Town of Medway Capital Improvements Planning Committee

Transcription

1 Town of Medway Capital Improvements Planning Committee 5-Year Plan FY 2013 FY /3/12 1

2 Contents Page Summary I. Projects Approved in Prior Years II. Department Requests III. NEDPS Permit IV. Vehicle List III. Project Listing Appendix A - Committee Process Appendix B Funding Availability

3 Summary In the past four years, Medway has approved over $7 million for capital improvements. Much of the spending has been in the form of free cash since very little bonding capacity has been available. For 2013, over $3 million has been proposed of which $1.5 million is is funded from free cash and general funds. It has been beneficial for the Town to have this level of free cash available. Without it, many of the capital needs of the Town would have come at the expense of operating budgets. For fiscal year 2013, funds are being requested for a new ladder fire truck; various road, sidewalk, sewer, and bridge projects; emergency generators; and a number of smaller projects. Due to the limited debt service capacity, only the fire truck and two water projects are recommended for bonding. The Towns ability to continue to fund projects primarily with free cash will be contingent on the amount of free cash available each year. Medway s capital spending is limited by the amount of debt it can carry. Current policy calls for the annual debt service (principle and interest paid annually) to be limited to 10% of the total operating budget. Additionally, the town prefers not to increase the level of the debt burden but will only incur debt to the extent that debt is retired. This is a standard used to maintain good fiscal management. Medway s debt service currently is at 8.5%. Clearly more debt could be carried, however, without increasing revenues, this would require a reduction in the operating budget. The Town will face this situation for the next few years. In 2016, roughly 50% of the Town s debt will be retired. The Town will need to begin planning now on how to best utilize this capacity in order to fund the most significant needs. In this report, the Capital Improvements Planning Committee (CIPC) makes recommendations regarding how this capacity could be utilized. I. Projects Approved in Prior Years Over the past 3 years the Town has approved $6,767,000 in projects for various departments. These projects have improved safety in the schools, upgraded Town equipment, repaired aging roads, and developed the information systems infrastructure. Some of the significant projects that have been approved are listed below. A. Department of Public Works - Repaired $407,914 in roads and sidewalks during FY Purchased new maintenance vehicle for the Water Department for $130,000 - Completed the $1.3 million project to replace the Highland Street water tank - Completed the $1 million project for new water meters - Completed $25,000 worth of upgrades for playground equipment B. Schools - Replaced flashing at the Memorial School - Began work for the Massachusetts School Building Administration (MSBA) $22.1 million Middle School repair project - Approved replacement of the ceiling in the corridor at the Burke School C. Town Administration 3

4 - Completed the $100,000 project to replace the town hall roof D. Police/Fire - Replaced firearms & equipment - Replaced communication center furnishings - Purchased new ambulance for $218,000 - Purchased new radio systems and equipment E. Information Technology - Replaced over 600 computers in the schools - Purchased a Geographic Information System (GIS) for the Planning Board - Completed $60,000 project for information technology upgrades E. Other Departments - Replaced an 18 passenger bus for the Senior Center - Completed $70,000 worth of upgrades for the solid waste facilities F. Projects in Process The Town has also approved a number of projects that are currently in progress. These include: - $22.1 million total budget for Middle school repair project - Allocated $300,000 for Brentwood drainage project - Allocated $935,000 to replace the water main on West Street - Allocated $1,200,000 to replace the water main on Main Street II. Department Requests The total project requests for 2013 were consistent with prior year. For fiscal 2013, 70 requests were submitted totaling $28.8 million. Given the large number of projects that have been requested, it will be unproductive to discuss them all. Therefore, some of the higher dollar or more pressing projects that have been requested will be reviewed. A. DPS Facility The Departments of Public Service (DPS), Water and Sewer facilities are in severe disrepair. The floors are crumbling, the walls are weak and there is insufficient garage space to house all the vehicles the Town owns. In 2009, the DPS department requested funding to begin designing a new facility that would include offices, garages, repair facilities and storage. The facility cost is estimated at $14.5 million, which includes design work. As yet, the Town has not acted on this request due to the lack of funding and disagreement on the scope of the facility. Debt service capacity will not be sufficient to fund such a large project until Additionally, there is no agreement between the Town managers, the BOS and CIPC on the size, mission and purpose of a facility. The CIPC has recommended to the BOS that a building committee be formed consisting of representatives from the Town, CIPC, BOS, and DPS to determine the need and scope of a facility so that we will be ready when the funding is available to move forward on construction. This process needs to begin soon. The target date of 2016 is fast approaching and the debt service availability will make it feasible to construct a new DPS facility without the need for a debt exclusion or a prop 2 ½ override. 4

5 It is critical that the DPS facility be addressed because the Town has run out of garage space for existing and new equipment. Significant funds are being spent on DPS equipment which should be properly housed to protect it from the elements and vandalism. B. School Improvements The $22.1 million school repair project is well under way. Phase one covering repairs of the front office in the 1970 addition, classrooms in the front of the original school and construction of a new entrance were completed in April Phase two focusing on the old gym and boiler room has begun and will continue through June. The largest phase will begin this summer when repairs to the majority of the classrooms will commence. The project continues to remain on track and on budget. C. Roads, Sidewalks and Bridges The Town has an extensive road network that has been impressively maintained with minimal funding. Although the Town receives approximately $300,000 of section 90 funds from the state annually this is not a sufficient amount to maintain the Towns streets. For 2013 the CIPC is recommending $600,000 for road, sidewalk and bridge improvements. In addition, $40,000 is recommended for Medway s share of the engineering study for the Sanford Street Bridge shared with Franklin. Anticipated repairs to this bridge will be made in D. Fire Department The Fire department s ladder truck is 30 years old and the ladder has become temperamental and is a safety concern. The CIPC recommends that $900,000 be bonded to pay for a replacement vehicle. Funds to purchase a command vehicle for the department are also recommended. Currently, the department does not have a command vehicle and first responders often utilize personal vehicles. These vehicles are not designed for emergencies and do not have sufficient storage to bring necessary equipment to emergency situations. This often results in additional time lost waiting for support or additional risks being taken by first responders. E. Water Department The inflow study conducted in 2011 identified significant problems on the Chicken Brook sewer line. The study showed that flow volume along the line increased substantially and identified a number of causes. Repairing the problems along that line will reduce the volume flowing to the Charles River Water Treatment plant and reduce the Town s contribution to the plants operation. F. Route 109 Improvement Project The Rt. 109 improvement plan is to reconstruct the section of roadway from the intersection of Holliston Street to the Community Church. The road will be re-designed to add sidewalks and lighting and reduce the number of curb cuts to improve the flow of traffic. The plan calls for installing traffic lights at the plaza shopping center. The plan also calls for widening Rte. 109 at the 5

6 intersection of Franklin and Milford streets, making it safer. The project is expected to improve the flow of traffic and safety for the next 25 years. The design is expected to be paid for with state and federal funds and the construction project is expected to be paid for using federal funds. Prior to the initiation of this project the water main along route 109 must be replaced. This project was approved for FY 2012 and began in the spring. III. NPDES Permit Over the past few years, the Environmental Protection Agency (EPA) has been making an effort to improve the quality of water in the rivers through the nation. A series of water management regulations, called permits, are being issued to towns, like Medway, where storm water is drained into a river. These permits define milestones for the control of runoff into rivers through storm water drainage. A permit has been issued to Medway as storm water from the Town drains into the Charles River Basin. The permit includes milestones and deadlines for meeting requirements and the EPA has indicated that they will levy fines for towns that do not meet them. These milestones include mapping the flow water into the Charles River including water bodies in town that collect and drain runoff. Measurements taken will form the baseline of what aspects of the permit the town will be required to address. The work required to meet the regulations for the permit has been estimated to be over $24M. Residents approved a low-interest loan in 2012 to fund a study that will identify the specific actions required by the town and the time table for their completion. Once the study has been completed, the Town will have a thorough understanding of the amount of money it will take to meet the regulations. 6

7 IV. Vehicle Fleet Medway has 87 vehicles including trucks, automobiles, fire trucks and police cars. On average, In 2010 and 2011, Medway purchased 5 vehicles, however, in 2012, only 3 vehicles were purchased. Medway must purchase 5 vehicles per year to prevent the fleet from aging to the point where there the cost of maintenance exceeds the budget. Count of Row Labels yr Grand Total 87 7

8 V. Project Listing Below is the list of projects requested by the Town departments. Projects FY 2013 Schedule Project Description Department 5 Year Total & Beyond VARIOUS ROAD/SIDEWALK IMPROVEMENTS DPS $3,600,000 $600,000 $750,000 $750,000 $750,000 $750,000 BRIDGE REPAIRS - SANFORD STREET DPS $400,000 $40,000 $360,000 $0 $0 $0 VARIOUS STORM WATER IMPROVEMENTS DPS $500,000 $0 $0 $500,000 $0 $0 REPLACE HIGH BAND RADIO SYSTEM DPS $140,000 $140,000 $0 $0 $0 $0 INSTA FOUR POST LIFT DPS $28,000 $28,000 $0 $0 $0 $0 REPLACE FLATBED TRUCK DPS $161,000 $0 $161,000 $0 $0 $0 CONSTRUCT NEW DPS FACILITY DPS $14,500,000 $0 $0 $0 $2,000,000 $12,500,000 PURCHASE EXCAVATOR EQUIPMENT DPS $120,000 $120,000 $0 $0 $0 $0 PURCHASE SIDEWALK PLOW /BLOWER DPS $110,000 $0 $110,000 $0 $0 $0 REPLACE HIGHWAY SUPERINTENDENT TRUCK DPS $40,000 $0 $40,000 $0 $0 $0 REPLACE ONE TON DUMP TRUCK DPS $58,000 $58,000 $0 $0 $0 $0 PURCHASE OF ASPHALT HOT BOX AND ROLLER DPS $50,000 $0 $50,000 $0 $0 $0 REPLACE VEHICLE MAINT TRUCK DPS $40,000 $0 $40,000 $0 $0 $0 PURCHASE POTHOLE REPAIR EQUIPMENT DPS $80,000 $0 $0 $80,000 $0 $0 REPLACE EMERGENCY GENERATOR Facilities $70,000 $70,000 $0 $0 $0 $0 GENERAL TOWN WIDE FACILITY IMPROVEMENTS Facilities $100,000 $0 $50,000 $50,000 $0 $0 REPLACE ONE TON DUMP TRUCK Parks $58,000 $0 $58,000 $0 $0 $0 REFURBISH OAKLAND BASKETBALL CT Parks $15,000 $15,000 $0 $0 $0 $0 PARK & FIELD IMPROVEMENTS Parks $470,000 $70,000 $100,000 $100,000 $100,000 $100,000 REPLACE LAWN TRACTOR Parks $20,000 $0 $0 $20,000 $0 $0 REBUILD UPPER MEMORIAL FIELD Parks $40,000 $0 $40,000 $0 $0 $0 INSTALL IRRIGATION-IDYLBROOK Parks $60,000 $0 $60,000 $0 $0 $0 PURCHASE WING MOWER Parks $60,000 $0 $60,000 $0 $0 $0 OPEN SPACE/PARK RECREATIONAL USE STUDY Parks $30,000 $30,000 $0 $0 $0 $0 REPLACE LARGE KUBOTA TRACTOR Parks $30,000 $0 $0 $0 $0 $30,000 VARIOUS SEWER COLLECTION SYSTEM IMPROVEMENTS Sewer $200,000 $200,000 $0 $0 $0 $0 PURCHASE SEWER JETTING EQUIPMENT Sewer $130,000 $0 $130,000 $0 $0 $0 PURCHASE WATER SUPERINTENDENT TRUCK Water $35,000 $35,000 $0 $0 $0 $0 REPLACE ONE TON DUMP TRUCK Water $58,000 $0 $58,000 $0 $0 $0 INSTALL LOVERING TANK MIXER EQUIPMENT Water $100,000 $0 $100,000 $0 $0 $0 REPLACE WATER MAINS - HIGHLAND STREET Water $1,030,000 $0 $0 $1,030,000 $0 $0 REPLACE WATER MAINS - HOLLISTON STREET Water $1,200,000 $0 $0 $0 $0 $1,200,000 Page 1 Total $23,533,000 $1,406,000 $2,167,000 $2,530,000 $2,850,000 $14,580,000 8

9 Project Description Department 5 Year Total & Beyond LADDER TRUCK Fire $900,000 $900,000 $0 $0 $0 $0 FIRE DEPARTMENT COMMAND VEHICLE Fire $48,000 $48,000 $0 $0 $0 $0 TECHNOLOGY EQUIPMENT Information Technology $728,045 $258,045 $145,000 $115,000 $210,000 $0 SYSTEMS VIRTUALIZATION Information Technology $101,955 $101,955 $0 $0 $0 $0 REPLACE 2 HVAC RTUS Library $21,000 $21,000 $0 $0 $0 $0 REPLACE FIRE ALARM PANEL Library $10,000 $0 $0 $0 $0 $10,000 REPOINT EXTERIOR BRICK & MASONRY Library $30,000 $0 $30,000 $0 $0 $0 EXISTING FURNITURE REFURBISHED Library $10,000 $0 $10,000 $0 $0 $0 REPLACE CARPET Library $40,000 $0 $0 $40,000 $0 $0 NEW ROOF SHINGLES & GUTTERS Library $60,000 $0 $0 $0 $60,000 $0 REPLACE PHOTOCOPIER Library $10,000 $0 $0 $0 $0 $10,000 REPLACE LOWER LEVEL HVAC UNIT Library $10,000 $0 $0 $0 $0 $10,000 LIBRARY INITIATIVES Library $23,150 $23,150 $0 $0 $0 $0 Create GIS (Geographic Information System) Planning Board $187,000 $55,000 $66,000 $66,000 $0 $0 COMMUNITY SIGNAGE PROJECT Planning Board $64,430 $20,000 $44,430 $0 $0 $0 POLICE SERVER VIRTUALIZATION Police $8,000 $8,000 $0 $0 $0 $0 REPLACE BALLISTIC VESTS w/ TRAUMA PLATES Police $17,135 $0 $17,135 $0 $0 $0 PURCHASE PORTABLE OUTDOOR EMERGENCY LIGHTING Police $11,100 $0 $11,100 $0 $0 $0 REPLACE CARPET 2nd FLOOR Police $13,029 $0 $0 $13,029 $0 $0 EMERGENCY GENERATOR REPLACEMENT - BURKE School $40,150 $40,150 $0 $0 $0 $0 REPAIR WALKWAYS TO CENTER STREET LOT - MEMORIAL SC School $42,000 $42,000 $0 $0 $0 $0 EMERGENCY GENERATOR REPLACEMENT - MCGOVERN School $30,150 $0 $30,150 $0 $0 $0 CLASSROOM FURNITURE REPLACEMENT - MCGOVERN School $155,040 $78,000 $77,040 $0 $0 $0 PARKING LOT PAVING - BURKE SCHOOL School $150,000 $0 $150,000 $0 $0 $0 FIRE ALARM SYSTEM REPLACEMENT - BURKE School $95,000 $0 $95,000 $0 $0 $0 MAINTENANCE VAN REPLACEMENT School $16,911 $0 $0 $0 $16,911 $0 LOCKER REPLACEMENT - MIDDLE SCHOOL School $73,950 $0 $73,950 $0 $0 $0 WINDOW BLIND REPLACEMENT - BURKE School $40,000 $0 $0 $40,000 $0 $0 PARKING LOT, WALKWAY, PERIMETER ACCESS IMPROVEMENT School $460,000 $0 $0 $460,000 $0 $0 WINDOW REPLACEMENT - MCGOVERN School $600,000 $0 $0 $0 $0 $600,000 CLASSROOM FLOOR REPLACEMENT - BURKE School $74,700 $0 $0 $74,700 $0 $0 WINDOW BLIND REPLACEMENT - MCGOVERN School $11,000 $0 $0 $11,000 $0 $0 WINDOW REPLACEMENT - BURKE School $880,000 $0 $0 $0 $0 $880,000 FOOD SERVICE EQUIPMENT REPAIR/REPLACEMENT School $100,000 $0 $0 $100,000 $0 $0 TENNIS COURT REPAIRS/RENOVATIONS - MIDDLE SCHOOL School $110,000 $0 $0 $0 $110,000 $0 SANFORD HALL RENOVATIONS Town Manager $65,000 $0 $65,000 $0 $0 $0 SANFORD HALL RAISE CEILING Town Manager $38,500 $0 $38,500 $0 $0 $0 PUBLIC AREA RENOVATIONS Town Manager $40,500 $0 $40,500 $0 $0 $0 Total Projects $28,848,745 $3,003,313 $3,062,819 $3,451,744 $3,248,927 $16,090,000 Projects Suggested by Medway s Master Plan The Town of Medway completed a master plan in This is a comprehensive study of the Town s current and future needs. The Master Plan lays out goals and objectives that the Town should pursue. This includes recommendations for the implementation of projects and studies in the Town. In accomplishing this, the Town will need to consider the impact on the capital budget and prioritize their needs. Below is a summary of some of the needs cited in the 2009 Master Plan. Projects associated with developing the Town s energy efficiency exist but require additional attention over the next 5 years. By developing and implementing a set of guidelines for adopting environmentally sound practices, projects requiring energy components will incorporate industry best practices. Projects related to improving traffic and pedestrian safety are of particular interest. While these projects are prioritized as a general rule, some require significant capital and take time to implement. It is necessary for the Town to identify the projects that have the greatest impact on traffic and pedestrian safety. Improving Medway s recreational spaces is desirable to Town residents. While more immediate Town needs have superseded these projects, they require attention within the next 5 years. The CIPC recommends investigating opportunities to submit grants for the development and maintenance of Medway s recreational trails and spaces to improve usage and safety. 9

10 Some goals and objectives will reduce capital needs and maintenance over the long term. Conserving open space and encouraging compact development to reduce sprawl minimizes new roadways and concentrates infrastructure installations into smaller areas facilitating ease of maintenance. These concepts should be investigated as a means to control the growth of capital equipment requirements for the Town. Projects Recommended by Water Master Plan A Water Master Plan was submitted in The plan outlines needed changes to improve the Town s drinking water quality and quantity. It also outlines projects to improve the delivery of water to the customer. Replacing meters to provide more accurate usage and remote reading is among the recommendations in the Water Master Plan. Benefits of remote meter reading are enhanced customer service and lower costs associated with the reduced time to read meters and enter data. Employee safety is improved as it eliminates the need for employees to enter homes to read meters. Billing periods are shortened improving cash flow. Leaks are more easily detected and erratic consumption can be identified and controlled. The Town s water infrastructure requires a great deal of capital over the next 20 years. Reconstruction of the Water Street and Populatic Pond wells are necessary. In addition, new wells are needed. The total cost over the next 20 years to implement the Master Plan is over $12M. Projects outside the master plan are necessary and must be considered within the next 5 years. These include radon removal at well sites and the design and plans for a well on Adams Street. The plan is to identify a method to make the changes based on the priority set in the Master Plan in a series of phases. As with the maintenance budget, this must be an annual process. Phase A Highland Street replace Water Storage Tank $1,500,000 Completed in 2012 Well Exploration and Satellite Well $550,000 Holliston Street replace water main $960,000 Planned for 2014 Village Street abandon water main $95,000 Coffee Street abandon water main $60,000 Lovering Street abandon water main $155,000 Lovering Street rehab Water Storage Tank $100,000 Planned for 2015 Highland Street replace water main $520,000 Planned for 2014 Legion Avenue area replace water mains $310,000 Planned for 2015 Oakland Street replace water main $195,000 Main Street replace water main (Route 109) $1,300,000 Begun Spring 2012 North Street area replace water mains $460,000 Planned for 2015 Wellington Street area replace water main $520,000 Winthrop Street abandon water main $270,000 Adams Street Well & Treatment Station $1,200,000 Village Street replace water main $845,000 Charles River Street replace water main $300,000 West Street replace water main $840,000 Approved 2011 Phase A Total $10,180,000 Phase B Holliston Street replace water main $375,000 Winthrop Street and Hill Street replace water main $1,250,000 Maple Street replace water main $455,000 10

11 Oak Street and Mechanic Street replace water main $450,000 Phase B Total $2,530,000 Phase A & B Total $12,710,000 11

12 A. Process Overview Appendix A Capital Improvement Planning Process The Capital Improvement Planning Committee s (CIPC) role is to evaluate the Town s capital needs and to recommend to the Town Administrator, Board of Selectman (BOS) and Town Meeting the projects to be undertaken. Annually, the committee meets with department managers and reviews their capital needs for current and future years. The committee then evaluates the requests and determines available funding. Available funding can be in the form of free cash as certified by the state, grants, enterprise funds, or bonding. Once the level and form of funding is determined the CIPC prepares its recommendation for the BOS. The project requests are reviewed based on the following criteria: 1. Impact on safety of residents and employees 2. Projects required by law 3. Impact on greatest number of people 4. Projects with significant immediate need Projects that are prioritized based on the above criteria and for which there is sufficient funding are then brought before the BOS and Town Meeting for the Town s approval. B. Report Scope This is the third year that the CIPC has issued a 5 year report. The report is intended to provide a snapshot of the Towns needs over the next few years so that they may plan actions and budget funding in anticipation of future needs. This report will cover the capital spending for fiscal years Only FY2013 will be presented in the warrant at the June Town Meeting. Years are projections based on current estimated needs This report does not cover operating expenses. Funding recommended in the capital budget is generally for long-term investments that are not contemplated in departmental operating budgets. To be considered a capital project, the project must cost more than $3,000 and have a substantial useful life. 12

13 Appendix B Funding Availability There are multiple options available for funding capital projects. Those options include: free cash, enterprise funds, grants and bonds. Each of those funding options will be discussed below. A. Free Cash Free cash represents funds remaining at the end of a fiscal year that are not committed to a department or project. These funds must be certified by the State and can then be used by the Town for any purpose. Frequently these funds are used to bolster reserves and pay for capital projects. B. Enterprise Funds Some departments, such as the Water Department, Sewer Department and Health Department, raise their own revenue to fund their operations through fees and charges to the users of their systems. These departments do not receive funding from Town taxes and must be self sustaining for both operations and capital spending. Capital projects that are not covered by current rate structures could result in higher rates if there are not sufficient retained earnings to pay for the projects. C. Grants There are many government and non-governmental organizations that provide grants to support initiatives. Some examples include the Massachusetts School Building Association and the Department of Homeland Security. D. Bonds and Debt Service Bonds are debt incurred by the Town when issuing municipal securities. These bonds are repaid over time depending on the life of the asset financed. The Town has a general guideline of keeping the annual debt service cost to less than 10% of the total operating budget. Annual debt service cost is the amount of interest and principle paid annually on outstanding debt, excluding self funding debt such as debt for departments funded through enterprise funds (water & sewer for example). Debt service is not the total debt outstanding. The goal of the CIPC is to keep debt service spending under the 10% target rate. For fiscal 2012, Medway s debt service was 8.25% of the operating budget. With current debt commitments, Medway will see its debt service expenditure reduced by over 50% by the year This creates an opportunity for the Town to improve its infrastructure. The challenge is that many projects need to be initiated immediately and the Town is already nearing the debt service limit for the next few years. With the approval of the MSBA project for the middle school, the desire to keep other tax increases to a minimum and the uncertainty of state funding, the CIPC will not be recommending projects that require bonding this year. 13