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CIAC Annual ReportMarch 19, 2015 To: Robert Garza, City Manager Cc: Ken Miyagishima, Mayor and City Council From: Lonnie Hamilton, Chairman and Capital Improvement Advisory Committee Subject: CIAC 2014 Annual Report Attached to this report is a chronological summary of the twelve monthly meetings (five were subsequently cancelled) held by the Capital Improvement Advisory Committee (CIAC), Below is a summary of the CIAO activities for 2014. To recap, the major activity of the CIAC in 2014 was to periodically review the status of projects funded by various impact fees for the following areas: Public Safety, Utilities, and Parks and Recreation. A periodic review was made of the impact fee collections and any unplanned occurrences were identified. The December 2013 meeting focused on the Committee's duties going forward in 2014, related to monitoring the City Capital Improvement Program (CIP). The meeting was attended by all infrastructure Departments including: Fire, Police, Public Works, Utilities, Parks and Recreation, and Legal. Chairman Hamilton set forth a preliminary outline of the Committee's 2014 process. He indicated that he thought every quarter the Departments would report on the progress of their CIP, including the status of the impact fee account. The discussion then focused on the breadth of the Committee responsibilities under the law. The City's Legal Department (Legal) (Ms. M. Driggers) affirmed that the Committee can and should be reviewing capital projects BUT ONLY those that are funded by development impact fees. Thus Roads and Drainage are not under the Committee province, because they do not use impact fees at this time. It was pointed out that if a project had received impact fees in the past, it was reviewable by the Committee, even if there were no fee system presently in place. It was agreed to proceed under the guidelines given by Legal. Each month a different service area would present, though as the builders, only Public Works or the Utilities Department may be making the report, unless Police, Fire, or Parks want to support those agencies who build their projects. Further discussions concerned coordination of information ---it was clear from the various units, that the information being requested by the Committee already existed through some coordination between the programming Department and the building Department - may be required. The information to be provided to the Committee on a one-time basis is the last consulting report prepared for each affected Department as a starting point. With the consulting report there should be a recap of the progress to date since that report had been published. It was requested, that the first presentation would be Police and Fire's projects in January 2014. Page 1 of 7 During 2014, the Chairman, with support of the Committee members, and affected Departments, decided that there was no need to have constant updates of material that largely remained unchanged. It was also pointed out early on that there would be no new impact fee considerations brought before the Committee before late 2014 for Public Safety. It was decided that the Committee meeting would be suspend from April through July and subsequently December. In conjunction with these discussions a uniform timeline that laid out a uniform process for reviewing impact fees was developed by the Departments' and then reviewed by the Committee. This was a month by month plan that included review of all Departmental projects in the first and third quarters of the year. These reviews were incorporated into the uniform timeline for processing impact fee requests. Next fee proposal will be from Public Safety to be approved no later than August 1, 201 B. Sincerely, Lonnie Hamilton, Chairman Capital Improvements Advisory Committee Attachments Page 2 of 7 Capital Improvements Advisory Committee 2014 Annual Report to the City Council —Month by Month Meeting of January 16, 2014: In 2014, Public Safety was the first topic to be discussed, which was presented by Mr. Eric Martin. Mr. Martin indicated that per the direction of Chairman Hamilton, he and other Departments are working to bring some order to the process. He indicated that each month a different Department would present the status of past and present projects and a status of the particular impact fee account. Mr. Martin stated that the main project they were working on in Public Safety was the East Mesa Campus project. He provided details as to its status and handled several questions from the Committee. A review of the impact fees was made, which raised several questions, as to the lack of expenditures of those fees. It was pointed out by Chief Brown that collections only started in 2011 and there was plenty of time to deal with the expenditure issue regarding impact fee expenditure requirement. Meeting of February 21, 2014: The Committee retained Lonnie Hamilton as Chairman and Eugene Suttmiller as Vice Chairman. Committee member R. Johnson is to do the Annual Report. For 2014 Chairman Hamilton indicated that the Committee would proceed under the guidelines the Legal Department (Legal) provided in 2013 regarding what the committee had authority to review. He stated that each month a different service area would be presenting, though as the builders only Public Works or the Utilities Department may be making the report unless Police, Fire, or Parks want to support those agencies. January was Public Safety, February is Parks, and March is Utilities. He further clarified that the Committee has authority to only review those projects funded by impact fees. For this meeting the Committee received a general update on Parks and Recreation and a status of the impact collections from Mr. Eric Martin. Mr. Martin reviewed the impact fees collections and the variations that have occurred month by month in detail. There were no questions at this point. Next: Utilities —Water and Wastewater Meeting of March 20, 2014: The Committee approved the 2013 Annual Report presented to them by Chairman Hamilton, which will subsequently be forwarded to the City Manager. ❑r. Garcia and Carl Clark provided an update of utilities projects currently under construction and planned for 2014. A status of impact fees collection was provided as well as a comparison of the 2013 collections. Questions by the Committee members were raised regarding the apparent 2014 decline in revenues and greater detail was provided to the Committee by Utilities. Page 3 of 7 Chairman Hamilton indicated it was his understanding that there would not be a new impact fee proposal coming before the Board in 2014. The Departments agreed. Upon that understanding Chairman Hamilton and the Committee members approved taking a moratorium on Committee meetings after the March meeting (unless an emergency arises). No objections were heard, thus the April meeting was cancelled. Next month: Public Safety. Meeting of April 21, 2014: The meeting was cancelled upon unanimous vote of the Committee. Meeting of May 15, 2014: The meeting was cancelled upon unanimous vote of the Committee. Meeting of June 19, 2014: The meeting was cancelled upon unanimous vote of the Committee. Meeting of July 17, 2014: The meeting was cancelled upon unanimous vote of the Committee. Meeting of August 21, 2014: Eric Martin presented on the Parks and Recreation projects and the status of the impact fee funds. He covered projects under construction in 2013 and those proposed for construction in 2014. Committee members asked several questions regarding PIF funding balances and in response, Mr. Martin provided several spreadsheets regarding the PIF collections. He indicated at this point all PIF funds were in a single account. A request was made to see past years to check historical trends —the material was to be provided through the Chairman. Mr. Martin continued by providing a Public Safety update regarding the East Mesa Public Safety Campus. He reported that the building was to be 36,000 square feet and two story; presently they are working with the architect to finalize all plans, layouts, and landscaping (including roadways). He also stated that they are looking to buy all of the BI_M land totaling 350 acres for future public and perhaps private development. Total project costs are estimated at $13.4 million. Most of the funding will come from bonding with impact fee funds earmarked for equipment and miscellaneous eligible expenses. The Committee members asked various questions ranging from citizen input, color layout, sustainability, staffing, completion time line, fiber optics, bid process, etc. Page 4 of 7 The Departments stated, that they have agreed to put together a step by step process for the review of impact fee proposals —it was stressed that this is timely given the Committee's continued request for early input and the fact that the Public Safety impact fee review will be up for 2015. All agreed that Public Works would spearhead the effort, and that Public Safety would discuss efforts next month. The Committee also discussed the need to help the Departments identify alternate funding if allowed within the Committee's legal province. Next month: Utilities Meeting September 18, 2014: Mr. Carl Clark provided a detailed report on past Utilities projects funded with impact fees and a summary report of the 2014 projects. These reports covered the Jacob Hands Treatment Facility projects, East Mesa Water Reclamation project, and University Lift Station rehabilitation to name only a few of the efforts. More than 15 projects were discussed at the meeting. An in-depth discussion was held regarding the complexity or several water projects that are tied to roadway improvements. In all cases the City Utilities had to get in first and this frequently involved work that had not been budgeted for but had to be done. Dr. Garcia reviewed the new impact fee levels that the Committee had approved last year. He indicated that the fees were largely those approved by this Committee though phased in by the Utilities Board. The initial phase began in January 2014 and second phase will be implemented in January of 2016. ❑r. Garcia provided new estimates for fee collections based on the Utilities Board approval. Dr. Garcia thanked the Committee for their input/work on developing the new impact fee schedules. Next Month: Public Safety Impact Fee Timetable Meeting of October 16, 2014: The October meeting spent the bulk of its time discussing the creation of a City-wide process for the review of all future proposed impact fees. Chief Brown presented for all Departments, because it was his agency that would be looking at the next impact fee adjustment. He pointed out that the Land Use Assumption Plan and associated fees must be reviewed by Council every 5 years —the Public Safety deadline is August 1, 2016, followed by Parks in June 2018. ❑r. Garcia indicated that in 2016 there will be a need to review the implementation of the Phase II fees. Chief Brown stated that the approval of a new impact fees can take up to 18 months. It is hoped that a standardizedluniform process can improve the matter at hand. Chief Brown presented material outlining the Duties/Responsibilities of the various agencies. He indicated, that in the past there appeared to be no real order, in which items Page 5 of 7 were presented to the Committee. He made it clear that the construction departments take the lead on reporting on all projects, with the service departments supporting them. He indicated, that in terms of the Impact Fee process, there were various agencies involved as things proceed. For example, Public Works will handle the RFP, and then Community Development the Land Use Assumptions and then the client Department steps in and develops the actual Plan and subsequent impact fee proposals. This will be the general process for all impact fee processes regardless of the Department involved. Chief Brown indicated that this is only an outline — much tweaking still has to occur and exceptions can occur as things proceed. Next Chief Brown presented and outline of the topics to be discussed before the CIAC. This process begins with the review of History, Laws etc. and ends with presentation of the Impact Fee proposal. A discussion was held on each of the topics listed by Chief Brown. Chief Brown stated that the next step in the process was to develop a time template/timeline for the topics of work previously discussed with a goal to meet the August 2016 deadline. Chief Brown submitted a timeline for Committee review and after much discussion, Committee member M. Bower provided an amended, simplified timeline that Chief Brown agreed to take back to the Departments for review. Chairman Hamilton said that any timeline prepared for Public Safety impact fee review MUST also incorporate the Committee's need to review the various projects of each Department and fee collections in the first and third quarters of the year. This on -going business must not be overlooked, for it is a critical Committee responsibility. Chief Brown agreed to incorporate those reviews into his 2015/2016 schedule. Several Committee members requested that there be a year-end review of the CIAC activities and Annual Report with the City Manager to assure that the Committee is providing the services anticipated by its Office. Next Meeting: Continued review of the Public Safety Impact Fee process Meeting of November 20, 2014: Chief Brown made a presentation regarding Public Safety projects. This largely entailed a review of the East Mesa project. He reported that the plans were 95% complete, zoning approved and they expect to be bidding the project in February/March. The construction period is expected to be 16 months. Design of the building was presented and discussion ensued regarding LEED provisions, Neighborhood impact, new roadways, color schema, etc. He reported on City Council approval for a new fire engine for East Mesa and for Station #7 (not an impact fee project). Chief Brown presented a revised timeline based on the sketch Mr. Bower provided at previous month's meeting. Chairman Hamilton indicated the Committee regular review of Departmental projects must be shown for the first and third quarters. Chairman Hamilton Page 6 of 7 assured all parties that the Committee would meet whenever the Departments requested such a meeting, but saw no reason to meet if there was no pending business —meeting in first and third quarters will be standard. Going with the Public Safety Fee process, it was proposed that Legal's review/questions will be handled in January and in February the History of Public Safety Impact Fees and Land Use Assumptions as well as a review of previous plan and analysis of the projections of the consultant presented in the early plan. Chief Brown indicated that for this period, he did not think the collections matched the consultant's projections very closely. Committee members repeated desire to meet with the City Manager. Meeting of December 18, 2014: The meeting was cancelled upon unanimous vote of the Board. Page 7 of 7