The operator's role in capital improvement planning

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THE OPERATOR’S ROLEIN CAPITAL IMPROVEMENT PLANNING

Presentation prepared for the Illinois Rural Water Association Northern ConferenceOctober 28-29, 2014Utica, IL


CAPITAL IMPROVEMENT PLANWHAT IS IT?» Forecast of major capital improvements over a

pre-determined period of time» A CIP…• Estimates the capital cost of an improvement• Identifies funding sources for each improvement• Forecasts impacts on current and future budgets


DEFINING ‘CAPITAL IMPROVEMENT’

» Improvement Projects• Preliminary Engineering Reports • Pilot Studies• Design Engineering• Construction

» Annual maintenance projects» Utility Rate Studies and Facility Master Plans» Equipment


CAPITAL IMPROVEMENT PLANWHY INVEST TIME IN CREATING A CIP?» Help a community effectively allocate limited resources» Improve communication and cooperation » Provide continuity in financial decisions by linking long-

term planning to the programming and budgeting of major projects

» Stabilize local tax rates » Enable community to leverage state and federal grant-

in-aid programs» Establish an objective rating system


CAPITAL IMPROVEMENT PLANTO SUM THINGS UP….

“Cities without CIP’s are at a disadvantage because there are no mechanisms in place to forecast all

potential capital projects simultaneously.”

-- Capital Budgeting and Finance, A guide to Local Governments (2009)


CAPITAL IMPROVEMENT PLANNINGAN OVERVIEW OF THE PLANNING PROCESS

1. Analyze Community Facility Needs2. Prepare Project Descriptions3. Analyze Fiscal Capacity4. Set Project Priorities5. Develop and Adopt CIP6. Implementation and Annual Updates


Operator’s Wish Lists

» Take 7-10 minutes to fill out wish list form for your communities capital needs.

» We’ll later go through the process of prioritizing the list


CAPITAL IMPROVEMENT PLANFROM A CITY ADMINISTRATOR’S PERSPECTIVE…

https://vimeo.com/user19033329/review/106594104/c34d70bf7d


THE CITY OF ASBURYA CASE STUDY

» TIF and CIP



THE CITY OF ASBURYA CASE STUDY


THE BRAINSTORMING PHASE“WHERE DO I START?”

» Reach out to others» Maintain an annual list so items aren’t

forgotten» “What projects or equipment do we need?”



THE BRAINSTORMING PHASEREMEMBER…

» These are often political decisions, so don’t be afraid to build support in advance• One-on-one meetings• Offer tours or ride-alongs



BUILDING YOUR CASECREATE A CIP PRIORITIZATION MATRIX

MustHaves

QuickWins

Long term needs

Low-HangingFruit

High

Low

Hard Easy

Impact

Ease of Implementation


BUILDING YOUR CASEOBTAIN BACKGROUND INFO» Obtain budgetary cost estimates» Obtain product literature



BUILDING YOUR CASEGAIN SUPPORT» Work with your local engineer and planning

staff, if available» Continue to build support• Code requirements• Regulatory-driven• Identify hot-button issues that address individual

board member’s agendas, or that address public outcry



SUBMITTING YOUR LISTBE PREPARED» Prioritize needs and establish timeline that is

required to implement» Provide brief description of needs sufficient to

allow a board or committee member to understand the project

» Justify expense» Identify potential funding sources



PARTICIPATEBE PREPARED» Prioritize needs and establish timeline that is

required to implement» Provide brief description of needs sufficient to

allow a board or committee member to understand the project

» Justify expense» Identify potential funding sources



PARTICIPATEGET INVOLVED IN THE PLANNING PROCESS» Request to be present at the CIP meetings» Ask for a vote» Stay involved, don’t just assume that there’s

support for your ideas» Offer to clarify if necessary» Offer to obtain additional information



PARTICIPATEGET INVOLVED IN THE PLANNING PROCESS

Project Worksheet Development



ASSET MANAGEMENTWHAT IS IT?

• Storm water Regulations

• DNR Wetlands Requirements

• EPA Regulations - CMOM

• Gov’t Reporting Requirements

• FEMA Floodplain Regulations

• Infrastructure History and Maintenance

• User Information

• Equipment Maintenance Tracking

• Work Order/Service Requests

• City Zoning & TIF Planning

• Urban Forestry Management

• Capital Improvement Planning

• Condition & Cost Analysis

• Permits/Building Inspections

• Hazardous Chemical Sites



ASSET MANAGEMENTHow Do You Manage – Water System

Wells/Booster PumpWater StorageWater System

Main BreaksWater Metering


ASSET MANAGEMENTHow Do You Manage – Sewer System

• WWTF and Lift Stations• Sewer System• Sewer Backups• Sewer Televising &

Smoke Testing• Sewer Repairs


ASSET MANAGEMENTHow Do You Manage

» Sign Inventory• Sign Type/MUTCD Codes• Reflective Rating• Replacement Schedule

• Storm Sewer System• Street Maintenance• Sidewalk Maintenance• Tree Inventory

o Tree Species, Condition, Maintenance

http://www.cheapstreetsigns.com/road_signs/school_crossing_yellow_symbol_36x36


ASSET MANAGEMENTTHE BENEFITS» Identify age of equipment» Monitor when equipment needs maintenance» Keep track of the cost of replacing equipment» Show your Council, Board and Administrator

your needs – This process leads into the Capital Improvement Planning process

http://www.cheapstreetsigns.com/road_signs/school_crossing_yellow_symbol_36x36


QUESTIONS/COMMENTS?

The operator's role in capital improvement planning

Engineering

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