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Home My WebLink About05282024 CC Work Session Agenda Packet�� wll��llll��llllllllll�lilwou 6� -J May 28, 2024 City of Port Angeles Council Special Meeting Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5`h Street, Port Angeles, or remotely via telephone or video link. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The Mavor will determine time of break Hearing devices are available for those needing assistance. The items of business for regular Council meetings may include the following: Audio only: 1-844-992-4726 Access code: 2552 644 5565 Webinar password: ZPj6B2vnpM4 (97562286 when dialing from a phone or video system) Webex link: httys:Hcitvofpa.webex.com/citvofpa/i.php?MTID=mf5c7e29e24b9250729c508d5d4733a25 These access codes are good for the May 28, 2024 meeting only. A. Call to Order — Special Meeting at 5:00 p.m. B. Capital Facilities Plan (CFP) and Transportation Improvement Plan (TIP) Work Session • Presentation by Finance Director Sarina Carrizosa on the CFP and TIP for the years 2025-2030 The document is available on the City's website here: 2025-2030-Preliminary-Capital-Facilities- Plan-and-Transportation-Improvement-Plan-PDF (cityofpa.us) C. Adjournment — 7:00 p.m. The City Council encourages citizen participation. An opportunity for public comment will be available during regular meetings. Upcoming meeting information can be found on the City website: www.ci! ofpf a.us/583/Meetings-Agendas. Community members may also contact City Council by email at council( a�cityofpa.us, or written letter mailed to 321 East 5" Street, Port Angeles, WA 98362 or by dropping it by City Hall. Learn more by visiting: www.cityofpa.us/137/City-Council Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contacting the City Clerk's Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez -Bailey by phone at 360- 417-4634, or by email at cityclerk e,cAyofpa.us, to request accommodations or receive instructions for closed captioning. May 28, 2024 Port Angeles City Council Special Meeting Page I CAPITAL FACILITIES PLAN I Provides adequate public faci l iti( serve existing and new developn Reduces the cost of serving new development with public faci l itiE Ensures that these facilities will k place when development occu r-c Helps the City maximize our limi resources efficiently by planning needs, prioritizing and coordinat projects and identifying funding options. MAINTENANCE Maintenance of assets are included in the City's operating budget. $2.4M planned in 2024. Parks - $88,000 Streets - $119,900 Electric - $896,500 Water - $669,500 Wastewater - $335,000 Solid Waste - $175,500 Stormwater - $45,000 Capitalized at $7,500 Learn about Capital projects, funding sources and costs. Discuss the CFP. Review and revise priorities if needed. Little to no rate impact. Set aside cash that is equal to the prior years' depreciation. Leverage projects. No new debt. Focus on preventable maintenance to increase asses I ife. Complete streets initiative.* *Ordinance #3675 adopted in December of 207 CFP CONSIDERATIONS Pisi ng cost of inflation significantly impacted affordability in all utilities. May impact the ability to deliver essential services to the community. Total combined project increase of $7S.8 million since the 2024- 2029 C F P. CAPACITY While funding may have been identified for projects work continues to ensure there is adequate staff to complete the critical capital needs of the Cit) Without these additional resources projects will move at slower pace or be delayed in total. Reduction of backlogged projects is a key focus area. ESTIMATED PERSONNEL NEED AeED C- - PERSONNEL PROJEC - -OURS Many projects are in a plannir or due diligence phase. Several projects are multi -yea in nature and will be seen in more tha n one yea r u nti I completion. Projects included in the plan are critical and should not be deferred. The possibility of grant fundir is considered. FIRE - $30,623 • FD0318-Emergency Management Pods • FD041S -Turnout Gear • FD061S - Fire Hoses POLICE - $570,417 • PD0116 - Mobile Data • PDO119 - Comp. Dispatch • PDO120 - Police Tasers • PDO122 - Police Radios • PDO123 - PenCom ROIP • PD0307 - Police Range • PD0322 - 911 Phone Equip PARKS - $1,566,272 • PK0220 - Synthetic Turf at Volunteer Field • PK0802 - Neighborhood Park Development • PK0819 - City Pier Railing Replacement :W148 950,000 1,550,000 1,050,000 1,050,000 Electric �� 1,271,000 1,050,000 Equipment Services 2,042,700 2,216,900 2,277,000 2,250,200 2,270,800 2,369,600 General Government 4� 1,109,500 1,798,500 640,500 646,500 633,500 637,500 Information Technologies \ \ MR 7�� 496,700 541,700 211,700 641,700 318,000 498,000 Medic 1 50,500 50,500 50,600 50,600 50,600 50,600 Solid Waste (incl debt) 403,200 404,400 400,800 595,400 405,300 407,300 Stormwater �� 576,000 1,109,000 776,000 1,140,000 715,000 2,123,000 Transportation 8,550,800 13,492,000 16,515,000 6,600,000 5,170,000 440,000 Wastewater & CSO (incl debt) 1,722,300 1,494,300 1,714,100 1,724,700 1,839,500 4,542,200 Water N 1,100,000 2,100,000 1,200,000 2,200,000 1,300,000 2,400,000 Utility �� 5,684,000 6,399,600 5,982,100 6,597,400 6,421,100 6,808,900 Grant 7,409,700 11,353,000 13,970,000 5,350,000 3,800,000 3,093,000 General Fund 2,029,200 1,600,700 1,663,900 1,629,700 1,512,400 1,563,200 Donations 133,000 953,000 53,000 53,000 53,000 53,000 Interest 57,000 53,500 59,900 41,600 34,900 43,500 REET 647,800 910,000 510,000 680,000 210,000 210,000 Utility Rate Stabilization Reserves 448,500 1,345,200 355,000 1,383,500 509,900 2,121,000 Landfill Post -closure Reserves - - - 195,000 - - Internalservicefunds 81,200 77,000 94,500 57,600 65,100 79,300 Pencom 50,000 50,000 50,000 50,000 50,000 50,000 Range User Fees 16,300 16,300 16,300 16,300 16,300 16,300 Lodging Tax - - - - - - NICE Funds 120,000 69,000 161,000 - - 300,000 Housing Tax Transportation Tax " 646,000 1 1,330,000 1 2,420,000 1 845,000 1 1,080,000 1 180,000 REVENUE BY TYPE AND YEAR 0 35 30 20 la 10 REVENUESY YPE &YEAR 7771 oEE oG $-E ®Gene alFind o Dona "ons odg E c ® m o _II o REET c$ -'a" cax P 0 ■m ans-ponation Governmen mE wml r So mE water SPENDING BY TYPE AND YEAR M 40 30 . I . . ..... . 20 .0 2024 SPENDING BY PROJECT Tl YPE AND YEAR 2025 2026 --ces Se v Em -eri cic El quipmem El _d Was- M So - Info mat'on Techno-ogies ' to El Trans -oo-taflon Wastewater & CSO m IVed'c 2028 2029 2030 M Gene-aw Gove-nment El Stormwaxer M Wa ter CASH BALANCES 4 2 CASH BALANC--S T- Beginning Cash 2030 ProjectedCash CASH RAT I O Cash Ratio to Depreciation CASH RAT I O 16.0 14.0 1 Z,0 10.1 10.0 8.0 6.0 5.7 4.0 2.7 2. « Z.0 q. . - - . < / E / k \ o C CL ® U \ 15.0 15.5 7.2 10.6 2.7 2.4 2.0 12 1.3PA- 1 6.2 E / w CL > \ LU f / � \ . ƒ LU 2024 ZOZS a ZOZ6 2027 ZZ OS A■ A&A& & DVERN M ENTAL CASH FLC Beginning Cash Balance IIIINIIII 880,734 587 234 418,434 409,634 392,834 538 034 Utilities 60,500 60,500 60,500 60,500 60,500 60,500 Grants�� - 1,100,000 - 25,000 - General Fund Funding 746,700 490,700 432,700 413,700 425,700 429,700 Donations RON 83,000 3,000 3,000 3,000 3,000 3,000 Other Funds (REET, Lodging tax) on 219,300 219,300 219,300 219,300 219,300 219,300 ... .......... Project cost (1,403,000 2,042,300 724,300 738,300 5 867,300 4m*63,300 An additional transfer from the General fund in the amount of $75,000 is planned each year starting in 2025 to build the cash to depreciation level over time per Council directives. a .: 4N M ENTAL CASH FLC .�'. Beginning Cash Balanced iiii....iiiiiiiiiii 807,282 648,982 820,682 782,382 664,082 792,082 Utilities Reserves 355,800 434,000 150,800 534,000 257,100 390,300 Grants - - - - - - Revenue for computer replacements \\ \ \ - - - - - - General Fund \ 140 900 107 700 60 900 107 700 60,900 , 107,700 Interest/Donations Other Funds 655,000 370,000 250,000 760,000 190,000 600,000 Project Costs Transfer increases from all operating funds are planned starting in 2025 to complete the projects recommended. Be innin Cash Balance . 10,681,381 5,391,381 1,819,381 1,157,381 625,381 993,381 Electric Rates Transfer 800,000 900,000 900,000 1,000,000 1,000,000 1,000,000 For building from Reserves - - - - - - Adjustments for cash timing - - - - - - „ General Fund - - - - - - Donations Insurance 50,000 50,000 50,000 50,000 50,000 50,000 Other Funds Grants 421,000 6,561,000 - 4,522,000 600,000 2,212,00011,582,000 - - 682,000 - 792,000 Project cost y yyy � A $3.7 million transfer from excess operating reserves is planned in 2024 to complete the Light Operations building. Beginning Cash Balance 4,923,888 4,847,888 2,783,588 3,083,588 333,588 Water Rates 1,100,000 1,100,000 1,200,000 1,200,000 1,300,000 Grants - - - - - Bonds/Interest/Other - Excess Operating Reserve 1 1,000,000 - 1,000,000 - General Fund - - - - - Donations - - - - - Other Funds -NPS Reserves for Industrial Facility Proiect cosh (1.176.0001 (4.164.3001 (900.0001 (4.950.0001 (230.0001 In 2027 and 2029, an increase of approximately 1.5% to rates is planned to complete large critical projects. The use of $4.5 million will occur from reserves designated for rate stabilization and infrastructure. • ITJ �. 2,552,438 Beginning Cash Balance, 2,259,238 2,897,438 1,638,838 1,114,238 1,503,738 , 210 Wastewater Rates� 1,200,000 1,200,000 1,400,000 1,400,000 1,400,000 1,400,000 Grants - - - - - 2,085,000 Bonds/Interest/Other 162,900 38,000 48,700 27,500 18,700 25,300 General Fund - - - - - - Donations - - - Transfer from excess operating reserves 245,000 - - - - - Combined Sewer Overflow Surcharge 2,358,200 2,358,200 2,358,200 2,358,200 2,358,200 2,358,200 - Debt Payments (projected) (2,243,800) (2,101,900) (2,092,800) (2,061,000) (1,937,400) (1,326,300) Project Costs (2,015,500 856,100 2,972,700 2,249,300 1,450,000 2,885,000 yy An esti mated i ncrease of 3.0% in 2025 and 2027 wi I I occu r to the rates to fund several large projects. Utilizes $1.1 million from excess reserves in the operating fund. DLI Beginning Cash Balance Landfill SurcharL-e* Solid Waste Rates Grants Bonds (net used & paid) General Fund Landfill Post -Closure Reserves Interest Income Project Cost 0 1,407,633 1,SS0,833 1,11S,233 1,411,033 1,616,433 1,81S,733 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 1,283,400 300,000 300,000 300,000 300,000 300,000 300,000 (1,194,300) (1,194,S00) (1,193,800) (1,197,100) (1,194,300) (1,194,300) - - - 195,000 - - 14,100 1S,S00 11,200 14,100 16,200 18,200 260.00011 1840.00011 110S.00011 1390.00011 1206.00011 1730.000 No rate changes are planned in the 2025-2030 CFP cycle. 01NLvALTJ !V12MN!Wl:■2M6 Beginning Cash Balance�� 2,792,171 2,616,571 2,840,571 1,681,571 1,500,571 1,915,571 Utilities Reserves 461,000 600,000 600,000 700,000 700,000 800,000 Grants - 100,000 425,000 - 425,000 - 1,008,000 Bonds General Fund 15,000 15,000 15,000 15,000 15,000 15,000 Use of Reserves - One Time Transfer - - - - - - Other Funds NICE Funds - 69,000 161,000 - - 300,000 Proiect cost (751,6001 (885,0001 (1,935,0001 (1,321,0001 (300,0001 (3,929,0001 Rate increases of approximately 3.0% in the 2026, 2028 and 2030 years in line with the cost -of -service analysis schedule. Utilization of NICE funds for rate stabilization. Ll 1,505,391 1,515,891 1,341,691 1,392,291 1,493,491 Beginning Cash Balance 1,442,891 50,500 50,500 50,600 50,600 50,600 50,600 ' Utility Reserves Grants Il 1111111111,1111MIR- - - - - Bonds General Fund ' Donations/Insurance - - - - - - Other Funds - - - - - - � Project Costs - No rate chanaes are Manned in the 2025-2030 CFP cycle. °~ _ Beginning Cash Balance ............. ... 1114 ..... .. . .... 2,283,153 2,153,353 2,172,353 2,391,953 3,318,753 4,302,753 Vehicle purchases 11111111111"'A (2,172,500) (2,197,900) (2,057,400) (1,323,400) (1,286,800) (1,518,600) Utilities Reserves 1,065,200 1,141,600 1,142,200 1,149,300 1,149,900 1,204500 General Fund 896,300 998,300 1,040,300 1,043,300 1,055,800 1,085,800 WAS KA Sales, Interest & Grants 78,700 74,500 92,000 55,100 62,600 76,300 Internal Service Funds . ...... ......... 2,500 2,500 2,500 2,500 2,500 3,000 4 h I Ir I a VIP,hcRl� U D *I! 0 2,843,100 821350 ransportawn Benefft Donadons I 900000 Genera- Fund 66%300 Gran.s 2015000 0 am 0.000.00(lO.00O.00(30.000.00gg;o.000.00(=SO.000.00(50.000.000 I I I I I I I I I I I I E 4 IT Projects $101 m City Council Work Session I May 28, 2024 1 Slide 42 Unfunded projects are i ncl ud the CFP to demonstrate the 1 capital need in each fund. Unfunded projects are typica large scale and costly. UNFUNDED PROJECTS The unfunded designation does not reduce the significance or importance of these projects. Rather this indicates these projects are not an economic rea I ity without reprioritization of the projects. The City's capital plan is diverse, thriving and changing to meet the needs of our community. The plan is sustainable, without unnecessary rate increases or burden on other City funds. Guidance has kept the capital plan on course and ensured the City is not over committing our resources. Ensures City infrastructure may be enjoyed by our community for years to come. NEXT STEPS MAY City Council CFP/TI P 28 Work Session DUNE CFP/TIP Public Hearin 4 1st Reading of Pesol ut CFP/TIP Public Hearin( JUNE Continuation & 2nd 18 Reading of Pesol ution RECOMMENDATION TO CITY COUNCIL The Utility Advisory Committee sent a favorable recommendation to the City Council for approval of the utility portion of the 2025-2030 Capital Facility Plan with the inclusion of a project to analyze the Industrial Water Line siting.