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Agenda Item - 2021-10-19 - Number 4. - Public Comment - Jeff Gudman From: Jeff Gudman To: Linder,Kari Subject: Infrastructure Date: Tuesday,October 19,2021 5:25:26 PM Attachments: 2021 Financial Overview.docx Good afternoon Kari, Nice to see you this afternoon., Per our conversation, attached is the document that was passed out today. Be well. Jeff Lake Oswego Capital Improvement Program Infrastructure Looking Back — Looking Forward Jeff Gudman October 2021 Take Aways 2021 —2023 Capital Improvement Plan provides better quality data compared to 10 years ago. City has funded all large capital equipment projects and keeping unfunded projects at $0. Bridges replacement can be funded without new fees. Water and wastewater have increased their funded percentages and have sufficient resources to address their needs in the decade to come. Surface water has increased their funded percent and combined with American Recovery Plan Act (ARPA) are likely to have sufficient surface water resources to address their needs in the decade to come. Current budget is a shift away from capital expenditures to programming. With exception of Library replacement and the future of the South Shore fire station, facilities have been addressed. Road maintenance has dollars for existing roads. Pathways, bicycle and pedestrian bikeways do not have dollars for maintaining existing pathways, bicycle and pedestrian. Narrow and deep is a more effective use of dollars over the decade(s). "One dig"policy is effective and efficient. Over the next decade or less, getting roads PCI to the mid 80's can free up approximately $2,000,000 per year for surface water or pathways. Over the next 10— 15 years unfunded capital projects can be funded by"3 and 3"and let it be. A 3% increase in property taxes and 3% in overall utility bill is sufficient. Capital Improvement Program Funded/Unfunded Status Through the Years Excluding LOIS and LOTWP Dollars Per Cent 2013/2014 Funded $ 47,319,000 10% Unfunded $418,919,000 90% 2014/2015 Funded $ 65,057,000 20% Unfunded $255,669,000 80% 2015/2016 Funded $ 61,828,000 15% Unfunded $356,173,000 85% 2016/2017 Funded $ 68,504,000 16% Unfunded $364,063,000 84% 2017/2018 Funded $127,465,000 23% Unfunded $424,760,000 77% 2018/2019 Funded $110,405,700 21% Unfunded $422,260,000 79% 2019/2021 Funded $207,157,205 37% Unfunded $356,278,000 63% 2021/2023 Funded $147,432,000 29% Unfunded $369,701,000 71% Lake Oswego FTE's Per 1,000 Residents FTE's ACTUAL PER 1,000 YEAR FTE's RESIDENTS RESIDENTS 2021/23 (2 year) 358.8 39,480 9.1 2019/21 (2 year) 346.7 38,705 9.0 2018/19 345.3 38,215 9.0 2017/18 344.3 37,497 9.2 2016/17 344.8 37,430 9.2 2015/16 347.3 37,300 9.3 2014/15 350.1 36,990 9.5 2013/14 352.1 36.770 9.6 2012/13 362.5 36,725 9.9 2011/12 354.5 36,845 9.6 2010/11 355.8 36,755 9.7 2009/10 357.4 36,698 9.7 2007/09 (2 year) 345.4 36,345 9.5 2005/07 (2 year) 337.2 36,075 9.3 2003/05 (2 year) 336.8 35,860 9.4 2002/03 333.0 35,750 9.3 2001/02 336.1 35,580 9.4 2000/01 338.3 35,415 9.6 1999/2000 336.1 34,280 9.8 1998/99 331.7 34,065 9.7 1997/98 325.6 34,021 9.6 1996/97 322.4 34,005 9.5 1995/96 316.8 33,145 9.6 1994/95 301.3 32,940 9.1 1993/94 294.0 32,555 9.0 1992/93 279.1 31,885 8.8 1991/92 272.6 31,545 8.6 1990/91 276.7 30.800 9.0 1989/90 269.6 29,425 9.2 1988/89 258.8 28,360 9.1 1987/88 253.5 26,985 9.4 1986/87 253.2 26,035 9.7 Parks/Open Space 2013 — 2014 Funded $ 1,233,000 15% 2013 — 2014 Unfunded $ 7,077,000 85% 2013 — 2014 Total $ 8,310,000 100% Funded — George Rogers bathroom and storage replacement ($530,000) and Pilkington Park restrooms ($183,000 are the two highest dollar projects. Unfunded - George Rogers Park-Ladd Street Phases 5 & 6 ($2,730,000) and Tryon Creek Pedestrian Bridge ($1,800,000) are the two highest dollar projects 2021 — 2023 Funded $40,200,000 67% 2021 — 2023 Unfunded $20,056,000 33% 2021 — 2023 Total $60,256,000 100% Funded — Recreation/Aquatics Center ($29,000,000) and Rassekh Park development ($4,800,000) are the highest dollar projects. Unfunded - Land Acquisition ($3,000,000), Bryant Woods/Canal Acres/River Run 1 & 2 ($2,700,000), Neighborhood Parks ($2,600,000), Tryon Cove Park ($2,000,000), Luscher Environmental Classroom ($1,500,000) and Luscher Urban Agriculture Expansion ($1,500,000) are the highest dollar projects. Transportation/Roads 2013 — 2014 Funded $ 24,882,000 33% 2013 — 2014 Unfunded $ 50,552,000 67% 2013 — 2014 Total $ 75,434,000 100% Funded — Boones Ferry Road Phase 1 ($12,864,000) and Kerr Parkway rehabilitation ($2,425,000) are the highest dollar projects. Unfunded - Citywide pavement preservation ($14,616,000), Tryon Creek Bridge & Culvert replacement ($12,000,000), Boones Ferry Road—Phase 2 ($9,000,000) and Lakeview Boulevard street and drainage improvements ($3,049,000) are the highest dollar projects. 2021 — 2023 Funded $23,184,000 63% 2021 — 2023 Unfunded $13,707,000 37% 2021 — 2023 Total $36,891,000 100% Funded — Annual Pavement Management ($6,200,000), Lakeview Blvd street and drainage improvements ($6,100,000) and city wide annual paving 22/23 ($5,500,000) are the highest dollar projects. Unfunded - Meadows Road Pavement Rehabilitation ($5,628,000) and First Addition Roadway and Drainage improvements — Group 2 ($3,486,000) are the highest dollar projects. No unfunded dollars listed for pavement preservation. Pavement Condition Index (PCI) Comparisons Actual Results Every Three Years PCI's of mid 80's provide for "reduced" expenditures on an ongoing basis City PCI Tualatin 84 Hillsboro 83 Wilsonville 82 Tigard 79 Beaverton 77 Oregon City 77 Lake Oswego (2021 estimate) 73 West Linn 72 Lake Oswego actual (2019) 69 Portland (aspires to) 55 Dollars Needed to Get PCI to Mid 80's March 2010 Dollars Needed $48 million Dollars Funded $12 million Net Needed $36 million August 2013 Dollars Needed $84 million Dollars Funded $20 million Net Needed $64 million November 2016 Dollars Needed $80 million Dollars Funded $19 million Net Needed $61 million November 2019 Dollars Needed $60 million Dollars Funded * $30 million Net Needed $30 million *Did not include Vehicle Registration Fee ($3.5 million over 5 years) and Franchise Fee Equalization ($3.5 million over 5 years) — Total $7 million. *Did not include "safety margin" from the 2017 Oregon Transportation securitized gas taxes. Roadway Improvements (Other Infrastructure Improvements) 2013 — 2014 Funded $ 0 0% 2013 — 2014 Unfunded $ 0 0% 2013 — 2014 Total $ 0 0% Did not exist as a separate category in 2013/2014 2021 — 2023 Funded $ 2,050,000 2% 2021 — 2023 Unfunded $92,965,000 98% 2021 — 2023 Total $95,015,000 100% Funded — Boones Ferry Road Phase 1 is the only funded project. Unfunded - Boones Ferry Road improvements Phase 2 ($26,500,000), Lake Grove public parking ($9,210,000), Inverurie Road Upgrade ($6,350,000), Lake Forest Blvd upgrade via Washington Ct. to Carman Drive ($4,529,000), B Avenue Phase 1 —Foothills ($3,997,000), Foothills Road Phase 1: A to B Avenue ($3,636,000), B Avenue Improvements - 2nd to 5th ($3,390,000) and Lakeview B1vd/65th Avenue/McEwan Road Improvement ($3,100,000) are the highest dollar projects. Boones Ferry Road Phase 2 improvements do not need American Rescue Plan Act (ARPA) dollars to move forward. Increasing the debt capacity of the urban renewal district is more effective use of dollars. Bridges 2013 — 2014 Funded $ 0 0% 2013 — 2014 Unfunded $50,000,000 100% 2013 — 2014 Total $50,000,000 100% Estimate prior to receiving 2015 evaluation report. 2021 — 2023 Funded $ 0 0% 2021 — 2023 Unfunded $24,133,000 100% 2021 — 2023 Total $24,133,000 100% Springbrook Creek at Summit Drive ($10,112,000) and Oswego Canal Bridge at Bryant Road ($3,920,000) are the highest dollar projects. Six bridges need replacement. Can be funded over the 10 — 15 years with American Rescue Plan Act (ARPA) funding and the dollars from the dissolution of the downtown urban renewal district in 2027. Foothills Infrastructure Key Points The Foothills Plan adopted in 2011 is still in place. It was the Foothills urban renewal district that was disbanded. The existing downtown urban renewal district can be disbanded in 2027 when the last of the debt is paid. By 2027 the Tryon Creek wastewater plant will be completed. The city will have a better idea of how much land will be available and for what possible use(s). Immediately after the downtown urban renewal district is disbanded (as in the same day) a new Foothills urban renewal district can be created with somewhat different boundaries than originally envisioned for Foothills, but reflecting the dissolution of the downtown urban renewal district. The infrastructure focus should be the northern portion of the Foothills area. Infrastructure projects in the Foothills district should be updated to reflect the removal of the streetcar and the associated streetcar infrastructure projects. It took 6 years for the current downtown district and 8 years for the Boones Ferry/Lake Grove urban renewal district to begin making debt payments. Incremental property taxes could be approximately $1.5 million a year in 6 years depending on what assumptions are made. That will support $24 million in debt (infrastructure) over 25 years at 4%. Intersections 2013 — 2014 Funded $295,000 67% 2013 — 2014 Unfunded $145,000 33% 2013 — 2014 Total $440,000 100% Funded projects are small dollar projects. Unfunded project is 6 Corner intersection alignment. Unfunded — 1 project — 6 Corner intersection alignment improvements. 2021 — 2023 Funded $ 1,098,000 8% 2021 — 2023 Unfunded $12,658,000 92% 2021 — 2023 Total $13,756,000 100% Funded — Only Jean/Pilkington Intersection. Unfunded - Goodall Road/Country Club/Upland Drive signal installation ($3,647,000), Carman Drive/Bonita Road/Waluga Drive signal installation ($2,327,000), Boones Ferry Road/Knaus Road signal installation ($1,392,000) and Stafford Rd/Bergis Road signal installation ($1,304,000) are the highest dollar projects. New Pathways 2013 — 2014 Funded $ 2,562,000 12% 2013 — 2014 Unfunded $19,244,000 88% 2013 — 2014 Total $21,806,000 100% Funded — Laurel/Hallinan street to Cornell street ($1,900,000) is the highest dollar project. Unfunded — LO to Portland ($4,630,000), Willamette Steps ($2,132,000) and Twin Fir Road/Upper Drive to Boones Ferry Road ($1,236,000) are the highest dollar projects. 2021 — 2023 Funded $ 4,945,000 5% 2021 — 2023 Unfunded $94,525,000 95% 2021 — 2023 Total $99,470,000 100% Funded — Future School Related Pathways ($2,000,000) and Douglas Way Pathway — Quarry Road to Hallmark Drive ($650,000) are the highest dollar projects. Unfunded — South Shore Blvd Lakeview to McVey ($8,379,000), River to River trail ($7,369,000), Willamette Shore Line ($6,046,000), Knaus Road — Boones Ferry to Country Club ($5,699,000), Childs Road (east) Stafford to 35th ($4,386,000), Mossy Brae Rd Pathway: River Road Park to Stafford Road ($3,303,000), Lake Oswego to Tualatin ($3,259,000) and Stafford Road Rosemont to Childs ($3,024,000) are the highest dollar projects. New Bicycle/Pedestrian 2013 — 2014 Funded $ 140,000 100% 2013 — 2014 Unfunded $ 0 0% 2013 — 2014 Total $ 140,000 100% Miscellaneous projects. 2021 — 2023 Funded $ 0 0% 2021 — 2023 Unfunded $26,921,000 100% 2021 — 2023 Total $26,921,000 100% Bonita Road—Bangy to Carman ($4,515,000), Stafford Road South Shore to Overlook ($3,621,000), 65th Ave — Lakeview to Childs ($2,628,000), Terwilliger— Highway 43 to city limits ($2,196,000), McNary— Jefferson to Kerr ($1,968,000), Botticelli bike lane reconstruction ($1,863,000) are the highest dollar projects. Water 2013 — 2014 Funded $ 2,525,000 5% 2013 — 2014 Unfunded $ 44,000,000 95% 2013 — 2014 Total $ 46,525,000 100% Funded — Annual water rehabilitation program ($1,800,000) Unfunded — Unidentified projects waiting for assessment report ($40,000,000) 2021 — 2023 Funded $26,505,000 53% 2021 — 2023 Unfunded $23,254,000 47% 2021 — 2023 Total $49,759,000 100% Funded — 10 projects over $1,000,000 ($1,075,000 to $3,650,000). Unfunded — Waluga pipe resiliency ($6,816,000), Southside reservoir ($5,198,000) and Palisades pipe resiliency ($3,042,000) are the highest dollar projects Surface/Storm Water 2013 — 2014 Funded $ 4,400,000 27% 2013 — 2014 Unfunded $ 11,899,000 73% 2013 — 2014 Total $ 16,299,000 100% Funded—B Avenue system upgrade ($1,248,000) and Rockinghorse Lane ($851,000) are the highest dollar projects. Unfunded — Lower Boones Ferry Road — Lake Grove UGB ($3,073,000), Underground Injection Control, Permitting and Retrofits ($1,249,000) and Relocate Storm/Sanitary Sewer mains ($1,070,000) are the highest dollar projects. 2021 — 2023 Funded $ 8,305,000 44% 2021 — 2023 Unfunded $14,165,000 56% 2021 — 2023 Total $22,470,000 100% Funded — Annual small projects, catch basins & UIC retrofits ($1,440,000), Lakeview Blvd Street and Drainage improvements ($1,200,000) and Fosberg Road ($1,000,000) are the highest dollar projects. Unfunded — Lower Boones Ferry Road ($4,081,000) and Foothills/A Avenue drainage improvements ($1,179,000) are the highest dollar projects. Waste Water 2013 — 2014 Funded $ 4,422,000 3% 2013 — 2014 Unfunded $132,969,000 97% 2013 — 2014 Total $137,391,000 100% Funded — Marylhurst Pump station ($1,800,000) and small pump station upgrades ($1,300,000) are the highest dollar projects Unfunded — Tryon Creek wastewater station ($65,000,000), I/I Reduction program — priority A projects($21,660,000), I/I Reduction program — priority B projects ($15,374,000) and other pipeline repair for major collectors ($12,466,000) are the highest dollar projects. 2021 — 2023 Funded $37,750,000 44% 2021 — 2023 Unfunded $47,317,000 56% 2021 — 2023 Total $85,067,000 100% Funded — Foothills Road interceptor ($9,400,000), system wide rehabs ($4,500,000), I/I Reduction program — priority A ($4,000,000), LOIS manhole repair and upgrades ($3,675,000). Unfunded - I/I Reduction program — priority B ($25,378,000) and Foothills Road pump station ($9,400,000) are the highest dollar projects. Facilities 2013 — 2014 Funded $ 99,000 0% 2013 — 2014 Unfunded $88,714,000 100% 2013 — 2014 Total $88,813,000 100% Funded — Iron Worker cottage ($74,000) and Operations Security System replacement ($25,000) are the only two projects. Unfunded — Library ($35,000,000), Operations Center ($17,000,000), City Hall ($14,000,000) and new police/LOCOM/municipal court ($12,300,000) are the highest dollar projects. 2021 — 2023 Funded $1,500,000 100% 2021 — 2023 Unfunded $ 0 0% 2021 — 2023 Total $1,500,000 100% Funded — Finishing City Hall is the only project. Miscellaneous Capital 2013 — 2014 Funded $ 1,668,000 10% 2013 — 2014 Unfunded $14,319,000 90% 2013 — 2014 Total $15,987,000 100% Funded — LOCOM computer aided dispatch, mobile data and records management ($1,200,000) is the highest dollar project. Unfunded — Lake Grove Village Center Improvements ($9,064,000), Lake Grove Village center parking improvements ($3,090,000) and Public Safety systems radio upgrade ($2,165,000) are the three projects. 2021 — 2023 Funded $ 0 0% 2021 — 2023 Unfunded $ 0 0% 2021 — 2023 Total $ 0 0% Large Capital Equipment 2013 — 2014 Funded $5,093,000 100% 2013 — 2014 Unfunded $ 0 0% 2013 — 2014 Total $5,093,000 100% Funded — Two fire trucks ($1,733,000) and police vehicle replacement ($958,000) are the highest dollar projects. 2021 — 2023 Funded $1,895,000 0% 2021 — 2023 Unfunded $ 0 0% 2021 — 2023 Total $1,895,000 0% Funded — 6 projects total Total 2013 — 2014 Funded $ 47,319,000 10% 2013 — 2014 Unfunded $418,919,000 90% 2013 — 2014 Total $466,238,000 100% 2021 — 2022 Funded $147,432,000 29% 2021 — 2022 Unfunded $369,701,000 71% 2021 — 2022 Total $517,133,000 100% There are no perfect solutions — there are only trade-offs. Consistently supporting infrastructure sending — and accept the tradeoffs that entails — will ensure a high quality of life. American Rescue Plan Act (ARPA) money to Boones Ferry Phase 2 is less money for pathways or bridges. Boones Ferry Phase 2 can be funded with existing/projected cash flow by increasing the debt capacity of the urban renewal district. Funds used for new pathways instead of maintain existing pathways is an immediate benefit and a higher long-term maintenance cost. Money in the general fund moved to new pathways/bikeway/pedestrian walkways increases the cost of road maintenance in future years. Take Aways 2021 —2023 Capital Improvement Plan provides better quality data compared to 10 years ago. City has funded all large capital equipment projects and keeping unfunded projects at $0. Bridges replacement can be funded without new fees. Water and wastewater have increased their funded percentages and have sufficient resources to address their needs in the decade to come. Surface water has increased their funded percent and combined with American Recovery Plan Act (ARPA) are likely to have sufficient surface water resources to address their needs in the decade to come. Current budget is a shift away from capital expenditures to programming. With exception of Library replacement and the future of the South Shore fire station, facilities have been addressed. Road maintenance has dollars for existing roads. Pathways, bicycle and pedestrian bikeways do not have dollars for maintaining existing pathways, bicycle and pedestrian. Narrow and deep is a more effective use of dollars over the decade(s). "One dig"policy is effective and efficient. Over the next decade or less, getting roads PCI to the mid 80's can free up approximately $2,000,000 per year for surface water or pathways. Over the next 10— 15 years unfunded capital projects can be funded by"3 and 3"and let it be. A 3% increase in property taxes and 3% in overall utility bill is sufficient.