet increasing demands. This project provides a recurring funding source to replace water lines that break during normal operation or that have reached their useful life. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $850,000 $11,700,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $11,700,000 Project Number: 3299989 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $850,000 $850,000 2012-13 $2,000,000 2013-14 2014-15 Total 5 Year $4,000,000 $4,000,000 $11,700,000 Water Quality Enhancements of the Water Transmission Grid Project Description Estimated Project Costs Water quality modeling will be used to evaluate transmission pipe size and flow control strategies necessary for optimizing water quality in the transmission network. Modifications to system main sizes and interconnections are to be made in various locations throughout the distribution system. In some locations new distribution main, valves and fire hydrants are to be constructed. Legal / Administration $50,000 Land Acquisition More stringent water quality parameters relating to disinfection byproducts (DBPs) will become a reality in 2012. One method of DBP control is limiting the time from water disinfection to customer. Many of the City's existing water transmission mains were installed per a water master plan circa 1960. The system demand based on projected planning at that time has not occurred. As a result, in a number of locations transmission lines are significantly larger than required to meet projected flows according to current planning. Eliminating unnecessary volume in the transmission system and / or modifying flow patters can be a useful means to control the formation of DBPs in the system. $0 Permit Fees $100,000 Design and Engineering $100,000 Survey / Staking $50,000 Construction Management $100,000 Furnishings / Equipment $0 Construction / Improvement $4,000,000 Geotech / Material Testing 2010-11 Source of Funds NA $50,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $4,450,000 Project Number: 3203529 Estimated Start Date: 04/01/09 Estimated Completion Date: 01/01/12 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $2,725,000 2012-13 $1,725,000 2013-14 2014-15 Total 5 Year $0 $0 $4,450,000 23 Waterline Upgrade / Replacement Rural Rd. (University - Apache) Project Description Estimated Project Costs This water line will replace / upgrade the existing 14 inch cast iron pipe between University and Apache. Approximately 2600 feet of 16 inch ductile iron pipe will be tied to the 30 inch transmission main at University and Apache. New fire hydrants, gate valves, onsite fire suppression system connections, services / meters, and connections to the distribution system will be included. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $19,480 Construction Management $116,700 Furnishings / Equipment $0 Construction / Improvement $1,500,000 Geotech / Material Testing 2010-11 Source of Funds General Obligation Bonds $1,655,660 $19,480 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $1,655,660 Project Number: 3203539 Estimated Start Date: Estimated Completion Date: 07/01/09 09/30/10 New Appropriations by Fiscal Year 2010-11 2011-12 $1,655,660 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $1,655,660 Well Rehabilitation Project Description Estimated Project Costs This project involves rehabilitation and major structural repair of City supply wells. Two wells will be selected each year to be inspected by video camera, brushed and redeveloped. This will be on-going, with the goal of rehabilitating each well once every four years. Legal / Administration $0 Land Acquisition $0 $10,000 Permit Fees Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $102,000 $500,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $510,000 Project Number: 3203549 Estimated Start Date: Ongoing Estimated Completion Date: Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $102,000 $102,000 2012-13 2013-14 2014-15 Total 5 Year $102,000 $102,000 $102,000 $510,000 24 2010-11 CIP Projects - Wastewater Program 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 Funding Source 91st Avenue WWTP: 3200129 General Obligation Bonds 9,000,000 12,500,000 2,400,000 - - Capital Projects Fund Balance 3,000,000 - - - - 3,000,000 500,000 500,000 500,000 500,000 500,000 2,500,000 Development Fees Excise Tax Bonds Project Total Kyrene Water Reclamation Plant Equipment Replacement: 3209409 General Obligation Bonds Sewer Line Replacement and Repair: 3299969 2014-15 23,900,000 - - 9,100,000 9,500,000 9,500,000 28,100,000 12,500,000 13,000,000 12,000,000 10,000,000 10,000,000 57,500,000 100,000 150,000 - - - 250,000 - - 200,000 250,000 250,000 700,000 100,000 150,000 200,000 250,000 250,000 950,000 Excise Tax Bonds Project Total 2011-12 Total 5-Year Program Project Name & Number General Obligation Bonds - 1,500,000 - - - 1,500,000 Excise Tax Bonds - - 2,000,000 2,000,000 2,000,000 6,000,000 Project Total - 1,500,000 2,000,000 2,000,000 2,000,000 7,500,000 Sewer Replacement / Upsize - 5th Street Price to Smith: NA Excise Tax Bonds - - - - 2,574,750 2,574,750 Sewer Replacement / Upsize Smith Rd. Apache to University: 3209389 Excise Tax Bonds - - - - 2,593,050 2,593,050 Southern Avenue Interceptor (SAI) Rehabilitation: 3200589 General Obligation Bonds - 292,000 - - - 292,000 Excise Tax Bonds - - 5,550,000 - - 5,550,000 Program Total City of Mesa - 292,000 5,550,000 - - 5,842,000 Project Total - 584,000 11,100,000 - - 11,684,000 12,600,000 15,234,000 25,300,000 12,250,000 17,417,800 82,801,800 25 91st Avenue WWTP Project Description Estimated Project Costs The 91st Avenue Wastewater Treatment Plant (WWTP) is a regional treatment facility that is jointly owned by five valley cities and is operated by the City of Phoenix. The 91st Avenue WWTP represents the majority of Tempe's wastewater treatment program. This project represents Tempe's share of all capital activities at the 91st Avenue WWTP including treatment capacity expansion projects, capital equipment replacement, modifications and additions to meet regulatory requirements, process enhancements and also capacity expansion of the jointly owned trunk sewer lines that convey wastewater flows to the plant. The purpose of this project is to provide wastewater treatment and transmission capacities to treat and convey the majority of Tempe's wastewater flows to the 91st Avenue WWTP, including solids discharge from our Kyrene Water Reclamation Facility. 2010-11 Source of Funds General Obligation Bonds $3,000,000 Development Fees $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $9,000,000 Capital Projects Fund Balance Legal / Administration $500,000 $0 Other Project Costs $57,500,000 Total $57,500,000 Project Number: 3200129 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 $12,500,000 2011-12 $13,000,000 2012-13 $12,000,000 2013-14 2014-15 Total 5 Year $10,000,000 $10,000,000 $57,500,000 Kyrene Water Reclamation Plant Equipment Replacement Project Description Estimated Project Costs This project provides an annual funding mechanism to address equipment failures that have not been specifically budgeted. Every year there are unexpected failures of pumps, valves, and other operating equipment due to fatigue, wear, and structural failure. Comprehensive preventative maintenance programs and procedures are in place to help minimize equipment failures. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $950,000 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $100,000 $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $950,000 Project Number: 3209409 Estimated Start Date: Ongoing Estimated Completion Date: Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $100,000 $150,000 2012-13 2013-14 2014-15 Total 5 Year $200,000 $250,000 $250,000 $950,000 26 Sewer Line Replacement and Repair Project Description Estimated Project Costs The WUD Integrated Master Plan (IMP) identified most of the specific sewer lines that need to be replaced to meet increasing wastewater flows. This project provides a recurring funding source to replace sewer lines that break during normal operation. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds NA $7,500,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $7,500,000 Project Number: 3299969 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 $0 2011-12 $1,500,000 2012-13 $2,000,000 2013-14 2014-15 Total 5 Year $2,000,000 $2,000,000 $7,500,000 Sewer Replacement / Upsize - 5th Street (Price to Smith) Project Description Estimated Project Costs This project will replace and upsize an estimated 2,650 feet of existing 15 inch sanitary sewer due to insufficient capacity. New sewer will be 18 inches in diameter. The project will alleviate high flow conditions and facilitate Apache Blvd. redevelopment. Legal / Administration $19,875 Land Acquisition $0 $19,875 Permit Fees Design and Engineering $238,500 Survey / Staking $19,875 Construction Management $119,250 Furnishings / Equipment $0 Construction / Improvement $1,987,500 Geotech / Material Testing 2010-11 Source of Funds NA $19,875 Utility Relocation Fees $150,000 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,574,750 Project Number: NA Estimated Start Date: 07/01/13 Estimated Completion Date: 09/30/14 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $2,574,750 $2,574,750 27 Sewer Replacement / Upsize Smith Rd (Apache to University) Project Description Estimated Project Costs This project will replace and upsize an estimated 2,670 feet of existing 12 to 15 inch sanitary sewer due to insufficient capacity. New sewer will be 18 inches in diameter. The project will alleviate high flow conditions and facilitate Apache Blvd. redevelopment. Legal / Administration $20,025 Land Acquisition $0 $20,025 Permit Fees Design and Engineering $240,300 Survey / Staking $20,025 Construction Management $120,150 Furnishings / Equipment $0 Construction / Improvement $2,002,500 Geotech / Material Testing 2010-11 Source of Funds NA $20,025 Utility Relocation Fees $150,000 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $2,593,050 Project Number: 3209389 Estimated Start Date: Estimated Completion Date: 07/01/11 09/30/12 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 2013-14 2014-15 Total 5 Year $0 $2,593,050 $2,593,050 $0 Southern Avenue Interceptor (SAI) Rehab Project Description Estimated Project Costs The project entails the rehabilitation of the Southern Avenue Interceptor (SAI) within the limits of the City of Tempe. The SAI is a jointly owned regional sewer that runs through Tempe. A November 2005 engineering study revealed severe corrosion of this unlined concrete sewer line. The study recommended a phased rehabilitation or replacement of this line to protect it from eventual collapse. This project combines all of the phases of the multi-year rehabilitation of the SAI into a single project. Phase I was completed in 2006. Phase II will be completed in the first half of 2010. Phase III is included in this CIP. The project will be jointly funded by both Tempe and the City of Mesa. Legal / Administration $14,000 Land Acquisition $0 $20,000 Permit Fees Design and Engineering $500,000 Survey / Staking $50,000 Construction Management $700,000 Furnishings / Equipment $0 Construction / Improvement $10,000,000 Geotech / Material Testing 2010-11 Source of Funds NA $400,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $11,684,000 Project Number: 3200589 Estimated Start Date: Ongoing Estimated Completion Date: 12/31/12 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $584,000 2012-13 $11,100,000 2013-14 2014-15 Total 5 Year $0 $0 $11,684,000 28 Special Purpose Transit and Rio Salado projects total $773 thousand in FY 2010-11 and account for 2% of the total 2010-11 appropriated CIP budget The Special Purpose component of the Capital Improvements Program includes the Transit and Rio Salado capital programs. Combined, they account for $773,000 of the $48.3 million Capital Improvements Budget for FY 2010-11. As was the case in FY 2009-10, federal grants remain the primary funding source for the Transit Program in FY 2010-11. A Federal Congestion Mitigation and Air Quality grant will be used for the design and construction of a continuation of the Tempe Rio Salado multi-use path system which will extend the regional multi-use path system between the Cities of Tempe and Phoenix. The Rio Salado capital program relates to projects constructed within the special district established around the Tempe Town Lake. The FY 2010-11 budget includes use of the City’s Capital Improvements Reserve for repairs to the Town Lake downstream dam as required by the Arizona Department of Water Resources, and for various ongoing maintenance activities. 29 2010-11 CIP Projects - Transit Program 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2014-15 Funding Source Hardy Drive Pedestrian Street Improvement: NA Federal Grants - - - 1,194,000 - Transit Tax - - 120,000 - - 120,000 Project Total - - 120,000 1,194,000 - 1,314,000 Federal Grants - - - 1,200,000 - 1,200,000 Transit Tax - - - 68,000 - 68,000 Project Total - - - 1,268,000 - 1,268,000 Federal Grants - 287,000 - - - 287,000 Transit Tax - 123,000 - - - 123,000 Project Total - 410,000 - - - 410,000 400,000 - - - - 400,000 46,000 - - - - 46,000 446,000 - - - - 446,000 1,100,000 I-10 and Alameda Drive Bicycle and Pedestrian Crossing: NA Install CCTV monitoring stations - LRT Signal Intersections: NA Rio Salado Multi-use Path: TempePhoenix (Priest Dr to SR 143): 6004139 Federal Grants Capital Projects Fund Balance Project Total University Drive Street Improvement Priest / Mill: NA 2011-12 Total 5-Year Program Project Name & Number 1,194,000 Federal Grants - - 1,100,000 - - Transit Tax - 120,000 - - - 120,000 Project Total - 120,000 1,100,000 - - 1,220,000 446,000 530,000 1,220,000 2,462,000 - 4,658,000 Program Total 30 Hardy Drive Street Improvement Project Description Estimated Project Costs This project is approximately 1 mile in length between Broadway Road and University Drive. The project consists of pedestrian and bicycle facility improvements along a collector street fronted primarily by single family residential units. The proposed project area has a high volume of pedestrian and bicycle travel due to its proximity to ASU, Downtown Tempe, Rio Salado and the high industrial and office employment area south of the project. Legal / Administration Area residents are advocating retaining the neighborhood character of the street to reflect the residential uses on this stretch of road. Project elements include striping for bike lanes, widening of sidewalks and providing bulb-outs at critical intersections, reduction of existing travel lane widths, construction of planted medians, protection from intrusion of commercial truck traffic, improved pedestrian safety, reduction of speed limits, construction of mid-block crossings and providing transit, bicycle and pedestrian amenities. Survey / Staking $10,000 Construction Management $67,000 $10,000 Land Acquisition $0 $18,000 Permit Fees Design and Engineering $234,000 Furnishings / Equipment 2010-11 Source of Funds $0 Construction / Improvement $950,000 Geotech / Material Testing $10,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $15,000 Total $1,314,000 NA Project Number: Estimated Start Date: Estimated Completion Date: 10/01/13 07/31/15 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $120,000 2013-14 2014-15 Total 5 Year $1,194,000 $0 $1,314,000 I-10 Alameda Drive Bicycle and Pedestrian Crossing Project Description Estimated Project Costs This project is located at Alameda Drive and the I-10 Freeway. The project will provide a non-motorized bridge over the I-10 Freeway which will provide east-west bicycle and pedestrian connectivity that will link residential developments with employment destinations and regional recreational facilities. The project will also provide a much needed link that will shorten the commute for bicyclists heading to downtown Tempe and ASU. Legal / Administration $9,000 Land Acquisition $0 $17,000 Permit Fees Design and Engineering $108,000 Survey / Staking Work to be performed includes design and acquisition of ramp easements as needed. The project will be constructed with the I-10 Corridor improvements as programmed in the Regional Transportation Plan. Additional funding for completion of the bridge crossing will be requested from the state and federal government. $9,000 Construction Management $63,000 Furnishings / Equipment $0 Construction / Improvement $900,000 Geotech / Material Testing 2010-11 Source of Funds NA $9,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $153,000 Total $1,268,000 Project Number: NA Estimated Start Date: 10/01/13 Estimated Completion Date: 12/31/14 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $1,268,000 $0 $1,268,000 31 Install CCTV Monitoring Stations - LRT Signal Intersections Project Description Estimated Project Costs This project will install Closed Circuit Television (CCTV) monitoring at traffic signals along the Tempe portion of the light rail corridor. The project will be used to monitor and adjust signal timing to improve traffic flow along the light rail corridor. 2010-11 Source of Funds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $410,000 Total $410,000 NA Project Number: Estimated Start Date: Estimated Completion Date: 07/01/11 06/30/12 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $410,000 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $410,000 Rio Salado Multi-use Path: Tempe-Phoenix (Priest Dr to SR 143) Project Description Estimated Project Costs The Project provides funding for the design and construction of a continuation of the Tempe Rio Salado multi-use path system. This segment would extend from Priest Drive to State Route 143 on the western city limit of Tempe. The path will be on the south bank of the river channel. The project will be completed in concert with a joint project with Phoenix Rio Salado Project. The project will extend the regional multiuse path system between the City of Tempe and Phoenix. Legal / Administration $4,000 Land Acquisition $0 $7,000 Permit Fees Design and Engineering $42,000 Survey / Staking $4,000 Construction Management $25,000 Furnishings / Equipment $0 Construction / Improvement $350,000 Geotech / Material Testing 2010-11 Source of Funds Federal Grants $0 Utility Undergrounding $0 ITD / Telecommunications $400,000 Capital Projects Fund Balance $4,000 Utility Relocation Fees $10,000 Other Project Costs $46,000 $0 Total $446,000 Project Number: 6004139 Estimated Start Date: 10/01/10 Estimated Completion Date: 07/31/12 New Appropriations by Fiscal Year 2010-11 $446,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $446,000 32 University Drive Street Improvement - Priest / Mill Project Description Estimated Project Costs The University Drive improvement Project is approximately 1 mile between Mill Ave and Priest Drive. The project consists of designing and constructing pedestrian and bicycle facility improvements along an arterial street. Work could include: acquisition of sidewalk easements as needed; demolition of some existing sidewalk; curb and gutter; construction of new sidewalk; curb ramps, on-street parking areas; installation and relocation of pedestrian scale street lights; and, installation of landscaping and providing transit and pedestrian amenities. Legal / Administration $9,000 Land Acquisition $0 $17,000 Permit Fees Design and Engineering $226,000 Survey / Staking The goal of the project is to enhance travel options for people of all ages and nonmotorized users including: middle school students, elementary school children, seniors, professionals and college students accessing commercial centers, local parks, downtown Tempe, and ASU. The project fulfills the Tempe General Plan 2030 objective of increasing mode share for non-motorized travel. $9,000 Construction Management $62,000 Furnishings / Equipment $0 Construction / Improvement $880,000 Geotech / Material Testing 2010-11 Source of Funds $9,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $8,000 Total $1,220,000 NA Project Number: Estimated Start Date: Estimated Completion Date: 10/01/12 07/31/14 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $120,000 2012-13 $1,100,000 2013-14 2014-15 Total 5 Year $0 $0 $1,220,000 33 2010-11 CIP Projects - Rio Salado Program Project Name & Number Funding Source Rio Salado Ancillary Projects: 656931A Capital Improvements Reserve Town Lake Dam Replacement: 6503069 Town Lake Downstream Dam RepairsADWR: 6503599 Program Total 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2011-12 Total 5-Year Program 2014-15 100,000 - - - - 100,000 - 2,000,000 2,480,000 960,000 Federal Grants 7,040,000 20,000,000 7,520,000 10,000,000 30,000,000 Project Total - 4,480,000 960,000 27,040,000 7,520,000 40,000,000 227,000 - - - - 227,000 327,000 4,480,000 960,000 27,040,000 7,520,000 40,327,000 Mondrian Agreement Capital Improvements Reserve 34 Rio Salado Ancillary Projects Project Description Estimated Project Costs Rio Salado ancillary projects often include new signs, emergency warning system upgrades, tree & vegetation planting, holiday lighting, fencing, damage due to vandalism, and buoy replacement or repair. The project also provides for improvements to the Splash Playground at Tempe Beach Park, as well as any other unforeseen project that becomes necessary at Tempe Town Lake, Tempe Beach Park, and the linear park system. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve $100,000 $100,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $100,000 Project Number: 656931A Estimated Start Date: Estimated Completion Date: 06/17/99 06/30/14 New Appropriations by Fiscal Year 2010-11 $100,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $100,000 Town Lake Dam Replacement Project Description Estimated Project Costs New technology for replacement of the dams has been proposed (pending City Council concurrence and approval). The hybrid technology will allow the use of the existing piers and foundation to replace approximately 840 lineal feet of dam, but may require changes to the mechanical systems. Tempe Town Lake provides the economic benefit for continued growth of the community, and replacement of the dam will help to secure public and private investment in development at Town Lake. Legal / Administration $320,000 Land Acquisition $0 $608,000 Permit Fees Design and Engineering $3,840,000 Survey / Staking $320,000 Construction Management $2,240,000 Furnishings / Equipment $0 Construction / Improvement $32,000,000 Geotech / Material Testing 2010-11 Source of Funds NA $320,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $352,000 Total $40,000,000 Project Number: 6503069 Estimated Start Date: 07/01/14 Estimated Completion Date: 12/31/15 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $4,480,000 2012-13 $960,000 2013-14 2014-15 Total 5 Year $27,040,000 $7,520,000 $40,000,000 35 Town Lake Downstream Dam Repairs - ADWR Project Description Estimated Project Costs This project provides funding for repairs to the Town Lake's downstream dam area as required by ADWR (Arizona Department of Water Resources). Dam repairs include replacement of the rip-rap that is placed for scour control, completing some concrete patch work (also an ADWR requirement) and replacing piezometer cables so that groundwater level reading can resume. Legal / Administration $0 Land Acquisition $0 Permit Fees $1,500 Design and Engineering $8,500 Survey / Staking $1,000 Construction Management $8,000 Furnishings / Equipment $0 Construction / Improvement $200,000 Geotech / Material Testing 2010-11 Source of Funds Capital Improvements Reserve $1,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $227,000 $0 Other Project Costs $7,000 Total $227,000 Project Number: 6503599 Estimated Start Date: Estimated Completion Date: 11/01/09 04/30/11 New Appropriations by Fiscal Year 2010-11 $227,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $227,000 36 General Purpose General Purpose projects total $3.6 million in FY 2010-11 and account for 7% of the 2010-11 appropriated CIP budget The General Purpose component of the Capital Improvements Program includes Police Protection, Fire Protection, Park Improvements, and General Governmental programs. Combined, they constitute $3.6 million of the $48.3 million Capital Improvements Budget for FY 2010-11. A total of $1.6 million in General Obligation bonds will be sold primarily to provide funding for Police and Fire projects. The balance will come from the City’s Capital Improvements Reserve, the Park Improvements capital projects fund balance, and a transfer from the Water / Wastewater fund. Major projects in FY 2010-11 include continued improvements to both the Police and Fire Departments’ radio systems, and under the General Governmental program: continued funding for the renovation of the Tempe Public Library, the Municipal Arts Program, and numerous ongoing facilities repair and replacement programs. Historically, the annual Park Improvements program has been almost completely funded by bonds which are repaid by City property tax revenues. Dramatically declined local property values resulting from the economic downturn are projected to severely decrease property tax revenues for years to come; which has critically diminished the City’s capacity to bond finance capital projects. Consequently, with the exception of a modest use of existing capital projects fund balance, funding for FY 2010-11 Park Improvement capital projects has been delayed. 37 2010-11 CIP Projects - Police Protection Program Project Name & Number Police / City Radio System Replacement : 5501989 Funding Source 2010-11 Funded Program 2011-12 Additional Projected Needs 2012-13 2013-14 2014-15 Total 5-Year Program General Obligation Bonds Unauthorized G.O Bonds 890,954 - 1,053,267 - 809,604 70,000 861,316 900,000 2,753,825 1,831,316 Project Total 890,954 1,053,267 879,604 861,316 900,000 4,585,141 38 Police / City Radio System Replacement Project Description Estimated Project Costs This ongoing project provides for the replacement of outdated radio equipment for the Police Department and other City radio users, allowing Tempe to participate in the establishment of long-term public safety interoperability in the Phoenix metro area. The Police/City Radio System is an 800Mhz digital trunk system that allows day-to-day, real time communication over a single radio system in partnership with thirteen other agencies. 2010-11 Source of Funds General Obligation Bonds $890,954 Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $4,585,141 Other Project Costs $0 Total $4,585,141 Project Number: 5501989 Estimated Start Date: Estimated Completion Date: 07/01/10 Ongoing New Appropriations by Fiscal Year 2010-11 $890,954 2011-12 $1,053,267 2012-13 2013-14 2014-15 Total 5 Year $879,604 $861,316 $900,000 $4,585,141 39 2010-11 CIP Projects - Fire Protection Program Project Name & Number Funding Source Radio Replacement for Conversion to 800 MHz: 566947 General Obligation Bonds 2010-11 Funded Program 600,000 40 Additional Projected Needs 2012-13 2013-14 2014-15 2011-12 - - - Total 5-Year Program - 600,000 Radio Replacement for Conversion to 800 Megahertz Project Description Estimated Project Costs This project continues the federally mandated radio conversion to 800 MHz. The conversion ensures the Fire Department will remain on track in its partnership with the other metropolitan area cities in the Automatic Aide System. 2010-11 Source of Funds General Obligation Bonds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $600,000 $600,000 Other Project Costs $0 Total $600,000 566947 Project Number: Estimated Start Date: Estimated Completion Date: 07/01/08 06/30/10 New Appropriations by Fiscal Year 2010-11 $600,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $600,000 41 2010-11 CIP Projects - Park Improvements / Recreation Program Project Name & Number Funding Source Neighborhood Park Improvements: 6399829 Capital Projects Fund Balance 2010-11 Funded Program 150,000 42 Additional Projected Needs 2012-13 2013-14 2014-15 2011-12 - - - Total 5-Year Program - 150,000 Neighborhood Park Improvements Project Description Estimated Project Costs This project provides for the replacement of playground equipment, picnic equipment, fencing, signage, concrete, sand, rubber playground surfacing, electrical/lighting, etc in the various neighborhood parks. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Projects Fund Balance $150,000 $150,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $150,000 Project Number: 6399829 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 $150,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $150,000 43 2010-11 CIP Projects - General Governmental Program Project Name & Number Funding Source 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2014-15 2011-12 Total 5-Year Program Community Development El Paso Natural Gas Easement Multiuse Path Improvements Phase III: NA Federal Grants Unauthorized G.O. Bonds Project Total - - - 200,000 200,000 1,323,000 1,323,000 1,323,000 200,000 1,523,000 Capital Improvements Reserve 250,000 - - - - 250,000 Municipal Arts Program: 6699799 Water / Wastewater Fund 436,463 234,890 364,140 194,680 241,048 1,471,221 Tempe Public Library Renovation: 6702499 General Obligation Bonds 115,000 - - - - 115,000 Capital Improvements Reserve 510,000 161,328 - - - 671,328 Federal Grants Capital Improvements Reserve 339,500 35,000 339,500 35,000 - - - 679,000 70,000 Project Total 374,500 374,500 - - - 749,000 Community Relations Maryanne Corder Neighborhood Improvement Program: 676556 Community Services Public Works City Facilities Rehabilitation: 6799779 Energy Conservation Program: 6703659 Historic Properties Preservation: 676809 Capital Improvements Reserve 50,000 - - - - 50,000 HVAC Equipment Replacement: 676873 Capital Improvements Reserve 33,500 - - - - 33,500 Microbial Remediation (Mold, Asbestos Removal): 6709269 Capital Improvements Reserve 30,000 - - - - 30,000 Roof Maintenance Program: 6702519 Capital Improvements Reserve 30,000 - - - - 30,000 Capital Improvements Reserve 100,000 - - - - 100,000 1,929,463 770,718 364,140 394,680 1,564,048 5,023,049 Water Utilities General Purpose Irrigation Improvements: 6704049 Program Total 44 El Paso Natural Gas Easement Multi-use Path Improvements Phase III Project Description Estimated Project Costs The project is a 1/2 mile multi-use path extension of the existing El Paso Gas Easement path from Rural Road to Kiwanis Park. The project will extend the multiuse path system from Price Road to Kiwanis Park, a major regional destination. The project will allow and promote non-motorized access to Kiwanis Park. Legal / Administration The project will provide east-west bicycle and pedestrian connectivity that will link major residential areas with a regional recreational facility. The project will also shorten the commute for bicyclists heading to the Kiwanis Park and also to industrial areas abutting the park, and will also encourage less experienced bike commuters by providing them safer and less congested routes to recreational and employment destinations. Regionally, the project will also allow bike commuters from Chandler, Mesa and Tempe easier access to Tempe. The project will connect at Kiwanis Park to the Western Canal Multi-use Path. Reducing automobile trips will benefit Tempe's and the Valley’s air quality. Design and Engineering $11,000 Land Acquisition $0 $99,000 Permit Fees $200,000 Survey / Staking $11,000 Construction Management $74,000 Furnishings / Equipment $0 Construction / Improvement $1,050,000 Geotech / Material Testing 2010-11 Source of Funds $11,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $67,000 Total $1,523,000 NA Project Number: Estimated Start Date: Estimated Completion Date: 07/01/14 06/30/15 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $200,000 $1,323,000 $1,523,000 Maryanne Corder Neighborhood Grant Program Project Description Estimated Project Costs The Neighborhood Grant Program is an annual program that provides funding for small neighborhood initiated projects ($15,000 or less per individual association project and one $50,000 grant). The selection of recipients and the amounts awarded are determined by City Council based on recommendations from staff after a review of requests by neighborhood and homeowners associations. Environmental benefits from projects include turf conversion, energy efficient lighting, drought tolerant planting and recyclable materials used for art pieces. The grant program is a direct investment in neighborhoods. Residents work together collaboratively to identify smaller projects that meet a community need. The program requires extensive community involvement and support in the selection of what project to apply for, so that the project represents the neighborhood's needs and desires. $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve Legal / Administration $250,000 $250,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $250,000 Project Number: 676556 Estimated Start Date: Varies Estimated Completion Date: Varies New Appropriations by Fiscal Year 2010-11 $250,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $250,000 45 Municipal Arts Program Project Description Estimated Project Costs This project provides funding for various Municipal Arts projects as determined by the Municipal Arts Commission and the City Council. The Municipal Arts Program serves to advise the Mayor and City Council on all art and cultural development, encourage arts organizations and artists in their continuing search for artistic excellence in Tempe, and to encourage and support the contribution of cultural diversity to the richness of the community’s artistic life. 2010-11 Source of Funds Water / Wastewater Fund Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $436,463 $0 Other Project Costs $1,471,221 Total $1,471,221 Project Number: 6699799 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $436,463 $234,890 2012-13 2013-14 2014-15 Total 5 Year $364,140 $194,680 $241,048 $1,471,221 Tempe Public Library Renovation Project Description Estimated Project Costs This additional funding for this project will complete the $8 million renovation of the Tempe Public Library which opened to the public in 1989. The completed renovation upgrades the Library's computer network, replaces the furniture and remodels the Library to accommodate new usage patterns and technology. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $115,000 Construction / Improvement 2010-11 Source of Funds General Obligation Bonds $115,000 $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $115,000 Project Number: 6702499 Estimated Start Date: 07/01/06 Estimated Completion Date: 06/30/11 New Appropriations by Fiscal Year 2010-11 $115,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $115,000 46 City Facilities Rehabilitation Project Description Estimated Project Costs This project rehabilitates and repairs public facilities and related building systems. Rehabilitation and repairs include: fire alarm upgrades and repairs, roof repairs, replacements of floor covering, painting, repair and upgrades to building automation systems, ice machine replacements and general building repairs as needed. As items are replaced with new items that consume less energy and are more efficient therefore reducing carbon footprint and sustaining a more environmentally friendly community. Also, planned maintenance extends the life of equipment and systems therefore reduces costly repairs and building closures. Some of the anticipated projects include floor coverings at the following locations: Fire Station #1, Escalante Center, Senior Citizen Center and Pyle Adult Center. Plans are to upgrade lighting automation at the 525 Building, City Hall garden level offices, Fire Admin Building and at the Library. The Facilities Master Plan will be used to identify and prioritize what particular locations will have ice machines replaced. $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve Legal / Administration $510,000 $671,328 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $671,328 Project Number: 6799779 Estimated Start Date: Estimated Completion Date: 07/01/10 Ongoing New Appropriations by Fiscal Year 2010-11 2011-12 $510,000 $161,328 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $671,328 Energy Conservation Program Project Description Estimated Project Costs This project replaces substandard and inefficient lighting systems (replacing T-12 lighting with T-8, LED upgrades), replaces or adds new EMS (Energy Management Systems), and allows for performing building audits and adding programmable thermostats. This program allows staff to review facility needs and determine where we can achieve sustainable savings in energy costs and consumption. This program will be used to provide matching funds of $35,000 each year for two years to obtain grant funding of $679,000 from the EECBG (Energy Efficiency & Conservation Block Grant) Program. The grant funding assists the City in expanding our energy conservation efforts and will be used for HVAC and/or lighting retrofits at the following locations: Kiwanis Rec. Center, North PD building, Pyle Adult Recreation Center, Edna Vihel Arts Facility, City Hall, and Fire Training Center. It is anticipated that there will be a savings of 21,000 kwh over the two year period resulting from the grant funding and the Energy Conservation Program CIP. $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 $749,000 Construction / Improvement $339,500 Capital Improvements Reserve $0 Land Acquisition Furnishings / Equipment 2010-11 Source of Funds Federal Grants Legal / Administration $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $35,000 $0 Total $749,000 Project Number: 6703659 Estimated Start Date: 07/01/10 Estimated Completion Date: 06/30/11 New Appropriations by Fiscal Year 2010-11 2011-12 $374,500 $374,500 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $749,000 47 Historic Properties Preservation Project Description Estimated Project Costs This project rehabilitates and repairs aging historic facilities, infrastructure and systems. The scope of the rehabilitation includes roofing repairs / replacements, floor covering, painting, security lighting, repairs/upgrades of building automation systems, fire alarms and damaged equipment. Plans for this next year include adding security lighting to the Hackett and Peterson houses. The preservation of City owned historic properties is essential to prolong the sustainability of historic public properties. Taking a proactive approach to repairs will often reduce future expenditure costs. The Hackett House recently had a new HVAC system added therefore reducing energy consumption and energy costs. The other properties will be reviewed and analyzed during this budget period. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $50,000 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve $50,000 $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $50,000 676809 Project Number: Estimated Start Date: Estimated Completion Date: 07/01/10 06/30/11 New Appropriations by Fiscal Year 2010-11 $50,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $50,000 HVAC Equipment Replacement Project Description Estimated Project Costs This project replaces air conditioning systems in public facilities that are no longer performing adequately, or are beyond their recommended life cycle and require constant maintenance. It has been determined that there are approximately 140 units that have exceeded their useful life which is 12 years. Some of the facilities where the HVAC systems are planned to be replaced include: Fire Station # 3, Fire station # 5, and Vihel Community Center. By being more proactive in replacing these units, we will be reducing our energy consumption and reduce our carbon footprint. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $33,500 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve $33,500 $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $33,500 Project Number: 676873 Estimated Start Date: 07/01/10 Estimated Completion Date: 06/30/11 New Appropriations by Fiscal Year 2010-11 $33,500 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $33,500 48 Microbial Remediation (Mold and Asbestos Removal) Project Description Estimated Project Costs This project provides funding to hire trained remediation contractors for mold and asbestos removal as needed and in accordance with state and federal environmental requirements. Remodeling a city facility will require an asbestos assessment before work can commence. In the event of detecting asbestos, specially trained technicians will perform the necessary remediation. If mold has been identified in a work area, a mold assessment and abatement actions will be performed by trained microbial remediation specialists to ensure a healthy environment. 2010-11 Source of Funds Capital Improvements Reserve Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $30,000 $0 Other Project Costs $30,000 Total $30,000 Project Number: 6709269 Estimated Start Date: Estimated Completion Date: 07/01/10 Ongoing New Appropriations by Fiscal Year 2010-11 $30,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $30,000 Roof Maintenance Program Project Description Estimated Project Costs The scope of this project provides for annual maintenance and ongoing replacement of City facilities roof structures. Proper assessments, maintenance, repairs and replacement of roof structures will prolong performance and usefulness. A comprehensive program will prolong the life-cycle costs while reducing the frequency of leaks and emergency repairs. It is planned that roof replacement projects that will take place in 2010-11 are Diablo Stadium weight room and a portion of KRC. Specific replacement projects are being evaluated in conjunction with the City Facilities Master Plan. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management 2010-11 Source of Funds Capital Improvements Reserve $30,000 $30,000 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $30,000 Project Number: 6702519 Estimated Start Date: 07/01/10 Estimated Completion Date: 06/30/11 New Appropriations by Fiscal Year 2010-11 $30,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $30,000 49 General Purpose Irrigation Improvements Project Description Estimated Project Costs This project provides a recurring funding source to replace and repair irrigation lines due to normal operation and /or that have exceeded their useful life. Legal / Administration $0 Land Acquisition $0 Environmental benefits of Flood Irrigation Service: The distribution system is gravity fed and does not require power to motors and pumps. Also, unlike domestic tap water, surface water used for flood irrigation requires no pre-treatment prior to delivery, which makes it a much more cost effective resource for flood irrigation. Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Improvements Reserve $100,000 $100,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $100,000 Project Number: 6704049 Estimated Start Date: Estimated Completion Date: 07/01/08 Ongoing New Appropriations by Fiscal Year 2010-11 $100,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $100,000 50 Transportation Transportation projects total $275 thousand in FY 2010-11 and account for less than 1% of the 2010-11 appropriated CIP budget The Transportation element of the Capital Improvements Program includes all new and ongoing improvements put into service under the City's Transportation and Right-of-Way, and Traffic Signal and Street Lighting programs. Historically, the annual Transportation program has been almost completely funded by bonds which are repaid by City property tax revenues. Dramatically declined local property values resulting from the economic downturn are projected to severely decrease property tax revenues for years to come; which has critically diminished the City’s capacity to bond finance capital projects. Consequently, with the exception of a modest use of existing capital projects fund balance, funding for FY 2010-11 transportation capital projects has been delayed. Projects are planned within the five year program when federal grant subsidies are anticipated. 51 2010-11 CIP Projects - Transportation & R.O.W. Improvements Program Project Name & Number Holdeman Alley Improvement Project: NA North Tempe Alley Improvement: NA Residential Street Surface Treatments: 5499951 Program Total Funding Source 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2014-15 2011-12 Total 5-Year Program General Obligation Bonds Federal Grants - - - 32,102 531,098 - 32,102 531,098 Project Total - - - 563,200 - 563,200 General Obligation Bonds Federal Grants - - - 58,095 - 58,095 - - - 961,105 - 961,105 Project Total - - - 1,019,200 - 1,019,200 275,000 - - - - 275,000 275,000 - - 1,582,400 - 1,857,400 Capital Projects Fund Balance 52 Holdeman Alley Improvement Project Project Description Estimated Project Costs The City of Tempe has an ongoing alley reconstruction / stabilization program which includes removing soil fines and old soil material and replacing with recycled asphalt (RAP) from wall to wall in alleys. This project would stabilize approximately 4.25 miles of alleys in the area from University to Broadway and Priest to Hardy. The primary environmental benefit derived from the project is a reduction in dust emissions due to activity in the alley. The project is approximately 94% federal grant funded. Legal / Administration $5,000 Land Acquisition $0 $9,000 Permit Fees Design and Engineering $54,000 Survey / Staking This project will allow Tempe to continue its stabilization program in order to reduce PM 10 emissions. The Holdeman Neighborhood area was identified in the city's Congestion Mitigation Air Quality (CMAQ) funding request through the Maricopa Association of Governments (MAG) in the Paving Unpaved Road Projects category for its regional proximity to Phoenix and to County air quality monitoring stations in South Scottsdale. Additionally, traffic counts in the northern segment of the area yielded higher than average number of trips per day for alley use. $5,000 Construction Management $32,000 Furnishings / Equipment $0 Construction / Improvement $450,000 Geotech / Material Testing 2010-11 Source of Funds $5,000 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $3,200 Total $563,200 NA Project Number: Estimated Start Date: Estimated Completion Date: 08/01/13 11/30/13 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $563,200 $0 $563,200 North Tempe Alley Improvement Project Description Estimated Project Costs The City of Tempe has an ongoing alley reconstruction/stabilization program which includes removing soil fines and old soil material and replacing with recycled asphalt (RAP) from wall to wall in alleys. This project would stabilize approximately 10.5 miles of alleys in the area from approximately Miller Rd. to Crosscut Canal, Curry Rd. to Continental Dr. The primary environmental benefit derived from the project is a reduction in dust emissions due to activity in the alley. The project is approximately 94% federal grant funded. Legal / Administration $8,000 Land Acquisition $0 Permit Fees $15,000 Design and Engineering $96,000 Survey / Staking Funding this project will allow the city of Tempe to continue its stabilization program in order to reduce PM 10 emissions. The North Tempe Neighborhood area was identified in the City's Congestion Mitigation Air Quality (CMAQ) funding request through the Maricopa Association of Governments (MAG) in the Paving Unpaved Road Projects category for its regional proximity to Phoenix and Scottsdale, and due to the fact that it is very close - approximately 2 miles - to the County's PM-10 air quality monitoring station in South Scottsdale. $8,000 Construction Management $56,000 Furnishings / Equipment $0 Construction / Improvement $800,000 Geotech / Material Testing 2010-11 Source of Funds NA $8,000 Utility Relocation Fees $25 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $28,175 Total $1,019,200 Project Number: NA Estimated Start Date: 08/01/13 Estimated Completion Date: 11/30/13 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $1,019,200 $0 $1,019,200 53 Residential Street Surface Treatments Project Description Estimated Project Costs This project will provide the ongoing preventative maintenance of local / residential streets throughout the city in accordance with the City's pavement management program. Examples of the various types of treatments include; slurry seal, cape seal, smooth seal, seal coat and crack seal. Allocating funds and effort now will prevent future reconstruction costs that can be 10 times higher than routine maintenance costs. The streets to be maintained in the fiscal year of 2010-11 are bounded by All American Way to McClintock and Baseline to Guadalupe, Guadalupe to the Western Canal and Rural to Price, and Guadalupe to Elliot and Kyrene to Rural. Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement 2010-11 Source of Funds Capital Projects Fund Balance $275,000 $275,000 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $0 Total $275,000 Project Number: 5499951 Estimated Start Date: Estimated Completion Date: Ongoing Ongoing New Appropriations by Fiscal Year 2010-11 $275,000 2011-12 $0 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $275,000 54 2010-11 CIP Projects - Traffic Signals and Street Lighting Program 2010-11 Funded Program Additional Projected Needs 2012-13 2013-14 2014-15 Funding Source Design and Install Fiber Optic Communications: NA General Obligation Bonds - - 107,000 - - 107,000 Federal Grants - - 243,000 - - 243,000 Project Total - - 350,000 - - 350,000 Video Traffic Detection: NA 2011-12 Total 5-Year Program Project Name & Number General Obligation Bonds - 120,000 - - - 120,000 Federal Grants - 305,000 - - - 305,000 Project Total - 425,000 - - - 425,000 - 425,000 350,000 - - 775,000 Program Total 55 Design and Install Fiber Optic Communications Project Description Estimated Project Costs This project will install fiber optic communications media to each signalized intersection along University from Mill to McClintock utilizing existing fiber conduits. This upgrade will require minimal design and construction due to conduits already being in place and the close proximity of the terminating traffic signal control cabinets to the ADOT fiber optic backbone. As a result, one-quarter of the signal system will be on fiber. Utilizing the existing conduits and the state-owned infrastructure will eliminate the need for leased telephone service to the intersections and increase bandwidth to allow for installation of real-time video detection (data gathering) and CCTV monitoring. The City will be able to monitor traffic conditions and adjust traffic signal timing through centralized command and control strategies designed to minimize congestion. Additionally, this project mitigates congestion through enhanced regional multi-agency signal coordination and maximizes the use of existing communications infrastructure. 2010-11 Source of Funds Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications NA $0 Other Project Costs $350,000 Total $350,000 NA Project Number: Estimated Start Date: Estimated Completion Date: 07/01/12 06/30/13 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $0 2012-13 $350,000 2013-14 2014-15 Total 5 Year $0 $0 $350,000 Video Traffic Detection Project Description Estimated Project Costs The project will utilize video detection and CCTV monitoring at arterial traffic signals to obtain real-time turning movement count data. The project will be used to monitor and adjust signal timing to improve traffic flow along the city's major travel corridors. 2010-11 Source of Funds NA Legal / Administration $0 Land Acquisition $0 Permit Fees $0 Design and Engineering $0 Survey / Staking $0 Construction Management $0 Furnishings / Equipment $0 Construction / Improvement $0 Geotech / Material Testing $0 Utility Relocation Fees $0 Utility Undergrounding $0 ITD / Telecommunications $0 Other Project Costs $425,000 Total $425,000 Project Number: NA Estimated Start Date: 07/01/10 Estimated Completion Date: 06/30/11 New Appropriations by Fiscal Year 2010-11 $0 2011-12 $425,000 2012-13 $0 2013-14 2014-15 Total 5 Year $0 $0 $425,000 56 Office of Management and Budget Staff Even though the budget is heard by the Mayor and Council in March, April, and May, its preparation begins several months prior, with projections of City funding sources, remaining bond authorization, reserves, revenues, and expenditures. It continues through numerous phases and culminates with adoption in June. We recognize and appreciate that budgeting is an ongoing process of planning, monitoring, problem solving, and customer service throughout the fiscal year. Each year, every effort is made to improve both the budget process and the usefulness of the budget documents. Cecilia Velasco-Robles Deputy Financial Services Manager Adam Williams Senior Budget & Finance Analyst Tom Mikesell Lead Budget & Finance Analyst Anita Erspamer Executive Assistant Mark Day Senior Budget & Finance Analyst Natalie Winger Accounting Supervisor City of Tempe budget documents are also located on the World Wide Web at: www.tempe.gov/budget If you have questions, call us at 480-350-8350. Our mailing address is: City of Tempe Financial Services/Budget P.O. Box 5002 Tempe, Arizona 85280 The Budget Staff at Splash Playground in Tempe Beach Park. 84