City of Falls Church 1

Meeting Date:

05-26-20

Title: (TO20-06) ORDINANCE FIXING AND

DETERMINING THE FY2021-FY2026

CAPITAL IMPROVEMENTS PROGRAM

BUDGET AND APPROPRIATING

EXPENDITURE AND REVENUE FUNDS FOR

THE FISCAL YEAR 2021 AND

REPROGRAMMING OF PREVIOUSLY

APPROPRIATED FUNDS

Agenda No.:

6(b)(1)

Proposed Motion: Move to grant first reading to (TO20-06), schedule public hearings

for June 8 and June 22, schedule second reading and final consideration for June 22,

and advertise the same according to law.

Originating Dept. Head:

Cindy Mester, Deputy City Manager

703.248.5042

CLM -5-21-2020

Disposition by Council:

City Manager:

Wyatt Shields

703.248.5004

FWS 5-21-2020

City Attorney:

Carol W. McCoskrie

703.248.5010

CWM 5-21-2020

CFO:

Kiran Bawa

703.248.5092

KB 5-21-2020

City Clerk :

Celeste Heath

703.248.5014

CH 052120

REQUEST: Council is requested to grant first reading to the FY2021- 2026 Capital 2

Improvements Program (CIP), for General, School, Transportation and Utility Funds. 3

The CIP Ordinance includes FY2021 CIP appropriations, as well as reprogramming 4

previously appropriated funds. Final consideration of the CIP is scheduled for June 22, 5

2020. 6

7

RECOMMENDATION: 8

Staff Process Recommendation: Staff recommends granting first reading to (TO20-06) 9

on May 26, 2020 and scheduling public hearings for June 8 and June 22, scheduling 10

second reading and final consideration for June 22, and advertising the same according 11

to law. 12

13

City Manager CIP Recommendation: 14

City Manager’s FY2021-2026 recommended CIP is consistent with the Commission’s 15

recommendation, but with the following modifications to address COVID-19 related 16

funding impact and Council direction on specific projects as listed below: 17

18

1) $180,000in the Sidewalks and Streetlight Project to accelerate the streetlight LED 19

conversion. This project uses NVTA 30% funds. The purpose of the project is to 20

lower electrical bills and reduce the City’s carbon footprint; 21

2) $100,000 for Neighborhood Traffic Calming (NTC); using NVTA 30% funds. 22

3) Reduction in Facility Reinvestment funding to $125,000 from the original 23

$300,000; 24

4) Implementation of rate study has been delayed for Stormwater and Sanitary Sewer 25

utility funds due to the economic hardship that our rate payers are experiencing 26

due to COVID 19 pandemic. 27

5) Debt will be issued for the General Fund CIP projects only after a review of the City’s 28 revenues in fall 2020, to evaluate the extent of economic fallout from the COVID19 29 pandemic. A separate debt issuance resolution will be brought to council for action at that 30 time. 31

32

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Planning Commission: The Planning Commission (Commission) voted on February 18, 33

2020, to recommend approval of the CIP for inclusion in the City Manager’s FY2021 34

proposed operating budget and six-year Capital Improvements Program. 35

36

The Commission conducted public hearings on February 3 and 18, 2020. Additionally, 37

held work session on February 3, 2020, which provided the Commission the 38

opportunity to review the details of all projects proposed under the General, School, 39

Transportation, Stormwater, and Sewer Funds. The Planning Commission discussed 40

the six-year capital needs, the Pay As You Go funding constraints, local match for 41

transportation grants, stormwater/ green infrastructure, staffing needs and the need to 42

retain the long view of regular reinvestment. Additionally, the Commission reviewed 43

current CIP project status on January 21, 2020. 44

45

The Commission ultimately requested no changes to the six-year CIP as presented on 46

February 3 and 18, 2020 and approved the proposed FY2021 – 2026 CIP for Council’s 47

consideration. The Planning Commission reviewed the full CIP included the utilities as 48

well. 49

50

The specific Commission-adopted motion is provided below and was passed 51

unanimously on a roll call vote: 52

53 I move that the Planning Commission recommend that the City Council approve, pursuant 54 to Section 6.19 of the City Charter and Section 17.08 of the City Code, the FY2021-2026 55 Capital Improvements Program (CIP) as presented on February 3 and 18, 2020, as 56 summarized on CIP notebook pages 3-1, 3-2, 3-3, 3-4, 3-5, 3-6 and 3-7 based on the 57 following justifications and caveats: 58

1. The CIP is consistent with the adopted Comprehensive, Small Area and Master 59 Plans; 60

2. The CIP approaches the citywide capital infrastructure and reinvestment needs in 61 a holistic manner; 62

3. The CIP is enhanced through purposely planned and balanced reinvestment 63 needs, funding options and staff resources; 64

4. The CIP is fiscally responsive and compliant with adopted financial policies; 65 5. The CIP addresses long-term dedicated and sustainable funding for Pay As You 66

Go local funding for facility reinvestment and other capital needs to provide for 67 fiscal balance of cash and debt financing; 68

6. The CIP provides sufficient match funding to leverage grants to address 69 significant transportation needs; 70

7. Green infrastructure can reduce capital cost of stormwater infrastructure and we 71 are concerned about imprudent allocation of capital to stormwater projects in the 72 absence of a green infrastructure plan. Funding the FY2021-2026 Stormwater 73 CIP Projects must integrate the accelerated development of Green Infrastructure 74 Policy and Implementation Plan as part of the updated Watershed Management 75 Plan efforts; 76

8. Concurrent with the FY22-27 CIP development, the Comprehensive Plan 77 recommendations, such as Watershed Management Plan Update, Citywide 78 Green Infrastructure Policy and Implementation Plan, Green Procurement, 79 Infrastructure Master Plans, should be completed; 80

9. Concur with staff recommendation for streetlight fixture type and locations 81 consistent with adopted streetscape guidelines, POAs and engineering technical 82 standards as presented in Tab 8, page 8-15a; and 83

10. Should adequately ensure staffing for delivery of projects, as planned, including 84 administrative and procurement functions. 85

86

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BACKGROUND: The Council is required annually to adopt a multi-year Capital 87

Improvements Program (CIP) for the City. The development of the CIP allows the City 88

to take the vision for development of public facilities through a disciplined evaluation 89

process. By identifying projects and capital needs several years into the future, the 90

following objectives are accomplished: 91

92

Cost estimates for long-term objectives and identified needs are linked to 93

available resources, and placed on a schedule for implementation; 94

Major expenditures are scheduled in the context of a balanced Annual Operating 95

Budget and a six-year financial forecast. 96 97 Capital projects are defined as new, one-time projects with a useful life of more than six 98

years, and costing $150,000 or more. The cost estimates included in the CIP are 99

intended to capture the entire estimated project cost, including, as applicable, land 100

acquisition, design, negotiated agreements, and construction. The total request for each 101

project is evaluated and, based upon funding, is prioritized to meet the needs of the 102

City. 103

104

The projects contained in the CIP support the goals and objectives outlined in the City's 105

Comprehensive Plan, are intended to establish the long-term spending priorities 106

identified by the City Council, and are consistent with their 2025 Vision/ 107

Comprehensive Plan/Strategic Plan as well as adopted Financial Polices. The CIP is 108

updated annually and is subject to change with each update. 109

The March 9, 2020 City Manager’s FY2021-2026 proposed CIP is consistent with the 110

Commission’s recommendation with the exceptions as noted above at lines 67-76. The 111

Stormwater and Sanitary Sewer CIP components will be provided separately once the 112

Stormwater Taskforce recommendations as well as the rate studies are complete. 113

114

Key FY2021 projects include: 115

116

Fire Station: $550,000, debt financed, for 10 bi-fold apparatus door replacements. 117

118

Facility Reinvestment: $125,000, PAUG funded, to replace or rehabilitate deteriorating 119

components and systems to extend facility life. Identified top priority projects include: 120

Aurora House: stair replacement, commercial kitchen equipment replacement 121

and roof replacement; 122

Cherry Hill Farmhouse: basement repairs, structural support replacement and 123

HVAC/Humidity equipment replacement; and 124

Property Yard: boiler, boiler vent structural repairs, safety glass at shop doors, 125

loading dock ramp structural repairs, garage door replacement and security 126

equipment. 127

128

Parks: $150,000 for ongoing Park Master Plan projects, such as trails and playground 129

equipment. The CIP also includes planning for Fellows Property park improvements 130

($200,000), for the recently two-acre property purchased by the City on South Oak 131

Street. Also in partnership with the School Board, the City Recreation and Parks 132

Department is contributing half the cost to install lights at the new practice field on the 133

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George Mason High School campus, as it will be used for both school and recreation 134

purposes ($150,000). 135

136

Transportation: $7.3 million in transportation projects are funded through state and 137

federal grants in the FY2021 CIP. Notable FY2021 projects include: Neighborhood 138

Traffic Calming ($100,000), sidewalk and LED streetlight conversions ($180,000), 139

traffic signal and intersection improvements, and City contributions to WMATA capital 140

improvements. 141

142

143

COVID-19 Impacts 144 General and Transportation Funds 145

The FY2021-2026 CIP was not presented to Council concurrent with the FY21 146

Operating Budget in order to further assess the economic impacts of COVID-19 on 147

PAUG funding, NVTA 30% revenue projections, state FY21 budget amendment impact 148

on transportation funding as well as applicability of federal transit relief-funding 149

allocations. Due to projected revenue losses PAUG funding for Facility Reinvestment 150

Project was reduced by $175K and all General Fund debt issuance will be suspended 151

until an October 2020 revenue review. The specific delayed debt funded projects 152

include: 153

1) Fire Station 6 Reinvestment (10 bay doors) 154

2) Fellows property Parkland Master Plan implementation 155

3) Park Master Plan implementation 156

4) George Mason High School Practice Field Lights 157

Allocation of WMATA federal CARES Act transit relief funding in FY21, in the 158

amount of $385K, has offset the projected NVTA 30% funding shortfall as well as 159

retaining funding for Neighborhood Traffic Calming (NTC) and Sidewalk 160

Improvements/Streetlights. 161

162

Sanitary Sewer Fund 163

Earlier this year rate studies were conducted for both the Sanitary Sewer and Stormwater 164

Funds. Rate increases were anticipated due to significant capital projects that are being 165

contemplated for both funds. However, the FY21 Operating budget does not include any 166

rate increases in order to avoid exacerbating the economic stress that City utility rate 167

payers are experiencing during the current pandemic. 168

It is anticipated that additional capacity in our sanitary sewer pipes and the Alexandria 169

Renew treatment plant is needed to accommodate development in the West Falls Church 170

planning area. Planning for these capacity upgrades will proceed in this proposed 171

FY2021 CIP. 172

173

Stormwater Fund 174

The Stormwater Fund has capital infrastructure needs to help reduce flooding in the City. 175

The Stormwater Task Force provided its recommendations for major stormwater projects 176

this past March. The debt financing for these larger projects recommended by the Task 177

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Force, and the associated rate increases to finance that debt, is suspended until October 178

2020. At that time, the economic picture may be clearer and the City Council can reassess 179

the timing for debt financing these projects. 180

181

The Sanitary Sewer or Stormwater CIP projects that were approved by the Planning 182

Commission in February 2020 remain in this proposed CIP. However, implementation 183

will be on hold until further action by City Council to approve debt issuance and raise 184

fees to pay for the new debt service. 185

186

Staff are assessing available funding for projects that could be done in the near term 187

using storm water fund balance (see below chart). Once this analysis is complete, a 188

budget amendment will be brought to Council for consideration. 189

190

191 192

Transfer of Local Funding between Transportation Programs 193

194 The CIP Ordinance transfers a prior appropriation of $475K local funding from the S. 195

Maple Roadbed Reconstruction Project to the S. Maple/S. Washington Pedestrian and 196

Intersection Improvements Project. Public Works engineers determined that S. Maple 197

does not require roadbed reconstruction when it was repaved last spring, therefore the 198

Revenue Sharing grant expenditure is not needed. 199

200

Simultaneously, the S. Maple/S. Washington project’s construction estimates came in 201

higher than the available funds due to utility conflicts and construction cost escalation. 202

It is recommended that the already appropriated grant match, $475K, be transferred 203

from the S. Maple Roadbed Reconstruction Project to the S. Maple/S. Washington 204

Pedestrian and Intersection Improvements Project. The availability of these funds will 205

allow for future grant matching activities, prevent the loss of additional grant funding, 206

and permit a critical intersection pedestrian safety project to proceed. 207

208

209

FISCAL IMPACT: Adoption of this ordinance will establish the Capital 210

Improvements Program for the Fiscal Years 2021-2026 and set the FY2021 211

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appropriations for July 1, 2020 through June 30, 2021. Funding sources of Pay As You 212

Go (PAUG) have been included in the FY2021 proposed operating budget ordinance 213

(TO20-05). Debt issuance for any FY21 CIP projects is suspended until October 2020. 214

215

TIMING: Within the City Charter required 28 days from the adoption of the COVID-216

19 revised FY2021 Operating Budget (TO20-05) on May 26, 2020 with effective date 217

of July 1, 2020. By charter, the CIP is to be adopted within 28 days after budget 218

adoption or by the Council regular meeting of June 22, 2020. 219

220

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(TO20-06) 221

222

ORDINANCE FIXING AND DETERMINING THE FY2021-FY2026 223

CAPITAL IMPROVEMENTS PROGRAM BUDGET AND 224

APPROPRIATING EXPENDITURE AND REVENUE FUNDS FOR 225

THE FISCAL YEAR 2021 AND REPROGRAMMING OF 226

PREVIOUSLY APPROPRIATED FUNDS 227

228

THE CITY OF FALLS CHURCH HEREBY ORDAINS THAT: Funding for the 229

Capital Improvements Program (‘CIP”) for FY2021, as set forth in the CIP below, is 230

hereby fixed, determined, and appropriated, and the Capital Improvements Program for 231

FY2021 through FY2026 is hereby adopted, as set forth below. Reprogramming of 232

previously appropriated funds is also hereby adopted as set forth below. The adoption 233

of the CIP by the City Council signifies the Council's identification of priorities for 234

capital spending over a six-year period. Bond funding and execution of multiple year 235

projects shall be based on the projected CIP for all six years. 236

237

THE CITY OF FALLS CHURCH FURTHER ORDAINS THAT projects to be 238

financed with debt shall be placed on hold until such a time as the City Council 239

authorizes the issuance of debt by City Resolution. 240

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CITY OF FALLS CHURCH 241

CAPITAL IMPROVEMENTS PROGRAM 242

243

GENERAL GOVERNMENT AND SCHOOL BOARD 244

245 246

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SPECIAL TRANSPORTATION FUND 247 248

249

(TO20-06)

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Reprogramming of Previously Appropriated Funds 250

251

From Amount To Amount

Infrastructure Renewal:

Pavement Program

$475,000 South Washington POA

Program

$475,000

Total $475,000 Total $475,000

252

SANITARY SEWER FUND 253 254

255 256

257

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STORMWATER UTILITY FUND 258 259

260 261

1st Reading: ______ 262

2nd Reading: 263

Adoption: 264

(TO20-06) 265