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HomeMy WebLinkAboutPacket - 02/04/2013 - Committee of the WholeDerik Morefield, City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 dmorefield@ci.mchenry.il.us MEMORANDUM DATE: January 30, 2013 TO: Mayor and City Council FROM: Derik Morefield, City Administrator Carolyn Lynch, Finance & Accounting Manager CC: Department Directors RE Transmittal of the FY13/14 through FY17/18 Capital Improvement Program (CIP) Provided for your review is the City of McHenry FY13/14 through FY17/18 Capital Improvement Program (CIP). As you will see, the CIP has been revised and expanded to include, most notably, a “Status Updates” chapter that includes implementation/completion updates for projects approved for implementation as part of the FY12/13 Budget; and, detailed project narratives for all projects identified in the proposed FY13/14 through FY17/18 5-year planning period. The FY13/14 - FY17/18 Capital Improvement Program, as presented, continues to reflect the guiding principles that it be balanced and meet the needs of a full- service city. In establishing this balance, it is important to identify that this plan includes the funding of projects which are related both to the maintenance and replacement of existing assets – from vehicles and equipment to playground amenities – as well as the evaluation and introduction of new projects, services and facilities to be able to respond to the increasing needs of a growing and diverse population. This balance is not only desirable but, more importantly, necessary if McHenry is to retain and expand upon the high quality of life which its residents enjoy. Ultimately, the benefit of the 5-Year CIP is not measured in the number of projects or dollars expended in any single year, but rather is measured cumulatively in achieving the long-range goals of the community. As proposed, the schedule of projects identified in the 5-Year CIP far exceeds the City’s existing financial resources however this is not unexpected, unusual or uncommon. Conversely, this is one of the benefits of having a capital improvement program. It allows for the annual evaluation, prioritization, and scheduling of projects via a uniform, consistent, and objective process. In addition to recommending projects for funding in the Capital Budget Year, the CIP also identifies and outlines those projects that are recommended to be undertaken in the succeeding five years and, hence, compels the City to begin planning and strategizing these projects from a community-wide perspective in relation to the goals and objectives established for the City, as distinct from the view of a single department and/or operation. Most often, when clear communication and cooperation exists between the public, elected officials, and the administrative organization of the municipal government, the CIP tends to become a planning tool with clear short and long term capital objectives and goals. Specific to the FY13/14 – FY17/18 Capital Improvement Program, delayed state- shared revenues due to the State of Illinois’ multiple billion dollar debt, declining income tax receipts due to recent high unemployment, reduced sales tax receipts due to a decrease in personal spending, declining property tax receipts due to a downward spiraling housing market, and reduced permit/impact fees due to stagnant residential, commercial and industrial development has had a drastic impact on the ability of the City of McHenry to not only implement new projects, but to ensure that existing municipal assets can be maintained and existing debts paid. Unfortunately, while the economy is beginning to show signs of improvement, recent successive years of decline will continue to effect the municipality and, as such, the City will not see the positive effects of a resurgent economy for years, as opposed to months. As proposed, the FY13/14 Capital Budget Year CIP includes thirty-six (36) projects at a total cost of $14,803,700. While this amount is substantially higher than the $4,188,500 amount proposed in FY12/13, it should be noted that $9,592,000 of this amount is comprised of alternative (non-city) funding sources (IDOT, STP, ITEP, MFT) for roadway projects. The remainder of the FY14/15 through FY17/18 CIP planning period includes a total of sixty-eight (68) projects totaling more than $100 million! Again, a Capital Improvement Program serves as a planning tool and NOT a budget document. Projects identified for implementation in this plan may be modified, moved up, pushed out to successive years, or deleted entirely. Additionally, and most importantly, the actual inclusion of projects in any capital budget year is dependent upon the availability of funds and the priority of the project within the community. The purpose of discussing the 5-year Capital Improvement Program at a Committee of the Whole Meeting is to allow for the overall introduction of the CIP document and provide Council with the opportunity to ask questions about specific projects or programs. As proposed, the workshop will begin with an overview of the CIP process and identification of major projects, followed by the opportunity for Council to ask questions about specific projects. Department Directors will be in attendance to further describe any included projects. It is not proposed that all sixty-eight (68) projects will be reviewed and discussed at the workshop. Should you have any question or comments about the document or the process prior to the February 4th Workshop please feel free to contact me. CITY OF MCHENRY, ILLINOIS ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 Submitted To: Susan E. Low, Mayor Geoffrey T. Blake, Alderman Geri A. Condon, Alderman Andrew Glab, Alderman Robert Peterson, Alderman Victor A. Santi, Alderman Jeffrey A. Schaefer, Alderman Richard Wimmer, Alderman Janice C. Jones, City Clerk Steven C. Murgatroyd, City Treasurer Prepared By: Derik Morefield, City Administrator Doug Martin, Deputy City Administrator Bill Hobson, Assistant City Administrator Carolyn Lynch, Finance and Accounting Manager John Jones, Chief of Police Pete Merkel, Parks and Recreation Director Jon Schmitt, Public Works Director Vickie Zinanni, Human Resources Manager Marci Geraghty, Executive Assistant January, 2013 i CITY OF MCHENRY 5-YEAR CAPITAL IMPROVEMENT PROGRAM FY2013/2014 THROUGH FY2017/2018 TABLE OF CONTENTS Schedule of Officials i Table of Contents ii Chapter 1 INTRODUCTION TO CAPITAL IMPROVEMENT PROGRAMMING Introduction 1 What Are Capital Improvements? 2 What Are the Characteristics of Capital Improvements? 2 What Is Capital Improvement Planning? 2 Why Use A Five-Year Programming Period? 3 Why Update the Program Annually? 3 What Are the Benefits of Capital Improvements Programming? 4 Organization of the Capital Improvement Program Document 5 Chapter 2 STATUS OF FY12/13 CAPITAL IMPROVEMENT PROJECTS Introduction 7 Status – FY12/13 Capital Improvement Program Expenditures by Fund & Line Item: Capital Equipment Fund 8 Capital Improvements Fund 10 Utility Improvements Fund 12 Chapter 3 SUMMARY & OVERVIEW 5-YEAR CAPITAL IMPROVEMENT PROGRAM Introduction 16 Prioritization of Projects 16 Alternate Funding Sources 18 FY13/14 – FY17/18 Capital Improvement Program Summary & Overview, All Funds 20 ii Chapter 4 GENERAL FUND CIP General Fund: 5-Year Summary Overview, Tables & Project Descriptions: Summary & Overview 25 General Administration 28 Public Facilities 33 Public Safety 43 Parks 53 Motor Pool/Equipment 64 Streets/Sidewalks/Signals 72 Stormwater/Drainage 85 Chapter 5 WATER & SEWER UTILITY FUND CIP Water & Sewer Utility und: 5-Year Summary Overview, Tables & Project Descriptions: Summary & Overview 90 Water Projects 93 Sewer Projects 105 Chapter 6 TAX INCREMENT FINANCE FUND CIP Summary & Overview 114 Tax Increment Finance Projects 117 iii CHAPTER ONE INTRODUCTION TO CAPITAL IMPROVEMENT PLANNING CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 INTRODUCTION Like most communities, the City of McHenry does not have sufficient funds to accomplish all the infrastructure and public improvement projects desired. The City is faced with the dilemma of attempting to maintain an existing, rapidly aging infrastructure while meeting the needs of the community for new facilities and infrastructure. While the City is fortunate to have a solid sales tax base that has expanded in recent years, the remaining funding vehicles available to the City are relatively fixed. In addition, there is no guarantee that the favorable trends in sales tax revenues will continue, which could add to the challenge of providing adequate funding for a capital improvements program. In an effort to meet this challenge, the City of McHenry is utilizing a Capital Improvement Program (CIP) to establish project priorities and identify the amount and source of funds available to undertake these capital projects. The City is also charged with the responsibility of ensuring that public funds are spent wisely and efficiently. A Capital Improvement Program is the process best suited to assist the Mayor and City Council in meeting the challenges of maintaining and improving the City’s infrastructure and facilities. Among the primary responsibilities of municipal officials is to preserve, maintain and improve the City’s inventory of buildings, streets, parks, and water and sewer facilities. Capital Improvement Planning is recognized as a prudent financial management tool and a necessary planning practice. Maintenance and upkeep of facilities today may prevent crises and major replacement costs tomorrow. Equally important, communities that are seeking to attract business investment to guarantee a balanced and stable economic base recognize that a carefully planned infrastructure program is critical to this effort. Coupled with the Comprehensive Plan and other planning documents, the CIP promotes new investment in locations that can accommodate development with quality systems and services. As presented, the FY2013/14 through FY2017/18 CIP attempts to balance the competing needs of maintaining existing facilities (i.e., what we have) with expanded and/or new facilities to meet present and future needs (i.e., what we need). This process also aids in distinguishing a “want” from a “need.” 1 WHAT ARE CAPITAL IMPROVEMENTS? Capital Improvements are, simply, public improvements that meet a set of pre-determined criteria. They represent projects involving the expenditure of public funds, over and above annual operating expenses, for the purchase, construction, or replacement of the long-term physical assets of a City. Examples include:  Streets/Roads/Sidewalks  Storm Sewers  Parks  Public Buildings  Water and Sanitary Sewer Systems Including Treatment Plants  Vehicles and Equipment WHAT ARE THE GENERAL CHARACTERISTICS OF CAPITAL IMPROVEMENTS? Capital projects, as defined in the City of McHenry’s Capital Improvement Program, are:  They are large in size and/or scope.  They have a substantial price tag (>$10,000).  They have a long-term usefulness and permanence (i.e., >greater than 10 years).  They involve expenditures of a non-recurring nature.  They add substantially to the value of the City’s fixed assets. WHAT IS CAPITAL IMPROVEMENT PLANNING? Simply stated, capital improvement planning is the multi-year preparation, scheduling, and updating of a list of projects and related equipment to be acquired, built or improved by the City within a fixed period. It covers the entire range of public facility and service requirements. The program lists all future projects, the amount requested for appropriation in each year, and the proposed source/method of financing. On the basis of this information, summaries of capital activities and financial requirements can be determined for each year. As both a short- and long-range plan for physical development, the CIP links the City’s Comprehensive Plan and other planning documents with the annual budget. It provides a mechanism for: 2  Estimating capital requirements;  Proposing revenue sources for existing and future projects;  Planning, scheduling and, most importantly, implementing projects;  Budgeting high priority projects;  Coordinating the activities of various departments’ project schedules; and  Monitoring and evaluating the program of capital projects. The first year of scheduled projects is referred to as the “Capital Budget Year” and includes those projects recommended for funding in the upcoming fiscal year. The CIP does not, in and of itself, appropriate funds for capital projects. Instead, these projects will subsequently be included in the FY2013/14 Budget request submitted to the City Council for consideration, based on available funding. The current capital project budget as well as the succeeding years’ schedule of projects make up the “Capital Improvement Program.” WHY USE A FIVE-YEAR PROGRAMMING PERIOD? A five-year period is considered to be most suitable for municipal capital improvement planning. Two or three years is too little time for effective programming because planning and financing of major projects usually takes longer. On the other hand, a period of more than five years dilutes the accuracy of the projections to the point of becoming less than meaningful. WHY UPDATE THE PROGRAM ANNUALLY? The Capital Improvement Program is proposed to be updated annually in order to fine tune the capital budget to reflect changing economic conditions and shifting priorities. The City must have the most accurate project costs included in the budget for the upcoming fiscal year. The program is also designed to be adjusted to reflect the need for additional projects and to respond to different priorities as established by City Council, in response to citizen input. Like McHenry itself, the CIP is not static. Instead, it can and should be reviewed and updated every year to reflect changing priorities, unexpected events, unique opportunities, cost changes, and/or alternate financing strategies. 3 WHAT ARE THE BENEFITS OF CAPITAL IMPROVEMENTS PROGRAMMING? 1. Focusing attention on community goals, needs and capabilities. The CIP process ensures that CIP projects reflect community-wide goals and do not exceed available resources. It requires that projects be looked at collectively as opposed to individually to determine their value to the community. It forces projects to compete and justify expenditures when compared to other needs and wants. 2. Achieving optimum use of taxpayer’s dollars. Advance programming can help avoid costly mistakes and duplication. It aids in making sound annual budget decisions and can result in significant savings on interest for projects financed through bonds due to a higher bond rating attributable to the existence of a formal CIP. 3. Guiding future community growth and development. The location and capacity of capital improvements help shape how, when, and where a community develops. 4. Serving wider community interests. Projects within the CIP are prioritized, in part, on the basis of greatest benefit to the greatest number of City residents as opposed to department objectives which are usually narrower. 5. Encouraging more efficient government. Coordination of capital improvements can reduce scheduling problems and conflicting or overlapping projects. An obvious example is that utilizing a CIP can prevent paving a street one year only to have it torn up the next year to install a sewer. 6. Improving intergovernmental and regional cooperation. The CIP promotes the opportunity to plan the location, timing, and financing of improvements in the interest of the community as a whole and facilitates the identification of possibilities for shared facilities. 7. Maintaining a sound and stable financial program. The CIP reduces the frequency of large, unplanned expenditures that can endanger the financial well being of the City. With ample time for planning, the most economical means of financing a project can be studied and selected in advance. A balanced CIP can help prevent making commitments and debts that may prevent the initiation of 4 more important projects in the future. Finally, it has a positive impact on the City’s credit rating and makes the community more attractive to business and industry. 8. Repairing or replacing existing facilities and equipment. As a whole, the country’s infrastructure is in serious disrepair and the CIP process helps focus attention on the need to maintain existing assets. 9. Enhancing opportunities for participation in federal and/or state grant programs. Preparing a CIP improves the chances of obtaining grant funds through documentation of the project as an officially identified community need. 10. Transparency of local government. The Capital Improvement Program process enhances transparency by providing the public with insight regarding those capital projects being considered by the public body for funding in both the upcoming fiscal year and subsequent capital improvement program planning period. ORGANIZATION OF THE CAPITAL IMPROVEMENT PROGRAM DOCUMENT This Capital Improvement Program document is subdivided into the following chapters: Chapter 2: Status of FY12/13 Capital Improvement Projects Chapter 2 includes a summary and overview of all FY12/13 Capital Improvement Program revenues and status updates for all capital improvement projects approved in the FY12/13 Annual Budget. Chapter 3: Summary & Overview of the 5-Year CIP Chapter 3 includes an introduction of the FY13/14-FY17/18 Capital Improvement Program and a summary and overview of all projects included in the 5-year plan. Chapter 4: General Fund Capital Improvement Program Chapter 4 includes a description of the policy recommendations and goals for the FY13/14 General Fund CIP, a summary and overview of the 5- year plan, and project descriptions for all projects recommended for funding in the FY13/14 Capital Budget Year as well as those projects identified within the 5-year plan. 5 Chapter 5: Water/Sewer Fund Capital Improvement Program Chapter 5 includes a description of the policy recommendations and goals for the FY13/14 Water/Sewer Fund CIP, a summary and overview of the 5-year plan, and project descriptions for all projects recommended for funding in the FY13/14 Capital Budget Year as well as those projects identified within the 5-year plan. Chapter 6: Tax Increment Finance Fund Capital Improvement Program Chapter 6 includes a description of the policy recommendations and goals for the FY13/14 Tax Increment Finance Fund CIP, a summary and overview of the 5-year plan, and project descriptions for all projects recommended for funding in the FY13/14 Capital Budget Year as well as those projects identified within the 5-year plan. 6 CHAPTER TWO STATUS OF FY12/13 CAPITAL IMPROVEMENT PROJECTS CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 INTRODUCTION The purpose of this chapter is to provide a summary of the status of projects that were approved as part of the FY12/13 Capital Equipment Fund, Capital Improvements Fund, and Utility Improvements Fund budget. For the FY13/14 – FY17/18 CIP document, these updates will be presented based on the way they were presented as part of the FY12/13 CIP and budget processes. However, in the future, these status updates will be categorized based on the organization and presentation of projects as per Chapters 3 through 6 of this document. In FY12/13, a total of twenty (20) projects totaling $4,785,500 were approved and included in the FY12/13 Budget. At the end of FY12/13 (April, 2013) it is anticipated that all or portions of all twenty (20) projects will be completed at a total cost of $6,848,166. The primary reason for the $2,063,166 excess in expenditures was due to roadway projects being moved forward faster than anticipated. However, it should be noted that a majority of funding for these projects is from non-municipal sources (MFT, STP, ITEP, IDOT) and, as such, the excess in expenditures is not necessarily being born by the City of McHenry. Expenditure Comparison FY12/13 Budget & Actual Fund Budget Projected +(-) # Projects* Capital Equipment $571,075 $529,857 ($41,218) 7 Capital Improvements $1,565,000 $4,015,473 $2,450,473 5 Utility Improvements $2,498,500 $2,167,336 ($331,164) 5 Department/Fund Specific* $151,000 $136,000 ($15,000) 3 TOTAL ALL FUNDS $4,785,500 $6,848,666 $2,063,166 20  Represents combination of Dog Park Development ($100,000), Route 120 Community Sign ($45,000), and Police Antenna in Johnsburg ($6,000) 7 STATUS FY12/13 CAPITAL IMPROVEMENT PROGRAM EXPENDITURES BY FUND & LINE ITEM Capital Equipment Fund: Project: Police – Squad Cars (3) & Patrol Command SUVs (2), Including Equipment and Accessories FY12/13 Budget: $200,775 FY12/13 Projected: $175,603 Current and Projected Status The funding authorized for FY12/13 was for the purchase of three (3) 2013 Ford Interceptor Squad Cars, two (2) Chevy Tahoe PPV Command SUVs and all equipment and accessories (i.e., light bars, cages, window guards, computers and computer mounts, etc.) to make these vehicles operational. All five (5) of these vehicles, with equipment and accessories, have been purchased. Project: Public Works - Ford 250/Hi-Ranger FY12/13 Budget: $172,000 FY12/13 Projected: $156,423 Current and Projected Status The purpose of this project was for the replacement of an existing “Hi-Ranger” aerial bucket lift truck. The purchase of this vehicle was authorized, bids received, and vehicle ordered in FY12/13. Vehicle delivery anticipated for late FY12/13 or early FY13/14. 8 Project: Streets - Dump Truck (Includes Plowing Accessories) FY12/13 Budget: $116,000 FY12/13 Projected: $115,259 Current and Projected Status This project included the replacement of an existing dump truck with snow plow and sander. The purchase of this vehicle and equipment was authorized in April of 2012 and the vehicle was delivered in September 2012. Project: Streets - Ford 250 Truck (Includes Accessories) FY12/13 Budget: $35,300 FY12/13 Projected: $35,300 Current and Projected Status The purchase of this replacement vehicle and related snowplow accessories was authorized by Council in May of 2012. The City received delivery from Buss Ford, McHenry in August 2012. Project: Community & Economic Development - Sedan (4-door) FY12/13 Budget: $17,000 FY12/13 Projected: $16,805 Current and Projected Status This project included the purchase of a Ford Focus for the Department of Community & Economic Development (formerly Construction & Neighborhood Services). This vehicle replaced a Jeep Cherokee which was subsequently transferred to the Public Works Fleet. 9 Project: Parks – Sand-Pro Infield Machine FY12/13 Budget: $20,000 FY12/13 Projected: $23,602 Current and Projected Status Previous to the purchase of this new machine the process to prepare baseball and softball fields, specifically the “edging” of the fields, was a labor intensive task. This Sand-Pro Infield Machine will be invaluable well into the future in prepping ballfields and reducing the number of hours to do so. The machine was purchased and delivered in 2012. The machine cost was slightly over the budgeted amount however, this was offset by a less than budgeted cost for the following project. Project: Parks – Workman Utility Tractor FY12/13 Budget: $10,000 FY12/13 Projected: $ 6,865 Current and Projected Status This project included the purchase of multi-purpose utility vehicle for use during general parks maintenance and special events throughout the community. The tractor was purchased and delivered during 2012. Capital Improvements Fund: Project: Local Street Program FY12/13 Budget: $635,000 FY12/13 Projected: $690,473 Current and Projected Status The FY12/13 Budgeted amount included $470,000 from the Motor Fuel Tax (MFT) fund and $165,000 from the Legend Lakes Subdivision Surety Bond. Subsequent to the start of the fiscal year an additional $100,000 of MFT funds were allocated to this project (bringing the total to $735,000) due to reduced salt purchases for the FY12/13 winter season. The project was publicly bid in May of 2012, Curran Contracting was awarded the bid in July of 2012 and the program scope was 10 completed in September of 2012. Project: Public Works Facility-Building Improvements FY12/13 Budget: $ 830,000 FY12/13 Projected: $1,200,000 Current and Projected Status The scope of this project includes the complete reroofing of the approximate 100,000 square foot Public Works Facility on Industrial Drive and the installation of a new infra-red heating system as part of the project. The City issued bonds in the amount of $850,000 in early FY12/13 for this project based on an engineering estimate however, once the design architect was selected it was learned that this project could actually cost up to as much as $1,200,000. It is anticipated that actual construction bids will come in somewhere between these amounts. The goal is to pay for any “gap” in cost through the refunding/reissuance of existing bonds. This project will be started prior to the end of FY12/13 but will not be completed until mid-FY13/14. Project: Pavement Maintenance Program FY12/13 Budget: $30,000 FY12/13 Projected: $30,000 Current and Projected Status The purpose of this project is to provide general maintenance, in the form of asphalt cracksealing, to public roadways. The project is funded entirely with MFT funds. Public bidding was conducted in May of 2012, the project was let to Behm Maintenance in June and the project was completed in August of 2012. Project: Crystal Lake Road Improvements (Phase II Engineering) FY12/13 Budget: $ 50,000 FY12/13 Projected: $1,875,000 Current and Projected Status The amount budgeted for FY12/13 was for an engineering agreement with HR 11 Green for Phase I engineering services. Based on the project schedule, it is possible actual construction for this project could begin in 2013 and, as such, construction costs have been identified in the projected amount. As a reminder, the McHenry County Council of Mayors approved up to $1,500,000 in STP funding for 80% of the Phase III and construction costs for this project. Project: Illinois Routes 120 & 31 Intersection Improvements (Phase III Engineering) FY12/13 Budget: $ 20,000 FY12/13 Projected: $220,000 Current and Projected Status This project, in the planning stages since 2004, is for the reconstruction of the Route 120 and Route 31 Intersection (Richmond Road). While $20,000 was budgeted in FY12/13, it is anticipated that this project will move forward to construction in the spring of 2013. A combination of municipal, ITEP and IDOT funding will fund this project. Utility Improvements Fund: Project: Water Treatment Plant #2 Rehabilitation FY12/13 Budget: $2,300,000 FY12/13 Projected: $1,907,710 Current and Projected Status The scope of this project included a major rehabilitation to Water Treatment Plant #2. Started in June of 2011 and bid in June 2012, Maxim Construction will have substantially completed the project prior to April 2013 with an anticipated final completion date of June 2013. 12 Project: Willow Lift Station Emergency Power Generator FY12/13 Budget: $50,000 FY12/13 Projected: $51,430 Current and Projected Status The scope of this project included the replacement of the emergency power generator at the Willow Avenue Lift Station. The project will be substantially complete by February 8, 2013 with a final completion date of April 26, 2013. Project: Central Wastewater Treatment Plant (CWWTP) Clarifier Rehabilitation FY12/13 Budget: $110,000 FY12/13 Projected: $349,936 Current and Projected Status In April 2012 the City Council authorized the public bidding for this project and bids were received in June 2012. Final costs were substantially higher than the budgeted amount due to findings made during the inspection process. An amendment to the Utility Fund expenditures was approved by Council for these costs. Project: Southside Wastewater Treatment Plant (SWWTP) Return Activated Sludge Upgrades FY12/13 Budget: $138,500 FY12/13 Projected: $138,500 Current and Projected Status This project included the upgrading of the return activated sludge pumps of the SWWTP. The project was approved in July 2012 with a final completion date of June 2013. 13 Project: Golfview Drive Sanitary Sewer Relining FY12/13 Budget: $50,000 FY12/13 Projected: $34,703 Current and Projected Status This project, the relining of 822 feet of sanitary sewer main, was approved by Council and completed by Insituform Technologies in 2012. Department/Fund Specific Projects: Project: Parks – Dog Park Development FY12/13 Budget: $100,000 FY12/13 Projected: $ 85,000 Current and Projected Status This project is for the improvement of property just north of the Kohl’s Department Store for a dog park. The site has been developed with only a few remaining items – water fountain installation, access gate pass management controls, park identification and rules/signage, site restoration and over seeding remaining. The park is anticipated to open the spring/summer of 2013. Project: Parks – Community Sign FY12/13 Budget: $45,000 FY12/13 Projected: $45,000 Current and Projected Status The scope of this project includes the replacement of existing community sign located in Whispering Oaks Park with a new, digital sign similar to the one used by the McHenry Public Library. The City Administration has been working to have the sign designed and to solicit interest from local service organizations to help offset the costs in exchange for advertising. The goal is to have the sign constructed and installed prior to the end of FY12/13. 14 Project: Police – Johnsburg Radio Antenna Upgrade FY12/13 Budget: $6,000 FY12/13 Projected: $6,000 Current and Projected Status The purpose of this project was to upgrade the existing antenna, used for police and emergency services, located in Johnsburg. The project has been completed. 15 CHAPTER THREE SUMMARY & OVERVIEW 5-YEAR CAPITAL IMPROVEMENT PROGRAM CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 CITY OF MCHENRY CAPITAL BUDGET YEAR FY13/14 & 5-YEAR CAPITAL IMPROVEMENT PROGRAM FY13/14 THROUGH FY17/18 SUMMARY & OVERVIEW INTRODUCTION The dynamics of the City are no more evident than in the variety of projects contained in the Capital Improvement Program. This chapter is intended to provide a “big picture” summary and overview of the major projects comprising the 5-Year CIP. This will be accomplished by providing a comparison of the FY12/13 5-Year CIP and the Proposed FY13/14 CIP and, further, a discussion regarding the goals of the City and the interdependence and relationship between various projects competing for funding that have been identified in the 5-Year CIP. This summary/overview will highlight the importance of a balanced Capital Improvement Program and the need to ensure that the needs of the community are identified, considered and addressed to the extent possible with funds available. Throughout this discussion, tables and/or charts will be utilized to assist in identifying FY13/14 – FY17/18 proposed project expenditures and for comparison purposes with previous CIP projects. Subsequent chapters of this document are arranged by fund and contain a narrative overview of each fund, tables and charts, which identify and compare proposed expenditures throughout the 5-year planning period, detailed descriptions arranged by priority, for each project proposed in the 5-year planning period, and proposed funding sources for project implementation. Prior to delving into the 5-Year CIP overview it is important to present a summary of how the projects are prioritized and a word about alternate funding sources , which are referenced throughout the project descriptions. PRIORITIZATION OF PROJECTS All projects submitted for inclusion in the 5-Year CIP are reviewed by the City Administrator, Deputy City Administrator, Assistant City Administrator, Finance & Accounting Manager and respective Department Directors and prioritized according to their perceived economic and operational necessity in relation to the anticipated community-wide benefits to be gained. Priorities are established using the following classification system: 16 Priority A – URGENT Projects which cannot reasonably be postponed. These may be to complete an essential or partially-finished project, or to maintain a minimum level of service in a presently established City program. Also, any project needed to address an emergency situation. Priority B – NECESSARY Projects which should be implemented within a few years to respond to anticipated needs of current City services, or replacement of unsafe or unsatisfactory facility (ies). Priority C – DESIRABLE Projects needed for the proper expansion of a City service or facility, the exact timing of which can be deferred until adequate funding sources can be secured. Priority D – DEFERRABLE Projects which would be needed for ideal operation, but which cannot yet be recommended for action. These can be postponed without detriment to present services. Projects that are ranked within the same classification can be distinguished further based on public health and safety considerations, breadth of service area, and/or the availability of matching funds from other sources. When determining the appropriate project funding levels throughout the 5-year program period, one or more of the following options will be exercised:  Recommend funding the project in the year and the amount requested by the Department Director  Recommend partial funding of the project in the year requested  Recommend delaying funding of the project to another fiscal year  Recommend setting aside a portion of the requested money each year to save enough to fund the project in a future year  Recommend that the project not be funded at all Again, the Capital Improvement Program is a planning tool, not a budgeting tool, and as such even projects that receive an “A” priority may not be able to be funded in any given budget year. However, prioritization of projects serves as 17 a guide in preparing the annual City budget and can assist the City Council in arriving at project funding decisions given limited resources. ALTERNATE FUNDING SOURCES Based on the fact that funding for many of the projects presented in the Capital Budget Year and 5-Year CIP are dependent upon funding sources other than those which are derived from property tax, sales tax, income tax, or user fees, the City must continue to evaluate and utilize one or a combination of the funding alternatives such as telecommunications taxes, permit fees, and franchise fees, as well as others described below, in financing the myriad of CIP projects contained in the 5-Year CIP: General Obligation Bonds: As a home-rule community, the City Council has the authority to issue bonds to fund large, community-wide projects. The taxing power of the City is automatically pledged to pay the principal and interest to retire the outstanding debt, but the City has always abated these taxes and paid the balances with general fund revenues. As such, it is important to be conservative with issuing G.O. Bonds because revenues must be available to cover the principal and interest payments each year. In the past, G.O. Bonds have been used for street programs, drainage improvements, property acquisition and maintenance, and utility improvements. Special Service Area: Special Service areas are created to provide additional government services above the normal services to a specific area. The cost of the special services is paid through revenues collected from taxes levied or imposed upon property within that area. Examples of projects typically funded through this source are water, sewer, and road projects. State and Federal Grants: The City has actively looked for grants to fund utility development, road improvements, and parks and recreation projects. Currently, road projects are the largest portion of the grant funding the City receives. These grant funds are contingent upon the City providing a match, so grants are selected carefully with the knowledge that funds have to be available to cover the match. Annexation Fees: The City Council created a policy whereby land annexed to the City would be assessed a fee per acre to offset costs for infrastructure and impact of the project on the City. These fees are typically used for road projects. Developer Donations: As a condition of approval of a final plat of subdivision, planned unit development, or building permit, each subdivider shall dedicate 18 land and/or make cash donations in lieu of land for park sites to serve the immediate and future needs of the residents of the development. These fees are collected and used for park improvements. Developer Contributions: Fees built into the annexation agreement for specific projects. Developer contributions are generally used for new roads and neighborhood parks. 19 FY13/14 – FY17/18 CAPITAL IMPROVEMENT PROGRAM SUMMARY & OVERVIEW ALL FUNDS FY13/14 Proposed 5-Year CIP Ranked by Total Expenditures FY13/14 Rank Activity/Fund # Projects $ Proposed FY13/14 % of Total 1 Streets/Sidewalks/Signals 9 $46,452,200 46.2% 2 Sewer 9 $15,726,300 15.6% 3 Tax Increment Finance 5 $13,878,000 13.8% 4 Water 13 $10,682,000 10.6% 5 Public Facilities 5 $6,470,000 6.4% 6 Motor Pool 6 $2,386,500 2.4% 7 Parks 10 $2,003,000 2.0% 8 Public Safety 3 $1,490,900 1.5% 9 Stormwater/Drainage 4 $1.365,000 1.4% 10 General Admin/IT 4 $163,000 .1% TOTALS 68 $100,616,900 100% The 5-Year Capital Improvement Program, as presented, continues to reflect the guiding principles that it be balanced and meet the needs of a full-service city. In establishing this balance, it is important to identify that this plan includes the funding of projects which are related both to the maintenance and replacement of existing assets – from vehicles and equipment to playground amenities – as well as the evaluation and introduction of new projects, services and facilities to be able to respond to the increasing needs of a growing and diverse population. This balance is not only desirable but, more importantly, necessary if McHenry is to retain and expand upon the high quality of life which its residents enjoy. Ultimately, the benefit of the 5-Year CIP is not measured in the number of projects or dollars expended in any single year, but rather is measured cumulatively in achieving the long-range goals of the community. As proposed, the schedule of projects identified in the 5-Year CIP far exceeds the City’s existing financial resources however this is not unexpected, unusual or uncommon. Conversely, this is one of the benefits of having a capital improvement program. It allows for the annual evaluation, prioritization, and scheduling of projects via a uniform, consistent, and objective process. In addition to recommending projects for funding in the Capital Budget Year, the CIP also identifies and outlines those projects that are recommended to be undertaken in the succeeding five years and, hence, compels the City to begin 20 planning and strategizing these projects from a community-wide perspective in relation to the goals and objectives established for the City, as distinct from the view of a single department and/or operation. Most often, when clear communication and cooperation exists between the public, elected officials, and the administrative organization of the municipal government, the CIP tends to become a planning tool with clear short and long term capital objectives and goals. Specific to the FY13/14 – FY17/18 Capital Improvement Program, delayed state- shared revenues due to the State of Illinois’ multiple billion dollar debt, declining income tax receipts due to recent high unemployment, reduced sales tax receipts due to a decrease in personal spending, declining property tax receipts due to a downward spiraling housing market, and reduced permit/impact fees due to stagnant residential, commercial and industrial development has had a drastic impact on the ability of the City of McHenry to not only implement new projects, but to ensure that existing municipal assets can be maintained and existing debts paid. Unfortunately, while the economy is beginning to show signs of improvement, recent successive years of decline will continue to effect the municipality and, as such, the City will not see the positive effects of a resurgent economy for years, as opposed to months. One example of need compared to funding availability is in the area of Streets/Sidewalks/Signals. The Department of Public Works has developed a comprehensive street improvement program for the resurfacing and/or improvement of existing public roadways. As identified and described in this document, the 5-year Street Program is more than $46 million! Furthermore, due to other demands within the 5-Year CIP, no funding is currently identified to address this important need. Moving forward, as the City fulfills its commitment to roadway projects with shared funding resources (Route 120/31 Intersection Improvements, Crystal Lake Road Improvements, MCullom Lake Road Improvements, Bull Valley Road Improvements) and General Fund Revenues increase due to an improved economy, the City must look to dedicate funds annually to high priority public infrastructure improvement projects (streets, sidewalks, water and sewer utilities). The discussion that follows provides a snapshot/overview of the focus of all Capital Improvement Program funds (detailed project narratives begin in Chapter 4) and further details the need to defer the introduction of new, large projects; ensure that funding is available to meet existing debt service commitments; and, continue to focus on the maintenance and/or redevelopment of existing assets. 21 General Administration The FY13/14-FY17/18 General Administration CIP, as proposed, includes four (4) projects totaling $163,000 over the 5-year planning period. These projects range from the implementation of technical software and hardware to ensure primary and secondary communication between municipal facilities (DPW Telephone Switch/Phase 2 Microwave Link and Net Motion Software), to the implementation of a new Finance/Utility/Permitting Software Package. Public Facilities In the Public Facilities CIP there are five (5) projects recommended within the 5- year planning period totaling $6,470,000. In addition to significant municipal facility maintenance and improvement projects (DPW Building Improvements to the roof and HVAC system and Municipal Center Building Improvements), a significant public facility project will be the development of a new Aquatic Facility/Recreation Facility, or some combination thereof. Identified in this document is the development of a combination aquatic facility with added multi-purpose space to take advantage of shared locker room space and in light of the fact that the cost for developing new, separate facilities appears to be beyond the City’s financial capabilities. Public Safety Public Safety CIP projects proposed for FY13/14-FY1718 include the Vehicle Replacement Program; the related purchase of Vehicle Equipment; and the purchase/replacement of Emergency Radio Equipment. Parks The FY13/14-FY17/18 Parks CIP proposes ten (10) projects totaling $2,003,000. In addition to important maintenance-related items such as Parking Lot Improvements and Sport Court Renovations, higher profile projects include a much needed Ft. McHenry Renovation and proposed improvements to the municipal assets at Petersen Farm and Hickory Creek Farm. It should be noted here that the City should at least consider the adoption/implementation of a Northern Illinois Special Recreation Association (NISRA) tax levy in FY13/14 to help offset the cost of related municipal projects (such as the ADA Park Improvements). This levy could realize as much as $200,000, thus freeing up money in the City’s General Fund for other improvement projects. Motor Pool The Motor Pool CIP proposes six (6) projects totaling $2,386,500 within the 5-year planning period. These projects primarily include the replacement of vehicles 22 and equipment within Streets, Parks, Downtown Maintenance, and Community & Economic Development based on consistently reviewed and updated vehicle replacement programs. As standard policy, the Administration will continue to push vehicles and equipment to their full useful lives without incurring unreasonable maintenance costs. Streets/Sidewalks/Signals As is reflected in the specific section and project narratives, the Streets/Sidewalks/Signals CIP represents the largest area of proposed expenditures ($46,452,200 or 46.2%) of the entire Capital Improvement Program. Maintenance and replacement of public roadways presents an even greater challenge to municipalities than water and sewer utilities due to the fact that no adequate mechanism for funding roadway improvements exist. While water and sewer improvements can be planned based on water and sewer rate adjustments/revenues, the only current mechanism for funding local street improvements is via Motor Fuel Tax (MFT) revenues. Unfortunately, population- based MFT funding at approximately $700,000 per year does not come close to meeting the multi-million dollar needs of a local Street Program and, further, nearly all of the existing MFT funding received by the City is committed to multi- jurisdictional roadway projects at this time. In regards to the 5-year planning period of this CIP, while the Street Program is identified as an “A” priority, and funding amounts are identified, there are currently no funds being committed to this program. The City must attempt, in future years, to identify and set aside funding for street improvements in order to ensure that the City’s local roads are maintained. Stormwater/Drainage The Stormwater/Drainage CIP includes four (4) projects within the 5-year planning period of the CIP. These are related to regional, or broader, improvements to the public stormwater/drainage system which benefit multiple residences and neighborhoods. Water & Sewer The Water & Sewer CIP (subdivided for more specific detail in this document) includes a combined twenty-two (22) projects totaling $15,726,300. Not unlike the importance of ensuring that the public roadways are appropriately maintained, the projects included within the Water & Sewer CIP focus on ensuring that the City’s water and sewer infrastructure is maintained and, furthermore, that there is sufficient capacity of the system for serving new residents and businesses well into the future. 23 Tax Increment Finance Due primarily to a decrease in the assessed value of property within the Tax Increment Finance (TIF) District and, thus, decreased TIF revenues, the primary focus of the TIF within the first couple of years of this 5-year planning period is to limit proposed expenditures and ensure that existing debt service obligations related to existing improvements are able to be made. Riverwalk Improvements identified for FY13/14 include enhancements to the Miller Point property. Again, more detailed project information, along with proposed expenditures, can be found in the accompanying chapters. 24 CHAPTER FOUR GENERAL FUND CAPITAL IMPROVEMENT PROGRAM CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 GENERAL ADMINISTRATION: 5-Year Summary Overview Most often, the General Administration category of the General Fund CIP includes the fewest number of projects and generally ranks at or near the bottom of the list in terms of proposed CIP expenditures. In addition, General Administration projects usually reflect proposed improvements to internal municipal operations that are not as easily recognizable or perceived as beneficial to the general public. However, this could not be further from the truth. In fact, as you will see, projects proposed in the FY13/14 Capital Budget Year and throughout the 5-year period of the CIP not only include technological improvements which directly enhance and expand customer services by strengthening the internal processing and administrative functions of the City which, in turn, results in improved efficiency, productivity and service to the residents and businesses of McHenry without the need for significant increases in municipal staffing, but also the latest in technology which will increase communication between residents and various departments of the municipality. In summary, the FY13/14-FY17/18 General Administration CIP, as proposed, includes four (4) projects totaling $163,000 over the 5-year planning period. The FY13/14 Capital Budget Year includes two (2) projects totaling $50,000. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP planning period. This is followed by graphic tables identifying proposed funding levels as well as funding sources in addition to revenues derived solely through the General Fund. Finally, more detailed project narratives are provided which identify the specific goals and outcomes of each proposed project. FY13/14 Capital Budget Year Highlights In FY12/13 the City funded a project to connect the Municipal Center and the Public Works Facility via a “Microwave Link.” The intent of this link was to provide for the elimination of the Centrex telephone system at the Public Works Facility and to connect the telephone system at the Municipal Center with the Public Works Facility. The first phase of this project has been completed and is functioning properly. The FY14/15 proposed Phase 2 Microwave Link, along with the DPW Telephone Switch, will provide a redundant and diverse path for data and telephone transmissions between the Municipal Center and the Public Works Facility. 25 The Net Motion project includes software to provide a more substantial link between police in-car computers and the Police Department’s computer system. FY14/15 – FY17/18 CIP Planning Summary Projects recommended within the 5-year CIP planning period include the installation of a Disaster Plan Storage Device and the development and implementation of a consolidated Finance/Utility Billing/Permitting Software Package. The Disaster Plan Storage Device will allow the City to backup and store network data from the Municipal Center at a remote location (Public Works Facility) in the event of a system failure at the Municipal Center. The Finance/Utility Billing/Permitting Software Package represents a much needed upgrade to the City’s existing software packages, which are in some cases beyond update capability. Plans include the selection of a single vendor for all components of the package. It is important to note that this project is proposed to be funded by a combination of General Fund and Water and Sewer Fund revenues. 26 GENERAL ADMINISTRATION: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 27 GENERAL ADMINISTRATION: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 DPW Telephone Switch/Phase 2 Microwave Link A $30,000 $0 $0 $0 $0 $30,000 2 Net Motion Software B $20,000 $0 $0 $0 $0 $20,000 3 Disaster Plan Storage Device $0 $13,000 $0 $0 $0 $13,000 4 Finance/Utility Billing/Permitting Software $0 $100,000 $0 $0 $0 $100,000 Totals $50,000 $113,000 $0 $0 $0 $163,000 # of Projects 2 2 0 0 0 4 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $50,000 $63,000 $0 $0 $0 $113,000 2 Water/Sewer Fund $0 $50,000 $0 $0 $0 $50,000 Totals $50,000 $113,000 $0 $0 $0 $163,000 28 GENERAL ADMINISTRATION: Project Narratives Project: DPW Telephone Switch/Phase 2 Microwave Link Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $30,000 $0 $0 $0 $0 $30,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $30,000 $0 $0 $0 $0 $30,000 Project Purpose, Description and Benefit The purpose of this project is to provide the ability for the Department of Public Works Facility and Municipal Center to have a seamless telephone connection (e.g., transfer calls between facilities as distinct from having to provide numbers to callers). In order to complete this connection a telephone switch needs to be installed and configured at the Public Works Facility. The proposed component will be purchased and installed by the City’s current telephone system provider. In conjunction with the telephone switch, the City has worked to provide a “microwave link” to provide a redundant and diverse path for data and telephone transmissions between the Public Works Facility and Municipal Center. Phase 1 of this link was completed in FY12/13 with Phase 2 being proposed for implementation in FY13/14. The telephone switch proposed amount is $14,500 and the Phase 2 microwave link is $15,500. 29 Project: Net Motion Software Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $20,000 $0 $0 $0 $0 $20,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $20,000 $0 $0 $0 $0 $20,000 Project Purpose, Description and Benefit By September 30, 2013, the Federal Bureau of Investigation (FBI) Criminal Justice Information Services (CJIS) Division will require local law enforcement agencies who utilize wireless access to CJIS systems to use Advance Authentication (AA) technologies. There are several methods by which this requirement can be met. After some discussion with the Police Department, staff has identified the use of a product called Net Motion. Net Motion uses most of the technologies already in place on the in -house Local Area Network (LAN). The product creates a persistent wireless VPN connection to this system, the use of which allows users to accomplish the required dual - authentication or AA. In addition, this connection allows IT staff to service mobile units much the same way that in-house computers are serviced and allows the placement of email and other applications in the patrol vehicles, thus providing the officer with more timely response capabilities. The project consists of the purchase of Net Motion software, one physical server, technical consulting for system setup, and three-years of system support. 30 GENERAL ADMINISTRATION: Future Years Project Narratives Project: Disaster Plan Storage Device Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $13,000 $0 $0 $0 $13,000 Project Purpose, Description and Benefit One of the purposes of adding a microwave connection between the Municipal Center and the Public Works Facility was to provide for a remote disaster recovery site. In order to store the City’s data at the remote site (Public Works Facility), a data storage device needs to be installed at that location. The proposed project calls for the reconfiguration of an existing Domain Controller to make it a Virtual Server. The physical server device would then be installed at the remote site. IT staff would then connect the storage device to this server and set it up for disaster recovery. Project: Finance/Utility/Permitting Software Package Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $100,000 $0 $0 $0 $100,000 Project Purpose, Description and Benefit The existing software package used for the management of the City’s finances and utility billing was installed in 1999 and, unfortunately, it has become quite difficult to get service when needed because only a few people from the software company (Tyler) have the knowledge necessary to work with the current version. In order to ensure that financial information and water and sewer account management remains an efficient municipal process, it is recommended that the software be updated and/or replaced. The software would include the following modules: financial, utility billing, payroll and cash receipting with the potential for including fixed assets, inventory, time sheet entry, electronic time clock, and court case (adjudication) management. In addition to these modules, many software companies offer “full service” municipal packages which include building inspection, permitting, and project management modules. 31 As envisioned, City staff representing Finance, Community & Economic Development and Public Works will coordinate to select a single source vendor for a new/expanded system for installation in FY14/15. It should be noted that since this project includes a substantial component related to water and sewer billing and account management that at least 50% of the total cost of the software package could come from the water and sewer fund, with the remaining to be paid from the general fund. The entirety of this project is extremely important to be able to continue to provide a high level of customer service and maintain the integrity of the financial management system. 32 PUBLIC FACILITIES: 5-Year Summary Overview The development of appropriately sized and maintained public facilities is important to a community in many ways. First, this ensures the needs of the existing residents are addressed now and for the foreseeable future. Second, because a solid public facility program results in a higher quality of life for residents, often interpreted by businesses as “desirable” when choosing where to locate or expand. In other words, modernized public facilities can be an effective economic development tool for retaining and attracting businesses. In summary, the FY13/14 - FY17/18 Public Facilities Capital Improvement Program, as proposed, includes a total of five (5) projects totaling $6,470,000 over the 5-year planning period. The FY13/14 Public Facilities Capital Budget Year includes three (3) proposed projects totaling $1,300,000. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP planning period. This is followed by graphic tables identifying proposed funding levels as well as funding sources in addition to revenues derived solely through the General Fund. Finally, more detailed project narratives are provided which identify the specific goals and outcomes of each proposed project. FY13/14 Capital Budget Year Highlights The most significant project identified in the FY13/14 Public Facilities Capital Budget Year is the Department of Public Works Facility Improvements to the Roof and HVAC system. This project, funded solely through the issuance of General Obligation Bonds, was started in FY12/13 but identified in FY13/14 since the majority of work and payments will be made during the FY13/14 fiscal year. The replacement of the roof and installation of an infra-red heating system will help ensure that this outstanding public works facility remains a valuable asset to the community for many years to come. The Municipal Center is now more than twenty (20) years old and a combination of technological advancements, operational reorganization, and decreased staffing levels due to economic conditions has resulted in the need to assess how best the existing space within the facility can be used to ensure the highest level of efficiency and customer service. In FY13/14 it is proposed that a firm be retained to conduct a feasibility analysis to assist us in planning for physical improvements to the facility for future Municipal Center Building Improvements. Finally, the Department of Public Works has physically relocated a generator from Water Plant #2 to the Public Works Facility on Industrial Drive. In order for this to serve as a backup in the case of power outages, substantial electrical 33 work needs to be completed. This has been identified as DPW Improvements for FY13/14. FY14/15 – FY17/18 CIP Planning Summary Projects recommended within the 5-year CIP planning period include additional DPW Improvements in the form of the construction of a new salt storage facility, the planning and development of an Aquatic Center and/or Recreation Facility and the planning and implementation of Municipal Center Building Maintenance projects. The future DPW Improvements include the need for development of a 500 ton, covered salt storage building on the existing grounds of the Public Works Facility. During times of substantial development the City of McHenry had the foresight to set aside certain developer donations for the development of a municipal recreation facility. Unfortunately, the cost for the development of an appropriately sized new recreation facility far exceeds the funds that have been set aside. Further, a review of existing facilities for retrofitting as recreation facilities has not identified any possibilities. In addition, the City currently operates an aquatic facility that is not only more than 30 years old, but drastically undersized for a community the size of McHenry. While the Parks and Recreation Committee continue to discuss this project, it may be that a combination of a new Aquatic Center/Recreation Facility be developed. This may include an appropriately sized zero-depth pool with slides and water amenities, kiddy pool, concessions area and a dual purpose poolhouse/locker room that serves as a multi-purpose space with classrooms for recreation center programs. This would not be a full-service recreation center but, rather, space for specific classes with the ability to be divided for smaller uses. This would allow the locker rooms to serve a dual purpose and the facility to be open/operated year round. The first step in this process would be to identify and retain a consultant to assist in designing the facility and, related, how it may fit into existing or redeveloped space at Knox Park. 34 PUBLIC FACILITIES: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 35 PUBLIC FACILITIES: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 DPW Building Improvements A $1,200,000 $0 $0 $0 $0 $1,200,000 2 Municipal Center Building Improvements B $25,000 $200,000 $200,000 $200,000 $200,000 $825,000 3 DPW Improvements C $75,000 $0 $0 $100,000 $0 $75,000 4 Aquatic Center/ Recreation Facility $0 $50,000 $2,000,000 $2,000,000 $0 $4,050,000 5 Municipal Center Building Maintenance $0 $35,000 $60,000 $50,000 $75,000 $220,000 Totals $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 # of Projects 3 3 3 3 2 5 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $100,000 $235,000 $260,000 $350,000 $275,000 $1,220,000 2 General Obligation Bonds $1,200,000 $0 $0 $0 $0 $1,200,000 3 Developer Donations $0 $50,000 $2,000,000 $2,000,000 $0 $4,050,000 Totals $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 36 PUBLIC FACILITIES: Project Narratives Project: DPW Building Improvements Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $1,200,000 $0 $0 $0 $0 $1,200,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Obligation Bonds $1,200,000 $0 $0 $0 $0 $1,200,000 Project Purpose, Description and Benefit In 2012 City Council approved the issuance of an $8 50,000 General Obligation Bond for the design and implementation/construction of a new approximate 100,000 square foot roof and installation of an infra-red heating system for the Department of Public Works Facility. It is anticipated that the bids for this project will come in closer to $1,200,000. In order to pay for the additional costs, the City has the opportunity to refinance an existing bond obligation and will add the addition approximate $350,000 without a significant increase to the principal and interest payment amount, due to the refinancing. The General Obligation Bond payments for this project will come from General Fund Revenues. 37 Project: Municipal Center Building Improvements Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $25,000 $200,000 $200,000 $200,000 $200,000 $825,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $25,000 $200,000 $200,000 $200,000 $200,000 $825,000 Project Purpose, Description and Benefit The Municipal Center is over 20 years old and as originally designed created a good deal of compartmentalization throughout the building and the departments. In 2013/14, a firm would be hired to perform a space analysis of the municipal center as a whole. Goals subsequent to that would be to address the proximity of an initial contact point closer to the main entrance doors and how a shift would affect conference rooms and the space as a whole. Another major point to be addressed would be the space constraints of the Police Department. The constraints are virtually across the board but beginning with an expanding dispatch center. A cramped sergeants’ room, squad room, detectives area are all in need of expansion. In addition the evidence locker needs to be examined and redesigned to conform to current CALEA standards. The overall space study would also look to identify consolidation of departments or offices to offer the best possible customer service in all of our departments and meet the needs of each of our departments. 38 Project: DPW Improvements Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $75,000 $0 $0 $100,000 $0 $1755,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $75,000 $0 $0 $100,000 $0 $175,000 Project Purpose, Description and Benefit The purpose of this project category is to identify DPW facility -related projects other than the 2013 reroofing/infrared heating project. FY 2013/2014 Standby Generator: Currently the Public Works Facility has very limited emergency standby electrical power capabilities in the event of a power failure. Only two overhead doors on the east side of the facility are operable during an electrical power outage. The need for a standby generator for the entire building was emphasized in June 2011 when a very powerful wind storm left the Public Works Facility without electrical power for several days. As part of the recent rehabilitation of Water Treatment Plant #2 a larger standby generator was installed replacing the existing generator at that location. Staff purposes to utilize the generator removed from Plant #2 at the Public Works Facility. This generator relocation will require combining the two existing electrical services at the facility into one, the installation of an electrical transfer switch and miscellaneous conduit and wire installation. FY 2017/18 Covered Salt Storage Bin: Currently the Public Works Department has a 500 ton salt storage facility located at the South Wastewater Treatment Plant. During the snow season salt is also stored inside the Public Works Facility; this is not a long term solution due to the potential damage the salt moisture might cause to the interior of the building. Staff recommends constructing a second salt storage facility at the Public Works Facility location where salt will be stored in a separate building year round. 39 PUBLIC FACILITIES: Future Years Project Narratives Project: Aquatic Center/Recreation Facility Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $50,000 $2,000,000 $2,000,000 $0 $4,500,000 Project Purpose, Description and Benefit During times of substantial development, the City of McHenry had the foresight to set aside certain developer donations for the development of a municipal recreation facility. Unfortunately, the cost for the development of an appropriately sized new recreation facility far exceeds the funds tha t have been set aside. Further, a review of existing facilities for retrofitting as recreation facilities has not identified any possibilities. In addition, the City currently operates an aquatic facility that is not only more than 30 years old, but drastically undersized for a community the size of McHenry. While the Parks and Recreation Committee continue to discuss this project, it may be that a combination of a new Aquatic Center/Recreation Facility be developed. This may include an appropriately sized zero-depth pool with slides and water amenities, kiddie pool, concessions area and a dual purpose poolhouse/locker room that serves as a multi-purpose space with classrooms for recreation center programs. This would not be a full -service recreation center but, rather, space for specific classes with the ability to be divided for smaller uses. This would allow the locker rooms to serve a dual purpose and the facility to be open/operated year round. The first step in this process (FY14/15, $50,000) would be to identify and retain a consultant to assist in designing the facility and, related, how it may fit into existing or redeveloped space at Knox Park. The funds proposed for FY15/16 and FY16/17 are for the actual construction of the facility. 40 Project: Municipal Center Building Maintenance Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $35,000 $60,000 $50,000 $75,000 $220,000 Project Purpose, Description and Benefit The Municipal Center is over 20 years old and has begun to show its wear in certain areas. Over the past 5 years we have seen building repair costs rise. Major building repairs need to be planned for and identified. In FY14/15, $35,000 would be set aside to replace the entry doors with an automated system. While the current doors meet all ADA standards they are not the most customer service friendly. In addition we would look to replace the rope caulking around all the windows in the facility. In FY15/16, $60,000 would be allotted to address the aging boilers, both of which have been re-tubed once, with modern high efficiency systems. The $50,000 in FY16/17 would be purely for re-roof purposes and finally $75,000 would be required to continue the re-roofing and replacement of the discolored and aging metal flashing around the building in FY17/18. 41 PUBLIC SAFETY: 5-Year Summary Overview All projects included in Public Safety are primarily for the maintenance and/or replacement of equipment for the McHenry Police Department. These upgrades and replacements are necessary to ensure that public safety programs continue to meet the high customer service expectations of the community. In summary, the FY13/14-FY17/18 Public Safety Capital Improvement Program, as proposed, includes three (3) projects totaling $1,490,900 over the 5-year planning period. The FY13/14 Public Safety Capital Budget Year includes two (2) proposed projects totaling $201,200. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP Planning period. FY13/14 Capital Budget Year Highlights The continued implementation of a police Vehicle Replacement Program is important to ensure that the proper level of dependable police vehicles is maintained. The Vehicle Equipment item relates to the light bars and other related equipment required for each new vehicle. FY14/15 – FY17/18 CIP Planning Summary Within the 5-year CIP planning period funding is proposed for upgrading the McHenry Police Department’s Emergency Radio Equipment. The need to upgrade from the current VHF/UHF to an all digital based service is the result of new narrowbanding requirements mandated by the FCC. 42 PUBLIC SAFETY: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 43 PUBLIC SAFETY: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Vehicle Replacement Program A $145,300 $149,600 $154,100 $158,800 $136,300 $744,100 2 Vehicle Equipment A $55,800 $57,500 $77,100 $70,200 $68,200 $328,800 3 Emergency Radio Equipment $0 $0 $178,000 $120,000 $120,000 $418,000 Totals $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 # of Projects 2 2 3 3 3 3 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Totals $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 44 PUBLIC SAFETY: Project Narratives Project: Vehicle Replacement Program Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Obligation Bonds $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Project Purpose, Description and Benefit The purpose of this program is to assure the McHenry Police Department maintains the proper level of dependable police vehicles needed to service the community in all law enforcement efforts. This project will outline the vehicle replacement plan proposed over the course of the next five fiscal budgets. The McHenry Police Department currently maintains a vehicle fleet that includes the following vehicles as part of the vehicle replacement program: 1. 17 Marked Police Patrol Squad Cars 2. 3 Marked Specialty Cars (CSO Vehicles and Evidence Van) 3. 9 Unmarked Squad Cars Between 2007 and 2011 the police department reduced its vehicle fleet by four vehicles. The current fleet identified above is predicted to be of sufficient size for the next five fiscal years. It is the goal of the replacement program to continue to replace marked patrol squads once they have exceeded 80,000 miles, unmarked squads between 100,000 and 120,000 miles (depending on condition) and marked specialty cars as needed (based on condition). An evaluation of our current fleet has been conducted and the following replacements over the course of the next five fiscal years are requested. FY13/14: 4 marked police patrol vehicles and 2 unmarked police vehicles FY14/15: 4 marked police patrol vehicles and 2 unmarked police vehicles FY15/16: 5 marked police patrol vehicles and 1 marked specialty vehicle FY16/17: 5 marked police patrol vehicles and 1 unmarked police vehicle FY17/18: 4 marked police patrol vehicles and 1 marked specialty vehicle 45 This rotating replacement program allows for the entire fleet to be rotated out every five years by replacing 20% of the fleet each year. Below is the breakdown of estimated individual vehicle costs for marked patrol squads and unmarked vehicles. A 3% increase was added for each year due to the increased cost of vehicles and the equipment placed in them. Description Pricing Average Pricing of Police Vehicles (Ford Interceptor Sedan, SUV or Specialty Vehicle) 23,502.00 Total (2012/2013 fiscal year pricing) 23,502.00 Total 3% rate increase (2013/2014 fiscal year pricing) 24,207.00 Total 3% rate increase (2014/2015 fiscal year pricing) 24,933.00 Total 3% rate increase (2015/2016 fiscal year pricing) 25,681.00 Total 3% rate increase (2016/2017 fiscal year pricing) 26,451.00 Total 3% rate increase (2017/2018 fiscal year pricing) 27,244.00 The above projected replacements would be needed to maintain the current level of police services to the community. Police vehicles are the key piece of equipment used by all officers to perform their job tasks and are a necessity to perform both routine jobs and those of an emergency nature. A review of vehicle maintenance records has shown that marked police vehicles (driven 24 hours a day by numerous people) begin to experience an increase in minor and major mechanical problems after they have exceed ed 80,000 miles. The cost to repair and maintain a marked police patrol over 80,000 miles will exceed the benefit of keeping it in service. Unmarked police vehicles are often driven by only one officer and subsequently last longer and are maintained in better condition. Based on maintenance records, unmarked police vehicles will exceed 100,000 miles before experiencing an increase in both minor and major mechanical issues. Marked specialty vehicles (CSO vehicles & Evidence Vehicle) are vehicles that are driven typically by only one person and only on a limited basis. Marked specialty vehicles will traditionally last longer than all other vehicles and are replaced on an as needed basis only. 46 Project: Vehicle Equipment Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $55,800 $57,500 $77,100 $70,200 $68,200 $328,800 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Obligation Bonds $55,800 $57,500 $77,100 $70,200 $68,200 $328,800 Project Purpose, Description and Benefit The purpose of this program is to assure that the McHenry Police Department maintains the proper level of equipment needed in all newly purchased police vehicles. This program will outline the vehicle equipment replacement plan proposed over the course of the next five fiscal budgets. The cost of this equipment is directly related to vehicles purchased annually. The McHenry Police Department currently maintains a vehicle fleet that includes the following vehicles as part of the vehicle replacement program: 1. 17 Marked Police Patrol Squad Cars 2. 3 Marked Specialty Cars (CSO Vehicles and Evidence Van) 3. 9 Unmarked Squad Cars Between 2007 and 2011 the police department reduced its vehicle fleet by four vehicles. The current fleet identified above is predicted to be of sufficient size for the next five fiscal years. As current vehicles are replaced (highlighted in the CIP Vehicle Program) new equipment will be needed for each vehicle. The need for this new equipment is due to the following factors: 1. Age of current equipment: Equipment is transferred from one car to another for an average of three cycles before it needs replacement due to excessive use and wear. Current equipment has reached three cycles as we have purchased no new light bars, sirens, and control boxes over the last seven years. 2. Compatibility of old equipment: With the purchase of new model police vehicles existing equipment parts (cages, consoles, computer mounts, prisoner seats, etc.) are not compatible. 47 3. Information Technology: Squad computers have an average operational life of four years. In car video cameras have an average operational life of five years. The following vehicle replacements will require vehicle equipment purchases annually over the next five years. FY13/14: 4 marked police patrol vehicles and 2 unmarked police vehicles FY14/15: 4 marked police patrol vehicles and 2 unmarked police vehicles FY15/16: 5 marked police patrol vehicles and 1 marked specialty vehicle FY16/17: 5 marked police patrol vehicles and 1 unmarked police vehicle FY17/18: 4 marked police patrol vehicles and 1 marked specialty vehicle Below is the breakdown of estimated equipment costs for each type of vehicle purchased. A 3% increase was added for each year due to the increased cost of equipment. Marked Squad Equipment Cost Analysis: Description Pricing Panasonic Laptop Computer 5,000.00 Vehicle Striping 600.00 Computer Mounting System 500.00 Emergency Lights, Electronics & Mounting Hardware 2,500.00 Rear Plastic Seat 350.00 Prisoner Cage & window bars 1,000.00 Installation Labor 1575.00 Video Camera Install 225.00 Total (2012/2013 fiscal year pricing) 11,750.00 Total 3% rate increase (2013/2014 fiscal year pricing) 12,102.50 Total 3% rate increase (2014/2015 fiscal year pricing) 12,465.58 48 Total 3% rate increase (2015/2016 fiscal year pricing) 12,839.55 Total 3% rate increase (2016/2017 fiscal year pricing) 13,224.74 Total 3% rate increase (2017/2018 fiscal year pricing) 13,621.48 Unmarked Squad Equipment Cost Analysis: Description Pricing Emergency Lights, Siren & Hardware 2,000.00 Installation Labor 1575.00 Total (2012/2013 fiscal year pricing) 3,575.00 Total 3% rate increase (2013/2014 fiscal year pricing) 3,682.25 Total 3% rate increase (2014/2015 fiscal year pricing) 3,792.72 Total 3% rate increase (2015/2016 fiscal year pricing) 3,906.50 Total 3% rate increase (2016/2017 fiscal year pricing) 4,023.70 Total 3% rate increase (2017/2018 fiscal year pricing) 4,144.41 Based on the CIP Vehicle Program, the below equipment packages will need to be purchased at the time the vehicles are purchased. Fiscal Year #Marked Veh. Equip. Cost Total Cost #Unma rked Veh. Equip. Cost Total Cost Total Fiscal Year Cost FY13/14 4 12,102.50 48,410.00 2 3,682.25 7,364.50 55,774.50 FY14/15 4 12,465.58 49,862.32 2 3,792.72 7,585.44 57,447.76 49 FY15/16 6 12,839.55 77,037.30 0 0 0 77,037.30 FY16/17 5 13,224.74 66,123.70 1 4,023.70 4,023.70 70,147.40 FY17/18 5 13,621.48 68,107.40 0 0 0 68,107.40 The above equipment replacement program would be needed to maintain the current level of police services to the community. Police vehicle equipment is required for all officers to perform their job tasks and is a necessity to perform both routine jobs and those of an emergency nature. Equipment placed in vehicles is directly related to the effective and efficient operations of the department. Emergency lighting and equipment reduces risk of vehicle accidents /city liability and allows officers to respond to emergency calls in a fast and safe manner. Prisoner transport equipment (cages and seats) allow for a reduced risk of officer and arrestee injury. Computer equipment allows for the high and accurate communication both internally and externally increasing operation while at the same time reducing liability. Video camera systems allow for an accurate accounting of police incident, used for criminal prosecutions and protection, from false allegations of misconduct. 50 PUBLIC SAFETY: Future Years Project Narratives Project: Emergency Radio Equipment Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $178,000 $120,000 $120,000 $418,000 Project Purpose, Description and Benefit The purpose of this project is to upgrade the McHenry Police Department’s emergency radio equipment from VHF/UHF based equipment to an all digital based service (Motorola Starcom21). The McHenry Police Department currently operates on a VHF/UHF dispatching system for emergency radio communications. Equipment used for radio communications includes thirty (30) car radios, fifty (50) portable radios, dispatch console radios, and a self-maintained infrastructure to operate the system. The infrastructure consists of repeater towers placed thr oughout the McHenry area that are owned, maintained and operated by the city. The age of our equipment ranges from 6 to 15 years in age and much of it is becoming obsolete as some equipment cannot be narrowbanded or repaired as the units have been discontinued. Furthermore, narrowbanding requirements by the FCC have mandated that the McHenry Police Department narrowband our current equipment and frequency twice in the last ten years. It is predicted that we will be required to narrowband at least one more time in the next ten years. Each time narrowbanding takes place the strength of our signals, when transmitting, is reduced, affecting overall emergency communications. This reduction in signal strength causes the need for improvements to our infrastructure. Narrowbanding has caused for poor radio communications within certain areas of McHenry. These improvements can be seen in the installation of additional antennas and repeater towers throughout the McHenry area. The cost to maintain this infrastructure has continuously grown over the years and will continue if we chose to maintain our system. An example of this can be seen in the installation of the new repeater tower north of Johnsburg in November 2012 and rising costs of approximately $2,000 per month for AT&T to serve these repeater towers. Motorola’s Starcom21 digital radio service is what we are recommending for purchase within the next five years. Starcom21 is the official statewide public safety radio network of Illinois. It is a Project 25 compliant 700/800MHz IP based radio system with over 250 radio tower sites across the state. More than 32,000 51 subscribers use Starcom21 which includes all State agencies, McHenry County Sheriff’s Office and numerous municipalities within our county. An estimate breakdown for this project is as follows: 1. Portable radios & accessories (50) $239,850 2. Mobile radios & accessories (30) $130,410 3. Dispatch Center console radios $ 1,750 4. Monthly cost per radio ($34.00) $ 2,720/month It is recommended that the cost of this equipment be phased-in over Years 2 through 5 by purchasing a designated amount of equipment each year until the need is met. This equipment could also be expanded to include the Department of Public Works if so desired. Additional benefits of upgrading to Starcom21 include:  Managed Network  Reliability  Interoperability  Statewide Coverage  Advanced Features  No infrastructure expense  No narrowbanding expense  Local Control  Spectrum Efficiency/Consistent Audio Quality  Advanced Security  Round-the-Clock Support Although not currently an “A” priority, the project must be addressed within the next five years as our current VHF/UHF radios are being phased out nationally. With the recent growth of our dispatching center and levels of communication, combined with the potential growth of the center, this project should be initialized and implemented at the same time as any changes to the dispatch center. 52 PARKS: 5-Year Summary Overview Without question, one of the City’s most popular assets is its comprehensive system of parks (38 park sites comprising more than 635 acres) and their various user amenities that contribute to the outstanding quality of life enjoyed by the residents of McHenry. While there is not a need to expand the number of park sites and acreage, there is a need to ensure that appropriate maintenance and replacement of existing park amenities (court resurfacing, parking lot improvements, fence replacement, playground equipment replacement, etc.) is undertaken. Additionally, looking towards the future needs of the community and use of the park system, future park improvements must be identified. In summary, the FY13/14 – FY17/18 Parks Capital Improvement Program, as proposed, includes ten (10) projects totaling $2,003,000 over the 5-year planning period. The FY13/14 Parks Capital Budget Year CIP includes six (6) proposed projects totaling $307,000. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP Planning period. FY13/14 Capital Budget Year Highlights As described throughout this document, limited revenues mean that very few projects can be implemented within the Parks-CIP. Of the $307,000 proposed for FY13/14, $200,000 is proposed for the Ft. McHenry Renovation project. The remaining five (5) projects – ADA Park Improvements, Parking Lot Improvements, Knox Park Improvements, Petersen Park Improvements, and Sport Court Renovations – are all projects which include upgrades of or maintenance to existing park amenities. FY14/15 – FY17/18 CIP Planning Summary Projects identified in the 5-year planning period include improvements to the barn at Petersen Farm, construction of a connector sidewalk and tot lot in the Legend Lakes subdivision (developer donation funding), improvements to the Hickory Creek Farm property, and construction of Park Washroom Facilities at Shamrock Farms Park and Foxridge Park. 53 PARKS: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 54 PARKS: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Ft. McHenry Renovations A $200,000 $0 $0 $0 $0 $200,000 2 ADA Park Improvements A $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 3 Parking Lot Improvements A $50,000 $25,000 $30,000 $80,000 $150,000 $335,000 4 Knox Park Improvements B $12,000 $20,000 $175,000 $0 $0 $207,000 5 Petersen Park Improvements B $10,000 $28,000 $0 $0 $0 $38,000 6 Sport Court Renovations C $15,000 $10,000 $10,000 $10,000 $0 $45,000 7 Petersen Farm Improvements $0 $12,000 $100,000 $100,000 $50,000 $262,000 8 Legend Lakes Park Improvements $0 $46,000 $0 $0 $0 $46,000 9 Hickory Creek Farm Improvements $0 $0 $170,000 $0 $0 $170,000 10 Park Washroom Facilities $0 $0 $0 $275,000 $325,000 $600,000 Totals $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 # of Projects 6 7 6 5 4 10 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $107,000 $115,000 $505,000 $210,000 $220,000 $1,157,000 2 Park Developer Donations $200,000 $46,000 $246,000 3 IDNR Grant $275,000 $325,000 $600,000 Totals $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 55 PARKS: Project Narratives Project: Ft. McHenry Renovation Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $200,000 $0 $0 $0 $0 $200,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Park Developer Donations $200,000 $200,000 Project Purpose, Description and Benefit This project includes the complete renovation of the Fort McHenry playground, originally constructed in 1994. Costs include all professional design and construction management, materials, equipment and contracted labor to complete the work and will come from collected, on hand, developer donations. Contract for design services was presented to the City Council on December 3, 2012. 56 Project: ADA Park Improvements Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 Project Purpose, Description and Benefit The City of McHenry will need to comply with the 2010 ADA standards for outdoor recreation facilities. The Access Audit and Transition Plan report will be completed in January 2013. This report will identify the revisions that will be needed with estimated costs. NISRA dues are paid out of the City General Fund. The reduction in the City EAV will result in the dues being lowered from $142,501 in FY12/13 to a projected $124,443 in FY13/14. This $18,000 can be used in the upcoming year’s budget to fund all or a substantial portion of these ADA renovations. NOTE: The City is one of 3 agencies in NISRA that does not assess the Special Recreation Levy to fund our membership and other related costs such as inclusion, ADA costs for facility renovations and other qualified costs. As a Home Rule community this levy up to .004 can be adopted without referendum. An estimated $140,000 can be freed up in the general fund for other projects and expenses. The implementation of this levy may be proposed for consideration in 2013 to fund these and related improvements and programs. 57 Project: Parking Lot Improvements Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $50,000 $25.000 $30,000 $80,000 $150,000 $335,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $50,000 $25,000 $30,000 $80,000 $150,000 $335,000 Project Purpose, Description and Benefit Several of the asphalt parking lots in our public parks are severely in need of replacement. The breakdown of these lots and the year in which they were originally installed is listed below, as well as recommendations for the order in which they should be replaced. Location Year installed Year budgeted for replacement Petersen Park South Lot 1976 FY13/14 Lakeland Park 1970’s FY14/15 West Beach Park 1970’s FY15/16 Maintenance Garage 1970’s FY16/17 Several additions and patching since installed Knox Park Pool 1981 FY17/18 58 Project: Knox Park Improvements Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $12,000 $20,000 $175,000 $0 $0 $207,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $12,000 $20,000 $32,000 Park Developer Donations $175,000 $175,000 Project Purpose, Description and Benefit The first two years of this project include: resurfacing of Knox Park tennis courts ; the City’s primary location for summer tennis lessons and open tennis which, since 1980, has only been resealed on 2 occasions; and, the replacement of fencing on the two existing softball fields. The ballfield fencing may be delayed or deleted based on the development of an aquatic center/recreation facility in Knox Park. The FY15/16 proposed amount is for the redevelopment of the Knox Park wooden skate park ramps. The original ramps, installed in the park in 2001, were removed in 2011. 59 Project: Petersen Park Improvements Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $10,000 $28,000 $0 $0 $0 $38,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $10,000 $28,000 $38,000 Project Purpose, Description and Benefit The FY13/14 proposed amount is for the removal of the Petersen Park tennis courts. Installed in 1977-78, the base to these courts is now in extremely poor condition and, despite multiple attempts to crack seal and color coat these courts over the past 30+ years, the only remedy for making them playable is to rebuild them. The recommendation from staff is to remove th e courts completely since there are other lighted courts (Knox Park, West Campus) that can accommodate tennis programs and open play. It should be noted that these courts may be able to be removed in conjunction, as an add-on, to the Petersen Park Parking Lot improvement project. This could result in cost savings and will be explored. The FY14/15 proposed amount is for the installation of an irrigation system at the Petersen Park baseball field. All work would be contracted. 60 Project: Sport Court Renovations Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $15,000 $10,000 $10,000 $10,000 $0 $45,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $15,000 $10,000 $10,000 $10,000 $0 $45,000 Project Purpose, Description and Benefit There are several basketball courts in the park system that are in need of renovation and new equipment. There are 3 full court layouts in the community and 5 half court or shooting courts in various parks. A recommendation was made to the Parks and Recreation Committee on November 14, 2012 on the renovations needed for these sites. Two of these shooting courts are located on the parking lots at Petersen Park and Lakeland Park. These upgrades to the equipment will be made when the asphalt surfaces are replaced. Location Year Installed Year budgeted for work Full Courts Freund Field (Althoff Courts) 2003 converted to Bball FY13/14 Fox Ridge Park 1990 FY13/14 Shamrock Farms Park 2007 FY13/14 Half court/shooting courts Center Street Park 1970’s FY15/16 Kiwanis Tot Lot 1970’s FY15/16 Lakeland Park 1960’S FY16/17 Petersen Park 1978 FY16/17 McHenry Shores Beach 1960’s FY16/17 61 PARKS: Future Years Project Narratives Project: Petersen Farm Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $12,000 $100,000 $100,000 $50,000 $262,000 Project Purpose, Description and Benefit As a significant historical asset to both our community and the region, maintenance and restoration of the Petersen Farm must remain a constant focus of the City’s resources. The proposed amounts include work to weatherproof (i.e., seal) the barn’s interior from the elements and painting, substantial renovations to the Petersen farmhouse, and repair or removal of other structures on the site. It is anticipated that the Landmark Commission and City staff will identify funding sources in addition to the General Fund with which to undertake these improvements. Project: Legend Lakes Park Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $46,000 $0 $0 $0 $46,000 Project Purpose, Description and Benefit Two projects can be finished with remaining funds from the Legend Lakes bond money to complete public improvements in this subdivision. 1.)Shamrock Farms Park - $6,000 for a sidewalk connecting the park with the subdivision to the north. 2.) Galway Tot Lot - $40,000 for the grading, seeding and installation of park equipment in this1.3 acre tot lot. The developer committed in the annexation agreement to build 2 tot lots in this subdivision. Credit was given in the park developer donation fund to complete these sites. One tot lot was finished on Homestead. 62 Project: Hickory Creek Farm Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $170,000 $0 $0 $170,000 Project Purpose, Description and Benefit The Hickory Creek Farm buildings will need attention in the upcoming years. The most pressing need will be to replace the wood shingle roof on this large structure. This facility received a $500,000 grant from the State of Illinois in 1995 for historic preservation purposes. The roof, siding, windows, electric, and utilities were replaced or upgraded to this building. Maintenance on this building is the responsibility of the City of McHenry. Future grant funding from the State or other sources for this building is highly unlikely. Other areas of need in the near future are exterior painting of the building and fencing, fencing replacement, repairs to the awnings, replacement of heating units and other minor work. Project: Park Washroom Facilities Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $275,000 $325,000 $600,000 Project Purpose, Description and Benefit This proposed project is for the c onstruction of two washroom facilities in Shamrock Farms Park and Foxridge Park. These two facilities were submitted to the State of Illinois for PARC grant funded projects and were n ot approved. The funding has been put on hold with other State capital fund projects. If any grant program funding becomes available the preliminary estimates and equipment are specified in the grant documents. Smith Engineering (HR Green) assisted the city with the development of the specifications and estimated costs. The largest cost associated with the washrooms was the extension of utilities to the proposed sites. 63 MOTOR POOL/EQUIPMENT: 5-Year Summary Overview As the community continues to expand, both geographically and population- wise, municipal vehicles and equipment are required to maintain the City’s existing and new network of park land, roads, and utilities. Therefore, the Motor Pool/Equipment category of the General Fund CIP continues to grow incrementally each year as the City expands. Similar to items funded through the General Administration category, it is sometimes difficult to identify the public benefit of expenditures in the Motor Pool/Equipment category. However, without the proper equipment and rolling stock, City crew’s would be unable to mow and maintain the increasing system of parks and athletic fields, plow streets and/or maintain the water and sewer distribution system. In summary, the Motor Pool/Equipment Capital Improvement Program, as proposed, includes six (6) projects totaling $2,386,500 over the 5-year planning period. The FY13/14 Capital Budget Year CIP includes five (5) proposed projects totaling $439,500. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP planning period. FY13/14 Capital Budget Year Highlights A combination of requests from the Department of Public Works/Streets Division, Department of Parks & Recreation/Parks Division, the Downtown Maintenance Division of Administration and the Department of Community & Economic Development comprise the Motor Pool/Equipment category. Each of these departments/divisions maintains a rotational replacement schedule, primarily based in vehicle mileage as distinct from vehicle age, from which requests are made. Due to the dramatic decline in revenues over the last 5 years the City has been stringent with replacing aged vehicles or acquiring new vehicles. However, this prudent approach can only continue for a finite period until vehicle maintenance costs approach the costs of vehicle replacement. In FY12/13 the City began to loosen its approach to vehicle acquisitions in replacing older, less serviceable vehicles and equipment. This approach will continue into FY13/14 and for the foreseeable future. Vehicles proposed for acquisition in FY13/14 include a 20-year old Case front- end loader and three (3) pickups ranging in age from 10 to 24-years old in the Streets Division of Public Works; the replacement of a 24-year old pickup and 12- year old mower in the Parks Division of Parks & Recreation; and the purchase of a cab for the aforementioned mower for use by the Downtown Maintenance Division for snow removal. 64 FY14/15 – FY17/18 CIP Planning Summary As identified above, the City’s ability to continue to expand the motor pool/equipment program will continue to be severely limited in the 5-year planning period and, therefore, the identified departments/divisions will continue to closely monitor replacement schedules and propose vehicular and equipment replacements only as absolutely necessary. The only additional project identified within the 5-year planning period is the replacement of two small pickup trucks in the Department of Community & Economic Development. 65 MOTOR POOL/EQUIPMENT: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 66 MOTOR POOL/EQUIPMENT: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Streets – Equipment Replacement A $217,000 $80,000 $120,000 $51,000 $118,000 $586,000 2 Streets – Vehicle Replacement B $139,000 $387,000 $314,000 $339,000 $230,000 $1,409,000 3 Parks – Vehicle Replacement B $38,000 $78,000 $60,000 %60,000 $60,000 $296,000 4 Parks – Equipment Replacement B $31,500 $0 $0 $0 $0 $31,500 5 Downtown Maintenance C $14,000 $0 $0 $0 $0 $14,000 6 CED – Vehicle Replacement $0 $0 $25,000 $0 $25,000 $50,000 Totals $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 # of Projects 5 3 4 3 4 6 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Totals $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 67 MOTOR POOL/EQUIPMENT: Project Narratives Project: Streets – Equipment Replacement Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $217,000 $80,000 $120,000 $51,000 $118,000 $586,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $217,000 $80,000 $120,000 $51,000 $118,000 $586,000 Project Purpose, Description and Benefit The FY13/14 proposed project includes the purchase of a new front-end loader to replace an existing Case front-end loader that is more than twenty (20) years old. Project: Streets – Vehicle Replacement Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $139,000 $387,000 $314,000 $339,000 $230,000 $1,409,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $139,000 $387,000 $314,000 $339,000 $230,000 $1,409,000 Project Purpose, Description and Benefit The amount proposed in FY13/14 is for the replacement of three (3) ¾ ton pickup trucks ranging in age from 10-24 years, all with approximately 100,000 service miles, in the Streets Division of Public Works. 68 Project: Parks – Vehicle Replacement Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $38,000 $78,000 $60,000 $60,000 $60,000 $296,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $38,000 $78,000 $60,000 $60,000 $60,000 $296,000 Project Purpose, Description and Benefit The amount proposed in FY13/14 is for the replacement of one (1) 23-year old pickup truck with more than 130,000 miles in the Parks Division of the Parks & Recreation Department. Project: Parks – Equipment Replacement Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $31,500 $0 $0 $0 $0 $38,500 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $31,500 $31,500 Project Purpose, Description and Benefit The amount proposed in FY13/14 is for the purchase of a deck mower to replace an approximate 12-year old mower with more than 3,500 service hours and for the replacement of a 28-year old utility trailer. 69 Project: Downtown Maintenance Equipment Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $14,000 $0 $0 $0 $0 $14,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $14,000 $0 $0 $0 $0 $14,000 Project Purpose, Description and Benefit The FY13/14 proposed amount is for the purchase of a new equipment cab for mounting on the previous project/mower to allow this piece of equipment to be used for downtown snow removal in the winter months. 70 MOTOR POOL/EQUIPMENT: Future Years Project Narratives Project: CED – Vehicle Replacement Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $25,000 $0 $25,000 $50,000 Project Purpose, Description and Benefit The proposed project is to replace two (2) Department of Community & Economic Development vehicles. The Department currently utilizes five (5) vehicles for its operations. 71 STREETS/SIDEWALKS/SIGNALS: 5-Year Summary Overview The Streets/Sidewalks/Signals category must remain a leading priority financial commitment of the City based on the existing and increasing needs of a growing community. The development of new roadways and, most importantly, maintenance and expansion of the community’s existing roadway infrastructure are important to meeting the needs of McHenry’s residents. In addition, the development of a comprehensive transportation network is essential to the economic development efforts undertaken by the City. Without sufficient transportation routes to move goods and consumers, existing businesses, frustrated, could choose to relocate out of the community and/or new businesses will also choose to locate elsewhere. Nowhere is the impact of the growth of a community more evident than the transportation difficulties related to McHenry’s primary east-west and north-south arteries – Routes 120 and 31, both under the jurisdiction of the Illinois Department of Transportation (IDOT). As you will see in the following charts and descriptions, a heavy emphasis is currently being placed on coordinating with other local, regional, state and federal organizations to plan and initiate improvements to Routes 120 and 31. However, the City cannot lose sight of the importance of ensuring that local roads and related infrastructure is maintained and/or enhanced and, as such, the Streets/Sidewalks/Signals Capital Improvement Program attempts to incorporate a balance of infrastructure maintenance and expansion projects. Of special note, the reader will identify that the “Street Program” is a $32 million project that involves programmatic improvements to the City’s existing streets system. Currently, this program cannot be funded due to a combination of other roadway improvement commitments. It is listed as an “A” priority and included in the list of recommended projects as it is extremely important the reader is aware that maintenance/replacement of existing public roadways cannot be delayed indefinitely. At some point funding must be committed on an annual basis for the maintenance of the existing public roadway system. In the following table and descriptions the acronyms MFT, STP and ITEP are used. MFT refers to Motor Fuel Tax and is a population-based revenue source provided by the State of Illinois. MFT funds are to be applied to pavement maintenance and resurfacing projects at the discretion of the municipality. STP refers to Surface Transportation Program, a transportation funding program authorized through the United States Department of Transportation (USDOT) and the Transportation Equity Act for the 21st Century (TEA-21). The STP provides flexible funding that may be used by States and localities for projects on any Federal- aid highway, bridge projects on any public road, transit capital projects, and intracity and intercity bus terminals and facilities. A portion of funds reserved for 72 rural areas may be spent on rural minor collectors. In McHenry County, STP funded projects are reviewed and authorized through the McHenry County Council of Mayors. Finally, ITEP refers to the Illinois Transportation Enhancement Program which provides funding for community based projects that expand travel choices and enhance the transportation experience by improving the cultural, historic, aesthetic and environmental aspects of our transportation infrastructure. In summary, the FY13/14 – FY17/18 Streets/Sidewalks/Signals Capital Improvement Program, as proposed, includes nine (9) projects totaling $46,452,200 over the 5-year planning period. The FY13/14 Streets/Sidewalks/Signals Capital Budget Year CIP includes seven (7) proposed projects totaling $11,877,800. The following section provides a summary narrative of the projects included in the FY13/14 Capital Budget Year and then the remaining FY14/15 through FY17/18 CIP planning period. 73 STREETS/SIDEWALKS/SIGNALS: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 74 STREETS/SIDEWALKS/SIGNALS: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Street Program A $2,249,800 $7,775,400 $6,164,100 $9,214,500 $7,263,700 $32,667,500 2 Pavement Maintenance – Cracksealing (MFT) A $30,000 $30,000 $30,000 $30,000 $30,000 $150,000 3 IL 120/31 Intersection Improvements (ITEP, MFT, IDOT) A $7,640,000 $0 $0 $0 $0 $7,640,000 4 Crystal Lake Road Improvements (STP, MFT) A $1,800,000 $0 $0 $0 $0 $1,800,000 5 McCullom Lake Road Improvements (MFT) A $65,000 $60,000 $1,205,700 $0 $0 $1,330,700 6 Bull Valley Road Improvements (MFT) A $68,000 $51,000 $935,000 $0 $0 $1,054,000 7 Sidewalk Program B $25,000 $75,000 $75,000 $75,000 $100,000 $350,000 8 Curran/Bull Valley Intersection Improvements $0 $0 $0 $80,000 $980,000 $1,060,000 9 IL 31/Veterans Parkway Signal $0 $0 $0 $0 $400,000 $400,000 Totals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $$8,773,700 $46,452,200 # of Projects 7 5 5 4 5 9 75 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $25,000 $75,000 $75,000 $75,000 $100,000 $350,000 2 IDOT $6,559,500 $0 $0 $0 $0 $6,559,500 3 STP $1,500,000 $0 $0 $0 $0 $1,500,000 4 ITEP $864,400 $0 $0 $0 $0 $864,400 5 MFT* $668,100 $550,000 $550,000 $550,000 $550,000 $2,868,100 Totals $9,617,000 $625,000 $625,000 $625,000 $650,000 $12,142,000 Unfunded $2,249,800 $7,150,400 $5,539,100 $8,589,500 $6,613,700 32,349,500  FY14/15-FY17/18 MFT amounts assume $700,000 in MFT funds per year available. 76 STREETS/SIDEWALKS/SIGNALS: Project Narratives Project: Street Program Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $2,249,800 $7,775,400 $6,164,100 $9,214,500 $7,263,700 $32,667,500 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $0 $0 $0 $0 $0 $0 Project Purpose, Description and Benefit THIS PROJECT IS IDENTIFIED AS PRIORITY LEVEL “A” BUT NO FUNDING IS IDENTIFIED. The city has approximately 125 centerline miles of roadway under their jurisdictional responsibility. To establish the list, staff and the city engineer visited each street to verify and inspect the current condition of the pavement. Street ranking is based on a 10 point system with the ranking of #1 equivalent to a gravel road and a ranking of #10 equivalent to a newly paved road. The estimated dollar amounts listed above were derived from using th e ranking system as follows; FY2013/14 streets with a ranking of #1, #2 or #3; FY2014/15 streets with a ranking of #4; FY2015/16 streets with a ranking of #5; FY2016/17 streets with a ranking of #6; FY2017/18: streets with a ranking of #7. Currently the street program is totally funded by Motor Fuel Tax (MFT) revenues. MFT funds are also used for the purchase of road salt and the CI ty’s portion of any matching fund requirement of grants used for road improvements which are received through the Federal or State Agencies. 77 Project: Pavement Maintenance – Cracksealing (MFT) Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $30,000 $30,000 $30,000 $30,000 $30,000 $150,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Motor Fuel Tax (MFT) $30,000 $30,000 $30,000 $30,000 $30,000 $150,000 Project Purpose, Description and Benefit The FY12/13 Capital Improvement Program included $30,000 for a crack sealing maintenance program with revenues from the Motor Fuel Tax Fund. This was the first year a pavement maintenance program using the cracksealing method was performed on City streets. Routing, cleaning, and sealing cracks is effective pavement preservation practice for streets that exhibit nominal pavement distress. The primary cause of asphalt failure is water infiltration into the street sub grade. Cracksealing is one of the most cost-effective preventative maintenance practices for City’s roadways. Public Works Staff will prepare a list of potential streets for the FY13/14 pavement maintenance program and will also perform construction observation. A pavement maintenance program such as cracksealing protects the investment of the road resurfacing program. 78 Project: Illinois Route 120/31 Intersection Improvements (ITEP, MFT, IDOT) Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $7,640,000 $0 $0 $0 $0 $7,640,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total ITEP $ 864,422 $ 864,422 MFT $ 216,105 $ 216,105 IDOT $ 2,314,431 $ 2,314,431 CMAQ $ 2,745,000 $ 2,745,000 STP $ 1,500,000 $ 1,500,000 Project Purpose, Description and Benefit The improvements to Illinois Route 31 and Illinois Route 120 include road and bridge widening, traffic signal modernization, hot-mix asphalt surface removal and resurfacing, sidewalk replacement, street lighting and streetscape improvements. The project limits include Illinois Route 120 approximately 1,100 feet west of Illinois Route 31 to Green Street; and Illinois Route 31 from Illinois Route 120 to approximately 400 feet south of McCullom Lake Road. The total combined length of improvements is approximately 3,895 feet or 0.74 miles. The project is primarily funded from the Illinois Department of Transportation and Federal funds. The City was successful in obtaining an Illinois Transportation Enhancement Program (ITEP) grant through the Illinois Department of Transportation (IDOT). The ITEP grant is in the amount of $928,000 for street lighting/ streetscape improvements and requires the City to provide a 20% funding match. Additional lanes will improve roadway safety by remediation of identified High Accident Location spots and segments that exist throughout the project limits and to remove a traffic bottleneck that results in severe traffic congestion during peak daily travel times. The bottleneck section is a remaining “gap section” in-between multi-lane sections to the east and west of Illinois Route 31, and a multi-lane section of Illinois Route 31 north of McCullom Lake Road. It is estimated that the contract documents will be prepared to meet an April 2013 letting. 79 Project: Crystal Lake Road Improvements (STP, MFT) Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $1,800,000 $0 $0 $0 $0 $1,800,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total STP $1,500.000 $1,500,000 MFT $300,000 $300,000 Project Purpose, Description and Benefit The improvements to Crystal Lake Road from Route 120 to Bull Valley Road include traffic signal modernization, hot-mix asphalt surface removal and resurfacing, pavement patching, spot concrete curb and gutter replacement, detectable warnings and pavement striping. The McHenry County Council of Mayors awarded up to $1,500,000 of Surface Transportation Program (STP) funds for Crystal Lake Road Improvements. STP funding will pay for up to 80% of the total cost of construction and Phase III engineering with a l ocal match requirement of 20%. The City is responsible for 100% of the cost of Phase I and II Engineering. Motor Fuel Tax (MFT) revenues will be utilized for the City’s cost of the project. It is estimated that the contract documents will be prepared to meet an April 2013 letting. 80 Project: McCullom Lake Road Improvements (STP, MFT) Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $65,000 $60,000 $1,205,700 $0 $0 $1,330,700 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total STP $963,700 $963,661 MFT $65,000 $60,000 $242,000 $367,000 Project Purpose, Description and Benefit McCullom Lake Road (FAU 4085) from Illinois Route 31 (FAU 0336) to the northern City limits at the railroad tracks 800 feet north of Lakewood Road will be improved for a total length of approximately 5,600 feet. The proposed improvements consist of traffic signal modernization, intersection capacity improvements, widening, hot mix asphalt removal, hot-mix asphalt resurfacing with binder course and surface course, aggregate shoulders, pavement patching, minor drainage improvements and new pavement markings. Additionally a new sidewalk will be constructed on the south side of the road in front of Petersen Park connecting to the existing Prairie Path bike route. The new sidewalk will provide increased access to Petersen Park, numerous neighborhoods as well as City's north side commercial corridor. Intersections within the project limits will be analyzed to enhance traffic flow and improve turn lane capacity. Turn lanes will be evaluated and lengthened to current standards. In addition, the Blake Boulevard intersection will be evaluated and modernized in accordance with the latest standards and technology. It is the intent of the improvements to enhance intersection capacity, increase the structural integrity of the pavement structure, provide travel lanes with an adequate aggregate shoulder with the ability to support occasional vehicle loads, enhance safe pedestrian access to specific points of interest, address various minor drainage issues and to modernize existing traffic signals at the Blake Boulevard intersection. The McHenry County Council of Mayors awarded up to $964,529 of Surface Transportation Program (STP) funds for McCullom Lake Road Improvements. STP funding will pay for up to 80% of the total cost of construction and Phase III engineering with a local match requirement of 20%. The city is responsible for 100% of the cost of Phase I and II Engineering. Motor Fuel Tax (MFT) revenues will be utilized for the City’s cost of the project. It is estimated that the contract documents will be prepared to meet a 2015 l etting. 81 Project: Bull Valley Road Improvements (MFT) Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $68,000 $51,000 $935,000 $0 $0 $1,054,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total STP $748,000 $748,000 MFT $68,000 $51,000 $187,000 $306,000 Project Purpose, Description and Benefit Bull Valley Road (FAU 3860) from Draper Road to Curran Road (FAU 0084) will be improved for a total length of approximately 5,200 feet. The proposed improvements consist of intersection capacity improvements, widening, hot- asphalt resurfacing with binder course and surface course, aggregate shoulders, pavement patching, minor drainage improvements and new pavement markings. Intersections within the project limits will be analyzed to enhance traffic flow and improve turn lane capacity. The Curran Road intersection will be evaluated to determine the feasibility of installing a right turn lane to enhance the intersection capacity. It is the intent of the improvements to enhance intersection capacity, increase the structural integrity of the pavement structure, provide travel lanes with an aggregate shoulder with the ability to support occasional vehicle loads, and address various minor drainage issues along the route. The McHenry County Council of Mayors awarded up to $749,346 of Surface Transportation Program (STP) funds for Bull Valley Road Improvements. STP funding will pay for up to 80% of the total cost of construction and Phase III engineering with a local match requirement of 20%. The City is responsible for 100% of the cost of Phase I and II Engineering. Motor Fuel Tax (MFT) revenues will be utilized for the City’s cost of the project. It is estimated that the contract documents will be prepared to meet a 2015 letting. 82 Project: Sidewalk Program Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $25,000 $75,000 $75,000 $75,000 $100,000 $350,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $25,000 $75,000 $75,000 $75,000 $100,000 $350,000 Project Purpose, Description and Benefit Sidewalks are removed and replaced by Public Works Staff on an as -needed basis. Sidewalk repairs are also included in the annual road resurfacing program. Sidewalks with trip hazards, major cracks and significant spalling are replaced. In addition, sidewalk crossings that require ramp retrofits to meet the requirements of the Americans with Disabilities Act (ADA) are constructed. The city’s last major sidewalk program took place in 1995, at that time $190,000 was budgeted for the program. Staff has recognized the need to once again initiate a sidewalk program due to the large amount of sidewalks throughout town that are deteriorated, do not meet ADA requirements , and gaps that exist between the sidewalk network. Sidewalks improve pedestrian safety, by separating vehicle and pedestrian traffic. 83 STREETS/SIDEWALKS/SIGNALS: Future Years Project Narratives Project: Curran/Bull Valley Intersection Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $80,000 $980,000 $1,060,000 Project Purpose, Description and Benefit In May 2007 the City Council approved an engineering services agreement with SEC for Phase I design of the Bull Valley Road/ Curran Road intersection improvements. The annexation agreement for the Preserves of Boone Creek states that the developer must con tribute in-kind intersection improvements to Curran Road and Bull Valley Road in the amount of $400,000. In addition, the agreement states that these intersection improvements shall be constructed within ninety days after the first final plat of the subdivision for commercial development is approved, or in the alternate, prior to the developer receiving a building permit for the 200th residential unit. A traffic warrant study was performed in spring 2012. At that time the current traffic conditions did not meet warrant requirements for the installation of a multi-way stop or a traffic signal as outlined in the Manual on Uniform Traffic Control Devices. Project: Illinois Route 31/Veterans Parkway Signal Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $400,00 $400,000 Project Purpose, Description and Benefit The annexation agreement for the Morgan Hills/Prairie Pointe Subdivisions states the developer shall be responsible for and pay the cost of the construction and installation of a traffic control signal at the intersection of Illinois Route 31 and Veterans Parkway. Traffic warrant studies have been performed by the Illinois Department of Transportation and at this time the current traffic conditions d o not meet warrant requirements for the installation of a traffic control signal as outlined in the Manual on Uniform Traffic Control Devices. The developer currently has a letter of credit on file with the City to cover the cost of the traffic control signal once traffic warrants are met. 84 STORMWATER/DRAINAGE: 5-Year Summary Overview The Stormwater/Drainage Capital Improvement Program has two primary goals: first, the maintenance and/or enhancement of existing public stormwater management infrastructure; and, second, to respond to requests from individual residents or small groups of residents to undertake projects that will relieve their properties of stormwater management concerns. Unfortunately, as is most often the case, many of these problems relate to the topography of individual parcels or adjacent parcels and/or private property improvements, which have resulted in increased stormwater detention onto properties. As such, the focus of the Stormwater/Drainage CIP is the implementation of public projects which benefit larger areas of the community and not individual properties. In summary, the FY13/14 – FY17/18 Stormwater/Drainiage Capital Improvement Programs, as proposed, includes four (4) projects totaling $1,365,000 over the 5- year planning period. No projects are identified within the FY13/14 Stormwater/Drainage CIP. The following narrative descriptions will identify these projects further. 85 STORMWATER/DRAINAGE: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total General Administration $50,000 $113,000 $0 $0 $0 $163,000 Public Facilities $1,300,000 $285,000 $2,260,000 $2,350,000 $275,000 $6,470,000 Public Safety $201,100 $207,100 $409,200 $349,000 $324,500 $1,490,900 Parks $307,000 $161,000 $505,000 $485,000 $545,000 $2,003,000 Motor Pool $439,500 $545,000 $519,000 $450,000 $433,000 $2,386,500 Streets/ Sidewalks/ Signals $11,877,800 $7,991,400 $8,409,800 $9,399,500 $8,773,700 $46,452,200 Stormwater/ Drainage $0 $0 $0 $700,000 $665,000 $1,365,000 Total General Fund CIP $14,175,400 $9,302,500 $12,103,000 $13,733,500 $11,016,200 $60,330,600 86 STORMWATER/DRAINAGE: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Ramble Road Storm Sewer $0 $0 $0 $500,000 $0 $500,000 2 Willow Lane Storm Sewer $0 $0 $0 $200,000 $0 $200,000 3 Lakeland Park Ditch Dredging $0 $0 $0 $0 $500,000 $500,000 4 Storm Sewer Mapping $0 $0 $0 $0 $165,000 $165,000 Totals $0 $0 $0 $700,000 $665,000 $1,365,000 # of Projects 0 0 0 2 2 4 Proposed Funding Source(s): Funding Source FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 General Fund Revenues $0 $0 $0 $700,000 $665,000 $1,365,000 Totals $0 $0 $0 $700,000 $665,000 $1,365,000 87 STORMWATER/DRAINAGE: Future Years Project Narratives Project: Ramble Road Storm Sewer Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $500,000 $0 $500,000 Project Purpose, Description and Benefit This project includes engineering and construction of storm sewer improvements in the area of Ramble Road and Home Avenue. Specific drainage improvements will be determined by engineering and could include storm sewer piping, sheet flow modifications, or detention to reduce the risk of localized flooding. This area is served by open ditch drainage and driveway culverts with limited underground storm sewer pipe. Drainage improvements projects such as this repair and/or improve existing drainage structures in order to provide better protection for property and life from storm sewer runoff. Project: Willow Lane Storm Sewer Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $200,000 $0 $200,000 Project Purpose, Description and Benefit This project includes engineering and construction of storm sewer improvements in the area of Knoll Avenue and Willow Lane. Specific drainage improvements will be determined by engineering and could include storm sewer piping, sheet flow modifications, or detention to reduce the risk of localized flooding. This area is served by open ditch drainage and driveway culverts with limited underground storm sewer pipe. Drainage improvements projects such as this repair and/or improve existing drainage structures in order to provide better protection for property and life from storm sewer runoff. 88 Project: Lakeland Park Ditch Dredging Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $500,000 $500,000 Project Purpose, Description and Benefit The Lakeland Park Drainage Ditch is located north of Elm Street (Illinois Route 120) between Ringwood Road and Maple Avenue. The ditch generally flows in an easterly direction to a point where it joins Boone Creek just upstream from the Fox River. Over the past several years the City has been addressing drainage problems within the Lakeland Park subdivision. Improvements have included cleaning out existing storm sewers, regrading existing open ditches and constructing new larger size storm sewers. This project would be the first phase of surveying, engineering and possible construction of the regrading/dredging to the Lakeland Park Drainage Ditch to assure continued drainage to prevent potential flooding. Project: Storm Sewer Mapping Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $165,000 $165,000 Project Purpose, Description and Benefit The Public Works Department is currently utilizing a geographic information system (GIS) for the City’s water and sewer mapping. The GIS mapping was constructed in 2006 by SEC Group using global positioning system (GPS) equipment. The original GIS mapping included the locations of watermains, fire hydrants, main line valves, wells, water towers, sanitary sewer lines, sanitary sewer manholes and sanitary sewer lift stations. Since the original mapping staff has added the locations of b-boxes, City maintained street lights, and storm sewer outfalls. Currently staff has very limited mapping (nothing on GIS )of the City’s vast storm sewer system and is purposing to add this to the existing GIS system. 89 CHAPTER FIVE WATER & SEWER UTILITY FUND CAPITAL IMPROVEMENT PROGRAM CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 WATER & SEWER UTILITY FUND: 5-Year Summary Overview Similar to the Capital Improvement Program recommendations for the General Fund CIP, the Water & Sewer Fund CIP requires a balanced, broad-based approach. As in previous years, all of the various elements and aspects of the City’s utility infrastructure need to be considered when preparing the 5-year plan for the Water & Sewer Utility Fund. The City needs to consider the projects and funding to properly maintain all of the utility systems on a daily basis, provide compliance with both current and future regulatory standards, provide reliable, quality service to our customers, and at the same time, balance expenses with available revenue. The City must be able to continue to provide the daily service while also planning for the future in all areas including water treatment, well capacity, water storage, water distribution, wastewater treatment, sanitary sewer mains, motor pool, maintenance of lift stations, and water meter installation, maintenance and reading. The Water & Sewer Utility Fund CIP consists of projects related to both the operations and capacity of the municipal water and sewer utility system. As such, except for the Streets/Sidewalks/Signals Category of the General Fund CIP, the Water & Sewer Fund CIP includes the largest and most costly CIP projects – from the construction of water and sewer mains to the development of expanded or new water and wastewater treatment plants. The City of McHenry has been very successful in achieving both a balanced Capital Improvement Program and, at the same time, using sound management of the Water & Sewer Utility Fund. McHenry has invested a substantial sum, on an annual basis, for the proper maintenance and improvement of the utility systems, and the accompanying new 5-Year CIP will continue this strategy. Given the extreme importance of utility infrastructure in all aspects of the community, attention must be given to the proper maintenance of the existing facilities and the daily operation and maintenance of the utility systems to provide a reliable service to our customers. This attention to the present must be balanced with the need to prepare for the future by identifying and undertaking improvements that will be needed to improve capacity, compliance, technology, and efficiency of the system to continue to provide the high quality of service that our customers expect. With utility operations, one of the greatest challenges is not only to keep up with the ever changing regulatory standards and the goal to achieve compliance, but to also anticipate future changes in regulations and treatment standards in advance. Due to the complexity of these regulations, the time required to modify the treatment processes for improved performance, and the time required to 90 accumulate funding, these changes and improvements can require years to implement from start to finish. As a result, the 5-Year CIP becomes critical for the successful operation of the City’s utilities. In summary, the FY13/14 – FY17/18 Water & Sewer Fund CIP proposes a total of twenty-two (22) projects at a total cost of $15,726,300. The FY13/14 Capital Budget Year Water & Sewer Fund CIP proposes ten (10) projects totaling $573,300. The following proposed project narratives will be presented separately as Water System Improvement projects and then Sewer System improvement projects in order to assist the reading to quickly and clearly distinguish between the two. 91 Water & Sewer Utility Fund: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total Water System Improvements $224,000 $160,000 $1,103,000 $295,000 $8,900,000 $10,682,000 Sewer System Improvements $349,300 $440,000 $1,065,000 $250,000 $2,940,000 $5,044,300 Total Water & Sewer Utility Fund CIP $573,300 $600,000 $2,168,000 $545,000 $11,840,000 $15,726,300 92 WATER CIP: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Water Meter Replacement B $119,000 $100,000 $100,000 $50,000 $50,000 $419,000 2 Utility – Motor Pool (Replacement) B $40,000 $30,000 $10,000 $55,000 $15,000 $150,000 3 Utility – Motor Pool (New) B $30,000 $0 $0 $0 $0 $30,000 4 Water Tower Maintenance/ Repair C $20,000 $0 $0 $0 $300,000 $320,000 5 GIS Web-Based Mapping C $15,000 $0 $0 $0 $0 $15,000 6 Water Treatment Plant #4 Maintenance $0 $30,000 $0 $0 $0 $30,000 7 Route 31/Miller/ Bull Valley Water Main Construction $0 $0 $585,000 $0 $0 $585,000 8 Barreville Road Water Main Extension $0 $0 $308,000 $0 $0 $308,000 9 Water Main Replacement Program $0 $0 $100,000 $100,000 $100,000 $300,000 10 Well #14 & Raw Water Line to Plant #6 $0 $0 $0 $65,000 $885,000 $950,000 11 Water Treatment Plant #6 Development $0 $0 $0 $25,000 $2,700,000 $2,725,000 93 12 Water Treatment Plant #5 Development $0 $0 $0 $0 $4,100,000 $4,100,000 13 Eastside Water Main Extension (North & South Legs) $0 $0 $0 $0 $750,000 $750,000 Totals $224,000 $160,000 $1,103,000 $295,000 $8,900,000 $10,682,000 # of Projects 5 3 5 5 8 13 94 WATER CIP: Project Narratives Project: Water Meter Replacement Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $119,000 $100,000 $100,000 $50,000 $50,000 $419,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $119,000 $100,000 $100,000 $50,000 $50,000 $419,000 Project Purpose, Description and Benefit In December 2001 the City started installing Badger Meter "Trace" transponders , which had a 10 year battery life expectancy, and allowed the meters to be read via radio technology (drive-by). In 2006 Badger Meter discontinued "Trace" and produced "Orion" which is still a "drive-by" technology with a greater battery life expectancy, 20 years. There are approximately 3875 "Trace" units in circulation. With the Trace units already approaching their battery life expectancy, and the City utilizing two different meter reading technologies, the decision to replace aging Trace units with Orion has started and will continue throughout the 5-year CIP period. 95 Project: Utility – Motor Pool (Replacement) Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $40,000 $30,000 $10,000 $55,000 $15,000 $150,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $40,000 $30,000 $10,000 $55,000 $15,000 $150,000 Project Purpose, Description and Benefit The purpose of this project request is for the replacement of Water Division motor pool vehicles. Proposed for FY13/14 is the replacement of one (1) pickup truck with lift gate. Vehicles proposed for replacement throughout the remainder of the 5-year CIP planning period are as follows: FY14/15 – Ford Pickup Truck FY15/16 – Wells Cargo Trailer FY16/17 – Ford F350 Utility Truck (1 ton with lift gate) FY17/18 – Air compressor 96 Project: Utility – Motor Pool (New) Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $30,000 $0 $0 $0 $0 $30,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $30,000 $0 $0 $0 $0 $30,000 Project Purpose, Description and Benefit The purpose of this project request is for the purchase of new Water Division motor pool vehicles. The only vehicle proposed for purchase within the 5 -year CIP planning period is one additional pickup truck. Project: Water Tower Maintenance & Repair Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $20,000 $0 $0 $0 $300,000 $320,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $20,000 $0 $0 $0 $300,000 $320,000 Project Purpose, Description and Benefit The Public Works Department's mission and focus is to maintain facilities and infrastructure so that a high and reliable level of customer service can be continually delivered to the residents and consumers of the City of McHenry. FY 2013/2014 Water Tower #4 was placed in service in June, 2006. The coating repairs needed to the exterior of the tank will help reach the coating life expectancy and overall appearance for years to come. The exterior and interior 97 of the tank coating are assumed at a 20 year life expectancy. FY 2014/2015 Water Tower #3 construction began in the fall of 2000. The coating on the tower has experienced some failures. An attempt to clean and repair those areas that can be reached was done by in-house personnel. There are areas on the exterior that cannot be reached by personnel. A 20 year life expectancy for the coating is desirable, but that goal may need to be attuned in light of the premature failure being witnessed. To date there has not been a complete evaluation of specifications for repainting the entire structure insid e and out. This will enable the City to realize the true cost of the project. Maintenance of the coatings provides longevity to the steel structure, and a clean appearance. Project: GIS Web-Based Mapping Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $15,000 $0 $0 $0 $0 $15,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $15,000 $0 $0 $0 $0 $15,000 Project Purpose, Description and Benefit In January 2006, the City Council approved an engineering services agreement with Smith Engineering Consulting to develop a Geographical Information System "GIS" for the City's Utility Systems. The GIS system is hosted "locally" on City servers. This poses certain issues for software licensing, "real time" viewing when updates are done. Web based hosting would allow viewing through internet connected devices, such as; tablets, laptops in the field. 98 WATER CIP: Future Years Project Narratives Project: Water Treatment Plant #4 Maintenance Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $30,000 $0 $0 $0 $30,000 Project Purpose, Description and Benefit Water Treatment Plant #4 was constructed in 1993. The treatment plant is located in a residential neighborhood, and was constructed to look similar to homes being constructed in the Oaks of McHenry. This fiscal year the building will be 20 years old and replacement of the exterior aluminum siding will need to be considered. The exterior siding is a protective layer to the building, as well as providing a pleasant appearance for neighboring residents. There has been no defined scope for replacement, but that will be carefully considered in the upcoming year. For this reason the funds being requested are only very rough estimates at this time, and may need to be adjusted accordingly. Project: Route 31/Miller/Bull Valley Water Main Relocation Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $585,000 $0 $0 $585,000 Project Purpose, Description and Benefit In the fall of 2012, McHenry County DOT started Phase 1 of the Route 31/Miller Road/Bull Valley Road Improvements. Funding and land acquisition issues made it necessary to split the project into 2 phases. In Phase 2, engineering has identified conflicts between existing water main and storm sewer improvements related to the project. The areas identified are along portions of Rt.31, south of Bull Valley Road, and Bull Valley Rd. west of Rt.31. It is anticipated the City will be required to “adjust” or relocate sections of water main at various locations. McHenry County DOT has not given a start date for Phase 2, for this reason staff is anticipating this expenditure for FY15/16. 99 Project: Barreville Road Water Main Extension Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $308,000 $0 $0 $308,000 Project Purpose, Description and Benefit In June 2008 the IEPA issued a permit for construction of approximately 1300 feet of water main along the west side of Barreville Road extending from Charles Miller Road to the Pebble Creek Subdivision. This project would "loop" the respective area describe above, providing improved water quality, fire protection, and added system redundancy. The installation of sidewalks along Barreville Road is included in this project. The down turn in the housing market has impacted the Capital Development Fees collected, and as a result, the project has been delayed until funding becomes available. Project: Water Main Replacement Program Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $100,000 $100,000 $100,000 $300,000 Project Purpose, Description and Benefit To date there is no official water main replacement program. The City in 1996 replaced a limited amount of water main in the Millstream Subdivision due to the high frequency of water main breaks and disruptions to service that local residents were experiencing. In 2007 the City Council approved an engineering service agreement with Smith Engineering Consulting (SEC Group) to create a water system model evaluating the overall performance of the system. In this report, areas of town were identified with "undersized" water mains, creating issues like "bottle necks" where water hydraulically reaches maximum flow rates. This can pose issues for future development, fire protection, water quality, etc. Staff is attempting to institute a water main replacement program for aging infrastructure, and proactive replacement for future needs, and to address water quality issues. 100 Project: Well #14 (Liberty Trails) & Raw Water Line to Plant #6 (Adams Industrial Park) Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $65,000 $885,000 $950,000 Project Purpose, Description and Benefit The City conducted a test well program in the fall of 1997, concluding in the spring of 1998. One site was determined to have the possibility to produce 455 gpm. The site at that time was known as the Diedrich Property, now known as the Liberty Trails Subdivision. Depending on the construction of WTP #6, a raw water line would need to be installed from Liberty Trails to the treatment plant site located in Adams Commercial Center, Water Tower #3, and Well #11 site. This project will need to be revisited for its true cost and feasibility. Project: Water Treatment Plant #6 Development (Adams Industrial Park) Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $25,000 $2,700,000 $2,725,000 Project Purpose, Description and Benefit On February 18, 2002 the City Council approved an Engineering Services Agreement with Baxter & Woodman to design Water Treatment Plant #6. This treatment facility would treat a total of 1000 gpm, supplied from two 500 gpm shallow wells, Well #11 located at the Water Tower #3 site, and a future well. The need for the expansion was documented in a 1994 Update to the Utility Master plan. Subsequently in a letter from the City to Baxter & Woodman dated May 4, 2005, the City terminated the agreement with Baxter & Woodman. The reason for terminating the agreement (switching gears) was that the water system demonstrated a greater demand on the west side of the City, as that was the area of greatest development. WTP #6 was never "completely" finished with the design phase. For this reason, funds outlined in FY16/17 are to be used to complete the design. Some questions remain and will need to be addressed for the design to be completed. 101 Project: Water Treatment #5 Development (Legend Lakes) Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $4,100,000 $4,100,000 Project Purpose, Description and Benefit On September 6, 2006 the City Council approved an engineering services agreement with Smith Engineering Consultants. SEC’s agreement was to provide construction documents consisting of plans and specifications for the construction of a new water treatment facility for Well #12 and Well #13, approximately 1,400 lineal feet of new finished water piping from the new facility to Farmstead Road, and selection of submersible-type well pump and controls for Well #13. The new facility will be designed to remove barium and radium from the raw water of Well #13 and iron from the raw water of Well #12. The new treatment facility will utilize ion exchange to treat/remove the barium and radium from the 1,200 gpm from Well #13 and aeration/filtration to treat/remove iron from the 500gpm from Well #12. The new treatment facility will be housed in a new building that will architecturally resemble the Fire House that was constructed to the east and include backwash retention, brine storage, chemical treatment systems, clear well, high service pumpage, 1/2 bathroom, basic laboratory, dehumidifier, generator, transfer switch, instrumentation, controls and necessary apparatus. Due to the economic downtown, the Capital Development Fund cannot support the construction of WTP #5 at the present time. Expansion of the City's water system, as in the past, will be driven by current and future development. Project: Eastside Water Main Extension (North & South Legs) Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $750,000 $750,000 Project Purpose, Description and Benefit In January 2007 the IEPA released a "Fact Sheet" detailing sampling of monitoring wells located at 3004 W. Route 120. The results indicated significant levels of chemical solvents in the ground water. Further testing concluded that private wells in a defined area were affected by this contamination. The IEPA asked the City to prepare to extend the public water supply to affected areas. Some of the affected areas - primarily north of Rt. 120- are in unincorporated 102 McHenry County. Due to the public health risk, installation of a public water supply is necessary to provide safe and clean water to the affected properties. There are two designed and permitted phases for construction, i.e. "North and South legs.” A small section of the "south leg" has been install ed by the owner of the property on the southeast corner of Route 120 and River Road. As of January 2013 funding still has not been secured for this project. There are multiple regulatory agencies involved, such as; IEPA, USEPA, Illinois Department of Health, and McHenry County Department of Health. This is a "shovel ready" project once funding has been secured. 103 Water & Sewer Utility Fund: 5-Year Summary Overview GENERAL CORPORATE FUND CIP 5-YEAR SUMMARY Fund Title FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total Water System Improvements $224,000 $160,000 $1,103,000 $295,000 $8,900,000 $10,682,000 Sewer System Improvements $349,300 $440,000 $1,065,000 $250,000 $2,940,000 $5,044,300 Total Water & Sewer Utility Fund CIP $573,300 $600,000 $2,168,000 $545,000 $11,840,000 $15,726,300 104 SEWER CIP: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 CWWTP Improvements A $90,000 $0 $0 $0 $0 $90,000 2 SWWTP Chlorine Contact Gates B $118,000 $0 $0 $0 $0 $118,000 3 Sanitary Sewer Main Rehab Program B $20,000 $100,000 $100,000 $100,000 $100,000 $420,000 4 Utility – Motor Pool (Replacement) B $91,300 $300,000 $200,000 $150,000 $150,000 $891,300 5 Utility – Motor Pool (New) C $30,000 $0 $0 $0 $0 $30,000 6 SWWTP Grit Removal $0 $40,000 $565,000 $0 $0 $605,000 7 Lift Station Generators $0 $0 $200,000 $0 $0 $200,000 8 Millstream Lift Station Rehab $0 $0 $0 $0 $1,990,000 $1,990,000 9 Hunterville Sanitary Sewer Installation $0 $0 $0 $0 $700,000 $700,000 Totals $349,300 $440,000 $1,065,000 $250,000 $2,940,000 $5,044,300 # of Projects 5 3 4 2 4 9 105 SEWER CIP: Project Narratives Project: Central Wastewater Treatment Plant (CWWTP) Improvements Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $90,000 $0 $0 $0 $0 $90,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $90,000 $0 $0 $0 $0 $90,000 Project Purpose, Description and Benefit The CWWTP has an emergency power generator that should start up and engage within seconds of a power failure. This immediate transfer of power is necessary to insure that all the pumps, essential equipment and computers continue to operate to prevent a sanitary sewer overflow and discharge into the river. The generator is equipped with an automatic transfer switch that senses when Comed is no longer supplying power. When the switch senses a loss of Comed power it calls for the generator to start. Once the generator has started up and is up to speed, the switch automatically cuts the power from Comed and transfers the power supply to the emergency power generator. When Comed power is restored, the transfer switch senses this and operates in reverse; engaging the Comed supply and disconnecting the generator and shutting it off after a cool down period. Currently the automatic transfer switch will not start the emergency power generator or automatically transfer the power supply. This means that during a power outage the CWWTP is without power until an operator arrives onsite and manually starts the generator and the manually transfers the load. This project requires the replacement of two 600 amp transfer switches and all necessary wiring. In addition electrical service to the back building must be upgraded. This portion of the project consists of new conduit, a new junction box and a new 480 volt feed line to the back pump/blower building. Completion of this project ensures a safe and reliable emergency power source 106 for the CWWTP. This emergency power generator and transfer switches will remain on site to power the pumps and equipment after the CWWTP is decommissioned. Project: South Wastewater Treatment Plant (SWWTP) Chlorine Contact Gate Replacement Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $118,000 $0 $0 $0 $0 $118,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $118,000 $0 $0 $0 $0 $118,000 Project Purpose, Description and Benefit Chlorine contact tanks are the final step in the wastewater treatment process. This is where the chlorine comes in contact with the treated wastewater and any remaining pathogens are removed or neutralized. Approximately once a month these chlorine contact tanks have to be drained and cleaned. The way this is accomplished is to close the gates that allow the wastewater to enter the contact tanks and open the drain valve. Once the contact tank is empty it can be cleaned of any grit or solids that may have accumulated. Over the years small holes have developed in the gates. This is due to oxidation , which is a natural occurrence in this type of operation. The holes have become so big that the drain in the chlorine contact tanks cannot sufficiently empty them to be cleaned. Even with the gates closed the contact tanks cannot be drained without the aid of a large gasoline power pump which must be kept running during the process. In addition, the tanks cannot be drained completely to perform any needed maintenance. The project would consist of installing new operating mechanisms and new fiberglass gates. The fiberglass gates will prevent holes from rusting-through in the future. Replacing the gates will allow the tanks to be completely isolated and drained for cleaning, repair and maintenance. 107 Project: Sanitary Sewer Rehabilitation Program Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $20,000 $100,000 $100,000 $100,000 $100,000 $420,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $20,000 $100,000 $100,000 $100,000 $100,000 $420,000 Project Purpose, Description and Benefit Over half of the flow entering the treatment plants, or approximately 1,000 ,000 gallons per day, is groundwater and would not need to be treated. This groundwater enters the sanitary sewer system through cracks, breaks and loose joints in the sewer mains. During a severe rain event, over 2,000,000 gallons of ground water per day could potentially enter the sanitary sewer system. This amount of groundwater entering the treatment plants on a daily basis severely restricts the capacity and performance of the treatment plants. By eliminating as much of this infiltration as possible the city can greatly increase the capacity and effectiveness of the treatment plants. The infiltration and inflow is reduced or stopped by inserting a new lining in th e existing sewer main and thereby stopping the flow of groundwater into the sewer main. This type of repair was done in October 2012 on a section of the sewer main that runs down Golfview Ave. By cutting the amount of infiltration by one third or approximately 300,000 gallons per day, the City could increase the capacity of the treatment plant by 300,000 gallons per day. Currently the design, permitting and plant construction costs for 1,000,000 gallons of physical capacity are in the $8 - $10 million dollar range. By reducing the inflow/infiltration by 300,000 gallons per day the city could save approximately $2.4 million dollars in expansion costs. Also the treatment plants would perform better and have reduced operating costs. 108 Project: Utility – Motor Pool (Replacement) Priority Ranking: B Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $91,300 $300,000 $200,000 $150,000 $150,000 $891,300 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $91,300 $300,000 $200,000 $150,000 $150,000 $891,300 Project Purpose, Description and Benefit The purpose of this project request is for the replacement of Sewer Division motor pool vehicles. Proposed for FY13/14 is the replacement of one diesel truck with a hoist crane. Vehicles proposed for replacement throughout the remainder of the 5-year CIP planning period are as follows: FY14/15 – Aqua Tech FY15/16 – Dump Truck and Pickup Truck FY16/17 – Dump Truck FY17/18 – Dump Truck 109 Project: Utility – Motor Pool (New) Priority Ranking: C Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $30,000 $0 $0 $0 $0 $30,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total Water/Sewer Revenues $30,000 $0 $0 $0 $0 $30,000 Project Purpose, Description and Benefit The purpose of this project request is for the purchase of new Sewer Division motor pool vehicles. The only vehicle proposed for purchase within the 5 -year CIP planning period is one additional pickup truck. 110 SEWER CIP: Future Years Project Narratives Project: South Wastewater Treatment Plant (SWWTP) Grit Removal System Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $40,000 $565,000 $0 $0 $605,000 Project Purpose, Description and Benefit A grit removal system is one of the first and most important steps in the wastewater treatment process. Grit and sand are inorganic matter that cannot be removed by any biological means during the wastewater treatment process. The only way to remove them is with a grit removal system at the beginning of the treatment process. The grit removal system would be sized to accommodate the additional flow of raw wastewater from the CWWTP when it is decommissioned. Currently neither treatment plant has a grit removal system so the grit settles in the treatment plant causing damage to pumps and other equipment. Also, as the grit settles and accumulates in the plant, it takes up valuable space that could be used to treat more wastewater. In addition, the grit that accumulates can harbor pathogens and bacteria that make treating the wastewater more difficult and costly. The City is in the process of testing two different grit removal systems. Although they are from different manufacturing companies the process used is similar. As wastewater enters the treatment plant it passes through a screen with ¼” openings. This removes any large rocks, sticks, and pieces of metal or other inorganic material like cigarette butts. This fine mesh screen captu res all the grit, sand and a percentage of the organic material entering the treatment plant. There are multiple benefits to the City from purchasing and installing a grit removal system. First, taking the grit out of the wastewater will help prolong the life and efficiency of the many pumps and other pieces of equipment used to move and treat the water. Grit in the water wears down the insides of the pumps and pipes, which require them to be rebuilt or replaced more often. Every time a pump must be rebuilt there is a substantial amount of money and time spent to do so. Eliminating some of the wear and tear on the pumps will make them last longer and perform better while cutting the operating cost of the equipment. Removing the grit that would settle out in the treatment plant oxidation ditches and the aerobic digesters frees up this space to be used to treat wastewater. Additionally, the grit removal system is capable of removing some of the organic material entering the treatment plant. Having this capability means the treatment plant could potentially handle a much high er 111 flow rate and still meet the I.E.P.A. permit limits. Being able to process a much greater flow at the SWWTP will save the City money when looking at options to abandon the CWWTP. Project: Lift Station Generators Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $200,000 $0 $0 $200,000 Project Purpose, Description and Benefit The purpose of this project is to install a permanent emergency back-up power generator at the Broadway Ave Lift Station and the South Riverside Dr. Lift Station so they can continue to operate seamlessly in a power outage. The generators would be natural gas powered units with sound attenuation and sized to sufficiently handle the electrical load. Currently the only source of electricity for these lift stations during a power outage are portable generators. When a power outage occurs an operator must be called in to access the situation and tow a generator to the lift station and hook it up. Often during a power outage there are multiple lift stations and possibly treatment plants that are without power. It could potentially take the operator an extended amount of time to get the power resupplied to these two lift stations. By installing permanent generators at these two lift stations the City can be assured that the residents are much less likely to experience a sanitary sewer back-up in their home. Project: Millstream Lift Station Rehabilitation and Sewer Main Relocation Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $1,990,000 $1,990,000 Project Purpose, Description and Benefit The project purpose is to eliminate one lift station and relocate a sewer main. This will be accomplished by relocating and increasing the size of the Millstream Ave Lift station. Once this is done the Freund Ave Lift stations’ flow will be diverted to the new lift s tation. This will eliminate one lift station, two pumps and 112 all of the controls necessary to operate it. Another component of this project is to relocate the existing sewer main, which runs under the old Sullivan Foods on Rt. 120 and then along Boone Creek. The existing main is in poor condition and will need to be replaced/relocated prior to development occurring along Boone Creek. Project: Hunterville Sanitary Sewer Installation Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $0 $700,000 $700,000 Project Purpose, Description and Benefit The purpose of this project is to install a sanitary sewer system and collection system in the Hunterville Subdivision. The project consists of the design and construction of the systems. Although some of the preliminary design work has been completed the actual type of sanitary system has not been chosen. Due to the geography of the area the most likely system to install would be a low pressure system. This subdivision is right on the Fox River and makes a traditional gravity collection system cost prohibitive. This project does qualify for Government Funding under a DCEO grant. That grant would pay for a portion of the project costs with the remainder to be funded by the residents. This project would benefit the residents in that it would provide a safe and more effective way to deal with their sanitary wastewater. 113 CHAPTER SIX TAX INCREMENT FINANCE FUND CAPITAL IMPROVEMENT PROGRAM CITY OF MCHENRY ANNUAL 5-YEAR CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2013/2014 THROUGH FISCAL YEAR 2017/2018 TAX INCREMENT FINANCE FUND: 5-Year Summary Overview By action of the City Council, the City of McHenry Downtown Tax Increment Finance (TIF) District was established in 2002. Tax Increment Financing (TIF) is an economic development tool that was provided by state lawmakers more than 25 years ago to assist local governments in attracting private development and new businesses to their respective communities. TIF helps public and private investors overcome extraordinary costs that often prevent development and private investment from occurring on environmentally sensitive and other properties that are at risk of remaining underutilized/underdeveloped for an extended period of time. As a result of this investment, the TIF area is improved and property values increase. Without TIF benefits, a deteriorating area is less likely to improve. Investors do not invest capital into decaying areas and most local governments cannot afford the needed costly improvements without raising taxes. When considering an area for TIF designation, municipal officials must ask the question “Will the same kind of private investment occur here without an incentive?” In other words, “but for” the establishment of a TIF as a mechanism for providing financial incentives for private investment, would redevelopment occur that is desired by the community? Once a TIF is established, private investors and local governments are able to undertake redevelopment projects by utilizing the increase in property tax revenues, or tax increment, as a funding source for TIF improvements over a period not to exceed 23 years. The tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. Establishment of a TIF does not reduce property tax revenues available to the overlapping taxing bodies because property tax revenues collected on properties included in the TIF at the time of its designation continue to be distributed to taxing districts in the same manner as if the TIF did not exist. Only property taxes generated by the incremental increase in the value of these properties after that time are available for use by the TIF. On April 15, 2002 the City Council established the City of McHenry TIF District. The TIF District encompasses the area between John Street on the south and the Fox River on the east, Third Street on the west and Pearl and Broad Street on the north. The primary intent of creating the TIF District was to revitalize the downtown with a primary focus of generating funds to construct the proposed Riverwalk. Much work has been completed to date in the TIF District and as a result the City is now positioned to encourage downtown revitalization. 114 The first development within the TIF District, Riverwalk Place Townhomes was formally approved by the City Council on April 14, 2003. The project consists of twenty (20) luxury townhome units with two bedrooms (third bedroom option), 2.5 bathrooms and two-car garages with an exterior of brick and siding. The 1.69-acre site is located on the north side of Waukegan Road, south of Boone Lagoon and east of Green Street. Construction of the development has transformed a vacant parking lot into a quality development that serves as an example for future developments in the TIF District. TIF assistance has also made it possible for the city to fund boat piers and public utility improvements at the site. Another project that came to fruition through the assistance of the TIF District has been the redevelopment of the former Eby Brown Building. The building has been completely renovated and is the new home of Verlo Mattress as well as various other inline store frontage. In 2007/08, the second major project within the TIF District began to take form on a parcel on the site of the former medical arts property at 1110 N. Green Street. The site was purchased and prepared by the city of McHenry eventually including the site as a TIF incentive through an RFQ/RFP process. A redevelopment agreement was approved by city council on March 5, 2007 and work on the building commenced. This four story mixed use building contains 62,000 total square feet including 17,000 square feet of first floor retail space. The 45,000 square feet of residential space occupy floors two through four of the building with 27 total units. In all just over $2,000,000 in incentives were provided to the Riverwalk Place development with the first certificate of Occupancy issued in January of 2010. Finally in the fall of 2012, the city of McHenry entered a in a contract to purchase the former site of the Dobyn’s House, commonly referred to as Miller Point in the Riverwalk Plans. The 2.6 acres of land will potentially be the base for the next redevelopment project as well as the continuation of the Riverwalk project and its extension to the Fox River. The public improvements on the site will include a number of public boat slips to provide access to those utilizing the Fox River a place to dock and enjoy Downtown McHenry. The hard work of many has come to fruition with construction of the Riverwalk beginning and the base of redevelopment projects set. It is the intent of the City of McHenry to continue to aggressively encourage additional development and redevelopment according to the adopted Downtown Plan and to complete the construction additional phases of the Riverwalk. The FY13/14 – FY17/18 Tax Increment Finance CIP includes five (5) projects totaling $13,878,000. The FY13/14 Tax Increment Finance CIP includes one (1) project totaling $55,000. The project identified for FY13/14, RIverwalk Improvements, is for the installation of a boat pier system on the Miller Point 115 (former Dobyn’s House) property subsequent to the City’s purchase of the property. Other projects included within the 5-year planning period include Parking Lot Improvements, the installation of a Riverwalk Surveillance System, and continued Streetscape Improvements. Further, future years of the Riverwalk Improvements include substantial improvements to the Riverwalk as found in planning documents related to this project. It is anticipated that a combination of private developer-related improvements in conjunction with the redevelopment of the Miller Point property, in conjunction with increased TIF revenues generated through redevelopment will ultimately fund these improvements. Again, as stated previously, improvements within the entire TIF District, but especially the development of the RIverwalk as an economic development amenity, are vital to the future success of McHenry’s downtown area. 116 TAX INCREMENT FINANCE: Recommended Projects Project Priority FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 5-Year Total 1 Riverwalk Improvements A $55,000 $0 $0 $0 $13,000,000 $13,055,000 2 Parking Lot Improvements $0 $80,000 $38,000 $24,000 $16,000 $158,000 3 Riverwalk Surveillance System $0 $15,000 $0 $0 $0 $15,000 4 Streetscape Improvements $0 $0 $300,000 $350,000 $0 $650,000 Totals $55,000 $95,000 $338,000 $374,000 $13,016,000 $13,878,000 # of Projects 1 2 2 2 2 4 117 TAX INCREMENT FINANCE: Project Narratives Project: Riverwalk Improvements – Miller Point/Dobyn’s House Pier System Priority Ranking: A Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $55,000 $0 $0 $0 $13,000,000 $13,055,000 Funding Source(s): FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total General Fund Revenues $55,000 $0 $0 $0 $0 $55,000 TIF Revenues $0 $0 $0 $0 $13,000,000 $13,000,000 Project Purpose, Description and Benefit Identified as an improvement as part of the Downtown Plan, the City’s recent acquisition of the Miller Point/Dobyn’s House property allows for some immediate improvements, which will benefit the downtown by increasing public access to the Fox River and draw boaters and traffic off of the River by providing a public boat dock. The piers would be installed in accordance with the Riverwalk Plan and placed as such to match any future infrastructure expansion, as was done with the Riverwalk Place Townhome piers. The initial phase would account for the installation of approximately 10-12 boat slips. The amount identified for FY17/18 reflects the total amount of proposed Riverwalk Improvements which will hopefully be financed through private investment and/or TIF revenues generated through increased property tax values within the TIF. As a result of declined TIF revenues due to property reassessments, the project identified for FY13/14 will be funded through the General Fund and repaid by the TIF Fund as revenues increase. 118 TAX INCREMENT FINANCE: Future Years Project Narratives Project: Parking Lot Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $80,000 $38,000 $24,000 $16,000 $158,000 Project Purpose, Description and Benefit All of the downtown parking lots are in extremely poor condition. Lot replacement would be phased beginning with the most heavily utilized Green Street lot, then Court Street, and finally the lots located on Main Street. Project: Riverwalk Surveillance System Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $15,000 $0 $0 $0 $15,000 Project Purpose, Description and Benefit The purpose of this project is to install a multiple camera system to monitor the RIverwalk to protect from vandalism (destruction of property and graffiti) and to provide a mechanism for potentially identifying and prosecuting vandals. Project: Streetscape Improvements Funding Request: FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 Total $0 $0 $0 $300,000 $350,000 $650,000 Project Purpose, Description and Benefit The purpose of this project is for the purchase and installation of streetscape related amenities within the TIF District. Identified within the 5-year planning period is the purchase and installation of street lighting for the Route 120 corridor. 119