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8B - 2011-2016 Parks & Recreation Capital Improvement Program (CIP) CITY OF BOULDER PARKS AND RECREATION ADVISORY BOARD AGENDA ITEM MEETING DATE: April 26, 2010 AGENDA TITLE: 2011 - 2016 Parks and Recreation Capital Budget PRESENTERS: Kirk Kincannon, CPRP, Director Parks and Recreation Alice Guthrie, Recreation Superintendent Abbie Poniatowski, Senior Business Manager EXECUTIVE SUMMARY The purpose of this agenda item is for the Parks and Recreation Department to communicate its planning for the 2011 capital budget, specifically Capital Improvement Program (CIP) projects. At this time, the Parks and Recreation Advisory Board (PRAB) will have an opportunity to ask questions and provide comments. The PRAB input is essential throughout the 2011 capital budget process. Staff will consider the Board's comments on the proposed 2011 expenditures and will return at the May business meeting for a formal recommendation of the CIP budget, including the appropriation of the Permanent Parks and Recreation Fund. Additionally, the PRAB will be asked to provide a recommendation on the CIP budget for the .25 Cent Sales Tax and Lottery Funds. The department's CIP budget will then be submitted to the Planning Board and City Council for review and respective considerations and approvals. All projects exceeding $50,000 will be included in the CIP. The only exception would be emergency repairs that are needed during the budget year. The proposed allocation of the CIP budget includes average annual projected increases in the Permanent Parks and Recreation, .25 Cent Sales Tax and Lottery Funds. IMPACTS Fiscal: $3M. This amount reflects the total uses of funds projected for 2011 in the Permanent Parks and Recreation, .25 Cent Sales Tax and Lottery Funds. Note that target budget projections will not be released by the city Finance Office until the beginning of May, and therefore all 2011 figures are preliminary. The department will provide a budget update with final projections for the CIP at the May business meeting. PUBLIC FEEDBACK There will be a public hearing at the May 24, 2010 PRAB meeting for public comment on the department's recommended 2011 CIP budget. The public will also have the opportunity to comment during the Planning Board's CIP review in June and City Council's discussions and review of the 2011 recommended budget at several subsequent study sessions and public hearings. AGENDA ITEM # VIII.B. ; PAGE 1 BACKGROUND Capital Budget Overview The department's capital budget consists of CIP projects and renovation, refurbishment and major maintenance projects. CIP Projects CIP projects are defined as any major project with a cost greater than $50,000 for purchase or construction, or major replacement of physical assets. CIP projects are potentially subject to a Community and Environmental Assessment Process (CEAP) review that evaluates any potential environmental, traffic or social impacts to Boulder residents, neighborhoods and businesses. These projects are budgeted within the framework of the city of Boulder's CIP Budget. CIP projects are categorized as: • Existing Facility -Rehabilitation and Repair/ Deficiency Correction o Repair damage to existing infrastructure o Rehabilitate due to deterioration o Bring in compliance with safety or other regulations o Replacements without enhancements • Existing Facility - Enhancements/Upgrades o Renovate and improve o Road/intersection additions/improvements o Rehabilitation to improve or enhance existing infrastructure o Minor additions or new construction associated with existing facility o Restoration • Reconstruction o Move existing facility o Reconstruct former existing facility o Major renovations for new use • New Construction - Growth Related Facility/Additions o New facility; directly growth related o Expanded space to accommodate growth related needs • New Construction - Not Growth Related o New improvement/facility; not directly growth related • Planning • Study or Analysis Major Maintenance Projects Major maintenance projects consist of restoring and/or enhancing the service life of existing capital assets, either through refurbishment or replacement. These projects are budgeted within AGENDA ITEM # VIII.B. ; PAGE 2 the city of Boulder Operating Budget. Although these items technically are capital expenditures, they are budgeted differently than new CIP projects and are included here for context. The budget recommendation focuses on the work areas below. Estimates are based on the same levels of service provided during 2010, which could change based on current economic conditions. • Urban Park Renovation and Refurbishment (R&R) o Emergency safety repairs identified throughout the year o Repair and upgrade to walkways and parking areas a Americans with Disabilities Act (ADA) accessibility improvements o Refurbishment of older park irrigation systems to improve efficiency of water use and to reduce maintenance requirements (funds project costs that exceed annual CIP appropriation) o Refurbishment of outdated playgrounds elements to improve function and to address safety and accessibility requirements (funds project costs that exceed annual CIP appropriation) o Refurbishment of park shelters and restrooms o Repair and/or replacement of bridges and shelters • Recreation Facility Renovation and Refurbishment (R&R) o Public Safety and Health enhancements o Americans with Disabilities Act (ADA) accessibility improvements o Energy efficiency improvements o Recreation facility improvement projects • Maintenance • Removal of state listed noxious weeds from department owned and managed lands and inventory plants and animals for management and budgetary decision making • Wildlife management on department owned and managed lands • Refurbishment and grant matching funds for projects at the Columbia Cemetery, Chautauqua Park area, Boulder Museum of Contemporary Art (BMOCA), the Harbeck House and Locomotive #30/74. Capital Budget Funding The capital budget is funded from the following sources: • Permanent Parks and Recreation Fund (Fund 230) • .25 Cent Sales Tax Fund (Fund 118) • Lottery Fund (Fund 111) Permanent Parks and Recreation Fund (Fund 230) The source of the Permanent Parks and Recreation Fund comes from the 0.9 mill levy of assessed valuation of all taxable property in the city, gifts and donations, proceeds of sale of park property or equipment, any appropriations from City Council, and revenues from a one time AGENDA ITEM # VIII.B. ; PAGE 3 development excise fee (DET) assessed on each new residential unit constructed in or annexed to the city with the exception of affordable housing units. The fund is utilized for the acquisition of park land, permanent improvements or major maintenance of park and recreation facilities. The funds received from the Open Space Mountain Parks (OSMP) Department for the purchase of the Kentucky and Papini properties go into this fund amounting to approximately $670,000 per year for three years, beginning in 2009. In the November 2008 election, the "debrucing" ballot initiative was passed by the voters that will positively impact the department's capital budget. A phased removal of the remaining restriction on the property tax that is limited by the Taxpayers Bill of Rights (TABOR) will increase at a rate higher than inflation resulting in additional funding in the Permanent Parks and Recreation Fund. As long as property values remain stable, it is estimated that the fund will receive approximately $100,000 in additional annual revenues. Per city charter, the PRAB's role is to approve expenditures from the fund. .25 Cent Sales Tax Fund (Fund 118) The source of the .25 Cent Sales Tax Fund comes from a dedicated sales tax that was approved by voters in 1995. The fund is utilized for the payment of principal, interest and premium if any, on bonds, and then for development, operation, and maintenance of the land and improvements purchased and constructed with the proceeds of the bonds, for renovation and refurbishment or replacement of park and recreation facilities. The PRAB's role regarding the .25 Cent Sales Tax Fund is to provide feedback to the department on its planned uses of these funds. Lottery Funding (Fund _1.1.1) The Colorado State Lottery is the source of the Lottery Funding. By State of Colorado statute, the city of Boulder receives revenues from the Lottery's Conservation Trust Fund on a per capita basis. The monies are to be used for land acquisitions, equipment purchases, facility development, natural lands maintenance, park maintenance and renovation or restoration of local facilities. In the 2010 capital budget, the funds are allocated to Habitat Restoration and Urban Parks Renovation and Refurbishment (R&R). The Lottery Fund allocation is based on the 2001 PRAB and Open Space Board of Trustees (OSBT) joint recommendation to City Council. The departments agreed that portions of the annual appropriation would be earmarked for the department to pay off debt service and for the OSMP Department to fund Mountain Parks projects ($100,000) and Tributary Greenways projects ($150,000). Thereafter, the remaining Lottery funding would be split 50/50 between departments. For 2010, an interim Lottery Fund interdepartmental agreement continues to be in tact between the department and the OSMP Department - both departments were allocated equal $525,000 distributions (after the $150,000 for Tributary Greenways) rather than each department receiving specific "earmarks" prior to the 50150 distribution. AGENDA ITEM # VIII.B. ; PAGE 4 The PRAB's role regarding Lottery Funding is to provide feedback to the department on its planned uses of these funds. Budget Status Due to the national economic downturn, sales and use tax have estimates continue to be less than anticipated and revised downward to reflect 2009 year-end actuals and collections trends for 2010. The 2009 revenue decline will carry into 2010 resulting in reductions to the approved budget. As a result, planned operating and capital expenses must be reduced to maintain the required fund balances between revenues and expenditures. The sales/use tax revenue decline impacts capital funding in the .25 Cent Sales Tax Fund. Staff is awaiting official projections from the city's Budget Office, but is prioritizing funding for CIP, renovation, refurbishment and major maintenance projects. Staff is working collaboratively with the Facilities Asset Management (FAM) workgroup to prioritize funding for deferred, major and ongoing facility maintenance. Some enhancement-related improvements and development projects will be put on hold. Staff will reevaluate work plans and invest in projects that mitigate ongoing maintenance expenses, take advantage of reduced commodity costs or increased revenue-generating opportunities and stimulate the local economy. For example, funding may be redirected for energy efficiencies at recreation centers or utilized to accelerate projects (e.g., golf course irrigation replacement, concrete and sidewalk repair). Budget Guiding Principles In an effort to plan capital investment in an uncertain economic time, staff updated its guiding principles based on the city's business plan and the department's master plan goals. The following framework was utilized to determine and plan CIP projects and make budget decisions that are sustainable over time. These priorities are also focused on maintaining the integrity of the current infrastructure and facilities before expanding and/or enhancing programs and facilities. I. Commitment (C) - Projects that are required by law/ballot (e.g., Elks Park), are in- process of development (e.g., East Boulder Community Park), or recommended goals in the department master plan (e.g., Playground and Irrigation System Renovations). 2. Safety and Health (S) - Projects that preserve the safety and health of the current infrastructure and facilities that are required to be completed to comply with regulations or may be hazardous to users if not repaired in a timely manner (e.g. Arrowwood Bridge Repair). 3. Efficiencies (E) - The department will consistently seek efficiency improvements in both operational and capital investments. Projects will result in savings in resources, energy or water usage (e.g., Flatirons Golf Course Irrigation System Replacement, Computerized Irrigation System). 4. Revenue impacts/potential (R) - The department will invest in facilities and programs AGENDA ITEM 4 VIII.B. ; PAGE 5 that generate revenue that support valued recreational opportunities in the Boulder community. Projects will enhance the department's ability to earn more revenue after initial investment and operational costs are considered (e.g. Flatirons Golf Course Playability Enhancements). Project Prioritization Based on the budget guiding principles, the PRAB is asked to provide guidance in prioritizing the list of CIP projects. Due to the volatility of the economy, staff is making its best estimate to determine the revenue projections utilized as the basis of available funding in the .25 Cent Sales Tax Fund. Fortunately, the sources of funding for the Permanent Parks and Recreation and Lottery funds are more stable and can be budgeted as anticipated for 2011. The department is proposing the following CIP projects in 2011. CIP Project Summary sheets by funding source for 2011 - 2016 are provided for additional information (Attachments A - Q. Proposed Project Category Project Description 2011 Funding Computerized Begin replacement of system- Irrigation System wide computerized irrigation $250,000 Replacement system to improve efficiency of water usage in Urban Parks Dairy Center for the Arts Landscape and P&R will complete landscape and $80,000 Irrigation irrigation renovations Improvements Existing Facility Enhancement and d Flatrions Golf Course Improvements include drainage, Playability tee boxes on high impact tees and $140,000 Upgrades Enhancements some new bunkers The pool shell is inefficient resulting in water leakage and Scott Carpenter Pool needs to be replaced. A fiberglass Repair shell with a 10-15 year lifetime $200,000 will be installed until a plan for major renovation or replacement is established. Existing Facility - To ensure safety of patrons, major Rehabilitation, Repair d Bridge bridge improvements will be $85,000 Repair and/or Repair completed Deficiency The Family Gathering Place Correction located in the 1300 Block of the Family Gathering Place Pearl Street Mall requires $150,000 renovation AGENDA ITEM # VIII.B. ; PAGE 6 The department has a master plan commitment to renovate one Playground and playground and one irrigation Irrigation System system per year. The specific $600,000 Renovation sites are determined based on criteria, assessed annually and communicated to the PRAB. In March 2009, a Plant Investment Fee (PIF) ordinance was adopted related to water, wastewater and storm water PIF changes. These changes are to be Thunderbird Lake phased in over the next three Plant Investment Fee years. These fees are charged $250,000 (PIF) when an increase in demand is placed on the city's existing water system. If the use of the retrofitted irrigation system is continued after the completion of this project term in 2011, a PIF fee will be charged. Phase 1 development (portion of the park north of Valmont Road) will continue through 2011. New Construction - Plans include construction of the Growth-related Site Valmont City Park bike park, dog park, disc golf $650,000 or Facility Additions course, regional trail connections and other associated infrastructure, utilities and park amenities. Per the .25 Cent Sales Tax Ballot, New Construction - Elks Neighborhood an additional neighborhood park $500,000 Not Growth-related Park must be completed prior to ballot expiration. Upon completion of the Boulder Boulder Reservoir Site Reservoir Master Plan, site Planning Planning planning will be needed to $100,000 determine specific facility improvements. AGENDA ITEM # VIII.B. ; PAGE 7 Upon completion of the Flatirons Flatirons Golf Course Golf Course business plan, site Site Planning planning will be needed to $100,000 determine specific facility improvements. Per the recommendation within the department's master plan approved in 2006, an update is P&R Master Plan required every 5 years. The $200,000 Update update will be consultant-led with staff support and include a facility needs assessment and community survey. Updates to 2010 - 2015 CIP Since sales tax revenues are the source of .25 Cent Sales Tax Fund funding and budget reductions are required again in 2010, staff has re-evaluated the CIP project funding based on the current fund balance and preliminary sales tax forecasts. Utilizing the budget principles, the scopes of some projects have been revised and some projects will continue as planned. Additionally, with reduced funding sources, staff is requesting that the PRAB allocate prior year "unanticipated opportunities" fund balance to supplement current projects. The following list is a brief summary of the changes. • Staff has made an assessment and reduced the initial scope of the Stado Irrigation Replacement Project from $150,000 to $50,000. Staff is making essential repairs to the system to improve efficiencies while considering patron use in the upcoming season. • In an effort to commence development of Phase I of Valmont City Park, additional monies are required to supplement the project budget. Adequate funding is not available to accommodate the anticipated project scope, even with donations from partners. As part of the city adjustment-to- base process, staff requested that that remaining funding from the completed Dakota Ridge Park project ($160,750) be redirected to the project. Additionally, the revenues from the sale of the Papini and Kentucky properties to OSMP ($671,333) that would be budgeted for 2011 will be advanced/taken from fund balance and utilized in 2010. • Lastly, staff is requesting that the PRAB authorize prior year's "unanticipated opportunities" fund balance of $200,000 for Phase 1 of Valmont City Park. This funding, combined with the above mentioned budget reallocations, will ensure adequate monies are in place to begin construction. Future Funding Considerations The department master plan provided a list of priority items to complete if additional funding is obtained. As staff researches and proposes new financial sustainability strategies, they will be brought to the PRAB for consideration. Also, as development priorities are shifted, staff will adjust the CIP accordingly, in consultation with the PRAB. AGENDA ITEM # VIII.B. ; PAGE 8 • As new parks are developed and current parks are expanded, additional maintenance funding will be required to manage these areas and facilities. Staff will estimate maintenance needs and provide a recommendation to the PRAB on how the funding might be obtained or prioritized. • A Development Excise Tax (DET) study analyzed the existing revenues generated from the collection of the DET and City Council approved the implementation to increase revenues from the DET and institute impact fees. • Staff is systematically quantifying the deferred maintenance needs of the parks and recreation system including park site and recreation facility needs. • All city departments include an Unfunded Capital Projects (Attachment D) list that reflects the respective Action and Vision plans. QUESTIONS FOR THE BOARD • What questions does the PRAB have regarding the department's draft 2011 CIP project list? • What are the PRAB's recommended priorities for 2011 CIP projects? • What questions does the PRAB have regarding proposed expenditures from the Permanent Parks and Recreation Fund? NEXT STEPS The department will provide final projections to the capital budget and conduct a public hearing regarding the CIP at the PRAB's May business meeting. At that time, the PRAB will be asked to approve the expenditures from the Permanent Parks and Recreation Fund and to support a motion to recommend approval of the department's CIP budget. Attachment: A. Permanent Parks and Recreation Fund (Fund 230) Project Summary Sheet 2011- 2016 B. .25 Cent Sales Tax Fund (Fund 118) Project Summary Sheet 2011 - 2016 C. Lottery Fund (Fund 111) Project Summary Sheet 2011 - 2016 D. P&R Unfunded Capital Projects AGENDA ITEM # VIII.B. ; PAGE 9 Attachment A Recommended Permanent Parks Recreation Fund (Fund 230) 2011-2016 Capital Improvement Program Project Summary Sheet 2011 2012 2013 2014 2015 2096 Priority Recommended Projected Projected Projected Projected Projected Total Existing Facility- Enhancements/Upgrades Com utehzed Irrigation System Replacement E 250,000 205,000 165,000 620,000 Dairy Center Landscape and Irrigation Improvements C 80,000 80,000 Flatirons Golf Course Irrigation Replacement C, E 200,000 600,000 600,000 1,400,000 Flatirons Golf Course Pla abili Enhancements R 140,000 140,000 Lighting Ordinance Implementation C, E 100,000 100,000 250,000 250,000 250,000 950,000 Pearl Street Mail Irrigation Replacement E 750,000 750,000 1,500,000 Scott Carpenter Pool Repair C S 200 000 200,000 Subtotal 670,000 505,00011 865,000 850,000 1,000,000 1,000,000 4,890,000 Existing Facility-Rehab/Repair/Deficiency Correction Pla round and Irrigation System Renovation C 300,000 300,000 300,000 300,000 300,000 300,000 1,800 000 Thunderbird Lake PIF C 250,000 250,000 Subtotal 550,000 300,000 300,000 300,000 300,000 300,000 2,050,000 New Construction-Growth Related Facility/Additions Valmont City Park Phase I C 500,000 250,000 250,000 250,000 1,250,000 Subtotal 500,000 250,000 250,000 250,000 1,250,000 New Construction- Not Growth Related Longs Garden Land Purchase/Lot Development C 474,000 474,000 Washin ton School Pocket Park C 150,000 150,000 Subtotal 150,0001 1 474,000 624,000 On-Going Projects Unanticipated Opportunities C 100,000 100,000 100,000 100,000 100,000 50C,000 Subtotal 100,000 100,000 100,000 100,000 100,000 500,000 Planning Area III Planning C 100,000 100,000 Boulder Reservoir Site Planning C-1 R 100,000 50,000 150,000 Flatirons Golf Course Site Planning E R 100,000 50,000 150,000 P&R Master Plan Update C 200,000 200,000 Scott Carpenter Pool Assessment and Outreach S R 100,000 100,000 Subtotal 400,000 200,0001 1 100,000 700,000 ota 2,2 0,000 11,355,000 1,989,000 1,600,000 1,400,000 11,400,000 110,014,000 1 AGENDA REM # V1//-lb , PAGE Recommended .25 Cent Sales Tax Fund (Fund 118) Attachment B 2011-2015 Capital Improvement Program Project Summary Sheet 2011 2012 2013 2014 2015 Priority Recommended Projected Projected Projected Projected Total Exisiting Facility - Enhancements/Upgrades Artificial Turf Field Installation R 500,000 500,000 1,000,000 Subtotal 500,000 500,000 1,000,000 Existing Facility - Rehab/Repair/Deficiency Correction Arrowwood Bridge Repair S 85,000 85,000 Family Gathering Place S 150,000 150,000 Wonderland Lake Sidewalk Repairs S 75,000 75,000 150,000 Subtotal 235,000 75,000 75,0001 1 385,000 New Construction - Growth Related Facility/Additions Valmont City Park Phase I C 150,000 150,000 Subtotal 150,000 150,000 New Construction - Not Growth Related Elks Neighborhood Park C 500,000 500,000 600,000 1,600,000 Subtotal 500,000 500,000 600,000 1,600,000 ota 685,000 575,00 675,000 500,0001 500,000 3,135,000 , AGENDA ITEM # V111 -f o PAGE. Attachment C Recommended Lottery Fund (Fund 111) 2011-2016 Capital Improvement Program Project Summary Sheet 2011 2012 2013 2014 2015 2016 Priority Recommended Projected Projected Projected Projected Projected Total Exisitin Facility Rehab/Repair/Deficiency Correction Playground and Irrigation System Renovation P&R C 300,000 300,000 300,000 300,000 300,000 300,000 1,800,000 Subtotal 300,000 300,000 300,000 300,000 300,000 300,000 1,800,000 On-Going Projects Tributary Greenwa s Program (PVV) 150,000 150,000 150,000 150,000 150,000 150,000 900,000 Historical Structures & Trails Stabilization & Restoration OSMP 475,000 475,000 475, 000 475,000 475,000 475,000 2,850,000 Subtotal 625,000 625,000 625,000 625,000 625,000 625,000 3,750,000 Total 926,0001 2 ,000 925,000 925, 00 925,000 925,000 ,550, AGENDA ITEM # V111- , PAGE 2- Attachment D Parks and Recreation Unfunded Capital Projects Boulder Reservoir Entryway E $1,000,000 Boulder Reservoir Facility Improvements E, R TBD Coot Lake Dock Replacement S $60,000 EBCC: Lockerroom upgrades R $150,000 Flatirons Event Center Replacement R $8,000,000 Flatirons Golf Course Pla abili Enhancements R $740,000 Lyons to Boulder Trail E, S TBD Municipal Complex Implementation E, S TBD Parkin Lot Improvements (system-wide) S TBD Park Operations Building Land Purchase - Yards MP E $2,000,000 Park Operations Building Construction - Yards MP E $1,200,000 Pearl Street Mall Improvements E, R TBD Pleasant View Parkin Lot S $450,000 Recreation Center Major Renovations E, R TBD Scott Carpenter Pool Replacement E, R TBD Transit Village Planning C TBD Turf Improvements (satellite fields system-wide) E TBD AGENDA ITEM # Vl' I I , PAGE