SR 06:197 - Laserfiche WebLink

Honorable Mayor and Members of the City Council: BACKGROUND Beginning in 1990, the City established a series of replacement/renovation funds where reserves are accumulated to fund future replacement costs, in accordance with the City's financial policies. In December 1998, staff began to identify all City assets, including condition, age, and expected replacement/renovation cycles and costs. From this information, a 30-year "Replacement Plan" was developed and integrated into the biannual Maintenance and Operations Budget. Annual revenue requirements were determined for each fund, sufficient enough (with interest income) to fund the projected annual replacement schedules. The replacement accruals minimize Operating Budget fluctuations by amortizing capital costs over multiple fiscal years. It also ensures that the replacement of large dollar items will not compete for budget funding with City services or other capital improvements when the time comes for them to be replaced. As part of the City's Replacement Plan, the Park Renovation Fund provides for major renovations to City parks, and to a small degree, street medians. Typical repairs include irrigation systems, pathways, turf, trees, play areas, signs, and park furniture (barbecues, benches, tables, drinking fountains, etc.). For the past several years, the Parks and Recreation Commission has made project recommendations to the City Council based on available funding. A major update of the Replacement Plan was completed as part of the Operating Budget process in spring 2003, and again in 2005. As a result, the Park Renovation Fund now provides for the long-term replacement/renovation of street median landscaping, City facilities, and trailheads. Due to the amount of work that will be required over the projected 30-year Replacement Plan, variances will occur in the fund balance depending on the number of actual improvements. The replacement schedule in "Financing Our Future" was intended to be a "fluid" document that would be modified as park needs warranted. For FY 2006/07, staff has reassessed all City parks, trail facilities, and median areas. The attached list of recommendations is based strictly on maintenance issues and current needs, realizing that the final decisions will be based on public and Parks and Recreation Commission input, and approval by the City Council. For FY 2006/2007, $154,000 is available for renovation projects. The attached list indicates the proposed projects by location and estimated cost. The number of recommended projects is significantly less than in recent years. A number of previously funded renovation projects have yet to be initiated, and the improved condition of the parks as a result of previously completed work has decreased the need for major improvements this fiscal year. A significant portion of this year's funding is recommended for the replacement of aging plant material located in several street median areas ($28,000), and also in Delucchi Park ($30,000). Replacing the declining plant material in the street median areas is the continuation of a project approved last year, which initially set aside $15,000 to begin the process. In addition, new SR 06:197 Page 2